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CREDIT AGREEMENT
among
STARWOOD HOTELS & RESORTS,
SLT REALTY LIMITED PARTNERSHIP,
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.,
CHESS ACQUISITION CORP.
(and ITT CORPORATION as its successor by merger),
CERTAIN ADDITIONAL BORROWERS,
VARIOUS LENDERS,
BANKERS TRUST COMPANY
and
THE CHASE MANHATTAN BANK,
as ADMINISTRATIVE AGENTS,
and
XXXXXX COMMERCIAL PAPER INC.
and
BANK OF MONTREAL,
as SYNDICATION AGENTS
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Dated as of February 23, 1998
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TABLE OF CONTENTS
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SECTION 1. Amount and Terms of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.01 The Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.02 Minimum Amount of Each Borrowing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.03 Notice of Borrowing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.04 Competitive Bid Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.05 Disbursement of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.06 Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.07 Conversions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.08 Pro Rata Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.09 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.10 Interest Periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
1.11 Increased Costs, Illegality, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
1.12 Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.13 Lending Offices; Changes Thereto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.14 Replacement of Lenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
1.15 Bankers' Acceptance Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
1.16 European Monetary Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
1.17 Special Provisions Regarding RL Lenders and Alternate Currency Revolving Loans . . . . . . . . . . . . 24
SECTION 2. Letters of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.01 Letters of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.02 Maximum Letter of Credit Outstandings; Final Maturities; etc. . . . . . . . . . . . . . . . . . . . . 30
2.03 Letter of Credit Requests; Notices of Issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.04 Letter of Credit Participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
2.05 Agreement to Repay Letter of Credit Drawings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.06 Increased Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
SECTION 3. Commitment Commission; Fees; Reductions of Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . 35
3.01 Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
3.02 Voluntary Termination or Reduction of Total Unutilized Revolving Loan Commitment . . . . . . . . . . . 36
3.03 Mandatory Reduction of Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
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SECTION 4. Prepayments; Payments; Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
4.01 Voluntary Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
4.02 Mandatory Repayments and Commitment Reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
4.03 Method and Place of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4.04 Net Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
SECTION 5. Conditions Precedent to Initial Credit Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
5.01 Execution of Agreement; Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
5.02 Opinions of Counsel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
5.03 Corporate Documents; Proceedings; etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
5.04 Fees, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
5.05 Consummation of Acquisition; Issuance of Intercompany Mortgage Note; etc. . . . . . . . . . . . . . . 48
5.06 Senior Secured Bridge Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
5.07 Indebtedness to be Refinanced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
5.08 Outstanding Indebtedness and Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
5.09 Adverse Change, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
5.10 Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
5.11 Guaranty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
5.12 Pledge and Security Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
5.13 Pro Forma Balance Sheet; Projections; Financial Statements . . . . . . . . . . . . . . . . . . . . . . 52
5.14 Solvency Opinion; Environmental Analyses; Insurance Analyses . . . . . . . . . . . . . . . . . . . . . 52
5.15 Proxy Materials; etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
5.16 ITT Acknowledgment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
5.17 World Directories Disposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
SECTION 6. Conditions Precedent to All Credit Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
6.01 No Default; Representations and Warranties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
6.02 Requirements of Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
6.03 No Material Adverse Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
6.04 Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
6.05 Notice of Borrowing; Competitive Bid Loans; Letter of Credit Request . . . . . . . . . . . . . . . . . 54
6.06 Election to Become a Alternate Currency Revolving Loan Borrower . . . . . . . . . . . . . . . . . . . 54
SECTION 7. Representations, Warranties and Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
7.01 Existence; Compliance with Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
7.02 Power; Authorization; Enforceable Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
7.03 Financial Statements; Financial Condition; Undisclosed Liabilities; Projections; etc. . . . . . . . . 56
7.04 Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
7.05 True and Complete Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
7.06 Use of Proceeds; Margin Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
7.07 Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
7.08 Compliance with ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
7.09 The Pledge and Security Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
7.10 Representations and Warranties in Other Documents . . . . . . . . . . . . . . . . . . . . . . . . . . 61
7.11 Contractual Obligations Concerning Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
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7.12 Title/Status of Real Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
7.13 Mortgage Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
7.14 Subsidiaries and Unconsolidated Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
7.15 Preferred Stock Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
7.16 Guarantors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
7.17 Equity Pledges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
7.18 No Burdensome Restrictions; No Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
7.19 Compliance with Statutes, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
7.20 Investment Company Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
7.21 Public Utility Holding Company Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
7.22 Environmental Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
7.23 Labor Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
7.24 Patents, Licenses, Franchises and Formulas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
7.25 Existing Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
7.26 Transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
7.27 Intercompany Mortgage Note; Assigned Starwood Note . . . . . . . . . . . . . . . . . . . . . . . . . . 70
7.28 Status as a REIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
7.29 Assets of Starwood REIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
7.30 SLC OLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
7.31 Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
7.32 Westin Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
7.33 ITT Indenture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
7.34 WD Disposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
SECTION 8. Affirmative Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
8.01 Information Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
8.02 Books, Records and Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
8.03 Maintenance of Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
8.04 Corporate Franchises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
8.05 Compliance with Statutes, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
8.06 Compliance with Environmental Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
8.07 ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
8.08 End of Fiscal Years; Fiscal Quarters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
8.09 Performance of Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
8.10 Maintenance of Properties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
8.11 REIT Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
8.12 Payment of Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
8.13 Additional Security; Further Assurances; etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
8.14 Foreign Subsidiaries Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
8.15 Additional Guarantors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
8.16. Margin Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
8.17. Ownership of Certain Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
8.18 Unsecured Debt Rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
8.19. REIT and Corporation Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
8.20. Interest Rate Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
8.21 World Directory Disposition Entities; Assigned Starwood Note; Etc. . . . . . . . . . . . . . . . . . . 84
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SECTION 9. Negative Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
9.01 Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
9.02 Consolidation, Merger, Purchase or Sale of Assets, Lease Obligations, etc. . . . . . . . . . . . . . . 87
9.03 Restricted Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
9.04 Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
9.05 Advances, Investments and Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
9.06 Transactions with Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
9.07 Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
9.08 Combined Interest Coverage Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
9.09 Maximum Combined Leverage Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
9.10 Combined Adjusted Interest Coverage Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
9.11. Combined Shareholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
9.12 Limitation on Voluntary Payments and Modifications of Indebtedness; Modifications of Certificate of
Incorporation, By-Laws and Certain Other Agreements; etc. . . . . . . . . . . . . . . . . . . . . . 101
9.13 Limitation on Certain Restrictions on Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . 102
9.14 Limitation on Issuance of Capital Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
9.15 Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
9.16 Limitation on Creation of Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
9.17 ITT Indenture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
9.18. Preferred Stock Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
9.19. Accounting Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
9.20. Partnership Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
9.21. ERISA Plan Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
SECTION 10. Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
10.01 Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
10.02 Representations, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
10.03 Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
10.04 Default Under Other Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
10.05 Bankruptcy, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
10.06 ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
10.07 Security Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
10.08 Guaranties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
10.09 Judgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
10.10 Change of Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
10.11 REIT Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
SECTION 11. Definitions and Accounting Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
11.01 Defined Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
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SECTION 12. The Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
12.01 Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
12.02 Nature of Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
12.03 Lack of Reliance on the Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
12.04 Certain Rights of the Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
12.05 Reliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
12.06 Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
12.07 Each Agent in its Individual Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
12.08 Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
12.09 Removal of or Resignation by the Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
SECTION 13. Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
13.01 Payment of Expenses, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
13.02 Right of Setoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
13.03 Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
13.04 Benefit of Agreement; Assignments; Participations . . . . . . . . . . . . . . . . . . . . . . . . . . 160
13.05 No Waiver; Remedies Cumulative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
13.06 Payments Pro Rata . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
13.07 Calculations; Computations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
13.08 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL . . . . . . . . . . . . . . . 164
13.09 Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
13.10 Effectiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
13.11 Headings Descriptive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
13.12 Amendment or Waiver; etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
13.13 Survival . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
13.14 Domicile of Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
13.15 Register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
13.16 Judgment Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
13.17 Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
13.18 Recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
13.19 Post-Closing Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
(v)
7
CREDIT AGREEMENT, dated as of February 23, 1998, among
STARWOOD HOTELS & RESORTS, a Maryland real estate investment trust ("Starwood
REIT"), SLT REALTY LIMITED PARTNERSHIP, a Delaware limited partnership ("SLT
RLP"), STARWOOD HOTELS & RESORTS WORLDWIDE, INC., a Maryland corporation (the
"Corporation"), CHESS ACQUISITION CORP., a Nevada corporation (and ITT
CORPORATION, a Nevada corporation, as its successor by merger), each ALTERNATE
CURRENCY REVOLVING LOAN BORROWER from time to time party hereto, the LENDERS
party hereto from time to time, BANKERS TRUST COMPANY and THE CHASE MANHATTAN
BANK, as Administrative Agents, (in such capacity, collectively, the
"Administrative Agents" and each an "Administrative Agent"), and XXXXXX
COMMERCIAL PAPER INC. and BANK OF MONTREAL, as Syndication Agents (in such
capacity, collectively, the "Syndication Agents" and each a "Syndication
Agent") (all capitalized terms used herein and defined in Section 11 are used
herein as therein defined).
W I T N E S S E T H :
WHEREAS, subject to and upon the terms and conditions set
forth herein, the Lenders are willing to make available to the Borrowers the
respective credit facilities provided for herein;
NOW, THEREFORE, IT IS AGREED:
SECTION 1. Amount and Terms of Credit.
1.01 The Commitments. (a) Subject to and upon the terms and
conditions set forth herein, each Lender with a Tranche I Term Loan Commitment
severally agrees to make, on the Initial Borrowing Date, a term loan or term
loans (each a "Tranche I Term Loan" and, collectively, the "Tranche I Term
Loans") to the Corporate Borrowers, which Tranche I Term Loans (i) shall be
made and maintained in Dollars, (ii) shall be incurred and initially maintained
as a single Borrowing of Base Rate Loans (subject to the option to convert such
Tranche I Term Loans pursuant to Section 1.07), (iii) shall be made by each
Lender with a Tranche I Term Loan Commitment in that initial aggregate
principal amount as is equal to the Tranche I Term Loan Commitment of such
Lender on the Initial Borrowing Date (before giving effect to any reductions
thereto on such date pursuant to Section 3.03(b)(i) but after giving effect to
any reductions thereto on such date pursuant to Section 3.03(b)(ii)) and (iv)
shall be the joint and several obligations of each of the Corporate Borrowers.
Once repaid, Tranche I Term Loans incurred hereunder may not be reborrowed.
(b) Subject to and upon the terms and conditions set
forth herein, each Lender with a Tranche II Term Loan Commitment severally
agrees to make, on the Initial Borrowing Date, a term loan or term loans (each
a "Tranche II Term Loan" and, collectively, the "Tranche II Term Loans") to the
Corporate Borrowers, which Tranche II Term Loans (i) shall be made and
maintained in Dollars, (ii) shall be incurred and initially maintained as a
single Borrowing of Base Rate Loans (subject to the option to convert such
Tranche II Term Loans pursuant to Section 1.07), (iii) shall be made by each
Lender with a Tranche II Term Loan Commitment in that initial
8
aggregate principal amount as is equal to the Tranche II Term Loan Commitment
of such Lender on the Initial Borrowing Date (before giving effect to any
reductions thereto on such date pursuant to Section 3.03(c)(i) but after giving
effect to any reductions thereto on or prior to such date pursuant to Section
3.03(c)(ii)) and (iv) shall be the joint and several obligations of each of the
Corporate Borrowers. Once repaid, Tranche II Term Loans incurred hereunder may
not be reborrowed.
(c) Subject to and upon the terms and conditions set
forth herein, (x) each RL Lender severally agrees, at any time and from time to
time during the Revolving Credit Period, to make a revolving loan or revolving
loans, which revolving loans shall be made and maintained in Dollars (each a
"Dollar Revolving Loan" and, collectively, the "Dollar Revolving Loans") to one
or more of the Dollar Revolving Loan Borrowers (in each case, as specified in
clauses (i) and (ii) of the definition thereof) and (y) each Alternate Currency
Lender with an Alternate Currency Revolving Loan Sub-Commitment relating to the
respective Alternate Currency severally agrees, at any time and from time to
time during the Revolving Credit Period, to make a revolving loan or revolving
loans, which revolving loans shall be made and maintained in the respective
Alternate Currency elected by the respective Alternate Currency Revolving Loan
Borrower (each an "Alternate Currency Revolving Loan" and, collectively, the
"Alternate Currency Revolving Loans") to one or more Alternate Currency
Revolving Loan Borrowers (with the revolving loans made to the various
Revolving Loan Borrowers pursuant to this Section 1.01(c) being herein called a
"Revolving Loan" and, collectively, the "Revolving Loans"), which Revolving
Loans:
(i) shall, in the case of Dollar Revolving Loans, at the
option of the respective Dollar Revolving Loan Borrower, be incurred
and maintained as, and/or converted into, Base Rate Loans or
Eurodollar Loans, provided that (A) except as otherwise specifically
provided herein, all Dollar Revolving Loans comprising the same
Borrowing shall be of the same Type and (B) prior to the 90th day
after the Initial Borrowing Date, Eurodollar Loans may only be
incurred as provided in Section 1.07(c),
(ii) shall, in the case of Alternate Currency Revolving Loans,
be made and maintained in the respective Alternate Currency elected by
the respective Alternate Currency Revolving Loan Borrower or
Borrowers, provided that, (A) no Alternate Currency Revolving Loans
may be incurred prior to the earlier of (1) the 90th day after the
Initial Borrowing Date and (2) the Syndication Date and (B) all
Canadian Dollar Revolving Loans shall, at the option of the respective
Alternate Currency Revolving Loan Borrower, be made by each Alternate
Currency Lender with a Canadian Dollar Revolving Loan Sub-Commitment
either by means of (x) Canadian Prime Rate Loans in Canadian Dollars
or (y) the creation and discount of Bankers' Acceptances in Canadian
Dollars on the terms and conditions provided for herein and in
Schedule III hereto (the terms and conditions of which shall be deemed
incorporated by reference into this Agreement),
(iii) may be repaid and reborrowed in accordance with the
provisions hereof,
(iv) shall not be made (or be required to be made) by any
Lender on any date if, after giving effect thereto, the Revolving
Credit Exposure of such RL Lender would exceed the Revolving Loan
Commitment of such Lender at such time,
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9
(v) shall not, in the case of Alternate Currency Revolving
Loans made in a single Alternate Currency, exceed for any Alternate
Currency Lender at the time of making any such Alternate Currency
Revolving Loans, and after giving effect thereto, that aggregate
principal amount or Face Amount, as the case may be, of such Alternate
Currency Revolving Loans (for this purpose, using the Dollar
Equivalent of the principal or Face Amount, as the case may be,
thereof) which, when added to the Dollar Equivalent of the aggregate
principal amount (or Face Amount, as the case may be) of all other
Alternate Currency Revolving Loans made in the same Alternate Currency
and then outstanding from such Alternate Currency Lender, equals the
related Alternate Currency Revolving Loan Sub-Commitment of such
Alternate Currency Lender at such time, and
(vi) shall not , in the case of all Revolving Loans, be made at
any time if, after giving effect thereto, the Aggregate Revolving
Credit Exposure would exceed the Total Revolving Loan Commitment at
such time.
All Dollar Revolving Loans shall constitute the joint and several obligations
of the respective Dollar Revolving Loan Borrower (i.e., the Dollar Revolving
Loan Borrower specified in clause (i) or (ii), as the case may be, of the
definition of Dollar Revolving Loan Borrower) and all Alternate Currency
Revolving Loans shall constitute the obligations of the respective Alternate
Currency Revolving Loan Borrower; provided that Alternate Currency Revolving
Loans incurred by the Corporate Borrowers shall constitute the joint and
several obligations of the Corporate Borrowers.
(d) Subject to and upon the terms and conditions set
forth herein, the Swingline Lender agrees to make, from time to time on and
after the Initial Borrowing Date and prior to the Swingline Expiry Date, a
revolving loan or revolving loans (each a "Swingline Loan" and, collectively,
the "Swingline Loans") to one or more of the Dollar Revolving Loan Borrowers,
which Swingline Loans (i) shall be made and maintained in Dollars, (ii) shall
be made and maintained as Base Rate Loans, (iii) may be repaid and reborrowed
in accordance with the provisions hereof, (iv) shall not be made (or be
required to be made) on any date if, after giving effect thereto, the Aggregate
Revolving Credit Exposure would exceed the Total Revolving Loan Commitment as
then in effect, (v) shall not exceed in aggregate principal amount at any time
outstanding, the Maximum Swingline Amount and (vi) shall constitute the joint
and several obligations of the respective Dollar Revolving Loan Borrower. The
Swingline Lender shall not be obligated to make any Swingline Loans at a time
when a Lender Default exists unless the Swingline Lender has entered into
arrangements satisfactory to it to eliminate the Swingline Lender's risk with
respect to the Defaulting Lender's or Lenders' participation in such Swingline
Loans, including by cash collateralizing such Defaulting Lender's or Lenders'
Dollar Percentage of the outstanding Swingline Loans. Notwithstanding anything
to the contrary contained in this Section 1.01(d), the Swingline Lender shall
not make any Swingline Loan after it has received written notice from any
Borrower, any Paying Agent or the Required Lenders stating that a Default or an
Event of Default exists and is continuing until such time as the Swingline
Lender shall have received written notice (i) of rescission of all such notices
from the party or parties originally delivering such notice, (ii) of the waiver
of such Default or Event of Default by the Required Lenders or (iii) that the
Paying Agent in good faith believes, such Default or Event of Default has
ceased to exist.
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10
(e) On any Business Day, the Swingline Lender may, in its
sole discretion, give notice to the Lenders that its outstanding Swingline
Loans to any, or each, Dollar Revolving Loan Borrower shall be funded with a
Borrowing of Dollar Revolving Loans (provided that such notice shall be deemed
to have been automatically given with respect to each Dollar Revolving Loan
Borrower upon the occurrence of a Default or an Event of Default under Section
10.05 or upon the exercise of any of the remedies provided in the last
paragraph of Section 10). In such case, a Borrowing (or Borrowings) of Dollar
Revolving Loans by the respective Dollar Revolving Loan Borrower (or Borrowers)
constituting Base Rate Loans (each such Borrowing, a "Mandatory Borrowing")
shall be made on the immediately succeeding Business Day by all RL Lenders
(without giving effect to any reductions thereto pursuant to the last paragraph
of Section 10) pro rata based on each Lender's Dollar Percentage or, if a
Sharing Event then exists, pro rata based on each RL Lender's RL Percentage (in
each case determined on such date, but before giving effect to any termination
of the Revolving Loan Commitments pursuant to the last paragraph of Section 10)
and the proceeds thereof shall be applied directly to the Swingline Lender to
repay the Swingline Lender for such outstanding Swingline Loans. All Dollar
Revolving Loans made pursuant to each Mandatory Borrowing shall constitute the
joint and several obligations of the respective Dollar Revolving Loan Borrower.
Each RL Lender hereby irrevocably agrees to make Dollar Revolving Loans upon
one Business Day's notice pursuant to each Mandatory Borrowing in the amount
and in the manner specified in the preceding sentence and on the date specified
in writing by the Swingline Lender notwithstanding (i) that the amount of any
Mandatory Borrowing may not comply with the Minimum Borrowing Amount otherwise
required hereunder, (ii) whether any conditions specified in Section 6 are then
satisfied, (iii) whether a Default or an Event of Default then exists, (iv) the
date of such Mandatory Borrowing and (v) the amount of the Total Revolving Loan
Commitment at such time. In the event that any Mandatory Borrowing cannot for
any reason be made on the date otherwise required above (including, without
limitation, as a result of the commencement of a proceeding under the
Bankruptcy Code with respect to any of the Borrowers), then each such RL Lender
hereby agrees that it shall forthwith purchase (as of the date the Mandatory
Borrowing would otherwise have occurred, but adjusted for any payments received
from the respective Borrowers on or after such date and prior to such purchase)
from the Swingline Lender such participations in the outstanding Swingline
Loans as shall be necessary to cause such RL Lenders to share in such Swingline
Loans ratably based upon their respective Dollar Percentages or, if a Sharing
Event exists on the date otherwise required above, pro rata based upon their
respective RL Percentages (in each case determined before giving effect to any
termination of the Revolving Loan Commitments pursuant to the last paragraph of
Section 10), provided that (x) all interest payable on the Swingline Loans
shall be for the account of the Swingline Lender until the date as of which the
respective participation is required to be purchased and, to the extent
attributable to the purchased participation, shall be payable to the
participant from and after such date and (y) at the time any purchase of
participations pursuant to this sentence is actually made, the purchasing RL
Lender shall be required to pay the Swingline Lender interest on the principal
amount of the participation purchased for each day from and including the day
upon which the respective participation would otherwise have occurred to but
excluding the date of payment for such participation, at the overnight Federal
Funds Rate for the first day and at the rate otherwise applicable to Revolving
Loans maintained as Base Rate Loans hereunder for each day thereafter.
- 4 -
11
(f) Subject to and upon the terms and conditions set
forth herein, each Lender severally agrees that one or more of the Dollar
Revolving Loan Borrowers may, in accordance with the procedures established
pursuant to Section 1.04, incur a loan or loans (each a "Competitive Bid Loan"
and, collectively, the "Competitive Bid Loans"), denominated in Dollars,
pursuant to a Competitive Bid Borrowing at any time and from time to time on
and after the Initial Borrowing Date and prior to the date which is the
Business Day preceding the date which is 30 days prior to the Revolving Loan
Maturity Date, provided that (i) each Competitive Bid Loan shall be incurred
by, and made to, a Dollar Revolving Loan Borrower and (ii) no Competitive Bid
Loan may be made if, after giving effect thereto, the Aggregate Revolving
Credit Exposure would exceed the Total Revolving Loan Commitment as then in
effect. Within the foregoing limits and subject to the terms and conditions
set forth in Sections 1.04 and 6, Competitive Bid Loans may be repaid and
reborrowed in accordance with the provisions hereof.
1.02 Minimum Amount of Each Borrowing. The aggregate
principal amount of each Borrowing of Loans shall not be less than the
respective Minimum Borrowing Amount for the respective Type and Tranche of
Loans to be made or maintained pursuant to the respective Borrowing; provided
that Mandatory Borrowings shall be made in the amounts required by Section
1.01(e). More than one Borrowing may occur on the same date, but at no time
shall there be outstanding more than (x) 6 Borrowings of Euro Rate Loans under
any Tranche of Term Loans or (y) 10 Borrowings of Revolving Loans maintained as
Euro Rate Loans.
1.03 Notice of Borrowing. (a) Whenever a Borrower desires
to incur Loans hereunder (excluding (w) Borrowings of Swingline Loans, (x)
Borrowings of Revolving Loans incurred pursuant to a Mandatory Borrowing, (y)
Borrowings of Competitive Bid Loans and (z) Borrowings of Canadian Prime Rate
Loans to the extent resulting from automatic conversions of Bankers' Acceptance
Loans as provided in clause (i) of Schedule III), it shall give the Paying
Agent at the Notice Office at least one Business Day's prior written notice
(or telephonic notice promptly confirmed in writing) of each Base Rate Loan or
Canadian Prime Rate Loan and at least three Business Days' prior written notice
(or telephonic notice promptly confirmed in writing) of each Euro Rate Loan or
Bankers' Acceptance Loan to be incurred hereunder, provided that any such
notice shall be deemed to have been given on a certain day only if given before
12:00 Noon (New York time) on such day. Each such written notice or written
confirmation of telephonic notice (each a "Notice of Borrowing"), except as
otherwise expressly provided in Section 1.11, shall be irrevocable and shall be
given by the respective Borrower in the form of Exhibit A, appropriately
completed to specify (i) the name of such Borrower or Borrowers, (ii) the
purpose of such Borrowing, (iii) the aggregate principal amount (or Face
Amount, as the case may be) of the Loans to be incurred pursuant to such
Borrowing (stated in the Applicable Currency), (iv) the date of such Borrowing
(which shall be a Business Day), (v) whether the Loans being incurred pursuant
to such Borrowing shall constitute Tranche I Term Loans, Tranche II Term Loans
or Revolving Loans, (vi) in the case of Dollar Loans, whether the Loans being
incurred pursuant to such Borrowing are to be initially maintained as Base Rate
Loans or Eurodollar Loans, (vii) in the case of Canadian Dollar Revolving
Loans, whether the Loans being made pursuant to such Borrowing are to be
initially maintained as Canadian Prime Rate Loans or Bankers' Acceptance Loans
and, if Bankers' Acceptance Loans, the term thereof (which shall comply with
the requirements of clause (a) of Schedule III) and (viii) in the case of Euro
Rate Loans, the initial Interest
- 5 -
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Period to be applicable thereto. The Paying Agent shall promptly give each
Lender which is required to make Loans of the Tranche specified in the
respective Notice of Borrowing, notice of such proposed Borrowing, of such
Lender's proportionate share thereof and of the other matters required by the
immediately preceding sentence to be specified in the Notice of Borrowing.
(b) (i) Whenever a Dollar Revolving Loan Borrower desires to
incur Swingline Loans hereunder, it shall give the Swingline Lender not later
than 12:00 Noon (New York time) on the date (or, in the case of any Swingline
Loan to be incurred on the last Business Day of a calendar quarter, at least
one Business Day prior to the date) that a Swingline Loan is to be incurred,
written notice or telephonic notice promptly confirmed in writing of each
Swingline Loan to be incurred hereunder. Each such notice shall be irrevocable
and specify in each case (A) the respective Dollar Revolving Loan Borrower
which will incur the Swingline Loan, (B) the date of Borrowing (which shall be
a Business Day) and (C) the aggregate principal amount of the Swingline Loans
to be made pursuant to such Borrowing.
(ii) Mandatory Borrowings shall be made upon the notice
specified in Section 1.01(e), with each Dollar Revolving Loan Borrower
irrevocably agreeing, by its incurrence of any Swingline Loan, to the making of
the Mandatory Borrowings by it as set forth in Section 1.01(e).
(c) Without in any way limiting the obligation of any
Borrower to confirm in writing any telephonic notice permitted to be given
hereunder, the Paying Agent, the Swingline Lender (in the case of a Borrowing
of Swingline Loans) or the Issuing Bank (in the case of issuances of Letters of
Credit), as the case may be, may act without liability upon the basis of such
telephonic notice, believed by the Paying Agent, the Swingline Lender or the
Issuing Bank, as the case may be, in good faith to be from an Authorized
Officer of such Borrower (or of the Corporation) prior to receipt of written
confirmation. In each such case, each Borrower hereby waives the right to
dispute the Paying Agent's, the Swingline Lender's or Issuing Bank's record of
the terms of such telephonic notice.
1.04 Competitive Bid Borrowings.04 Competitive Bid
Borrowings. (a) Whenever any Revolving Loan Borrower desires to incur a
Competitive Bid Borrowing, it (or they) shall deliver to the Paying Agent at
the Notice Office prior to 11:00 A.M (New York time), at least three Business
Days prior to the date of such proposed Competitive Bid Borrowing, a written
notice substantially in the form of Exhibit B (each a "Notice of Competitive
Bid Borrowing"), such notice to specify in each case (i) the name of such
Borrower or Borrowers, (ii) the date (which shall be a Business Day) of the
proposed Competitive Bid Borrowing, (iii) the aggregate principal amount of the
proposed Competitive Bid Borrowing (which shall not be less than $20,000,000,
(iv) the maturity date (each a "Competitive Bid Loan Maturity Date") for
repayment of each Competitive Bid Loan to be made as part of such Competitive
Bid Borrowing (which maturity date may not be earlier than seven days after the
date of such Competitive Bid Borrowing or later than 360 days after the date of
such Competitive Bid Borrowing (but in no event later than the thirtieth day
preceding the Revolving Loan Maturity Date)), (v) the interest payment date or
dates relating thereto (which shall be at least every three months in the case
of maturities in excess of three months), and (vi) any other terms to be
applicable to such Competitive Bid Borrowing (although all Competitive Bid
Borrowings shall be required to be made, and maintained, in Dollars). The
Paying Agent shall promptly notify each Bidder RL Lender of each such request
for a Competitive Bid Borrowing
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received by it from the respective Borrower by telecopying to each such Bidder
RL Lender a copy of the related Notice of Competitive Bid Borrowing.
(b) Each Bidder RL Lender shall, if in its sole
discretion it elects to do so, irrevocably offer to make one or more
Competitive Bid Loans to the respective Revolving Loan Borrower as part of such
proposed Competitive Bid Borrowing at a rate or rates of interest specified by
such Bidder RL Lender in its sole discretion and determined by such Bidder RL
Lender independently of each other Bidder RL Lender, by notifying the Paying
Agent in writing (which notice shall be promptly distributed to such Borrower,
provided that the Paying Agent shall not be liable to any Bidder RL Lender or
to any Borrower for failure to distribute any such notice to any Borrower
unless such failure resulted from the gross negligence or willful misconduct on
the part of the Paying Agent (as determined by a court of competent
jurisdiction)), before 10:00 A.M. (New York time) on the date (the "Reply
Date") which is two Business Days before the date of such proposed Competitive
Bid Borrowing, of the minimum amount, if any, and maximum amount of each
Competitive Bid Loan which such Bidder RL Lender would be willing to make as
part of such proposed Competitive Bid Borrowing (which amounts may, subject to
the proviso to the first sentence of Section 1.01(f), exceed such RL Lender's
Revolving Loan Commitment) and the rate or rates of interest therefor;
provided, that if the Paying Agent in its capacity as a Bidder RL Lender shall,
in its sole discretion, elect to make any such offer, it shall notify the
respective Revolving Loan Borrower in writing of such offer before 9:30 A.M.
(New York time) on the Reply Date. If any Bidder RL Lender shall elect not to
make such an offer, such Bidder RL Lender shall so notify the Paying Agent,
before 10:00 A.M. (New York time) on the Reply Date, and such Bidder RL Lender
shall not be obligated to, and shall not, make any Competitive Bid Loan as part
of such Competitive Bid Borrowing; provided, that the failure by any Bidder RL
Lender to give such notice shall not cause such Bidder RL Lender to be
obligated to, and such Bidder RL Lender shall not, make any Competitive Bid
Loan as part of such proposed Competitive Bid Borrowing.
(c) The respective Revolving Loan Borrower shall, in
turn, before 12:00 Noon (New York time) on the Reply Date, either
(1) cancel such Competitive Bid Borrowing by giving the
Paying Agent notice (in writing or by telephone promptly confirmed in
writing) to that effect, or
(2) accept one or more of the offers made by any Bidder
RL Lender or Bidder RL Lenders pursuant to clause (b) above by giving
notice (in writing or by telephone confirmed in writing) to the Paying
Agent of the amount of each Competitive Bid Loan (which amount shall
be equal to or greater than the minimum amount, if any, and equal to
or less than the maximum amount, notified to such Borrower by the
Paying Agent on behalf of each such Bidder RL Lender for such
Competitive Bid Borrowing) and reject any remaining offers made by
Bidder RL Lenders pursuant to clause (b) above by giving the Paying
Agent notice to that effect; provided that acceptance of offers may
only be made on the basis of ascending Absolute Rates commencing with
the lowest rate so offered; provided further, however, if offers are
made by two or more Bidder RL Lenders at the same rate and acceptance
of all such equal offers would result in a greater principal amount of
Competitive Bid Loans being accepted than the aggregate principal
amount
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requested by the respective Borrower, such Borrower shall have the
right to accept one or more such equal offers in their entirety and
reject the other equal offer or offers or to allocate acceptance among
all such equal offers (but giving effect to the minimum amounts, if
any, and maximum amounts specified for each such offer pursuant to
clause (b) above), as such Borrower may elect in its sole discretion.
(d) If the respective Revolving Loan Borrower notifies
the Paying Agent that such Competitive Bid Borrowing is canceled pursuant to
clause (c)(1) above, the Paying Agent shall give prompt written notice thereof
to the Bidder RL Lenders and such Competitive Bid Borrowing shall not be made.
(e) If the respective Revolving Loan Borrower accepts one
or more of the offers made by any Bidder RL Lender or Bidder RL Lenders
pursuant to clause (c)(2) above, the Paying Agent shall in turn promptly notify
(in writing or by telephone confirmed in writing) (x) each Bidder RL Lender
that has made an offer as described in clause (b) above, of the date and
aggregate amount of such Competitive Bid Borrowing and whether or not any offer
or offers made by such Bidder RL Lender pursuant to clause (b) above have been
accepted by such Borrower and (y) each Bidder RL Lender that is to make a
Competitive Bid Loan as part of such Competitive Bid Borrowing, of the amount
of each Competitive Bid Loan to be made by such Bidder RL Lender as part of
such Competitive Bid Borrowing.
(f) On the last Business Day of each calendar quarter,
the Paying Agent shall notify the Revolving Loan Borrowers and the RL Lenders
of the aggregate principal amount of Competitive Bid Loans outstanding to the
various Revolving Loan Borrowers at such time.
1.05 Disbursement of Funds. No later than 12:00 Noon (local
time in the city in which the proceeds of such Loans are to be made available
in accordance with the terms hereof) on the date specified in each Notice of
Borrowing (or (x) in the case of Swingline Loans, no later than 2:00 P.M. (New
York time) on the date specified in Section 1.03(b)(i), (y) in the case of
Mandatory Borrowings, not later than 12:00 Noon (New York time) on the date
specified in Section 1.01(e) or (z) in the case of Competitive Bid Loans, no
later than 10:00 A.M. (New York time) on the date specified pursuant to Section
1.04(a)), each Lender with a Commitment of the respective Tranche will make
available its pro rata portion (determined in accordance with Section 1.08) of
each such Borrowing requested to be made on such date (or (x) in the case of
Swingline Loans, the Swingline Lender shall make available the full amount
thereof and (y) in the case of Competitive Bid Loans, the respective Bidder RL
Lenders which are to make such loans in accordance with Section 1.04(e) shall
make available their respective amounts thereof) in the manner provided below.
All such amounts will be made available in Dollars (in the case of Dollar
Loans) or the applicable Alternate Currency (in the case of Alternate Currency
Revolving Loans), as the case may be, and in immediately available funds at the
appropriate Payment Office of the Paying Agent, and the Paying Agent will make
available to the relevant Borrower or Borrowers by depositing to its, or their,
relevant account as directed by the respective Borrower or Borrowers, the
aggregate of the amounts so made available by the Lenders in the type of funds
received. Unless the Paying Agent shall have been notified by any Lender prior
to the date of Borrowing that such Lender does not intend to make available to
the Paying Agent such Lender's portion of any Borrowing to be made on such
date, the Paying Agent may assume that such Lender has
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15
made such amount available to the Paying Agent on such date of Borrowing and
the Paying Agent may, in reliance upon such assumption, make available to the
relevant Borrower a corresponding amount. If such corresponding amount is not
in fact made available to the Paying Agent by such Lender, the Paying Agent
shall be entitled to recover such corresponding amount on demand from such
Lender. If such Lender does not pay such corresponding amount forthwith upon
the Paying Agent's demand therefor, the Paying Agent shall promptly notify the
respective Borrower or Borrowers, and, to the extent such corresponding amount
has previously been disbursed to such Borrower or Borrowers, such Borrower or
Borrowers shall immediately pay such corresponding amount to the Paying Agent.
The Paying Agent shall also be entitled to recover on demand from such Lender
or such Borrower or Borrowers, interest on such corresponding amount in
respect of each day from the date such corresponding amount was made available
by the Paying Agent to the respective Borrower or Borrowers until the date such
corresponding amount is recovered by the Paying Agent, at a rate per annum
equal to (i) if recovered from such Lender, the overnight Federal Funds Rate as
in effect from time to time for the first three days and the interest rate
applicable to Dollar Revolving Loans maintained as Base Rate Loans for each day
thereafter and (ii) if recovered from the respective Borrower or Borrowers, the
rate of interest applicable to the respective Borrowing, as determined pursuant
to Section 1.09. Nothing in this Section 1.05 shall be deemed to relieve any
Lender from its obligation to make Loans hereunder or to prejudice any rights
which the relevant Borrower or Borrowers may have against any Lender as a
result of any failure by such Lender to make Loans required to be made by it
hereunder.
1.06 Notes. (a) Subject to the provisions of the following
clause (j), each Borrower's obligation to pay the principal of (or the Face
Amount of, as the case may be), and interest on, the Loans (other than
Competitive Bid Loans) made by each Lender to such Borrower shall be evidenced
(i) if Tranche I Term Loans, by a promissory note duly executed and delivered
by the Corporate Borrowers substantially in the form of Exhibit C-1, with
blanks appropriately completed in conformity herewith (each a "Tranche I Term
Note" and, collectively, the "Tranche I Term Notes"), (ii) if Tranche II Term
Loans, by a promissory note duly executed and delivered by the Corporate
Borrowers substantially in the form of Exhibit C-2, with blanks appropriately
completed in conformity herewith (each a "Tranche II Term Note" and
collectively, the "Tranche II Term Notes"), (iii) if Dollar Revolving Loans, by
a promissory note duly executed and delivered by the respective Dollar
Revolving Loan Borrower substantially in the form of Exhibit C-3, with blanks
appropriately completed in conformity herewith (each a "Dollar Revolving Note"
and, collectively, the "Dollar Revolving Notes"), (iv) if Canadian Dollar
Revolving Loans, by a promissory note duly executed and delivered by the
respective Alternate Currency Revolving Loan Borrower substantially in the form
of Exhibit C-4, with blanks appropriately completed in conformity herewith
(each a "Canadian Dollar Revolving Note" and, collectively, the "Canadian
Dollar Revolving Notes"), (v) if Sterling Revolving Loans, by a promissory note
duly executed and delivered by the respective Alternate Currency Revolving Loan
Borrower substantially in the form of Exhibit C-5, with blanks appropriately
completed in conformity herewith (each a "Sterling Revolving Note" and,
collectively, the "Sterling Revolving Notes"), (vi) if French Franc Revolving
Loans, by a promissory note duly executed and delivered by the respective
Alternate Currency Revolving Loan Borrower substantially in the form of Exhibit
C-6, with blanks appropriately completed in conformity herewith (each a "French
Franc Revolving Note" and, collectively, the "French Franc Revolving Notes")
and (vii) if Swingline Loans, by a promissory
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16
note duly executed and delivered by the respective Dollar Revolving Loan
Borrowers substantially in the form of Exhibit C-7, with blanks appropriately
completed in conformity herewith (the "Swingline Note"). The terms of each
Competitive Bid Loan shall be evidenced by the respective correspondence
between the respective Revolving Loan Borrower and the respective Bidder RL
Lender pursuant to Section 1.04 and, unless otherwise agreed by the respective
Revolving Loan Borrower and Bidder RL Lender or unless the respective Bidder RL
Lender makes a request pursuant to the immediately succeeding sentence,
Competitive Bid Loans shall not be evidenced by promissory notes. If requested
by any Lender, the respective Revolving Loan Borrower agrees to execute and
deliver a promissory note, in form reasonably satisfactory to the respective
Lender, evidencing the Competitive Bid Loans of such Lender to such Revolving
Loan Borrower (with any such promissory notes herein called "Competitive Bid
Notes").
(b) The Tranche I Term Note issued by the Corporate
Borrowers to each Lender that has a Tranche I Term Loan Commitment or
outstanding Tranche I Term Loans shall (i) be executed by the Corporate
Borrowers, (ii) be payable to the order of such Lender and be dated the Initial
Borrowing Date (or if issued thereafter, the date of issuance), (iii) be in a
stated principal amount equal to the Tranche I Term Loans made by such Lender
on the Initial Borrowing Date (or, if issued after the Initial Borrowing Date,
be in a stated principal amount equal to the outstanding principal amount of
Tranche I Term Loans at such time) and be payable in Dollars in the outstanding
principal amount of Tranche I Term Loans evidenced thereby, (iv) mature on the
Tranche I Maturity Date, (v) bear interest as provided in the appropriate
clause of Section 1.09 in respect of the Base Rate Loans and Eurodollar Loans,
as the case may be, evidenced thereby, (vi) be subject to voluntary prepayment
as provided in Section 4.01, and mandatory repayment as provided in Section
4.02 and (vii) be entitled to the benefits of this Agreement and the other
Credit Documents.
(c) The Tranche II Term Note issued by the Corporate
Borrowers to each Lender that has a Tranche II Term Loan Commitment or
outstanding Tranche II Term Loans shall (i) be executed by the Corporate
Borrowers , (ii) be payable to the order of such Lender and be dated the
Initial Borrowing Date (or if issued thereafter, the date of issuance), (iii)
be in a stated principal amount equal to the Tranche II Term Loans made by such
Lender on the Initial Borrowing Date (or, if issued after the Initial Borrowing
Date, be in a stated principal amount equal to the outstanding principal amount
of Tranche II Term Loans of such Lender at such time) and payable in Dollars in
the outstanding principal amount of Tranche II Term Loans evidenced thereby,
(iv) mature on the Tranche II Maturity Date, (v) bear interest as provided in
the appropriate clause of Section 1.09 in respect of the Base Rate Loans and
Eurodollar Loans, as the case may be, evidenced thereby, (vi) be subject to
voluntary prepayment as provided in Section 4.01, and mandatory repayment as
provided in Section 4.02 and (vii) be entitled to the benefits of this
Agreement and other Credit Documents.
(d) The Dollar Revolving Note issued by each Dollar
Revolving Loan Borrower to each Lender that has a Revolving Loan Commitment or
outstanding Dollar Revolving Loans shall (i) be executed by the respective
Dollar Revolving Loan Borrower, (ii) be payable to the order of such Lender and
be dated the Initial Borrowing Date (or if issued thereafter, the date of
issuance), (iii) be in a stated principal amount equal to the Revolving Loan
Commitment of such Lender (or, if issued after the termination thereof, be in a
stated principal
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17
amount equal to the outstanding Dollar Revolving Loans of such Lender to such
Dollar revolving Loan Borrower at such time) and be payable in Dollars in the
outstanding principal amount of Dollar Revolving Loans evidenced thereby, (iv)
mature on the Revolving Loan Maturity Date, (v) bear interest as provided in
the appropriate clause of Section 1.09 in respect of Base Rate Loans and
Eurodollar Loans, as the case may be, evidenced thereby, (vi) be subject to
voluntary prepayment as provided in Section 4.01, and mandatory repayment as
provided in Section 4.02 and (vii) be entitled to the benefits of this
Agreement and the other Credit Documents.
(e) The Canadian Dollar Revolving Note issued by each
Alternate Currency Revolving Loan Borrower that desires to incur Canadian
Dollar Revolving Loans to each Lender that has a Canadian Dollar Revolving Loan
Sub- Commitment or outstanding Canadian Dollar Revolving Loans shall (i) be
executed by the respective Alternate Currency Revolving Loan Borrower, (ii) be
payable to the order of such Lender (or an affiliate designated by such Lender)
and be dated the Initial Borrowing Date (or, if issued thereafter, the date of
issuance), (iii) be in a stated principal amount (expressed in Canadian
Dollars) which exceeds by 25% the Canadian Dollar Equivalent (as of the date of
issuance) of the respective Lender's Canadian Dollar Revolving Loan
Sub-Commitment; provided that if, because of fluctuations in exchange rates
after the Initial Borrowing Date, the amount of the Canadian Dollar Revolving
Note of any Alternate Currency Revolving Loan Borrower held by any Lender would
not be at least as great as the outstanding principal amount of, and the Face
Amount of, as applicable, Canadian Dollar Revolving Loans made by such Lender
to such Alternate Currency Revolving Loan Borrower and evidenced thereby, the
respective Lender may request (and in such case the respective Alternate
Currency Revolving Loan Borrower shall promptly execute and deliver) a new
Canadian Dollar Revolving Note in an amount equal to the greater of (x) that
amount (expressed in Canadian Dollars) which at that time exceeds by 25% the
Canadian Dollar Equivalent of the respective Lender's Canadian Dollar Revolving
Loan Sub-Commitment or (y) the then outstanding principal amount of, and the
Face Amount of, as applicable, all Canadian Dollar Revolving Loans made by such
Lender to such Alternate Currency Revolving Loan Borrower, (iv) be payable in
Canadian Dollars in the outstanding principal amount of, and Face Amount of, as
applicable, the Canadian Dollar Revolving Loans made to the respective
Alternate Currency Revolving Loan Borrower and evidenced thereby, (v) mature on
the Revolving Loan Maturity Date, (vi) bear interest as provided in the
appropriate clause of Section 1.09 in respect of the Canadian Prime Rate Loans
evidenced thereby, (vii) be subject to voluntary prepayment as provided in
Section 4.01, and mandatory repayment as provided in Section 4.02 and (viii) be
entitled to the benefits of this Agreement and the other Credit Documents.
(f) The Sterling Revolving Note issued by each Alternate
Currency Revolving Loan Borrower that desires to incur Sterling Revolving Loans
to each Lender that has a Pounds Sterling Revolving Loan Sub-Commitment or
outstanding Sterling Revolving Loans shall (i) be executed by the respective
Alternate Currency Revolving Loan Borrower, (ii) be payable to the order of
such Lender (or an affiliate designated by such Lender) and be dated the
Initial Borrowing Date (or, if issued thereafter, the date of issuance), (iii)
be in a stated principal amount (expressed in Pounds Sterling) which exceeds by
25% the Sterling Equivalent (as of the date of issuance) of the respective
Lender's Pounds Sterling Revolving Loan Sub-Commitment; provided that if,
because of fluctuations in exchange rates after the Initial Borrowing Date, the
amount of the Sterling Revolving Note of any Alternate Currency Revolving Loan
Borrower held by any
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Lender would not be at least as great as the outstanding principal amount of
Sterling Revolving Loans made by such Lender at any time outstanding and
evidenced thereby, the respective Lender may request (and in such case the
respective Alternate Currency Revolving Loan Borrower shall promptly execute
and deliver) a new Sterling Revolving Note in an amount equal to the greater of
(x) that amount (expressed in Pounds Sterling) which at that time exceeds by
25% the Sterling Equivalent of the respective Lender's Pounds Sterling
Revolving Loan Sub-Commitment or (y) the then outstanding principal amount of
all Sterling Revolving Loans made by such Lender to such Alternate Currency
Revolving Loan Borrower, (iv) be payable in Pounds Sterling in the outstanding
principal amount of the Sterling Revolving Loans made to the respective
Alternate Currency Revolving Loan Borrower and evidenced thereby, (v) mature on
the Revolving Loan Maturity Date, (vi) bear interest as provided in the
appropriate clause of Section 1.09 in respect of the Sterling Revolving Loans
evidenced thereby, (vii) be subject to voluntary prepayment as provided in
Section 4.01, and mandatory repayment as provided in Section 4.02 and (viii) be
entitled to the benefits of this Agreement and the other Credit Documents.
(g) The French Franc Revolving Note issued by each
Alternate Currency Revolving Loan Borrower that desires to incur French Franc
Revolving Loans to each Lender that has a French Franc Revolving Loan
Sub-Commitment or outstanding French Franc Revolving Loans shall (i) be
executed by the respective Alternate Currency Revolving Loan Borrower, (ii) be
payable to the order of such Lender (or an affiliate designated by such Lender)
and be dated the Initial Borrowing Date (or, if issued thereafter, the date of
issuance), (iii) be in a stated principal amount (expressed in French Francs)
which exceeds by 25% the French Franc Equivalent (as of the date of issuance)
of the respective Lender's French Franc Revolving Loan Sub-Commitment; provided
that if, because of fluctuations in exchange rates after the Initial Borrowing
Date, the amount of the French Franc Revolving Note of any Alternate Currency
Revolving Loan Borrower held by any Lender would not be at least as great as
the outstanding principal amount of French Franc Revolving Loans made by such
Lender at any time outstanding and evidenced thereby, the respective Lender may
request (and in such case the respective Alternate Currency Revolving Loan
Borrower shall promptly execute and deliver) a new French Franc Revolving Note
in an amount equal to the greater of (x) that amount (expressed in French
Francs) which at that time exceeds by 25% the French Franc Equivalent of the
respective Lender's French Franc Revolving Loan Sub-Commitment or (y) the then
outstanding principal amount of all French Franc Revolving Loans made by such
Lender to such Alternate Currency Revolving Loan Borrower, (iv) be payable in
French Francs in the outstanding principal amount of the French Franc Revolving
Loans evidenced thereby, (v) mature on the Revolving Loan Maturity Date, (vi)
bear interest as provided in the appropriate clause of Section 1.09 in respect
of the French Franc Revolving Loans made to the respective Alternate Currency
Revolving Loan Borrower and evidenced thereby, (vii) be subject to voluntary
prepayment as provided in Section 4.01, and mandatory repayment as provided in
Section 4.02 and (viii) be entitled to the benefits of this Agreement and the
other Credit Documents.
(h) The Swingline Note issued by each Dollar Revolving
Loan Borrower to the Swingline Lender shall (i) be executed by the respective
Dollar Revolving Loan Borrower (and shall constitute the joint and several
obligations of the respective Dollar Revolving Loan Borrower), (ii) be payable
to the order of the Swingline Lender and be dated the Initial Borrowing Date
(or, if issued thereafter, the date of the issuance thereof), (iii) be in a
stated principal amount
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equal to the Maximum Swingline Amount and be payable in Dollars in the
principal amount of the outstanding Swingline Loans to the respective Dollar
Revolving Loan Borrower evidenced thereby from time to time, (iv) mature on the
Swingline Expiry Date, (v) bear interest as provided in the appropriate clause
of Section 1.09 in respect of the Base Rate Loans evidenced thereby, (vi) be
subject to voluntary prepayment as provided in Section 4.01, and mandatory
repayment as provided in Section 4.02 and (vii) be entitled to the benefits of
this Agreement and the other Credit Documents.
(i) Each Lender will note on its internal records the
amount of each Loan made by it to each Borrower and each payment in respect
thereof and will prior to any transfer of any of its Notes endorse on the
reverse side thereof the outstanding principal amount of Loans (including,
without limitation, the Face Amount of any Bankers' Acceptances) evidenced
thereby. Failure to make any such notation, or any error in such notation,
shall not affect any Borrower's obligations in respect of such Loans.
(j) Notwithstanding anything to the contrary contained
above or elsewhere in this Agreement, Tranche I Term Notes, Tranche II Term
Notes, Revolving Notes, Swingline Notes and Competitive Bid Notes shall only be
delivered to Lenders with Loans of the respective Tranches which at any time
specifically request the delivery of such Notes. No failure of any Lender to
request or obtain a Note evidencing its Loans of any Tranche or to any Borrower
shall affect or in any manner impair the obligations of the respective Borrower
or Borrowers to pay the Loans (and all related Obligations) which would
otherwise be evidenced thereby in accordance with the requirements of this
Agreement, and shall not in any way affect the security or guaranties therefor
provided pursuant to the various Credit Documents. Any Lender which does not
have a Note evidencing its outstanding Loans shall in no event be required to
make the notations otherwise described in preceding clause (i). At any time
when any Lender requests the delivery of a Note to evidence its Loans of any
Tranche, the respective Borrower or Borrowers shall promptly execute and
deliver to the respective Lender the requested Note or Notes in the appropriate
amount or amounts to evidence such Loans.
1.07 Conversions. (a) Each Borrower shall have the option
to convert, on any Business Day, all or a portion equal to at least the Minimum
Borrowing Amount (for the Type of Loan into which the conversion is being
made), of the outstanding principal amount of Dollar Loans (other than
Swingline Loans, which at all times shall be maintained as Base Rate Loans, and
Competitive Bid Loans) made to such Borrower pursuant to one or more Borrowings
(so long as of the same Tranche of Loans) of one or more Types of Loans into a
Borrowing (of the same Tranche of Loans) of another Type of Loan, provided
that, (i) Dollar Revolving Loans shall not be permitted to be converted into
Alternate Currency Revolving Loans, and Alternate Currency Revolving Loans
shall not be permitted to be converted into Dollar Revolving Loans or Alternate
Currency Revolving Loans of any different Alternate Currency, (ii) if
Eurodollar Loans are converted into Base Rate Loans on a date other than the
last day of an Interest Period applicable to the Loans being converted, the
respective Borrower shall compensate the applicable Lenders for any breakage
costs incurred in connection therewith as set forth in Section 1.12, (iii) no
such partial conversion of Eurodollar Loans shall reduce the outstanding
principal amount of such Eurodollar Loans made pursuant to a single Borrowing
to less than the Minimum Borrowing Amount for Eurodollar Loans of the
respective Tranche, (iv) unless the Required Lenders otherwise
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agree, Base Rate Loans may not be converted into Eurodollar Loans if any Event
of Default exists on the date of conversion, (v) prior to the 90th day after
the Initial Borrowing Date, conversions of Base Rate Loans into Eurodollar
Loans shall be governed by following clause (c) and (vi) no conversion pursuant
to this Section 1.07 shall result in a greater number of Borrowings of
Eurodollar Loans than is permitted under Section 1.02. Each such conversion
shall be effected by the respective Borrower giving the Paying Agent at the
Notice Office, prior to 12:00 Noon (New York time), at least three Business
Days' prior notice (each a "Notice of Conversion") specifying the Loans to be
so converted, the Borrowing or Borrowings pursuant to which such Loans were
made and, if to be converted into Eurodollar Loans, the Interest Period to be
initially applicable thereto. The Paying Agent shall give each Lender prompt
notice of any such proposed conversion affecting any of its Loans.
(b) Mandatory conversions of Bankers' Acceptance Loans
into Canadian Prime Rate Loans shall be made in the circumstances, and to the
extent, provided in clause (i) of Schedule III. Except as otherwise provided
under Section 1.17, Bankers' Acceptance Loans shall not be permitted to be
converted into any other Type of Loan prior to the maturity date of the
respective Bankers' Acceptance Loan.
(c) Unless the Lead Agents otherwise shall have
determined that the Syndication Date has occurred, (x) no more than three
Borrowings of Eurodollar Loans (the first of which Borrowings may not be made
sooner than the third Business Day after the Initial Borrowing Date and not
later than the fifth Business Day after the Initial Borrowing Date and must
have an Interest Period of one month, and the second and third of which
Borrowings may only be incurred on the last day of the first or second Interest
Period, as the case may be, referenced above in this parenthetical and must
also have an Interest Period of one month) may be incurred prior to the earlier
of (1) the 90th day after the Initial Borrowing Date or, if on such 90th day a
Borrowing of Eurodollar Loans remains outstanding which has an Interest Period
which extends beyond such 90th day, the last day of such Interest Period and
(2) the Syndication Date and (y) the only conversions of Base Rate Loans into
Eurodollar Loans which shall be permitted will be conversions into Eurodollar
Loans with an Interest Period of one month, which Interest Period in each case
shall begin and end on the same date as is applicable to one of the three
Interest Periods specified above in clause (x).
1.08 Pro Rata Borrowings. All Borrowings of Tranche I Term
Loans and Tranche II Term Loans under this Agreement shall be incurred from the
Lenders pro rata on the basis of their Tranche I Term Loan Commitments or
Tranche II Term Loan Commitments, as the case may be. Subject to the
provisions of Section 1.17(c) and, in the case of Mandatory Borrowings, Section
1.01(e), all Borrowings of Dollar Revolving Loans under this Agreement
(including all Mandatory Borrowings) shall be incurred from the RL Lenders pro
rata on the basis of their Dollar Percentages and (ii) all Borrowings of
Alternate Currency Revolving Loans in a given Alternate Currency under this
Agreement shall be incurred from the Alternate Currency Lenders pro rata on the
basis of their Alternate Currency RL Percentage as it relates to such Alternate
Currency. No Lender shall be responsible for any default by any other Lender
of its obligation to make Loans hereunder and each Lender shall be obligated to
make the Loans provided to be made by it hereunder, regardless of the failure
of any other Lender to make its Loans hereunder.
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1.09 Interest. (a) Each Borrower hereby agrees to pay
interest in respect of the unpaid principal amount of each Base Rate Loan made
to it from the date the proceeds thereof are made available to such Borrower
until the earlier of (x) the maturity thereof (whether by acceleration,
prepayment or otherwise) and (y) the conversion of such Base Rate Loan to a
Eurodollar Loan pursuant to Section 1.07, at a rate per annum which shall be
equal to the sum of the Applicable Margin plus the Base Rate, each as in effect
from time to time.
(b) Each Borrower hereby agrees to pay interest in
respect of the unpaid principal amount of each Eurodollar Loan made to it from
the date the proceeds thereof are made available to such Borrower until the
earlier of (x) the maturity thereof (whether by acceleration, prepayment or
otherwise) and (y) the conversion of such Eurodollar Loan to a Base Rate Loan
pursuant to Section 1.07, 1.10 or 1.11, as applicable, at a rate per annum
which shall, during each Interest Period applicable thereto, be equal to the
sum of the Applicable Margin as in effect from time to time plus the Eurodollar
Rate for such Interest Period.
(c) Each Alternate Currency Revolving Loan Borrower
hereby agrees to pay interest in respect of the unpaid principal amount of each
Canadian Prime Rate Loan made to such Borrower from the date the proceeds
thereof are made available to such Borrower (which shall, in the case of a
conversion pursuant to clause (i) of Schedule III, be deemed to be the date
upon which a maturing Bankers' Acceptance is converted into a Canadian Prime
Rate Loan pursuant to said clause (i), with the proceeds thereof to be equal to
the full Face Amount of the maturing Bankers' Acceptances) until the maturity
thereof (whether by acceleration or otherwise) at a rate per annum which shall
be equal to the sum of the Applicable Margin plus the Canadian Prime Rate, each
as in effect from time to time.
(d) With respect to Bankers' Acceptance Loans, Acceptance
Fees shall be payable in connection therewith as provided in clause (g) of
Schedule III. Until maturity of the respective Banker's Acceptances, interest
shall not otherwise be payable with respect thereto.
(e) Each Alternate Currency Revolving Loan Borrower
hereby agrees to pay interest in respect of the unpaid principal amount of each
Sterling Revolving Loan made to such Borrower from the date the proceeds
thereof are made available to such Borrower until the maturity thereof (whether
by acceleration or otherwise) at a rate per annum which shall, during each
Interest Period applicable thereto, be equal to the sum of the Applicable
Margin plus the Sterling Euro Rate for such Interest Period plus the MLA Cost.
(f) Each Alternate Currency Revolving Borrower hereby
agrees to pay interest in respect of the unpaid principal amount of each French
Franc Revolving Loan made to such Borrower from the date the proceeds thereof
are made available to such Borrower until the maturity thereof (whether by
acceleration or otherwise) at a rate per annum which shall, during each
Interest Period applicable thereto, be equal to the sum of the Applicable
Margin plus the French Franc Euro Rate for such Interest Period.
(g) Each Revolving Loan Borrower agrees to pay interest
in respect of the unpaid principal amount of each Competitive Bid Loan made to
it from the date the proceeds thereof are made available to such Revolving Loan
Borrower, as the case may be, until the
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maturity thereof (whether by acceleration or otherwise) at the rate or rates
per annum specified pursuant to Section 1.04(b) by the Bidder RL Lender or
Bidder RL Lenders, as the case may be, making such Competitive Bid Loan and
accepted by such Revolving Loan Borrower pursuant to Section 1.04(c)(2).
(h) Overdue principal and, to the extent permitted by
law, overdue interest in respect of each Loan and any other overdue amount
payable hereunder shall, in each case, bear interest at a rate per annum (1) in
the case of overdue principal of, and interest or other amounts owing with
respect to, Canadian Dollar Revolving Loans and any other amounts owing in
Canadian Dollars, equal to 2% per annum in excess of the Applicable Margin
(calculated based on Level 8 pricing as shown in the definition of Applicable
Margin) for Canadian Prime Rate Loans plus the Canadian Prime Rate, each as in
effect from time to time, (2) in the case of overdue principal of, and interest
or other amounts owing with respect to, Sterling Revolving Loans and any other
amounts owing in Pounds Sterling, equal to 2% per annum in excess of the
Applicable Margin (calculated based on Level 8 pricing as shown in the
definition of Applicable Margin) plus the Sterling Euro Rate for such
successive periods not exceeding three months as the Paying Agent may determine
from time to time in respect of amounts comparable to the amount not paid plus
the MLA Cost, (3) in the case of overdue principal of, and interest or other
amounts owing with respect to, French Franc Revolving Loans, equal to 2% per
annum in excess of the Applicable Margin (calculated based on Level 8 pricing
as shown in the definition of Applicable Margin) plus the French Franc Euro
Rate for such successive periods not exceeding three months as the Paying Agent
may determine from time to time in respect of amounts comparable to the amount
not paid and (4) in all other cases, equal to the greater of (x) 2% per annum
in excess of the rate otherwise applicable to Base Rate Loans of the respective
Tranche (or in the case of amounts which do not relate to a given Tranche of
outstanding Dollar Loans, 2% per annum in excess of the rate otherwise
applicable to Revolving Loans maintained as Base Rate Loans) from time to time
(calculated based on Level 8 pricing as shown in the definition of Applicable
Margin) and (y) the rate which is 2% in excess of the rate then borne by such
Loans.
(i) Accrued (and theretofore unpaid) interest shall be
payable (i) in respect of each Base Rate Loan and Canadian Prime Rate Loan, in
arrears on each F&I Payment Date, (ii) in the case of any Eurodollar Loan, on
the date of any conversion to a Base Rate Loan pursuant to Section 1.07, 1.10
or 1.11, as applicable (on the amount so converted), (iii) in respect of each
Euro Rate Loan, on the last day of each Interest Period applicable thereto (and
in the case of any Interest Period with a duration in excess of one month at
any time when the proviso to the definition of F&I Payment Date is operative in
accordance with its terms, at one-calendar month intervals occurring after the
first day of the respective Interest Period), (iv) in respect of each
Competitive Bid Loan, at such times as specified in the Notice of Competitive
Bid Borrowing relating thereto and (v) in respect of each Loan (other than
Bankers' Acceptances), on any repayment or prepayment (on the amount repaid or
prepaid), at maturity (whether by acceleration or otherwise) and, after such
maturity, on demand; provided that, in the case of Dollar Revolving Loans
maintained as Base Rate Loans, interest shall not be payable pursuant to
preceding clause (v) at the time of any repayment or prepayment thereof unless
the respective repayment or prepayment is made in conjunction with a permanent
reduction of the Total Revolving Loan Commitment.
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(j) Upon each Interest Determination Date, the Paying Agent
shall determine the respective Euro Rate for the respective Interest Period or
Interest Periods to be applicable to Euro Rate Loans and shall promptly notify
the respective Borrower and the Lenders thereof. Each such determination
shall, absent manifest error, be final and conclusive and binding on all
parties hereto.
1.10 Interest Periods. At the time it gives any Notice of
Borrowing or Notice of Conversion in respect of the making of, or conversion
into, any Euro Rate Loan (in the case of the initial Interest Period applicable
thereto) or on the third Business Day prior to the expiration of an Interest
Period applicable to such Euro Rate Loan (in the case of any subsequent
Interest Period), the respective Borrower or Borrowers shall have the right to
elect, by giving the Paying Agent notice thereof, the interest period (each an
"Interest Period") applicable to such Euro Rate Loan, which Interest Period
shall, at the option of such Borrower, be a one, two or three month period,
provided that:
(i) all Euro Rate Loans comprising a single Borrowing shall at
all times have the same Interest Period;
(ii) the initial Interest Period for any Borrowing of Euro Rate
Loans shall commence on the date of such Borrowing (including, in the
case of Dollar Loans, the date of any conversion thereto from a Dollar
Loan of a different Type) and each Interest Period occurring
thereafter in respect of such Borrowing of Euro Rate Loans shall
commence on the day on which the next preceding Interest Period
applicable thereto expires;
(iii) if any Interest Period for a Euro Rate Loan begins on a
day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period, such Interest
Period shall end on the last Business Day of such calendar month;
(iv) if any Interest Period for a Euro Rate Loan would
otherwise expire on a day which is not a Business Day, such Interest
Period shall expire on the next succeeding Business Day; provided,
however, that if any Interest Period for a Euro Rate Loan would
otherwise expire on a day which is not a Business Day but is a day of
the month after which no further Business Day occurs in such month,
such Interest Period shall expire on the next preceding Business Day;
(v) unless the Required Lenders otherwise agree, no Interest
Period may be selected at any time when any Event of Default is in
existence;
(vi) no Interest Period in respect of any Borrowing of any
Tranche of Loans shall be selected which extends beyond the respective
Maturity Date for such Tranche of Loans;
(vii) no Interest Period in respect of any Borrowing of Term
Loans of any Tranche shall be selected which extends beyond any date
upon which a mandatory repayment of such Tranche of Term Loans will be
required to be made under Section 4.02(b) if the aggregate principal
amount of Term Loans of such Tranche which have Interest Periods
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which will expire after such date will be in excess of the aggregate
principal amount of Term Loans of such Tranche permitted to be
outstanding after such mandatory repayment; and
(viii) prior to the occurrence of the Syndication Date, the only
Interest Periods which may be selected are one month Interest Periods
which begin and end on the dates specified in Section 1.07(c).
Prior to the termination of any Interest Period applicable to
Alternate Currency Revolving Loans, the respective Alternate Currency Revolving
Loan Borrower may, at its option, designate that the respective Borrowing
subject thereto be split into more than one Borrowing (for purposes of electing
multiple Interest Periods to be subsequently applicable thereto), so long as
each such Borrowing resulting from the action taken pursuant to this sentence
meets the Minimum Borrowing Amount for the respective Tranche. If upon the
expiration of any Interest Period applicable to a Borrowing of Euro Rate Loans,
the respective Borrower has failed to elect, or is not permitted to elect, a
new Interest Period to be applicable to such Euro Rate Loans as provided above,
such Borrower shall be deemed to have elected (x) if Eurodollar Loans, to
convert such Eurodollar Loans into Base Rate Loans and (y) if Alternate
Currency Revolving Loans, to select a one-month Interest Period for such
Alternate Currency Revolving Loans, in either case effective as of the
expiration date of such current Interest Period.
1.11 Increased Costs, Illegality, etc. (a) In the event
that any Lender shall have determined in good faith (which determination shall,
absent manifest error, be final and conclusive and binding upon all parties
hereto but, with respect to clauses (i) and (iv) below, may be made only by the
Paying Agent):
(i) on any Interest Determination Date that, by reason of any
changes arising after the date of this Agreement affecting the
applicable interbank market, adequate and fair means do not exist for
ascertaining the applicable interest rate on the basis provided for in
the definition of the respective Euro Rate; or
(ii) at any time, that such Lender shall incur increased costs
or reductions in the amounts received or receivable hereunder with
respect to any Euro Rate Loan because of (x) any change arising after
the date of this Agreement in any applicable law or governmental rule,
regulation, order, guideline or request (whether or not having the
force of law) or in the interpretation or administration thereof and
including the introduction of any new law or governmental rule,
regulation, order, guideline or request, such as, for example, but not
limited to: (A) a change in the basis of taxation of payment to any
Lender of the principal of or interest on the Notes or any other
amounts payable hereunder (except for changes in the rate of tax on,
or determined by reference to, the net income or profits of such
Lender pursuant to the laws of the jurisdiction in which it is
organized or in which its principal office or applicable lending
office is located or any subdivision thereof or therein) or (B) a
change in official reserve requirements (except to the extent covered
by Section 1.11(d) in respect of Alternate Currency Revolving Loans or
included in the computation of the Eurodollar Rate) or any special
deposit, assessment or similar requirement against assets of, deposits
with or for the account of, or credit extended by, any
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Lender (or its applicable lending office) and/or (y) other
circumstances since the date of this Agreement affecting the
applicable interbank market; or
(iii) at any time after the date of this Agreement, that the
making or continuance of any Euro Rate Loan has been made (x) unlawful
by any law or governmental rule, regulation or order, (y) impossible
by compliance by any Lender in good faith with any governmental
request (whether or not having the force of law) or (z) impracticable
as a result of a contingency occurring after the date of this
Agreement which materially and adversely affects the applicable
interbank market; or
(iv) at any time that any Alternate Currency is not available
in sufficient amounts, as determined in good faith by the Paying
Agent, to fund any Borrowing of Alternate Currency Revolving Loans
requested pursuant to Section 1.01;
then, and in any such event, such Lender (or the Paying Agent, in the case of
clause (i) or (iv) above) shall promptly give notice (by telephone promptly
confirmed in writing) to the respective Borrower or Borrowers and, except in
the case of clauses (i) and (iv) above, to the Paying Agent of such
determination (which notice the Paying Agent shall promptly transmit to each of
the other Lenders). Thereafter (w) in the case of clause (i) above, (A) in the
event that Eurodollar Loans are so affected, Eurodollar Loans shall no longer
be available until such time as the Paying Agent notifies the Dollar Borrowers
and the Lenders that the circumstances giving rise to such notice by the Paying
Agent no longer exist, and any Notice of Borrowing or Notice of Conversion
given by any Borrower with respect to Eurodollar Loans which have not yet been
incurred (including by way of conversion) shall be deemed rescinded by the
respective Borrower, and (B) in the event that any Alternate Currency Revolving
Loan is so affected, the relevant Euro Rate shall be determined on the basis
provided in the proviso to the definition of the relevant Euro Rate, (x) in the
case of clause (ii) above, the respective Borrower or Borrowers shall pay to
such Lender, upon its written request therefor, such additional amounts (in the
form of an increased rate of, or a different method of calculating, interest or
otherwise as such Lender shall determine) as shall be required to compensate
such Lender for such increased costs or reductions in amounts received or
receivable hereunder (a written notice as to the additional amounts owed to
such Lender, showing in reasonable detail the basis for the calculation
thereof, submitted to the respective Borrower or Borrowers by such Lender
shall, absent manifest error, be final and conclusive and binding on all the
parties hereto), (y) in the case of clause (iii) above, the respective Borrower
or Borrowers shall take one of the actions specified in Section 1.11(b) as
promptly as possible and, in any event, within the time period required by law
and (z) in the case of clause (iv) above, Alternate Currency Revolving Loans
(exclusive of Alternate Currency Revolving Loans which have theretofore been
funded) shall no longer be available in the respective Alternate Currency or
Alternate Currencies until such time as the Paying Agent notifies the Alternate
Currency Revolving Loan Borrowers and the Lenders that the circumstances giving
rise to such notice by the Paying Agent no longer exist, and any Notice of
Borrowing given by any Alternate Currency Revolving Loan Borrower with respect
to such Alternate Currency Revolving Loans which have not been incurred shall
be deemed rescinded by the respective Alternate Currency Revolving Loan
Borrower.
(b) At any time that any Euro Rate Loan is affected by
the circumstances described in Section 1.11(a)(ii) or (iii), the respective
Borrower or Borrowers may (and in the
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case of a Euro Rate Loan affected by the circumstances described in Section
1.11(a)(iii) shall) either (x) if the affected Euro Rate Loan is then being
made initially or pursuant to a conversion, cancel the respective Borrowing by
giving the Paying Agent telephonic notice (confirmed in writing) on the same
date that such Borrower was notified by the affected Lender or the Paying Agent
or (y) if the affected Euro Rate Loan is then outstanding, upon at least three
Business Days' written notice to the Paying Agent, (A) in the case of a
Eurodollar Loan, request the affected Lender to convert such Eurodollar Loan
into a Base Rate Loan (which conversion, in the case of the circumstances
described in Section 1.11(a)(iii), shall occur no later than the last day of
the Interest Period then applicable to such Eurodollar Loan (or such earlier
date as shall be required by applicable law)) and (B) in the case of an
Alternate Currency Revolving Loan, repay such Alternate Currency Revolving Loan
in full; provided that, (i) if the circumstances described in Section
1.11(a)(iii) apply to any Alternate Currency Revolving Loan, the respective
Alternate Currency Revolving Loan Borrowers may, in lieu of taking the actions
described above, maintain such Alternate Currency Revolving Loan outstanding,
in which case the applicable Euro Rate shall be determined on the basis
provided in the proviso to the definition of French Franc Euro Rate or Sterling
Euro Rate, as the case may be, unless the maintenance of such Alternate
Currency Revolving Loan outstanding on such basis would not stop the conditions
described in Section 1.11(a)(iii) from existing (in which case the actions
described above, without giving effect to the proviso, shall be required to be
taken) and (ii) if more than one Lender is affected at any time as described
above in this clause (b), then all affected Lenders must be treated the same
pursuant to this Section 1.11(b).
(c) If at any time after the date of this Agreement any
Lender determines that the introduction of or any change (which introduction or
change shall have occurred after the date of this Agreement) in any applicable
law or governmental rule, regulation, order, guideline, directive or request
(whether or not having the force of law) concerning capital adequacy, or any
change in interpretation or administration thereof by the National Association
of Insurance Commissioners ("NAIC") or any governmental authority, central bank
or comparable agency, will have the effect of increasing the amount of capital
required or expected to be maintained by such Lender or any corporation
controlling such Lender based on the existence of such Lender's Commitments
hereunder or its obligations hereunder, then the Borrowers jointly and
severally agree to pay to such Lender, upon its written demand therefor, such
additional amounts as shall be required to compensate such Lender or such other
corporation for the increased cost to such Lender or such other corporation or
the reduction in the rate of return to such Lender or such other corporation as
a result of such increase of capital. In determining such additional amounts,
each Lender will act reasonably and in good faith and will use averaging and
attribution methods which are reasonable, provided that such Lender's
determination of compensation owing under this Section 1.11(c) shall, absent
manifest error, be final and conclusive and binding on all the parties hereto.
Each Lender, upon determining that any additional amounts will be payable
pursuant to this Section 1.11(c), will give prompt written notice thereof to
the Borrowers, which notice shall show in reasonable detail the basis for
calculation of such additional amounts.
(d) In the event that any Lender shall in good faith
determine (which determination shall, absent manifest error, be final and
conclusive and binding on all parties hereto) at any time that such Lender is
required to maintain reserves (including, without limitation, any marginal,
emergency, supplemental, special or other reserves required by applicable law)
which
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have been established by any Federal, state, local or foreign court or
governmental agency, authority, instrumentality or regulatory body with
jurisdiction over such Lender (including any branch, Affiliate or funding
office thereof) in respect of any Euro Rate Loans or any category of
liabilities which includes deposits by reference to which the interest rate on
any Euro Rate Loan is determined or any category of extensions of credit or
other assets which includes loans of the same or similar type as any Euro Rate
Loans, then, unless such reserves are already being charged for pursuant to
Section 1.11(a)(ii), such Lender shall promptly notify the respective Borrowers
in writing specifying the additional amounts required to indemnify such Lender
against the cost of maintaining such reserves (such written notice to provide
in reasonable detail a computation of such additional amounts) and the
respective Borrowers shall, and shall be obligated to, pay to such Lender such
specified amounts as additional interest at the time that the respective
Borrowers are otherwise required to pay interest in respect of such Euro Rate
Loans or, if later, on written demand therefor by such Lender.
1.12 Compensation. The respective Borrower or Borrowers
shall compensate each Lender, upon its written request (which request shall set
forth in reasonable detail the basis for requesting such compensation), for all
reasonable losses, expenses and liabilities (including, without limitation, any
loss, expense or liability incurred by reason of the liquidation or
reemployment of deposits or other funds required by such Lender to fund its
Euro Rate Loans, but excluding loss of anticipated profits) which such Lender
may sustain: (i) if for any reason (other than a default by such Lender) a
Borrowing of, or conversion from or into, Euro Rate Loans does not occur on a
date specified therefor in a Notice of Borrowing or Notice of Conversion
(whether or not rescinded or deemed rescinded pursuant to Section 1.11(a));
(ii) if any repayment (including any repayment made pursuant to Section 4.01 or
4.02 or as a result of an acceleration of the Loans pursuant to Section 10) or
conversion of any Euro Rate Loans occurs on a date which is not the last day of
an Interest Period with respect thereto; (iii) if any repayment (including any
repayment made pursuant to Section 4.01 or 4.02 or as a result of an
acceleration of the Loans pursuant to Section 10) of any Bankers' Acceptance
Loan occurs on a date which is not the maturity date of the respective Bankers'
Acceptance; (iv) if any prepayment of any Euro Rate Loans or Bankers'
Acceptance Loans is not made on any date specified in a notice of prepayment
given by the respective Borrower or Borrowers; or (v) as a consequence of (x)
any other default by the respective Borrower or Borrowers to repay its Loans
when required by the terms of this Agreement or any Note held by such Lender or
(y) any election made pursuant to Section 1.11(b).
1.13 Lending Offices; Changes Thereto. (a) Each Lender may
at any time or from time to time designate, by written notice to the Paying
Agent to the extent not already reflected on Schedule II, one or more lending
offices (which, for this purpose, may include Affiliates of the respective
Lender) for the various Loans made, and Letters of Credit participated in, by
such Lender (including by designating a separate lending office (or Affiliate)
to act as such with respect to Dollar Loans and Letter of Credit Outstandings
versus Alternate Currency Loans); provided that, for designations made after
the Initial Borrowing Date, to the extent such designation shall result in
increased costs under Section 1.11, 2.06 or 4.04 in excess of those which would
be charged in the absence of the designation of a different lending office
(including a different Affiliate of the respective Lender), then the Borrowers
shall not be obligated to pay such excess increased costs (although the
Borrowers, in accordance with and pursuant to the other provisions of this
Agreement, shall be obligated to pay the costs which would apply in the absence
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of such designation and any subsequent increased costs of the type described
above resulting from changes after the date of the respective designation).
Each lending office and Affiliate of any Lender designated as provided above
shall, for all purposes of this Agreement, be treated in the same manner as the
respective Lender (and shall be entitled to all indemnities and similar
provisions in respect of its acting as such hereunder).
(b) Each Lender agrees that on the occurrence of any
event giving rise to the operation of Section 1.11(a)(ii) or (iii), Section
1.11(c), Section 1.11(d), Section 2.06 or Section 4.04 with respect to such
Lender, it will, if requested by the applicable Borrower or Borrowers, use
reasonable efforts (subject to overall policy considerations of such Lender) to
designate another lending office for any Loans or Letters of Credit affected by
such event, provided that such designation is made on such terms that such
Lender and its lending office suffer no economic, legal or regulatory
disadvantage, with the object of avoiding the consequence of the event giving
rise to the operation of such Section. Nothing in this Section 1.13 shall
affect or postpone any of the obligations of any Borrower or the right of any
Lender provided in Sections 1.11, 2.06 and 4.04.
1.14 Replacement of Lenders. (x) If any Lender becomes a
Defaulting Lender or otherwise defaults in its obligations to make Loans or
fund Unpaid Drawings, (y) upon the occurrence of an event giving rise to the
operation of Section 1.11(a)(ii) or (iii), Section 1.11(c), Section 1.11(d),
Section 1.16(b), Section 2.06 or Section 4.04 with respect to any Lender which
results in such Lender charging to any Borrower increased costs in excess of
those being generally charged by the other Lenders or (z) in the case of the
refusal by a Lender to consent to proposed changes, waivers, discharges or
terminations with respect to this Agreement which have been approved by the
Required Lenders as (and to the extent) provided in Section 13.12(b), the
Parent Companies shall have the right, if no Event of Default and no Specified
Default will exist immediately after giving effect to such replacement, to
replace such Lender (the "Replaced Lender") with one or more other Eligible
Transferees, none of whom shall constitute a Defaulting Lender at the time of
such replacement (collectively, the "Replacement Lender") and each of whom
shall be required to be reasonably acceptable to the Paying Agent and each
Lender which at the time of such replacement is an Issuing Bank with respect to
one or more outstanding Letters of Credit; provided that
(i) any Replacement Lender in a replacement pursuant to this
Section 1.14 (a) (with each such replacement being herein called a
"Replacement") shall be required to comply with the requirements of
Section 13.04(b) and at the time of any Replacement the Replacement
Lender shall enter into one or more Assignment and Assumption
Agreements pursuant to Section 13.04(b) (and shall pay all fees
payable pursuant to said Section 13.04(b)) pursuant to which the
Replacement Lender shall acquire all of the Commitments (and related
sub- commitments) and outstanding Loans of, and in each case
participations in Letters of Credit by, the Replaced Lender and, in
connection therewith, shall pay to (x) the Replaced Lender in respect
thereof amounts (in the respective currencies in which such
obligations are denominated) equal to the sum of (I) the principal of
(including, without limitation, the Face Amount of Bankers' Acceptance
Loans), and all accrued interest on, all outstanding Loans of the
Replaced Lender, (II) all Unpaid Drawings that have been funded by
(and not reimbursed to) such Replaced Lender, together with all then
unpaid
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interest with respect thereto at such time and (III) all accrued, but
theretofore unpaid, Fees owing to the Replaced Lender pursuant to
Section 3.01, (y) each Issuing Bank an amount equal to such Replaced
Lender's Dollar Percentage of any Unpaid Drawing (which at such time
remains an Unpaid Drawing) to the extent such amount was not
theretofore funded by such Replaced Lender to such Issuing Bank and
(z) the Swingline Lender an amount equal to such Replaced Lender's
Dollar Percentage of any Mandatory Borrowing to the extent such amount
was not theretofore funded by such Replaced Lender and
(ii) all obligations of the Borrowers due and owing to the
Replaced Lender at such time (other than those specifically described
in clause (i) above in respect of which the assignment purchase price
has been, or is concurrently being, paid) shall be paid in full to
such Replaced Lender concurrently with such replacement.
Upon the execution of the respective Assignment and Assumption
Agreements, the payment of amounts referred to in clauses (i) and (ii) above,
recordation of the assignment on the Register by the Paying Agent pursuant to
Section 13.15 and, if so requested by the Replacement Lender, delivery to the
Replacement Lender of the appropriate Note or Notes executed by the respective
Borrowers, the Replacement Lender shall become a Lender hereunder and the
Replaced Lender shall cease to constitute a Lender hereunder, except with
respect to indemnification provisions under this Agreement (including, without
limitation, Sections 1.11, 1.12, 1.16, 2.06, 4.04, 12.06 and 13.01), which
shall survive as to such Replaced Lender. In connection with any replacement
of Lenders pursuant to, and as contemplated by, this Section 1.14, each of the
Borrowers hereby irrevocably authorizes the Parent Companies to take all
necessary action, in the name of the various Borrowers, as described above in
this Section 1.14 in order to effect the replacement of the respective Lender
or Lenders in accordance with the preceding provisions of this Section 1.14.
1.15 Bankers' Acceptance Provisions. The parties hereto
agree that the provisions of Schedule III shall apply to all Bankers'
Acceptances and Bankers' Acceptance Loans created hereunder, and that the
provisions of Schedule III shall be deemed incorporated by reference into this
Agreement as if such provisions were set forth in their entirety herein.
1.16 European Monetary Union. (a) If, as a result of the
implementation of European monetary union, (i) any currency ceases to be lawful
currency of the nation issuing the same and is replaced by a European single
currency or (ii) any currency and a European single currency are at the same
time recognized by the central bank or comparable authority of the nation
issuing such currency as lawful currency of such nation and the Paying Agent or
the Majority Euro Lenders shall so request in a notice delivered to the Parent
Companies, then any amount payable hereunder by the Lenders to any Borrower, or
by any Borrower to the Lenders, in such currency shall instead be payable in
the European single currency and the amount so payable shall be determined by
translating the amount payable in such currency to such European single
currency at the exchange rate recognized by the European Central Bank for the
purpose of implementing European monetary union.
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(b) The Borrowers jointly and severally agree, at the
request of any Alternate Currency Lender, to compensate such Alternate Currency
Lender for any reasonable loss, cost, expense or reduction in return that shall
be incurred or sustained by such Alternate Currency Lender (other than as a
result of such Alternate Currency Lender's gross negligence or willful
misconduct) as a result of the implementation of European monetary union, that
would not have been incurred or sustained but for the transactions provided for
herein and that, to the extent that such loss, cost, expense or reduction is of
a type generally applicable to extensions of credit similar to the extensions
of credit hereunder is generally being requested from borrowers subject to
similar provisions. A certificate of an Alternate Currency Lender setting
forth (x) the amount or amounts necessary to compensate such Alternate Currency
Lender, (y) describing the nature of the loss or expense sustained or incurred
by such Alternate Currency Lender as a consequence thereof and (z) setting
forth a reasonably detailed explanation of the calculation thereof shall be
delivered to the Parent Companies and shall be conclusive absent manifest
error. The respective Borrower shall pay to such Alternate Currency Lender the
amount shown as due on any such certificate within 10 days after receipt
thereof.
(c) Each Borrower agrees, at the request of the Majority
Euro Lenders, at the time of or at any time following the implementation of
European monetary union, to enter into an agreement amending this Agreement
(subject to obtaining the approval of the Required Lenders) in such manner as
the Majority Euro Lenders shall specify in order to reflect the implementation
of such monetary union to place the parties hereto in the position they would
have been in had such monetary union not been implemented.
1.17 Special Provisions Regarding RL Lenders and Alternate
Currency Revolving Loans. (a) On any date the Corporation may, at its option,
permanently reduce or terminate the Alternate Currency Revolving Loan Sub-
Commitments relating to one or more of the Alternate Currencies by written
notice to the Paying Agent to such effect (specifying the aggregate amount of
reductions to various Alternate Currency Revolving Loan Sub-Commitments
relating to each Alternate Currency); provided that (i) no such reduction shall
be made in an amount which would cause the Dollar Equivalent of the then
outstanding aggregate principal amount or Face Amount, as the case may be, of
the Alternate Currency Loans in any given Alternate Currency to exceed the
Alternate Currency Revolving Loan Sub-Commitments of the Alternate Currency
Lenders in respect of such Alternate Currency after giving effect to the
respective reduction pursuant to this Section 1.17(a), (ii) each reduction
pursuant to this clause (a) shall apply pro rata to reduce the Alternate
Currency Revolving Loan Sub-Commitments of the various Alternate Currency
Lenders in respect of such Alternate Currency (based upon the relative amounts
of such sub-commitments), (iii) except to the extent the reduction to the
Alternate Currency Revolving Loan Sub-Commitments pursuant to this Section
1.17(a) is accompanied by a like reduction to the amount of the Total Revolving
Loan Commitment pursuant to Section 3.02, the amount of each RL Lender's
reduction to its Alternate Currency Revolving Loan Sub-Commitments pursuant to
this clause (a) shall result in a like increase to its Non-Alternate Currency
Revolving Loan Sub-Commitment.
(b) On the fifth Business Day after the occurrence of a
Sharing Event, automatically (and without the taking of any action) (x) all
then outstanding Alternate Currency Revolving Loans shall be automatically
converted into Dollar Loans (in an amount equal to the
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Dollar Equivalent of the aggregate principal amount or Face Amount, as the case
may be, of the respective Alternate Currency Revolving Loans on the date such
Sharing Event first occurred, which Dollar Revolving Loans shall be owed by the
respective Alternate Currency Revolving Loan Borrower, shall thereafter be
deemed to be Base Rate Loans and shall be immediately due and payable on the
date such Sharing Event has occurred) and (y) all accrued and unpaid interest
and other amounts owing with respect to such Alternate Currency Revolving Loans
shall be immediately due and payable in Dollars, taking the Dollar Equivalent
of such accrued and unpaid interest and other amounts. The occurrence of any
conversion as provided above in this Section 1.17(b) shall be deemed to
constitute, for purposes of Section 1.12, a prepayment of the respective
Alternate Currency Revolving Loans before the last day of any Interest Period
relating thereto.
(c) Upon the occurrence of a Sharing Event, each RL
Lender shall (and hereby unconditionally and irrevocably agrees to) purchase
and sell (in each case in Dollars) undivided participating interests in the
Revolving Loans outstanding to, and any Unpaid Drawings owing by, each
Revolving Loan Borrower in such amounts so that each RL Lender shall have a
share of the outstanding Revolving Loans and Unpaid Drawings then owing by each
Revolving Loan Borrower equal to its RL Percentage thereof. Upon any such
occurrence the Paying Agent shall notify each RL Lender and shall specify the
amount of Dollars required from such RL Lender in order to effect the purchases
and sales by the various RL Lenders of participating interests in the amounts
required above (together with accrued interest with respect to the period from
the last interest payment date through the date of the Sharing Event plus any
additional amounts payable by any respective Borrower pursuant to Section 4.04
hereof in respect of such accrued but unpaid interest); provided that in the
event that a Sharing Event shall have occurred, each RL Lender shall be deemed
to have purchased, automatically and without request, such participating
interests. Promptly upon receipt of such request, each RL Lender shall deliver
to the Paying Agent (in immediately available funds in Dollars) the net amounts
as specified by the Paying Agent. The Paying Agent shall promptly deliver the
amounts so received to the various RL Lenders in such amounts as are needed to
effect the purchases and sales of participations as provided above. Promptly
following receipt thereof, each RL Lender which has sold participations in any
of its Revolving Loans (through the Paying Agent) will deliver to each RL
Lender (through the Paying Agent) which has so purchased a participating
interest a participation certificate dated the date of receipt of such funds
and in such amount. It is understood that the amount of funds delivered by
each RL Lender shall be calculated on a net basis, giving effect to both the
sales and purchases of participations by the various RL Lenders as required
above.
(d) Upon, and after, the occurrence of a Sharing Event
(i) no further Alternate Currency Revolving Loans shall be made to any
Borrower, (ii) all amounts from time to time accruing with respect to, and all
amounts from time to time payable on account of, such Alternate Currency
Revolving Loans (including, without limitation, any interest and other amounts
which were accrued but unpaid on the date of such purchase) shall be payable in
Dollars as if such Alternate Currency Revolving Loan had originally been made
in Dollars and shall be distributed by the relevant RL Lenders (or their
affiliates) to the Paying Agent for the account of the RL Lenders which made
such Loans or are participating therein and (iii) the Alternate Currency
Revolving Loan Sub-Commitments of the various Alternate Currency Lenders shall
be automatically terminated (which shall result in a like increase to the
Non-Alternate Currency Revolving
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Loan Sub-Commitments of the respective Lenders, except to the extent the
Revolving Loan Commitments of the various Lenders are terminated as otherwise
provided in this Agreement). Notwithstanding anything to the contrary
contained above, the failure of any RL Lender to purchase its participating
interests in any Revolving Loans upon the occurrence of a Sharing Event shall
not relieve any other RL Lender of its obligation hereunder to purchase its
participating interests in a timely manner, but no RL Lender shall be
responsible for the failure of any other RL Lender to purchase the
participating interest to be purchased by such other RL Lender on any date.
(e) If any amount required to be paid by any RL Lender
pursuant to Section 1.17(c) is paid to the Paying Agent within one Business Day
following the date upon which such RL Lender receives notice from the Paying
Agent of the amount of its participations required to be purchased pursuant to
said Section 1.17(c), such RL Lender shall also pay to the Paying Agent on
demand an amount equal to the product of (i) the amount so required to be paid
by such RL Lender for the purchase of its participations times (ii) the daily
average Federal Funds Rate, during the period from and including the date of
request for payment to the date on which such payment is immediately available
to the Paying Agent times (iii) a fraction of the numerator of which is the
number of days that elapsed during such period and the denominator of which is
360. If any such amount required to be paid by any RL Lender pursuant to
Section 1.17(c) is not in fact made available to the Paying Agent within three
Business Days following the date upon which such RL Lender receives notice from
the Paying Agent as to the amount of participations required to be purchased by
it, the Paying Agent shall be entitled to recover from such RL Lender on
demand, such amount with interest thereon calculated from such request date at
the rate per annum applicable to Dollar Revolving Loans maintained as Base Rate
Loans hereunder. A certificate of the Paying Agent submitted to any RL Lender
with respect to any amounts payable under this Section 1.17 shall be conclusive
in the absence of manifest error. Amounts payable by any RL Lender pursuant to
this Section 1.17 shall be paid to the Paying Agent for the account of the
relevant RL Lenders; provided that, if the Paying Agent (in its sole
discretion) has elected to fund on behalf of such RL Lender the amounts owing
to such RL Lenders, then the amounts shall be paid to the Paying Agent for its
own account.
(f) Whenever, at any time after the relevant RL Lenders
have received from any RL Lenders purchases of participations in any Revolving
Loans pursuant to this Section 1.17, the various RL Lenders receive any payment
on account thereof, such RL Lenders will distribute to the Paying Agent, for
the account of the various RL Lenders participating therein, such RL Lenders'
participating interests in such amounts (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such
participations were outstanding) in like funds as received; provided, however,
that in the event that such payment received by any RL Lenders is required to
be returned, the RL Lenders who received previous distributions in respect of
their participating interests therein will return to the respective RL Lenders
any portion thereof previously so distributed to them in like funds as such
payment is required to be returned by the respective RL Lenders.
(g) Each RL Lender's obligation to purchase participating
interest pursuant to this Section 1.17 shall be absolute and unconditional and
shall not be affected by any circumstance including, without limitation, (a)
any setoff, counterclaim, recoupment, defense or other right
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which such RL Lender may have against any other RL Lender, the relevant
Borrower or any other Person for any reason whatsoever, (b) the occurrence or
continuance of an Event of Default, (c) any adverse change in the condition
(financial or otherwise) of any Borrower or any other Person, (d) any breach of
this Agreement by any Borrower or any Lender or any other Person, or (e) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing.
(h) Notwithstanding anything to the contrary contained
elsewhere in this Agreement, upon any purchase of participations as required
above, each RL Lender which has purchased such participations shall be entitled
to receive from the relevant Borrowers any increased costs and indemnities
(including, without limitation, pursuant to Sections 1.11, 1.12, 1.16, 2.06 and
4.04) directly from the Borrowers to the same extent as if it were the direct
Lender as opposed to a participant therein, which increased costs shall be
calculated without regard to Section 1.13, Section 13.04(a) or the last
sentence of Section 13.04(b). The Borrowers acknowledge and agree that, upon
the occurrence of a Sharing Event and after giving effect to the requirements
of this Section 1.17, increased Taxes may be owing by them pursuant to Section
4.04, which Taxes shall be paid (to the extent provided in Section 4.04) by the
respective Borrowers, without any claim that the increased Taxes are not
payable because same resulted from the participations effected as otherwise
required by this Section 1.17.
1.18 Special Provisions Applicable to the Total Canadian Dollar
Revolving Loan Sub-Commitment. (a) Notwithstanding anything to the contrary
contained in this Agreement, the parties hereto agree that (i) the Total
Canadian Dollar Revolving Loan Sub-Commitment, shall be fixed on a quarterly
basis in accordance with this Section; (ii) in no event shall the Total
Canadian Dollar Revolving Loan Sub-Commitment exceed the sum of the Alternate
Currency Revolving Loan Sub-Commitments of the various Alternate Currency
Lenders relating to Canadian Dollars as then in effect (after giving effect to
any reductions to such Alternate Currency Revolving Loan Sub-Commitments from
time to time, including pursuant to Sections 1.17, 3.02, 3.03 and/or 10); (iii)
in no event shall the Canadian Dollar Revolving Loan Sub-Commitment for any
Alternate Currency Lender exceed the amount set forth opposite such Alternate
Currency Lender's name in Schedule I-B directly below the column entitled
"Canadian Dollar Revolving Loan Sub-Commitment," as the same may be reduced
from time to time pursuant to Sections 1.17, 3.02, 3.03 and/or 10 or as the
same may be further adjusted from time to time as a result of assignments to or
from such Lender pursuant to Section 1.14 or 13.04(b); (iv) at no time shall
any Borrower be permitted to request an extension of credit pursuant to the
Total Revolving Loan Commitment (whether in the form of Revolving Loans or
Swingline Loans or Competitive Bid Loans or Letter of Credit Outstandings) and
no such credit shall be made available if, after giving effect thereto, the sum
of the aggregate principal amount (taking the Dollar Equivalent of the
principal amount of Alternate Currency Revolving Loans made available in
currencies other than Canadian Dollars) of outstanding Revolving Loans
(excluding for this purpose Canadian Dollar Revolving Loans), Swingline Loans
and Competitive Bid Loans and the amount of Letter of Credit Outstandings at
such time would exceed an amount equal to the Total Revolving Loan Commitment
as then in effect less the Total Canadian Dollar Revolving Loan Sub-Commitment
as then in effect; (v) at no time shall any Alternate Currency Borrower be
permitted to request an extension of credit in the form of Canadian Dollar
Revolving Loans if, after giving effect thereto, the aggregate principal (and
Face Amount, as applicable) of outstanding Canadian Dollar Revolving Loans (for
this
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purpose, using the Dollar Equivalent of the principal and/or Face Amount, as
appropriate, of Canadian Dollar Revolving Loans) would at any time exceed the
Total Canadian Dollar Revolving Loan Sub-Commitment; and (vi) the Canadian
Dollar Revolving Loan Sub-Commitment for any Alternate Currency Lender at any
time shall be an amount equal to its pro rata share of the Total Canadian
Dollar Revolving Loan Sub-Commitment at such time determined on the basis of
the Alternate Currency RL Percentages of the various Lenders in respect of
Canadian Dollars. At all times from and after the date of this Agreement until
an adjustment is made in accordance with this Section, the Total Canadian
Dollar Revolving Loan Sub-Commitment shall be U.S. $0.
(b) The Corporation, not more than 30 days and not less
than 5 Business Days prior to the last day of each calendar quarter, shall give
written notice to the Paying Agent either (x) requesting an adjustment
effective as of the first Business Day of the immediately following calendar
quarter (each such date an "Adjustment Date") to the amount of the Total
Canadian Dollar Revolving Loan Sub-Commitment; or (y) confirming that there
will be no adjustments to the amount available under the Total Canadian Dollar
Revolving Loan Sub-Commitment; provided that (i) no reduction to the amount of
the Total Canadian Dollar Revolving Loan Sub-Commitment may be made if, after
giving effect to any such reduction, the Total Canadian Dollar Revolving Loan
Sub-Commitment would be less than the sum of the aggregate Face Amount of all
Bankers' Acceptance Loans and the principal amount of all Canadian Prime Rate
Loans (for this purpose, using the Dollar Equivalent of the Face Amounts or
principal amounts thereof) then outstanding (other than any such Canadian
Dollar Revolving Loans which will be repaid in full on or before the respective
Adjustment Date); and (ii) the failure by the Corporation to deliver any such
written notice (or the delivery by the Corporation of any such notice which
does not comply with the requirements contained in this Section) to the Paying
Agent within the period required above will be deemed to be delivery by the
Corporation to the Paying Agent of a written notice that there will be no
adjustment to the Total Canadian Dollar Revolving Loan Sub-Commitment. If any
adjustment is made on an Adjustment Date as described in this Section, then on
the respective Adjustment Date all repayments requested by this Section and
Section 4.02(a) shall be made on such date to the extent required as a result
of such adjustments and in manner provided in Section 4.02.
(c) In connection with any loans and/or repayments made
as a result of adjustments to the Total Canadian Dollar Revolving Loan
Sub-Commitment and the Canadian Dollar Revolving Loan Sub-Commitment for any
Alternate Currency Lender as requested above, then, so long as arrangements
satisfactory to the Paying Agent are made for the repayment of all amounts
which will be due on the respective Adjustment Date as a result thereof, loans
shall be permitted to be requested by the Borrowers as a result of any change
in the amount of the Total Canadian Dollar Revolving Loan Sub-Commitments on
such date (subject to satisfaction of the other terms and conditions of this
Agreements) so long as arrangements satisfactory to the Paying Agent are made
so that, by the time required by Section 4.03, all payments will be made by the
Borrowers on such Adjustment Date as a result of any change in the amount of
the Total Canadian Dollar Revolving Loan Sub-Commitment, on such date. It is
understood and agreed that none of the Administrative Agents nor the Paying
Agent shall have any liability to any Lenders if the payments contemplated
above in this Section are not actually made on the Adjustment Date, and that
any failure to make the payments required to be made on an Adjustment Date
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pursuant to this Section or Section 4.02(a) shall constitute an Event of
Default in accordance with the terms of Section 10.01.
SECTION 2. Letters of Credit.
2.01 Letters of Credit. (a) Subject to and upon the terms
and conditions set forth herein, any Dollar Revolving Loan Borrower may request
that any Issuing Bank issue, at any time and from time to time on and after the
Initial Borrowing Date and prior to the tenth Business Day prior to the
Revolving Loan Maturity Date (or the 30th day prior to the Revolving Loan
Maturity Date in the case of Trade Letters of Credit), for the joint and
several account of such Dollar Revolving Loan Borrower and for the benefit of
(x) any holder (or any trustee, agent or other similar representative for any
such holders) of L/C Supportable Obligations of such Dollar Revolving Loan
Borrower or any of its or their Subsidiaries, an irrevocable sight standby
letter of credit, in a form customarily used by such Issuing Bank or in such
other form as has been approved by such Issuing Bank (each such standby letter
of credit, a "Standby Letter of Credit") in support of such L/C Supportable
Obligations and (y) sellers of goods, materials and services used in the
ordinary course of business of such Dollar Revolving Loan Borrower or any of
its or their Subsidiaries an irrevocable sight commercial letter of credit in a
form customarily used by such Issuing Bank or in such other form as has been
approved by such Issuing Bank (each such commercial letter of credit, a "Trade
Letter of Credit", and each such Trade Letter of Credit and each Standby Letter
of Credit, a "Letter of Credit") in support of commercial transactions of such
Dollar Revolving Loan Borrower and its or their Subsidiaries.
(b) Each Issuing Bank hereby agrees that it will (subject
to the terms and conditions contained herein), at any time and from time to
time on and after the Initial Borrowing Date and prior to the tenth Business
Day prior to the Revolving Loan Maturity Date (or the 30th day prior to the
Revolving Loan Maturity Date in the case of Trade Letters of Credit), following
its receipt of the respective Letter of Credit Request, issue for the joint and
several account of the respective Dollar Revolving Loan Borrower, subject to
the terms and conditions of this Agreement, one or more Letters of Credit (x)
in the case of Standby Letters of Credit, in support of such L/C Supportable
Obligations of the respective Dollar Revolving Loan Borrower or any of its or
their Subsidiaries as are permitted to remain outstanding without giving rise
to a Default or an Event of Default and (y) in the case of Trade Letters of
Credit, in support of sellers of goods or materials used in the ordinary course
of business of the respective Dollar Revolving Loan Borrower or any of its or
their Subsidiaries as referenced in Section 2.01(a), provided that the
respective Issuing Bank shall be under no obligation to issue any Letter of
Credit of the types described above if at the time of such issuance:
(i) any order, judgment or decree of any governmental
authority or arbitrator shall purport by its terms to enjoin or
restrain such Issuing Bank from issuing such Letter of Credit or any
requirement of law applicable to such Issuing Bank or any request or
directive (whether or not having the force of law) from any
governmental authority with jurisdiction over such Issuing Bank shall
prohibit, or request that such Issuing Bank refrain from, the issuance
of letters of credit generally or such Letter of Credit in particular
or shall impose upon such Issuing Bank with respect to such Letter of
Credit any restriction or reserve or capital requirement (for which
such Issuing Bank is not otherwise compensated)
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not in effect on the date hereof, or any unreimbursed loss, cost or
expense which was not applicable, in effect or known to such Issuing
Bank as of the date hereof and which such Issuing Bank reasonably and
in good xxxxx xxxxx material to it; or
(ii) such Issuing Bank shall have received notice from the
Paying Agent at the direction of the Required Lenders prior to the
issuance of such Letter of Credit of the type described in the second
sentence of Section 2.03(b).
2.02 Maximum Letter of Credit Outstandings; Final Maturities;
etc. (a) Notwithstanding anything to the contrary contained in this Agreement,
(i) no Letter of Credit shall be issued the Stated Amount of which, when added
to the Letter of Credit Outstandings at such time, would exceed $100,000,000,
(ii) no Letter of Credit shall be issued if, after giving effect thereto, (x)
the Revolving Credit Exposure of any Lender would exceed its Revolving Loan
Commitment as then in effect or (y) the Aggregate Revolving Credit Exposure
would exceed the Total Revolving Loan Commitment as then in effect, (iii) each
Letter of Credit shall by its terms terminate (A) in the case of Standby
Letters of Credit, on or before the earlier of (x) the date which occurs 12
months after the date of the issuance thereof (although any such Standby Letter
of Credit may be extendible for successive periods of up to 12 months, but not
beyond the tenth Business Day prior to the Revolving Loan Maturity Date, on
terms acceptable to the Issuing Bank thereof) and (y) the tenth Business Day
prior to the Revolving Loan Maturity Date and (B) in the case of Trade Letters
of Credit, on or before the earlier of (x) the date which occurs 180 days after
the date of issuance thereof and (y) 30 days prior to the Revolving Loan
Maturity Date, (iv) each Letter of Credit shall be denominated in Dollars and
(v) the Stated Amount of each Letter of Credit shall be no less than
$1,000,000, or such lesser amount as is acceptable to the respective Issuing
Bank.
(b) Notwithstanding the foregoing, in the event a Lender
Default exists, the Issuing Bank shall not be required to issue any Letters of
Credit unless the Issuing Bank has entered into arrangements satisfactory to it
and the Parent Companies to eliminate the Issuing Bank's risk with respect to
the participation in Letters of Credit of the Defaulting Lender or Lenders,
including by cash collateralizing such Defaulting Lender's or Lenders' RL
Percentage of the Letter of Credit Outstandings.
2.03 Letter of Credit Requests; Notices of Issuance. (a)
Whenever it desires that a Letter of Credit be issued for its account, the
respective Dollar Revolving Loan Borrower shall give the Paying Agent and the
respective Issuing Bank written notice thereof prior to 1:00 P.M. (New York
time) at least five Business Days' (or such shorter period as is acceptable to
the respective Issuing Bank) prior to the proposed date of issuance (which
shall be a Business Day). Each notice shall be in the form of Exhibit D (each
a "Letter of Credit Request").
(b) The making of each Letter of Credit Request shall be
deemed to be a representation and warranty by the respective Dollar Revolving
Loan Borrower that (i) such Letter of Credit may be issued in accordance with,
and will not violate the requirements of, Section 2.02 and (ii) all of the
applicable conditions set forth in Sections 5 and 6 shall be met at the time of
such issuance. Unless the respective Issuing Bank has received notice from the
Paying Agent at the direction of the Required Lenders before it issues a Letter
of Credit that one or more of the
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conditions specified in Section 5 are not satisfied on the Initial Borrowing
Date or Section 6 are not then satisfied, or that the issuance of such Letter
of Credit would violate Section 2.02, then such Issuing Bank may issue the
requested Letter of Credit for the account of the respective Dollar Revolving
Loan Borrower in accordance with such Issuing Bank's usual and customary
practices. Upon the issuance of or amendment to any Standby Letter of Credit,
the respective Issuing Bank shall promptly notify the Paying Agent (and the
Paying Agent shall promptly forward such notice to the RL Lenders) and the
respective Dollar Revolving Loan Borrower of such issuance or amendment, and
such notification shall be accompanied by a copy of the issued Standby Letter
of Credit or amendment thereto. For Trade Letters of Credit on which the
Issuing Bank is other than the Paying Agent, the Issuing Bank will send to the
Paying Agent by facsimile transmission, promptly on the first Business Day of
each week and on each Quarterly Payment Date, the daily aggregate Stated Amount
of Trade Letters of Credit issued by such Issuing Bank and outstanding during
the preceding week or quarterly period, as the case may be. The Paying Agent
shall deliver to each RL Lender, after each calendar month end and upon each
payment of the Letter of Credit Fee, a report setting forth for the relevant
period the daily aggregate Stated Amount of all outstanding Trade Letters of
Credit during such period.
2.04 Letter of Credit Participations. (a) Immediately upon
the issuance by the respective Issuing Bank of any Letter of Credit, such
Issuing Bank shall be deemed to have sold and transferred to each RL Lender
(other than such Issuing Bank) (each such Lender with respect to any Letter of
Credit, in its capacity under this Section 2.04, a "Participant"), and each
such Participant shall be deemed irrevocably and unconditionally to have
purchased and received from such Issuing Bank, without recourse or warranty, an
undivided interest and participation, in a percentage equal to such
Participant's Dollar Percentage, in such Letter of Credit, each drawing or
payment made thereunder and the obligations of the respective Dollar Revolving
Loan Borrower under this Agreement with respect thereto, and any security
therefor or guaranty pertaining thereto (although Letter of Credit Fees shall
be paid directly to the Paying Agent for the ratable account of the RL Lenders
based on their Dollar Percentages as provided in Section 3.01(c) and the
Participants shall have no right to receive any portion of any Facing Fees);
provided that, upon the occurrence of a Sharing Event, the participations
described above shall be automatically adjusted so that each RL Lender shall
have a participation in all then outstanding Letters of Credit, and related
obligations as described above, in a percentage equal to its RL Percentage
(which adjustments shall occur concurrently with the adjustments described in
Section 1.17). Upon any change in the Revolving Loan Commitments or Dollar
Percentages of the RL Lenders pursuant to this Agreement (or in the
circumstances provided in the proviso to the immediately preceding sentence,
the RL Percentages of the RL Lenders pursuant to this Agreement), it is hereby
agreed that, with respect to all outstanding Letters of Credit and Unpaid
Drawings, there shall be an automatic adjustment to the participations pursuant
to this Section 2.04 to reflect the new Dollar Percentages or, in the
circumstances described in the proviso to the immediately preceding sentence,
the RL Percentages of the various RL Lenders.
(b) In determining whether to pay under any Letter of
Credit, the respective Issuing Bank shall have no obligation relative to the
Participants or any other Lenders other than to confirm that any documents
required to be delivered under such Letter of Credit appear to have been
delivered and that they appear to substantially comply on their face with the
requirements of such Letter of Credit. Any action taken or omitted to be taken
by any Issuing Bank under or in
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connection with any Letter of Credit if taken or omitted in the absence of
gross negligence or willful misconduct (as finally determined by a court of
competent jurisdiction), shall not create for such Issuing Bank any resulting
liability to the respective Dollar Revolving Loan Borrower, any other Credit
Party, any Lender or any other Person.
(c) If any Issuing Bank makes any payment under any
Letter of Credit and the respective Dollar Revolving Loan Borrower shall not
have reimbursed such amount in full to such Issuing Bank pursuant to Section
2.05(a), such Issuing Bank shall promptly notify the Paying Agent, and the
Paying Agent shall promptly notify each Participant of such failure, and each
Participant shall promptly and unconditionally pay to the Paying Agent for the
benefit of such Issuing Bank the amount of such Participant's Dollar Percentage
(or, after the occurrence of a Sharing Event, its RL Percentage) of such
unreimbursed payment in Dollars and in same day funds. If the Paying Agent so
notifies, prior to 11:00 A.M. (New York time) on any Business Day, any
Participant required to fund a payment under a Letter of Credit, such
Participant shall make available to the Paying Agent for the benefit of such
Issuing Bank, in Dollars, such Participant's Dollar Percentage (or, after the
occurrence of a Sharing Event, its RL Percentage) of the amount of such payment
on such Business Day in same day funds; provided, however, that no Participant
shall be obligated to pay to the Paying Agent for the benefit of such Issuing
Bank its Dollar Percentage (or, after the occurrence of a Sharing Event, its RL
Percentage) of such unreimbursed amount for any wrongful payment made by such
Issuing Bank under a Letter of Credit issued by it as a result of acts or
omissions constituting willful misconduct or gross negligence on the part of
such Issuing Bank (as finally determined by a court of competent jurisdiction).
If and to the extent such Participant shall not have so made its Dollar
Percentage (or, after the occurrence of a Sharing Event, its RL Percentage) of
the amount of such payment available to the Paying Agent for the benefit of
such Issuing Bank, such Participant agrees to pay to the Paying Agent for the
benefit of such Issuing Bank, forthwith on demand such amount, together with
interest thereon, for each day from such date until the date such amount is
paid to the Paying Agent for the benefit of such Issuing Bank at the overnight
Federal Funds Rate for the first three days and at the interest rate applicable
to Dollar Revolving Loans maintained as Base Rate Loans hereunder for each day
thereafter. The failure of any Participant to make available to such Issuing
Bank its Dollar Percentage (or, after the occurrence of a Sharing Event, its RL
Percentage) of any payment under any Letter of Credit shall not relieve any
other Participant of its obligation hereunder to make available to such Issuing
Bank its Dollar Percentage (or, after the occurrence of a Sharing Event, its RL
Percentage) of any unreimbursed payment with respect to a Letter of Credit on
the date required, as specified above, but no Participant shall be responsible
for the failure of any other Participant to make available to the Paying Agent
for the benefit of such Issuing Bank such other Participant's Dollar Percentage
(or, after the occurrence of a Sharing Event, its RL Percentage) of any such
payment.
(d) Whenever any Issuing Bank receives a payment of a
reimbursement obligation as to which it has received any payments from the
Participants pursuant to clause (c) above, such Issuing Bank shall pay to the
Paying Agent for the benefit of each Participant which has paid its Dollar
Percentage (or, after the occurrence of a Sharing Event, its RL Percentage)
thereof, in Dollars and in same day funds, an amount equal to such
Participant's share (based upon the proportionate aggregate amount originally
funded by such Participant to the
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aggregate amount funded by all Participants) of the principal amount of such
reimbursement obligation and interest thereon accruing after the purchase of
the respective participations.
(e) Upon the request of any Participant, each Issuing
Bank shall furnish to such Participant copies of any Letter of Credit issued by
it and such other documentation as may reasonably be requested by such
Participant.
(f) The obligations of the Participants to make payments
to the Paying Agent for the benefit of each Issuing Bank with respect to
Letters of Credit issued by it shall be irrevocable and not subject to any
qualification or exception whatsoever (except as otherwise provided in the
proviso to the second sentence of Section 2.04(c)) and shall be made in
accordance with the terms and conditions of this Agreement under all
circumstances, including, without limitation, any of the following
circumstances:
(i) any lack of validity or enforceability of this Agreement
or any of the other Credit Documents;
(ii) the existence of any claim, setoff, defense or other right
which any Credit Party or any of its Subsidiaries or Affiliates may
have at any time against a beneficiary named in a Letter of Credit,
any transferee of any Letter of Credit (or any Person for whom any
such transferee may be acting), any Agent, any Issuing Bank, any
Participant, or any other Person, whether in connection with this
Agreement, any Letter of Credit, the transactions contemplated herein
or any unrelated transactions (including any underlying transaction
between any Credit Party or any Subsidiary or Affiliate of any Credit
Party and the beneficiary named in any such Letter of Credit);
(iii) any draft, certificate or any other document presented
under any Letter of Credit proving to be forged, fraudulent, invalid
or insufficient in any respect or any statement therein being untrue
or inaccurate in any respect;
(iv) the surrender or impairment of any security for the
performance or observance of any of the terms of any of the Credit
Documents; or
(v) the occurrence of any Default or Event of Default.
2.05 Agreement to Repay Letter of Credit Drawings. (a) The
respective Dollar Revolving Loan Borrower hereby agrees to reimburse the
respective Issuing Bank, by making payment in Dollars and in immediately
available funds directly to the Paying Agent at the Payment Office for the
benefit of such Issuing Bank, for any payment or disbursement made by such
Issuing Bank under any Letter of Credit issued by it (with each such amount so
paid, until reimbursed, an "Unpaid Drawing"), immediately after, and in any
event on the date of, such payment or disbursement, with interest on the amount
so paid or disbursed by such Issuing Bank, to the extent not reimbursed prior
to 2:00 P.M. (New York time) on the date of such payment or disbursement, from
and including the date paid or disbursed to but excluding the date such Issuing
Bank was reimbursed by the respective Dollar Revolving Loan Borrower therefor
at a rate per annum which shall be the Base Rate in effect from time to time
plus the Applicable Margin for
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40
Dollar Revolving Loans maintained as Base Rate Loans; provided, however, to the
extent such amounts are not reimbursed prior to 12:00 Noon (New York time) on
the third Business Day following the receipt of notice of such payment or
disbursement or upon the occurrence of a Default or an Event of Default under
Section 10.05, interest shall thereafter accrue on the amounts so paid or
disbursed by such Issuing Bank (and until reimbursed by the respective Dollar
Revolving Loan Borrower) at a rate per annum which shall be the Base Rate in
effect from time to time plus the Applicable Margin for Dollar Revolving Loans
maintained as Base Rate Loans plus 2%, in each such case, with interest to be
payable on demand. The respective Issuing Bank shall give the respective
Dollar Revolving Loan Borrower and the Paying Agent prompt written notice of
each Drawing under any Letter of Credit, provided that the failure to give any
such notice shall in no way affect, impair or diminish the respective Dollar
Revolving Loan Borrower's obligations hereunder.
(b) The obligations of the respective Dollar Revolving
Loan Borrower under this Section 2.05 to reimburse the respective Issuing Bank
with respect to Unpaid Drawings (including, in each case, interest thereon)
shall be absolute and unconditional under any and all circumstances and
irrespective of any setoff, counterclaim or defense to payment which the
respective Dollar Revolving Loan Borrower may have or have had against any
Lender (including in its capacity as issuer of the Letter of Credit or as
Participant), including, without limitation, any defense based upon the failure
of any drawing under a Letter of Credit (each a "Drawing") to conform to the
terms of the Letter of Credit or any nonapplication or misapplication by the
beneficiary of the proceeds of such Drawing; provided that the respective
Issuing Bank shall be responsible for any damages (excluding consequential
damages) to the respective Dollar Revolving Loan Borrower for its gross
negligence or willful misconduct (as finally determined by a court of competent
jurisdiction) in connection with drawings made under a Letter of Credit which
did not comply or conform to the terms of the respective Letter of Credit.
2.06 Increased Costs. If at any time after the date of this
Agreement, the introduction of or any change in any applicable law, rule,
regulation, order, guideline or request or in the interpretation or
administration thereof by any governmental authority charged with the
interpretation or administration thereof, or compliance by any Issuing Bank or
any Participant with any request or directive by any such authority (whether or
not having the force of law), shall either (i) impose, modify or make
applicable any reserve, deposit, capital adequacy or similar requirement
against letters of credit issued by any Issuing Bank or participated in by any
Participant, or (ii) impose on any Issuing Bank or any Participant any other
conditions relating, directly or indirectly, to this Agreement; and the result
of any of the foregoing is to increase the cost to any Issuing Bank or any
Participant of issuing, maintaining or participating in any Letter of Credit,
or reduce the amount of any sum received or receivable by any Issuing Bank or
any Participant hereunder or reduce the rate of return on its capital with
respect to Letters of Credit (except for changes in the rate of tax on, or
determined by reference to, the net income or profits or franchise taxes based
on net income of such Issuing Bank or such Participant pursuant to the laws of
the jurisdiction in which it is organized or in which its principal office or
applicable lending office is located or any subdivision thereof or therein),
then, upon written demand to the respective Dollar Revolving Loan Borrower by
such Issuing Bank or any Participant (a copy of which certificate shall be sent
by such Issuing Bank or such Participant to the Paying Agent), the respective
Dollar Revolving Loan Borrower shall pay to such Issuing Bank or such
Participant such additional
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amount or amounts as will compensate such Lender for such increased cost or
reduction in the amount receivable or reduction on the rate of return on its
capital. Any Issuing Bank or any Participant, upon determining that any
additional amounts will be payable pursuant to this Section 2.06, will give
prompt written notice thereof to the respective Dollar Revolving Loan Borrower
which notice shall include a certificate submitted to the respective Dollar
Revolving Loan Borrower by such Issuing Bank or such Participant (a copy of
which certificate shall be sent by such Issuing Bank or such Participant to the
Paying Agent), setting forth in reasonable detail the basis for the calculation
of such additional amount or amounts necessary to compensate such Issuing Bank
or such Participant. The certificate required to be delivered pursuant to this
Section 2.06 shall, absent manifest error, be final and conclusive and binding
on the respective Dollar Revolving Loan Borrower.
SECTION 3. Commitment Commission; Fees; Reductions of
Commitment.
3.01 Fees. (a) The Dollar Revolving Loan Borrowers jointly
and severally agree to pay to the Paying Agent in Dollars for distribution to
each Non-Defaulting Lender with a Revolving Loan Commitment a commitment
commission (the "Commitment Commission") for the period from and including the
Effective Date to but excluding the Revolving Loan Maturity Date (or such
earlier date as the Total Revolving Loan Commitment shall have been
terminated), computed at a rate per annum equal to the Applicable Commitment
Commission Percentage (as in effect from time to time) on the daily average
Unutilized Revolving Loan Commitment of such Lender. Accrued Commitment
Commission shall be due and payable in arrears on each F&I Payment Date and on
the Revolving Loan Maturity Date or such earlier date upon which the Total
Revolving Loan Commitment is terminated.
(b) The respective Dollar Revolving Loan Borrower agrees
to pay to the Paying Agent for distribution to each Non-Defaulting Lender with
a Revolving Loan Commitment (based on their respective Dollar Percentages or,
for periods from and after the occurrence of a Sharing Event, their respective
RL Percentages) in Dollars, a fee in respect of each Letter of Credit issued
for the account of such Dollar Revolving Loan Borrower hereunder (the "Letter
of Credit Fee"), in each case for the period from and including the date of
issuance of the respective Letter of Credit to and including the date of
termination of such Letter of Credit (or, in the case of a Trade Letter of
Credit, the date of the stated expiration thereof), computed at a rate per
annum equal to the Applicable Margin for Revolving Loans maintained as
Eurodollar Loans (as in effect from time to time) on the daily average Stated
Amount of such Letter of Credit. Accrued Letter of Credit Fees shall be due and
payable in arrears on each F&I Payment Date and on the Revolving Loan Maturity
Date or such earlier date upon which the Total Revolving Loan Commitment is
terminated.
(c) The respective Dollar Revolving Loan Borrower agrees
to pay to each Issuing Bank, for its own account, in Dollars, a facing fee in
respect of each Letter of Credit issued for the account of such Dollar
Revolving Loan Borrower by such Issuing Bank (the "Facing Fee"), for the period
from and including the date of issuance of such Letter of Credit to and
including the date of the termination of such Letter of Credit (or, in the case
of a Trade Letter of Credit, the date of stated expiration thereof), computed
at a rate equal to 1/4 of 1% per annum of the daily average Stated Amount of
such Letter of Credit; provided that in no event shall the
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annual Facing Fee with respect to any Letter of Credit be less than $500.
Accrued Facing Fees shall be due and payable in arrears on each F&I Payment
Date and on the Revolving Loan Maturity Date or such earlier date upon which
the Total Revolving Loan Commitment is terminated.
(d) The respective Dollar Revolving Loan Borrower shall
pay, upon each payment under, issuance of, or amendment to, any Letter of
Credit, such amount as shall at the time of such event be the administrative
charge and the reasonable expenses which the applicable Issuing Bank is
generally imposing for payment under, issuance of, or amendment to, Letters of
Credit issued by it.
(e) At the time of the incurrence of each Bankers'
Acceptance Loan, Acceptance Fees shall be paid by the respective Alternate
Currency Revolving Loan Borrower as required by, and in accordance with, clause
(g) of Schedule III.
(f) The Borrowers shall pay to the Agents, for their own
accounts, such other fees as have been agreed to in writing by the Borrowers
and the Agents.
3.02 Voluntary Termination or Reduction of Total Unutilized
Revolving Loan Commitment. Upon at least three Business Days' prior notice to
the Paying Agent at the Notice Office (which notice the Paying Agent shall
promptly transmit to each of the Lenders), the Corporation shall have the
right, at any time or from time to time, without premium or penalty, to
terminate or partially reduce the Total Unutilized Revolving Loan Commitment;
provided that (x) any partial reduction pursuant to this Section 3.02 shall be
in an amount of at least $5,000,000 or, if greater, in integral multiples of
$5,000,000 thereof. Each reduction to the Total Unutilized Revolving Loan
Commitment pursuant to this Section 3.02 shall apply to reduce the Revolving
Loan Commitments of the various RL Lenders pro rata based on their respective
RL Percentages. At the time of each reduction to the Revolving Loan Commitment
of any Lender pursuant to this Section 3.02, the Corporation shall specify the
amount of such reduction to apply to the various Alternate Currency Revolving
Loan Sub-Commitments of such Lender and to the Non-Alternate Currency Revolving
Loan Sub-Commitment of such Lender (the sum of which must equal the reduction
to the Revolving Loan Commitment of such Lender); provided that all Lenders
with Alternate Currency Revolving Loan Sub-Commitments relating to a given
Alternate Currency shall be treated in a consistent fashion (i.e., with no
reductions, or with proportionate reductions, to their respective Alternate
Currency Revolving Loan Sub-Commitments) at the time of any reduction to the
Total Unutilized Revolving Loan Commitment pursuant to this Section 3.02. In
the absence of a designation by the Corporation pursuant to this Section 3.02,
the amount of any reduction to the Revolving Loan Commitment of any Lender
pursuant to this Section 3.02 shall apply (i) first, to reduce the
Non-Alternate Currency Revolving Loan Sub-Commitment of the respective Lender
and (ii) second, to the extent in excess thereof, to reduce the Alternate
Currency Revolving Loan Sub-Commitments of such Lender in each case on a pro
rata basis.
3.03 Mandatory Reduction of Commitments. (a) The Total
Commitment (and the Tranche I Term Loan Commitment, the Tranche II Term Loan
Commitment, the Revolving Loan Commitment, each Alternate Currency Revolving
Loan Sub-Commitment and the Non-Alternate Currency Revolving Loan
Sub-Commitment of each Lender) shall terminate in their
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entirety on March 15, 1998 unless the Initial Borrowing Date has occurred on or
before such date.
(b) In addition to any other mandatory commitment
reductions pursuant to this Section 3.03, the Total Tranche I Term Loan
Commitment shall (i) terminate in its entirety (to the extent not theretofore
terminated) on the Initial Borrowing Date (after giving effect to the making of
Tranche I Term Loans on such date) and (ii) prior to the termination of the
Total Tranche I Term Loan Commitment as provided in preceding clause (i), be
reduced from time to time to the extent required by Section 4.02.
(c) In addition to any other mandatory commitment
reductions pursuant to this Section 3.03, the Total Tranche II Term Loan
Commitment shall (i) terminate in its entirety (to the extent not theretofore
terminated) on the Initial Borrowing Date (after giving effect to the making of
Tranche II Term Loans on such date) and (ii) prior to the termination of the
Total Tranche II Term Loan Commitment as provided in preceding clause (i), be
reduced from time to time to the extent required by Section 4.02.
(d) Each reduction to the Total Tranche I Term Loan
Commitment, the Total Tranche II Term Loan Commitment and the Total Revolving
Loan Commitment pursuant to this Section 3.03 (or pursuant to Section 4.02)
shall be applied proportionately to reduce the Tranche I Term Loan Commitment,
the Tranche II Term Loan Commitment or the Revolving Loan Commitment, as the
case may be, of each Lender with such a Commitment.
SECTION 4. Prepayments; Payments; Taxes.
4.01 Voluntary Prepayments. Each Borrower shall have the
right to prepay the Loans made to such Borrower, without premium or penalty, in
whole or in part, at any time and from time to time on the following terms and
conditions:
(i) such Borrower shall give the Paying Agent at the Notice
Office written notice (or telephonic notice promptly confirmed in
writing) of (1) its intent to prepay such Loans, (2) whether Tranche I
Term Loans, Tranche II Term Loans, Dollar Revolving Loans, Alternate
Currency Revolving Loans or Swingline Loans shall be prepaid, (3) the
amount of such prepayment and the Types of Loans to be prepaid and (4)
in the case of Euro Rate Loans , the specific Borrowing or Borrowings
pursuant to which made. Such notice shall be given by such Borrower
prior to 12:00 Noon (local time where the respective Payment Office is
located) (x) at least one Business Day prior to the date of such
prepayment in the case of Term Loans, Dollar Revolving Loans
maintained as Base Rate Loans or Canadian Dollar Revolving Loans
maintained as Canadian Prime Rate Loans, (y) on the date of such
prepayment in the case of Swingline Loans and (z) at least one
Business Day prior to the date of such prepayment in the case of Loans
maintained as Euro Rate Loans, which notice (except in the case of
Swingline Loans) the Paying Agent shall promptly transmit to each of
the Lenders with Loans of the respective Tranche and Type;
(ii) each prepayment shall be in an aggregate principal amount
at least equal to the Minimum Borrowing Amount for the applicable
Tranche and Type of Loans, provided
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that if any partial prepayment of Euro Rate Loans made pursuant to any
Borrowing shall reduce the outstanding Euro Rate Loans made pursuant
to such Borrowing to an amount less than the respective Minimum
Borrowing Amount for such Tranche and Type of Loans, then such
Borrowing (x) in the case of Dollar Loans, may not be continued as a
Borrowing of Euro Rate Loans and any election of an Interest Period
with respect thereto shall have no force or effect and (y) in the case
of Alternate Currency Revolving Loans, shall be repaid in full at such
time;
(iii) prepayments of Bankers' Acceptance Loans may not be made
prior to the maturity date of the respective Bankers' Acceptances;
(iv) each prepayment in respect of any Loans made pursuant to a
Borrowing shall be applied pro rata among such Loans, provided that
(x) so long as no Default or Event of Default is then in existence, at
any time when the sum of the aggregate principal amount of Dollar
Revolving Loans, Competitive Bid Loans, Swingline Loans and Letter of
Credit Outstandings exceeds the Total Non-Alternate Currency Revolving
Loan Sub-Commitment (with the amount of such excess being herein
called the "Total Non-Alternate Currency Revolving Loan Sub-
Commitment Excess") , the respective Borrower may, to the extent of
such Total Non-Alternate Currency Revolving Loan Sub-Commitment
Excess, make prepayments of principal of Dollar Revolving Loans to the
Lenders which have, or have Affiliates that have, Alternate Currency
Revolving Loan Sub-Commitments on the basis of their Alternate
Currency Percentages as same relate to a given Alternate Currency
(with the respective Borrower to designate the Borrowing or
Borrowings, or portions thereof, being prepaid), with the intent of
creating availability for subsequent Alternate Currency Revolving
Loans in the respective Alternate Currency and (y) at the respective
Borrower's election in connection with any prepayment pursuant to this
Section 4.01(a), any prepayment in respect of Revolving Loans shall
not be applied to any Revolving Loan of a Defaulting Lender;
(v) each voluntary prepayment of Tranche II Term Loans shall
apply to reduce the then remaining Tranche II Scheduled Repayments on
a pro rata basis (based upon the then remaining principal amounts of
such Tranche II Scheduled Repayments, after giving effect to all prior
reductions thereto);
(vi) each voluntary prepayment of Tranche I Term Loans pursuant
to this Section 4.01 shall apply to reduce the amount of the Tranche I
Scheduled Repayment; and
(vii) no Competitive Bid Loan may be prepaid without the consent
of the Lender that made such Competitive Bid Loan.
4.02 Mandatory Repayments and Commitment Reductions. (a)(i)
On any day on which the Aggregate Revolving Credit Exposure exceeds the Total
Revolving Loan Commitment as then in effect, the Borrowers shall prepay on such
day the principal of outstanding Swingline Loans and, after the Swingline Loans
have been repaid in full, the Revolving Loan Borrowers shall repay the
principal of outstanding Revolving Loans (other than Bankers' Acceptance Loans
where the underlying Bankers' Acceptances have not yet matured) (allocated
between Dollar
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Revolving Loans and Alternate Currency Revolving Loans as the Revolving Loan
Borrowers may elect) in an amount (for this purpose, taking the Dollar
Equivalent of payments in any Alternate Currency made with respect to the
Alternate Currency Loans) equal to such excess. If, after giving effect to the
prepayment of all outstanding Swingline Loans and Revolving Loans (other than
Bankers' Acceptance Loans as referenced in the immediately preceding sentence),
the sum of the outstanding Bankers' Acceptance Loans (for this purpose, using
the Dollar Equivalent of the Face Amounts thereof) , Competitive Bid Loans and
Letter of Credit Outstandings exceeds the Total Revolving Loan Commitment then
in effect, (i) an amount equal to the lesser of such excess and the then
outstanding Face Amount of all Bankers' Acceptances shall be deposited by the
respective Borrower with the Paying Agent as cash collateral for the
obligations of the respective Alternate Currency Revolving Loan Borrower or
Borrowers to the Alternate Currency Lenders (rounded up to the nearest integral
multiple of Cdn.$100,000) in respect of an equivalent Face Amount of
outstanding Bankers' Acceptances accepted by the Alternate Currency Lenders
which shall be paid to and applied by the Alternative Currency Lenders, in
satisfaction of the obligations to the Alternate Currency Lenders of the
respective Alternate Currency Revolving Loan Borrower or Borrowers in respect
of such Banker's Acceptances, on the maturity date thereof, (ii) to the extent
such excess exceeds the amount applied pursuant to preceding clause (i), such
remaining excess or, if less, an amount equal to the then outstanding principal
amount of Competitive Bid Loans shall be paid by the respective Borrowers to
the Paying Agent to be held as cash collateral for the repayment of such
Competitive Bid Loans at maturity and (iii) to the extent such excess exceeds
the amount applied pursuant to preceding clauses (i) and (ii), the respective
Borrowers shall pay to the Paying Agent cash or Cash Equivalents in an amount
equal to the amount of such excess (less the amount applied pursuant to
preceding clauses (i) and (ii)) (up to a maximum amount equal to the Letter of
Credit Outstandings at such time), such cash or Cash Equivalents to be held as
security for all obligations of the respective Borrowers hereunder and under
the other Credit Documents in a cash collateral account (and invested from time
to time in Cash Equivalents selected by the Paying Agent) to be established by
the Paying Agent.
(ii) If on any date the Dollar Equivalent of the aggregate
outstanding principal amount (or Face Amount, as the case may be) of Alternate
Currency Revolving Loans incurred in a given Alternative Currency exceeds the
sum of the Alternate Currency Revolving Loan Sub-Commitments of the various
Alternate Currency Lenders relating to such Alternate Currency as then in
effect (or, if less in the case of Canadian Dollar Revolving Loans, the Total
Canadian Revolving Loan Sub-Commitment as then in effect, after giving effect
to any adjustments pursuant to Section 1.18), the respective Alternate Currency
Revolving Loan Borrowers shall prepay on such day the principal of outstanding
Alternate Currency Revolving Loans (for this purpose, taking the Dollar
Equivalent of payments in any Alternate Currency made with respect to Alternate
Currency Revolving Loans) made in the respective Alternate Currency (other than
Bankers' Acceptance Loans where the underlying Bankers' Acceptances have not
matured) equal to such excess. In the case of Canadian Dollar Revolving Loans,
if after giving effect to the prepayment of all outstanding Canadian Dollar
Revolving Loans (other than Bankers' Acceptance Loans where the underlying
Bankers' Acceptances have not yet matured), the sum of the aggregate Face
Amount of outstanding Bankers' Acceptance Loans (for this purpose, using the
Dollar Equivalent of the Face Amounts thereof) exceeds the sum of the Alternate
Currency Revolving Loan Sub-Commitments of the various Alternate Currency
Lenders relating to Canadian Dollars
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as then in effect (or, if less, the Total Canadian Dollar Revolving Loan
Sub-Commitment as then in effect, after giving effect to any adjustments
pursuant to Section 1.18), an amount equal to such excess shall be deposited by
the respective Alternate Currency Revolving Loan Borrower with the Paying Agent
as cash collateral for the obligations of the respective Alternate Currency
Revolving Loan Borrower or Borrowers to the Alternate Currency Lenders (rounded
up to the nearest integral multiple of Cdn.$100,000) in respect of an
equivalent Face Amount of outstanding Bankers' Acceptances accepted by the
Alternate Currency Lenders which shall be paid to and applied by the
Alternative Currency Lenders, in satisfaction of the obligations to the
Alternate Currency Lenders of the respective Alternate Currency Revolving Loan
Borrower or Borrowers in respect of such Banker's Acceptances, on the maturity
date thereof.
(b)(i) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on the date set forth
below, the Corporate Borrowers shall be required to repay that principal amount
of Tranche I Term Loans, to the extent then outstanding, as is set forth
opposite such date (such repayment, as the same may be reduced as provided in
Sections 4.01 and 4.02(c) through (j), inclusive, the "Tranche I Scheduled
Repayment," and such date, the "Tranche I Scheduled Repayment Date"):
Tranche I
Scheduled Repayment Date Amount
------------------------ ------
Tranche I Maturity Date $1,000,000,000
(ii) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date set forth
below, the Corporate Borrowers shall be required to repay that principal amount
of Tranche II Term Loans, to the extent then outstanding, as is set forth
opposite such date (each such repayment, as the same may be reduced as provided
in Sections 4.01 and 4.02(c) through (j), inclusive, a "Tranche II Scheduled
Repayment," and each such date, a "Tranche II Scheduled Repayment Date"):
Tranche II
Scheduled Repayment Date Amount
------------------------ ------
May 23, 2000 $ 25,000,000
August 23, 2000 $ 25,000,000
November 23, 2000 $ 25,000,000
February 23, 2001 $ 25,000,000
May 23, 2001 $ 50,000,000
August 23, 2001 $ 50,000,000
November 23, 2001 $ 50,000,000
February 23, 2002 $ 50,000,000
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Tranche II
Scheduled Repayment Date Amount
------------------------ ------
May 23, 2002 $ 50,000,000
August 23, 2002 $ 50,000,000
November 23, 2002 $ 50,000,000
Tranche II Maturity Date $550,000,000
(c) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date after the
Effective Date upon which either Parent Company receives any cash proceeds from
any capital contribution or any sale or issuance of its common stock (including
shares of beneficial interest which are substantially equivalent to common
stock) or Perpetual Preferred Stock (other than issuances of common stock
(including shares of beneficial interest which are substantially equivalent to
common stock) the proceeds of which are utilized by the Parent Companies to (x)
satisfy obligations with respect to ITT LSARs, or (y) repurchase outstanding
UBS Shares to the extent permitted by Section 9.03(a)(vi)) an amount (the
"Equity Proceeds Amount") equal to the Applicable Equity Percentage of the Net
Proceeds of such capital contribution or sale or issuance shall be applied in
accordance with the requirements of Sections 4.02(i) and (j).
(d) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date after the
Effective Date upon which either Parent Company or any of its Subsidiaries
receives any cash proceeds from the incurrence by such Parent Company or any of
its Subsidiaries of Indebtedness for borrowed money (other than Indebtedness
for borrowed money permitted to be incurred pursuant to Section 9.04 as such
Section is in effect on the Effective Date) or the issuance or sale of equity
(other than common stock of the Parent Companies and Perpetual Preferred
Stock), an amount equal to the Applicable Debt Percentage of the Net Proceeds
of the respective incurrence of Indebtedness or the respective issuance or sale
of equity shall be applied in accordance with the requirements of Sections
4.02(h) and (j).
(e) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date after the
Effective Date upon which either Parent Company or any of its Subsidiaries
receives cash proceeds from any Asset Sale or any Scheduled Asset Disposition,
or any Subsidiary of the Parent Companies receives cash proceeds from any sale
or issuance of its equity, an amount equal to the Applicable Asset Sale
Percentage of the Net Proceeds therefrom shall be applied in accordance with
the requirements of Sections 4.02(h) and (j); provided that, Net Proceeds
received in respect of Asset Sales made pursuant to, and in accordance with the
requirements of, clause (viii) of Section 9.02 shall not (subject to compliance
with the last two provisos of Section 9.02(viii)) be required to be so applied
on such date so long as no Specified Default, and no Event of Default, then
exists and the Parent Companies deliver a certificate to the Paying Agent on or
prior to such date stating that such Net Proceeds shall be used (or
contractually committed to be used) to purchase assets used or to be used in
the businesses referred to in Section 9.15 within 360 days (or earlier to the
extent required to be so applied pursuant to the terms of any outstanding
Indebtedness) following the date of such Asset Sale (which certificate shall
set forth the estimates of the proceeds to be so expended), provided further,
that (1) if all or any portion of such Net Sale Proceeds not so applied as a
mandatory repayment are
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not so used (or contractually committed to be used) within such 360 day period
(or earlier to the extent required to be so applied pursuant to the terms of
any outstanding Indebtedness), such remaining portion shall be applied on the
last day of such period as provided above in this Section 4.02(e) (without
regard to the first proviso herein) and (2) if all or any portion of such Net
Sale Proceeds are not required to be applied as a mandatory repayment and/or
commitment reduction pursuant to the preceding proviso because such amount is
contractually committed to be used and subsequent to such date such contract is
terminated or expires without such portion being so used, then such remaining
portion shall be applied on the date of such termination or expiration as
provided in this Section 4.02(e) (without regard to the first proviso herein).
(f) In addition to any other mandatory repayments
pursuant to this Section 4.02, on each Excess Cash Payment Date, an amount
equal to the Applicable ECF Percentage of Excess Cash Flow for the relevant
Excess Cash Payment Period shall be applied in accordance with the requirements
of Sections 4.02(h) and (j).
(g) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, within 30 days following
each date after the Effective Date on which either Parent Company or any of its
Subsidiaries receives any proceeds from any Recovery Event, an amount equal to
the Applicable Recovery Event Percentage of the proceeds of such Recovery Event
(net of costs and taxes incurred in connection with such Recovery Event) shall
be applied in accordance with the requirements of Sections 4.02(h) and (j),
provided that so long as no Specified Default, and no Event of Default, then
exists such proceeds shall not be required to be so applied on such date to the
extent that (a) the Parent Companies have delivered a certificate to the
Paying Agent on or prior to such date stating that such proceeds shall be used
(or be contractually committed to be used) to replace or restore any properties
or assets in respect of which such proceeds were paid within 540 days (or
earlier to the extent required to be so applied pursuant to the terms of any
outstanding Indebtedness) following the date of such Recovery Event (which
certificate shall set forth the estimates of the proceeds to be so expended)
and, provided further, that (1) if all or any portion of such proceeds not
required to be applied as a mandatory repayment and/or commitment reduction
pursuant to the preceding proviso are not so used (or contractually committed
to be used) within 540 days (or earlier to the extent required to be so applied
pursuant to the terms of any outstanding Indebtedness) after the date of
receipt of proceeds from the respective Recovery Event, then, such remaining
portion not used shall be applied on the date which is 540 days (or earlier to
the extent required to be so applied pursuant to the terms of any outstanding
Indebtedness) following the date of receipt of proceeds from the respective
Recovery Event in accordance with the requirements of Section 4.02(h) and (j)
and (2) if all or any portion of such proceeds not required to be applied as a
mandatory repayment and/or commitment reduction pursuant to the preceding
proviso because such amount is contractually committed to be used and
subsequent to such date such contract is terminated or expires without such
portion being so used, then such remaining portion shall be applied on the date
of such termination or expiration in accordance with the requirements of
Section 4.02 (h) and (j).
(h) Each amount required to be applied pursuant to this
clause (h) as a result of the requirements of Sections 4.02(d) through (g),
inclusive, and (k) shall be applied (after any conversion by the respective
Borrower of any amounts received in a currency other than the relevant
Applicable Currency or Applicable Currencies, into the respective Applicable
Currency or
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Applicable Currencies): (i) first, to repay the outstanding principal amount
of Tranche I Term Loans (or, if the Initial Borrowing Date has not yet
occurred, to reduce the Total Tranche I Term Loan Commitment), (ii) second, to
the extent in excess thereof, to repay the outstanding principal amount of
Tranche II Term Loans (or, if the Initial Borrowing Date has not yet occurred,
to reduce the Total Tranche II Term Loan Commitment), and (iii) third, to the
extent in excess thereof (except with respect to repayments pursuant to Section
4.02(f)), to repay (without a corresponding commitment reduction) the
outstanding principal amount of Swingline Loans and Revolving Loans other than
Bankers' Acceptance Loans (allocated between Dollar Revolving Loans and
Alternate Currency Revolving Loans as the relevant Borrowers may elect). All
mandatory repayments of Tranche I Term Loans (and the amount of each reduction
to the Total Tranche I Term Loan Commitment) made pursuant to Sections 4.02(d)
through (g), inclusive, shall be applied to reduce the then remaining Tranche I
Scheduled Repayment. All mandatory repayments of Tranche II Term Loans (and
the amount of each reduction to the Total Tranche II Term Loan Commitment) made
pursuant to Section 4.02(e) shall be applied to reduce the then remaining
Tranche II Scheduled Repayments in direct order of maturity. All mandatory
repayments of Tranche II Term Loans (and the amount of each reduction to the
Total Tranche II Term Loan Commitment) made pursuant to Sections 4.02(d), (f)
and (g) shall be applied to reduce the then remaining Tranche II Scheduled
Repayments on a pro rata basis (based upon the then remaining amount of each
Tranche II Scheduled Repayment, after giving effect to all prior reductions
thereto).
(i) Each Equity Proceeds Amount shall be applied (after
any conversion by the respective Borrower of any amounts received in a currency
other than the relevant Applicable Currency or Applicable Currencies, into the
respective Applicable Currency or Applicable Currencies) to repay (without a
corresponding commitment reduction) the outstanding principal amount of
Revolving Loans (allocated between Dollar Revolving Loans and Alternate
Currency Revolving Loans as the Borrowers elect) and Swingline Loans. For the
avoidance of doubt, to the extent any Equity Proceeds Amount required to repay
the principal of then outstanding Revolving Loans and/or Swingline Loans
pursuant to this Section 4.02(i) exceeds the aggregate principal amount of
Revolving Loans and Swingline Loans then outstanding, such excess shall be
retained by the Person that received such cash proceeds to be used for such
Person's and its Subsidiaries working capital and general corporate purposes
(including, without limitation, to finance Permitted Acquisitions).
(j) With respect to each repayment of Loans required by
this Section 4.02, the respective Borrower may designate the Types of Loans of
the respective Tranche which are to be repaid and, in the case of Euro Rate
Loans and Bankers' Acceptance Loans, the specific Borrowing or Borrowings of
the respective Tranche pursuant to which made, provided that: (i) in the case
of repayments of Dollar Loans, repayments of Eurodollar Loans of the respective
Tranche pursuant to this Section 4.02 may only be made on the last day of an
Interest Period applicable thereto unless all Eurodollar Loans of the
respective Tranche with Interest Periods ending on such date of required
repayment and all Base Rate Loans of the respective Tranche have been paid in
full; (ii) if any repayment of Euro Rate Loans made pursuant to a single
Borrowing shall reduce the outstanding Loans made pursuant to such Borrowing to
an amount less than the respective Minimum Borrowing Amount for the respective
Tranche and Type of Loan, such Borrowing (x) in the case of Dollar Loans, shall
be converted at the end of the then current Interest Period into a
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Borrowing of Base Rate Loans and (y) in the case of Alternate Currency
Revolving Loans, shall be repaid in full at the end of the then current
Interest Period; (iii) no repayment of Bankers' Acceptance Loans may be made
prior to the maturity date of the related Bankers' Acceptances; and (iv) each
repayment of any Loans made pursuant to a Borrowing shall be applied pro rata
among such Loans. In the absence of a designation by the respective Borrower
as described in the preceding sentence, the Paying Agent shall, subject to the
above, make such designation in its sole discretion. Notwithstanding the
foregoing provisions of this Section 4.02, if at any time the mandatory
prepayment of Loans pursuant to Sections 4.02(c) through (g) above would
result, after giving effect to the procedures set forth above, in any Borrower
incurring breakage costs under Section 1.12 as a result of Eurodollar Loans
being prepaid other than on the last day of an Interest Period applicable
thereto (the "Affected Eurodollar Loans"), then the respective Borrower may in
its sole discretion initially deposit a portion (up to 100%) of the amounts
that otherwise would have been paid in respect of the Affected Eurodollar Loans
with the Paying Agent (which deposit must be equal in amount to the amount of
Affected Eurodollar Loans not immediately prepaid) to be held as security for
the obligations of such Borrower hereunder pursuant to a cash collateral
agreement (which shall permit investments in Cash Equivalents satisfactory to
the Paying Agent) to be entered into in form and substance reasonably
satisfactory to the Paying Agent, with such cash collateral to be directly
applied upon the first occurrence (or occurrences) thereafter of the last day
of an Interest Period applicable to the relevant Loans that are Eurodollar
Loans (or such earlier date or dates as shall be requested by such Borrower),
to repay an aggregate principal amount of such Loans equal to the Affected
Eurodollar Loans not initially repaid pursuant to this sentence.
Notwithstanding anything to the contrary contained in the immediately preceding
sentence, all amounts deposited as cash collateral pursuant to the immediately
preceding sentence shall be held for the benefit of the Lenders whose Loans
would otherwise have been immediately repaid with the amounts deposited and
upon the taking of any action by the Paying Agent or the Lenders pursuant to
the remedial provisions of Section 10, any amounts held as cash collateral
pursuant to this Section 4.02(j) shall, subject to the requirements of
applicable law, be immediately applied to the relevant Loans.
(k) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date on which a
Borrower or any Subsidiary of a Borrower makes any voluntary or optional
payment or prepayment on or redemption or acquisition for value of (including,
without limitation, by way of depositing with the trustee with respect thereto
or any Person, money or securities before due for the purpose of paying when
due), exchange or purchase, redeem or acquire for value (whether as a result of
a change of control, the consummation of asset sales or otherwise) any Senior
Note (but excluding repayments of Senior Secured Bridge Notes to the extent
made with the net cash proceeds of any issuance of Permanent Senior Notes), an
amount equal to the amount of such payment, prepayment, redemption,
acquisition, exchange, or purchase shall be applied in accordance with the
requirements of Sections 4.02(h) and (j).
(l) Notwithstanding anything to the contrary contained in
this Agreement or in any other Credit Document, (i) all then outstanding
Swingline Loans shall be repaid in full on the Swingline Expiry Date, (ii) all
then outstanding Competitive Bid Loans shall be repaid in full on the
respective Competitive Bid Loan Maturity Date and (iii) all then outstanding
Term Loans and Revolving Loans shall be repaid in full on the respective
Maturity Date.
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4.03 Method and Place of Payment. Except as otherwise
specifically provided herein, all payments under this Agreement or any Note
shall be made to the Paying Agent for the account of the Lender or Lenders
entitled thereto not later than 12:00 Noon (local time in the city in which the
Payment Office for the respective payments is located) on the date when due and
shall be made in (x) Dollars in immediately available funds at the appropriate
Payment Office of the Paying Agent in respect of any obligation of the
Borrowers under this Agreement except as otherwise provided in the immediately
following clause (y) and (y) subject to the provisions of Section 1.17, the
relevant Applicable Currency in immediately available funds at the appropriate
Payment Office of the Paying Agent, if such payment is made in respect of (i)
principal of, the Face Amount of or interest on Alternate Currency Loans, or
(ii) any increased costs, indemnities or other amounts owing with respect to
Alternate Currency Loans (or Commitments relating thereto), in the case of this
clause (ii) to the extent the respective Lender which is charging same
denominates the amounts owing in the relevant Applicable Currency. The Paying
Agent will thereafter cause to be distributed on the same day (if payment was
actually received by the Paying Agent prior to 12:00 Noon (local time in the
city in which such payments are to be made)) like funds relating to the payment
of principal, interest or Fees ratably to the Lenders entitled thereto. Any
payments under this Agreement which are made later than 12:00 Noon (local time
in the city in which such payments are to be made) shall be deemed to have been
made on the next succeeding Business Day. Whenever any payment to be made
hereunder or under any Note shall be stated to be due on a day which is not a
Business Day, the due date thereof shall be extended to the next succeeding
Business Day and, with respect to payments of principal, interest and fees
shall be payable at the applicable rate during such extension.
4.04 Net Payments. (a) All payments made by any Borrower
hereunder or under any Note will be made without setoff, counterclaim or other
defense. Except as provided in Sections 4.04(b) and (c), all such payments
will be made free and clear of, and without deduction or withholding for, any
present or future taxes, levies, imposts, duties, fees, assessments or other
charges of whatever nature now or hereafter imposed by any jurisdiction or by
any political subdivision or taxing authority thereof or therein with respect
to such payments (but excluding, except as provided in the second succeeding
sentence, any tax imposed on or measured by the net income or profits of a
Lender pursuant to the laws of the jurisdiction in which it is organized or the
jurisdiction in which the principal office or applicable lending office of such
Lender is located or any subdivision thereof or therein) and all interest,
penalties or similar liabilities with respect thereto (all such non-excluded
taxes, levies, imposts, duties, fees, assessments or other charges being
referred to collectively as "Taxes"). If any Taxes are so levied or imposed,
the respective Borrower agrees to pay the full amount of such Taxes, and such
additional amounts as may be necessary so that every payment of all amounts due
under this Agreement or under any Note, after withholding or deduction for or
on account of any Taxes, will not be less than the amount provided for herein
or in such Note. If any amounts are payable in respect of Taxes pursuant to
the preceding sentence, the respective Borrower agrees to reimburse each
Lender, upon the written request of such Lender, for the net additional amount
of taxes imposed on or measured by the net income or profits of such Lender
pursuant to the laws of the jurisdiction in which the principal office or
applicable lending office of such Lender is located or under the laws of any
political subdivision or taxing authority of any such jurisdiction in which the
principal office or applicable lending office of such Lender is located and for
any withholding of taxes as such
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Lender shall determine are payable by, or withheld from, such Lender in respect
of such amounts so paid to or on behalf of such Lender pursuant to the
preceding sentence and in respect of any amounts paid to or on behalf of such
Lender pursuant to this sentence. The respective Borrower will furnish to the
Paying Agent within 45 days after the date the payment of any Taxes is due
pursuant to applicable law certified copies of tax receipts evidencing such
payment by the respective Borrower. Each Borrower agrees to indemnify and hold
harmless each Lender, and reimburse such Lender upon its written request, for
the amount of any Taxes so levied or imposed and paid by such Lender.
(b) Each Lender that is not a United States person (as
such term is defined in Section 7701(a)(30) of the Code) agrees to deliver to
the Parent Companies and the Paying Agent on or prior to the Effective Date, or
in the case of a Lender that is an assignee or transferee of an interest under
this Agreement pursuant to Section 1.14 or 13.04 (unless the respective Lender
was already a Lender hereunder immediately prior to such assignment or
transfer), on the date of such assignment or transfer to such Lender, (i) two
accurate and complete original signed copies of Internal Revenue Service Form
4224 or 1001 (or successor forms) certifying to such Lender's entitlement as of
such date to a complete exemption from United States withholding tax with
respect to payments to be made under this Agreement and under any Note, or (ii)
if the Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the
Code and cannot deliver either Internal Revenue Service Form 1001 or 4224
pursuant to clause (i) above, (x) a certificate substantially in the form of
Exhibit E (any such certificate, a "Section 4.04(b)(ii) Certificate") and (y)
two accurate and complete original signed copies of Internal Revenue Service
Form W-8 (or successor form) certifying to such Lender's entitlement to a
complete exemption from United States withholding tax with respect to payments
of interest to be made under this Agreement and under any Note. In addition,
each Lender agrees that from time to time after the Effective Date, when a
lapse in time or change in circumstances renders the previous certification
obsolete or inaccurate in any material respect, it will deliver to the Parent
Companies and the Paying Agent two new accurate and complete original signed
copies of Internal Revenue Service Form 4224 or 1001, or Form W-8 and a Section
4.04(b)(ii) Certificate, as the case may be, and such other forms as may be
required in order to confirm or establish the entitlement of such Lender to a
continued exemption from or reduction in United States withholding tax with
respect to payments under this Agreement and any Note, or it shall immediately
notify the Parent Companies and the Paying Agent of its inability to deliver
any such Form or Certificate in which case such Lender shall not be required to
deliver any such Form or Certificate pursuant to this Section 4.04(b).
Notwithstanding anything to the contrary contained in Section 4.04(a), but
subject to Section 13.04(b) and the immediately succeeding sentence, (x) each
Borrower shall be entitled, to the extent it is required to do so by law, to
deduct or withhold income or similar taxes imposed by the United States (or any
political subdivision or taxing authority thereof or therein) from interest,
fees or other amounts payable hereunder for the account of any Lender which is
not a United States person (as such term is defined in Section 7701(a)(30) of
the Code) for U.S. Federal income tax purposes to the extent that such Lender
has not provided to the Parent Companies U.S. Internal Revenue Service Forms
that establish a complete exemption from such deduction or withholding and (y)
the Borrowers shall not be obligated pursuant to Section 4.04(a) hereof to
gross-up payments to be made to a Lender in respect of income or similar taxes
imposed by the United States if (I) such Lender has not provided to the Parent
Companies the Internal Revenue Service Forms
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required to be provided to the Parent Companies pursuant to this Section
4.04(b) or (II) in the case of a payment, other than interest, to a Lender
described in clause (ii) above, to the extent that such forms do not establish
a complete exemption from withholding of such taxes. Notwithstanding anything
to the contrary contained in the preceding sentence or elsewhere in this
Section 4.04 and except as set forth in Section 13.04(b), each Borrower agrees
to pay additional amounts and to indemnify each Lender in the manner set forth
in Section 4.04(a) (without regard to the identity of the jurisdiction
requiring the deduction or withholding) in respect of any amounts deducted or
withheld by it as described in the immediately preceding sentence as a result
of any changes that are effective after the Effective Date in any applicable
law, treaty, governmental rule, regulation, guideline or order, or in the
interpretation thereof, relating to the deducting or withholding of income or
similar Taxes.
(c) Each Lender shall use reasonable efforts (consistent
with legal and regulatory restrictions and subject to overall policy
considerations of such Lender) to file any certificate or document or to
furnish any information as reasonably requested by the respective Borrower
pursuant to any applicable treaty, law or regulation if the making of such
filing or the furnishing of such information would avoid the need for or
reduce the amount of any additional amounts payable by the respective Borrower
and would not, in the sole discretion of such Lender, be disadvantageous to
such Lender.
SECTION 5. Conditions Precedent to Initial Credit Events.
The obligation of each Lender to make Loans, and the obligation of any Issuing
Bank to issue Letters of Credit, on the Initial Borrowing Date, is subject to
the satisfaction of the following conditions:
5.01 Execution of Agreement; Notes. On or prior to the
Initial Borrowing Date (i) the Effective Date shall have occurred and (ii)
there shall have been delivered to the Paying Agent for the account of each of
the Lenders (subject to Section 1.06(j)) the appropriate Notes executed by the
appropriate Borrower or Borrowers, in each case in the amount, maturity and as
otherwise provided herein.
5.02 Opinions of Counsel. On the Initial Borrowing Date, the
Lead Agents shall have received from (i) Sidley & Austin, special counsel to
the Credit Parties, an opinion addressed to the Lead Agents, the Collateral
Agent and each of the Lenders and dated the Initial Borrowing Date in the form
set forth as Exhibit F-1, (ii) Sidley & Austin, special tax counsel to the
Parent Companies, an opinion addressed to the Lead Agents, the Collateral Agent
and each of the Lenders and dated the Initial Borrowing Date in the form set
forth as Exhibit F-2, (iii) Xxxxxx Xxxxxx & Xxxxxxx, special Nevada counsel to
the Credit Parties, an opinion addressed to the Lead Agents, the Collateral
Agent and each of the Lenders and dated the Initial Borrowing Date in the form
set forth as Exhibit F-3, (iv) Xxxxxx & Xxxxxxxx, special New Jersey counsel to
the Credit Parties, an opinion addressed to the Lead Agents, the Collateral
Agent and each of the Lenders and dated the Initial Borrowing Date in the form
set forth as Exhibit F-4, (v) Xxxxxxx Xxxxxx-Xxxx, Esq., General Counsel of
Xxxxxxx Xxxxx, Inc., an opinion addressed to the Lead Agents, the Collateral
Agent and each of the Lenders and dated the Initial Borrowing Date in the form
set forth as Exhibit F-5, (vi) Sidley & Austin, special Federal Communications
Commission counsel to the Credit Parties, an opinion addressed to the Lead
Agents, the Collateral Agent and each of the Lenders and dated the Initial
Borrowing Date in the form set forth as Exhibit F-6, (vii) Dow,
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Xxxxxx & Xxxxxxxxx XXXX, special Educational counsel to the Credit Parties, an
opinion addressed to the Lead Agents, the Collateral Agent and each of the
Lenders and dated the Initial Borrowing Date in the form set forth as Exhibit
F-7, and (viii) such other special and local counsel as may be required by any
Lead Agent, an opinion addressed to the Lead Agents, the Collateral Agent and
the Lenders and dated the Initial Borrowing Date, and in each case covering
such other matters incident to the transactions contemplated herein as any Lead
Agent may reasonably request.
5.03 Corporate Documents; Proceedings; etc. (a) On the
Initial Borrowing Date, the Lead Agents shall have received a certificate of
each Credit Party, dated the Initial Borrowing Date, signed by an Authorized
Officer of such Credit Party, and attested to by the Secretary or any Assistant
Secretary of such Credit Party, in the form of Exhibit G with appropriate
insertions, together with copies of the declaration of trust, certificate of
incorporation or partnership agreement (or other equivalent organizational
document) and by-laws of such Credit Party and the resolutions of such Credit
Party referred to in such certificate, and the foregoing shall be reasonably
acceptable to the Lead Agents.
(b) All corporate and legal proceedings and all
instruments and agreements in connection with the transactions contemplated by
this Agreement and the other Documents shall be reasonably satisfactory in form
and substance to the Lead Agents and the Required Lenders, and the Lead Agents
shall have received all information and copies of all documents and papers,
including records of corporate proceedings, governmental approvals and good
standing certificates if any, which the Lead Agents reasonably may have
requested in connection therewith, such documents and papers where appropriate
to be certified by proper corporate or governmental authorities.
5.04 Fees, etc. On the Initial Borrowing Date, all costs,
fees and expenses, and all other costs contemplated by this Agreement, due to
the Lead Agents and the Lenders (including, without limitation, legal fees and
expenses) shall have been paid to the extent then due.
5.05 Consummation of Acquisition; Issuance of Intercompany
Mortgage Note; etc. (a) On the Initial Borrowing Date, the Acquisition shall
have been consummated pursuant to the Acquisition Documents and all applicable
laws, and each of the conditions precedent to the consummation of the
Acquisition set forth in the Acquisition Documents shall have been satisfied
and not waived, except with the consent of the Lead Agents, to the satisfaction
of the Lead Agents. On or prior to the Initial Borrowing Date, there shall
have been delivered to the Lead Agents true and correct copies of all
Acquisition Documents, and all of the terms and conditions of such Acquisition
Documents, as well as the structure of the Acquisition, shall be in form and
substance reasonably satisfactory to the Lead Agents.
(b) As contemplated by clause (ii) of the definition of
Acquisition, on the Initial Borrowing Date (and to effect the Acquisition), the
Corporation shall have purchased Starwood REIT's shares of ITT by issuing the
Intercompany Mortgage Note in the aggregate principal amount of $3,450,000,000
to Starwood REIT and by paying cash to Starwood REIT, or assuming obligations
and liabilities of Starwood REIT and SLT RLP in respect of certain Existing
Indebtedness, in the amount of $2,092,500,000. Furthermore, Starwood REIT
shall have
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contributed the Intercompany Mortgage Note to SLT RLP. The Intercompany
Mortgage Note shall provide for an interest rate per annum not to exceed 8.5%,
and shall otherwise be on terms and conditions (including, without limitation,
amortization, maturities, guarantees, covenants, defaults, remedies, sinking
fund provisions, subordination provisions and other terms) satisfactory to the
Lead Agents and the Required Lenders.
5.06 Senior Secured Bridge Notes. (a) On or prior to the
Initial Borrowing Date, the Corporation shall have received gross cash proceeds
of $2.5 billion from the issuance of a like principal amount of Senior Secured
Bridge Notes. The Senior Secured Bridge Notes shall be obligations (which will
be secured on an equal and ratable basis with the other obligations secured
pursuant to the Pledge and Security Agreement) of the Corporation. The
Corporation shall have utilized the full amount of the net cash proceeds
received from the issuance of the Senior Secured Bridge Notes to make payments
owing in connection with the Transaction prior to utilizing the proceeds of the
Loans for such purpose.
(b) On or prior to the Initial Borrowing Date, there
shall have been delivered to the Lead Agents true and correct copies of the
Senior Secured Bridge Note Documents, and all of the terms and conditions of
the Senior Secured Bridge Note Documents (including, without limitation,
amortization, maturities, interest rates, guaranties, covenants, defaults,
remedies, sinking fund provisions and other terms) shall be reasonably
satisfactory to the Lead Agents. The issuance of the Senior Secured Bridge
Notes shall have been consummated in accordance with the Senior Secured Bridge
Note Documents and all applicable laws.
5.07 Indebtedness to be Refinanced. (a) On or prior to the
Initial Borrowing Date, the total commitments in respect of the Indebtedness to
be Refinanced shall have been terminated, and all loans and notes issued
thereunder shall have been repaid in full, together with interest thereon, all
letters of credit issued thereunder shall have been terminated or supported in
a manner satisfactory to the respective letter of credit issuers, and all other
amounts owing pursuant to Indebtedness to be Refinanced shall have been repaid
in full and all documents in respect of the Indebtedness to be Refinanced and
all guarantees with respect thereto shall have been terminated and be of no
further force or effect except for continuing indemnification obligations
described therein.
(b) On or prior to the Initial Borrowing Date, the
creditors in respect to the Indebtedness to be Refinanced shall have terminated
and released all security interests and Liens on the assets owned or to be
owned by the Parent Companies or any of their Subsidiaries (including, without
limitation, ITT and its Subsidiaries) granted in connection with the
Indebtedness to be Refinanced. The Lead Agents shall have received such
releases of security interests in and Liens on the assets owned or to be owned
by the Parent Companies and their Subsidiaries as may have been reasonably
requested by the Lead Agents, which releases shall be in form and substance
reasonably satisfactory to the Lead Agents. Without limiting the foregoing,
there shall have been delivered (i) proper termination statements (Form UCC-3
or the appropriate equivalent) for filing under the UCC of each jurisdiction
where a financing statement (Form UCC-1 or the appropriate equivalent) was
filed with respect to any Parent Company or any of their Subsidiaries, or their
respective predecessors in interest, in connection with the security interests
created with respect to the Indebtedness to be Refinanced and the documentation
related thereto, (ii) terminations or
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assignments of any security interest in, or Lien on, any patents, trademarks,
copyrights, or similar interests of the Parent Companies or any of their
Subsidiaries, on which filings have been made, (iii) terminations of all
mortgages, leasehold mortgages and deeds of trust created with respect to
property of the Parent Companies or any of their Subsidiaries, or their
respective predecessors in interest, in each case, to secure the obligations in
respect of the Indebtedness to be Refinanced, all of which shall be in form and
substance reasonably satisfactory to the Lead Agents and (iv) all collateral
owned by the Parent Companies or any of their Subsidiaries in the possession of
any of the creditors in respect of the Indebtedness to be Refinanced or any
collateral agent or trustee under any related security document shall have been
returned to the respective Parent Company or such Subsidiary, as the case may
be.
(c) On or prior to the Initial Borrowing Date, there
shall have been delivered to the Lead Agents true and correct copies of the
Refinancing Documents, which Refinancing Documents shall be in full force and
effect, and the terms and conditions of each of the Refinancing Documents shall
be in form and substance satisfactory to the Lead Agents.
5.08 Outstanding Indebtedness and Preferred Stock. (a) On
the Initial Borrowing Date, and after giving effect to the transactions
described above, the Parent Companies and their Subsidiaries shall have no
outstanding Indebtedness or Preferred Stock other than (i) Indebtedness
pursuant to this Agreement, (ii) the Class A Exchangeable Preferred Shares,
(iii) the Class B Exchangeable Preferred Shares, (iv) the Preferred Partnership
Units, (v) 34.4 million savings shares of CIGA, (vi) the Senior Secured Bridge
Notes, (vii) the Intercompany Mortgage Note and the Assigned Starwood Note and
(viii) such Existing Indebtedness, if any, as is identified in Schedule 7.25
hereto (with, in the case of Affiliate Debt, normal fluctuations in the
outstanding principal amounts thereof from the date of such Schedule), which
shall remain outstanding and in effect after giving effect to the Transaction,
with no defaults or events of default existing thereunder, with such exceptions
as are satisfactory to the Lead Agents.
(b) On or prior to the Initial Borrowing Date, each
Credit Party that is party to Intercompany Existing Indebtedness (other than
Intercompany Existing Indebtedness of the type referred to in clauses (I) and
(II) of Section 9.05(viii)) shall have entered into a Subordination Agreement
pursuant to which such Intercompany Existing Indebtedness is subordinated as to
payment to the Obligations of each Credit Party obligated with respect to such
Intercompany Existing Indebtedness.
5.09 Adverse Change, etc. (a) On or prior to the Initial
Borrowing Date, nothing shall have occurred (and neither any Lead Agent nor the
Lenders shall have become aware of any facts, conditions or other information
not previously known to it) which any Lead Agent or the Required Lenders shall
determine has had or could reasonably be expected to have a Material Adverse
Effect.
(b) All necessary governmental (domestic and foreign) and
third party approvals and/or consents (except for (x) receipt of a "final
order" from the FCC, (y) consent from the United States Department of
Education, certain State accreditation commission and certain State education
authorities in respect of the change of control at ESI and (z) final consent
from the N.J. Gaming Approval, which approvals and/or consents are not required
to be obtained
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on or before the Initial Borrowing Date) in connection with any Credit Event
and the Transaction, the other transactions contemplated by the Documents and
otherwise referred to herein or therein shall have been obtained and remain in
effect, and all applicable waiting periods shall have expired without any
action being taken by any competent authority which restrains, prevents, or
imposes materially adverse conditions upon, the consummation of any Credit
Event and the Transaction or the other transactions contemplated by the
Documents or otherwise referred to herein or therein. Additionally, there
shall not exist any judgment, order, injunction or other restraint issued or
filed or a hearing seeking injunctive relief or other restraint pending or
notified prohibiting or imposing materially adverse conditions upon any Credit
Event or the Transaction or the other transactions contemplated by the
Documents.
5.10 Litigation. On the Initial Borrowing Date, no
litigation by any entity (private or governmental) shall be pending or
threatened with respect to this Agreement, any other Document or any
documentation executed in connection herewith or therewith or the transactions
contemplated hereby or thereby, or which any Lead Agent or the Required Lenders
shall determine could reasonably be expected to have a Material Adverse Effect.
5.11 Guaranty. On the Initial Borrowing Date, each Guarantor
(listed on part 1 of Schedule 7.16) shall have duly authorized, executed and
delivered a guaranty in the form of Exhibit H (as amended, modified or
supplemented from time to time, the "Guaranty"), guaranteeing all of the
obligations of each of the Borrowers as more fully provided therein, and the
Guaranty shall be in full force and effect.
5.12 Pledge and Security Agreement. On the Initial Borrowing
Date, each Borrower and each Guarantor shall have duly authorized, executed and
delivered a Pledge and Security Agreement in the form of Exhibit I (as amended,
modified or supplemented from time to time, the "Pledge and Security
Agreement"), covering each Credit Party's present and future rights and
interest in all Pledge and Security Agreement Collateral, in each case together
with:
(i) proper Financing Statements (Form UCC-1) fully executed
for filing under the UCC or other appropriate filing offices of each
jurisdiction as may be necessary or, in the opinion of any Lead Agent,
the Required Lenders or the Collateral Agent, desirable to perfect the
security interests purported to be created by the Pledge and Security
Agreement;
(ii) copies of Requests for Information (Form UCC-11), or
equivalent reports, listing all effective financing statements that
name any Credit Party as debtor and that are filed in the
jurisdictions referred to in preceding clause (i), together with
copies of such financing statements (none of which shall cover the
Pledge and Security Agreement Collateral except to the extent
evidencing Permitted Liens);
(iii) evidence of the completion of all other recordings and
filings of, or with respect to, such Pledge and Security Agreement as
may be necessary or, in the reasonable opinion of any Lead Agent, the
Required Lenders or the Collateral Agent, desirable to perfect the
security interests intended to be created by the Pledge and Security
Agreement; and
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(iv) evidence that all other actions necessary or, in the
opinion of any Lead Agent, the Required Lenders or the Collateral
Agent, desirable to perfect the security interests purported to be
created by the Pledge and Security Agreement have been taken.
In addition to the foregoing requirements, pursuant to the
Pledge and Security Agreement, each Credit Party shall have delivered to the
Collateral Agent, as Pledgee, all Pledged Securities referred to therein then
owned by such Credit Party (to the extent evidenced by any certificate, note or
other written instrument), together with executed and undated irrevocable stock
powers in the case of Pledged Stock and together with irrevocable assignments
in the case of Pledged Partnership Interests and Pledged Limited Liability
Company Interests in each case which are evidenced by certificates,
instruments, documents or other writings.
5.13 Pro Forma Balance Sheet; Projections; Financial
Statements. On or prior to the Initial Borrowing Date, there shall have been
delivered to the Lenders:
(i) an unaudited pro forma combined balance sheet of the
Parent Companies and their Subsidiaries dated as of a date
satisfactory to the Lead Agents, after giving effect to the
Transaction and the incurrence of all Indebtedness contemplated herein
and prepared in accordance with generally accepted accounting
principles, which pro forma balance sheet shall be in form and
substance satisfactory to the Lead Agents and the Required Lenders;
and
(ii) projected financial and cash flow statements for the
Parent Companies and their Subsidiaries for the period from the
Initial Borrowing Date to and including at least December 31, 2002
(the "Projections"), which Projections (x) shall reflect the
forecasted financial condition, income and expenses and cash flows of
the Parent Companies and their Subsidiaries after giving effect to the
Transaction and the related financing thereof and the other
transactions contemplated hereby and thereby and (y) shall be in form
and substance satisfactory to the Lead Agents and the Required
Lenders.
5.14 Solvency Opinion; Environmental Analyses; Insurance
Analyses. On the Initial Borrowing Date, there shall have been delivered to
the Lead Agents:
(i) a solvency opinion from an independent valuation firm
satisfactory to the Lead Agents, addressed to the Lead Agents and the
Lenders and dated the Initial Borrowing Date, setting forth the
conclusions that, after giving effect to the Transaction, the Parent
Companies and their Subsidiaries, taken as a whole, are not insolvent
and will not be rendered insolvent by the indebtedness incurred in
connection therewith, will not be left with unreasonably small capital
with which to engage in their business and will not have incurred
debts beyond their ability to pay debts as they mature;
(ii) environmental and hazardous substance assessment and
analyses in scope, and in form and substance, satisfactory to the Lead
Agents and the results of which do not disclose any environmental
liabilities or potential environmental liabilities reasonably likely
to result in a Material Adverse Effect; and
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(iii) analyses and evidence of insurance complying with the
requirements of Section 8.03 for the business and properties of the
Parent Companies and their Subsidiaries, in scope, form and substance
reasonably satisfactory to the Lead Agents and the Required Lenders.
5.15 Proxy Materials; etc. On or prior to the Initial
Borrowing Date, there shall have been delivered to each Lender all proxy
materials and similar notices, reports on prospectuses, sent to shareholders of
the Parent Companies or ITT in connection with the Transaction, including,
without limitation, copies of the Joint Proxy Statement.
5.16 ITT Acknowledgment. On the Initial Borrowing Date, and
immediately after giving effect to the Acquisition, ITT shall have executed and
delivered an acknowledgment and agreement in the form of Exhibit J hereto (the
"ITT Acknowledgment").
5.17 World Directories Disposition. On or prior to the
Initial Borrowing Date, ITT shall have disposed of World Directories in a
transaction structured as described in a memorandum (the "WD Memorandum") from
the Parent Companies previously delivered to the Lenders (with such transaction
herein called the "WD Disposition"). Following the consummation of the WD
Disposition, (i) the ownership interests in the various entities shown in the
chart contained in the WD Memorandum shall be as described in the WD
Memorandum, (ii) the Corporation shall have assumed the obligations of the REIT
Borrowers as payor of the Assigned Starwood Note and (iii) Assigned Starwood
Note LLC shall own the Assigned Starwood Note and shall have entered into a
Subordination Agreement with respect thereto.
SECTION 6. Conditions Precedent to All Credit Events. The
obligation of each Lender to make Loans (including Loans made on the Initial
Borrowing Date, but excluding Mandatory Borrowings to be made thereafter, which
shall be made as provided in Section 1.01(e)), and the obligation of any
Issuing Bank to issue any Letter of Credit, is subject, at the time of each
such Credit Event (except as hereinafter indicated), to the satisfaction of the
following conditions:
6.01 No Default; Representations and Warranties. At the time
of each such Credit Event and also after giving effect thereto (i) there shall
exist no Default or Event of Default and (ii) all representations and
warranties contained herein and in the other Credit Documents shall be true and
correct in all material respects with the same effect as though such
representations and warranties had been made on the date of such Credit Event
(it being understood and agreed that any representation or warranty which by
its terms is made as of a specified date shall be required to be true and
correct in all material respects only as of such specified date).
6.02 Requirements of Law. The occurrence of the respective
Credit Event on such date does not violate any Requirement of Law and is not
enjoined, temporarily, preliminarily or permanently and no litigation shall be
pending or threatened, which in the good faith judgment of any Lead Agent or
the Required Lenders would enjoin, prohibit or restrain, or impose or result in
the imposition of any material adverse condition upon, the respective Credit
Event or any Credit Party's obligations with respect thereto.
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6.03 No Material Adverse Effect. No event, act or condition
shall have occurred after the Effective Date which, in the reasonable judgment
of any Lead Agent or the Required Lenders, has had or could have a Material
Adverse Effect.
6.04 Litigation. No actions, suits or proceedings shall be
pending or, to the knowledge of any Borrower, threatened with respect to the
Obligations or the Credit Documents, any Borrower, or with respect to the
assets of such parties, which, if adversely determined, would have a Material
Adverse Effect.
6.05 Notice of Borrowing; Competitive Bid Loans; Letter of
Credit Request. (a) Prior to the making of each Loan (excluding Swingline
Loans and Competitive Bid Loans), the Paying Agent shall have received a Notice
of Borrowing meeting the requirements of Section 1.03(a). Prior to the making
of any Swingline Loan, the Swingline Lender shall have received the notice
required by Section 1.03(b)(i). Prior to the making of any Competitive Bid
Loans, all of the applicable conditions specified in Section 1.04 shall have
been satisfied.
(b) Prior to the issuance of each Letter of Credit, the
Paying Agent and the respective Issuing Bank shall have received a Letter of
Credit Request meeting the requirements of Section 2.03.
6.06 Election to Become a Alternate Currency Revolving Loan
Borrower. Prior to the incurrence of any Revolving Loans by an Alternate
Currency Revolving Loan Borrower which is not an Alternate Currency Revolving
Loan Borrower on the Effective Date, the following additional conditions shall
be satisfied:
(i) such new Alternate Currency Revolving Loan Borrower shall
have duly authorized, executed and delivered to the Paying Agent an
Election to Become an Alternate Currency Revolving Loan Borrower in
the form of Exhibit K, which shall be in full force and effect;
(ii) such Alternate Currency Revolving Loan Borrower shall have
duly authorized, executed and delivered to the Paying Agent for the
account of each of the Alternate Currency Lenders (subject to Section
1.06(j)) the appropriate Alternate Currency Revolving Notes in the
amount, maturity and as otherwise provided herein; and
(iii) to the extent not previously accomplished, such Alternate
Currency Revolving Loan Borrower (unless same is a Foreign Subsidiary
of the Corporation) shall have duly authorized, executed and delivered
to the Paying Agent counterparts of the Guaranty and the Pledge and
Security Agreement to the extent applicable, together with (x) such
financing statements and instruments required to be delivered by the
Pledge and Security Agreement and (y) such other documents,
certificates, resolutions, opinions and writings that would have been
required to be delivered pursuant to Section 5 if such Alternate
Currency Revolving Loan Borrower had been subject to such Section on
the Effective Date, all of which shall be in form and substance
reasonably satisfactory to the Paying Agent.
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The acceptance of the proceeds of each Loan or the making of
each Letter of Credit Request (occurring on the Initial Borrowing Date and
thereafter) shall constitute a representation and warranty by each Credit Party
to the Lead Agents and each of the Lenders that all the conditions specified in
Section 5 (with respect to Credit Events on the Initial Borrowing Date) and in
this Section 6 (with respect to Credit Events on and after the Initial
Borrowing Date) and applicable to such Credit Event exist as of that time. All
of the Notes, certificates, legal opinions and other documents and papers
referred to in Section 5 and in this Section 6, unless otherwise specified,
shall be delivered to the Paying Agent at the Notice Office for the account of
each of the Lenders and, except for the Notes, in sufficient counterparts or
copies for each of the Lenders and shall be in form and substance reasonably
satisfactory to the Lead Agents and the Required Lenders.
SECTION 7. Representations, Warranties and Agreements. In
order to induce the Lenders to enter into this Agreement and to make the Loans,
and issue (or participate in) the Letters of Credit as provided herein, each
Borrower makes the following representations, warranties and agreements, in
each case after giving effect to the Transaction, all of which shall survive
the execution and delivery of this Agreement and the Notes and the making of
the Loans and issuance of the Letters of Credit, with the occurrence of each
Credit Event on or after the Initial Borrowing Date being deemed to constitute
a representation and warranty that the matters specified in this Section 7 are
true and correct in all material respects on and as of the date of each such
Credit Event (it being understood and agreed that any representation or
warranty which by its terms is made as of a specified date shall be required to
be true and correct in all material respects only as of such specified date).
7.01 Existence; Compliance with Law. Each Credit Party and
each of its Subsidiaries (i) is a real estate investment trust or a
corporation, limited liability company or limited partnership, or a qualified
REIT subsidiary as specified herein, duly organized, validly existing and in
good standing under the laws of the jurisdiction of its formation; (ii) is duly
qualified as a foreign corporation, limited liability company or limited
partnership and in good standing under the laws of each jurisdiction where such
qualification is necessary, except for failures which in the aggregate have no
Material Adverse Effect; (iii) has all requisite corporate, limited liability
company or partnership power and authority and the legal right to own, pledge
and mortgage its properties, to lease (as lessee) the properties that it leases
as lessee, to lease or sublease (as lessor) the properties it owns and/or
leases (as lessee) and to conduct its business as now or currently proposed to
be conducted; (iv) is in compliance with its declaration of trust or
certificate of or formation and by-laws, regulations or partnership or
operating agreement, as appropriate; (v) is in compliance with all other
applicable Requirements of Law except for such non-compliances as in the
aggregate have no Material Adverse Effect; and (vi) has all necessary licenses,
permits, consents or approvals from or by, has made all necessary filings with,
and has given all necessary notices to, each Governmental Authority having
jurisdiction, to the extent required for such ownership, leasing and conduct,
except for licenses, permits, consents or approvals which can be obtained by
the taking of ministerial action to secure the grant or transfer thereof or
failures which in the aggregate have no Material Adverse Effect.
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7.02 Power; Authorization; Enforceable Obligations. (a) The
execution, delivery and performance by each Credit Party of the Documents to
which it is a party and the consummation of the transactions contemplated
hereby and thereby:
(i) are within such Credit Party's corporate, partnership,
limited liability company or trust powers, as appropriate;
(ii) have been duly authorized by all necessary corporate,
partnership, limited liability company or trust action, as
appropriate, including, without limitation, the consent of
stockholders, general and/or limited partners and members where
required;
(iii) do not and will not (A) contravene any Credit Party's or
any of its Subsidiaries' respective declaration of trust, certificate
of incorporation or formation or by-laws, regulations, partnership
agreement, operating agreement or other comparable governing
documents, (B) violate any other applicable Requirement of Law
(including, without limitation, Regulations G, T, U and X of the Board
of Governors of the Federal Reserve System), or any order or decree of
any Governmental Authority or arbitrator, (C) conflict with or result
in the breach of, or constitute a default under, or result in or
permit the termination or acceleration of, any Contractual Obligation
of any Loan Party or any of its Subsidiaries, other than the failure
to obtain certain consents with respect to the Securitized Debt, the
Xxxxx Ground Leases and the Excluded Debt set forth on Schedule 7.02,
which have been fully disclosed to the Lenders or (D) result in the
creation or imposition of any Lien upon any of the Assets of any
Credit Party or any of its Subsidiaries; and
(iv) do not require the consent of, authorization by, approval
of, notice to, or filing or registration with, any Governmental
Authority or any other Person, other than those which have been
obtained or made, and each of which is in full force and effect and
other than the failure to obtain certain consents with respect to the
Securitized Debt, the Xxxxx Ground Leases and the Excluded Debt set
forth on Schedule 7.02, which have been fully disclosed to the
Lenders.
(b) This Agreement and each of the other Documents has
been duly executed and delivered by each Credit Party which is a party thereto.
This Agreement and each other Document constitutes the legal, valid and binding
obligation of each Credit Party which is a party thereto, enforceable against
it in accordance with its terms except to the extent that enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium and
similar laws affecting the enforcement of creditor's rights and remedies
generally.
7.03 Financial Statements; Financial Condition; Undisclosed
Liabilities; Projections; etc. (a) The separate and combined financial
statements and financial statement schedules of Starwood REIT and its
Subsidiaries and the Corporation and its Subsidiaries, as of December 31, 1996
and 1995, and for each of the two years in the period ended December 31, 1996,
filed with the SEC as part of the Parent Companies' joint annual report on Form
10-K, fairly present in all material respects the separate and combined
operations of the Parent Companies and their Subsidiaries for the respective
fiscal years ended on such dates, and the separate and combined financial
position of the Parent Companies and their Subsidiaries as at the
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dates of such balance sheets. Furthermore, the separate and combined financial
statements of Starwood REIT and its Subsidiaries and the Corporation and its
Subsidiaries, in each case as at September 30, 1997 and for the nine-month
period ended on such date, fairly present in all material respects the separate
and combined results of operations of the Parent Companies and their
Subsidiaries for the nine-month period ended on such date, and the separate and
combined financial position of the Parent Companies and their Subsidiaries at
the date of such balance sheet. All such financial statements have been
prepared in accordance with GAAP consistently applied, subject to normal
year-end audit adjustments and the absence of footnotes in the case of the
September 30, 1997 financial statements.
(b) The consolidated balance sheet of ITT and its
Subsidiaries at December 31, 1996 and September 30, 1997 and the related
statements of consolidated income, consolidated cash flows and shareholders'
equity of ITT and its Subsidiaries for the fiscal year or the nine-month period
ended on such date, as the case may be, and furnished to the Lenders prior to
the Initial Borrowing Date, fairly present in all material respects the
consolidated results of operations of ITT and its Subsidiaries for the
respective fiscal year or nine-month period ended on such date, as the case may
be, and consolidated financial position of ITT and its Subsidiaries at the date
of such balance sheet. All such consolidated financial statements have been
prepared in accordance with GAAP consistently applied, subject to normal
year-end audit adjustments and the absence of footnotes in the case of the
September 30, 1997 financial statements.
(c) The consolidated balance sheet of Westin and its
Subsidiaries at December 31, 1996 and September 30, 1997 and the related
statements of consolidated income, consolidated cash flows and shareholders'
equity of Westin and its Subsidiaries for the fiscal year or the nine-month
period ended on such date, as the case may be, and furnished to the Lenders
prior to the Initial Borrowing Date, fairly present in all material respects
the consolidated results of operations of Westin and its Subsidiaries for the
respective fiscal year or nine-month period ended on such date, as the case may
be, and consolidated financial position of Westin and its Subsidiaries at the
date of such balance sheet. All such consolidated financial statements have
been prepared in accordance with GAAP consistently applied, subject to normal
year-end audit adjustments and the absence of footnotes in the case of the
September 30, 1997 financial statements.
(d) Since December 31, 1996 (but for this purpose,
assuming that the Transaction had been consummated on such date), nothing has
occurred that has had or could reasonably be expected to have a Material
Adverse Effect.
(e) (i) On and as of the Initial Borrowing Date, after giving
effect to the Transaction and to all Indebtedness (including the Loans) being
incurred or assumed and Liens created by the Credit Parties in connection
therewith, (a) the sum of the assets, at a fair valuation, of Starwood REIT and
its Subsidiaries taken as a whole, the Corporation and its Subsidiaries taken
as a whole and each Borrower on a stand-alone basis will exceed their
respective debts; (b) Starwood REIT and its Subsidiaries taken as a whole, the
Corporation and its Subsidiaries taken as a whole and each Borrower on a
stand-alone basis have not incurred and do not intend to incur, and do not
believe that they will incur, debts beyond their ability to pay such debts as
such debts mature; and (c) Starwood REIT and its Subsidiaries taken as a whole,
the Corporation and its Subsidiaries taken as a whole and each Borrower on a
stand-alone basis will have sufficient
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capital with which to conduct their respective businesses. For purposes of
this Section 7.05(e), "debt" means any liability on a claim, and "claim" means
(i) right to payment, whether or not such a right is reduced to judgment,
liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed,
undisputed, legal, equitable, secured, or unsecured or (ii) right to an
equitable remedy for breach of performance if such breach gives rise to a
payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured
or unsecured.
(f) Except as disclosed in the financial statements
delivered pursuant to Sections 7.05(a), (b) and (c) and the Indebtedness
incurred in connection with the Transaction, there were as of the Initial
Borrowing Date no liabilities or obligations with respect to Starwood REIT, the
Corporation, ITT, Westin or any of their respective Subsidiaries of any nature
whatsoever (whether absolute, accrued, contingent or otherwise and whether or
not due) which, either individually or in aggregate, has had or could
reasonably be expected to have a Material Adverse Effect. As of the Initial
Borrowing Date, and except for the Transaction, no Borrower knows of any basis
for the assertion against it or any of its Subsidiaries of any liability or
obligation of any nature whatsoever that is not disclosed in the financial
statements delivered pursuant to Sections 7.05(a), (b) and (c) which, either
individually or in the aggregate, has had or could reasonably be expected to
have a Material Adverse Effect.
(g) On and as of the Initial Borrowing Date, the
Projections have been prepared in good faith and are based on reasonable
assumptions under the then known facts and circumstances, and there are no
statements or conclusions in any of the Projections which are based upon or
include information known to any Borrower to be misleading in any material
respect or which knowingly fail to take into account material information
regarding the matters reported therein; it being understood, however, that (i)
to the extent the Projections include forecasted results of ITT and its
Subsidiaries and Westin and its Subsidiaries, such forecasted results were
included in the Projections in reliance on the projections prepared by the
existing management of ITT and Westin, as the case may be) and (ii) nothing
contained herein shall constitute a representation that the results forecasted
in such Projections will in fact be achieved. On the Initial Borrowing Date,
each Borrower believes that the Projections are reasonable and attainable based
upon the then known facts and circumstances, it being understood that nothing
contained herein shall constitute a representation that the results forecasted
in such Projections will in fact be achieved.
7.04 Litigation. There are no pending or, to the best
knowledge of any Borrower, threatened actions, investigations or proceedings
affecting either Parent Company, any of their respective Subsidiaries or any
other Credit Party, or any of their respective Assets or revenues before any
court, Governmental Authority or arbitrator, that in the aggregate, if
adversely determined, would have a Material Adverse Effect. The performance of
any action by any Credit Party required or contemplated by any of the Documents
is not, to the best knowledge of any Borrower, restrained or enjoined (either
temporarily, preliminarily or permanently), and, to the best knowledge of each
Borrower, no material adverse condition has been imposed by any Governmental
Authority or arbitrator upon any of the foregoing transactions contemplated by
the aforementioned documents.
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7.05 True and Complete Disclosure. All factual information
(other than the Projections, which are covered in Section 7.03(g)) (taken as a
whole) furnished by any Credit Party in writing to the Paying Agent or any
Lender (including, without limitation, all information contained in the
Documents, the Joint Proxy Statement and the Bank Information Memorandum), is,
and all other such factual information (taken as a whole) hereafter furnished
by or on behalf of any Credit Party in writing to the Paying Agent or any
Lender will be, true and accurate in all material respects on the date as of
which such information is dated or certified and not incomplete by omitting 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.
7.06 Use of Proceeds; Margin Regulations. (a) All proceeds
of the Term Loans will be used by the respective Borrowers (i) to finance the
Transaction and (ii) to pay fees and expenses related to the Transaction.
(b) The proceeds of Revolving Loans, Swingline Loans and
Competitive Bid Loans incurred by the respective Revolving Loan Borrower will
be used for (x) the purposes set forth in preceding clause (a) and (y) such
Revolving Loan Borrower's and its (or their) Subsidiaries' general corporate
and working capital purposes.
(c) Neither the making of any Loan nor the use of the
proceeds thereof nor the occurrence of any other Credit Event will violate or
be inconsistent with the provisions of Regulation G, T, U or X.
(d) The fair market value of all Margin Stock (other than
the Capital Stock of ESI which is Margin Stock) owned by the Parent Companies
and their Subsidiaries does not exceed $5,000,000. At the time of each Credit
Event occurring on or after the Initial Borrowing Date, not more than 25% of
the value of the assets of the Parent Companies and their Subsidiaries taken as
a whole will constitute Margin Stock.
7.07 Taxes. All federal, state, local and foreign tax
returns, reports and statements (collectively, the "Tax Returns") required to
be filed by the Parent Companies and each Subsidiary or any Tax Affiliate
thereof have been filed with the appropriate governmental agencies in all
jurisdictions in which such Tax Returns are required to be filed, all such Tax
Returns are true and correct in all material respects, and all taxes, charges
and other impositions due and payable have been timely paid prior to the date
on which any fine, penalty, interest, late charge or loss may be added thereto
for non-payment thereof, except where contested in good faith and by
appropriate proceedings if (i) adequate reserve therefore have been established
on the books of the respective Parent Company, Subsidiary or Tax Affiliate in
conformity with GAAP and (ii) all such non-payments in the aggregate have, and
will have, no Material Adverse Effect. Proper and accurate amounts have been
withheld by the Parent Companies and each of their respective Subsidiaries and
Tax Affiliates from their respective employees for all periods in full and
complete compliance with the tax, social security and unemployment withholding
provisions of applicable federal, state, local and foreign law and such
withholdings have been timely paid to the respective Governmental Authorities.
Except as otherwise disclosed on Schedule 7.07, none of the Parent Companies or
any of their Subsidiaries or Tax Affiliates has (i) executed or filed with the
IRS any
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agreement or other document extending, or having the effect of extending, the
period for assessment or collection of any charges; (ii) agreed or been
requested to make any adjustment under Section 481(a) of the Code by reason of
a change in accounting method or otherwise; or (iii) any obligation under any
written tax sharing agreement.
7.08 Compliance with ERISA. (a) Schedule 7.08 sets forth
each Plan; except as would not result in any material liability, each Plan (and
each related trust, insurance contract or fund) is in compliance with its terms
and except as would not result in any material liability, with all applicable
laws, including without limitation ERISA and the Code; each Plan (and each
related trust, if any) which is intended to be qualified under Section 401(a)
of the Code has received or is in the process of seeking a determination letter
from the Internal Revenue Service to the effect that it meets the requirements
of Sections 401(a) and 501(a) of the Code; no Reportable Event has occurred
during the last 3 years; no Plan which is a multiemployer plan (as defined in
Section 4001(a)(3) of ERISA) is insolvent or in reorganization; no Plan which
is not a multiemployer plan (as defined in Section 4001 (a)(3) of ERISA) has an
Unfunded Current Liability; no Plan which is subject to Section 412 of the Code
or Section 302 of ERISA has an accumulated funding deficiency, within the
meaning of such sections of the Code or ERISA, or has applied for or received a
waiver of an accumulated funding deficiency or an extension of any amortization
period, within the meaning of Section 412 of the Code or Section 303 or 304 of
ERISA; all contributions required to be made with respect to a Plan by any
Borrower or a Subsidiary of any Borrower or an ERISA Affiliate have been timely
made; no Borrower nor any Subsidiary of any Borrower nor any ERISA Affiliate
has incurred any liability (including any indirect, contingent or secondary
liability) to or on account of a Plan pursuant to Section 409, 502(i), 502(l),
515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29),
4971 or 4975 of the Code or expects to incur any such liability under any of
the foregoing sections with respect to any Plan which could reasonably be
expected to result in a Material Adverse Effect; no condition exists which
presents a risk to any Borrower or any Subsidiary of any Borrower or any ERISA
Affiliate of incurring a liability to or on account of a Plan pursuant to the
foregoing provisions of ERISA and the Code, which could reasonably be expected
to result in a Material Adverse Effect; no proceedings have been instituted to
terminate or appoint a trustee to administer any Plan which is subject to Title
IV of ERISA which could reasonably be expected to result in a Material Adverse
Effect; except as would not result in any material liability, no action, suit,
proceeding, hearing, audit or investigation with respect to the administration,
operation or the investment of assets of any Plan (other than routine claims
for benefits) is pending, expected or threatened; using actuarial assumptions
and computation methods consistent with Part 1 of subtitle E of Title IV of
ERISA, the aggregate liabilities of the Borrowers and their Subsidiaries and
their ERISA Affiliates to all Plans which are multiemployer plans (as defined
in Section 4001(a)(3) of ERISA) in the event of a complete withdrawal
therefrom, as of the close of the most recent fiscal year of each such Plan
ended prior to the date of the most recent Credit Event, would not exceed an
amount which would have a Material Adverse Effect; except as would not result
in any material liability, each group health plan (as defined in Section 607(1)
of ERISA or Section 4980B(g)(2) of the Code) which covers or has covered
employees or former employees of any Borrower, any Subsidiary of any Borrower,
or any ERISA Affiliate has at all times been operated in compliance with the
provisions of Part 6 of subtitle B of Title I of ERISA and Section 4980B of the
Code; no lien imposed under the Code or ERISA on the assets of any Borrower or
any Subsidiary of any
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Borrower or any ERISA Affiliate exists or is likely to arise on account of any
Plan; and the Borrowers and their Subsidiaries do not maintain or contribute to
any employee welfare benefit plan (as defined in Section 3(1) of ERISA) which
provides benefits to retired employees or other former employees (other than as
required by Section 601 of ERISA) or any Plan the obligations with respect to
which could reasonably be expected to have a Material Adverse Effect.
Notwithstanding the foregoing, with respect to Plans that are multiemployer
plans (as defined in Section 4001(a)(3) of ERISA) and Plans that are not
currently maintained by any Borrower, any Subsidiary of any Borrower or any
ERISA Affiliate, the representations and warranties in this Section 7.08 are
made to the best knowledge of the Borrowers.
(b) Except as would not result in any material liability,
each Foreign Pension Plan has been maintained in compliance with its terms and
with the requirements of any and all applicable laws, statutes, rules,
regulations and orders and has been maintained, where required, in good
standing with applicable regulatory authorities. All contributions required to
be made with respect to a Foreign Pension Plan have been timely made. Except
as would not result in any material liability, no Borrower nor any of its
Subsidiaries has incurred any obligation in connection with the termination of
or withdrawal from any Foreign Pension Plan. The present value of the accrued
benefit liabilities (whether or not vested) under each Foreign Pension Plan,
determined as of the end of the most recently ended fiscal year of the Parent
Companies on the basis of actuarial assumptions, each of which is reasonable,
did not exceed the current value of the assets of such Foreign Pension Plan
allocable to such benefit liabilities to an extent which could reasonably be
expected to have a Material Adverse Effect.
(c) The assets of the Parent Companies and each Credit
Party do not constitute "plan assets" within the meaning of DOL Regulation
Section 2510.3-101.
7.09 The Pledge and Security Agreement. The security
interests created in favor of the Collateral Agent, as Pledgee, for the benefit
of the Secured Creditors under the Pledge and Security Agreement constitute
first priority perfected security interests in the Collateral described in the
Pledge and Security Agreement, subject to no security interests of any other
Person (other than Permitted Liens). All filings or recordings required in
order to perfect (or maintain the perfection or priority of) the security
interests created in the Collateral under the Pledge and Security Agreement
have been made and are effective (and have not lapsed) or, if this
representation is being made at any time on or prior to the tenth day after the
Initial Borrowing Date, all such recordings and filings referenced above have
been or will be made within ten days after the Initial Borrowing Date.
7.10 Representations and Warranties in Other Documents. All
representations and warranties set forth in the Documents (other than the
Credit Documents) were true and correct in all material respects at the time as
of which such representations and warranties were made (or deemed made).
7.11 Contractual Obligations Concerning Assets. As of the
date hereof, no Credit Party nor any Credit Party Subsidiary owns or holds, or
is obligated under or a party to, any option, right of first refusal, or other
contractual right to purchase or acquire, or any Contractual Obligation to sell
or dispose of, any Asset (or related group of Assets), in each case where the
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aggregate consideration for the respective acquisition or disposition would
reasonably be expected to exceed $5,000,000, in each case except as
specifically described (x) in Part A of Schedule 7.11, in the case of any such
purchase or acquisition of Assets or (y) Part B of Schedule 7.11, in the case
of any such sale or disposition of Assets. The aggregate effect of all
Contractual Obligations and other items listed on Schedule 7.11 would not
reasonably be expected to have a Material Adverse Effect, whether or not the
transactions contemplated thereby are consummated.
7.12 Title/Status of Real Property. (a) Each Credit Party
and their respective Subsidiaries owns fee simple absolute (or leasehold, as
the case may be) title to all of the Real Property purported to be owned by
them, and all property reflected in the balance sheet portion of the financial
statements referred to in Section 7.03, subject to Permitted Liens. Each
Credit Party and its respective Subsidiaries received all deeds, assignments,
waivers, consents, non-disturbance and recognition or similar agreements, bills
of sale and other documents, and have duly effected all recordings, filings and
other actions necessary to establish, protect and perfect such Credit Party's
and respective Subsidiaries' right, title and interest in and to all such
property except for such documents or actions the failure to obtain or
accomplish which would not reasonably be expected to have a Material Adverse
Effect. On and as of the Initial Borrowing Date and after giving effect to the
consummation of the Transaction, all Real Property owned by each Credit Party
and their respective Subsidiaries is listed on Schedule 7.12.
(b) On and as of the Initial Borrowing Date and after
giving effect to the consummation of the Transaction, all Operating Leases at
the date hereof entered into by any Credit Party or any of its respective
Subsidiaries is listed on Schedule 7.12. Each Operating Lease in respect of
Real Property to which any Credit Party or any of its respective Subsidiaries
is a party is valid and enforceable in accordance with its terms and is in full
force and effect. None of the Credit Parties or any of their respective
Subsidiaries nor, to the knowledge of any Borrower, any other party to any such
Operating Lease is in default of its obligations thereunder or has delivered or
received any notice of default under any such Operating Lease, nor has any
event occurred which, with the giving of notice, the passage of time or both,
would constitute a default under any such Operating Lease, except for defaults
which in the aggregate would reasonably be expected to have a Material Adverse
Effect.
(c) All components of all improvements included within
the Hotels owned or leased, as lessee, by any Credit Party (collectively,
"Improvements"), including, without limitation, the roofs and structural
elements thereof and the heating, ventilation, air conditioning, plumbing,
electrical, mechanical, sewer, waste water, storm water, paving and parking
equipment, systems and facilities included therein, are in good working order
and repair, subject to such exceptions which are not reasonably likely to have,
in the aggregate, a Material Adverse Effect. All water, gas, electrical,
steam, compressed air, telecommunication, sanitary and storm sewage lines and
systems and other similar systems serving the Hotels owned or leased by any
Credit Party or any of their respective Subsidiaries are installed and
operating and are sufficient to enable the Real Property owned or leased by any
Credit Party and their respective Subsidiaries to continue to be used and
operated in the manner currently being used and operated, and no Credit Party
or any of its Subsidiaries has any knowledge of any factor or condition that
reasonably could be expected to result in the termination or material
impairment of the furnishing thereof. No Improvement or portion thereof is
dependent for its access, operation or utility on any land,
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building or other Improvement not included in the Real Property owned or leased
by any Credit Party or any of its Subsidiaries other than for access provided
pursuant to a recorded easement or other right of way establishing the right of
such access.
(d) All Permits required to have been issued or
appropriate to enable all Real Property owned or leased by any Credit Party or
any of its Subsidiaries to be lawfully occupied and used for all purposes for
which they are currently occupied and used have been lawfully issued and are in
full force and effect, other than those which in the aggregate would not
reasonably be expected to have a Material Adverse Effect.
(e) No Credit Party or any of its Subsidiaries has
received any notice, or has any knowledge, of any pending, threatened or
contemplated condemnation proceeding affecting any Real Property owned or
leased by any Credit Party or any of its Subsidiaries or any part thereof, or
any proposed termination or impairment of any parking at any such owned or
leased Real Property or of any sale or other disposition of any Real Property
owned or leased by any Credit Party or any of its Subsidiaries or any part
thereof in lieu of condemnation, which in the aggregate, could reasonably be
expected to have a Material Adverse Effect.
(f) (i) No portion of any Real Property owned or leased by
any Credit Party or any of its Subsidiaries has suffered any material damage by
fire or other casualty loss which has not heretofore been completely repaired
and restored to its condition prior to such casualty, and (ii) no portion of
any Real Property owned or leased by any Credit Party or any of its
Subsidiaries is located in a special flood hazard area as designated by any
Governmental Authority and none of such events, or conditions could reasonably
be expected to have a Material Adverse Effect.
(g) No Borrower is aware of any latent or patent
structural or other significant deficiency of any of the Real Property owned or
leased by any Credit Party or any of its Subsidiaries that could have a
Material Adverse Effect; such Real Property is free of damage and waste that
could have a Material Adverse Effect on the value thereof; and such Real
Property is free from damage caused by fire or other casualty that could have a
Material Adverse Effect.
(h) To the best knowledge of each Borrower, after due
inquiry and investigation, there are no delinquent taxes, ground rents, water
charges, sewer rents, assessments (including assessments payable in future
installments), insurance premiums, or leasehold payments affecting any of the
Real Property owned or leased by any Credit Party or any of its Subsidiaries
that could have a Material Adverse Effect.
(i) Each of the Real Property owned or leased by any
Credit Party or any of its Subsidiaries is assessed for real estate tax
purposes as one or more wholly independent tax lot or lots, separate from any
adjoining land or improvements not constituting a part of such lot or lots, and
no other land or improvements is assessed and taxed together with such real
property or any portion thereof.
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7.13 Mortgage Loans. (a) Schedule 7.13 lists each Mortgage
Loan held by any Credit Party or any of its Subsidiaries, as payee, as of the
date hereof.
(b) Each Borrower is the sole owner and holder of each of
the Mortgage Loans owned by it and the sole holder of the related Mortgage
Note, and has good title to each Mortgage Note and each Mortgage Loan free and
clear of any Liens. No Borrower has waived, modified, altered, satisfied,
cancelled or subordinated any Mortgage Note, any of the Mortgage Note Security
Documents or any Mortgage Loan in any respect. The related Mortgage Note Hotel
has not been released from the lien of the Mortgage, nor has the respective
maker been released from its obligations under the Mortgage.
(c) To the best knowledge of each Borrower, each Mortgage
Note and each related Mortgage Note Security Document is legal, valid and
binding obligation of each party obligated thereunder, enforceable against such
party in accordance with its terms, except as the enforcement thereof may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium, and
similar laws affecting creditors' rights generally and the Mortgage Note
Security Documents create a first (and in the case of the Mortgage Note Hotel
known as the Milwaukee Marriott, a first, second and third and in the case of
the Mortgage Note Hotels known as the Bristol Suites-Dallas, Harvey, the DFW
Airport Hotel-Dallas, Xxxxxx and the Xxxxxx Hotel Addison-Dallas, Harvey, a
first and second) priority Lien in the subject Mortgage Note Hotel.
(d) To the best knowledge of each Borrower, each Mortgage
Loan was made in compliance with all Requirements of Law, and does not violate
any usury or similar law regulating the applicable maximum permitted rates of
interest for loans, extensions of credit or forbearances.
(e) To the best knowledge of each Borrower, each Mortgage
Note evidences an undisputed, bona fide transaction completed in accordance in
all material respects with the terms and provisions contained in any documents
related thereto, and is genuine and free from adverse claims, setoffs, default,
defenses, retainages, holdbacks and conditions precedent of any kind or
character; and no Borrower has knowledge of any fact or circumstance which
would impair the validity or collectibility of any Mortgage Note, in each case
described above except for such defects or other items which could not
reasonably be expected to result in a Material Adverse Effect.
(f) To the actual knowledge of each Borrower, there is no
proceeding pending for the total or partial condemnation of any Mortgage Note
Hotel; each Mortgage Note Hotel is being used for the operation of a Hotel, is
in good repair and free and clear of any damage that would affect materially
and adversely the value of the Mortgage Note Hotel and is lawfully used and
occupied under applicable law by the owner thereof and/or by tenants under
leases.
(g) To the best knowledge of each Borrower, each Mortgage
Note Hotel is free and clear of any mechanics' and materialmen's liens or liens
in the nature thereof, and no rights are outstanding that under law could give
rise to any such liens, any of which liens are or may be prior to, or equal
with, the lien of the Mortgage, except those which are insured against by
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the Lender's title insurance policy issued contemporaneously with the recording
of the Mortgage or those which would not reasonably be expected to have a
Material Adverse Effect.
(h) To the best knowledge of each Borrower, each Mortgage
Note Hotel is in compliance with and lawfully used under any applicable zoning,
building or environmental law or regulation and all inspections, licenses and
certificates required, whether by law, regulation or insurance standards to be
made or issued with respect to the Mortgage Note Hotel and with respect to the
use and occupancy of the same, including but not limited to certificates of
occupancy and fire underwriter certificates, have been made by or issued by the
appropriate Governmental Authorities having jurisdiction over the Mortgage Note
Hotel, and no Borrower nor any of their Subsidiaries has received notification
from any Governmental Authority that the Mortgage Note Hotel is in material
noncompliance with such laws or regulations, is being used, operated or
occupied unlawfully or has failed to have or obtain such inspection, licenses
or certificates, as the case may be. No Borrower nor any of their Subsidiaries
has received notice of any violation or failure to conform with any such law,
ordinance, regulation, standard, license or certificate.
(i) To the best knowledge of each Borrower, (a) each
maker is the owner and holder of the landlord's interest under any lease for
use and occupancy of all or any portion of the related Mortgage Note Hotel, and
(b) no maker has made any assignments of the landlord's interest in any such
lease or any portion of the rents, additional rents, charges, issues or profits
due and payable or to become due and payable under any such lease, which
assignments are presently outstanding and have priority over the related
Mortgage Loan or any related Mortgage Note Security Document given in
connection with the related Loan, other than as may be disclosed in the related
title policy;
(j) To the best knowledge of each Borrower, all fixtures
and articles of personalty attached to each Mortgage Note Hotel or used or
usable in connection with the operation of each Mortgage Note Hotel, except for
trade fixtures or articles of personalty such as are owned or leased by the
tenants or managing agent of the buildings and improvements, have been fully
paid for and are the property of the respective maker and are not subject to
any conditional bills of sale, chattel mortgages or any other title retention
agreements of a similar nature or to any other liens or encumbrances not
hereinabove specifically referred to.
(k) To the best knowledge of each Borrower, each Mortgage
Note Hotel consists of a single lot or multiple tax lots; no portion of said
tax lots covers property other than the Mortgage Note Hotel.
(l) To the best knowledge of each Borrower, for those
Mortgage Note Hotels in which maker holds a leasehold estate, (i) the related
ground lease is in full force and effect and has not been modified or amended
in any manner whatsoever, (ii) there are no defaults under such ground lease
and no event has occurred, which but for the passage of time, or notice, or
both, would constitute a default under such ground lease, (iii) all rents,
additional rents and other sums due and payable under such ground lease have
been paid in full, and (iv) neither maker nor the landlord under the ground
lease has commenced any action or given or received any notice for the purpose
of terminating the ground lease.
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(m) No Mortgage Loan is in default beyond the expiration
of any applicable grace or notice periods, and during the preceding twelve (12)
months, there has been no default in the payment of regularly scheduled
principal and interest thereunder.
(n) Each Borrower has delivered to the Lead Agents all
financial information and reports with respect to each Mortgage Loan and
Mortgage Note Hotel that it has in its possession.
7.14 Subsidiaries and Unconsolidated Entities. Schedule 7.14
correctly sets forth, as of the Initial Borrowing Date and after giving effect
to the Transaction, each Subsidiary and Unconsolidated Entity of Starwood REIT,
SLT RLP, the Corporation and SLC OLP (including the full and correct legal name
thereof, the type of organization and jurisdiction under which it is
organized), and the direct and indirect ownership interests of the Parent
Companies therein. Schedule 7.14 also includes an accurate organization chart
showing each of Starwood REIT, SLT RLP, the Corporation and SLC OLP, each of
their respective Subsidiaries and Unconsolidated Entities, and the direct and
indirect ownership interests therein, in each case as of the Initial Borrowing
Date. All outstanding shares of Capital Stock of each Credit Party, each
Credit Party Subsidiary and each Unconsolidated Entity of any Credit Party have
been duly and validly issued, are fully paid and nonassessable and have been
issued free of preemptive rights.
7.15 Preferred Stock Subsidiaries. Set forth on Schedule
7.15 is a complete and accurate list showing all Preferred Stock Subsidiaries,
and as to each such Preferred Stock Subsidiary, the jurisdiction of its
formation and the percentage of the outstanding Capital Stock of each class
owned by the Parent Companies or any other entity, as the case may be, together
with the Assets owned by such Preferred Stock Subsidiaries. No Capital Stock
of any Preferred Stock Subsidiary is subject to any outstanding option,
warrant, right of conversion, purchase or any similar right. All of the
outstanding Capital Stock of each Preferred Stock Subsidiary has been validly
issued, is fully paid and non- assessable, and free and clear of all Liens
other than Permitted Liens. No Credit Party, nor any such Preferred Stock
Subsidiary is a party to, or has knowledge of, any agreement restricting the
transfer or hypothecation of any shares of Capital Stock of any such Preferred
Stock Subsidiary, other than those imposed by Requirements of Law or the Credit
Documents. The Preferred Stock Subsidiaries do not have any Indebtedness other
than trade payables incurred in the ordinary course of business, no Preferred
Stock Subsidiary owns or leases any Real Property and all Capital Stock of each
Preferred Stock Subsidiary owned by any Credit Party (or any Subsidiary
thereof) has been pledged pursuant to the Pledge and Security Agreement.
7.16 Guarantors.16 Guarantors. Part I of Schedule 7.16
contains a complete and accurate list showing, as of the Initial Borrowing
Date, each Guarantor (which list must name each Borrower as of the Initial
Borrowing Date and each Subsidiary of any of Starwood REIT, SLT RLP, the
Corporation and SLC OLP, in each case unless the respective Subsidiary is
listed in Part II of Schedule 7.16 (and meets the requirements specified in the
immediately succeeding sentence)). Part II of Schedule 7.16 lists each
Subsidiary of Starwood REIT, SLT RLP, the Corporation and/or SLC OLP which, on
the Initial Borrowing Date, shall not be a Guarantor, which Schedule shall
specify the reason the respective such Subsidiary is not required to be a
Guarantor (which reason must be (x) that (i) the respective Subsidiary is a
Preferred Stock Subsidiary, (ii) the
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respective Subsidiary is a gaming Subsidiary where approvals (which were not
obtained on or prior to the Initial Borrowing Date) of the relevant gaming
authorities are required for the respective gaming Subsidiary to become a
Guarantor, (iii) that the respective Subsidiary is a Foreign Subsidiary or (iv)
that the respective Subsidiary is ESI, WD Parent Corp. or Assigned Starwood
Note LLC or (y) otherwise acceptable to the Lead Agents and the Required
Lenders).
7.17 Equity Pledges. Schedule 7.17 indicates, as of the
Initial Borrowing Date, whether the Capital Stock of each Subsidiary or
Unconsolidated Entity listed on Schedule 7.14 is pledged (as of the Initial
Borrowing Date) pursuant to the Pledge and Security Agreement. If the Capital
Stock of any such Person is not so pledged, Schedule 7.17 shall indicate the
reason therefor (which must be that the respective entity is a gaming
Subsidiary, that the Capital Stock constitutes Margin Stock or another reason
satisfactory to the Lead Agents and the Required Lenders in their sole
discretion). Furthermore, in the case of any Foreign Subsidiary of any Credit
Party, Schedule 7.17 may indicate that not more than 65% of the total combined
voting equity or its equivalent of such Foreign Subsidiary is required to be
pledged (although non-voting equity or its equivalent owned by any Credit Party
shall be required to be pledged).
7.18 No Burdensome Restrictions; No Defaults. (a) No Credit
Party nor any of its Subsidiaries (i) is a party to any Contractual Obligation
the compliance with which would have a Material Adverse Effect or the
performance of which by any thereof, either unconditionally or upon the
happening of an event, will result in the creation of a Lien (excluding
Permitted Liens) on the property or Assets of any Credit Party or its
Subsidiaries, or (ii) is subject to any charter or corporate restriction which
has a Material Adverse Effect.
(b) No Credit Party or Subsidiary of any Credit Party is
in default under or with respect to any Contractual Obligation owed by it and,
to the knowledge of the Borrowers, no other party is in default under or with
respect to any Contractual Obligation owed to any Credit Party or to any
Subsidiary of a Credit Party, other than those defaults which in the aggregate
have, and will have, no Material Adverse Effect.
(c) There is no Requirement of Law the compliance with
which by any Credit Party or any Credit Party Subsidiary would have a Material
Adverse Effect.
(d) As of the date hereof, no Credit Party and no
Subsidiary of any Credit Party is subject to any Contractual Obligation (other
than (x) as a result of the provisions of this Agreement and the other Credit
Documents or (y) as specifically described in Schedule 7.18) restricting or
limiting its ability to transfer its assets to any Credit Party or to declare
or make any dividend payment or other distribution on account of any shares of
any class of its Capital Stock or its ability to purchase, redeem, or otherwise
acquire for value or make any payment in respect of any such shares or any
shareholder rights.
7.19 Compliance with Statutes, etc. Each Borrower and each
of its Subsidiaries is in compliance with all Requirements of Law (including,
without limitation, all applicable Gaming Regulations), except such
noncompliances as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.
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7.20 Investment Company Act. Neither any Credit Party nor
any Credit Party Subsidiary is an "investment company" or a company
"controlled" by an "investment company," within the meaning of the Investment
Company Act of 1940, as amended.
7.21 Public Utility Holding Company Act. Neither any Credit
Party nor any Credit Party Subsidiary is a "holding company," or a "subsidiary
company" of a "holding company," or an "affiliate" of a "holding company" or of
a "subsidiary company" of a "holding company" within the meaning of the Public
Utility Holding Company Act of 1935, as amended.
7.22 Environmental Matters. (a) Without in any way limiting
anything contained in this Section 7.22, Schedule 7.22 sets forth a disclosure
of certain Environmental Matters as of the date hereof. Each Borrower and each
of its Subsidiaries have complied with, and on the date of such Credit Event
are in compliance with, all applicable Environmental Laws and the requirements
of any permits issued under such Environmental Laws. There are no pending or,
to the best knowledge of each Borrower, threatened Environmental Claims against
any Borrower or any of its Subsidiaries (including any such Environmental Claim
arising out of the ownership or operation by any Borrower or any of its
Subsidiaries of any Real Property no longer owned by any Borrower or any of its
Subsidiaries) or any Real Property owned or operated by any Borrower or any of
its Subsidiaries. There are no facts, circumstances, conditions or occurrences
with respect to the business or operations of any Borrower or any of its
Subsidiaries or any Real Property owned or operated by any Borrower or any of
its Subsidiaries (including any Real Property formerly owned or operated by any
Borrower or any of its Subsidiaries but no longer owned by any Borrower or any
of its Subsidiaries) or, to the best knowledge of any Borrower, any real
property adjoining or adjacent to any such Real Property that would reasonably
be expected (i) to form the basis of an Environmental Claim against any
Borrower or any of its Subsidiaries or any Real Property owned or operated by
any Borrower or any of its Subsidiaries, or (ii) to cause any Real Property
owned or operated by any Borrower or any of its Subsidiaries to be subject to
any restrictions imposed by Environmental Laws on the nature of the use or the
transferability of such Real Property by any Borrower or any of its
Subsidiaries under any applicable Environmental Law.
(b) Hazardous Materials have not been generated, used,
treated or stored on, or transported to or from, any Real Property owned or
operated by any Borrower or any of its Subsidiaries where such generation, use,
treatment, storage or transportation has violated or would reasonably be
expected to violate any applicable Environmental Law. Hazardous Materials have
not been Released on or from any Real Property owned or operated by any
Borrower or any of its Subsidiaries where such Release has violated or would
reasonably be expected to violate any applicable Environmental Law.
(c) Notwithstanding anything to the contrary in preceding
clauses (a) and (b) of this Section 7.22, the representations made in preceding
clauses (a) and (b) of this Section 7.22 shall not be untrue unless the
aggregate effect of all violations, Environmental Claims, facts, circumstances,
conditions, occurrences, restrictions, failures and noncompliances subject to
or governed by Environmental Laws would reasonably be expected to have a
Material Adverse Effect.
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7.23 Labor Relations. No Borrower or any of its Subsidiaries
is engaged in any unfair labor practice that could reasonably be expected to
have a Material Adverse Effect. There is (i) no unfair labor practice
complaint pending against any Borrower, any of its Subsidiaries or, to the best
knowledge of each Borrower, threatened against any of them, before the National
Labor Relations Board, and no grievance or arbitration proceeding arising out
of or under any collective bargaining agreement is so pending against any
Borrower or any of its Subsidiaries or, to the best knowledge of each Borrower,
threatened against any of them, (ii) no strike, labor dispute, slowdown or
stoppage pending against any Borrower or any of its Subsidiaries or, to the
best knowledge of each Borrower, threatened against any Borrower or any of its
Subsidiaries and (iii) to the best knowledge of each Borrower, no union
representation question existing with respect to the employees of any Borrower
or any of its Subsidiaries and, to the best knowledge of each Borrower, no
union organizing activities are taking place, except (with respect to any
matter specified in clause (i), (ii) or (iii) above, either individually or in
the aggregate) such as could not reasonably be expected to have a Material
Adverse Effect.
7.24 Patents, Licenses, Franchises and Formulas. Each
Borrower and each of its Subsidiaries owns, or has the right to use, all the
patents, trademarks, permits, service marks, trade names, copyrights, licenses,
franchises, proprietary information (including but not limited to rights in
computer programs and databases) and formulas, or other rights with respect to
the foregoing, or has obtained assignments of all leases and other rights of
whatever nature, necessary for the present conduct of its business, without any
known conflict with the rights of others which, or the failure to obtain which,
as the case may be, could reasonably be expected to result in a Material
Adverse Effect.
7.25 Existing Indebtedness. Schedule 7.25 sets forth a true
and complete list of all Indebtedness of Starwood REIT, SLT RLP, the
Corporation and each of their Subsidiaries as of the Initial Borrowing Date and
which is to remain outstanding after giving effect to the Transaction
(excluding the Loans, the Letters of Credit, the Senior Secured Bridge Notes
and the Intercompany Mortgage Note, the "Existing Indebtedness"), in each case,
showing the aggregate principal amount thereof and the name of the respective
borrower and any Credit Party or any of its Subsidiaries which directly or
indirectly guaranteed such debt and describing any security therefor. Part I
of Schedule 7.25 lists all Existing Indebtedness owed to any Person other than
the Credit Parties and their Subsidiaries (collectively, "Third Party Existing
Indebtedness") and Part II of Schedule 7.25 lists all Existing Indebtedness
(with such normal fluctuations in the principal amount thereof since the date
of such Schedule) owed to any other Credit Party or any Subsidiary thereof (the
"Intercompany Existing Indebtedness").
7.26 Transaction. At the time of consummation thereof, the
Transaction shall have been consummated in all material respects in accordance
with the terms of the respective Documents and all applicable laws. At the
time of consummation thereof, all material consents and approvals of, and
filings and registrations with, and all other actions in respect of, all
governmental agencies, authorities or instrumentalities required in order to
make or consummate the Transaction to the extent then required have been
obtained, given, filed or taken and are or will be in full force and effect (or
effective judicial relief with respect thereto has been obtained). All
applicable waiting periods with respect thereto have or, prior to the time when
required, will have, expired without, in all such cases, any action being taken
by any competent authority which
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restrains, prevents, or imposes material adverse conditions upon the
Transaction. Additionally, there does not exist any judgment, order or
injunction prohibiting or imposing material adverse conditions upon the
Transaction, or the occurrence of any Credit Event or the performance by any
Credit Party of its obligations under the Documents to which it is party.
7.27 Intercompany Mortgage Note; Assigned Starwood Note. (a)
The subordination provisions contained in the Intercompany Mortgage Note, and
in the Subordination Agreement relating thereto, are enforceable by the Lenders
against Starwood REIT and its Subsidiaries (to the extent same hold the
Intercompany Mortgage Note) and the Corporation and its Subsidiaries, and all
Obligations hereunder and under the Credit Documents are or will be senior in
right of payment to the Intercompany Mortgage Note and within the definitions
of "Senior Indebtedness," "Senior Debt" and any other similar terms, as
appropriate, included in the provisions of the Intercompany Mortgage Note and
the related Subordination Agreement.
(b) The subordination provisions contained in the
Assigned Starwood Note, and in the Subordination Agreement relating thereto,
are enforceable by the Lenders against the Corporation and its Subsidiaries (to
the extent same hold the Assigned Starwood Note) and Assigned Starwood Note
LLC, and all Obligations hereunder and under the Credit Documents are or will
be senior in right of payment to the Assigned Starwood Note and within the
definitions of "Senior Indebtedness," "Senior Debt" and any other similar
terms, as appropriate, included in the provisions of the Assigned Starwood Note
and the related Subordination Agreement.
7.28 Status as a REIT. Starwood REIT is organized in
conformity with the requirements for qualification as a real estate investment
trust under the Code and is grandfathered from the application of Section
269B(a)(3) of the Code pursuant to Section 136(c)(3) of the Deficit Reduction
Act of 1984. Starwood REIT has met all of the requirements for qualification
as a real estate investment trust under the Code for its Fiscal Year ended
December 31, 1997. Starwood REIT is in a position to qualify for its current
Fiscal Year as a real estate investment trust under the Code and its proposed
methods of operation will enable it to so qualify.
7.29 Assets of Starwood REIT. The sole material asset of
Starwood REIT is its general partnership interest in SLT RLP and such other
assets that may be incidental to or required in connection with the ownership
of such general partnership interest or as set forth on Schedule 7.29.
Starwood REIT is the sole general partner of SLT RLP.
7.30 SLC OLP. The Corporation is the sole general partner
of SLC OLP.
7.31 Stock. Starwood REIT and the Corporation list their
outstanding shares of common stock (other than the Westin Acquisition Shares,
the UBS Shares, and except for similar issuances after the Initial Borrowing
Date) on the New York Stock Exchange and such shares trade as "paired shares"
subject to a pairing agreement between Starwood REIT and the Corporation.
7.32 Westin Acquisition. The Westin Acquisition was
consummated in all material respects in accordance with the terms of the Westin
Acquisition Documents and all applicable laws. At the time of consummation
thereof, all material consents and approvals of, and
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filings and registrations with, and all other actions in respect of, all
governmental agencies, authorities or instrumentalities required in order to
make or consummate the Westin Acquisition (to the extent then required) were
obtained, given, filed or taken and were in full force and effect (or effective
judicial relief with respect thereto had been obtained). All applicable
waiting periods with respect thereto expired without, in all such cases, any
action being taken by any competent authority which restrained, prevented, or
imposed material adverse conditions upon the Westin Acquisition.
7.33 ITT Indenture. Each Subsidiary of ITT has, prior to the
Initial Borrowing Date, been designated as an Unrestricted Subsidiary for
purposes of, and as defined in, the ITT Indenture.
7.34 WD Disposition. The WD Disposition was consummated in
compliance with all applicable laws and in all material respects as described
in the WD Memorandum previously delivered to the Lenders. At the time of the
consummation thereof, all material consents and approvals of, and filings and
registrations with, and all other actions in respect of, all governmental
agencies, authorities or instrumentalities required in order to make or
consummate the WD Disposition (to the extent then required) were obtained,
given, filed or taken and were in full force and effect (or effective judicial
relief with respect thereto had been obtained). All applicable waiting periods
with respect thereto expired without, in all such cases, any action being taken
by any competent authority which restrained, prevented or imposed material
adverse conditions upon the WD Disposition. The ownership of the various
entities listed in the chart in the WD Memorandum was, after the consummation
of the WD Disposition and on the Initial Borrowing Date, as described in the WD
Memorandum and in said chart and (i) $2,092,500,000 of cash proceeds were
received by third-party lenders to the REIT Borrowers from the WD Disposition
and (ii) the Assigned Starwood Note is, on the Initial Borrowing Date,
evidenced by a promissory note (and by no other documents, except the related
Subordination Agreement in the form furnished to the Lead Agents and the
Lenders and found acceptable to them, which note is subordinated as required by
Section 5.17.
SECTION 8. Affirmative Covenants. Each Borrower hereby
covenants and agrees that on and after the Effective Date and until the Total
Commitment and all Letters of Credit have terminated and the Loans, Notes and
Unpaid Drawings, together with interest, Fees and all other Obligations (other
than contingent indemnification obligations) incurred hereunder and thereunder,
are paid in full:
8.01 Information Covenants. The Borrowers will furnish to
the Lenders:
(a) Quarterly Financial Statements. Within 45 days after
the close of the first three quarterly accounting periods in each fiscal year
of the Parent Companies, (i) (1) the consolidated and consolidating balance
sheets of each of (x) Starwood REIT and its Subsidiaries and (y) the
Corporation and its Subsidiaries and (2) the combined consolidated and
consolidating balance sheets of Starwood REIT and the Corporation (and their
respective Subsidiaries), each as at the end of such quarterly accounting
period, and the related separate and combined consolidated and consolidating
statements of income and retained earnings and statement of cash flows for such
quarterly accounting period and for the elapsed portion of the fiscal year
ended with the last day
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of such quarterly accounting period, in each case setting forth comparative
figures for the related periods in the prior fiscal year, all of which shall be
certified by the chief financial officer of Starwood REIT or the Corporation,
as the case may be (or by the chief financial officer of both Parent Companies
in the case of the combined financial statements), subject to normal year-end
audit adjustments and the absence of footnotes and (ii) management's discussion
and analysis of the important operational and financial developments during the
quarterly and year-to-date periods.
(b) Annual Financial Statements. Within 90 days after
the close of each fiscal year of the Parent Companies, (i) (1) the consolidated
and consolidating balance sheets of each of (x) Starwood REIT and its
Subsidiaries and (y) the Corporation and its Subsidiaries and (2) the combined
consolidated and consolidating balance sheets of Starwood REIT and the
Corporation (and their respective Subsidiaries), each as at the end of such
fiscal year, and the related separate and combined consolidated and
consolidating statements of income and retained earnings and of cash flows for
such fiscal year setting forth comparative figures for the preceding fiscal
year and certified (x) in the case of the separate and combined consolidating
financial statements, by the chief financial officer of Starwood REIT or the
Corporation, as the case may be (or by the chief financial officer of both
Parent Companies in the case of the combined financial statements), and (y) in
the case of the separate and combined consolidated financial statements, by
independent certified public accountants of recognized national standing
reasonably acceptable to the Paying Agent, together with a report of such
accounting firm stating that in the course of its regular audit of the
respective financial statements, which audit was conducted in accordance with
generally accepted auditing standards, such accounting firm obtained no
knowledge of any Default or Event of Default which has occurred and is
continuing or, if in the opinion of such accounting firm such a Default or
Event of Default has occurred and is continuing, a statement as to the nature
thereof and (ii) management's discussion and analysis of the important
operational and financial developments during the respective Fiscal Year.
(c) Management Letters. Promptly after any Borrower's or
any of its Subsidiaries' receipt thereof, a copy of any "management letter"
addressed to the board of directors (or other appropriate Person or group) of
such Borrower or such Subsidiary from its certified public accountants and the
management's responses thereto.
(d) Budgets. (x) On the earlier of (i) January 31 of
each Fiscal Year and (ii) the fifth day after the board of directors of the
respective Parent Company approves such budget, a budget (including budgeted
statements of income and sources and uses of cash and balance sheets) for such
Fiscal Year prepared by the Parent Companies (on a combined basis) in summary
form and (y) no later than March 31 of each Fiscal Year, a budget (including
budgeted statements of income and sources and uses of cash and balance sheets)
for each of the four fiscal quarters of such Fiscal Year prepared by the
Parent Companies (on a combined basis) in reasonable detail, in each case in
form reasonably satisfactory to the Paying Agent and accompanied by the
statement of a senior financial officer of both Starwood REIT and the
Corporation to the effect that, to the best of his knowledge, the budget is a
reasonable estimate for the period covered thereby.
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(e) Officer's Certificates. At the time of the delivery
of the financial statements provided for in Sections 8.01(a) and (b), a
certificate of the chief financial officer of each of Starwood REIT and the
Corporation, in form satisfactory to the Lead Agents, to the effect that, to
the best of such officer's knowledge, no Default or Event of Default has
occurred and is continuing or, if any Default or Event of Default has occurred
and is continuing, specifying the nature and extent thereof, which certificate
shall (x) set forth in reasonable detail the calculations required to establish
whether the Borrowers and their Subsidiaries were in compliance with the
provisions of Sections 4.02, 9.02, 9.03, 9.04, 9.05 and 9.07 through 9.11,
inclusive, at the end of such fiscal quarter or year, as the case may be, (y)
set forth the calculations required to establish the Applicable Margin and
Applicable Commitment Commission Percentage and (z) if delivered with the
financial statements required by Section 8.01(b), set forth in reasonable
detail the amount of Excess Cash Flow for the relevant Excess Cash Payment
Period.
(f) Notice of Default or Litigation. Promptly, and in
any event within five Business Days (or ten Business Days in the case of
following clause (ii)) after any Authorized Officer of any Borrower obtains
actual knowledge thereof, notice of (i) the occurrence of any event which
constitutes a Default or an Event of Default and (ii) any litigation or
governmental investigation or proceeding pending (x) against any Borrower or
any of its Subsidiaries which could reasonably be expected to have a Material
Adverse Effect, (y) with respect to any material Indebtedness of any Borrower
or any of its Subsidiaries or (z) with respect to any Document.
(g) Other Reports and Filings. Promptly after the filing
or delivery thereof, copies of all financial information, proxy materials and
reports, if any, which any Borrower or any of its Subsidiaries shall publicly
file with the Securities and Exchange Commission or any successor thereto (the
"SEC") or shall deliver to its shareholders or to holders of its Indebtedness
pursuant to the terms of the documentation governing such Indebtedness (or any
trustee, agent or other representative therefor).
(h) Environmental Matters. Promptly upon, and in any
event within fifteen Business Days after, an Authorized Officer of any Borrower
obtains knowledge thereof, notice of one or more of the following matters
subject to or governed by Environmental Laws, unless such environmental matters
would not, individually or when aggregated with all other such environmental
matters, be reasonably expected to have a Material Adverse Effect:
(i) any pending or threatened Environmental Claim against such
Borrower or any of its Subsidiaries or any Real Property owned or
operated by such Borrower or any of its Subsidiaries;
(ii) any condition or occurrence on or arising from any Real
Property owned or operated by such Borrower or any of its Subsidiaries
that (a) results in noncompliance by such Borrower or any of its
Subsidiaries with any applicable Environmental Law or (b) would
reasonably be expected to form the basis of an Environmental Claim
against such Borrower or any of its Subsidiaries or any such Real
Property;
(iii) any condition or occurrence on any Real Property owned or
operated by such Borrower or any of its Subsidiaries that could
reasonably be expected to cause such Real
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Property to be subject to any restrictions on the nature of the use or
transferability by the respective Borrower or any of its Subsidiaries
of such Real Property under any Environmental Law; and
(iv) the taking of any removal or remedial action in response
to the actual or alleged presence of any Hazardous Materials on any
Real Property owned or operated by such Borrower or any of its
Subsidiaries as required by any Environmental Law or any Governmental
Authority (with the items described in this clause (iv) and above in
preceding clauses (i) through (iii) being herein called, collectively,
"Environmental Matters").
All such notices shall describe in reasonable detail the
nature of the respective Environmental Matter and the respective Borrower's or
such Subsidiary's intended response thereto. In addition, each Borrower or any
of its Subsidiaries will provide the Lenders with copies of all communications
between such Borrower or any of its Subsidiaries and any Governmental Authority
relating to Environmental Laws which could reasonably be expected to have a
Material Adverse Effect, all notices of any Environmental Claims, and such
detailed reports of any outstanding Environmental Claim as may reasonably be
requested by the Lenders; provided, that in any event each Borrower and its
Subsidiaries shall deliver to the Lenders all notices received by such Borrower
or any of its Subsidiaries from any Governmental Authority under, or pursuant
to, CERCLA which identify such Borrower or any of its Subsidiaries as
potentially responsible parties for remediation costs or which otherwise notify
such Borrower or any of its Subsidiaries of potential liability under CERCLA.
(i) Annual Meetings with Lenders. At the request of any
Lead Agent, at a date to be mutually agreed upon between the Lead Agents and
the Parent Companies occurring on or prior to the 120th day after the close of
each Fiscal Year, the Parent Companies shall hold a meeting with all of the
Lenders at which meeting shall be reviewed the financial results of the
previous Fiscal Year and the financial condition of the Parent Companies and
their Subsidiaries and the budgets presented for the current Fiscal Year.
(j) Other Information. From time to time, such other
information or documents (financial or otherwise) with respect to any Borrower
or any of its Subsidiaries as either Lead Agent or any Lender may reasonably
request.
8.02 Books, Records and Inspections. Each Borrower will, and
will cause each of its Subsidiaries to, keep proper books of record and
accounts in which full, true and correct entries in conformity with generally
accepted accounting principles and all requirements of law shall be made of all
dealings and transactions in relation to its business and activities. Upon
prior notice, each Borrower will, and will cause each of its Subsidiaries to,
permit officers and designated representatives of any Lead Agent or any Lender
to visit and inspect, during regular business hours and under guidance of
officers of such Borrower or such Subsidiary, any of the properties of such
Borrower or such Subsidiary, and to examine the books of account of such
Borrower or such Subsidiary and discuss the affairs, finances and accounts of
such Borrower or such Subsidiary with, and be advised as to the same by, its
and their officers and independent
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accountants, all at such reasonable times and intervals and to such reasonable
extent as such Lead Agent or such Lender may request.
8.03 Maintenance of Insurance. (a) Each Borrower and its
Subsidiaries shall (i) maintain with financially sound and reputable insurance
companies insurance on itself and its properties in commercially reasonable
amounts, and (ii) furnish to the Paying Agent and the Lenders from time to
time, upon written request, certificates of insurance or certified copies or
abstracts of all insurance policies required under this Agreement and the other
Credit Documents and such other information relating to such insurance as the
Paying Agent or any Lender may reasonably request.
(b) With respect to each Hotel and Real Property Asset,
each Borrower and its Subsidiaries, as applicable shall obtain and maintain, or
cause to be maintained, insurance providing at least the following coverages:
(i) comprehensive all risk insurance on the Improvements and
the Personal Property, including contingent liability from Operation
of Building Laws, Demolition Costs and Increased Cost of Construction
Endorsements, in each case (A) in an amount equal to 100% of the
"Full Replacement Cost," which for purposes of this Agreement shall
mean actual replacement value (exclusive of costs of excavations,
foundations, underground utilities and footings) with a waiver of
depreciation; (B) containing an agreed amount endorsement with
respect to the Improvements owned or leased by such Borrower or such
Subsidiary and Personal Property or a waiver of all co-insurance
provisions; (C) providing for no deductible in excess of $1,000,000
(or $15,000,000 in the case of earthquake and wind damage); and (D)
containing an "Ordinance or Law Coverage" or "Enforcement"
endorsement if any of the Improvements or the use of the Asset shall
at any time constitute legal non-conforming structures or uses. The
Full Replacement Cost shall be redetermined from time to time (but
not more frequently than once in any twelve (12) calendar months) at
the request of the Paying Agent by an appraiser or contractor
designated and paid such Borrower or such Subsidiary and approved by
the Paying Agent, or by an engineer or appraiser in the regular
employ of the insurer. Notwithstanding the foregoing, if such
redetermination is based on an appraisal, the cost thereof shall be
paid by the respective Borrower or the related Subsidiary. After the
first appraisal, additional appraisals may be based on construction
cost indices customarily employed in the trade and shall be the
respective Borrower's or the related Subsidiary's expense. No
omission on the part of Paying Agent to request any such
ascertainment shall relieve any Borrower or any Subsidiary of any of
its obligations under this Section 8.03(b)(i). In addition, each
Borrower and its Subsidiaries shall obtain (x) flood hazard insurance
if any portion of the Improvements is currently or at any time in the
future located in a federally designated "special flood hazard area"
and (y) earthquake insurance in amounts and in form and substance
reasonably satisfactory to the Paying Agent (but in no event less
than the Probable Maximum Loss determined by consultants reasonably
satisfactory to the Paying Agent) in the event the Asset is located
in an area with a high degree of seismic activity, or otherwise as
required by the Paying Agent, provided that the insurance pursuant to
clauses (x) and (y) hereof shall be on terms consistent with the
comprehensive all risk insurance policy required under this
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Section 8.03(b)(i), except that the deductible on such insurance and
on wind insurance if the Asset is located in a coast line area, shall
not be in excess of five percent (5%) of the appraised value of the
Asset;
(ii) commercial general liability insurance against claims for
personal injury, bodily injury, death or property damage occurring
upon, in or about the Asset, including "Dram Shop" or other liquor
liability coverage if alcoholic beverages are sold from or may be
consumed at the Asset, such insurance (A) to be on the so-called
"occurrence" form with a combined single limit of not less than
$1,000,000 or such greater amount or may be generally required by
institutional lenders for hotels comparable to the Asset; (B) to
continue at not less than the aforesaid limit until required to be
changed by the Paying Agent or the Required Lenders in writing by
reason of changed economic conditions making such protection
inadequate; and (C) to cover at least the following hazards: (1)
premises and operations; (2) products and completed operations on an
"if any" basis; (3) independent contractors; and (4) blanket
contractual liability for all written and oral contracts;
(iii) business income and rent loss insurance (A) covering all
risks required to be covered by the insurance provided for in Section
8.03(b)(i); (B) containing an extended period of indemnity
endorsement which provides that from and after the physical loss to
the Improvements and Personal Property has been repaired, the
continued loss of income will be insured until such income either
returns to the same level it was at prior to the loss, or the
expiration of twelve (12) months from the date of the loss, whichever
first occurs, and notwithstanding that the policy may expire prior to
the end of such period; and (C) in an amount equal to 100% of the
projected gross income from the Asset for a period of twelve (12)
months, determined prior to the date hereof and at least once each
year thereafter based on the greatest of: (x) the respective
Borrower's reasonable estimate of the gross income from the Asset,
which estimate shall be reasonably satisfactory to the Paying Agent
and (y) the gross income set forth in the financial statements
delivered to the Lenders in accordance with this Agreement;
(iv) at all times during which structural construction, repairs
or alterations are being made with respect to the Improvements (A)
owner's contingent or protective liability insurance covering claims
not covered by or under the terms or provisions of the above
mentioned commercial general liability insurance policy; and (B) the
insurance provided for in Section 8.03(b)(i) written in a so-called
builder's risk completed value form (1) on a non-reporting basis, (2)
against all risks insured against pursuant to Section 8.03(b)(i), (3)
including permission to occupy the Asset, and (4) with an agreed
amount endorsement or a waiver of coinsurance provisions;
(v) workers' compensation, subject to the statutory limits of
the jurisdiction (domestic or foreign) in which the Asset is located,
and employer's liability insurance (A) with a limit per accident and
per disease per employee, and (B) in an amount for disease aggregate
in respect of any work or operations on or about the Asset, or in
connection with the Asset or its operation (if applicable), in each
case reasonably required by the Paying Agent;
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(vi) comprehensive boiler and machinery insurance, if
applicable, in amounts as shall be reasonably required by the Paying
Agent on terms consistent with the comprehensive all risk insurance
policy required under Section 8.03(b)(i);
(vii) umbrella liability insurance in an amount not less than
$250,000,000 per occurrence or such greater amount as may be
generally required by institutional lenders for hotels comparable to
the Asset on terms consistent with the commercial general liability
insurance policy required under Section 8.03(b)(ii);
(viii) motor vehicle liability coverage for all owned and
non-owned vehicles, including rented and leased vehicles containing
minimum limits per occurrence of $5,000,000;
(ix) a blanket fidelity bond coverage insuring, among other
things, against losses resulting from dishonest or fraudulent acts
including, but not limited to, computer fraud, committed by (A) any
Borrower's or any of its Subsidiaries' personnel; (B) any employees
of outside firms that provide appraisal, legal, data processing or
other services for any Borrower or any of its Subsidiaries or (C)
temporary contract employees or student interns;
(x) such other insurance and in such amounts as are required
pursuant to any franchise agreements or as any Lead Agent from time
to time may reasonably request against such other insurable hazards
which are generally required by institutional lenders for hotels
comparable to the Asset or which are commonly insured against for
property similar to the Asset located in or around the region in
which the Asset is located;
(xi) insurance against terrorist acts in amounts reasonably
satisfactory to the Paying Agent, which may be covered by a standard
all-risk policy; and
(xii) fiduciary liability insurance and directors and officers
liability insurance in amounts and in form and substance reasonably
satisfactory to the Paying Agent.
(c) All insurance provided for in Section 8.03(b) hereof
shall be obtained under valid and enforceable policies (the "Policies" or in
the singular, the "Policy"), and shall be subject to the reasonable approval of
the Paying Agent as to insurance companies, amounts, forms, deductibles, loss
payees and insurers. The Policies shall be issued by financially sound and
responsible insurance companies authorized to do business in the jurisdiction
(domestic or foreign) in which the Real Property Asset is located and approved
by the Paying Agent. Each insurance company must have a rating of "A" or
better for claims paying ability assigned by S&P or, if S&P does not assign a
rating for such insurance company, such insurance company must have a general
policy rating of A or better and a financial class of VIII or better by A.M.
Best Company, Inc. (each such insurer shall be referred to below as a
"Qualified Insurer"). Notwithstanding the foregoing, Commonwealth Insurance
Company ("Commonwealth") shall be deemed a Qualified Insurer with respect to
the excess liability insurance described in Section 8.03(b)(vii) so long as
Commonwealth has a general policy rating of A or better and a financial class
of VII or better by A.M. Best Company Inc. Not less than thirty (30) days
prior to the expiration dates of the Policies theretofor furnished to the
Paying Agent pursuant to Section 8.03(b), certified copies of
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the Policies marked "premium paid" or accompanied by evidence reasonably
satisfactory to the Paying Agent of payment of the premiums due thereunder (the
"Insurance Premiums"), shall be delivered by each Borrower and its Subsidiaries
to the Paying Agent; provided, however, that in the case of renewal Policies,
each Borrower and its Subsidiaries may furnish the Paying Agent with binders
therefor to be followed by the original Policies when issued.
(d) No Borrower nor any Subsidiary of any Borrower shall
obtain duplicate or separate casualty insurance policy(s) relating to the
Assets. Any so called "blanket" insurance policy(s) covering the Assets shall
provide at a minimum the same protection as would a separate policy insuring
any individual Asset in full compliance with the provisions of Section 8.03(b)
and issued by a Qualified Insurer. In the event any Borrower or any of its
Subsidiaries obtains separate insurance or an umbrella or a blanket Policy,
such Borrower or such Subsidiary shall notify the Paying Agent of the same and
shall cause certified copies of each Policy to be delivered as required in
Section 8.03(b). Any blanket insurance Policy shall (a) specifically allocate
to the Asset the amount of coverage from time to time required hereunder or (b)
be written on an occurrence basis for the coverages required hereunder with a
limit per occurrence in an amount equal to the amount of coverage required
hereunder and shall otherwise provide the same protection as would a separate
Policy insuring only the Asset in compliance with the provisions of Section
8.03(b).
(e) All Policies of insurance provided for in Section
8.03(b) shall contain clauses or endorsements to the effect that:
(i) the Policy shall not be materially changed (other than to
increase the coverage provided thereby) or canceled without at least
30 days' written notice to the Paying Agent and any other party named
therein as an insured; and
(ii) each Policy shall provide that the issuers thereof shall
give written notice to the Paying Agent if the Policy has not been
renewed thirty (30) days prior to its expiration.
(f) The Parent Companies shall furnish to the Paying
Agent and to each Lender, on or before thirty (30) days after the renewal of
any Policy, a statement certified by a duly authorized officer of the Parent
Companies of the amounts of insurance maintained in compliance herewith, of the
risks covered by such insurance and of the insurance company or companies which
carry such insurance, and, if requested by any Lead Agent or the Required
Lenders, copies of the Policies and verification of the adequacy of such
insurance by an independent insurance broker or appraiser acceptable to the
Lead Agents.
8.04 Corporate Franchises. Each Borrower will, and will
cause each of its Subsidiaries to, do or cause to be done, all things necessary
to preserve and keep in full force and effect its existence and its material
rights, franchises, licenses and patents; provided, however, that nothing in
this Section 8.04 shall prevent (i) transactions permitted under Section 9.02,
(ii) the liquidation of any Subsidiary of a Borrower (which Subsidiary is not
itself a Borrower) if the Parent Companies determine that such liquidation
could not reasonably be expected to have a Material Adverse Effect or (iii) the
withdrawal by any Borrower or any of its Subsidiaries of its
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qualification as a foreign corporation in any jurisdiction where such
withdrawal would not reasonably be expected to have a Material Adverse Effect.
8.05 Compliance with Statutes, etc. Each Borrower will, and
will cause each of its Subsidiaries to, comply with all Requirements of Law
(including without limitation all applicable Gaming Regulations), except such
noncompliances as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.
8.06 Compliance with Environmental Laws. (a) Each Borrower
will comply, and will cause each of its Subsidiaries to comply, with all
Environmental Laws applicable to the ownership or use of its Real Property now
or hereafter owned or operated by such Borrower or any of its Subsidiaries,
except for any non-compliance that could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, will promptly pay or
cause to be paid all costs and expenses incurred in connection with such
compliance, and will keep or cause to be kept all such Real Property free and
clear of any Liens (except Permitted Liens) imposed pursuant to such
Environmental Laws. No Borrower nor any of its Subsidiaries will generate,
use, treat, store, release or dispose of, or permit the generation, use,
treatment, storage, release or disposal of Hazardous Materials on any Real
Property now or hereafter owned or operated by such Borrower or any of its
Subsidiaries, or transport or permit the transportation of Hazardous Materials
to or from any such Real Property, except for Hazardous Materials generated,
used, treated, stored, released or disposed of at, or transported to or from,
any such Real Properties in compliance in all material respects with all
applicable Environmental Laws and as is reasonably required in connection with
the operation, use and maintenance of the business or operations of such
Borrower or any of its Subsidiaries.
(b) At the written request of any Lead Agent or the
Required Lenders, which request shall specify in reasonable detail the basis
therefor, at any time and from time to time, the respective Borrower will
provide, at its sole cost and expense, an environmental site assessment report
concerning any Real Property owned or operated by such Borrower and its
Subsidiaries, prepared by an environmental consulting firm reasonably
acceptable to the Lead Agents, indicating the presence or absence of Hazardous
Materials and the estimated reasonably likely cost of any removal or remedial
action required under Environmental Laws in connection with such Hazardous
Materials on such Real Property, provided that in no event shall such request
be made more often than once every two years for any particular Real Property
unless either (i) an Event of Default shall be in existence or (ii) the Lenders
receive notice under Section 8.01(i) of any Environmental Matter for which
notice is required to be delivered for any such Real Property. If any Borrower
fails to provide the same within ninety days after such request was made, the
Paying Agent may order the same, the cost of which shall be borne, jointly and
severally, by the Borrowers, and each Borrower shall grant and hereby grants to
the Lead Agents and the Lenders and their agents access to such Real Property
and specifically grant the Lead Agents and the Lenders an irrevocable
non-exclusive license, subject to the rights of tenants, to undertake such an
assessment using a nationally recognized environmental consulting firm
reasonably acceptable to the Lead Agent at any reasonable time upon reasonable
notice to the Parent Companies, all at the sole cost and reasonable expense of
the Borrowers.
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8.07 ERISA. As soon as reasonably practicable and, in any
event, within fifteen (15) days after any Borrower, any Subsidiary of any
Borrower or any ERISA Affiliate knows or has reason to know of the occurrence
of any of the following, the Parent Companies will deliver, or cause to be
delivered, to the Lenders a certificate of the chief financial officer of the
respective Borrower setting forth the reasonable details as to such occurrence
and the action, if any, that such Borrower, such Subsidiary or such ERISA
Affiliate is required or proposes to take, together with any notices required
or proposed to be given or filed by such Borrower, such Subsidiary, the Plan
Administrator or such ERISA Affiliate to or with the PBGC or any other
government agency, or a Plan participant and any notices received by such
Borrower, such Subsidiary or ERISA Affiliate from the PBGC or any other
government agency, or a Plan participant with respect thereto: that a
Reportable Event has occurred (except to the extent that any Borrower has
previously delivered to the Lenders a notice (if any) concerning such event
pursuant to the next clause hereof); that a contributing sponsor (as defined in
Section 4001(a)(13) of ERISA) of a Plan subject to Title IV of ERISA is subject
to the advance reporting requirement of PBGC Regulation Section 4043.61
(without regard to subparagraph (b)(1) thereof), and an event described in
subsection .62, .63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043
is reasonably expected to occur with respect to such Plan within the following
30 days; that an accumulated funding deficiency, within the meaning of Section
412 of the Code or Section 302 of ERISA, has been incurred or an application
may reasonably be expected to be or has been made for a waiver or modification
of the minimum funding standard (including any required installment payments)
or an extension of any amortization period under Section 412 of the Code or
Section 303 or 304 of ERISA with respect to a Plan; that any contribution
required to be made by any Borrower or a Subsidiary of any Borrower or an ERISA
Affiliate with respect to a Plan or Foreign Pension Plan has not been timely
made; that a Plan has been or may be terminated, reorganized, partitioned or
declared insolvent under Title IV of ERISA; that a Plan has an Unfunded Current
Liability; that proceedings may reasonably be expected to be or have been
instituted to terminate or appoint a trustee to administer a Plan which is
subject to Title IV of ERISA; that a proceeding has been instituted pursuant to
Section 515 of ERISA to collect a delinquent contribution to a Plan; that any
Borrower, any Subsidiary of any Borrower or any ERISA Affiliate will or could
reasonably be expected to incur any material increase in liability (including
any indirect, contingent, or secondary liability) to or on account of the
termination of or withdrawal from a Plan under Section 4062, 4063, 4064, 4069,
4201, 4204 or 4212 of ERISA or with respect to a Plan under Section 401(a)(29),
4971, 4975 or 4980 of the Code or Section 409 or 502(i) or 502(l) of ERISA or
with respect to a group health plan (as defined in Section 607(1) of ERISA or
Section 4980B(g)(2) of the Code) under Section 4980B of the Code; or that any
Borrower or any Subsidiary of any Borrower could reasonably be expected to
incur any material increase in liability pursuant to any employee welfare
benefit plan (as defined in Section 3(1) of ERISA) that provides benefits to
retired employees or other former employees (other than as required by Section
601 of ERISA) or any Plan or any Foreign Pension Plan. Each Borrower will
deliver to such Lender (i) upon the request of such Lender, a complete copy of
the annual report (on Internal Revenue Service Form 5500-series) of each Plan
which is not a multiemployer plan (as defined in Section 4001(a)(3) of
ERISA)(including, to the extent required, the related financial and actuarial
statements and opinions and other supporting statements, certifications,
schedules and information) required to be filed with the Internal Revenue
Service and (ii) copies of any records, documents or other information that
must be furnished to the PBGC or any other
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governmental agency with respect to any Plan pursuant to Section 4010 of ERISA.
In addition to any certificates or notices delivered to the Lenders pursuant to
the first sentence hereof, copies of any records, documents or other
information required to be furnished to the PBGC or any other governmental
agency, and any material notices received by any Borrower, any Subsidiary of
any Borrower or any ERISA Affiliate with respect to any Plan or Foreign Pension
Plan shall be delivered to the Lenders no later than fifteen (15) days after
the date such records, documents, and /or information has been furnished to the
PBGC or any other governmental agency or such notice has been received by any
Borrower, any Subsidiary or any ERISA Affiliate, as applicable.
Notwithstanding the foregoing, no statement or notice described in this Section
8.07 shall be required to be provided unless the event or events to which such
statement or notice relate could individually or in the aggregate be expected
to result in liability to the Parent Companies, their Subsidiaries and their
ERISA Affiliates in excess of $2,000,000.
8.08 End of Fiscal Years; Fiscal Quarters. Each Parent
Company will for reporting purposes cause (i) each of its, and each of its
Subsidiaries', fiscal years to end on December 31 of each year and (ii) each of
its, and each of its Subsidiaries', fiscal quarters to end on dates which are
consistent with a fiscal year ending December 31.
8.09 Performance of Obligations. Each Borrower will, and
will cause each of its Subsidiaries to, perform all of its obligations under
the terms of each mortgage, indenture, security agreement and other debt
instrument by which it is bound, except such non-performances as would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
8.10 Maintenance of Properties. Each Borrower will, and
will cause each of its Subsidiaries to, keep all property necessary to the
business of such Borrower and its Subsidiaries in good working order and
condition, ordinary wear and tear excepted.
8.11 REIT Requirements. Starwood REIT shall operate its
business at all times so as to satisfy all requirements necessary to qualify as
a real estate investment trust under Sections 856 through 860 of the Code and
shall at all times maintain its status as grandfathered from the application of
Section 269B(a)(3) of the Code pursuant to Section 136(c)(3) of the Deficit
Reduction Act of 1984. Starwood REIT will maintain adequate records so as to
comply with all record-keeping requirements relating to the qualification of
Starwood REIT as a real estate investment trust as required by the Code and
applicable regulations of the Department of Treasury promulgated thereunder and
will properly prepare and timely file with the Internal Revenue Service all
returns and reports required thereby.
8.12 Payment of Taxes. Each Borrower will, and will cause
each of its Subsidiaries to, pay and discharge, or cause to be paid and
discharged, all taxes, assessments and governmental charges or levies imposed
upon it or upon its income or profits, or upon any properties belonging to it,
prior to the date on which penalties attach thereto, and all lawful claims
which, if unpaid, might become a lien not otherwise permitted under Section
9.01(i); provided that no Borrower nor any of its Subsidiaries will be required
to pay any such tax, assessment, charge, levy or claim which (x) is being
contested in good faith and by appropriate proceedings if it has maintained
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adequate reserves with respect thereto in accordance with generally accepted
accounting principles and (y) would not reasonably be expected to have a
Material Adverse Effect.
8.13 Additional Security; Further Assurances; etc. (a) Each
Borrower will, and will cause each of its Subsidiaries to, at the expense of
such Borrower and its Subsidiaries, make, execute, endorse, acknowledge, file
and/or deliver to the Collateral Agent from time to time such schedules,
confirmatory assignments, conveyances, financing statements, transfer
endorsements, powers of attorney, certificates, reports and other assurances or
instruments, and take such further steps relating to the collateral covered by
any of the Pledge and Security Agreement, as the Collateral Agent may
reasonably require in order to effect, protect or further evidence the grant or
perfection of Liens provided for in the Pledge and Security Agreement,
including, without limiting the foregoing, (1) with respect to any Pledge and
Security Agreement Collateral relating to equity interests in any Person
organized under the laws of any jurisdiction other than the United States or a
State thereof (each a "Foreign Entity"), upon the request of the Collateral
Agent, each Borrower will, and will cause the respective Credit Party that owns
the equity interest in such Foreign Entity (and the respective Foreign Entity)
to, execute any additional pledge or other security agreements as may be
reasonably requested by the Collateral Agent to protect the security interests
required to be granted pursuant to the Pledge and Security Agreement pursuant
to the requirements of applicable local law of such Foreign Entity and to take
such further steps relating to such collateral as the Collateral Agent may
reasonably request and (2) to the extent any assets are acquired by any
Borrower or any of its Subsidiaries after the date hereof which would
constitute Pledge and Security Agreement Collateral, such Pledge and Security
Agreement Collateral shall, to the extent required by the Pledge and Security
Agreement, be delivered for pledge thereunder and any additional actions as
required above by the Collateral Agent shall be taken in connection therewith.
Furthermore, each Borrower will cause to be delivered to the Collateral Agent
such opinions of counsel, and other related documents as may be reasonably
requested by the Collateral Agent to assure itself that this Section 8.13 has
been complied with.
(b) Each Borrower agrees that each action required above
by this Section 8.13 shall be completed within 60 days after such action is
either requested to be taken by the Paying Agent or the Required Lenders or
required to be taken by such Borrower and its Subsidiaries pursuant to the
terms of this Section 8.13.
8.14 Foreign Subsidiaries Security. If following a change in
the relevant sections of the Code or the regulations, rules, rulings, notices
or other official pronouncements issued or promulgated thereunder, counsel for
the Parent Companies reasonably acceptable to the Paying Agent does not within
30 days after a request from any Lead Agent or the Required Lenders deliver
evidence, in form and substance mutually satisfactory to the Lead Agents and
the Borrowers, with respect to any Foreign Subsidiary which has not already had
all of its stock pledged pursuant to the Pledge and Security Agreement, that
(i) a pledge of 66-2/3% or more of the total combined voting power of all
classes of capital stock of such Foreign Subsidiary entitled to vote, and (ii)
the entering into by such Foreign Subsidiary of a guaranty in substantially the
form of the Guaranty, in any such case could reasonably be expected to cause
(I) the undistributed earnings of such Foreign Subsidiary as determined for
Federal income tax purposes to be treated as a deemed dividend to such Foreign
Subsidiary's United States parent for Federal income tax purposes or (II) other
material adverse Federal income tax consequences to the Credit Parties, then in
the case
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of a failure to deliver the evidence described in clause (i) above, that
portion of such Foreign Subsidiary's outstanding capital stock not theretofore
pledged pursuant to the Pledge and Security Agreement shall be pledged to the
Collateral Agent for the benefit of the Secured Creditors pursuant to the
Pledge and Security Agreement (or another pledge agreement in substantially
similar form, if needed), and in the case of a failure to deliver the evidence
described in clause (ii) above, such Foreign Subsidiary shall execute and
deliver the Guaranty (or another guaranty in substantially similar form, if
needed), guaranteeing the Obligations of the Borrowers under the Credit
Documents and under any Interest Rate Protection Agreement or Other Hedging
Agreement, in each case to the extent that the entering into such Pledge and
Security Agreement or Guaranty is permitted by the laws of the respective
foreign jurisdiction and with all documents delivered pursuant to this Section
8.14 to be in form and substance reasonably satisfactory to the Lead Agents.
8.15 Additional Guarantors. (a) If at any time after the
Effective Date any Borrower acquires, establishes or creates any Domestic
Subsidiary (or in the circumstances contemplated by Section 8.14, any Foreign
Subsidiary), such Subsidiary shall be required at such time to execute and
deliver counterparts of the Guaranty and Pledge and Security Agreement, at
which time such Subsidiary shall become a Guarantor hereunder; provided that
the execution and delivery of such documents shall not be required (and the
respective Subsidiary shall not become a Guarantor) if, and for so long as, the
respective Subsidiary is primarily engaged in Gaming Businesses where approvals
of the relevant Gaming Authorities would be required for the respective
Subsidiary to become a Guarantor.
(b) Each Subsidiary required to take actions pursuant to
preceding Section 8.15(a) shall execute and deliver, or cause to be executed
and delivered, all other relevant documentation of the type described in
Section 5 (including without limitation opinions of counsel) as such Subsidiary
would have had to deliver if such Subsidiary were a Credit Party on the Initial
Borrowing Date, with all actions to be taken pursuant to this Section 8.15 to
be taken to the reasonable satisfaction of the Paying Agent and the Collateral
Agent.
8.16. Margin Regulations. The Borrowers shall take all
actions so that at all times the fair market value of all Margin Stock (other
than Capital Stock of ESI which is Margin Stock) owned by the Parent Companies
and their Subsidiaries shall not exceed $5,000,000. So long as the covenant
contained in the immediately preceding sentence is complied with, all Margin
Stock at any time owned by the Parent Companies and their Subsidiaries shall
not constitute Pledge and Security Agreement Collateral and no security
interest shall be granted therein pursuant to any Credit Document. Without
excusing any violation of the first sentence of this Section 8.16, if at any
time the fair market value of all Margin Stock (other than Capital Stock of ESI
which is Margin Stock) owned by the Parent Companies and their Subsidiaries
exceeds $5,000,000, then (x) all Margin Stock owned by the Credit Parties shall
be pledged, and delivered for pledge, pursuant to the Pledge and Security
Agreement and (y) the Borrowers shall execute and deliver to the Lenders
appropriate completed forms (including, without limitation, Forms G-3 and U-1,
as appropriate) establishing compliance with the Margin Regulations. If at any
time any Margin Stock is required to be pledged as a result of the provisions
of the immediately preceding sentence, repayments of outstanding Obligations
shall be required, and subsequent Credit Events shall be permitted, only in
compliance with the applicable provisions of the Margin Regulations.
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8.17. Ownership of Certain Subsidiaries. At all times
following the consummation of the Acquisition on the Initial Borrowing Date,
(i) Starwood REIT shall be the sole general partner of SLT RLP (and shall only
own assets as described in Section 7.29), and shall own at all times at least
75% of the equity interests in SLT RLP, (ii) the Corporation shall be the sole
general partner of SLC OLP and shall at all times own at least 75% of the
equity interests in SLC OLP and (iii) the Corporation shall directly own 100%
of the equity interests in ITT.
8.18 Unsecured Debt Rating. Each Parent Company hereby
covenants and agrees that it shall use its best efforts to have an Unsecured
Debt Rating assigned to the Parent Companies within 180 days after the Initial
Borrowing Date.
8.19. REIT and Corporation Stock. Starwood REIT and the
Corporation shall maintain in good standing their listing of, or listing
authorization for, all their outstanding shares of Capital Stock on the New
York Stock Exchange (other than the Westin Acquisition Shares and the UBS
Shares, and except for similar issuances after the Initial Borrowing Date) and
such shares (other than the Westin Acquisition Shares and the UBS Shares, and
except for similar issuances after the Initial Borrowing Date) shall continue
to trade as "paired shares".
8.20. Interest Rate Protection. At all times after the 120th
day following the Initial Borrowing Date to and including the third anniversary
(the "Third Anniversary") of the date on which the Corporation and its
Subsidiaries first enter into such Interest Rate Protection Agreement, the
Corporation and its Subsidiaries shall enter into, and thereafter maintain,
Interest Rate Protection Agreements, on terms and with parties reasonably
satisfactory to the Lead Agents, establishing a fixed or maximum interest rate
reasonably acceptable to the Lead Agents for an aggregate notional amount equal
to at least $1 billion of the aggregate outstanding principal amount of Loans,
it being understood and agreed that each such Interest Rate Protection
Agreement shall have a term of at least one (1) year or, if less, the period
from the date of entering into such Interest Rate Protection Agreement to and
including the Third Anniversary .
8.21 World Directory Disposition Entities; Assigned Starwood
Note; Etc. At all times on and after the Initial Borrowing Date, (i) ITT
Corporation shall directly own 100% of the Capital Stock of WD Parent Corp.
(excluding up to $50 million of VNU Preferred Stock issued to VNU or an
Affiliate thereof in connection with the WD Disposition), (ii) WD Parent Corp.
shall constitute the 100% member of the Assigned Starwood Note LLC, (iii) ITT
shall at all times be the non-member manager (non-removable) of the Assigned
Starwood Note LLC, (iv) neither WD Parent nor Assigned Starwood Note LLC will
incur or assume any Indebtedness or create, incur or assume any Lien upon or
with respect to any of its property or assets and (v) the Assigned Starwood
Note LLC shall at all times own (subject to no Liens) the Assigned Starwood
Note. To the maximum extent permitted by the Assigned Starwood Note, payments
of interest thereunder shall be deferred or paid-in-kind, rather than paid in
cash.
SECTION 9. Negative Covenants. Each of the Borrowers hereby
covenants and agrees that on and after the Effective Date and until the Total
Commitment and all Letters of Credit have terminated and the Loans, Notes and
Unpaid Drawings, together with interest, Fees and all other Obligations (other
than contingent indemnification obligations) incurred hereunder and thereunder,
are paid in full:
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9.01 Liens. No Borrower will, nor will any Borrower permit
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien
upon or with respect to any property or assets (real or personal, tangible or
intangible) of such Borrower or any of its Subsidiaries, whether now owned or
hereafter acquired, or sell any such property or assets subject to an
understanding or agreement, contingent or otherwise, to repurchase such
property or assets (including sales of accounts receivable with recourse to
such Borrower or any of its Subsidiaries), or assign any right to receive
income or permit the filing of any financing statement under the UCC or any
other similar notice of Lien under any similar recording or notice statute;
provided that the provisions of this Section 9.01 shall not prevent the
creation, incurrence, assumption or existence of the following (Liens described
below are herein referred to as "Permitted Liens"):
(i) inchoate Liens for taxes, assessments or governmental
charges or levies not yet due and payable or Liens for taxes,
assessments or governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves have
been established in accordance with generally accepted accounting
principles;
(ii) Liens in respect of property or assets of any Borrower or
any of its Subsidiaries imposed by law, which were incurred in the
ordinary course of business and do not secure Indebtedness for
borrowed money, such as carriers', warehousemen's, materialmen's and
mechanics' liens and other similar Liens arising in the ordinary
course of business, and (x) which do not in the aggregate materially
detract from the value of the property and assets of such Borrower and
its Subsidiaries taken as a whole or materially impair the use thereof
in the operation of the business of such Borrower or such Subsidiary
or (y) which are being contested in good faith by appropriate
proceedings, which proceedings have the effect of preventing the
forfeiture or sale of the property or assets subject to any such Lien;
(iii) Liens in existence on the Initial Borrowing Date which are
listed, and the property subject thereto described, in Schedule 9.01
("Existing Liens"), but only to the respective date, if any, set forth
in such Schedule 9.01 for the removal or termination of any such
Liens, without giving effect to any renewals, replacements and
extensions of such Liens;
(iv) Liens on the Pledge and Security Agreement Collateral to
secure the ITT Notes, Permitted Refinancing Indebtedness issued in
respect of the ITT Notes (or in respect of Permitted Refinancing
Indebtedness previously issued in respect of the ITT Notes) and/or the
Senior Secured Notes, and guarantees thereof permitted pursuant to
Section 9.04, on an equal and ratable basis with the other obligations
secured pursuant to the Pledge and Security Agreement, in each case in
accordance with and to the extent permitted by the terms of Pledge and
Security Agreement;
(v) Liens created pursuant to the Security Documents;
(vi) licenses, leases, sublicenses or subleases granted to
other Persons not materially interfering with the conduct of the
business of any Borrower and its Subsidiaries taken as a whole;
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(vii) Liens upon assets of any Borrower or its Subsidiaries
subject to Capitalized Lease Obligations and Non-Recourse Indebtedness
to the extent such Capitalized Lease Obligations and Non-Recourse
Indebtedness are permitted by Section 9.04(iv), provided that (x) such
Liens only serve to secure the payment of Indebtedness arising under
such Capitalized Lease Obligation or Non-Recourse Indebtedness, as the
case may be, and (y) the Lien encumbering the asset or assets giving
rise to the Capitalized Lease Obligation or Non-Recourse Indebtedness,
as the case may be, does not encumber any other asset of such Borrower
or any Subsidiary of such Borrower;
(viii) Liens placed upon equipment or machinery used in the
ordinary course of business of any Borrower or any of its Subsidiaries
at the time of acquisition thereof by such Borrower or any such
Subsidiary or within 90 days thereafter to secure Indebtedness
incurred to pay all or a portion of the purchase price thereof or to
secure Indebtedness incurred solely for the purpose of financing the
acquisition of any such equipment or machinery or extensions, renewals
or replacements of any of the foregoing for the same or a lesser
amount, provided that (x) the aggregate outstanding principal amount
of all Indebtedness secured by Liens permitted by this clause (viii)
shall not at any time exceed $50,000,000 and (y) in all events, the
Lien encumbering the equipment or machinery so acquired does not
encumber any other asset of such Borrower or such Subsidiary;
(ix) easements, rights-of-way, restrictions, encroachments and
other similar charges or encumbrances, and minor title deficiencies,
in each case not securing Indebtedness and not materially interfering
with the conduct of the business of any Borrower or any of its
Subsidiaries;
(x) Liens arising from precautionary UCC financing statement
filings regarding operating leases entered into by any Borrower or any
of its Subsidiaries in the ordinary course of business;
(xi) Liens arising out of the existence of judgments, decrees
or awards not constituting an Event of Default under Section 10.09,
provided that no cash or property is deposited or delivered to secure
the respective judgment or award (or any appeal bond in respect
thereof);
(xii) statutory and common law landlords' liens under leases to
which any Borrower or any of its Subsidiaries is a party;
(xiii) Liens on property or assets acquired pursuant to a
Permitted Acquisition, or on property or assets of a Subsidiary of any
Borrower acquired pursuant to a Permitted Acquisition, in each case in
existence at the time such Permitted Acquisition is consummated,
provided that (i) any Indebtedness that is secured by such Liens is
permitted to exist under Section 9.04(x) and (ii) such Liens are not
incurred in connection with or in contemplation or anticipation of
such Permitted Acquisition and do not attach to any other asset of
such Borrower or any of its Subsidiaries;
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(xiv) Indebtedness owed by the Corporation and/or one or more of
its Subsidiaries to Starwood REIT and/or one or more of its
Subsidiaries, in each case to the extent permitted to be outstanding
pursuant to Section 9.04(vii), may be secured by Real Property (and
Assets related to such Real Property) of the Corporation and its
Subsidiaries; and
(xv) Liens securing Permitted Refinancing Indebtedness (which
Liens shall be permitted subject to compliance with clause (v) of the
definition of Permitted Refinancing Indebtedness contained herein) to
the extent such Indebtedness is permitted to be outstanding pursuant
to Section 9.04(xi).
9.02 Consolidation, Merger, Purchase or Sale of Assets, Lease
Obligations, etc. No Borrower will, nor will any Borrower permit any of its
Subsidiaries to, wind up, liquidate or dissolve its affairs or enter into any
transaction of merger or consolidation, or convey, sell, lease or otherwise
dispose of (or agree to do any of the foregoing at any future time) all or any
part of its property or assets, or enter into any sale-leaseback transactions,
or purchase or otherwise acquire (in one or a series of related transactions)
any part of the property or assets (other than purchases or other acquisitions
of inventory, materials and equipment in the ordinary course of business) of
any Person, except that:
(i) Capital Expenditures by Starwood REIT, the Corporation and
their Subsidiaries shall be permitted to the extent not in violation
of Section 9.07;
(ii) Investments may be made to the extent permitted by Section
9.05;
(iii) (x) Starwood REIT, the Corporation and their Subsidiaries
may lease (as lessee and/or as lessor) real or personal property in
the ordinary course of business (so long as any such lease does not
create a Capitalized Lease Obligation except to the extent permitted
by Section 9.04) and (y) Operating Leases may be entered into by the
parties described in the definition thereof in the ordinary course of
business and consistent with past practices;
(iv) Starwood REIT, the Corporation and their Subsidiaries may
sell and lease inventory (excluding Real Property) in the ordinary
course of business;
(v) Starwood REIT, the Corporation and their Subsidiaries may
sell used and obsolete equipment in the ordinary course of business;
(vi) Starwood REIT, the Corporation and their Subsidiaries may,
in the ordinary course of business, license, as licensor or licensee,
patents, trademarks, copyrights and know-how to third Persons and to
one another; provided that in no event shall this clause (vi) be
construed to permit Starwood REIT, the Corporation or any of their
Subsidiaries to (x) sell or transfer any patents, trademarks,
copyrights or tradenames to any third Person or (y) grant an exclusive
license to use any patent, trademark, copyright or tradename;
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(vii) the Acquisition shall be permitted, and any ESI
Transaction shall be permitted so long as the respective such
transaction complies with the requirements contained in the definition
of ESI Transaction contained herein;
(viii) so long as no Specified Default, and no Event of Default,
then exists or would result therefrom, the Parent Companies and their
Subsidiaries may sell Assets (other than Assets listed or described in
Schedule 11.01C or in the definition of Scheduled Asset Disposition),
to the extent not otherwise permitted under any other clause of this
Section 9.02, provided that (x) the aggregate Net Sale Proceeds from
all assets subject to sales pursuant to this clause (viii) shall not
exceed $1,000,000,000 (or $1,500,000,000 if, at the time of any Asset
disposition pursuant to this clause (viii) which results in Net Sale
Proceeds being received during the respective Fiscal Year being in
excess of $1,000,000,000, and after giving effect thereto and to the
application of the proceeds thereof, either (1) the Combined Leverage
Ratio is less than 4.5:1.0 or (2) the Unsecured Debt Rating of each
Parent Company (or both Parent Companies) shall be at least BBB- by
S&P and Baa3 by Xxxxx'x) in any Fiscal Year, (y) any such asset sale
is for at least 90% cash (for this purpose, treating third-party debt
(i.e., owed to Persons other than the Parent Companies and their
Subsidiaries and Affiliates) assumed by the respective buyer as
constituting 90% cash, and 10% non-cash, consideration) and at fair
market value (as determined in good faith by management of the Person
selling such assets) and (z) the Net Sale Proceeds therefrom are
either applied as a mandatory repayment and/or commitment reduction as
provided in Section 4.02(e), provided further, that, with respect to
no more than (a) $600,000,000 (or $750,000,000 if, at the time of the
respective Asset disposition pursuant to this Section 9.02(viii) and
after giving effect thereto, either (1) the Combined Leverage Ratio is
less than 4.5:1.0 or (2) the Unsecured Debt Rating of each Parent
Company (or both Parent Companies) shall be at least BBB- by S&P and
Baa3 by Xxxxx'x) of Net Sale Proceeds received during the period
commencing on the Initial Borrowing Date and ending on December 31,
1998 and (b) $250,000,000 (or $500,000,000 if, at the time of the
respective Asset disposition pursuant to this Section 9.02(viii) and
after giving effect thereto, either (1) the Combined Leverage Ratio is
less than 4.5:1.0 or (2) the Unsecured Debt Rating of each Parent
Company (or both Parent Companies) shall be at least BBB- by S&P and
Baa3 by Xxxxx'x) of Net Sale Proceeds received during any Fiscal Year
thereafter, such Net Sale Proceeds may be reinvested to the extent
permitted by Section 4.02(e), provided further, that any Asset Sale
permitted pursuant to this clause (viii) (subject to compliance with
the limitations contained in the immediately preceding proviso) may be
structured in the form of a "like-kind exchange" in accordance with
Section 1031 of the Code, but for purposes of this clause (viii) (and
the immediately preceding proviso) each such "like-kind exchange"
shall be treated as the sale of an Asset with the Net Proceeds (deemed
to be an amount equal to the fair market value of the Asset sold)
therefrom reinvested pursuant to the immediately preceding proviso;
(ix) so long as no Specified Default, and no Event of Default,
then exists or would result therefrom, any of SLT RLP, the
Corporation, SLC OLP or any Wholly-Owned Subsidiary of any such Person
(each an "Acquiring Person") may acquire all or any portion of the
assets (including without limitation acquisitions of Hotels) or all of
the capital stock of any Person (any such acquisition permitted by
this clause (ix), a "Permitted
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Acquisition"), provided that (i) such Person (or the assets so
acquired) was, immediately prior to such acquisition, engaged (or
used) primarily in the businesses permitted pursuant to Section 9.15,
(ii) if such acquisition is structured as a stock acquisition, then
(x) either (A) the Person so acquired becomes a Wholly- Owned
Subsidiary of an Acquiring Person or (B) such Person is merged with
and into such Acquiring Person or a Wholly-Owned Subsidiary of such
Acquiring Person (with such Acquiring Person or such Wholly-Owned
Subsidiary, as the case may be, being the surviving corporation of
such merger), and (y) such Person shall own no Capital Stock of any
other Person unless either (A) such Person owns 100% of the Capital
Stock of such other Person or (B)(1) such Person and/or its
Wholly-Owned Subsidiaries own at least 80% of the consolidated assets
of such Person and its subsidiaries and (2) any non-Wholly-Owned
Subsidiary of such Person was non-Wholly-Owned prior to the date of
such Permitted Acquisition of such Person, and in any case, all of the
provisions of Section 8.15 have been complied with in respect of each
Subsidiary acquired pursuant to the respective Permitted Acquisition,
(iii) any Liens or Indebtedness assumed or incurred in connection with
such acquisition are otherwise permitted pursuant to Section 9.01 or
9.04, as the case may be, (iv) calculations are made by the Parent
Companies establishing compliance with the financial covenants
contained in Sections 9.08 through 9.11, inclusive, for the Reference
Period, on a Pro Forma Basis as if the respective Permitted
Acquisition had occurred on the first day of such Reference Period,
(v) immediately after giving effect to each such Permitted
Acquisition, the Total Unutilized Revolving Loan Commitment shall be
equal to at least $200,000,000, (vi) the aggregate consideration paid
in connection with any such Permitted Acquisition (including, without
limitation, any earn-out, non-compete or deferred compensation
arrangements) shall not exceed $750,000,000 (or, in the case of the
acquisition of (x) Assets related to the Gaming Business or (y) a
Person engaged in a Gaming Business, $350,000,000) without the prior
written consent of the Required Lenders, provided that if either (1)
all consideration paid in connection with the respective such
Permitted Acquisition consists solely of common stock or Qualified
Preferred Stock (and the assumption of Indebtedness described below in
this proviso) or (2) at any time that either (A) the Combined Leverage
Ratio is less than 4.5:1.0 or (B) the Unsecured Debt Rating of each
Parent Company (or both Parent Companies) shall be at least BBB- by
S&P and Baa3 by Xxxxx'x (and in each case will remain so after giving
effect to any Indebtedness assumed as described below in this
proviso), Permitted Acquisitions may be effected, for this purpose
with the amounts set forth above in clause (vi) being deemed to be
$1,500,000,000 and $500,000,000, respectively, rather than
$750,000,000 and $350,000,000, without the prior written consent of
the Required Lenders so long as the aggregate principal amount of any
third-party Indebtedness assumed in connection with such Permitted
Acquisition does not exceed 35% of the aggregate purchase
consideration therefor, (vii) the Parent Companies shall have given
the Paying Agent and the Lenders at least 10 days' prior written
notice of any Permitted Acquisition, and (viii) the Parent Companies
shall have delivered to the Lead Agents an officer's certificate from
its chief executive officer, certifying, to the best of his knowledge,
compliance with the requirements of preceding clauses (i) through
(vii) and containing the calculations required by clauses (iv) and
(v);
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(x) Scheduled Asset Dispositions as described in clause (iii)
of the definition thereof shall be permitted, provided that (x) any
such Scheduled Asset Disposition is for at least 90% cash (for this
purpose, treating third-party debt (i.e., owed to Persons other than
the Parent Companies and their Subsidiaries and Affiliates) assumed by
the respective buyer as constituting 90% cash, and 10% non-cash,
consideration) and at fair market value (as determined in good faith
by management of the Person consummating such Scheduled Asset
Disposition) and (y) the Net Sale Proceeds from each Scheduled Asset
Disposition shall be applied as a mandatory repayment and/or
commitment reduction as provided in Section 4.02(e) (without giving
effect to the provisos thereto); and
(xi) so long as no Specified Default, and no Event of Default,
then exists or would result therefrom, the Corporation or any of its
Subsidiaries may transfer Assets to Starwood REIT or any Subsidiary of
Starwood REIT, provided that the fair market value (as determined in
good faith by management of the Person transferring such Assets) of
all Assets subject to such transfers shall not exceed $150,000,000 in
any Fiscal Year without the prior written consent of the Required
Lenders; provided that, if the Corporation delivers to the Lead
Agents, a solvency opinion from an independent valuation firm
satisfactory to the Lead Agents, addressed to the Lead Agents and the
Lenders and dated the date such Assets are transferred to Starwood
REIT or any of its Subsidiaries, setting forth the conclusions that,
after giving effect to such transfer, the Corporation and its
Subsidiaries, taken as a whole, are not insolvent and will not be
rendered insolvent by such transfer, will not be left with
unreasonably small capital with which to engage in their business and
will not have incurred debts beyond their ability to pay such debts as
they mature, the Corporation and its Subsidiaries may transfer Assets
having an aggregate fair market value (as determined in good faith by
management of the Person transferring such Assets) in an amount not to
exceed $500,000,000 (which amount shall be increased to $1,000,000,000
if at the time of the respective transfer either (1) the Combined
Leverage Ratio is less than 4.5:1.0 or (2) the Unsecured Debt Rating
of each Parent Company (or both Parent Companies) shall be at least
BBB- by S&P and Baa3 by Xxxxx'x) to Starwood REIT or any of its
Subsidiaries in any Fiscal Year.
Notwithstanding anything to the contrary contained above, in
no event shall any Capital Stock of any Subsidiary of the Parent Companies or
any other Borrower be sold pursuant to the provisions of this Section 9.02,
except that (i) so long as the respective sale complies with the requirements
set forth above in this Section 9.02, 100% of the Capital Stock of any Credit
Party Subsidiary (excluding SLT RLP, SLC OLP, ITT and ITT Sheraton) owned by
the Parent Companies and their Subsidiaries may be sold to a person not an
Affiliate in a transaction otherwise permitted by this Section 9.02, (ii) in
consideration for acquisitions of Assets by SLT RLP and/or SLC OLP, SLT RLP and
SLC OLP may issue limited partnership interests in the ordinary course of
business and consistent with past practices, in each case so long as no
violation of the covenants contained in Section 8.17 arises as a result thereof
and (iii) Capital Stock of ESI and/or one or more of its Subsidiaries may be
sold or disposed of pursuant to ESI Transactions effected in accordance with
the definition thereof contained herein. To the extent any Capital Stock
pledged pursuant to the Pledge and Security Agreement is sold to a Person not
an Affiliate of either Parent Company in a transaction permitted pursuant to
this Section 9.02, the Capital Stock so sold shall be released from the
security interests created pursuant to the Pledge and Security
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Agreement (and the Collateral Agent is hereby authorized and directed to take
such action as it deems to be reasonably necessary or desirable in connection
therewith).
9.03 Restricted Payments. (a) No Borrower will, nor will any
Borrower permit any of its Subsidiaries to, authorize, declare or pay any
Dividends, except that:
(i) any Subsidiary of either Parent Company may, subject to
the provisions of following clause (b), (x) pay cash Dividends to such
Parent Company or to any Wholly-Owned Subsidiary of either Parent
Company and (y) if such Subsidiary is not a Wholly-Owned Subsidiary of
the respective Parent Company, may pay cash Dividends to its
shareholders, partners, members or other equity owners generally so
long as such Parent Company or its respective Subsidiary which owns
the equity interest or interests in the Subsidiary paying such
Dividends receives at least its proportionate share thereof (based
upon its relative holdings of equity interests in the Subsidiary
paying such Dividends and taking into account the relative
preferences, if any, of the various classes of equity interests in
such Subsidiary);
(ii) so long as (x) no Specified Default, and no Event of
Default, exists at the time of the respective payment or would exist
immediately after giving effect thereto (or unless the Required
Lenders otherwise consent in writing) and (y) Starwood REIT qualifies
as a "real estate investment trust" under the Code, during any period
of four consecutive fiscal quarters, Starwood REIT may pay cash
Dividends to its shareholders for such period in an aggregate amount
not to exceed the greater of (1) 85% of Adjusted Funds From Operations
for such period and (2) the minimum amount necessary for Starwood REIT
to maintain its status as an entity taxed as a real estate investment
trust under the Code;
(iii) WD Parent Corp. may pay regularly scheduled cash Dividends
on the VNU Preferred Stock at a rate not to exceed 6% per annum and
any mandatory redemptions required thereunder, provided that so long
as no Specified Default, and no Event of Default, then exists, WD
Parent Corp. may otherwise redeem any outstanding shares of VNU
Preferred Stock;
(iv) so long as (x) no Specified Default, and no Event of
Default, then exists or would result therefrom and (y) Starwood REIT
qualifies as a "real estate investment trust" under the Code, Starwood
REIT and/or the Corporation shall be permitted to repurchase shares of
their own common stock in an aggregate amount not to exceed
$50,000,000 in any Fiscal Year, provided that any time the Combined
Leverage Ratio is equal to or less than 4.5 to 1.0 (and so long as the
Combined Leverage Ratio will continue to be equal to or less than 4.5
to 1.0 immediately after giving effect to the respective repurchases
contemplated by this clause (iv) and any Indebtedness (including
without limitation Revolving Loans) incurred to finance same), the
foregoing limitation shall be increased to $300,000,000 in any Fiscal
Year, provided further, that in no event shall any repurchases be made
pursuant to this clause (iv) in any Fiscal Year if (or to the extent
that) the sum of (I) the aggregate amount expended by the Parent
Companies in any Fiscal Year pursuant to this clause (iv) plus (II)
the amount of Dividends paid in such Fiscal Year pursuant to
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preceding clause (ii), would exceed 85% of Adjusted Funds From
Operations for such Fiscal Year;
(v) the Parent Companies may pay regularly accruing Dividends
to holders of its Qualified Preferred Stock through the issuance of
additional shares of such Qualified Preferred Stock (so long as no
cash payments are made with respect thereto, unless justified pursuant
to clause (ii) of Section 9.03); and
(vi) so long as no Specified Default, and no Event of Default,
then exists or would result therefrom, the Parent Companies shall be
permitted to repurchase the outstanding UBS Shares in an aggregate
principal amount not to exceed $135,000,000, provided that the
proceeds used by the Parent Companies to consummate such repurchase
are raised solely through the issuance of equity by the Parent
Companies.
(b) Notwithstanding anything to the contrary contained
above, upon the occurrence and during the continuance of any Specified Default
or any Event of Default, neither the Corporation nor any of its Subsidiaries
shall pay any dividends or make any distributions or similar payments to
Starwood REIT.
(c) Notwithstanding anything to the contrary contained
elsewhere in this Agreement, upon the occurrence and during the continuance of
any Specified Default or any Event of Default (or if any Specified Default or
any Event of Default would exist immediately after giving effect thereto),
neither the Corporation nor any of its Subsidiaries shall (i) pay any amounts
with respect to Indebtedness owed by them to Starwood REIT or any of its
Subsidiaries (including, without limitation, any principal, interest or other
amounts owing with respect to the Intercompany Mortgage Note), (ii) make any
loans, advances or other investments in Starwood REIT or any of its
Subsidiaries or (iii) prepay any amounts owed to Starwood REIT or any of its
Subsidiaries pursuant to any Operating Lease or any other Contractual
Obligation. In addition, the Corporation and its Subsidiaries shall in no
event prepay or repay any principal owing with respect to the Intercompany
Mortgage Note; provided that so long as no Specified Default, and no Event of
Default, then exists, the Corporation and its Subsidiaries shall be permitted
to prepay (or repay) principal owing with respect to the Intercompany Mortgage
Note in an aggregate principal amount not to exceed $150,000,000 (or such
greater amount to the extent permitted by Section 9.02(xi)) in any Fiscal Year
solely as a result of transfers of assets pursuant to Section 9.02(xi).
Furthermore, no payment shall be made in respect of any Affiliate Debt which
would violate the provisions of the Subordination Agreement required to be
executed in connection therewith. The foregoing provisions of this clause (c)
shall in no event restrict or limit the ability of any Credit Party to make
payments owing by them pursuant to the terms of the Guaranty.
(d) In addition to the requirements of preceding clause
(c), and unless the Required Lenders otherwise consent in writing, (x) in no
event shall any payments of principal be made on the Assigned Starwood Note at
any time and (y) at any time when any Specified Default, or any Event of
Default, then exists, no interest or other payments shall be made in respect of
the Assigned Starwood Note.
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9.04 Indebtedness. No Borrower will, nor will any Borrower
permit any of its Subsidiaries to, contract, create, incur, assume or suffer to
exist any Indebtedness, except:
(i) Indebtedness incurred pursuant to this Agreement and the
other Credit Documents;
(ii) Indebtedness with respect to performance bonds, surety
bonds, appeal bonds or customs bonds required in the ordinary course
of business or in connection with the enforcement of rights or claims
of any Borrower or any of its Subsidiaries or in connection with
judgments that do not result in a Specified Default or an Event of
Default, provided that, in addition to the performance bonds for
existing construction projects set forth on Schedule 9.04(ii), the
aggregate outstanding amount of all such performance bonds, surety
bonds, appeal bonds and customs bonds permitted by this clause (ii)
shall not at any time exceed $100,000,000;
(iii) Indebtedness under Interest Rate Protection Agreements
which are non-speculative in nature and are entered into to protect
any Borrower and/or its Subsidiaries against fluctuations in interest
rates in respect of floating rate Indebtedness outstanding at the time
of the respective Interest Rate Protection Agreements are entered
into, which floating rate Indebtedness is otherwise permitted to
remain outstanding or be incurred, as the case may be, pursuant to
this Section 9.04;
(iv) Capitalized Lease Obligations and Non-Recourse
Indebtedness of Subsidiaries (other than ITT) of the Parent Companies,
provided that (i) such Non-Recourse Indebtedness was incurred in
connection with the acquisition of a new Hotel or the renovation of an
existing Hotel, (ii) prior to the incurrence of any Non- Recourse
Indebtedness the Parent Companies deliver a certificate to the Paying
Agent establishing compliance with the financial covenants contained
in Sections 9.08 through 9.11, inclusive, for the Reference Period, on
a Pro Forma Basis, (iii) in no event shall the loan to value ratio for
any such Non-Recourse Indebtedness be (A) greater than 75% or (B) less
than 40% in respect of the respective Assets serving as security
therefor, (iv) in no event shall more than 25% of the Parent
Companies' and their Subsidiaries' total real property assets (taking
the fair market value thereof as determined in good faith by the
Parent Companies, without deduction for the amount of Indebtedness
associated therewith) be subject to Liens securing Capitalized Lease
Obligations, Non-Recourse Indebtedness or other Indebtedness for
borrowed money (not owed to the Parent Companies or their
Subsidiaries) and (v) the sum of (A) the aggregate Capitalized Lease
Obligations plus (B) the aggregate principal amount of such
Non-Recourse Indebtedness in each case incurred in any Fiscal Year
shall not exceed $300,000,000 less the aggregate principal amount of
Indebtedness incurred or assumed in such Fiscal Year pursuant to
Section 9.04(x) (excluding Indebtedness incurred or assumed pursuant
to the last proviso to Section 9.04(x));
(v) Indebtedness subject to Liens permitted under Section
9.01(viii);
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(vi) Existing Indebtedness outstanding on the Initial Borrowing
Date and listed on Schedule 7.25, without giving effect to any
subsequent extension, renewal or refinancing thereof, except as
otherwise provided in Section 9.04(xi);
(vii) Indebtedness (x) evidenced by the Intercompany Mortgage
Note in an aggregate principal amount not to exceed $3,450,000,000
(less the aggregate principal amount of all repayments thereof made
after the Initial Borrowing Date), (y) evidenced by the Assigned
Starwood Note in an aggregate principal amount equal to $2,127,996,246
and/or (z) constituting intercompany loans and advances made after the
Initial Borrowing Date to the extent permitted by Section 9.05(viii);
(viii) the Corporation shall be permitted to issue Senior Secured
Bridge Notes on the Initial Borrowing Date as required by Section
5.06(a) (with the Senior Secured Bridge Note Documents to be in the
form provided pursuant to Section 5.06(b) on or prior to the Initial
Borrowing Date) and shall be permitted from time to time to issue (but
not to any Borrower or Affiliate thereof) Permanent Senior Notes for
cash; provided that (w) all of the terms and conditions of the
Permanent Senior Notes (including, without limitation, amortization,
maturities, interest rates, covenants, defaults, remedies, guaranties,
sinking fund provisions and other terms) shall be reasonably
satisfactory to the Lead Agents, (x) at the option of the Corporation,
Permanent Senior Notes may be issued as Permanent Senior Secured Notes
and, in such event, may be secured to the extent provided in the
Pledge and Security Agreement, (y) all Net Proceeds (determined
without giving effect to the proviso to the definition of Net Proceeds
contained herein) from any issuance of Permanent Senior Notes shall be
applied to repay then outstanding Senior Secured Bridge Notes and (z)
in no event shall the aggregate principal amount of Indebtedness at
any time outstanding pursuant to this clause (viii) exceed $2.5
billion;
(ix) any Guarantor, to the extent such Guarantor remains a
Guarantor hereunder, shall be permitted to guarantee the obligations
of the Corporation under the Senior Notes;
(x) Indebtedness of a Subsidiary of a Borrower (which itself
is not a Borrower) acquired pursuant to a Permitted Acquisition (or
Indebtedness assumed at the time of a Permitted Acquisition of an
asset securing such Indebtedness), provided that (i) such Indebtedness
was not incurred in connection with or in contemplation of such
Permitted Acquisition, (ii) at the time of such Permitted Acquisition
such Indebtedness does not exceed 75% of the total value of the assets
of the Subsidiary so acquired, or of the assets so acquired, as the
case may be, and (iii) the aggregate principal amount of all such
Indebtedness acquired or assumed after the Initial Borrowing Date
shall at no time outstanding exceed $300,000,000 less the aggregate
principal amount of all Indebtedness then outstanding pursuant to
Section 9.04(iv) and (xi)(b) (without duplication); provided that, in
addition to the Indebtedness acquired or assumed as contemplated
above, in the circumstances (and to the extent) contemplated by the
proviso to clause (vi) of Section 9.02(ix) hereof, Indebtedness shall
be permitted to be incurred, so long as same meets all requirements
(other than those set forth in clause (iii) above) of this clause (x),
which Indebtedness shall not count in determining compliance with the
$300,000,000 limitation set forth in clause (iii) above;
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(xi) Indebtedness of the Parent Companies and their
Subsidiaries constituting Permitted Refinancing Indebtedness (a)
incurred to refinance Third-Party Existing Indebtedness or
refinancings thereof previously effected pursuant to this clause (xi)
or (b) incurred to refinance Indebtedness permitted pursuant to
Sections 9.04(iv) and (x) or refinancings thereof previously effected
pursuant to this clause (xi);
(xii) additional Unsecured Indebtedness of the Parent Companies
and their Subsidiaries not otherwise permitted hereunder not exceeding
$100,000,000 in aggregate principal amount at any time outstanding;
and
(xiii) any Guarantor, to the extent such Guarantor remains a
Guarantor hereunder, shall be permitted to guarantee the obligations
of ITT under the ITT Notes and any Permitted Refinancing Indebtedness
with respect thereto.
Notwithstanding anything to the contrary contained above, in
Section 9.05 or elsewhere in this Agreement, Affiliate Debt shall only be
permitted to be incurred and to remain outstanding if all such Affiliate Debt
(including without limitation the Intercompany Mortgage Note and the Assigned
Starwood Note) is subordinated in right of payment to the Obligations of each
Credit Party obligated with respect to such Affiliate Debt pursuant to a
Subordination and Intercreditor Agreement in the form attached hereto as
Exhibit L (each a "Subordination Agreement").
9.05 Advances, Investments and Loans. No Borrower will, nor
will any Borrower permit any of its Subsidiaries to, directly or indirectly,
lend money or credit or make advances to any Person, or purchase or acquire any
stock, obligations or securities of, or any other interest in, or make any
capital contribution to, any other Person, or purchase or own a futures
contract or otherwise become liable for the purchase or sale of currency or
other commodities at a future date in the nature of a futures contract, or hold
any cash or, Cash Equivalents (each of the foregoing an "Investment" and,
collectively, "Investments"), except that the following shall be permitted:
(i) any Borrower and its Subsidiaries may acquire and hold
accounts receivables, trade receivables, notes receivables, prepaid
expenses and similar items owing to any of them, if created or
acquired in the ordinary course of business and payable or
dischargeable in accordance with customary terms, and any Borrower and
its Subsidiaries may own Investments received in connection with the
bankruptcy, work-out, reorganization, liquidation or similar
proceeding of suppliers and customers and in settlement of delinquent
obligations of, and other disputes with, customers and suppliers
arising in the ordinary course of business;
(ii) any Borrower and its Subsidiaries may acquire and hold
cash and Cash Equivalents;
(iii) any Borrower and its Subsidiaries may hold the Investments
held by them on the Initial Borrowing Date without giving effect to
any additions thereto or replacements thereof;
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(iv) any Borrower and its Subsidiaries may enter into Interest
Rate Protection Agreements to the extent permitted by Section
9.04(iii);
(v) any Borrower and its Subsidiaries shall be permitted to
make Capital Expenditures to the extent permitted by Section 9.07;
(vi) any Borrower and its Subsidiaries may make Investments
consisting of (x) the receipt of non-cash consideration to the extent
permitted in connection with dispositions pursuant to Section 9.02(v),
(vii), (viii), (x) and (xi) and (y) Permitted Acquisitions effected in
accordance with the requirements of Section 9.02(ix);
(vii) any Borrower and its Wholly-Owned Subsidiaries may
establish Subsidiaries to the extent permitted by Section 9.16
(although any Investments therein must be independently justified
pursuant to the other provisions of this Section 9.05);
(viii) after the Initial Borrowing Date and subject to Section
9.03, (I) Starwood REIT and any Subsidiary of Starwood REIT which is a
Guarantor may make intercompany loans and advances of cash to Starwood
REIT or any other Subsidiary of Starwood REIT which is a Guarantor,
(II) the Corporation or any Subsidiary of the Corporation which is a
Guarantor may make intercompany loans and advances of cash to the
Corporation or any other Subsidiary of the Corporation which is a
Guarantor and (III) intercompany loans of cash may be made between
Starwood REIT and its Subsidiaries, on the one hand, and the
Corporation and its Subsidiaries, on the other hand, so long as (A) no
Specified Default, and no Event of Default, then exists (or would
exist immediately after giving effect to the respective loan or
advance) and (B) immediately after giving effect to thereto (and to
any increase in the amount of Dividends which may be required to be
paid by Starwood REIT as a result thereof), the Parent Companies would
be in compliance with the financial covenant contained in Section 9.10
for the Reference Period, on a Pro Forma Basis; provided that all
intercompany loans made pursuant to this clause (viii) are subject to
the provisions of validly executed Subordination Agreements as
required by the last paragraph of Section 9.04; and
(ix) the Acquisition may be consummated and, in connection
therewith, the Corporation may purchase the stock of ITT from Starwood
REIT as contemplated by the definition of Acquisition and may issue
the Intercompany Mortgage Note;
(x) loans and advances in the ordinary course of business and
consistent with past practices to employees and officers of the Parent
Companies and their Subsidiaries in an aggregate outstanding principal
amount not to exceed $10,000,000 at any time (determined without
regard to any write-down or write-offs of such loans and advances)
shall be permitted;
(xi) so long as no Specified Default, and no Event of Default,
then exists or would result therefrom, the Corporation or any of its
Subsidiaries shall be permitted to make equity investments (in respect
of minority interests only) in the ordinary course of business and
consistent with past practice for the purpose of obtaining management
contracts,
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provided that (x) the aggregate amount of such equity investments
shall not exceed $300,000,000 in any Fiscal Year and (y) no single
equity investment shall exceed $20,000,000;
(xii) so long as no Specified Default, and no Event of Default,
then exists, Starwood REIT and its Subsidiaries shall be permitted to
purchase (from Persons other than the Borrowers and their Affiliates)
mortgage notes, provided that the aggregate amount invested pursuant
to this clause (xii) shall not exceed $250,000,000, provided further
that to the extent any such mortgage note is converted into an
ownership interest in the underlying Hotel securing such mortgage
note, any mortgage note is sold for cash at fair market value, or any
such mortgage note is repaid in cash in an amount equal to at least
the aggregate amount theretofore invested by the Parent Companies and
their Subsidiaries in such mortgage note, the amount permitted to be
invested pursuant to this clause (xii) shall be increased by (x) in
the case of such a conversion, the amount of Starwood REIT's or its
Subsidiary's investment as then outstanding in such mortgage note, (y)
in the case of any such repayment, by the lesser of the aggregate cash
principal repayments received by the Parent Companies and their
Subsidiaries in respect of such mortgage note and the aggregate amount
theretofore invested by the Parent Companies and their Subsidiaries in
such mortgage note and (z) in the case of any such sale, by the amount
of Starwood REIT's or its Subsidiary's investment in such mortgage
note or, if less, the Net Proceeds received from the respective sale;
(xiii) Assigned Starwood Note LLC may hold the Assigned
Starwood Note; and
(xiv) so long as no Specified Default, and no Event of Default,
then exists or would exist immediately after giving effect thereto, in
addition to the investments permitted by clauses (i) through (xiv)
above, any Borrower and its Subsidiaries may make additional
Investments to or in one or more Persons, so long as all such
Investments (determined without regard to any write-downs or
write-offs thereof) do not exceed $50,000,000 in any Fiscal Year.
9.06 Transactions with Affiliates. No Borrower will, nor
will any Borrower permit any of its Subsidiaries to, enter into any transaction
or series of transactions with any Affiliate of such Borrower or any of its
Subsidiaries, other than in the ordinary course of business and on terms and
conditions substantially as favorable to such Borrower or such Subsidiary as
would be reasonably obtained by such Borrower or such Subsidiary at that time
in a comparable arm's-length transaction with a Person other than an Affiliate,
except that the following in any event shall be permitted:
(i) each such Person may pay reasonable fees and compensation
to, and provide indemnity on behalf of, their respective officers,
directors and employees as determined in good faith by such Person's
Board of Directors or senior management to the extent not otherwise
prohibited by the terms of this Agreement;
(ii) Dividends may be paid to the extent provided in Section
9.03;
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(iii) loans may be made and other intercompany transactions may
be entered into to the extent permitted by Sections 9.02, 9.03, 9.04
and 9.05;
(iv) the Acquisition may be consummated, and the Intercompany
Mortgage Note may be issued by the Corporation to Starwood REIT;
(v) the agreements with Affiliates specifically described in
Schedule 9.06 shall be permitted to remain outstanding after the
Initial Borrowing Date, with the payments permitted to be made with
respect thereto to be as described in said Schedule 9.06; and
(vi) the Corporation and its Subsidiaries which are Credit
Parties may jointly and severally be obligated to pay a guaranty fee
to Starwood REIT and its Subsidiaries which are Guarantors, so long as
the aggregate amount of such fees required to be paid does not exceed
1/4 of 1% per annum on the aggregate outstanding principal amount of
third-party Indebtedness of the Corporation and its Subsidiaries
(including Indebtedness under this Agreement) guaranteed by Starwood
REIT and its Subsidiaries.
Except as specifically listed on Schedule 9.06, in no event
shall any Borrower or any of its Subsidiaries pay any management or similar
fees to any of their Affiliates (excluding any such management fees payable by
any Subsidiary of either Parent Company to such Parent Company or any
Subsidiary of either or both Parent Companies that is a Guarantor). In
addition to the applicable requirements provided above, any transaction or
series of related transactions (other than as described in clauses (i) through
(vi) above) between or among either Parent Company and/or any of its
Subsidiaries, on the one hand, and any of their respective Affiliates, on the
other hand, with a value in excess of (A) $5,000,000 shall only be permitted if
a majority of the disinterested directors of the respective Parent Company
approve the transaction as meeting the standard set forth above in this Section
9.06 and (B) $10,000,000 shall only be permitted if the parties thereto provide
a fairness opinion from a Person, and in form and substance, satisfactory to
the Paying Agent.
9.07 Capital Expenditures. (a) Each Borrower will not, and
will not permit any of its Subsidiaries to, make any Capital Expenditures,
except that during each Fiscal Year, the Parent Companies and their
Subsidiaries may make Capital Expenditures for maintenance purposes, provided
the same (in the aggregate) shall not exceed an amount equal to 4% of combined
total revenues (of the Parent Companies and their Subsidiaries) from owned
Hotels during such Fiscal Year.
(b) Notwithstanding anything to the contrary contained in
clause (a) above, to the extent that the amount of Capital Expenditures
(excluding Capital Expenditures made pursuant to following clauses (c) through
(e), inclusive), made by the Parent Companies and their Subsidiaries in any
Fiscal Year, beginning with Fiscal Year 1998, is less than the amount permitted
to be made in such Fiscal Year (without giving effect to any additional amount
available as a result of this clause (b) or clauses (c), (d) and (e) below),
the amount of such difference, but not in excess of 20% of the amount
originally permitted to be spent in said Fiscal Year pursuant to said clause
(a), may be carried forward and used to make Capital Expenditures of the types
described in preceding clause (a) in the immediately succeeding Fiscal Year.
Any amount carried
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forward into a Fiscal Year pursuant to this clause (b) shall, if not used to
make Capital Expenditures in such Fiscal Year, terminate at the end thereof
(and shall not be carried forward to a subsequent period).
(c) In addition to the Capital Expenditures permitted to
be made pursuant to clauses (a), (b), (d) and (e) of this Section 9.07, any
Borrower or any of its Subsidiaries may make additional Capital Expenditures
for the purpose of renovating or constructing Improvements with respect to
existing properties and for the purpose of constructing new properties so long
as the aggregate amount of such Capital Expenditures does not exceed (x) for
the period commencing on the Initial Borrowing Date and ending on December 31,
1998, $700,000,000 and (y) for any Fiscal Year thereafter, $200,000,000;
provided that, to the extent that the amount of Capital Expenditures made by
the Parent Companies and their Subsidiaries pursuant to preceding clause (x)
during the period specified therein is less than $700,000,000, then the amount
of such difference, but not in excess of $250,000,000, may be carried forward
and used to make Capital Expenditures in the Fiscal Year ended in 1999.
(d) In addition to the Capital Expenditures permitted to
be made pursuant to clauses (a), (b), (c) and (e) of this Section 9.07, any
Borrower or any of its Subsidiaries may make additional Capital Expenditures
with the amount of insurance or other recovery proceeds received by such
Borrower or such Subsidiary from any Recovery Event to replace or restore any
properties or assets in respect of which such proceeds were paid to the extent
such proceeds are not required to be applied pursuant to Section 4.02(g).
(e) In addition to the Capital Expenditures permitted to
be made pursuant to preceding clauses (a) through (d), inclusive, of this
Section 9.07, any Borrower and its Subsidiaries (x) may make Permitted
Acquisitions to the extent otherwise permitted by this Agreement and (y) may
make Capital Expenditures to the extent the consideration therefor consists of
Capital Stock of the Parent Companies or limited partnership interests in SLT
RLP and/or SLC OLP (in each case which do not violate the provisions of Section
8.17 hereof).
9.08 Combined Interest Coverage Ratio. The Borrowers will
not permit the Combined Interest Coverage Ratio for any Test Period ending
during a period described below to be less than the ratio set forth opposite
such period below:
Period Ratio
------ -----
Initial Borrowing Date to and
including March 31, 1999 2.00:1.00
April 1, 1999 to and including
March 31, 2000 2.25:1.00
April 1, 2000 to and including
March 31, 2001 2.50:1.00
April 1, 2001 to and including
March 31, 2002 2.75:1.00
April 1, 2002 and thereafter 3.00:1.00
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9.09 Maximum Combined Leverage Ratio. The Borrowers will not
permit the Combined Leverage Ratio at any time during a period set forth below
to be greater than the ratio set forth opposite such period below:
Period Ratio
------ -----
From and including the Initial
Borrowing Date to and including
September 30, 1998 6.50:1.00
From and including October 1, 1998
to and including December 31, 1998 5.95:1.00
January 1, 1999 to and including
March 31, 1999 5.50:1.00
April 1, 1999 to and including
September 30, 1999 4.75:1.00
October 1, 1999 to and including
March 31, 2000 4.50:1.00
April 1, 2000 to and including
September 30, 2000 4.25:1.00
October 1, 2000 to and including
March 31, 2001 4.00:1.00
April 1, 2001 to and including
September 30, 2001 3.75:1.00
October 1, 2001 and thereafter 3.50:1.00
9.10 Combined Adjusted Interest Coverage Ratio. The
Borrowers will not permit the Combined Adjusted Interest Coverage Ratio for any
Test Period ending during a period set forth below to be less than the ration
set forth opposite such period below:
Period Ratio
------ -----
Initial Borrowing Date to and including
September 30, 1998 1.00:1.00
October 1, 1998 to and including
March 31, 1999 1.10:1.00
April 1, 1999 to and including
March 31, 2000 1.15:1.00
April 1, 2000 to and including
March 31, 2001 1.20:1.00
April 1, 2001 to and including
March 31, 2002 1.25:1.00
April 1, 2002 and thereafter 1.30:1.00
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9.11. Combined Shareholders' Equity. The Borrowers shall not
permit Combined Shareholders' Equity at any time to be less than 75% of
Combined Shareholders' Equity on the Initial Borrowing Date plus 75% of the net
proceeds (after the payment of underwriter and placement fees and other
expenses directly related to such equity offering) received from equity
issuances by the Parent Companies subsequent to the Initial Borrowing Date,
calculated on a GAAP basis.
9.12 Limitation on Voluntary Payments and Modifications of
Indebtedness; Modifications of Certificate of Incorporation, By-Laws and
Certain Other Agreements; etc. Each Starwood Borrower will not, and will not
permit any of its Subsidiaries to, (i) amend, modify or change its certificate
of incorporation (including, without limitation, by the filing or modification
of any certificate of designation), partnership agreement, limited liability
company agreement, declaration of trust or by-laws or any agreement entered
into by it, with respect to its Capital Stock (including any Shareholders'
Agreement), or enter into any new agreement with respect to its Capital Stock
unless such amendment, modification, change or other action contemplated by
this clause (i) could not reasonably be expected to have a Material Adverse
Effect, (ii) amend, modify or change, or permit the amendment, modification or
change of any provision of (w) the documents evidencing, or relating to, the
Senior Secured Bridge Notes (including, without limitation, the Senior Secured
Bridge Note Documents), the ITT Notes (including, without limitation, the ITT
Indenture (other than the amendments necessary to grant the Liens permitted by
Section 9.01(iv) and the guarantees permitted by Section 9.04(xiii)) and, after
the date of the respective issuance thereof, any Permitted Refinancing
Indebtedness, or any other Senior Note Documents, unless such amendment,
modification or change to the documents evidencing, or relating to, the
respective issue of Indebtedness would not reasonably be expected to be adverse
to the interests of the Lenders in any respect, (x) the Intercompany Mortgage
Note or any documents evidencing, or relating to, the Intercompany Mortgage
Note, (y) the Assigned Starwood Note or any documents evidencing, or relating
to, the Assigned Starwood Note (other than amendments that (A) reduce or fix
the interest rate thereunder, so long as the interest rate is no higher than
the rate in effect on the Initial Borrowing Date and (B) defer the
Corporation's obligation to make cash interest payments thereunder) or (z) any
Subordination Agreement, in each case after the entering into of the respective
documents described above, (iii) make (or give any notice in respect of) any
voluntary or optional payment or prepayment on or redemption or acquisition for
value of (including, without limitation, by way of depositing with the trustee
with respect thereto or any Person money or securities before due for the
purpose of paying when due), exchange or purchase, redeem or acquire for value
(whether as a result of a change of control, the consummation
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of asset sales or otherwise) any Senior Note (except that Senior Secured Bridge
Notes may be repaid with proceeds of Permanent Senior Notes), ; provided that,
if at any time after all Tranche I Term Loans have been repaid in full (x)
either (1) the Combined Leverage Ratio is less than 4.0:1.0 or (2) the
Unsecured Debt Rating of each Parent Company (or both Parent Companies) is at
least BBB- by S&P and Baa3 by Xxxxx'x and (y) no Specified Default, and no
Event of Default, then exists, either Parent Company or any of its Subsidiaries
may make such a payment, prepayment, redemption, acquisition, exchange, or
purchase so long as, prior to the making of such payment, prepayment,
redemption, acquisition, exchange, or purchase, a corresponding mandatory
repayment and/or commitment reduction is made pursuant to Section 4.02(k), (iv)
make any payment of principal in respect of the Intercompany Mortgage Note,
except as expressly permitted by Section 9.03(c), (v) make any payment of
principal whatsoever in respect of the Assigned Starwood Note or (vi) make (or
give any notice in respect of) any voluntary or optional payment or prepayment
on or redemption or acquisition for value of (including, without limitation, by
way of depositing with the trustee with respect thereto or any Person, money or
securities before due for the purpose of paying when due) any of the ITT Notes
or any refinancing thereof, in each case except with the proceeds of Permitted
Refinancing Indebtedness permitted to be incurred pursuant to the provisions of
Section 9.04.
9.13 Limitation on Certain Restrictions on Subsidiaries. No
Borrower will permit any of its Subsidiaries to, directly or indirectly, create
or otherwise cause or suffer to exist or become effective any encumbrance or
restriction on the ability of any such Subsidiary to (a) pay dividends or make
any other distributions on its capital stock or any other interest or
participation in its profits owned by such Borrower or any of its Subsidiaries,
or pay any Indebtedness owed to such Borrower or any of its Subsidiaries, (b)
make loans or advances to such Borrower or any of its Subsidiaries or (c)
transfer any of its properties or assets to such Borrower or any of its
Subsidiaries, except for such encumbrances or restrictions existing under or by
reason of (i) applicable law, (ii) this Agreement and the other Credit
Documents, (iii) the Senior Notes and the Senior Note Documents, (iv) customary
provisions restricting subletting or assignment of any lease governing a
leasehold interest of any Borrower or any of its Subsidiaries, (v) customary
provisions restricting assignment of any licensing agreement entered into by
any Borrower or any of its Subsidiaries in the ordinary course of business,
(vi) restrictions on the transfer of any asset subject to a Lien permitted by
Section 9.01, (vii) Non-Recourse Indebtedness which may have restrictions that
relate to the assets serving as security therefor or to the respective
Subsidiary which is the obligor with respect to such Non- Recourse
Indebtedness, (viii) Indebtedness incurred pursuant to Section 9.04(x) which
may have restrictions that existed with respect thereto at the time of the
consummation of the respective Permitted Acquisition, so long as such
restrictions were not imposed, or modified, in contemplation of the respective
Permitted Acquisition, (ix) Contractual Obligations described in Schedule 7.18,
(x) Permitted Refinancing Indebtedness so long as such restrictions are in no
event more onerous than those contained in the Indebtedness being refinanced,
and (xi) restrictions applicable to ESI and its Subsidiaries which arise as a
result of the consummation of one or more ESI Transactions, in each case so
long as the respective transaction (and the restrictions resulting therefrom)
are approved pursuant to the definition of ESI Transaction contained herein.
9.14 Limitation on Issuance of Capital Stock. (a) No Parent
Company will issue (i) any Preferred Stock or (ii) any redeemable Capital Stock
(other than Capital Stock redeemable
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at the sole option of the respective Parent Company); provided that so long as
no Specified Default, and no Event of Default, then exists or would result
therefrom, (x) the Parent Companies shall be permitted to issue Qualified
Preferred Stock (which is not Perpetual Preferred Stock) so long as the Net
Proceeds therefrom shall be applied as a mandatory repayment and/or commitment
reduction in accordance with the requirements of Section 4.02(d) and (y) the
Parent Companies shall be permitted to issue Perpetual Preferred Stock so long
as the Net Proceeds therefrom shall be applied as a mandatory repayment and/or
commitment reduction in accordance with the requirements of Section 4.02(c).
(b) No Subsidiary of either Parent Company or of any
other Borrower shall issue any Capital Stock (including by way of sales of
treasury stock) or any options or warrants to purchase, or securities
convertible into, Capital Stock, except (i) for transfers and replacements of
then outstanding shares of Capital Stock, (ii) for Capital Stock splits,
Capital Stock dividends and other issuances which do not decrease the
percentage ownership of the Parent Companies or any of their Subsidiaries in
any class of the capital stock of such Subsidiary, (iii) to qualify directors
to the extent required by applicable law, (iv) for issuances by newly created
or acquired Subsidiaries in accordance with the terms of this Agreement, (v)
for issuances of limited partnership interests by SLT RLP and/or SLC OLP as
contemplated by the last paragraph of Section 9.02, (vi) up to $50 million
liquidation preference of VNU Preferred Stock may be issued in connection with
the WD Disposition and (vi) issuances of Capital Stock by ESI and/or its
Subsidiaries pursuant to one or more ESI Transactions effected in accordance
with the definition of ESI Transaction contained herein.
9.15 Business. No Borrower will, nor will any Borrower
permit any of its Subsidiaries to, engage (directly or indirectly) in any
business other than the Hotel and Gaming Businesses; provided that until the
consummation of the sale or disposition of ESI, ITT and its Subsidiaries may
engage in the ownership and operation of educational institutions (although the
Parent Companies and their Subsidiaries shall not expand such businesses in any
material respect).
9.16 Limitation on Creation of Subsidiaries. (a) Except as
otherwise specifically provided in following clause (b), no Borrower will, nor
will any Borrowers permit any of its Subsidiaries to, establish, create or
acquire after the Initial Borrowing Date any Subsidiary; provided that, (i) any
Borrower and its Wholly-Owned Subsidiaries shall be permitted to establish or
create Wholly-Owned Subsidiaries so long as the Capital Stock of such new
Subsidiary that is owned by any Credit Party is pledged pursuant to, and to the
extent required by, the Pledge Agreement (and so long as any actions required
to be taken by the Pledge and Security Agreement in connection therewith are in
fact taken), (ii) such new Subsidiary, if required by Section 8.15, executes a
counterpart of the Guaranty and the Pledge and Security Agreement and (iii)
such new Subsidiary, to the extent requested by any Agent or the Required
Lenders, takes all actions required pursuant to Section 8.15. In addition,
each new Wholly-Owned Subsidiary shall execute and deliver, or cause to be
executed and delivered, all other relevant documentation of the type described
in Section 5 as such new Subsidiary would have had to deliver if such new
Subsidiary were a Credit Party on the Initial Borrowing Date. Without
prejudice to the preceding provisions of this Section 9.16(a), the Collateral
Agent may require that the Capital Stock of a new Subsidiary (in the case of a
Foreign Subsidiary, subject to limitations on the percentage of voting stock
required to be pledged which are consistent with the limitations provided in
the
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Pledge and Security Agreement as originally in effect) be pledged pursuant to
an agreement in a form suitable for enforcement in the jurisdiction in which
the new Subsidiary is incorporated.
(b) In addition to Subsidiaries created pursuant to
preceding clause (a), each Borrower may establish or acquire one or more
Subsidiaries after the Initial Borrowing Date as a result of Investments
expressly permitted to be made pursuant to Section 9.05; provided that (x) all
Capital Stock of each such Subsidiary shall be pledged by any Credit Party
which owns same to the extent required by the Pledge and Security Agreement and
(y) if any such Subsidiary is, or becomes, a Wholly-Owned Subsidiary of such
Borrower, such Subsidiary shall at such time take all actions as would
otherwise be required pursuant to Section 9.16(a) in connection with the
creation of a new Wholly-Owned Subsidiary.
9.17 ITT Indenture. ITT shall at no time have any
Subsidiaries which constitute Restricted Subsidiaries for purposes of the ITT
Indenture. The foregoing covenant contained in this Section 9.17 shall cease
to apply at such time, if any, as all ITT Notes have been repaid in full and
the ITT Indenture (except for indemnities and similar provisions) has
terminated in accordance with its terms.
9.18. Preferred Stock Subsidiaries. The Parent Companies
shall not permit any Preferred Stock Subsidiary to issue additional shares of
Capital Stock unless following such issuance (i) Starwood REIT owns 100% of the
Preferred Stock and the Corporation and Starwood REIT own in the aggregate,
100% of the remaining Capital Stock, of such Preferred Stock Subsidiary.
Furthermore, all Capital Stock of each Preferred Stock Subsidiary owned by any
Credit Party shall be pledged as required by the Pledge and Security Agreement.
No Preferred Stock Subsidiary shall own any Real Property, and no Preferred
Stock Subsidiary shall incur any Indebtedness other than trade payables
incurred in the ordinary course of business or create any consensual Liens with
respect to its Assets.
9.19. Accounting Changes. Starwood REIT and the Corporation
shall not make, and shall not permit any other Credit Party or any of their
Subsidiaries to make, any material change in accounting treatment and reporting
practices or tax reporting treatment, except as required by GAAP or law and
disclosed to the Lenders and the Lead Agents in writing.
9.20. Partnership Agreements. (x) Neither Starwood REIT nor
SLT RLP shall amend or modify Section 7.3 of SLT RLP's Partnership Agreement or
default under any obligations under SLT RLP's Partnership Agreement and (y)
neither the Corporation nor SLC OLP shall amend or modify Section 7.3 of SLC
OLP's Partnership Agreement or default under any obligations under SLC OLP's
Partnership Agreement.
9.21. ERISA Plan Assets. The Parent Companies shall not, and
shall not permit any other Credit Party to, have any of their assets constitute
"plan assets" within the meaning of DOL Regulation Section 2510.3-101.
9.22 Inactive Subsidiaries No Inactive Subsidiary will
engage in any significant business activities or have any significant assets or
liabilities; provided that if any Inactive Subsidiary acquires significant
assets or engages in significant business activities, such Inactive
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Subsidiary shall take all actions required by Section 8.15 as if same were a
newly-acquired Domestic Subsidiary.
SECTION 10. Events of Default. Upon the occurrence of any
of the following specified events (each an "Event of Default"):
10.01 Payments. Any Borrower shall (i) default in the
payment when due of any principal of (or any Face Amount of, as the case may
be) any Loan or any Note or (ii) default, and such default shall continue
unremedied for two or more Business Days, in the payment when due of any
interest on any Loan or Note, any Unpaid Drawing (or the interest thereon) or
any Fees or any other amounts owing hereunder or thereunder; or
10.02 Representations, etc. Any representation, warranty or
statement made by any Credit Party herein or in any other Credit Document or in
any certificate delivered to any Lead Agent or any Lender pursuant hereto or
thereto shall prove to be untrue in any material respect on the date as of
which made or deemed made; or
10.03 Covenants. Any Credit Party shall (i) default in the
due performance or observance by it of any term, covenant or agreement
contained in Section 8.01(f)(i), 8.08, 8.11, 8.17, 8.19, 8.21 or Section 9 or
Section 13.19 (ii) default in the due performance or observance by it of any
other term, covenant or agreement contained in this Agreement or any other
Credit Document (other than those set forth in Sections 10.01 and 10.02 and
clause (i) of this Section 10.03) and such Default as described in this clause
(ii) shall continue unremedied for a period of 30 days after written notice
thereof to any Borrower by any Lead Agent or any Lender; or
10.04 Default Under Other Agreements. (i) Any Credit Party
or any of their Subsidiaries shall (x) default in any payment of any
Indebtedness (other than the Obligations) beyond the period of grace, if any,
provided in the instrument or agreement under which such Indebtedness was
created or (y) default in the observance or performance of any agreement or
condition relating to any Indebtedness (other than the Obligations and Excluded
Debt) or contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event shall occur or condition exist, the effect
of which default or other event or condition is to cause, or to permit the
holder or holders of such Indebtedness (or a trustee or agent on behalf of such
holder or holders) to cause, without any further notice (other than a notice of
acceleration, if required) or any further lapse of time, such Indebtedness to
become due prior to its stated maturity, or (ii) any Indebtedness (other than
the Obligations and Excluded Debt, provided that Excluded Debt shall cease to
be excluded by this parenthetical to the extent same has become due and payable
as described below and same has not been repaid in full or the acceleration
rescinded within 5 Business Days) of any Credit Party or any of their
Subsidiaries shall be declared to be (or shall become) due and payable, or
required to be prepaid other than by a regularly scheduled required prepayment,
prior to the stated maturity thereof, provided that it shall not be a Default
or an Event of Default under this Section 10.04 unless the principal amount of
any one issue of such Indebtedness, or the aggregate principal amount of all
such Indebtedness as described in preceding clauses (i) and (ii) is at least
(A) $10,000,000 (or, in the case of currencies other than Dollars, the Dollar
Equivalent thereof) in the case of Recourse Indebtedness or (B) $20,000,000
(or, in the case of currencies other than Dollars, the Dollar Equivalent
thereof) in the case of Non-Recourse
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Indebtedness; provided further, that, solely for purposes of clause (B) of the
immediately preceding proviso, to the extent Non-Recourse Indebtedness of any
Subsidiary of the Parent Companies which is not a Borrower is subject to the
occurrences described in clauses (i) and/or (ii) above, and if the aggregate
amount theretofore invested by the Parent Companies and their Subsidiaries
(excluding the Subsidiary which is the obligor with respect to such
Non-Recourse Indebtedness or which owns the assets subject thereto) in the
Subsidiary referenced in the immediately preceding parenthetical and any of its
Subsidiaries is less than the aggregate principal amount of such Non-Recourse
Indebtedness (in each case with such investments calculated without regard to
any write-downs or write-offs thereof), such lesser amount invested shall be
used in determining whether the $20,000,000 amount specified in clause (B) of
the immediately preceding proviso has been equalled or exceeded (i.e., if the
Parent Companies and their Subsidiaries invest $10,000,000 in a Subsidiary for
the purpose of acquiring a Hotel, which Hotel is subject to $100,000,000 of
Non-Recourse Indebtedness secured by such Hotel and if such Non-Recourse
Indebtedness is subject to the occurrences described in clauses (i) and/or (ii)
above, then the amount of such investment (i.e., $10,000,000) shall be used in
determining whether the $20,000,000 amount specified in clause (B) of the
immediately preceding proviso has been equaled or exceeded); or
10.05 Bankruptcy, etc. Any Credit Party or any of their
Subsidiaries shall commence a voluntary case concerning itself under Title 11
of the United States Code entitled "Bankruptcy," as now or hereafter in effect,
or any successor thereto (the "Bankruptcy Code"); or an involuntary case is
commenced against any Credit Party or any of their Subsidiaries, and the
petition is not controverted within 10 days, or is not dismissed within 60
days, after commencement of the case; or a custodian (as defined in the
Bankruptcy Code) is appointed for, or takes charge of, all or substantially all
of the property of any Credit Party or any of their Subsidiaries, or any Credit
Party or any of their Subsidiaries commences any other proceeding under any
reorganization, arrangement, adjustment of debt, relief of debtors,
dissolution, insolvency, receivership, administration or liquidation or similar
law of any jurisdiction whether now or hereafter in effect relating to any
Credit Party or any of their Subsidiaries, or there is commenced against any
Credit Party or any of their Subsidiaries any such proceeding which remains
undismissed for a period of 60 days, or any Credit Party or any of their
Subsidiaries is adjudicated insolvent or bankrupt; or any order of relief or
other order approving any such case or proceeding is entered; or any Credit
Party or any of their Subsidiaries suffers any appointment of any custodian,
administrator, administrative receiver or the like for it or any substantial
part of its property to continue undischarged or unstayed for a period of 60
days; or any Credit Party or any of their Subsidiaries makes a general
assignment for the benefit of creditors; or any corporate action is taken by
any Credit Party or any of their Subsidiaries for the purpose of effecting any
of the foregoing; or
10.06 ERISA. (a) Any Plan shall fail to satisfy the minimum
funding standard required for any plan year or part thereof under Section 412
of the Code or Section 302 of ERISA or a waiver of such standard or extension
of any amortization period is sought or granted under Section 412 of the Code
or Section 303 or 304 of ERISA, a Reportable Event shall have occurred, a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan
subject to Title IV of ERISA shall be subject to the advance reporting
requirement of PBGC Regulation Section 4043.61 (without regard to subparagraph
(b)(1) thereof) and an event described in subsection .62, .63, .64, .65, .66,
.67 or .68 of PBGC Regulation Section 4043 shall be reasonably expected to
occur with respect to such Plan within the following 30 days, any Plan which is
subject
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to Title IV of ERISA shall have had or is likely to have a trustee appointed to
administer such Plan, any Plan which is subject to Title IV of ERISA is, shall
have been or is likely to be terminated or to be the subject of termination
proceedings under ERISA, any Plan shall have an Unfunded Current Liability, a
contribution required to be made with respect to a Plan or a Foreign Pension
Plan has not been timely made, any Borrower or any Subsidiary of any Borrower
or any ERISA Affiliate has incurred or is likely to incur any liability to or
on account of a Plan under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064,
4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29), 4971 or 4975 of the
Code or on account of a group health plan (as defined in Section 607(1) of
ERISA or Section 4980B(g)(2) of the Code) under Section 4980B of the Code, or
any Borrower or any Subsidiary of any Borrower has incurred or is likely to
incur liabilities pursuant to one or more employee welfare benefit plans (as
defined in Section 3(1) of ERISA) that provide benefits to retired employees or
other former employees (other than as required by Section 601 of ERISA) or
Plans or Foreign Pension Plans; (b) there shall result from any such event or
events the imposition of a lien, the granting of a security interest, or a
liability or a material risk of incurring a liability; and (c) such lien,
security interest or liability, individually, and/or in the aggregate has had,
or could reasonably be expected to have, a Material Adverse Effect; or
10.07 Security Documents. At any time after the execution
and delivery thereof, (i) any of the Security Documents (except as expressly
provided by the terms thereof) shall cease to be in full force and effect, or
shall cease to give the Collateral Agent for the benefit of the Secured
Creditors the Liens, rights, powers and privileges purported to be created
thereby (including, without limitation, a perfected security interest in, and
Lien on, all of the Collateral to the extent required in accordance with the
requirements of the respective Security Documents, in favor of the Collateral
Agent, superior to and prior to the rights of all third Persons (except as
permitted by Section 9.01); and subject to no other Liens (except as permitted
by Section 9.01), or (ii) any Credit Party shall default in the due performance
or observance of any term, covenant or agreement on its part to be performed or
observed pursuant to any of the Security Documents and such default shall
continue beyond any grace period specifically applicable thereto pursuant to
the terms of such Security Document; or
10.08 Guaranties. (a) Except in accordance with the express
terms of the respective Guaranty, any Guaranty or any provision thereof shall
cease to be in full force or effect as to the relevant Guarantor, or any
Guarantor or Person acting by or on behalf of such Guarantor shall deny or
disaffirm such Guarantor's obligations under the relevant Guaranty, or (b) any
Guarantor shall default in the due performance or observance of any term,
covenant or agreement on its part to be performed or observed pursuant to such
Guaranty; or
10.09 Judgments. One or more judgments or decrees shall be
entered against any Borrower or any Subsidiary of any Borrower involving in the
aggregate for the Borrowers and their Subsidiaries a liability (not paid or
fully covered by a reputable and solvent insurance company) and such judgments
and decrees either shall be final and non-appealable or shall not be vacated,
discharged or stayed or bonded pending appeal for any period of 30 consecutive
days, and the aggregate amount of all such judgments exceeds $10,000,000 (or in
the case of currencies other than Dollars, the Dollar Equivalent thereof); or
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10.10 Change of Control. A Change of Control shall occur; or
10.11 REIT Status. Starwood REIT shall cease, for any
reason, to maintain its status as a real estate investment trust under Sections
856 through 860 of the Code or its status as grandfathered from the application
of Section 269B(a)(3) of the Code pursuant to Section 136(c)(3) of the Deficit
Reduction Act of 1984;
then, and in any such event, and at any time thereafter, if any Event of
Default shall then be continuing, the Paying Agent, upon the written request of
the Required Lenders, shall by written notice to the Borrowers, take any or all
of the following actions, without prejudice to the rights of any Lead Agent,
any Lender or the holder of any Note to enforce its claims against any Credit
Party (provided, that, if an Event of Default specified in Section 10.05 shall
occur with respect to any Borrower, the result which would occur upon the
giving of written notice by the Paying Agent as specified in clauses (i) and
(ii) below shall occur automatically without the giving of any such notice):
(i) declare the Total Commitment terminated, whereupon all Commitments of each
Lender shall forthwith terminate immediately and any Commitment Commission
shall forthwith become due and payable without any other notice of any kind;
(ii) declare the principal of, the Face Amount of and any accrued interest in
respect of all Loans and the Notes and all Obligations owing hereunder
(including Unpaid Drawings) and thereunder to be, whereupon the same shall
become, forthwith due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by each Credit Party; (iii)
terminate any Letter of Credit which may be terminated in accordance with its
terms; (iv) direct the relevant Borrowers to pay (and the relevant Borrowers
agree that upon receipt of such notice, or upon the occurrence of an Event of
Default specified in Section 10.05 with respect to any Borrower, they will pay)
to the Collateral Agent at the appropriate Payment Office such additional
amount of cash, to be held as security by the Collateral Agent for the
respective Borrower's reimbursement obligations in respect of Letters of Credit
then outstanding, as is equal to the aggregate Stated Amount of all Letters of
Credit then outstanding for the account of such Borrower; (v) enforce, as
Collateral Agent, all of the Liens and security interests created pursuant to
the Security Documents; (vi) apply any cash collateral held pursuant to
Section 4.02 to the repayment of the Obligations; and (vii) direct the
appropriate Alternate Currency Revolving Loan Borrowers to pay (and each
Alternate Currency Revolving Loan Borrower agrees that upon receipt of such
notice, or upon the occurrence of an Event of Default specified in Section
10.05 with respect to any Borrower, it will pay) to the Paying Agent (without
duplication) all amounts required to be paid pursuant to clause (j) of Schedule
III.
SECTION 11. Definitions and Accounting Terms.
11.01 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):
"Absolute Rate" shall mean an interest rate (rounded to the
nearest .0001) expressed as a decimal.
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"Acceptance Fee" shall mean, in respect of a Bankers'
Acceptance, a fee calculated on the Face Amount of such Bankers' Acceptance at
a rate per annum equal to the Applicable Margin that would be payable with
respect to a Revolving Loan maintained as a Eurodollar Loan drawn on the
Drawing Date of such Bankers' Acceptance. Acceptance Fees shall be calculated
on the basis of the term to maturity of the Bankers' Acceptance and a year of
365 days.
"Acquiring Person" shall have the meaning provided in
Section 9.02(ix).
"Acquisition" shall mean the acquisition by the Corporation of
100% of the issued and outstanding capital stock of ITT by way of (i) the
merger of Mergeco with and into ITT, with ITT being the surviving entity of
such merger, pursuant to, and in accordance with, the terms of the Acquisition
Agreement (with the payments in respect thereof to be made in accordance with
the terms of the Acquisition Agreement, consisting of cash consideration and
the issuance of paired shares of the Parent Companies, in each case in
accordance with the terms of the Acquisition Agreement) and (ii) the purchase
by the Corporation of Starwood REIT's shares of ITT (following the consummation
of the merger described in clause (i) above) through the issuance of the
Intercompany Mortgage Note and the payment of cash (borrowed by the Corporate
Borrowers), or the assumption of the obligations and liabilities of Starwood
REIT and/or SLT RLP in respect of existing Indebtedness, in the amount of
$2,092,500,000.
"Acquisition Agreement" shall mean the Amended and Restated
Agreement and Plan of Merger, dated as of November 12, 1997, among the
Corporation, Mergeco, Starwood REIT and ITT, as in effect on the Initial
Borrowing Date.
"Acquisition Documents" shall mean the Acquisition Agreement
and all other documents, instruments and agreements relating to the
Acquisition.
"Adjusted Combined Net Income" for any period shall mean
Combined Net Income for such period plus, without duplication, the sum of the
amount of all net non-cash charges (including, without limitation,
depreciation, amortization, deferred tax expense and non-cash interest expense,
but excluding any net non-cash charges reflected in Adjusted Combined Working
Capital) and net non-cash losses which were included in arriving at Combined
Net Income for such period less the sum of the amount of all net non-cash
income and gains included in arriving at the Combined Net Income for such
period; provided that gains and losses from sales of assets (other than sales
of inventory in the ordinary course of business) shall be excluded to the
extent same would otherwise be included in Adjusted Combined Net Income for the
respective period.
"Adjusted Combined Working Capital" at any time shall mean
Combined Current Assets (but excluding therefrom all cash and Cash Equivalents
otherwise reflected therein) less Combined Current Liabilities of such Person.
"Adjusted Funds From Operations" shall mean, for any period,
Combined Net Income for such period plus (a) the sum of the following amounts
for such period to the extent deducted in the determination of Combined Net
Income for such period; (i) depreciation expense,
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(ii) amortization expense and other non-cash charges of the Parent Companies
and their Subsidiaries with respect to their real estate assets for such
period, (iii) losses from Asset Sales, losses resulting from restructuring of
Indebtedness and other extraordinary losses, (iv) amortization of financing
costs and (v) any other non-recurring expenses which are not a part of Adjusted
Funds From Operations in the ordinary course of business and which have been
approved by the Parent Companies' independent public accountants of recognized
national standing; less (b) the sum of the following amounts to the extent
included in the determination of Combined Net Income for such period: (i) gains
from Asset Sales, gains resulting from restructuring of Indebtedness and other
extraordinary gains, and (ii) the applicable share of Combined Net Income of
the Parent Companies' Unconsolidated Entities; plus (c) each Parent Company's
pro rata share of Adjusted Funds From Operations of such Parent Company's
Unconsolidated Entities based upon such Parent Company's percentage ownership
interest in such Unconsolidated Entities.
"Adjustment Date" shall have the meaning provided in
Section 1.18(b).
"Administrative Agents" shall have the meaning provided in the
first paragraph of this Agreement.
"Affected Eurodollar Loans" shall have the meaning provided in Section 4.02(j).
"Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with, such specified Person. For purposes of this definition,
"control" (including, with correlative meanings, the terms "controlling,"
"controlled by" and "under common control with"), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of such Person,
whether through the ownership of voting securities, by agreement or otherwise;
provided that beneficial ownership of 5% or more of the voting securities, of a
Person shall be deemed to be control.
"Affiliate Debt" shall mean any Indebtedness, whether now
existing or hereafter incurred, owed by any Credit Party or any of its
Subsidiaries to any other Credit Party or any of its Affiliates (including,
without limitation, any Intercompany Existing Indebtedness).
"Agent" shall mean each of the Lead Agents, each
Administrative Agent, the Syndication Agent, the Documentation Agent,
Collateral Agent and the Paying Agent.
"Aggregate Non-Alternate Currency Revolving Exposure" at any
time shall mean the sum of (i) the aggregate principal amount of all Dollar
Revolving Loans, Swingline Loans and Competitive Bid Loans then outstanding and
(ii) the aggregate amount of all Letter of Credit Outstandings at such time.
"Aggregate Revolving Credit Exposure" at any time means the
sum of (i) the aggregate principal amount of all Revolving Loans then
outstanding (for this purpose, (x) at all times prior to the occurrence of any
Sharing Event and the automatic conversion of Alternate Currency Revolving
Loans to Dollar Revolving Loans pursuant to Section 1.17, using the Dollar
Equivalent of the principal amount or Face Amount, as the case may be, of each
Alternate
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Currency Revolving Loan then outstanding and (y) at all times after any
occurrence as described in preceding clause (x), giving effect to the
conversions to Dollar obligations required by Section 1.17), plus (ii) the
aggregate principal amount of all Swingline Loans and Competitive Bid Loans
then outstanding plus (iii) the aggregate amount of all Letter of Credit
Outstandings at such time.
"Agreement" shall mean this Credit Agreement, as modified,
supplemented or amended (including any amendment and restatement hereof) from
time to time.
"Alternate Currency" shall mean each of Canadian Dollars,
French Francs and Pounds Sterling.
"Alternate Currency Equivalent" shall mean the Canadian Dollar
Equivalent, French Franc Equivalent or Sterling Equivalent, as the case may be.
"Alternate Currency Lender" shall mean (i) each Lender listed
on Schedule I-B, and (ii) each additional Person that becomes an Alternate
Currency Lender party hereto in accordance with Section 1.14 or 13.04(b). An
Alternate Currency Lender shall cease to be an "Alternate Currency Lender" when
it has assigned all of its Alternate Currency Revolving Loan Sub-Commitments in
accordance with Section 1.14 and/or 13.04(b). For purposes of this Agreement,
(x) unless the context otherwise indicates, each reference to an Alternate
Currency Lender which has one or more affiliates which act as an Alternate
Currency Lender with respect to one or more other Alternate Currencies shall
include such affiliate or affiliates and (y) the terms "Lender" and "RL Lender"
include each Alternate Currency Lender unless the context otherwise requires.
"Alternate Currency Revolving Loan" shall have the meaning
provided in Section 1.01(c).
"Alternate Currency Revolving Loan Borrower" shall mean (i)
the Corporate Borrowers, as joint and several obligors, and (ii) any
Wholly-Owned Foreign Subsidiary of the Corporation that is found acceptable to,
and approved in writing by, the Paying Agent. It is understood and agreed
that, in approving any Alternate Currency Revolving Loan Borrower, the Paying
Agent may restrict the Borrowings by such Alternate Currency Revolving Loan
Borrower to less than all of the Alternate Currencies, in which case such
Person shall constitute an Alternate Currency Revolving Loan Borrower with
respect to only those Alternate Currencies as have been so approved by the
Paying Agent.
"Alternate Currency Revolving Loan Sub-Commitment" means, as
to any Alternate Currency Lender, the Pounds Sterling Revolving Loan
Sub-Commitment, Canadian Dollar Revolving Loan Sub-Commitment and/or French
Franc Revolving Loan Sub-Commitment, as appropriate, of the respective
Alternate Currency Lender.
"Alternate Currency RL Percentage" of any Lender at any time
shall mean, with respect to a given Alternate Currency, a fraction (expressed
as a percentage) the numerator of which is the Alternate Currency Revolving
Loan Sub-Commitment of such Alternate Currency Lender with respect to such
Alternate Currency at such time and the denominator of which is the
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aggregate amount of Alternate Currency Revolving Loan Sub-Commitments of all
Alternate Currency Lenders with respect to such Alternate Currency at such
time.
"Applicable Asset Sale Percentage" shall mean (i) in the case
of Scheduled Asset Dispositions, 100%, and (ii) in the case of all other Asset
Sales, 100%, provided that at any time when (x) the aggregate outstanding
principal amount of Tranche I Term Loans is equal to or less than $500,000,000
and (y) no Specified Default, and no Event of Default, then exists, then the
Applicable Asset Sale Percentage shall be reduced to 50% for so long as the
conditions specified in preceding clauses (x) and (y) continue to be satisfied,
provided further, that if at any time after all Tranche I Term Loans have been
repaid in full and each of (1) the Combined Leverage Ratio is less than
4.0:1.0, (2) the Unsecured Debt Rating of each Parent Company (or both Parent
Companies) shall be at least BBB- by S&P and Baa3 by Xxxxx'x and (3) no
Specified Default, and no Event of Default, then exists, then the Applicable
Asset Sale Percentage shall be reduced to zero for so long as the conditions
specified in preceding clauses (1), (2) and (3) continue to be satisfied.
"Applicable Commitment Commission Percentage" and "Applicable
Margin" shall mean, from and after any Start Date to and including the
corresponding End Date, the respective percentage per annum set forth below
under the respective Type of Loans (or under Applicable Commitment Commission
Percentage in the case of the Applicable Commitment Commission Percentage) and
opposite the respective Level (i.e., Xxxxx 0, Xxxxx 0, Xxxxx 0, Xxxxx 0, Xxxxx
5, Xxxxx 0, Xxxxx 0 or Level 8, as the case may be) indicated to have been
achieved on the applicable Test Date for such Start Date (as shown in the
respective officer's certificate delivered pursuant to Section 8.01(e)):
Base Rate
Unsecured Debt Loan and Applicable
Rating of Parent Canadian Commitment
Companies Combined Euro Rate Loan Prime Rate Commission
Level (S&P/Xxxxx'x) Leverage Ratio Margin Loan Margin Percentage
------------- -------------- ------ ----------- ----------
8 Greater than or 2.00% 1.00% 0.50%
equal to 6.0x
7 Less than 6.0x and 1.75% 0.75% 0.50%
greater than or
equal to 5.5x
6 BB-/Ba3 or less than 5.5x and 1.50% 0.50% 0.375%
lower greater than or
equal to 5.0x
5 BB/Ba2 less than 5.0x and 1.25% 0.25% 0.30%
greater than or
equal to 4.5x
4 less than 4.5x and 1.00% 0.25% 0.30%
greater than or
equal to 4.0x
3 BB+/Ba1 less than 4.0x and 0.75% 0.00% 0.25%
greater than or
equal to 3.0x
2 BBB-/Baa3 less than 3.0x and 0.625% 0.00% 0.20%
greater than or
equal to 2.5x
1 BBB/Baa2 or less than 2.5x 0.50% 0.00% 0.15%
better
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; provided, however, that if the Parent Companies fail to deliver the financial
statements required to be delivered pursuant to Section 8.01(a) or (b)
(accompanied by the officer's certificates required by Section 8.01(e) showing
the applicable Combined Leverage Ratio and Unsecured Debt Ratings on the
relevant Test Date) on or prior to the respective date required by such
Sections, then Level 8 Pricing shall apply until such time, if any, as the
financial statements required as set forth above and the accompanying officer's
certificates have been delivered showing that the pricing for the respective
Margin Adjustment Period is at a Level which is less than Level 8 (it being
understood that, in the case of any late delivery of the financial statements
and officer's certificates as so required, the reduced Applicable Commitment
Commission Percentage and Applicable Margin, if any, shall apply only from and
after the date of the delivery of the complying financial statements and
officer's certificates); provided further, that to the extent that neither
Parent Company has been assigned an Unsecured Debt Rating, the relevant level
to be used shall be the level corresponding to the Combined Leverage Ratio. If
the Combined Leverage Ratio and the Unsecured Debt Rating of the Parent
Companies (after giving effect to the second proviso below) shall correspond to
different levels on the grid above, the relevant level to be used shall be the
level corresponding to the lower margins and commitment fees, unless such
Combined Leverage Ratio and Unsecured Debt Ratings correspond to levels which
are two or more levels apart (the level which corresponds to the higher margins
and commitment fees being called the "Higher Level"), in which case the level
which is one level below the Higher Level shall be the relevant level to be
used; provided that if the Unsecured Debt Ratings established by S&P and
Xxxxx'x are at least BBB- and Baa3, respectively, the relevant level to be used
shall be the level corresponding to the Unsecured Debt Rating; provided
further, that if the Unsecured Debt Ratings established by S&P and Xxxxx'x
shall correspond to different levels on the grid above, then the level
corresponding to the Unsecured Debt Rating which is one level below the Higher
Level shall be the relevant Unsecured Debt Ratings level. Notwithstanding
anything to the contrary contained above, (i) in the case of the Applicable
Commitment Commission Percentage, for the period from the Effective Date to but
not including the first Start Date after the Parent Companies' fiscal quarter
ended September 30, 1998, Level 6 pricing shall apply, and (ii) the Applicable
Margin, for the period from the Effective Date to but not including the date
which occurs six months after the Effective Date (or, if later, the first Start
Date after the Parent Companies' fiscal quarter ended June 30, 1998), in the
case of Loans (x) maintained as Euro Rate Loans, shall be 1.875%, or (y)
maintained as Base Rate Loans or Canadian Prime Rate Loans,
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shall be 0.875%. Furthermore and notwithstanding anything to the contrary
contained above in this definition, Level 8 pricing shall apply at all times
when (i) any Specified Default, or any Event of Default, exists or (ii) the
Combined Leverage Ratio is greater than or equal to 6.0 to 1.0.
"Applicable Currency" shall mean, with respect to any
Obligations, Dollars or, to the extent relating to Alternate Currency Loans,
the respective Alternate Currency, in which the respective Loans or related
amounts are denominated.
"Applicable Debt Percentage" shall mean 100%, provided that if
at any time after all Tranche I Term Loans have been repaid in full (x) either
(1) the Combined Leverage Ratio (after giving effect to any issuance of
Indebtedness then being made and any concurrent application of the proceeds
thereof) is less than 4.0:1.0 or (2) the Unsecured Debt Rating of each Parent
Company (or both Parent Companies) shall be at least BBB- by S&P and Baa3 by
Xxxxx'x, and (y) no Specified Default, and no Event of Default, then exists,
then the Applicable Debt Percentage shall be reduced to zero for so long as the
conditions are satisfied in preceding clauses (x) and (y) continue to be
satisfied.
"Applicable ECF Percentage" shall mean initially 50%; provided
that if on last day of the relevant Excess Cash Payment Period (x) all Tranche
I Terms Loans shall have been repaid in full, (y) either (1) the Combined
Leverage Ratio is less than 4.0:1.0 (as determined by the officers' certificate
delivered with the financial statements for such Excess Cash Payment Period
pursuant to Section 8.01(e)) or (2) the Unsecured Debt Rating of each Parent
Company (or both Parent Companies) shall be at least BBB- by S&P and Baa3 by
Xxxxx'x, and (z) no Specified Default, and no Event of Default, then exists,
then the Applicable ECF Percentage for such Excess Cash Payment Period shall be
reduced to zero.
"Applicable Equity Percentage" shall mean 100%, provided that
at any time when (x) no Specified Default, and no Event of Default, then exists
and (y) the Combined Leverage Ratio is less than 5.0:1.0, then the Applicable
Equity Percentage shall be reduced to zero for so long as the conditions
specified in preceding clauses (x) and (y) continue to be satisfied.
"Applicable Margin" see definition of "Applicable Commitment
Commission Percentage" above.
"Applicable Recovery Event Percentage" shall mean 100%,
provided if at any time after all Tranche I Term Loans have been repaid in full
(x) either (1) the Combined Leverage Ratio is less than 4.0:1.0 or (2) the
Unsecured Debt Rating of each Parent Company (or both Parent Companies) shall
be at least BBB- by S&P and Baa3 by Xxxxx'x and (y) no Specified Default, and
no Event of Default, then exists, then the Applicable Recovery Event Percentage
shall be reduced to zero for so long as the conditions are satisfied in
preceding clauses (x) and (y) continue to be satisfied.
"Asset Sale" shall mean any sale, transfer or other
disposition by any Borrower or any of its Subsidiaries to any Person other than
any Borrower or any Wholly-Owned Subsidiary of any Borrower of any Asset
(including, without limitation, any Capital Stock or other securities of
another Person, but excluding the sale by the Parent Companies of their own
Capital Stock) of
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such Borrower or such Subsidiary other than (i) sales, transfers or other
dispositions of inventory made in the ordinary course of business, (ii) sales,
transfers or other dispositions of assets pursuant to Sections 9.02(iii), (iv),
(v) and (vi) and (iii) any single sale of assets (or series of related sales of
assets) which generates Net Sale Proceeds of less than $500,000.
"Assets" means, with respect to any Person, all assets of such
Person that would, in accordance with GAAP, be classified as assets of a
company conducting a business the same as or similar to that of such Person,
including without limitation, all hotels, mortgage loans, management
agreements, franchise agreements, representation agreements, undeveloped land,
joint ventures, hotel construction and available cash balances.
"Assigned Starwood Note" shall mean promissory notes in the
aggregate amount of $2,127,996,245.68 assigned to the Assigned Starwood Note
LLC as part of the WD Disposition, which promissory notes shall be in the form
delivered to the Lead Agents and the Lenders prior to the Initial Borrowing
Date and shall in any event be subordinated as required by Section 5.17.
"Assigned Starwood Note LLC" shall mean WD Investment, L.L.C.
which is a limited liability company organized under the laws of the State of
Delaware (i) the non-member manager of which shall be ITT and (ii) the 100%
member of which shall be WD Parent Corp.
"Assignment and Assumption Agreement" shall mean the
Assignment and Assumption Agreement substantially in the form of Exhibit M
(appropriately completed).
"Authorized Officer" of any Credit Party shall mean any of the
President, the Chief Financial Officer, the Treasurer, any Assistant Treasurer,
any Vice-President, the Secretary or any Assistant Secretary of such Credit
Party or any other officer of such Credit Party which is designated in writing
to the Paying Agent and each Issuing Bank by any of the foregoing officers of
such Credit Party as being authorized to give such notices under this
Agreement.
"BA Discount Proceeds" shall mean, in respect of any Bankers'
Acceptance to be purchased by an Alternate Currency Revolving Lender on any
date pursuant to Section 1.01 and Schedule III hereto, an amount rounded to the
nearest whole Canadian cent, and with one-half of one Canadian cent being
rounded up, calculated on such day by dividing:
(a) the Face Amount of such Banker's Acceptance; by
(b) the sum of one plus the product of:
(i) the respective Alternate Currency
Revolving Lender's Discount Rate (expressed as a
decimal) applicable to such Bankers' Acceptance; and
(ii) a fraction, the numerator of which is the
number of days in the term of maturity of such
Banker's Acceptance and the denominator of which is
365;
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with such product being rounded up or down to the fifth
decimal place and .000005 being rounded up.
"Bank Information Memorandum" shall mean the Information
Memorandum, dated January 1998, distributed to the Lenders prior to the
Effective Date.
"Bankers' Acceptance" shall mean a Draft accepted by an
Alternate Currency Lender pursuant to Section 1.01 and Schedule III hereto.
"Bankers' Acceptance Loans" shall mean the creation and
discount of Bankers' Acceptances as contemplated in Section 1.01 and Schedule
III hereto.
"Bankruptcy Code" shall have the meaning provided in Section
10.05.
"Base Rate" at any time shall mean the higher of (i) 1/2 of 1%
in excess of the overnight Federal Funds Rate and (ii) the Prime Lending Rate.
"Base Rate Loan" shall mean each Dollar Loan designated or
deemed designated as such by the respective Borrower at the time of the
incurrence thereof or conversion thereto.
"Benefitted Lender" shall have the meaning provided in Section
13.06(b).
"Bidder RL Lender" shall mean each RL Lender that has informed
the Paying Agent and the Corporation in writing (which has not been retracted)
that such RL Lender desires to participate generally in the bidding
arrangements relating to Competitive Bid Borrowings.
"Borrowers" shall mean and include (i) the Corporate
Borrowers, (ii) the REIT Borrowers, (iii) all Dollar Revolving Loan Borrowers
and (iv) all Alternate Currency Revolving Loan Borrowers. Each reference in
this Agreement or any Credit Document to any "Borrower" shall mean, if the
respective reference relates to the Obligations of a Borrower or its
liabilities to make payments of principal, interest, fees or other amounts with
respect to any outstanding Obligation, the respective Person which is the
Borrower of the respective Loans in the case of Alternate Currency Revolving
Loans, or the Persons jointly and severally acting as the Borrower with respect
thereto, in the case of Term Loans, Dollar Revolving Loans, Swingline Loans,
Competitive Bid Loans or Letter of Credit Outstandings. Each other reference
in this Agreement or any Credit Document to a Borrower (including without
limitation for purposes of the representations and warranties, covenants and
events of default) shall mean, unless the context otherwise indicates, any
Person which, either individually or jointly and severally, is a Borrower
hereunder (and shall in any event include Starwood REIT, SLT RLP, the
Corporation, SLC OLP, ITT and any Alternate Currency Revolving Loan Borrower).
"Borrowing" shall mean (i) the borrowing by a Borrower of one
Type of Loan of a single Tranche from all the Lenders having Commitments of the
respective Tranche on a given date (or resulting from a conversion or
conversions on such date) having in the case of Euro Rate Loans the same
Interest Period, provided that Base Rate Loans incurred pursuant to Section
1.11(b) shall be considered part of the related Borrowing of Eurodollar Loans,
and (ii) a Competitive Bid Borrowing.
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"BTCo" shall mean Bankers Trust Company in its individual
capacity.
"Business Day" shall mean (i) for all purposes other than as
covered by clause (ii) below, any day except Saturday, Sunday and any day which
shall be in New York City a legal holiday or a day on which banking
institutions are authorized or required by law or other government action to
close and (ii) with respect to all notices and determinations in connection
with, and payments of principal and interest on, Euro Rate Loans, any day which
is a Business Day described in clause (i) above and which is also a day for
trading by and between banks in the London interbank market and which shall not
be a legal holiday or a day on which banking institutions are authorized or
required by law or other government action to close in the city where the
applicable Payment Office of the Paying Agent is located in respect of Euro
Rate Loans.
"Canadian Dollar Equivalent" shall mean, at any time for the
determination thereof, the amount of Canadian Dollars which could be purchased
with the amount of Dollars involved in such computation at the spot rate of
exchange therefor as quoted by the Paying Agent as of 11:00 A.M. (New York
time) on the date two Business Days prior to the date of any determination
thereof for purchase on such date.
"Canadian Dollar Revolving Loan Sub-Commitment" means, as to
any Alternate Currency Lender, (i) the amount, if any, set forth opposite such
Alternate Currency Lender's name in Schedule I-B directly below the column
entitled "Canadian Dollar Revolving Loan Sub-Commitment", as same may be (x)
reduced from time to time pursuant to Sections 1.17, 3.02, 3.03 and/or 10 or
(y) adjusted from time to time as a result of assignments to or from such
Lender pursuant to Section 1.14 or 13.04(b). The Canadian Dollar Revolving
Loan Sub-Commitment of each Alternate Currency Lender is a sub-limit of the
Revolving Loan Commitment of the respective Alternate Currency Lender (or its
respective affiliate which is a Lender with the related Revolving Loan
Commitment) and not an additional commitment and, in no event, may exceed at
any time, when added to the Pounds Sterling Revolving Loan Sub-Commitment and
French Franc Revolving Loan Sub-Commitment of the respective Alternate Currency
Lender (or its respective affiliates), the Revolving Loan Commitment of such
Alternate Currency Lender (or its respective affiliate which is a Lender with
the related Revolving Loan Commitment).
"Canadian Dollar Revolving Loans" shall mean each Alternate
Currency Revolving Loan denominated in Canadian Dollars at the time of the
incurrence thereof.
"Canadian Dollar Revolving Notes" shall have the meaning
provided in Section 1.06(a).
"Canadian Dollars" and "Cdn" shall mean freely and
transferable lawful money of Canada.
"Canadian Prime Rate" means, at any time, the greater of (i)
the per annum rate of interest quoted, published and commonly known as the
"prime rate" of BT Bank of Canada which BT Bank of Canada establishes its main
office in Toronto, Ontario as the reference rate of interest in order to
determine interest rates for loans in Canadian Dollars to its Canadian
borrowers,
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adjusted automatically with each quoted or published change in such rate, all
without necessity of any notice to any Borrower or any other Person and (ii)
the sum of (x) the average of the rates per annum for Canadian Dollar bankers'
acceptances having a term of 30 days that appears on the Reuters Screen CDOR
Page as of 10:00 a.m. (Toronto time) on the date of determination, as reported
by BT Bank of Canada (and if such screen is not available, any successor or
similar services may be selected by BT Bank of Canada), and (y) 0.75%.
"Canadian Prime Rate Loans" shall mean any Canadian Dollar
Revolving Loan designated or deemed designated as such by the respective
Alternate Currency Revolving Loan Borrower at the time of the incurrence
thereof or conversion thereto.
"Capital Expenditures" shall mean, with respect to any Person,
all expenditures by such Person which should be shown as capital expenditures
in accordance with GAAP and, without duplication, the amount of Capitalized
Lease Obligations incurred by such Person.
"Capital Stock" of any Person shall mean any and all shares,
interests, rights to purchase, warrants, options, participation or other
equivalents of or interests in (however designated) equity of such Person,
including any preferred stock, any limited or general partnership interest and
any limited liability company membership interest.
"Capitalized Lease Obligations" of any Person shall mean all
rental obligations which are or will be required to be capitalized on the books
of such Person, in each case taken at the amount thereof accounted for as
indebtedness in accordance with GAAP.
"Cash Equivalents" means (i) Dollars and any Alternate
Currency, (ii) securities issued or directly fully guaranteed or insured by the
United States government or any agency or instrumentality thereof (provided,
that the full faith and credit of the United States is pledged in support
thereof) having maturities of not more than six months from the date of
acquisition, (iii) certificates of deposit and eurodollar time deposits with
maturities of six months or less from the date of acquisition, bankers'
acceptances with maturities not exceeding six months and overnight bank
deposits, in each case with any domestic commercial bank or commercial bank of
a foreign country recognized by the United States, in each case having capital
and surplus in excess of $500 million (or the foreign currency equivalent
thereof) and has outstanding debt which is rated "A" (or similar equivalent
thereof) or higher by at least one nationally recognized statistical rating
organization (as defined under Rule 436 under the Securities Act) or any money-
market fund sponsored by a registered broker dealer or mutual fund distributor,
(iv) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clauses (ii) and (iii) above
entered into with any financial institution meeting the qualifications
specified in clause (iii) above and (v) commercial paper having one of the two
highest ratings obtainable from Xxxxx'x or S&P and in each case maturing within
six months after the date of acquisition.
"CERCLA" shall mean the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as the same may be amended from time
to time, 42 U.S.C. Section 9601 et seq.
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"Change of Control" shall mean (i) the board of directors of
either Parent Company shall at any time cease to consist of a majority of
Continuing Directors, (ii) any Person, entity or "group" (as such term is
defined in Section 13(d)(3) of the Securities Exchange Act) is or becomes the
beneficial owner of an amount of outstanding Voting Stock of either Parent
Company in excess of 20% of the total amount of fully diluted shares of
outstanding Voting Stock of such Parent Company, (iii) any "change of control"
or similar event under the Senior Notes (or related documentation) shall occur
or (iv) the Corporation shall at any time cease to directly own 100% of the
Capital Stock of ITT.
"Chase Manhattan" shall mean The Chase Manhattan Bank in its
individual capacity.
"CIGA" shall mean CIGA S.p.A., a company organized under the
laws of Italy.
"Class A Exchangeable Preferred Shares" shall mean the Class A
Exchangeable Preferred Shares, $.01 par value per share, of Starwood REIT.
"Class B Exchangeable Preferred Shares" shall mean Starwood
REIT's Class B Exchangeable Preferred shares, $.01 par value per share, having
a liquidation preference of $38.50 per share.
"Code" shall mean the Internal Revenue Code of 1986, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder. Section references to the Code are to the Code, as in effect at
the date of this Agreement and any subsequent provisions of the Code,
amendatory thereof, supplemental thereto or substituted therefor.
"Collateral" shall mean all "Collateral" as defined in the
Pledge and Security Agreement or any other Security Document and all cash and
Cash Equivalents delivered as collateral pursuant to Section 4.02 or 10 hereof.
"Collateral Agent" shall mean the Paying Agent acting as
collateral agent for the Secured Creditors pursuant to the Pledge and Security
Agreement.
"Combined Adjusted Charges" for any period shall mean the sum,
without duplication, of (x) Combined Interest Expense for such period, (y) the
aggregate amount of cash Dividends paid by Starwood REIT during such period
pursuant to Section 9.03(a)(ii), (iii) and (iv) and (z) an amount equal to the
greater of (1) 4% of combined total revenues (of the Parent Companies and their
Subsidiaries) from owned Hotels during such period and (2) the aggregate amount
of Maintenance Capital Expenditures made by Starwood REIT, the Corporation and
their respective Subsidiaries during such period.
"Combined Current Assets" shall mean, at any time, the
combined consolidated current assets of the Parent Companies and their
Subsidiaries.
"Combined Current Liabilities" shall mean, at any time, the
combined consolidated current liabilities of the Parent Companies and their
Subsidiaries at such time, but excluding the
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current portion of any Indebtedness under this Agreement and the current
portion of any other long-term Indebtedness which would otherwise be included
therein.
"Combined EBIT" shall mean, for any period, the Combined Net
Income plus (to the extent actually deducted in determining said Combined Net
Income) interest expense and provision for taxes for such period; provided that
Combined EBIT shall be determined without giving effect to any extraordinary
gains or losses (including any taxes attributable to any such extraordinary
gains or losses) or gains or losses from sales of assets other than from sales
of inventory (excluding Real Property) in the ordinary course of business.
"Combined EBITDA" shall mean, for any period, Combined EBIT
for such period, adjusted by adding thereto the amount of all amortization of
intangibles and depreciation that were deducted in arriving at Combined EBIT
for such period. To the extent Combined EBITDA is being determined for a Test
Period which begins prior to March 31, 1998, Combined EBITDA shall be
determined for such Test Period by taking the sum of (1) actual Combined EBITDA
for the period from April 1, 1998 to the last day of such Test Period and (2)
an amount equal to $1.651 billion multiplied by a fraction the numerator of
which is the number of days from and including the first day of such Test
Period to and including March 31, 1998 and the denominator in which is 365;
provided that, to the extent any calculation pursuant to this Agreement is to
be made on a Pro Forma Basis (for events other than the occurrence of the
Transaction, the Westin Acquisition and the WD Disposition), such Combined
EBITDA shall be further adjusted as provided in the definition of Pro Forma
Basis for transactions occurring after the Initial Borrowing Date.
"Combined Adjusted Interest Coverage Ratio" shall mean, for
any period, the ratio of (x) Combined EBITDA for such period to (y) Combined
Adjusted Charges for such period.
"Combined Indebtedness" shall mean, at any time, the amount of
all Indebtedness of the Parent Companies and their Subsidiaries determined on a
combined consolidated basis. Notwithstanding anything to the contrary
contained in this definition, for purposes of determining compliance with
Section 9.09, to the extent that any tax liability is asserted against either
Parent Company or any of their Subsidiaries by the IRS or any other
Governmental Authority in respect of the WD Disposition and either (1) there is
a binding determination that such Person is responsible for the payment of such
tax liability or (2) either Parent Company or any of its Subsidiaries
determines to make payments in respect of such tax liability, then the unpaid
amounts of such tax liability shall be added to, and shall become a component
of, Combined Indebtedness.
"Combined Interest Coverage Ratio" shall mean, for any period,
the ratio of (x) Combined EBITDA for such period to (y) Combined Interest
Expense for such period.
"Combined Interest Expense" shall mean, for any period, the
total combined consolidated interest expense of the Parent Companies and their
Subsidiaries for such period (in each case calculated without regard to any
limitations on the payment thereof) plus, without duplication, that portion of
Capitalized Lease Obligations of the Parent Companies and their Subsidiaries
representing the interest factor for such period; provided that the
amortization of deferred financing costs with respect to this Agreement and the
Senior Notes shall be excluded
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from Combined Interest Expense to the extent the same would otherwise have been
included therein. To the extent Combined Interest Expense is being determined
for any Test Period which begins prior to March 31, 1998, then Combined
Interest Expense for such Test Period shall be deemed to be the sum of (1)
actual Combined Interest Expense for the period from March 31, 1998 to the last
day of such Test Period and (2) an amount equal to $650 million multiplied by a
fraction the numerator of which is the number of days from and including the
first day of such Test Period to and including March 31, 1998 and the
denominator of which is 365; provided that, to the extent any calculation
pursuant to this Agreement is to be made on a Pro Forma Basis (for events other
than the occurrence of the Transaction, the Westin Acquisition and the WD
Disposition), such Combined Interest Expense shall be further adjusted as
provided in the definition of Pro Forma Basis for transactions occurring after
the Initial Borrowing Date. Notwithstanding anything to the contrary contained
above, Combined Interest Expense shall include (and, to the extent not already
reflected therein, Combined Interest Expense shall be increased by) an amount
(not less than zero) equal to the aggregate amount of cash interest payments
made during the respective period in respect of the Assigned Starwood Note less
the amounts paid during such period by WD Parent Corp. and Assigned Starwood
Note LLC in respect of taxes, normal overhead and the VNU Preferred Stock (net
of amounts received during such period by WD Parent Corp. in respect of
preferred stock owned by it).
"Combined Leverage Ratio" shall mean, at any time, the ratio
of Combined Indebtedness at such time to Combined EBITDA for the then most
recently ended Test Period; provided that to the extent any Permitted
Acquisition, any Scheduled Asset Disposition, any discontinuance of operations
or any Asset Sale (or any similar material transaction which requires a waiver
or a consent of the Required Lenders pursuant to Section 9.02) has occurred
after the Initial Borrowing Date and during the relevant Test Period, Combined
EBITDA shall be determined for the respective Test Period on a Pro Forma Basis
for such occurrences.
"Combined Net Income" shall mean, for any period, the combined
consolidated net income (or loss) of the Parent Companies and their
Subsidiaries for such period; provided that (without duplication of exclusions)
(i) the net income (to the extent positive) of any Person that is not a
Subsidiary of either Parent Company or that is accounted for by the equity
method of accounting shall be included only to the extent of the amount of
dividends or distributions paid in cash to the Parent Companies or a
Wholly-Owned Subsidiary thereof, (ii) to the extent Combined Net Income
reflects amounts attributable to minority interests in Subsidiaries that are
not Wholly-Owned Subsidiaries of the Parent Companies, Combined Net Income
shall be reduced by the amounts attributable to such minority interests, (iii)
the net income of any Subsidiary shall be excluded to the extent that the
declaration or payment of dividends and distributions by that Subsidiary of net
income is not at the date of determination permitted without any prior
governmental approval (that has not been obtained) or, directly or indirectly,
by operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to
that Subsidiary or its stockholders, (iv) the net income of any Person acquired
in a pooling of interests transaction for any period prior to the date of such
acquisition shall be excluded and (v) the cumulative effect of a change in
accounting principles shall be excluded.
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"Combined Shareholders' Equity" shall mean as at any date, the
Shareholders' Equity of the Parent Companies as same would be shown on a
combined consolidated balance sheet prepared as of such date in accordance with
GAAP.
"Commitment" shall mean any of the commitments of any Lender,
i.e., whether, the Tranche I Term Loan Commitment, the Tranche II Term Loan
Commitment or the Revolving Loan Commitment of such Lender.
"Commitment Commission" shall have the meaning provided in
Section 3.01(a).
"Competitive Bid Borrowing" shall mean each borrowing of any
Competitive Bid Loan.
"Competitive Bid Loan" shall have the meaning provided in
Section 1.01(f).
"Competitive Bid Loan Maturity Date" shall have the meaning
provided in Section 1.04(a).
"Competitive Bid Notes" shall have the meaning provided in
Section 1.06(a).
"Contingent Obligation" shall mean, as to any Person, any
obligation of such Person guaranteeing or intended to guarantee any
Indebtedness, leases, dividends or other obligations ("primary obligations") of
any other Person (the "primary obligor") in any manner, whether directly or
indirectly, including, without limitation, any obligation of such Person,
whether or not contingent, (i) to purchase any such primary obligation or any
property constituting direct or indirect security therefor, (ii) to advance or
supply funds (x) for the purchase or payment of any such primary obligation or
(y) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency of the primary obligor, (iii)
to purchase property, securities or services primarily for the purpose of
assuring the owner of any such primary obligation of the ability of the primary
obligor to make payment of such primary obligation or (iv) otherwise to assure
or hold harmless the holder of such primary obligation against loss in respect
thereof; provided, however, that the term Contingent Obligation shall not
include endorsements of instruments for deposit or collection in the ordinary
course of business. Anything herein to the contrary notwithstanding, no
agreement entered into by the Parent Companies or any of their Subsidiaries or
Unconsolidated Entities with respect to its acquisition of any direct or
indirect interest in any Hotel, shall prior to the satisfaction in full of all
conditions precedent to the obligations of such Person pursuant to the
agreement, be deemed or construed to constitute a "Contingent Obligation" or
"Indebtedness" of such Person hereunder, provided that pursuant to any such
agreement, neither Parent Company nor any of their Subsidiaries or
Unconsolidated Entities is liable or responsible for and does not assume any
development or construction risks. The amount of any Contingent Obligation
shall be deemed to be an amount equal to the stated or determinable amount of
the primary obligation in respect of which such Contingent Obligation is made
or, if not stated or determinable, the maximum reasonably anticipated liability
in respect thereof (assuming such Person is required to perform thereunder) as
determined by such Person in good faith.
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"Continuing Directors" shall mean the directors of the Parent
Companies on the Initial Borrowing Date and each other director of the Parent
Companies if such director's nomination for election to the Board of Directors
of the respective Parent Company is recommended by a majority of the then
Continuing Directors.
"Contractual Obligation" of any Person means any obligation,
agreement, undertaking or similar provision of any security issued by such
Person or of any agreement (including. without limitation, any management or
franchise agreement), undertaking, contract, lease, indenture, mortgage, deed
of trust or other instrument (excluding a Credit Document) to which such Person
is a party or by which it or any of its property is bound or to which any of
its properties is subject.
"Corporate Borrowers" shall mean the Corporation and the ITT
Borrower, as joint and several obligors.
"Corporation" shall have the meaning provided in the first
paragraph of this Agreement.
"Credit Documents" shall mean this Agreement and, after the
execution and delivery thereof pursuant to the terms of this Agreement, each
Note, each Bankers' Acceptance, the ITT Acknowledgment, the Guaranty, the
Pledge and Security Agreement, each Subordination Agreement and any other
guaranties, pledge agreements or additional security documents executed and
delivered in accordance with the requirements of Sections 8.13, 8.14 and/or
8.15.
"Credit Event" shall mean the making of any Loan or the
issuance of any Letter of Credit.
"Credit Party" shall mean each Borrower and each Guarantor.
"Credit Party Subsidiary" shall mean each Person which is a
Subsidiary of any Credit Party, or which would be a Subsidiary of the Parent
Companies if same were a single entity.
"Default" shall mean any event, act or condition which with
notice or lapse of time, or both, would constitute an Event of Default.
"Defaulting Lender" shall mean any Lender with respect to
which a Lender Default is in effect.
"Discount Rate" means, in respect of any Bankers' Acceptances
to be purchased by an Alternate Currency Lender pursuant to Section 1.01 and
Schedule III hereto, the discount rate (calculated on an annual basis and
rounded to the nearest one-hundredth of 1%, with five-thousandths of 1% being
rounded up) quoted by such Alternate Currency Lender at 10:00 A.M. (Toronto
time) as the discount rate at which such Alternate Currency Lender would
purchase, on the relevant Drawing Date, its own bankers' acceptances having an
aggregate Face Amount equal to and with a term to maturity the same as the
Bankers' Acceptances to be acquired by such Alternate Currency Lender on such
Drawing Date.
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"Dividend" with respect to any Person shall mean that such
Person has declared or paid a dividend or distribution or returned any equity
capital to its stockholders, partners or other holders of its Capital Stock or
authorized or made any other distribution, payment or delivery of property
(other than common stock of such Person) or cash to its holders of Capital
Stock as such, or redeemed, retired, purchased or otherwise acquired, directly
or indirectly, for a consideration any shares of any class of its Capital Stock
outstanding on or after the Initial Borrowing Date (or any options or warrants
issued by such Person with respect to its Capital Stock), or set aside any
funds for any of the foregoing purposes, or shall have permitted any of its
Subsidiaries to purchase or otherwise acquire for a consideration any shares of
any class of the Capital Stock of such Person outstanding on or after the
Initial Borrowing Date (or any options or warrants issued by such Person with
respect to its Capital Stock). Without limiting the foregoing, "Dividends"
with respect to any Person shall also include all payments made or required to
be made by such Person with respect to any stock appreciation rights, plans,
equity incentive or achievement plans or any similar plans or setting aside of
any funds for the foregoing purposes, in each case except to the extent (x)
same are paid in "paired shares" of the Parent Companies or (y) such payments
reduced Consolidated EBITDA.
"Documents" shall mean the Credit Documents, the Senior
Secured Bridge Note Documents, the Refinancing Documents, the Acquisition
Documents, the Intercompany Mortgage Note and the Assigned Starwood Note.
"Dollar Borrower" shall mean and include each Borrower,
excluding any Alternate Currency Revolving Loan Borrower which is not otherwise
a Borrower.
"Dollar Equivalent" of an amount denominated in a currency
other than Dollars (the "Other Currency") shall mean, at any time for the
determination thereof, the amount of Dollars which could be purchased with the
amount of Other Currency involved in such computation at the spot exchange rate
therefor as quoted by the Paying Agent as of 11:00 A.M. (New York time) on the
date two Business Days prior to the date of any determination thereof for
purchase on such date; provided that (1) for purposes of Section 1.17, the
Dollar Equivalent of any amount (expressed in a currency other than Dollars)
shall be the amount of Dollars that the Paying Agent determines, based upon the
actual exchange rates which the Paying Agent believes can be obtained on the
date of conversion pursuant to Section 1.17, would be required to be paid in
Dollars to purchase such amount of other currency and (2) for purposes of (x)
determining compliance with Sections 1.01, 2.02(a) and 4.02(a) and (y)
calculating Fees pursuant to Section 3.01, the Dollar Equivalent of any amounts
outstanding in a currency other than Dollars shall be revalued on a quarterly
basis using the spot exchange rate therefor quoted in the Wall Street Journal
on the last Business Day of each calendar quarter, provided that, at any time
during a calendar quarter, if the full principal amount of Alternate Currency
Revolving Loans permitted to be incurred pursuant to this Agreement (i.e., up
to the full amount of the respective Alternate Currency Revolving Loan Sub-
Commitments as then in effect) were incurred, and if the Dollar Equivalent as
recalculated based on the exchange rate therefor quoted in the Wall Street
Journal on the respective date of determination pursuant to this exception
would result in an increase in the Dollar Equivalent as then in effect of such
amounts of 10% or more, then at the discretion of the Paying Agent or at the
request of the Required Lenders, the Dollar Equivalent shall be reset based
upon the exchange rates quoted on such date in the Wall Street Journal, which
rates shall
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remain in effect until the last Business Day of such calendar quarter or such
earlier date, if any, as the rate is reset pursuant to this proviso.
Notwithstanding anything to the contrary contained in this definition, at any
time that a Specified Default or an Event of Default then exists, the Paying
Agent may revalue the Dollar Equivalent of any amounts outstanding under the
Credit Documents in a currency other than Dollars in its sole discretion.
"Dollar Loan" shall mean each Tranche I Term Loan, each
Tranche II Term Loan, each Dollar Revolving Loan, each Competitive Bid Loan and
each Swingline Loan.
"Dollar Percentage" of any Lender at any time shall mean a
fraction (expressed as a percentage) the numerator of which is the
Non-Alternate Currency Revolving Loan Sub-Commitment of such Lender at such
time and the denominator of which is the aggregate amount of Non-Alternate
Currency Revolving Loan Commitments of all Lenders at such time, or, in the
case of a Lender that is, or whose Affiliate is, an Alternate Currency Lender,
at any time when (and to the extent that ) the Aggregate Non-Alternate Currency
Revolving Exposure equals or exceeds the aggregate of the Non- Alternate
Currency Revolving Loan Sub-Commitment, such Lender's or such Affiliate's
Unutilized Alternate Currency RL Percentage. Notwithstanding anything to the
contrary contained above, if the Dollar Percentage of any Lender is to be
determined after the Total Revolving Loan Commitment has been terminated, then
the Dollar Percentages of the Lenders shall be determined immediately prior
(and without giving effect) to such termination.
"Dollar Revolving Loan" shall have the meaning provided in
Section 1.01(c).
"Dollar Revolving Loan Borrower" shall mean, with respect to
any Dollar Revolving Loan, Swingline Loan or Letter of Credit Outstandings, the
respective Dollar Revolving Loan Borrowers as specified in clause (i) or (ii),
as the case may be, of the definition of Dollar Revolving Loan Borrowers.
"Dollar Revolving Loan Borrowers" shall mean and include (i)
the REIT Borrowers, as joint and several obligors and (ii) the Corporate
Borrowers, as joint and several obligors.
"Dollar Revolving Note" shall have the meaning provided in Section 1.06(a).
"Dollars" and the sign "$" shall each mean freely transferable
lawful money of the United States.
"Domestic Subsidiary" shall mean each Subsidiary of any
Borrower incorporated or organized in the United States or any State or
territory thereof.
"Draft" shall mean at any time a xxxxx xxxx of exchange,
within the meaning of the Bills of Exchange Act (Canada), drawn by any
Alternate Currency Revolving Loan Borrower on an Alternate Currency Revolving
Lender and bearing such distinguishing letters and numbers as such Alternate
Currency Revolving Lender may determine, but which at such time has not been
completed or accepted by such Alternate Currency Revolving Lender.
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"Drawing" shall have the meaning provided in Section 2.05(b).
"Drawing Date" shall mean any Business Day fixed pursuant to
Schedule III for the creation and purchase of Bankers' Acceptances by an
Alternate Currency Revolving Lender pursuant to Schedule III.
"Effective Date" shall have the meaning provided in Section
13.10.
"Election to Become an Alternate Currency Revolving Loan
Borrower" shall mean an Election to Become an Alternate Currency Revolving Loan
Borrower substantially in the form of Exhibit K, which shall be executed by
each Person which becomes an Alternate Currency Revolving Loan Borrower after
the Effective Date.
"Eligible Transferee" shall mean and include a commercial
bank, financial institution, any fund that invests in bank loans and any other
"accredited investor" (as defined in Regulation D of the Securities Act).
"End Date" shall mean, for any Margin Adjustment Period, the
last day of such Margin Adjustment Period.
"Environmental Claims" means any and all administrative ,
regulatory or judicial actions, suits, demands, demand letters, directives,
claims, liens, notices of noncompliance or violation, investigations or
proceedings arising under any Environmental Law or any permit issued, or any
approval given, under any such Environmental Law (hereafter, "Claims"),
including, without limitation, (a) any and all Claims by governmental or
regulatory authorities for enforcement, cleanup, removal, response, remedial or
other actions or damages pursuant to any applicable Environmental Law, and (b)
any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief in connection
with alleged injury or threat of injury to human health, safety or the
environment due to the presence of Hazardous Materials.
"Environmental Law" shall mean any Federal, state, foreign or
local statute, law, rule, regulation, ordinance, code, guideline, written
policy and rule of common law now or hereafter in effect and in each case as
amended, and any judicial or administrative interpretation thereof, including
any judicial or administrative order, consent decree or judgment, relating to
the environment, employee health and safety or Hazardous Materials, including,
without limitation, CERCLA; RCRA; the Federal Water Pollution Control Act, 33
U.S.C. Section 1251 et seq.; the Toxic Substances Control Act, 15 U.S.C.
Section 2601 et seq.; the Clean Air Act, 42 U.S.C. Section 7401 et seq.; the
Safe Drinking Water Act, 42 U.S.C. Section 3803 et seq.; the Oil Pollution Act
of 1990, 33 U.S.C. Section 2701 et seq.; the Emergency Planning and the
Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the
Hazardous Material Transportation Act, 49 U.S.C. Section 1801 et seq. and the
Occupational Safety and Health Act, 29 U.S.C. Section 651 et seq.; and any
state and local or foreign counterparts or equivalents, in each case as amended
from time to time.
"Environmental Matters" shall have the meaning provided in
Section 8.01(h)(iv).
"Equity Proceeds Amount" shall have the meaning provided in
Section 4.02(c).
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"ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as amended from time to time, and the regulations promulgated and
rulings issued thereunder. Section references to ERISA are to ERISA, as in
effect at the date of this Agreement and any subsequent provisions of ERISA,
amendatory thereof, supplemental thereto or substituted therefor.
"ERISA Affiliate" shall mean each person (as defined in
Section 3(9) of ERISA) which together with any Borrower or a Subsidiary of any
Borrower would be deemed to be a "single employer" within the meaning of
Section 414(b) or (c) or for purposes of Section 412 of the Code, Section
414(m) or (o) of the Code.
"ESI" shall mean ITT Educational Services, Inc., a Delaware
corporation.
"ESI Transaction" shall mean any transaction or series of
related transactions, structured in a manner satisfactory to the Lead Agents,
pursuant to which ITT sells shares of Capital Stock of ESI owned by ITT at fair
market value, all of which are used to repay outstanding Term Loans in
accordance with the requirements of Sections 4.02(e) (determined without regard
to the provisos thereto).
"Euro Rate" shall mean and include each of the Eurodollar
Rate, the French Franc Euro Rate and the Sterling Euro Rate.
"Euro Rate Loan" shall mean each Eurodollar Loan, each French
Franc Revolving Loan and each Sterling Revolving Loan .
"Eurodollar Loan" shall mean each Dollar Loan designated as
such by the respective Borrower at the time of the incurrence thereof or
conversion thereto.
"Eurodollar Rate" shall mean the rate per annum that appears
on page 3750 of the Dow Xxxxx Markets Screen/or any successor page for Dollar
deposits with maturities comparable to the Interest Period applicable to the
Eurodollar Loans subject to the respective Borrowing commencing two Business
Days thereafter as of 11:00a.m. (London time) on the date which is two Business
Days prior to the commencement of the respective Interest Period; provided
that, to the extent that an interest rate is not ascertainable pursuant to the
foregoing provisions of this definition, the rate to be used for purposes of
this definition shall be the interest rate per annum determined by the Paying
Agent to be the rate per annum at which deposits in Dollars are offered for
such relevant Interest Period to major banks in the London interbank market in
London, England by BTCo at approximately 11:00 A.M. (London time) on the date
which is two Business Days prior to the beginning of such Interest Period,
divided (and rounded, if necessary, upward to the nearest whole multiple of
1/16 of 1%).
"Event of Default" shall have the meaning provided in Section
10.
"Excess Cash Flow" shall mean, for any period, the remainder
of (i) the sum of (a) Adjusted Combined Net Income for such period and (b) the
decrease, if any, in Adjusted Combined Working Capital from the first day to
the last day of such period, minus (ii) the sum of (a) the amount of Capital
Expenditures (but excluding Capital Expenditures (x) financed with
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Indebtedness or equity proceeds or (y) made pursuant to Section 9.07(d) or (e))
made by the Parent Companies and their Subsidiaries during such period in
accordance with Section 9.07, (b) the aggregate amount of permanent principal
payments of Indebtedness for borrowed money of the Parent Companies and their
Subsidiaries (excluding payments pursuant to the Transaction, payments of
Indebtedness with proceeds of refinancing Indebtedness or proceeds of Scheduled
Asset Dispositions or Asset Sales and excluding repayments of Indebtedness owed
to any Borrower or any Subsidiary thereof and excluding repayments of Loans,
provided that repayments of Loans shall be deducted in determining Excess Cash
Flow if such repayments were (x) required as a result of a Scheduled Repayment
under Section 4.02(b) or (y) made as a voluntary prepayment by the Borrowers
with internally generated funds (but in the case of a voluntary prepayment of
Revolving Loans, only to the extent accompanied by a voluntary reduction to the
Total Revolving Loan Commitment)) during such period, (c) the amount of cash
Dividends paid by Starwood REIT pursuant to Section 9.03(a)(ii) during such
period and (d) the increase, if any, in Adjusted Combined Working Capital from
the first day to the last day of such period.
"Excess Cash Payment Date" shall mean the date occurring 90
days after the last day of each Fiscal Year ended after the Initial Borrowing
Date.
"Excess Cash Payment Period" shall mean, with respect to the
repayment required on each Excess Cash Payment Date, the immediately preceding
Fiscal Year of the Parent Companies.
"Excluded Debt" shall mean (x) in the case of the Parent
Companies and their Subsidiaries (other than ITT and its Subsidiaries),
Indebtedness in an amount equal to approximately $117,000,000 and (y) in the
case of ITT and its Subsidiaries, Indebtedness in an amount equal approximately
$100,000,000, in each case as more fully set forth on Schedule 7.02, provided
that any such issue of Indebtedness shall be deemed removed from such Schedule
upon the receipt of the necessary consents or waivers by the appropriate
Person.
"Existing Indebtedness" shall have the meaning provided in
Section 7.25.
"Existing Liens" shall have the meaning provided in Section
9.01.
"F&I Payment Date" shall mean each Quarterly Payment Date;
provided that at any time when interest is payable with respect to then
outstanding Senior Notes on a monthly basis, the term F&I Payment Date shall
mean each Monthly Payment Date.
"Face Amount" shall mean, in respect of a Bankers' Acceptance,
the amount payable to the holder thereof on its maturity. The Face Amount of
any Bankers' Acceptance Loan shall be equal to the Face Amounts of the
underlying Bankers' Acceptances.
"Facing Fee" shall have the meaning provided in Section
3.01(c).
"Federal Funds Rate" shall mean for any period, a fluctuating
interest rate 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
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day) by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day which is a Business Day, the average of the quotations
for such day on such transactions received by the Paying Agent from three
Federal Funds brokers of recognized standing selected by the Paying Agent.
"Fees" shall mean all amounts payable pursuant to or
referred to in Section 3.01.
"Final Maturity Date" shall mean the Tranche II Maturity Date.
"Fiscal Year" shall mean each fiscal year of the Parent
Companies, which shall be required to end on December 31 of each calendar year.
"Foreign Entity" shall have the meaning provided in Section
8.13.
"Foreign Pension Plan" shall mean any plan, fund (including,
without limitation, any superannuation fund) or other similar program
established or maintained outside the United States by any Borrower or any one
or more of its Subsidiaries primarily for the benefit of employees of such
Borrower or such Subsidiaries residing outside the United States of America,
which plan, fund or other similar program provides, or results in, retirement
income, a deferral of income in contemplation of retirement or payments to be
made upon termination of employment, and which plan is not subject to ERISA or
the Code and which Plan, fund or similar program could result in liability or
other obligation or lien to any Borrower, any Subsidiary of any Borrower or
ERISA Affiliate.
"Foreign Subsidiary" shall mean each Subsidiary of any
Borrower other than a Domestic Subsidiary.
"French Franc Equivalent" shall mean, at any time for the
determination thereof, the amount of French Francs which could be purchased
with the amount of Dollars involved in such computation at the spot exchange
rate therefore as quoted by the Paying Agent as of 11:00 A.M. (London time) on
the date two Business Days prior to the date of any determination thereof for
purchase on such date.
"French Franc Euro Rate" shall mean (i) the rate per annum
that appears on page 3740 of the Dow Xxxxx Markets Screen (or any successor
page) for French Franc deposits with maturities comparable to the Interest
Period applicable to the French Franc Revolving Loans subject to the respective
Borrowing commencing two Business Days thereafter as of 11:00 a.m. (London
time) on the date which is two Business Days prior to the commencement of the
respective Interest Period or (ii) if such a rate does not appear on page 3740
of the Dow Xxxxx Markets Screen (or any successor page), the offered quotation
to first-class banks in the London interbank market by BTCo for French Franc
deposits of amounts in immediately available funds comparable to the
outstanding principal amount of the French Franc Loan of BTCo with maturities
comparable to the Interest Period applicable to such French Franc Revolving
Loan commencing two Business Days thereafter as of 11:00 A.M. (London time) on
the date which is two Business Days prior to the commencement of such Interest
Period; provided, that in the event the Paying Agent has made any determination
pursuant to Section 1.11(a)(i) in respect of French Franc
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Revolving Loans, or in the circumstances described in clause (i) to the proviso
to Section 1.11(b) in respect of French Franc Revolving Loans, the French Franc
Euro Rate determined pursuant to this definition shall instead be the rate
determined by BTCo as the all-in-cost of funds for BTCo to fund such French
Franc Revolving Loan with maturities comparable to the Interest Period
applicable thereto.
"French Franc Revolving Loan" shall mean each Alternate
Currency Revolving Loan denominated in French Francs at the time of the
incurrence thereof.
"French Franc Revolving Loan Sub-Commitment" means, as to any
Alternate Currency Lender, (i) the amount, if any, set forth opposite such
Alternate Currency Lender's name in Schedule I-B directly below the column
entitled "French Franc Revolving Loan Sub-Commitment", as same may be (x)
reduced from time to time pursuant to Sections 1.17, 3.02, 3.03 and/or 10 or
(y) adjusted from time to time as a result of assignments to or from such
Lender pursuant to Section 1.14 or 13.04(b). The French Franc Revolving Loan
Sub-Commitment of each Alternate Currency Lender is a sub- limit of the
Revolving Loan Commitment of the respective Alternate Currency Lender (or its
respective affiliate which is a Lender with the related Revolving Loan
Commitment) and not an additional commitment and, in no event, may exceed at
any time, when added to the Canadian Dollar Revolving Loan Sub-Commitment and
Pounds Sterling Revolving Loan Sub- Commitment of the respective Alternate
Currency Lender (or its respective affiliates), the Revolving Loan Commitment
of such Alternate Currency Lender (or its respective affiliate which is a
Lender with the related Revolving Loan Commitment).
"French Franc Revolving Notes" shall have the meaning
provided in Section 1.06(a).
"French Francs" and the sign "FF" shall mean freely and
transferable lawful money of the French Republic.
"GAAP" means generally accepted accounting principles in the
United States of America as in effect from time to time set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and the statements and pronouncements
of the Financial Accounting Standards Board, or in such other statements by
such other entity as may be in general use by significant segments of the
accounting profession, which are applicable to the circumstances as of the date
of determination, except that, for purposes of Section 4.02, Section 9 and all
determinations of Applicable Commitment Commission Percentage and Applicable
Margin, GAAP shall be determined on the basis of such principles in effect on
the date hereof and consistent with those used in the preparation of the
audited combined consolidated financial statements of the Parent Companies
referred to in Section 7.03(a).
"Gaming Authority" shall mean the governmental authorities
charged with the administration and enforcement of the Gaming Regulations.
"Gaming Business" means the business conducted by ITT and its
Subsidiaries as of the Effective Date, including the management and operation
of gaming machines and casinos, and
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other gaming-related businesses, and any and all businesses that in the good
faith judgment of the board of directors of the Parent Companies are materially
related businesses.
"Gaming License" means every license, permit, registration,
finding of suitability, franchise, approval or other authorization required to
own, lease, operate or otherwise conduct or manage riverboat, dockside or
land-based gaming (including any applicable liquor licenses) or to conduct any
Gaming Business, in any state or jurisdiction where the Parent Companies or any
of their Subsidiaries conduct such business.
"Gaming Regulations" shall mean the laws, rules, regulations,
ordinances and orders applicable to the casino and Gaming Businesses or
activities of the Parent Companies or any of their Subsidiaries, as in effect
from time to time, including the policies, interpretations and administration
thereof by the Gaming Authorities.
"Governmental Authority" means any nation or government, any
state or other political subdivision thereof and any entity duly exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.
"Guarantor" shall mean and include each of Starwood REIT, SLT
RLP, the Corporation, SLC OLP, ITT and each Subsidiary of either or both Parent
Companies which executes and delivers the Guaranty, or a counterpart thereof,
as required by Section 5.11, 8.15 or any other provision of this Agreement;
provided that any such Subsidiary shall cease to be a Guarantor at such time,
if any, as it is released from the Guaranty in accordance with the express
provisions thereof. As of the Initial Borrowing Date, the Guarantors are
listed in Part I of Schedule 7.16.
"Guaranty" shall have the meaning provided in Section 5.11.
"Hazardous Materials" means (a) any petroleum or petroleum
products, radioactive materials, asbestos in any form that is or could become
friable, urea formaldehyde foam insulation, transformers or other equipment
that contain dielectric fluid containing regulated levels of polychlorinated
biphenyls, and radon gas; (b) any chemicals, materials or substances defined as
or included in the definitions of "hazardous substances," "hazardous waste,"
"hazardous materials," "extremely hazardous substances," "restricted hazardous
waste," "toxic substances," "toxic pollutants," "contaminants," or
"pollutants," or words of similar import, which are regulated under any
applicable Environmental Law; and (c) any other chemical, material or
substance, the Release of which is prohibited, limited or regulated by any
applicable Environmental Law.
"Hines Ground Leases" means those two ground leases with
respect to the Westin Hotel, Houston (Galleria) and the Westin Hotel, Houston
(Oaks).
"Hotel" means any Real Property or Leasehold comprising an
operating facility offering hotel or other lodging services.
"Hotel and Gaming Business" shall mean the hotel, resort,
extended stay lodging, other hospitality business or the management and
operation of gaming machines and casinos and
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other gaming related businesses, and any and all businesses that in the good
faith judgment of the board of directors of the Parent Companies are materially
related businesses.
"Improvements" has the meaning specified in Section 7.12(c).
"Inactive Subsidiary" shall mean any Subsidiary of either or
both Parent Companies listed on Schedule 11.01D.
"Indebtedness" shall mean, as to any Person, without
duplication, (i) all indebtedness (including principal, interest, fees and
charges) of such Person for borrowed money or for the deferred purchase price
of property or services (excluding accounts payable and accrued expenses
arising in the ordinary course of business), (ii) the maximum amount available
to be drawn under all letters of credit issued for the account of such Person
and all unpaid drawings in respect of such letters of credit, (iii) all
Indebtedness of the types described in clause (i), (ii), (iv), (v), (vi) or
(vii) of this definition secured by any Lien on any property owned by such
Person, whether or not such Indebtedness has been assumed by such Person
(provided, that, if the Person has not assumed or otherwise become liable in
respect of such Indebtedness, such Indebtedness shall be deemed to be in an
amount equal to the stated amount of such Indebtedness), (iv) the aggregate
amount required to be capitalized under leases under which such Person is the
lessee, (v) all obligations of such person to pay a specified purchase price
for goods or services, whether or not delivered or accepted, i.e., take-or-pay
and similar obligations, (vi) all Contingent Obligations of such Person and
(vii) all obligations under any Interest Rate Protection Agreement, any Other
Hedging Agreement or under any similar type of agreement.
"Indebtedness to be Refinanced" shall mean the Indebtedness
described in Schedule 11.01A hereto, which shall not include the Assigned
Starwood Note in the outstanding principal amount of $2,092,500,000.
"Initial Borrowing Date" shall mean the date occurring on or
after the Effective Date on which the initial Borrowing of Loans hereunder
occurs.
"Insurance Premiums" shall have the meaning provided in
Section 8.03(c).
"Intercompany Existing Indebtedness" shall have the meaning
provided in Section 7.25.
"Intercompany Mortgage Note" shall mean the subordinated
Intercompany Mortgage Note in an aggregate principal amount not to exceed
$3,450,000,000 billion issued by the Corporation to Starwood REIT, and
contributed by Starwood REIT to SLT RLP, in each case as contemplated by
Section 5.05(b).
"Interest Determination Date" shall mean, with respect to any
Euro Rate Loan, the second Business Day prior to the commencement of any
Interest Period relating to such Euro Rate Loan.
"Interest Period" shall have the meaning provided in Section
1.10.
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"Interest Rate Protection Agreement" shall mean any interest
rate swap agreement, interest rate cap agreement, interest collar agreement,
interest rate hedging agreement or other similar agreement or arrangement.
"Investments" shall have the meaning provided in Section 9.05.
"IRS" means the Internal Revenue Service, or any successor
thereto.
"Issuing Bank" shall mean BTCo and any other RL Lender which
at the request of the Corporation and with the consent of the Paying Agent
agrees, in such RL Lender's sole discretion, to become an Issuing Bank for the
purpose of issuing Letters of Credit pursuant to Section 2. The sole Issuing
Bank on the Initial Borrowing Date is BTCo.
"ITT" shall mean ITT Corporation, a Nevada corporation.
"ITT Acknowledgment" shall have the meaning provided in
Section 5.16.
"ITT Borrower" shall mean (x) prior to the consummation of the
Acquisition, Chess Acquisition Corp., a Nevada corporation and (y) at all times
from and after the consummation of the Acquisition, ITT Corporation, a Nevada
corporation and successor by merger to Chess Acquisition Corp.
"ITT Indenture" shall mean that certain Amended and Restated
Indenture, dated as of November 15, 1995 and amended and restated as of
December 19, 1995, between ITT, as issuer, and The First National Bank of
Chicago, as trustee, as in effect on the Initial Borrowing Date and as the same
may be amended, modified or supplemented from time to time pursuant to the
terms thereof and hereof.
"ITT LSARs" shall mean all Limited Stock Appreciation Rights
issued and outstanding on the Effective Date pursuant to Section 9 of the 1995
ITT Corporation Incentive Stock Plan as in effect on the Initial Borrowing
Date.
"ITT Notes" shall mean each of (i) ITT's 6 1/4% Notes due
November 15, 2000, (ii) ITT's 6 3/4% Notes due November 15, 2005, (iii) ITT's 6
3/4% Notes due November 15, 2003, (iv) ITT's 73/8% Debentures due November 15,
2005 and (v) ITT's 7 3/4% Debentures due November 15, 2025.
"ITT Sheraton" shall mean ITT Sheraton Corporation, a Delaware
corporation and a direct Wholly-Owned Subsidiary of ITT.
"Joint Proxy Statement" shall mean the Joint Proxy
Statement/Prospectus dated January 14, 1998, delivered to shareholders of the
Parent Companies and ITT.
"Judgment Currency" shall have the meaning provided in
Section 13.16(a).
"Judgment Currency Conversion Date" shall have the meaning
provided in Section 13.16(a).
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"L/C Supportable Obligations" shall mean obligations of either
Parent Company or any of its Subsidiaries incurred in the ordinary course of
business and which do not violate the applicable provisions, if any, of this
Agreement.
"Lead Agent" shall mean each of BTCo and Chase Manhattan in
their capacities as Administrative Agents, and LCPI in its capacity as
Syndication Agent.
"Leaseholds" of any Person means all the right, title and
interest of such Person as lessee or licensee in, to and under leases or
licenses of land, improvements and/or fixtures.
"LCPI" shall mean Xxxxxx Commercial Paper Inc., a Delaware
corporation.
"Lender" shall mean each financial institution listed on
Schedule I-A, as well as any Person which becomes a "Lender" hereunder pursuant
to Section 1.14 or 13.04(b). Unless the context otherwise requires, each
reference in this Agreement to a Lender includes each Alternate Currency Lender
and, if the reference is to a specific Lender which has a Revolving Loan
Commitment hereunder, shall include references to any Affiliate of any such
Lender which is acting as an Alternate Currency Lender.
"Lender Default" shall mean (i) the wrongful refusal (which
has not been retracted) or the failure of a Lender to make available its
portion of any Borrowing (including any Mandatory Borrowing) or to fund its
portion of any unreimbursed payment under Section 2.04(c) or to purchase
participating interests in Revolving Loans under Section 1.17 or (ii) a Lender
having notified in writing any Borrower and/or the Paying Agent that such
Lender does not intend to comply with its obligations under Section 1.01 or 2
in circumstances where such non-compliance would constitute a breach of such
Lender's obligations under the respective Section.
"Letter of Credit" shall have the meaning provided in
Section 2.01(a).
"Letter of Credit Fee" shall have the meaning provided in
Section 3.01(b).
"Letter of Credit Outstandings" shall mean, at any time, the
sum of (i) the aggregate Stated Amount of all outstanding Letters of Credit and
(ii) the amount of all Unpaid Drawings.
"Letter of Credit Request" shall have the meaning provided in
Section 2.03(a).
"Lien" shall mean any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other),
preference, priority or other security agreement of any kind or nature
whatsoever (including, without limitation, any conditional sale or other title
retention agreement, any financing or similar statement or notice filed under
the UCC or any other similar recording or notice statute, and any lease having
substantially the same effect as any of the foregoing).
"Loan" shall mean each Term Loan, each Revolving Loan, each
Competitive Bid Loan and each Swingline Loan.
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"Maintenance Capital Expenditures" shall mean, with respect to
any Person, any Capital Expenditure made in the ordinary course of business for
maintenance or upkeep of the assets of such Person.
"Majority Euro Lenders" at any time shall mean those Alternate
Currency Lenders which at such time hold a majority of the then outstanding
Alternate Currency Revolving Loan Sub-Commitments (for this purpose, excluding
the Canadian Dollar Revolving Loan Sub-Commitments) or, after such
sub-commitments have terminated, Alternate Currency Revolving Lenders holding a
majority of the aggregate principal amount of then outstanding French Franc
Revolving Loans and Sterling Revolving Loans.
"Majority Lenders" of any Tranche shall mean those
Non-Defaulting Lenders which would constitute the Required Lenders under, and
as defined in, this Agreement if all outstanding Obligations of the other
Tranches under this Agreement were repaid in full and all Commitments with
respect thereto were terminated.
"Mandatory Borrowing" shall have the meaning provided in
Section 1.01(e).
"Margin Adjustment Period" shall mean each period which shall
commence on the date occurring after the Effective Date on which the respective
officer's certificates are delivered pursuant to Section 8.01(e) and which
shall end on the earlier of (i) the date of actual delivery of the next
officer's certificates pursuant to Section 8.01(e) and (ii) the latest date on
which the next officer's certificates are required to be delivered.
"Margin Regulations" shall mean Regulations G, T, U and X,
collectively.
"Margin Stock" shall have the meaning provided in Regulation
U.
"Material Adverse Change" means a material adverse change in
any of (i) the business, operations, property, assets, liabilities or condition
(financial or otherwise) of (A) the Parent Companies and their Subsidiaries
taken as one enterprise, (B) Starwood REIT, SLT RLP and their respective
Subsidiaries taken as one enterprise or (C) the Corporation, SLC OLP and their
respective Subsidiaries taken as one enterprise, (ii) the legality, validity or
enforceability of the Credit Documents taken as a whole, (iii) the ability of
any Borrower to repay its Obligations or to perform its obligations under any
other Credit Document, (iv) the ability of the Guarantors, taken as a whole, to
perform their obligations under the Guaranty or (v) the rights and remedies of
the Lenders or the Lead Agents under the Credit Documents.
"Material Adverse Effect" means an effect that results in or
causes, or has a reasonable likelihood of resulting in or causing, a Material
Adverse Change.
"Maturity Date" shall mean, with respect to any Tranche of
Loans, the Tranche I Maturity Date, the Tranche II Maturity Date or the
Revolving Loan Maturity Date, as the case may be.
"Maximum Swingline Amount" shall mean $50,000,000.
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"Mergeco" shall mean Chess Acquisition Corp., a Nevada
corporation.
"Minimum Borrowing Amount" shall mean, for each Type and
Tranche of Loans hereunder, the respective amount specified below:
(i) in the case of a Borrowing of Euro Rate Loans of any
Tranche, $10,000,000 (or the applicable Alternate Currency Equivalent
thereof in the case of a Borrowing of Alternate Currency Revolving
Loans);
(ii) in the case of a Borrowing (but excluding Borrowings of
Swingline Loans) of Base Rate Loans of any Tranche, $10,000,000;
(iii) in the case of a Borrowing of Swingline Loans, $1,000,000;
(iv) in the case of a Borrowing of Canadian Prime Rate Loans,
Cdn $1,000,000;
(v) in the case of Bankers' Acceptance Loans, the amount
specified in Schedule III; and
(vi) in the case of Competitive Bid Loans, $20,000,000.
"MLA Cost" shall mean the cost imputed to a Lender in
complying with the Mandatory Liquid Assets requirements of the Bank of England
during the period in which a Sterling Revolving Loan is outstanding determined
in accordance with Schedule IV.
"Monthly Payment Date" shall mean the last Business Day of
each calendar month occurring after the Effective Date.
"Moody's" shall mean Xxxxx'x Investors Service, Inc.
"Mortgage" means the mortgage, deed of trust, security deed,
installment land sale contract or similar security instrument creating a Lien
in favor of any Borrower or any of its Subsidiaries against, inter alia, the
real property and improvements comprising a Mortgage Note Hotel.
"Mortgage Loan" means each mortgage loan now or hereafter
owned by Starwood REIT or any of its Subsidiaries.
"Mortgage Note" means each of the promissory notes and other
evidences of indebtedness executed by a maker in favor of Starwood REIT or any
of its Subsidiaries and evidencing a Mortgage Loan.
"Mortgage Note Hotel" means, collectively, for each Hotel now
or hereafter owned or leased by any maker of a Mortgage Note, all of the real
property, improvements, inventory, furnishings, equipment, fixtures, and any
other agreements, instruments, contracts, general intangibles, accounts,
licenses and other approvals of any Governmental Authority, chattel
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paper, documents, books and records, deposit accounts, and any other assets,
relating to such property that are now or hereafter owned or leased by such
maker.
"Mortgage Note Security Documents" means, with respect to each
Mortgage Note and Mortgage Note Hotel, all presently existing or hereafter
acquired loan agreements, installment land sale contracts, mortgages, deeds of
trust, assignments for security or absolute assignments of rents and leases,
financing statements, fixture filings, security agreements, pledges, deposit
account pledge agreements, collateral assignments (including any collateral
assignments of any management contracts or franchise agreements), guaranties,
letters of credit, credit supports, keep well agreements or other agreements or
undertakings from any Person to or in favor of the Parent Companies or any of
their Subsidiaries and securing or supporting the repayment of indebtedness or
performance of any other obligation under the applicable Mortgage Note or any
Mortgage Note Security Documents and all amendments, modifications,
supplements, substitutions and restatements of any of the foregoing.
"NAIC" shall have the meaning provided in Section 1.11(c).
"Net Proceeds" shall mean (i) in the case of any Asset Sale,
the Net Sale Proceeds therefrom and (ii) in the case any issuance of equity,
Indebtedness or other event which generates Net Proceeds, the gross cash
proceeds therefrom (less any fees, expenses and similar costs incurred in
connection therewith), provided that, in the case of any issuance by the Parent
Companies of Permanent Senior Secured Notes, the Net Proceeds from such
issuance of Permanent Senior Notes shall be determined by deducting therefrom
the amount of cash proceeds therefrom which are actually utilized to repay
principal amounts of Senior Secured Bridge Notes then outstanding.
"Net Sale Proceeds" shall mean for any sale of assets, the
gross cash proceeds (including any cash received by way of deferred payment
pursuant to a promissory note, receivable or otherwise, but only as and when
received) received from such sale of assets, net of (a) cash expenses of sale
(including, without limitation, brokerage fees, if any, transfer taxes and
payment of principal, premium and interest of Indebtedness secured by the asset
subject to such sale (other than Indebtedness owed to the Parent Companies or
any of their respective Subsidiaries) required to be repaid as a result of such
asset sale), (b) all incremental foreign, federal, state and local taxes to the
extent payable by the Parent Companies and their Subsidiaries as a direct
consequence of any such asset sale and (c) for so long as Starwood REIT
qualifies as a "real estate investment trust" under the Code, the amount of
Starwood REIT's net capital gains recognized for U.S. federal income tax
purposes, if any, which are to be paid as cash Dividends to its shareholders
with respect to the year in which such gains are realized.
"Non-Alternate Currency Revolving Loan Sub-Commitment" means,
for any Lender at any time, such Lender's Revolving Loan Commitment minus, in
the case of a Lender that is, or whose Affiliate is, an Alternate Currency
Lender, the sum of such Lender's and its Affiliates' Alternate Currency
Revolving Loan Sub-Commitments.
"Non-Defaulting Lender" shall mean and include each Lender
other than a Defaulting Lender.
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"Non-Recourse Indebtedness" of any Person means all
Indebtedness of such Person and its Subsidiaries with respect to which recourse
for payment is limited to specific assets encumbered by a Lien securing such
Indebtedness; provided, however, that personal recourse of a holder of
Indebtedness against any obligor with respect thereto for fraud,
misrepresentation, misapplication of cash, waste and other circumstances
customarily excluded from non-recourse provisions in non-recourse secured
financing of real estate shall not, by itself, prevent any Indebtedness from
being characterized as Non-Recourse Indebtedness, provided further that if a
personal recourse claim is made in connection therewith, such claim shall not
constitute Non-Recourse Indebtedness for the purpose of this Agreement. For
purposes of Section 9.04(iv), neither the Parent Companies nor any of their
Subsidiaries may incur any Non-Recourse Indebtedness that has a Final Stated
Maturity on or prior to the date which occurs six months after the Final
Maturity Date.
"Note" shall mean each Tranche I Term Note, each Tranche II
Term Note, each Revolving Note, each Competitive Bid Note and the Swingline
Note.
"Notice of Borrowing" shall have the meaning provided in
Section 1.03(a).
"Notice of Competitive Bid Borrowing" shall have the meaning
provided in Section 1.04(a).
"Notice of Conversion" shall have the meaning provided in
Section 1.07(a).
"Notice Office" shall mean the office of the Paying Agent
located at 000 Xxxxxxx Xxxxxx 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention:
Xxxxxx Xxxxxx, or such other office as the Paying Agent may hereafter designate
in writing as such to the other parties hereto.
"Obligation Currency" shall have the meaning provided in
Section 13.16(a).
"Obligations" shall mean all amounts owing to the Paying
Agent, the Lead Agents, the Syndication Agent, either Administrative Agent, the
Collateral Agent or any Lender pursuant to the terms of this Agreement or any
other Credit Document.
"Operating Entity" means each of the entities identified on
Schedule 11.01B, as the same may be supplemented or amended from time to time,
and each corporation, partnership, limited liability company or other business
entity ninety-nine percent (99%) or more of whose common stock, partnership or
membership interests are owned, directly or indirectly, and which is
controlled, by SLC OLP or the Corporation and which is the lessee of a Hotel
under an Operating Lease.
"Operating Lease" means an operating lease between Starwood
REIT or a Subsidiary of Starwood REIT, as lessor, and an Operating Entity, as
lessee, with respect to the operation of a single Hotel owned by such lessor
and leased and operated by such lessee thereunder.
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"Other Hedging Agreement" shall mean any foreign exchange
contracts, currency swap agreements, commodity agreements or other similar
agreements or arrangements designed to protect against the fluctuations in
currency values.
"Parent Companies" shall mean and include Starwood REIT and
the Corporation.
"Participant" shall have the meaning provided in Section
2.04(a).
"Paying Agent" shall mean BTCo in its capacity as Paying Agent
for the Lenders hereunder, and shall include any successor Paying Agent
appointed pursuant to Section 12.09.
"Payment Office" shall mean (i) in respect of Dollar Loans,
Letters of Credit, Fees and, except as provided in clause (ii) below, all other
amounts owing under this Agreement and the other Credit Documents, the office
of the Paying Agent located at 000 Xxxxxxx Xxxxxx, 00xx Xxxxx, Xxxxx Transfer
Division Xxx Xxxx, Xxx Xxxx 00000, ABA Number: 000-000-000, Credit to
Commercial Loan Division, Account Name: Starwood Lodging, Account Number:
00-000-000, Attention: Xxxx Xxxx, (ii) in respect of Canadian Dollar Revolving
Loans, to Royal Bank of Canada, Correspondent Banking, Toronto, Ontario,
Canada, Transit Number: 9591, Account Number: 000-000-0, Account Name: BT Bank
of Canada, Reference: Starwood Lodging, (iii) in respect of Sterling Revolving
Loans, to Midland Bank, International Division, London, Sort code: 40 08 04,
Account: Bankers Trust Company London, Account Number 00000000, Reference:
Starwood Lodging, Attention: Loans Agency and (iv) in respect of French Franc
Revolving Loans, to Credit Agricole Indosuez, Paris, Account: Bankers Trust
Company London, Account Number: 020106451, Reference: Starwood Longing,
Attention: Loans Agency or in each case such other office as the Paying Agent
may hereafter designate in writing as such to the other parties hereto.
"PBGC" shall mean the Pension Benefit Guaranty Corporation
established pursuant to Section 4002 of ERISA, or any successor thereto.
"Permanent Senior Note Documents" shall mean and include each
Permanent Senior Note Indenture, the Permanent Senior Notes and all the other
agreements, instruments and documents entered into in connection with the
issuance of Permanent Senior Notes, as the same may be amended, modified or
supplemented from time to time in accordance with the terms thereof and hereof.
"Permanent Senior Note Indenture" shall mean the indenture
relating to any issue of Permanent Senior Notes.
"Permanent Senior Notes" shall mean senior notes of the
Corporation or the Corporate Borrowers, provided that (a) unless otherwise
agreed to by the Required Lenders, (I) no part of the principal amount of any
such notes shall have a scheduled amortization date earlier than those provided
in the Senior Secured Bridge Notes, and (II) the other terms and conditions
thereof (including, without limitation, the covenant and event of default
provisions thereof) shall be generally at least as favorable to the Corporation
or the Corporate Borrowers, as the case may be, and the Lenders as such similar
provisions of the Senior Secured Bridge Notes, (b) any issue
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of Permanent Senior Notes may, and shall not be required to be, secured equally
and ratably by Pledge and Security Agreement Collateral in accordance with the
terms of the Pledge and Security Agreement (with any Permanent Senior Notes so
secured being herein called "Permanent Senior Secured Notes") and (c)
substantially final drafts of the documentation governing such notes, showing
the terms thereof, shall have been furnished to the Lead Agents and the
Lenders, at least 10 Business Days prior to the issuance of such notes.
"Permanent Senior Secured Notes" shall have the meaning
assigned that term in the definition of "Permanent Senior Notes" contained
herein.
"Permit" shall mean any permit, approval, authorization,
license, variance, registration, permission or consent required from a
Governmental Authority under an applicable Requirement of Law.
"Permitted Acquisition" shall have the meaning provided in
Section 9.02(ix).
"Permitted Liens" shall have the meaning provided in Section
9.01.
"Permitted Refinancing Indebtedness" means any Indebtedness of
either Parent Company or any of its Subsidiaries issued in exchange for, or the
net proceeds of which are used to extend, refinance, renew, replace, defease or
refund (collectively, to "Refinance"), Third Party Existing Indebtedness (or
previous refinancings thereof constituting Permitted Refinancing Indebtedness)
or Indebtedness permitted by Sections 9.04(iv), (x) or (xi)(b) (or previous
refinancings thereof constituting Permitted Refinancing Indebtedness) of such
Parent Company or such Subsidiary; provided that (i) the principal amount (or
accreted value, if applicable) of such Permitted Refinancing Indebtedness does
not exceed the principal amount (or accreted value, if applicable) of the
Indebtedness so Refinanced; (ii) scheduled principal payments shall not be
required with respect to such Permitted Refinancing Indebtedness prior to the
date which occurs six months after the Tranche II Maturity Date; (iii) if the
Indebtedness being Refinanced is subordinated in right of payment to the
Obligations under this Agreement, such Permitted Refinancing Indebtedness shall
be subordinated in right of payment to such Obligations on terms at least as
favorable to the Lenders as those contained in the documentation governing the
Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded; (iv) if the Indebtedness being Refinanced is Non-Recourse Debt, the
Permitted Refinancing Indebtedness shall be Non- Recourse Debt; (v) no
Permitted Refinancing Indebtedness shall have different obligors, or greater
guarantees or security, than the Indebtedness being Refinanced and (vi) in no
event shall any Permitted Refinancing Indebtedness be secured by any Pledge and
Security Agreement Collateral (whether equally and ratably with, or junior to,
the Secured Creditors or otherwise). Notwithstanding anything to the contrary
contained in clause (i) of the proviso to the preceding sentence, the principal
amount of the Indebtedness incurred to refinance Non-Recourse Indebtedness in
respect of the Park Plaza Hotel in Boston, Massachusetts may be increased to
$60 million in principal amount.
"Perpetual Preferred Stock" shall mean any preferred stock of
either Parent Company so long as the terms of any such preferred stock (i) do
not provide any collateral security, (ii) do not provide any guaranty or other
support by either Parent Company or any
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Subsidiaries of either Parent Company, (iii) do not contain any mandatory put,
redemption, repayment, sinking fund or other similar provision whatsoever, (iv)
do not contain any covenants other than periodic reporting requirements, (v) do
not grant the holders thereof any voting rights except for (x) voting rights
required to be granted to such holders under applicable law and (y) limited
customary voting rights on fundamental matters such as mergers, consolidations,
sales of all or substantially all of the assets of the respective Parent
Company or liquidations involving such Parent Company, (vi) do not provide for
the conversion into, or the exchange for (unless at the sole discretion of the
issuer thereof), debt securities and (vii) are otherwise reasonably
satisfactory to the Lead Agents.
"Person" shall mean any individual, partnership, joint
venture, limited liability company, firm, corporation, association, trust or
other enterprise or any government or political subdivision or any agency,
department or instrumentality thereof.
"Personal Property" means, for any person, to the extent owned
by such Person, all machinery, equipment, fixtures (including but not limited
to all heating, air conditioning, plumbing, lighting, communications, elevator
fixtures, inventory and goods), inventory and articles of personal property and
accessions thereof and renewals, replacements thereof and substitutions
therefor (including, but not limited to, beds, bureaus, chiffonniers, chests,
chairs, desks, lamps, mirrors, bookcases, tables, rugs, carpeting, drapes,
draperies, curtains, shades, venetian blinds, screens, paintings, hangings,
pictures, divans, couches, luggage carts, luggage racks, stools, sofas,
chinaware, linens, pillows, blankets, glassware, silverware, foodcarts,
cookware, dry cleaning facilities, dining room wagons, keys or other entry
systems, bars, bar fixtures, liquor and other drink dispensers, icemakers,
radios, television sets, intercom and paging equipment, electric and electronic
equipment, dictating equipment, private telephone systems, medical equipment,
potted plants, heating, lighting and plumbing fixtures, fire prevention and
extinguishing apparatus, cooling and air-conditioning systems, elevators,
escalators, fittings, plants, apparatus, stoves, ranges, refrigerators, laundry
machines, tools, machinery, engines, dynamos, motors, boilers, incinerators,
switchboards, conduits, compressors, vacuum cleaning systems, floor cleaning,
waxing and polishing equipment, call systems, brackets, electrical signs,
bulbs, bells, ash and fuel, conveyors, cabinets, lockers, shelving,
spotlighting equipment, dishwashers, garbage disposals, washers and dryers),
other customary hotel equipment and other tangible property of every kind and
nature whatsoever, now or hereafter located upon the Hotels, or appurtenances
thereto, or usable in connection with the present or future operation and
occupancy of the Hotels and all building equipment, materials and supplies of
any nature whatsoever, now or hereafter located upon the Hotels.
"Plan" shall mean any pension plan as defined in Section 3(2)
of ERISA, which is maintained or contributed to by (or to which there is an
obligation to contribute of) any Borrower or a Subsidiary of any Borrower or an
ERISA Affiliate and any pension plan as defined in Section 3(2) of ERISA with
respect to which any Borrower, or a Subsidiary of any Borrower or an ERISA
Affiliate could have any liability.
"Pledge and Security Agreement" shall have the meaning
provided in Section 5.12.
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"Pledge and Security Agreement Collateral" shall have the
meaning assigned that term in the Pledge and Security Agreement.
"Pledged Limited Liability Company Interests" shall have the
meaning assigned that term in the Pledge and Security Agreement.
"Pledged Partnership Interests" shall have the meaning
assigned that term in the Pledge and Security Agreement.
"Pledged Securities" shall mean all "Pledged Securities" as
defined in the Pledge and Security Agreement.
"Pledged Stock" shall have the meaning assigned that term in
the Pledge and Security Agreement.
"Policies" has the meaning provided in Section 8.03(c).
"Pounds Sterling" shall mean freely and transferable lawful
money of the United Kingdom.
"Pounds Sterling Revolving Loan Sub-Commitment" means, as to
any Alternate Currency Lender, (i) the amount, if any, set forth opposite such
Alternate Currency Lender's name in Schedule I-B directly below the column
entitled "Pounds Sterling Revolving Loan Sub-Commitment", as same may be (x)
reduced from time to time pursuant to Sections 1.17, 3.02, 3.03 and/or 10 or
(y) adjusted from time to time as a result of assignments to or from such
Lender pursuant to Section 1.14 or 13.04(b). The Pounds Sterling Revolving
Loan Sub-Commitment of each Alternate Currency Lender is a sub-limit of the
Revolving Loan Commitment of the respective Alternate Currency Lender (or its
respective affiliate which is a Lender with the related Revolving Loan
Commitment) and not an additional commitment and, in no event, may exceed at
any time, when added to the Canadian Dollar Revolving Loan Sub-Commitment and
French Franc Revolving Loan Sub-Commitment of the respective Alternate Currency
Lender (or its respective affiliates), the Revolving Loan Commitment of such
Alternate Currency Lender (or its respective affiliate which is a Lender with
the related Revolving Loan Commitment).
"Preferred Partnership Units" shall mean the Class A Units of
SLT RLP and the Class A Units and Class B Units of SLC OLP.
"Preferred Stock" as applied to the Capital Stock of any
Person, means Capital Stock of such Person (other than common stock of such
Person) of any class or classes (however designated) that ranks prior, as to
the payment of dividends or distributions, or as to the distribution of assets
upon any voluntary or involuntary liquidation, dissolution or winding up of
such Person, to shares of Capital Stock of any other class of such Person.
"Preferred Stock Subsidiaries" means those entities listed
on Schedule 7.15.
"Prime Lending Rate" shall mean the rate which the Paying
Agent announces from time to time as its prime lending rate, the Prime Lending
Rate to change when and as such prime
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149
lending rate changes. The Prime Lending Rate is a reference rate and does not
necessarily represent the lowest or best rate actually charged to any customer.
The Paying Agent may make commercial loans or other loans at rates of interest
at, above or below the Prime Lending Rate.
"Pro Forma Basis" shall mean, as to any Person, for any events
which occur subsequent to the commencement of a period for which the financial
effect of such event is being calculated, and giving effect to the event for
which such calculation is being made, such calculation as will give pro forma
effect to such event as if same had occurred at the beginning of such period of
calculation, and
(i) for purposes of the foregoing calculation, the transaction
giving rise to the need to calculate the pro forma effect to any of
the following events shall be assumed to have occurred on the first
day of the four consecutive fiscal quarter period last ended before
the occurrence of the respective event for which such pro forma effect
is being determined (the "Reference Period"), and
(ii) in making any determination with respect to the incurrence
or assumption of any Indebtedness during the Reference Period or
subsequent to the Reference Period and on or prior to the date of the
transaction referenced in clause (i) above (the "Transaction Date"),
(x) all Indebtedness (including Indebtedness incurred or assumed and
for which the financial effect is being calculated, whether incurred
under this Agreement or otherwise, but excluding normal fluctuations
in revolving indebtedness incurred for working capital purposes and
not to finance any acquisition) incurred or permanently repaid during
the Reference Period shall be deemed to have been incurred or repaid
at the beginning of such period, (y) Combined Interest Expense of such
Person attributable to interest or dividends on any Indebtedness, as
the case may be, bearing floating interest rates should be computed on
a pro forma basis as if the rate in effect on the Transaction Date had
been the applicable rate for the entire period and (z) Combined
Interest Expense will be increased or reduced by the net cost
(including amortization of discount) or benefit (after giving effect
to amortization of discount) associated with the Interest Rate
Protection Agreements, which will remain in effect for the
twelve-month period after the Transaction Date and which shall have
the effect of fixing the interest rate on the date of computation, and
(iii) in making any determination of Combined EBITDA, pro forma
effect shall be given to any Permitted Acquisition, any discontinued
operations and any Asset Sale or Scheduled Asset Disposition, in each
case which occurred after the Initial Borrowing Date and during the
Reference Period or subsequent to the Reference Period and prior to
the Transaction Date, as if such Permitted Acquisition, discontinuance
of operations or Asset Sale or Scheduled Asset Disposition, as the
case may be, occurred on the first day of the Reference Period.
All pro forma determinations required above shall be determined in accordance
with GAAP. For purposes of this definition, whenever pro forma effect is to be
given to any occurrence or event, the pro forma calculation shall be determined
in good faith by a responsible financial or accounting officer of either Parent
Company.
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"Projections" shall have the meaning provided in Section
5.13(ii).
"Qualified Preferred Stock" shall mean any preferred stock of
either Parent Company so long as the terms of any such preferred stock (i) do
not provide any collateral security, (ii) do not provide any guaranty or other
support by either Parent Company or any Subsidiaries of either Parent Company,
(iii) do not contain any mandatory put, redemption, repayment, sinking fund or
other similar provision occurring before February 23, 2005, (iv) do not contain
any covenants other than periodic reporting requirements, (v) do not grant the
holders thereof any voting rights except for (x) voting rights required to be
granted to such holders under applicable law and (y) limited customary voting
rights on fundamental matters such as mergers, consolidations, sales of all or
substantially all of the assets of the respective Parent Company or
liquidations involving such Parent Company, (vi) do not provide for the
conversion into, or the exchange for (unless at the sole discretion of the
issuer thereof), debt securities and (vii) are otherwise reasonably
satisfactory to the Lead Agents.
"Qualified Insurer" shall have the meaning provided in
Section 8.03(c).
"Quarterly Payment Date" shall mean the last Business Day of
each April, July, October and January occurring after the Effective Date.
"Rating Agencies" shall mean both S&P and Xxxxx'x.
"RCRA" shall mean the Resource Conservation and Recovery Act,
as the same may be amended from time to time, 42 U.S.C. Section 6901 et seq.
"Real Property" of any Person shall mean all the right, title
and interest of such Person in and to land, improvements and fixtures,
including Leaseholds.
"Recourse Indebtedness" of any Person means all Indebtedness
of such Person and its Subsidiaries for which recourse for payment may be made
against such Person for the obligations secured thereunder (and in any event
shall include all Indebtedness of such Person which is not Non-Recourse
Indebtedness).
"Recovery Event" shall mean the receipt by any Borrower or any
of its Subsidiaries of any cash insurance proceeds or condemnation awards
payable (i) by reason of theft, loss, physical destruction or damage or any
other similar event with respect to any property or assets of such Borrower or
such Subsidiary and (ii) under any policy of insurance required to be
maintained under Section 8.03; provided that the term "Recovery Event" shall
exclude any receipt of cash insurance proceeds or condemnation awards in
connection with a single occurrence or event (but treating a series of related
occurrences or events as a single occurrence or event) where the aggregate
amount of cash proceeds so received by any Borrower and its Subsidiaries does
not exceed $5,000,000 (or, in the case of currencies other than Dollars, the
Dollar Equivalent thereof).
"Reference Period" shall have the meaning provided in the
definition of Pro Forma Basis.
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"Refinancing" shall mean and include the refinancing and
repayment in full of all amounts outstanding under, and the termination in full
of all commitments and letters of credit in respect of, the Indebtedness to be
Refinanced.
"Refinancing Documents" shall mean each of the agreements,
documents and instruments entered into in connection with the Refinancing.
"Register" shall have the meaning provided in Section 13.15.
"Regulation D" shall mean Regulation D of the Board of
Governors of the Federal Reserve System as from time to time in effect and any
successor to all or a portion thereof establishing reserve requirements.
"Regulation G" shall mean Regulation G of the Board of
Governors of the Federal Reserve System as from time to time in effect and any
successor to all or a portion thereof.
"Regulation T" shall mean Regulation T of the Board of
Governors of the Federal Reserve System as from time to time in effect and any
successor to all or a portion thereof.
"Regulation U" shall mean Regulation U of the Board of
Governors of the Federal Reserve System as from time to time in effect and any
successor to all or a portion thereof.
"Regulation X" shall mean Regulation X of the Board of
Governors of the Federal Reserve System as from time to time in effect and any
successor to all or a portion thereof.
"REIT Borrowers" shall mean Starwood REIT and SLT RLP, as
joint and several obligors.
"Release" means disposing, discharging, injecting, spilling,
pumping, leaking, leaching, dumping, emitting, escaping, emptying, pouring or
migrating, into or upon any land or water or air, or otherwise entering into
the environment.
"Replaced Lender" shall have the meaning provided in Section
1.14.
"Replacement" shall have the meaning provided in Section 1.14.
"Replacement Lender" shall have the meaning provided in
Section 1.14.
"Reply Date" shall have the meaning provided in Section
1.04(b).
"Reportable Event" shall mean an event described in Section
4043(c) of ERISA with respect to a Plan that is subject to Title IV of ERISA
other than those events as to which the 30-day notice period is waived under
subsection .22, .23, .25, .27 or .28 of PBGC Regulation Section 4043.
"Required Lenders" shall mean Non-Defaulting Lenders the sum
of whose outstanding Term Loans (and, prior to the termination thereof, Term
Loan Commitments) and Revolving Loan Commitments (or after the termination
thereof, outstanding Revolving Loans and
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Competitive Bid Loans and Participations in Letter of Credit Outstandings and
outstanding Swingline Loans) represent an amount greater than 50% of the sum of
all outstanding Term Loans (and, if prior to the termination thereof, Term Loan
Commitments) of Non-Defaulting Lenders and the Total Revolving Loan Commitment
less the Revolving Loan Commitments of Defaulting Lenders (or after the
termination of the Total Revolving Loan Commitment, the sum of the then total
outstanding Revolving Loans and Competitive Bid Loans of Non-Defaulting
Lenders, and the aggregate Participations of all Non-Defaulting Lenders of
Letter of Credit Outstandings and outstanding Swingline Loans at such time).
For purposes of determining Required Lenders, all outstanding Loans and
Commitments, as the case may be, that are denominated in Dollars will be
calculated in Dollars and all Loans and Commitments, as the case may be,
denominated in an Alternate Currency will be calculated according to the Dollar
Equivalent thereof.
"Requirements of Law" means, as to any Person, the certificate
of incorporation and by-laws or other organizational or governing documents of
such Person, and all foreign federal, state and local laws, rules and
regulations, including, without limitation, foreign federal, state or local
securities, antitrust and licensing laws, all food, health and safety laws, and
all applicable trade laws and requirements, including, without limitation, all
disclosure requirements of Environmental Laws, ERISA and all orders, judgments,
decrees or other determinations of any Governmental Authority (including,
without limitation, all relevant Gaming Authorities) or arbitrator, applicable
to or binding upon such Person, its business or any of its property or to which
such Person, its business or any of its property is subject.
"Revolving Credit Exposure" shall mean, for any RL Lender at
any time, the sum of (i) the aggregate principal amount of all Revolving Loans
made by such Lender (and its affiliates, if any, acting as Alternate Currency
Lenders) (for this purpose, (x) at all times prior to the occurrence of any
Sharing Event and the automatic conversion of Alternate Currency Revolving
Loans to Dollar Revolving Loans pursuant to Section 1.17, using the Dollar
Equivalent of the principal amount or Face Amount, as the case may be, of all
Alternate Currency Revolving Loans then outstanding from such RL Lender or any
affiliate thereof acting as an Alternate Currency Lender and (y) at all times
after the occurrence of any Sharing Event, giving effect to the conversions
required by Section 1.17 and to all participations purchased by such RL Lender
pursuant to Section 1.17), plus (ii) the product of (A) such Lender's Dollar
Percentage (or, after the occurrence of a Sharing Event, its RL Percentage) and
(B) the sum of (x) the aggregate amount of all Letter of Credit Outstandings at
such time and (y) the aggregate principal amount of all Swingline Loans then
outstanding.
"Revolving Credit Period" shall mean the period from and
including the Initial Borrowing Date to but not including the Revolving Loan
Maturity Date.
"Revolving Loan" shall have the meaning provided in Section
1.01(d).
"Revolving Loan Borrowers" shall mean and include each of the
Dollar Revolving Loan Borrowers and the Alternate Currency Revolving Loan
Borrowers.
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"Revolving Loan Commitment" shall mean, for each Lender, the
amount set forth opposite such Lender's name in Schedule I-A directly below the
column entitled "Revolving Loan Commitment," as the same may be (x) reduced
from time to time pursuant to Sections 3.02, 3.03 and/or 10 or (y) adjusted
from time to time as a result of assignments to or from such Lender pursuant to
Section 1.14 or 13.04(b).
"Revolving Loan Maturity Date" shall mean February 23, 2003.
"Revolving Notes" shall mean each Dollar Revolving Note, each
Canadian Dollar Revolving Note, each French Franc Revolving Note and each
Sterling Revolving Note.
"RL Lender" shall mean, at any time, each Lender with a
Revolving Loan Commitment or with outstanding Revolving Loans at such time.
"RL Percentage" of any Lender at any time shall mean a
fraction (expressed as a percentage) the numerator of which is the Revolving
Loan Commitment of such Lender at such time the denominator of which is the
Total Revolving Loan Commitment at such time. Notwithstanding anything to the
contrary contained above, if the RL Percentage of any Lender is to be
determined after the Total Revolving Loan Commitment has been terminated, then
the RL Percentages of the Lenders shall be determined immediately prior (and
without giving effect) to such termination.
"S&P" shall mean Standard & Poor's Ratings Services.
"Scheduled Asset Disposition" shall mean (i) ESI Transaction
and (ii) any Asset Sale of all or a portion of the Assets described in the
Schedule 11.01C.
"Scheduled Repayment" shall mean the Tranche I Scheduled
Repayment and each Tranche II Scheduled Repayment.
"SEC" shall have the meaning provided in Section 8.01(g).
"Section 4.04(b)(ii) Certificate" shall have the meaning
provided in Section 4.04(b)(ii).
"Secured Creditors" shall have the meaning assigned that term
in the Pledge and Security Agreement.
"Securities Act" shall mean the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder.
"Securities Exchange Act" shall mean the Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder.
"Securitized Debt" shall mean collectively all indebtedness
under the loan documents evidencing (i) the $41,700,000 loan from Nomura Asset
Capital Corporation ("NACC") to Westin Indianapolis, L.L.C., an Indiana limited
liability company, secured by a first mortgage loan
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154
on the Westin Indianapolis Hotel and (ii) the $75,000,000 loan from NACC to the
Peachtree Hotel Company, a Georgia limited partnership, and assumed by Westin
Portman Peachtree II L.L.C., secured by a first deed to secured debt on the
Westin Peachtree Plaza.
"Security Documents" shall mean the Pledge and Security
Agreement and any other pledge or similar agreement executed and delivered
after the Initial Borrowing Date pursuant to Section 8.13, 8.14, 8.15 or any
other provision of this Agreement or the Pledge and Security Agreement.
"Senior Note Documents" shall mean the Senior Secured Bridge
Note Documents and the Senior Secured Note Documents.
"Senior Notes" shall mean the Senior Secured Bridge Notes, the
Permanent Senior Notes and the Permanent Senior Secured Notes.
"Senior Secured Bridge Note Agreement" shall mean that certain
Senior Secured Increasing Rate Note Agreement, dated as of February 23, 1998,
among the Corporation, as borrower, Starwood REIT and the other entities named
therein as guarantors, the lenders from time to time party thereto and LCPI, as
Arranger, as in effect on the Initial Borrowing Date and as the same may be
amended, modified or supplemented from time to time pursuant to the terms
hereof and thereof.
"Senior Secured Bridge Note Documents" shall mean and include
any the Senior Secured Bridge Note Agreement, the Senior Secured Bridge Notes
and all other agreements, instruments and documents entered into in connection
with the issuance of the Senior Secured Bridge Notes, as same may be amended,
modified or supplemented from time to time pursuant to the terms hereof and
thereof.
"Senior Secured Bridge Notes" shall mean the Corporation's
Increasing Rate Senior Secured Bridge Notes issued pursuant to the Senior
Secured Bridge Note Agreement.
"Senior Secured Note Documents" shall mean the Senior Secured
Bridge Note Documents and the Permanent Senior Secured Note Documents.
"Senior Secured Notes" shall mean the Senior Secured Bridge
Notes and any issue of Permanent Senior Secured Notes.
"Shareholders' Agreements" shall mean all agreements entered
into by any Borrower of any of its Subsidiaries governing the terms and
relative rights of its capital stock and any agreements entered into by
shareholders relating to any such entity with respect to its capital stock.
"Sharing Event" shall mean (i) the occurrence of any Event of
Default with respect to any Borrower pursuant to Section 10.05, (ii) the
declaration of the Total Commitment terminated, or the acceleration of the
maturity of any Loans, in each case pursuant to the last paragraph of Section
10 or (iii) the failure of any Borrower to pay any principal of, Face Amount
of, or interest on, Loans or any Letter of Credit Obligations on the Final
Maturity Date.
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"SLC OLP" shall mean SLC Operating Limited Partnership, a
Delaware limited partnership.
"SLT RLP" shall have the meaning provided in the first
paragraph of this Agreement.
"Specified Default" shall mean any Default existing pursuant
to any of Sections 10.01, 10.05 or 10.09 of this Agreement.
"Standby Letter of Credit" shall have the meaning provided
in Section 2.01(a).
"Start Date" shall mean, with respect to any Margin Adjustment
Period, the first day of such Margin Adjustment Period.
"Starwood REIT" shall have the meaning provided in the first
paragraph of this Agreement.
"Stated Amount" of each Letter of Credit shall, at any time,
mean the maximum amount available to be drawn thereunder (in each case
determined without regard to whether any conditions to drawing could then be
met, but after giving effect to all previous drawings made thereunder).
"Sterling Equivalent" shall mean, at any time for the
determination thereof, the amount of Pounds Sterling which could be purchased
with the amount of Dollars involved in such computation at the spot exchange
rate therefore as quoted by the Paying Agent as of 11:00 A.M. (London time) on
the date two Business Days prior to the date of any determination thereof for
purchase on such date.
"Sterling Euro Rate" shall mean (i) the rate per annum that
appears on page 3750 of the Dow Xxxxx Markets Screen (or any successor page)
for Pounds Sterling deposits with maturities comparable to the Interest Period
applicable to the Sterling Revolving Loans subject to the respective Borrowing
commencing two Business Days thereafter as of 11:00 a.m. (London time) on the
date which is two Business Days prior to the commencement of the respective
Interest Period or (ii) if such a rate does not appear on page 3750 of the Dow
Xxxxx Markets Screen (or any successor page), the offered quotation to
first-class banks in the London interbank market by BTCo for Pounds Sterling
deposits of amounts in immediately available funds comparable to the
outstanding principal amount of the Sterling Revolving Loan of BTCo with
maturities comparable to the Interest Period applicable to such Sterling
Revolving Loan commencing two Business Days thereafter as of 11:00 A.M. (London
time) on the date which is two Business Days prior to the commencement of such
Interest Period; provided, that in the event the Paying Agent has made any
determination pursuant to Section 1.11(a)(i) in respect of Sterling Revolving
Loans, or in the circumstances described in clause (i) to the proviso to
Section 1.11(b) in respect of Sterling Revolving Loans, the Sterling Euro Rate
determined pursuant to this definition shall instead be the rate determined by
BTCo as the all-in-cost of funds for BTCo to fund such Sterling Revolving Loan
with maturities comparable to the Interest Period applicable thereto.
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"Sterling Revolving Loan" shall mean each Alternate Currency
Revolving Loan denominated in Pounds Sterling at the time of the incurrence
thereof.
"Sterling Revolving Notes" shall have the meaning provided
in Section 1.06(a).
"Subordination Agreement" shall have the meaning provided in
Section 9.04.
"Subsidiary" shall mean, as to any Person, (i) any corporation
more than 50% of whose stock of any class or classes having by the terms
thereof ordinary voting power to elect a majority of the directors of such
corporation (irrespective of whether or not at the time stock of any class or
classes of such corporation shall have or might have voting power by reason of
the happening of any contingency) is at the time owned by such Person and/or
one or more Subsidiaries of such Person and (ii) any partnership, association,
joint venture or other entity in which such Person and/or one or more
Subsidiaries of such Person has more than a 50% equity interest at the time.
It being understood that any reference in this Agreement to "the Parent
Companies and their Subsidiaries" shall include any entity that is a Subsidiary
of either, or would be a Subsidiary of the Parent Companies, if the Parent
Company were a single entity. For purposes of determining compliance with the
covenants (other than the financial covenants contained) in Sections 8.01
through 8.21, inclusive, and 9.01 through 9.07, inclusive, and 9.12 through
9.22, inclusive, the term Subsidiary shall be deemed to include WD Parent and
Assigned Starwood Note LLC.
"Supermajority Lenders" of any Tranche shall mean those
Non-Defaulting Lenders which would constitute the Required Lenders under, and
as defined in, this Agreement if (x) all outstanding Obligations of the other
Tranches under this Agreement were repaid in full and all Commitments with
respect thereto were terminated and (y) the percentage "50%" contained therein
were changed to "66-2/3%."
"Swingline Expiry Date" shall mean the date which is five (5)
Business Days prior to the Revolving Loan Maturity Date.
"Swingline Lender" shall mean BTCo.
"Swingline Loan" shall have the meaning provided in Section
1.01(d).
"Swingline Note" shall have the meaning provided in Section
1.06(a).
"Syndication Agent" shall have the meaning provided in the
first paragraph of this Agreement.
"Syndication Date" shall mean the date upon which the Lead
Agents determine in their sole discretion (and notify the Borrowers) that the
primary syndication (and resultant addition of institutions as Lenders pursuant
to Section 13.04) has been completed.
"Tax Affiliate" means, as to any Person, (i) any Subsidiary of
such Person and (ii) any Affiliate of such Person with which such Person files
or is eligible to file consolidated, combined or unitary tax returns.
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"Tax Returns" has the meaning provided in Section 7.07.
"Taxes" shall have the meaning provided in Section 4.04(a).
"Term Loan" shall mean each Tranche I Term Loan and each
Tranche II Term Loan.
"Term Loan Commitment" shall mean each Tranche I Term Loan
Commitment, and each Tranche II Term Loan Commitment.
"Test Date" shall mean the last day of each fiscal quarter
ended after the Initial Borrowing Date.
"Test Period" shall mean each period of four consecutive
fiscal quarters of the Parent Companies then last ended (in each case taken as
one accounting period).
"Third Anniversary" shall have the meaning provided in Section
8.20.
"Third Party Existing Indebtedness" shall have the meaning
provided in Section 7.25.
"Total Alternate Currency Revolving Loan Sub-Commitment" at
any time shall mean the sum of the Alternate Currency Revolving Loan
Sub-Commitments of all the Alternate Currency Lenders; provided that at no time
shall the Total Alternate Currency Revolving Loan Sub-Commitment exceed the
Total Revolving Loan Commitment as then in effect.
"Total Canadian Dollar Revolving Loan Sub-Commitment" means,
at any time, (x) the sum of the Canadian Dollar Revolving Loan Sub-Commitments
of all Alternate Currency Lenders at such time or, if less, (y) the Total
Canadian Dollar Revolving Loan Sub-Commitment as then in effect pursuant to
Section 1.18.
"Total Commitment" shall mean, at any time, the sum of the
Commitments of each of the Lenders.
"Total Non-Alternate Currency Revolving Loan Sub-Commitment"
at any time shall mean the sum of the Non- Alternate Currency Revolving Loan
Sub-Commitments of all the Lenders; provided that at no time shall the Total
Non- Alternate Currency Revolving Loan Sub-Commitment exceed the Total
Revolving Loan Commitment as then in effect.
"Total Non-Alternate Currency Revolving Loan Sub-Commitment
Excess" shall have the meaning provided in Section 4.01(a).
"Total Revolving Loan Commitment" shall mean, at any time, the
sum of the Revolving Loan Commitments of each of the Lenders.
"Total Term Loan Commitment" shall mean, at any time, the sum
of the Total Tranche I Term Loan Commitment and the Total Tranche II Term Loan
Commitment.
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"Total Tranche I Term Loan Commitment" shall mean, at any
time, the sum of the Tranche I Term Loan Commitments of each of the Lenders.
"Total Tranche II Term Loan Commitment" shall mean, at any
time, the sum of the Tranche II Term Loan Commitments of each of the Lenders.
"Total Unutilized Revolving Loan Commitment" shall mean, at
any time, an amount equal to the remainder of (x) the Total Revolving Loan
Commitment then in effect, less (y) the sum of (I) the aggregate principal
amount of Revolving Loans then outstanding (for this purpose, taking the Dollar
Equivalent thereof in the case of Alternate Currency Revolving Loans then
outstanding) plus (II) the aggregate principal amount of Swingline Loans then
outstanding plus (III) the then aggregate amount of Letter of Credit
Outstandings plus (iv) the aggregate principal amount of all Competitive Bid
Loans then outstanding.
"Trade Letter of Credit" shall have the meaning provided in
Section 2.01(a).
"Tranche" shall mean the respective facility and commitments
utilized in making Loans hereunder, with there being four separate Tranches,
i.e., Tranche I Term Loans, Tranche II Term Loans, Revolving Loans and
Swingline Loans.
"Tranche I Maturity Date" shall mean February 23, 1999.
"Tranche I Scheduled Repayment" shall have the meaning
provided in Section 4.02(b)(i).
"Tranche I Scheduled Repayment Date" shall have the meaning
provided in Section 4.02(b)(i).
"Tranche I Term Loan" shall have the meaning provided in
Section 1.01(a).
"Tranche I Term Loan Commitment" shall mean, for each Lender,
the amount set forth opposite such Lender's name in Schedule I-A directly below
the column entitled "Tranche I Term Loan Commitment", as the same may be (x)
reduced from time to time pursuant to Sections 3.03, 4.02 and/or 10 and (y)
adjusted from time to time as a result of assignments to or from such Lender
pursuant to Section 1.14 or 13.04(b).
"Tranche I Term Note" shall have the meaning provided in
Section 1.06(a).
"Tranche II Maturity Date" shall mean February 23, 2003.
"Tranche II Scheduled Repayment" shall have the meaning
provided in Section 4.02(b)(ii).
"Tranche II Scheduled Repayment Date" shall have the meaning
provided in Section 4.02(b)(ii).
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"Tranche II Term Loan Commitment" shall mean, for each Lender,
the amount set forth opposite such Lender's name in Schedule I-A directly below
the column entitled "Tranche II Term Loan Commitment", as the same may be (x)
reduced from time to time pursuant to Sections 3.03, 4.02 and/or 10 or (y)
adjusted from time to time as a result of assignments to or from such Lender
pursuant to Section 1.14 or 13.04(b).
"Tranche II Term Loans" shall have the meaning provided in
Section 1.01(b).
"Tranche II Term Note" shall have the meaning provided in
Section 1.06(a).
"Transaction" shall mean, collectively, (i) the issuance by
the Corporation of the Senior Secured Bridge Notes, (ii) the Refinancing, (iii)
the incurrence of Loans on the Initial Borrowing Date, (iv) the consummation of
the Acquisition and (v) the payment of fees and expenses owing in connection
with the foregoing.
"Type" shall mean the type of Loan determined with regard to
the interest option applicable thereto, i.e., whether a Base Rate Loan, a
Eurodollar Loan, a Canadian Prime Rate Loan, a Bankers' Acceptance Loan, a
Sterling Revolving Loan or a French Franc Revolving Loan.
"UBS Shares" means the 2,185,000 Paired Common Shares of
Starwood REIT and the Corporation sold on October 14, 1997 to an affiliate of
Union Bank of Switzerland in a private placement.
"UCC" shall mean the Uniform Commercial Code as from time to
time in effect in the relevant jurisdiction.
"Unconsolidated Entity" means, with respect to any Person, at
any date, any other Person in whom such Person holds an Investment, which
Investment is accounted for in the financial statements of such Person on an
equity basis of accounting and whose financial results would not be
consolidated in the financial statements of such Person, if such statements
were prepared as of such date.
"Unfunded Current Liability" of any Plan shall mean the
amount, if any, by which the actuarial present value of the accumulated plan
benefits under the Plan as of the close of its most recent plan year,
determined in accordance with actuarial assumptions at such time consistent
with Statement of Financial Accounting Standards No. 87, exceeds the market
value of the assets allocable thereto.
"United States" and "U.S." shall each mean the United States
of America.
"Unpaid Drawing" shall have the meaning provided for in
Section 2.05(a).
"Unsecured Debt Rating" means, with respect to a Person, the
rating assigned by the Rating Agencies to such Person's long term senior
unsecured Indebtedness; provided, however, that for purposes of the definitions
of Applicable Commitment Commission Percentage and Applicable Margin, if either
Rating Agency at any time assigns different ratings to the two
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160
Parent Companies, the lower rating assigned by such Rating Agency shall be
deemed to be the Unsecured Debt Rating of the Parent Companies (subject to the
further provisions contained in the definitions of Applicable Commitment
Commission Percentage and Applicable Margin contained herein).
"Unsecured Indebtedness" of any Person means any Indebtedness
of such Person and its Subsidiaries (a) which is Recourse Indebtedness and (b)
for which the obligations thereunder are not secured or collateralized by a
pledge of or other encumbrance on any Assets of such Person or its Subsidiaries
or Unconsolidated Entities.
"Unutilized Alternate Currency Revolving Loan Sub-Commitment"
means, as to any Alternate Currency Lender (including its affiliates which act
as an Alternate Currency Lender with respect to one or more other Alternate
Currencies) at any time, the sum of the Alternate Currency Revolving Loan
Sub-Commitments of such Alternate Currency Lender and its affiliates at such
time minus the Dollar Equivalent of the aggregate principal amount or Face
Amount, as the case may be, of all Alternate Currency Revolving Loans of such
Alternate Currency Lender (and its respective affiliates) then outstanding.
"Unutilized Alternate Currency RL Percentage" of any Lender at
any time shall mean a fraction (expressed as a percentage) the numerator of
which is the Unutilized Alternate Currency Revolving Loan Sub-Commitment of
such Lender (and its respective affiliates which act as Alternate Currency
Lenders) at such time and the denominator of which is the aggregate amount of
Unutilized Alternate Currency Revolving Loan Sub-Commitments of all Alternate
Currency Lenders at such time.
"Unutilized Revolving Loan Commitment" with respect to any
Lender, at any time, shall mean an amount equal to the remainder of (I) such
Lender's Revolving Loan Commitment at such time less (II) the sum of (x) the
aggregate principal amount of Revolving Loans of such Lender (including any
Affiliate of any such Lender acting as an Alternate Currency Lender) then
outstanding (taking the Dollar Equivalent of the principal amount or Face
Amount, as the case may be, in the case of any Alternate Currency Revolving
Loans then outstanding) and (y) such Lender's Dollar Percentage (or, after a
Sharing Event has occurred, its RL Percentage) of the Letter of Credit
Outstandings at such time.
"VNU" shall mean VNU International B.V., a company organized
under the laws of the Netherlands.
"VNU Preferred Stock" shall mean preferred stock of WD Parent
Corp. issued to VNU or an affiliate thereof in connection with the WD
Disposition, in the form submitted to the Lead Agents and the Lenders on or
prior to the Initial Borrowing Date.
"Voting Stock" shall mean, as to any Person, any class or
classes of outstanding Capital Stock of such Person pursuant to which the
holders thereof have the general voting power under ordinary circumstances to
elect at least a majority of the Board of Directors of such Person.
"WD Disposition" shall have the meaning provided in Section
5.17.
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"WD Memorandum" shall have the meaning provided in Section 5.17
"WD Parent Corp." shall mean WD Parent, Inc., a corporation
organized under the laws of the State of Delaware, 100% common stock of which
shall be owned by ITT Sheraton and which at no time shall have any other
Capital Stock outstanding, except for not more than $50 million aggregate
liquidation preference of VNU Preferred Stock issued to VNU prior to the
Initial Borrowing Date as part of the WD Disposition.
"Westin" shall mean Westin Hotels & Resorts Worldwide, Inc.
"Westin Acquisition" shall mean the acquisition of the
Subsidiaries of W&S Hotel, L.L.C. by Starwood REIT, SLT RLP, the Corporation
and SLC OLP.
"Westin Acquisition Documents" shall mean all agreements,
instruments and documents entered into in connection with the Westin
Acquisition.
"Westin Acquisition Shares" shall mean the Class A
Exchangeable Preferred Shares and the Class B Exchangeable Preferred Shares,
which were issued in connection with the Westin Acquisition.
"Wholly-Owned Domestic Subsidiary" of any Person shall mean
any Subsidiary of such Person which is both a Domestic Subsidiary and a
Wholly-Owned Subsidiary of such Person.
"Wholly-Owned Foreign Subsidiary" of any Person shall mean any
Subsidiary of such Person which is both a Foreign Subsidiary and a Wholly-Owned
Subsidiary of such Person.
"Wholly-Owned Subsidiary" shall mean, as to any Person, (i)
any corporation 100% of whose capital stock is at the time owned by such Person
and/or one or more Wholly-Owned Subsidiaries of such Person and (ii) any
partnership, association, joint venture or other entity in which such Person
and/or one or more Wholly-Owned Subsidiaries of such Person has a 100% equity
interest at such time.
"World Directories" shall mean ITT World Directories, Inc.,
a Delaware corporation.
SECTION 12. The Agents.
12.01 Appointment. The Lenders hereby designate BTCo as
Paying Agent and as Collateral Agent to act as specified herein and in the
other Credit Documents. The Lenders hereby designate (x) each of BTCo and
Chase Manhattan as Administrative Agents, (y) LCPI as Syndication Agent and (z)
Bank of Montreal as Documentation Agent, in each case to act as specified
herein and in the other Credit Documents. Each Lender hereby irrevocably
authorizes, and each holder of any Note by the acceptance of such Note shall be
deemed irrevocably to authorize, any Agent to take such action on its behalf
under the provisions of this Agreement, the other Credit Documents and any
other instruments and agreements referred to herein or therein and to exercise
such powers and to perform such duties hereunder and thereunder as are
specifically delegated to or required of such Agent by the terms hereof and
thereof and such other
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powers as are reasonably incidental thereto. Each Agent may perform any of its
duties hereunder by or through its respective officers, directors, agents,
employees or affiliates.
12.02 Nature of Duties. No Agent shall have any duties or
responsibilities except those expressly set forth in this Agreement and in the
other Credit Documents. No Agent nor any of its respective officers,
directors, agents, employees or affiliates shall be liable for any action taken
or omitted by it or them hereunder or under any other Credit Document or in
connection herewith or therewith, unless caused by its or their gross
negligence or willful misconduct. The duties of the Agents shall be mechanical
and administrative in nature; no Agent shall have by reason of this Agreement
or any other Credit Document a fiduciary relationship in respect of any Lender
or the holder of any Note; and nothing in this Agreement or any other Credit
Document, expressed or implied, is intended to or shall be so construed as to
impose the any Agent any obligations in respect of this Agreement or any other
Credit Document except as expressly set forth herein or therein.
12.03 Lack of Reliance on the Agents. Independently and
without reliance upon any Agent (for purposes of this Section 12.03, the term
"Agent" shall include all officers, directors, agents, employees and affiliates
of the respective Agent), each Lender and the holder of each Note, to the
extent it deems appropriate, has made and shall continue to make (i) its own
independent investigation of the financial condition and affairs of the
Borrowers and their Subsidiaries in connection with the making and the
continuance of the Loans and the taking or not taking of any action in
connection herewith and (ii) its own appraisal of the creditworthiness of the
Borrowers and their Subsidiaries and, except as expressly provided in this
Agreement, no Agent shall have any duty or responsibility, either initially or
on a continuing basis, to provide any Lender or the holder of any Note with any
credit or other information with respect thereto, whether coming into its
possession before the making of the Loans or at any time or times thereafter.
No Agent shall be responsible to any Lender or the holder of any Note for any
recitals, statements, information, representations or warranties herein or in
any document, certificate or other writing delivered in connection herewith or
for the execution, effectiveness, genuineness, validity, enforceability,
perfection, collectibility, priority or sufficiency of this Agreement or any
other Credit Document or the financial condition of any Borrower or any of its
Subsidiaries or be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or conditions of this
Agreement or any other Credit Document, or the financial condition of any
Borrower or any of its Subsidiaries or the existence or possible existence of
any Default or Event of Default.
12.04 Certain Rights of the Agents. If any Agent shall
request instructions from the Required Lenders with respect to any act or
action (including failure to act) in connection with this Agreement or any
other Credit Document, such Agent shall be entitled to refrain from such act or
taking such action unless and until such Agent shall have received instructions
from the Required Lenders; and such Agent shall not incur liability to any
Person by reason of so refraining. Without limiting the foregoing, no Lender
and no holder of any Note shall have any right of action whatsoever against any
Agent as a result of such Agent acting or refraining from acting hereunder or
under any other Credit Document in accordance with the instructions of the
Required Lenders.
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12.05 Reliance. Each Agent shall be entitled to rely, and
shall be fully protected in relying, upon any note, writing, resolution,
notice, statement, certificate, telex, teletype or telecopier message,
cablegram, radiogram, order or other document or telephone message signed, sent
or made by any Person that such Agent believed to be the proper Person, and,
with respect to all legal matters pertaining to this Agreement and any other
Credit Document and its duties hereunder and thereunder, upon advice of counsel
selected by such Agent.
12.06 Indemnification. To the extent any Agent is not
reimbursed and indemnified by the Credit Parties, the Lenders will reimburse
and indemnify such Agent, its affiliates, and their respective officers,
directors, agents and employees, in proportion to their respective
"percentages" as used in determining the Required Lenders (for this purpose,
determined as if there were no Defaulting Lenders at such time), for and
against any and all liabilities, obligations, losses, damages, penalties,
claims, actions, judgments, costs, expenses or disbursements of whatsoever kind
or nature which may be imposed on, asserted against or incurred by such Agent
in performing its respective duties hereunder or under any other Credit
Document, in any way relating to or arising out of this Agreement or any other
Credit Document; provided that no Lender shall be liable for any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements to the extent resulting from the such
Agent's gross negligence or willful misconduct.
12.07 Each Agent in its Individual Capacity. With respect to
its obligation to make Loans, or issue or participate in Letters of Credit,
under this Agreement, each Agent shall have the rights and powers specified
herein for a "Lender" and may exercise the same rights and powers as though it
were not performing the duties specified herein; and the term "Lenders,"
"Required Lenders," "Majority Lenders," "Supermajority Lenders," "holders of
Notes" or any similar terms shall, unless the context clearly otherwise
indicates, include each Agent in its individual capacity. Each Agent may
accept deposits from, lend money to, and generally engage in any kind of
banking, investment banking, trust or other business with any Credit Party or
any Affiliate of any Credit Party as if it were not performing the duties
specified herein, and may accept fees and other consideration from any Credit
Party for services in connection with this Agreement and otherwise without
having to account for the same to the Lenders.
12.08 Holders. The Paying Agent may deem and treat the payee
of any Note as the owner thereof for all purposes hereof unless and until a
written notice of the assignment, transfer or endorsement thereof, as the case
may be, shall have been filed with the Paying Agent. Any request, authority or
consent of any Person who, at the time of making such request or giving such
authority or consent, is the holder of any Note shall be conclusive and binding
on any subsequent holder, transferee, assignee or indorsee , as the case may
be, of such Note or of any Note or Notes issued in exchange therefor.
12.09 Removal of or Resignation by the Agents. (a) Any
Agent (including , without limitation, the Paying Agent and the Collateral
Agent) may resign from the performance of all its functions and duties
hereunder and/or under the other Credit Documents at any time by giving 30
days' prior written notice to the Lenders and the Borrowers. Such resignation
shall take effect upon the appointment of a successor Agent pursuant to clauses
(b) and (c) below or as otherwise provided below; provided that (x) the
resignation by the Collateral Agent shall only be effective
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upon the appointment of a successor Collateral Agent and (y) any time when
there are two or more Lead Agents hereunder, any Lead Agent may resign from the
performance of its functions and duties hereunder as Lead Agent (but not as
Paying Agent or Collateral Agent) at any time by giving notice to the
Borrowers, the Paying Agent and the Lenders, which resignation shall take
effect upon delivery of such notice. Furthermore, any Agent may be removed by
the Required Lenders in the event that such Agent committed a willful breach
of, or was grossly negligent in the performance of, its material obligations
hereunder.
(b) Except in the case of a resignation as provided in
clause (y) of the proviso to Section 12.09(a), upon any notice of resignation
by, or the removal of, any Agent, the Required Lenders shall appoint a
successor Agent hereunder who shall be a commercial bank or trust company
reasonably acceptable to the Parent Companies; provided that if the Paying
Agent or Collateral Agent is resigning, or is removed, and (1) Chase Manhattan
is a Lead Agent, at such time, then Chase Manhattan shall first be offered the
opportunity to act as successor Paying Agent or Collateral Agent, as the case
may be or (2) if Chase Manhattan should decline such opportunity, then LCPI
shall be offered the opportunity to act as successor Paying Agent or Collateral
Agent, as the case may be.
(c) If a successor Agent shall not have been so appointed
within such 30 day period, the resigning Agent, with the consent of the Parent
Companies (which consent shall not be unreasonably withheld or delayed), shall
then appoint a successor Agent who shall serve as Agent hereunder or thereunder
until such time, if any, as the Required Lenders appoint a successor Agent as
provided above.
(d) If no successor Agent has been appointed pursuant to
clause (b) or (c) above by the 40th day after the date such notice of
resignation was given by the resigning Agent, the resigning Agent's resignation
shall become effective and the Required Lenders shall thereafter perform all
the duties of such Agent hereunder and/or under any other Credit Document until
such time, if any, as the Required Lenders appoint a successor Agent as
provided above.
SECTION 13. Miscellaneous.
13.01 Payment of Expenses, etc. The Borrowers jointly and
severally agree that they shall: (i) whether or not the transactions herein
contemplated are consummated, pay all reasonable out-of-pocket costs and
expenses of the Agents (including, without limitation, the reasonable fees and
disbursements of White & Case and the Agents' local and foreign counsel and
consultants) in connection with the preparation, execution and delivery of this
Agreement and the other Credit Documents and the documents and instruments
referred to herein and therein and any amendment, waiver or consent relating
hereto or thereto, of the Agents in connection with their syndication efforts
with respect to this Agreement and of the Agents (and, after the occurrence of
an Event of Default, each of the Lenders) in connection with the enforcement of
this Agreement and the other Credit Documents and the documents and instruments
referred to herein and therein (including, without limitation, the reasonable
fees and disbursements of counsel for each Agent and each Lender); (ii) pay and
hold each of the Lenders harmless from and against any and all present and
future stamp, excise and other similar documentary taxes with respect to the
foregoing matters and save each of the Lenders harmless from and against any
and all liabilities with
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respect to or resulting from any delay or omission (other than to the extent
attributable to such Lender) to pay such taxes; and (iii) indemnify each Agent
and each Lender, and each of their respective officers, directors, employees,
representatives and agents from and hold each of them harmless against any and
all liabilities, obligations (including removal or remedial actions), losses,
damages, penalties, claims, actions, judgments and suits, and all reasonable
costs, expenses and disbursements (including reasonable attorneys' and
consultants' fees and disbursements) incurred by, imposed on or assessed
against any of them as a result of, or arising out of, or in any way related
to, or by reason of, (a) any investigation, litigation or other proceeding
(whether or not any Agent or any Lender is a party thereto) related to the
entering into and/or performance of this Agreement or any other Credit Document
or the use of any Letter of Credit or the proceeds of any Loans hereunder or
the consummation of any transactions contemplated herein or in any other Credit
Document or the exercise of any of their rights or remedies provided herein or
in the other Credit Documents, or (b) the actual or alleged presence of
Hazardous Materials in the air, surface water or groundwater or on the surface
or subsurface of any Real Property owned or at any time operated by any
Borrower or any of its Subsidiaries, the generation, storage, transportation,
handling or disposal of Hazardous Materials at any Real Property, whether or
not owned or operated by any Borrower or any of its Subsidiaries, the
non-compliance of any Real Property with foreign, federal, state and local
laws, regulations, and ordinances (including applicable permits thereunder)
applicable to any Real Property, or any Environmental Claim asserted against,
in connection with or arising from, any Borrower, any of its Subsidiaries or
any Real Property owned or at any time operated by any Borrower or any of its
Subsidiaries, including, in each case, without limitation, the reasonable fees
and disbursements of counsel and other consultants incurred in connection with
any such investigation, litigation or other proceeding (but excluding any
losses, liabilities, claims, damages or expenses to the extent incurred by
reason of the gross negligence or willful misconduct of the Person to be
indemnified). To the extent that the undertaking to indemnify, pay or hold
harmless any Agent or any Lender set forth in the preceding sentence may be
unenforceable because it is violative of any law or public policy, the
Borrowers shall make the maximum contribution to the payment and satisfaction
of each of the indemnified liabilities which is permissible under applicable
law.
13.02 Right of Setoff. In addition to any rights now or
hereafter granted under applicable law or otherwise, and not by way of
limitation of any such rights, upon the occurrence of an Event of Default, each
Lender is hereby authorized (to the extent not prohibited by applicable law) at
any time or from time to time, without presentment, demand, protest or other
notice of any kind to any Credit Party or to any other Person, any such notice
being hereby expressly waived, to set off and to appropriate and apply any and
all deposits (general or special) and any other Indebtedness at any time held
or owing by such Lender (including, without limitation, by branches and
agencies of such Lender wherever located) to or for the credit or the account
of any Credit Party against and on account of the Obligations and liabilities
of such Credit Party to such Lender under this Agreement or under any of the
other Credit Documents, including, without limitation, all interests in
Obligations purchased by such Lender pursuant to Section 13.06(b), and all
other claims of any nature or description arising out of or connected with this
Agreement or any other Credit Document, irrespective of whether or not such
Lender shall have made any demand hereunder and although said Obligations,
liabilities or claims, or any of them, shall be contingent or unmatured.
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13.03 Notices. Except as otherwise expressly provided
herein, all notices and other communications provided for hereunder shall be in
writing (including telegraphic, telex, telecopier or cable communication) and
mailed, telegraphed, telexed, telecopied, cabled or delivered: if to any
Credit Party, at the address specified opposite its signature below or in the
other relevant Credit Documents; if to any Lender, at its address specified on
Schedule II; and if to the Paying Agent, at its Notice Office; or, as to any
Credit Party or any Agent, at such other address as shall be designated by such
party in a written notice to the other parties hereto and, as to each Lender,
at such other address as shall be designated by such Lender in a written notice
to the Parent Companies and the Paying Agent. All such notices and
communications shall, when mailed, telegraphed, telexed, telecopied, or cabled
or sent by overnight courier, be effective (x) three Business Days after
deposited in the mails, (y) one Business Day after delivered to the telegraph
company, cable company or a recognized overnight courier, as the case may be,
or (z) when sent by telex or telecopier, except that notices and communications
to the Agents shall not be effective until received by the Agents.
13.04 Benefit of Agreement; Assignments; Participations. (a)
This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the respective successors and assigns of the parties hereto;
provided, however, that no Borrower may assign or transfer any of its rights,
obligations or interest hereunder or under any Credit Document without the
prior written consent of the Agents and all the Lenders and, provided further,
that, although any Lender may transfer or grant participations in its rights
hereunder to any Eligible Transferee, such Lender shall remain a "Lender" for
all purposes hereunder (and may not transfer or assign all or any portion of
its Revolving Loan Commitments and/or outstanding Loans hereunder except as
provided in Section 13.04(b)) and the transferee, assignee or participant, as
the case may be, shall not constitute a "Lender" hereunder and, provided
further, that no Lender shall transfer or grant any participation under which
the participant shall have rights to approve any amendment to or waiver of this
Agreement or any other Credit Document except to the extent such amendment or
waiver would (i) extend the final scheduled maturity of any Loan, Note or
Letter of Credit (unless such Letter of Credit is not extended beyond the
Revolving Loan Maturity Date) in which such participant is participating, or
reduce the rate or extend the time of payment of interest or Fees thereon
(except in connection with a waiver of applicability of any post-default
increase in interest rates) or reduce the principal amount thereof, or increase
the amount of the participant's participation over the amount thereof then in
effect (it being understood that a waiver of any Default or Event of Default or
of a mandatory reduction in any Commitment shall not constitute a change in the
terms of such participation, and that an increase in any Commitment or Loan
shall be permitted without the consent of any participant if the participant's
participation is not increased as a result thereof) or (ii) consent to the
assignment or transfer by any Borrower of any of its rights and obligations
under this Agreement. In the case of any such participation, the participant
shall not have any rights under this Agreement or any of the other Credit
Documents (the participant's rights against such Lender in respect of such
participation to be those set forth in the agreement executed by such Lender in
favor of the participant relating thereto) and the Borrowers shall continue to
deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Agreement and the other Credit Documents and
all amounts payable by the Borrowers hereunder shall be determined as if such
Lender had not sold such participation.
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(b) Notwithstanding the foregoing, any Lender (or any
Lender together with one or more other Lenders) may (x) assign all or a portion
of its Commitments and related outstanding Obligations (or, if the Commitments
with respect to the relevant Tranche have terminated, outstanding Obligations)
hereunder to an Eligible Transferee which is (i) (a) its parent company and/or
any affiliate of such Lender which is at least 50% owned by such Lender or its
parent company or (b) to one or more Lenders or (ii) in the case of any Lender
that is a fund that invests in bank loans, any other fund that invests in bank
loans and is managed or advised by the same investment advisor of such Lender
or by an Affiliate of such investment advisor, provided that in respect of any
assignment pursuant to preceding clauses (i) and (ii) of less than $10,000,000
in the aggregate of such Lender's Commitments and related outstanding
Obligations, at the time of any such assignment the Lender shall provide the
Paying Agent with the name of a single entity to receive all notices under this
Agreement on behalf of such assigning Lender and its affiliates, or (y) assign
all, or if less than all, a portion equal to at least $10,000,000 in the
aggregate for the assigning Lender or assigning Lenders, of such Commitments
and related outstanding Obligations (or, if the Commitments with respect to the
relevant Tranche have terminated, outstanding Obligations) hereunder to one or
more Eligible Transferees, each of which assignees shall become a party to this
Agreement as a Lender by execution of an Assignment and Assumption Agreement,
provided that, (i) the assignment by any Lender of its Alternate Currency
Revolving Loan Sub-Commitments (or any portion thereof) shall constitute the
assignment of a like amount of such Lender's (or its respective Affiliate's)
Revolving Loan Commitment, (ii) any assignment of all or any portion of the
Revolving Loan Commitment of any Lender shall be required to be accompanied by
the assignment of all or such portions of the Alternate Currency Revolving Loan
Sub-Commitments and/or Non-Alternate Currency Revolving Loan Sub-Commitment of
such Lender (or its respective Affiliate) as is equal, in the aggregate, to the
amount of the Revolving Loan Commitment being so assigned, (iii) any assignment
of all or any portion of the Revolving Loan Commitment and related outstanding
Obligations (or, if the Revolving Loan Commitment has terminated, any
assignment of Obligations originally extended pursuant to the Revolving Loan
Commitments) shall be made on a basis such that the respective assignee
participates in Revolving Loans, and in Letter of Credit Outstandings, in
accordance with the Revolving Loan Commitment (and Sub-Commitments described
above) so assigned (or if the Revolving Loan Commitment has terminated, on the
same basis as participated in by the Lenders with Revolving Loan Commitments
(and Sub-Commitments described above) prior to the termination thereof), (iv)
at such time Schedules I-A and, if applicable, I-B shall be deemed modified to
reflect the Commitments (or outstanding Term Loans, as the case may be) and, if
applicable, Alternate Currency Revolving Loan Sub-Commitments of such new
Lender and of the existing Lenders, (v) upon the surrender of the relevant
Notes by the assigning Lender (or, upon such assigning Lender's indemnifying
the respective Borrower for any lost Note pursuant to a customary
indemnification agreement) new Notes will be issued, at the Borrowers' expense,
to such new Lender and to the assigning Lender upon the request of such new
Lender or assigning Lender, such new Notes to be in conformity with the
requirements of Section 1.06 (with appropriate modifications) to the extent
needed to reflect the revised Commitments (or outstanding Term Loans, as the
case may be), (vi) the consent of the Paying Agent (not to be unreasonably
withheld or delayed) shall be required in connection with any assignment to an
Eligible Transferee pursuant to clause (y) above, (vii) any assignment of all
or any portion of the Revolving Loan Commitment of any Lender (or, if the
Revolving Loan Commitment has terminated, any assignment which would include
participations in outstanding
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Letters of Credit and/or obligations to fund Mandatory Borrowings) shall
require the consent of the Swingline Lender and each Issuing Bank at such time
(which consents will not be unreasonably withheld or delayed), (viii) at any
time when no Default or Event of Default is in existence, the approval of the
Parent Companies shall be required (except with respect to assignments of
pursuant to clause (x) above), which approval shall not be unreasonably
withheld or delayed, (ix) the Paying Agent shall receive at the time of each
such assignment, from the assigning or assignee Lender, the payment of a
non-refundable assignment fee of $3,500, and (x) promptly after such
assignment, the Borrowers shall have received from the Paying Agent notice of
any such assignment and of the identity, nationality and applicable lending
office of any such Eligible Transferee that is not a United States Person (as
defined in Section 7701(a)(30) of the Code), together with the copy of the
Assignment and Assumption Agreement relating thereto and, provided further,
that such transfer or assignment will not be effective until recorded by the
Paying Agent on the Register pursuant to Section 13.15 hereof. To the extent
of any assignment pursuant to this Section 13.04(b), the assigning Lender shall
be relieved of its obligations hereunder with respect to its assigned
Commitments. At the time of each assignment pursuant to this Section 13.04(b)
to a Person which is not already a Lender hereunder and which is not a United
States Person (as such term is defined in Section 7701(a)(30) of the Code) for
Federal income tax purposes, the respective assignee Lender shall, to the
extent legally entitled to do so, provide to the Parent Companies the Internal
Revenue Forms (and, if applicable a Section 4.04(b)(ii) Certificate) described
Section 4.04(b). To the extent that an assignment of all or any portion of a
Lender's Commitments and related outstanding Obligations pursuant to Section
1.14 or this Section 13.04(b) would, at the time of such assignment, result in
increased costs under Section 1.11, 1.16(b), 2.06 or 4.04 in excess of those
being charged by the respective assigning Lender prior to such assignment, then
the Borrowers shall not be obligated to pay such excess increased costs
(although the Borrowers, in accordance with and pursuant to the other
provisions of this Agreement, shall be obligated to pay the costs which are not
in excess of those being charged by the respective assigning Lender prior to
such assignment and any subsequent increased costs of the type described above
resulting from changes after the date of the respective assignment).
(c) Nothing in this Agreement shall prevent or prohibit
any Lender from pledging its Loans and Notes hereunder to a Federal Reserve
Bank in support of borrowings made by such Lender from such Federal Reserve
Bank and, with the consent of the Paying Agent, any Lender which is a fund may
pledge all or any portion of its Notes or Loans to a trustee in support of its
obligations to such trustee and others. No pledge pursuant to this clause (c)
shall release the transferor Lender from any of its obligations hereunder.
13.05 No Waiver; Remedies Cumulative. No failure or delay on
the part of any Agent, the Collateral Agent or any Lender in exercising any
right, power or privilege hereunder or under any other Credit Document and no
course of dealing between any Borrower or any other Credit Party and any Agent,
the Collateral Agent or any Lender shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, power or privilege hereunder or
under any other Credit Document preclude any other or further exercise thereof
or the exercise of any other right, power or privilege hereunder or thereunder.
The rights, powers and remedies herein or in any other Credit Document
expressly provided are cumulative and not exclusive of any rights, powers or
remedies which any Agent, the Collateral Agent or any Lender would otherwise
have. No notice to or demand on any Credit Party in any case shall entitle any
Credit Party to any other
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or further notice or demand in similar or other circumstances or constitute a
waiver of the rights of any Agent, the Collateral Agent or any Lender to any
other or further action in any circumstances without notice or demand.
13.06 Payments Pro Rata. (a) Except as otherwise provided
in this Agreement, the Paying Agent agrees that promptly after its receipt of
each payment from or on behalf of any Borrower in respect of any Obligations
hereunder, it shall distribute such payment to the Lenders (other than any
Lender that has consented in writing to waive its pro rata share of any such
payment) pro rata based upon their respective shares, if any, of the
Obligations with respect to which such payment was received.
(b) Except to the extent that this Agreement provides for
payments to be allocated to the Lenders under a particular Tranche or with
particular Obligations, in each case prior to the occurrence of a Sharing
Event, if any Lender (a "Benefitted Lender") shall at any time receive any
payment of all or part of its Loans or the Letter of Credit Obligations owing
to it, or interest thereon, or receive any collateral in respect thereof
(whether voluntarily or involuntarily, by set-off, pursuant to events or
proceedings of the nature referred to in Section 10.05, or otherwise), in a
greater proportion than any such payment to or collateral received by any other
Lender, if any, in respect of such other Lender's Loans or the Letter of Credit
Obligations owing to such other Lender, or interest thereon, such Benefitted
Lenders shall purchase for cash from the other Lenders a participating interest
in such portion of each such other Lender's Loans and/or Letter of Credit
Outstandings owning to each such other Lenders, or shall provide such other
Lenders with the benefits of any such collateral, or the proceeds thereof, as
shall be necessary to cause such Benefitted Lender to share the excess payment
or benefits of such collateral or proceeds ratably with each of the Lenders;
provided, however, that if all or any portion of such excess payment or
benefits is thereafter recovered from such Benefitted Lender, such purchase
shall be rescinded, and the purchase price and benefits returned, to the extent
of such recovery, but without interest.
13.07 Calculations; Computations. (a) The financial
statements to be furnished to the Lenders pursuant hereto shall be made and
prepared in accordance with GAAP, consistently applied throughout the periods
involved (except as set forth in the notes thereto or as otherwise disclosed in
writing by the Borrowers to the Lenders).
(b) Notwithstanding anything to the contrary contained in
clause (a) of this Section 13.07, (i) for purposes of determining compliance
with any incurrence tests set forth in Sections 8 and/or 9 (excluding Sections
9.08 through 9.11, inclusive), any amounts so incurred or expended (to the
extent incurred or expended in a currency other than Dollars) shall be
converted into Dollars on the basis of the Dollar Equivalent of the respective
amounts as in effect on the date of such incurrence or expenditure under any
provision of any such Section that has an aggregate Dollar limitation provided
for therein (and to the extent the respective incurrence test regulates the
aggregate amount outstanding at any time and it is expressed in terms of
Dollars, all outstanding amounts originally incurred or spent in currencies
other than Dollars shall be converted into Dollars on the basis of the Dollar
Equivalent of the respective amounts as in effect on the date any new
incurrence or expenditures made under any provision of any such Section that
regulates the Dollar amount outstanding at any time) and (ii) except as
expressly otherwise
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provided herein, all calculations determining compliance with Sections 4.02, 8
and/or 9 and the financial terms as used herein shall be made in accordance
with GAAP.
(c) All computations of interest, Commitment Commission
and Fees hereunder shall be made on the basis of a year of 360 days (or 365 or
366 days, as the case may be, in the case of interest on Base Rate Loans and
Canadian Prime Rate Loans) for the actual number of days (including the first
day but excluding the last day) occurring in the period for which such
interest, Commitment Commission or Fees are payable.
(d) For purposes of the Interest Act (Canada), (i)
whenever any interest or fee under this Agreement is calculated using a rate
based on a year of 360 days or 365 days, as the case may be, the rate
determined pursuant to such calculation, when expressed as an annual rate, is
equivalent to (x) the applicable rate based on a year of 360 days or 365 days,
as the case may be, (y) multiplied by the actual number of days in the calendar
year in which the period for which such interest or fee is payable (or
compounded) ends, and (z) divided by 360 or 365, as the case may be; (ii) the
principle of deemed reinvestment of interest does not apply to any interest
calculation under this Agreement; and (iii) the rates of interest stipulated in
this Agreement are intended to be nominal rates and not effective rates or
yields.
13.08 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE;
WAIVER OF JURY TRIAL. (a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS
(EXCEPT, IN THE CASE OF OTHER CREDIT DOCUMENTS, AS SPECIFICALLY OTHERWISE
PROVIDED THEREIN) AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND
THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE
STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW
YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH BORROWER HEREBY
IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH BORROWER
HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL
JURISDICTION OVER SUCH BORROWER, AND AGREES NOT TO PLEAD OR CLAIM, IN ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENTS BROUGHT IN ANY OF THE AFOREMENTIONED COURTS, THAT SUCH COURTS LACK
PERSONAL JURISDICTION OVER SUCH BORROWER. EACH BORROWER FURTHER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN
ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR
CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH BORROWER AT ITS ADDRESS SET FORTH
OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER
SUCH MAILING. EACH BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH
SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR
CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT
DOCUMENT
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THAT SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN
SHALL AFFECT THE RIGHT OF ANY AGENT, ANY LENDER OR THE HOLDER OF ANY NOTE TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY BORROWER IN ANY OTHER
JURISDICTION.
(b) EACH BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE
AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN
CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD
OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
(c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
13.09 Counterparts. This Agreement may be executed in any
number of counterparts and by the different parties hereto on separate
counterparts, each of which when so executed and delivered shall be an
original, but all of which shall together constitute one and the same
instrument. A set of counterparts executed by all the parties hereto shall be
lodged with the Parent Companies and the Paying Agent.
13.10 Effectiveness. This Agreement shall become effective
on the date (the "Effective Date") on which each Borrower, each Agent and each
of the Lenders shall have signed a counterpart hereof (whether the same or
different counterparts) and shall have delivered the same to the Paying Agent
at the Notice Office or, in the case of the Lenders, shall have given to the
Paying Agent telephonic (confirmed in writing), written or telex notice
(actually received) at such office that the same has been signed and mailed to
it. The Paying Agent shall give the Parent Companies and each Lender prompt
written notice of the occurrence of the Effective Date.
13.11 Headings Descriptive. The headings of the several
sections and subsections of this Agreement are inserted for convenience only
and shall not in any way affect the meaning or construction of any provision of
this Agreement.
13.12 Amendment or Waiver; etc. (a) Subject to the
provisions of following clauses (c) and (d), neither this Agreement nor any
other Credit Document nor any terms hereof or thereof may be changed, waived,
discharged or terminated unless such change, waiver, discharge or termination
is in writing signed by the respective Credit Parties party thereto and the
Required Lenders (except that additional parties may be added to, and
Subsidiaries of the Borrowers may be released from, the Guaranty and Pledge and
Security Agreement in accordance with the provisions thereof, without the
consent of the other Credit Parties party thereto or the
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Required Lenders), provided that no such change, waiver, discharge or
termination shall, without the consent of each Lender (other than a Defaulting
Lender) with Obligations being directly modified, (i) extend the final
scheduled maturity of any Loan or Note or extend the stated expiration date of
any Letter of Credit beyond the Revolving Loan Maturity Date, or reduce the
rate or extend the time of payment of interest or Fees thereon (including,
without limitation, any such reductions as a result of modifications to the
definitions of Applicable Commitment Commission Percentage or Applicable
Margin contained herein) or reduce the principal amount thereof (except to the
extent repaid in cash) (it being understood that any amendment or modification
to the financial definitions in this Agreement or to Section 13.07(a) or (b)
shall not constitute a reduction in any rate of interest or fees for purposes
of this clause (i), so long as the primary purpose of the respective amendments
or modifications to the financial definitions was not to reduce the interest or
Fees payable hereunder), (ii) release or terminate any Guaranty provided by
either Parent Company, SLP RLP, SLC OLP or ITT, (iii) release all or
substantially all of the Collateral (except as expressly provided in the Credit
Documents) under the Pledge and Security Agreement, (iv) amend, modify or waive
any provision of this Section 13.12 (except for technical amendments with
respect to additional extensions of credit pursuant to this Agreement which
afford the protections set forth in the proviso below to such additional
extensions of credit), (v) reduce the percentage specified in the definition of
Required Lenders (it being understood that, with the consent of the Required
Lenders, additional extensions of credit pursuant to this Agreement may be
included in the determination of the Required Lenders on substantially the same
basis as the extensions of Term Loans and Revolving Loan Commitments are
included on the Effective Date) or (vi) consent to the assignment or transfer
by any Borrower of any of its rights and obligations under this Agreement;
provided further, that, in addition to the consent of the Required Lenders
required above, no such change, waiver, discharge or termination shall (s)
increase the Commitments (or sub-commitments) of any Lender over the amount
thereof then in effect without the consent of such Lender (it being understood
that waivers or modifications of conditions precedent, covenants, Defaults or
Events of Default or of a mandatory reduction in the Total Commitment shall not
constitute an increase of the Commitment (or sub-commitment) of any Lender, and
that an increase in the available portion of any Commitment (or sub-commitment)
of any Lender shall not constitute an increase of the Commitment (or
sub-commitment) of such Lender), (t) without the consent of each Issuing Bank,
amend, modify or waive any provision of Section 2 or alter its rights or
obligations with respect to Letters of Credit, (u) without the consent of each
Swingline Lender, alter its rights or obligations with respect to Swingline
Loans, (v) without the consent of the respective Agent, amend, modify or waive
any provision of Section 12 or any other provision as same relates to the
rights or obligations of such Agent, (w) without the consent of the Collateral
Agent, amend, modify or waive any provision relating to the rights or
obligations of the Collateral Agent, (x) except in cases where additional
extensions of term loans are being afforded substantially the same treatment
afforded to the Term Loans pursuant to this Agreement as originally in effect,
without the consent of the Majority Lenders of each Tranche which is being
allocated a lesser prepayment, repayment or commitment reduction as a result of
the actions described below (or without the consent of the Majority Lenders of
each Tranche in the case of an amendment to the definition of Majority
Lenders), amend the definition of Majority Lenders or alter the required
application of any prepayments or repayments (or commitment reductions), as
between the various Tranches, pursuant to Section 4.01 or 4.02 (excluding
Section 4.02(b)) (although the Required Lenders may waive, in whole or in part,
any such prepayment,
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repayment or commitment reduction, so long as the application, as amongst the
various Tranches, of any such prepayment, repayment or commitment reduction
which is still required to be made is not altered), (y) without the consent of
the Supermajority Lenders (for purposes of this clause (y), treating all
Tranches outstanding pursuant to this Agreement as a single Tranche), increase
the amount of the Total Commitment to an amount that exceeds the Total
Commitment as in effect on the Initial Borrowing Date by more than 25% or (z)
without the consent of the Supermajority Lenders of the Tranche II Term Loans,
waive, or decrease the amount of, any, Tranche II Scheduled Repayment or extend
the date on which any Tranche II Scheduled Repayment is required to be made.
(b) If, in connection with any proposed change, waiver,
discharge or termination to any of the provisions of this Agreement as
contemplated by clauses (i) through (vi), inclusive, of the first proviso to
Section 13.12(a), the consent of the Required Lenders is obtained but the
consent of one or more of such other Lenders whose consent is required is not
obtained, then the Parent Companies shall have the right, so long as all
non-consenting Lenders whose individual consent is required are treated as
described below, to replace each such non-consenting Lender or Lenders with
one or more Replacement Lenders pursuant to Section 1.14 so long as at the time
of such replacement, each such Replacement Lender consents to the proposed
change, waiver, discharge or termination, provided further, that in any event
the Parent Companies shall not have the right to replace a Lender solely as a
result of the exercise of such Lender's rights (and the withholding of any
required consent by such Lender) pursuant to the second proviso to Section
13.12(a).
(c) At any time and from time to time after the Effective
Date, one or more Persons may become Alternate Currency Revolving Loan
Borrowers in accordance with the provisions of Section 6.06 and the definition
of Alternate Currency Revolving Loan Borrower contained herein. Upon the
satisfaction of such provisions, such Person shall constitute an Alternate
Currency Revolving Loan Borrower and a Borrower party to this Agreement,
without any further actions taken by any Persons. Furthermore, the Parent
Companies may, at any time and from time to time, by written notice to the
Paying Agent, remove any Alternate Currency Revolving Loan Borrower as such an
Alternate Currency Revolving Loan Borrower on a prospective basis; provided
that at the time of such removal there are no outstanding Alternate Currency
Revolving Loans or to such Alternate Currency Revolving Loan Borrower, and all
other amounts then due and payable by such Alternate Currency Revolving Loan
Borrower have been paid in full. Any removal of a Person as an Alternate
Currency Revolving Loan Borrower shall have no effect on any obligations of
such Person as an Alternate Currency Revolving Loan Borrower hereunder in
respect of Obligations previously incurred by it hereunder or with respect to
any of the indemnities set forth herein (including, without limitation, in
Sections 1.11, 1.12, 1.16(b), 2.06, 4.04, 12.06 and 13.01), which shall survive
the removal of such Person as an Alternate Currency Revolving Loan Borrower.
Furthermore, any such removal shall have no effect on the obligations, if any,
if such Person as a Guarantor or as a party to the Pledge and Security
Agreement (in each case, unless otherwise expressly provided in accordance with
the terms of the respective such Credit Documents).
(d) From time to time after the Effective Date, if, with the
consent of the Parent Companies and the Lead Agents, one or more Lenders is
willing (at its sole discretion), to
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increase the amount of its Alternate Currency Revolving Loan Sub-Commitment
with respect to one or more Alternate Currencies, then the Alternate Currency
Revolving Loan Sub-Commitments of such Lender may be so increased as agreed by
it (pursuant to a written agreement entered into, and executed by, the
respective Lender, the Lead Agents and the Parent Companies); provided that (x)
to the extent the Alternate Currency Revolving Loan Sub-Commitments of the
respective Lender are increased, the Non-Alternate Currency Revolving Loan
Sub-Commitment of the respective Lender shall be decreased, (y) arrangements
satisfactory to the Lead Agents shall be made so that, after giving effect to
the adjustment to the respective Lender's Alternate Currency Revolving Loan
Sub-Commitments, such Lender participates in all then outstanding extensions of
credit on the same basis as it would otherwise have so participated if it had
originally had Alternate Currency Revolving Loan Sub-Commitments and a related
Non-Alternate Currency Revolving Loan Sub-Commitment as same will be in effect
after giving effect to the changes contemplated by this clause (d) and (z)
without the prior written consent of the Required Lenders, no increase to any
Alternate Currency Revolving Loan Sub-Commitment of any Lender shall be made
pursuant to this clause (d) if, immediately after giving effect thereto (i) the
sum of the then outstanding Canadian Dollar Revolving Loan Sub-Commitments of
all the Alternate Currency Lenders would exceed $200,000,000, (ii) the sum of
the French Franc Revolving Loan Sub-Commitments of all Alternate Currency
Lenders at such time would exceed $125,000,000 or (iii) the sum of the Pounds
Sterling Revolving Loan Sub-Commitments of all the Alternate Currency Lenders
at such time would exceed $100,000,000.
13.13 Survival. All indemnities set forth herein including,
without limitation, in Sections 1.11, 1.12, 1.16(b), 2.06, 4.04, 12.06 and
13.01 shall survive the execution, delivery and termination of this Agreement
and the Notes and the making and repayment of the Obligations (it being
understood and agreed that all such indemnities shall also survive as to any
Lender that has assigned all of its obligations hereunder pursuant to Section
13.04(b) with respect to the period of time in which such Lender was a "Lender"
hereunder).
13.14 Domicile of Loans. Each Lender may transfer and carry
its Loans at, to or for the account of any office, Subsidiary or Affiliate of
such Lender. Notwithstanding anything to the contrary contained herein, to the
extent that a transfer of Loans pursuant to this Section 13.14 would, at the
time of such transfer, result in increased costs under Section 1.11, 1.12,
1.16(b) 2.06 or 4.04 in excess of those being charged by the respective Lender
prior to such transfer, then the Borrowers shall not be obligated to pay such
excess increased costs (although the Borrowers, in accordance with and pursuant
to the other provisions of this Agreement, shall be obligated to pay the costs
which would apply in the absence of such designation and any subsequent
increased costs of the type described above resulting from changes after the
date of the respective transfer).
13.15 Register. Each Borrower hereby designates the Paying Agent to serve as
such Borrower's agent, solely for purposes of this Section 13.15, to maintain a
register (the "Register") on which it will record the Commitments from time to
time of each of the Lenders, the Loans made by each of the Lenders and each
repayment in respect of the principal amount of the Loans of each Lender.
Failure to make any such recordation, or any error in such recordation, shall
not affect the respective Borrower's obligations in respect of such Loans.
With respect to any Lender, the transfer of the Commitments of such Lender and
the rights to the principal of, and interest on, any Loan made pursuant to such
Commitments shall not be effective until such transfer is recorded on
- 168 -
175
the Register maintained by the Paying Agent with respect to ownership of such
Commitments and Loans and prior to such recordation all amounts owing to the
transferor with respect to such Commitments and Loans shall remain owing to the
transferor. The registration of assignment or transfer of all or part of any
Commitments and Loans shall be recorded by the Paying Agent on the Register
only upon the acceptance by the Paying Agent of a properly executed and
delivered Assignment and Assumption Agreement pursuant to Section 13.04(b).
Coincident with the delivery of such an Assignment and Assumption Agreement to
the Paying Agent for acceptance and registration of assignment or transfer of
all or part of a Loan, or as soon thereafter as practicable, the assigning or
transferor Lender shall surrender the Note evidencing such Loan, and thereupon
one or more new Notes in the same aggregate principal amount shall be issued to
the assigning or transferor Lender and/or the new Lender. Each Borrower
jointly and severally agrees to indemnify the Paying Agent from and against any
and all losses, claims, damages and liabilities of whatsoever nature which may
be imposed on, asserted against or incurred by the Paying Agent in performing
its duties under this Section 13.15. It is understood and agreed that at any
time during the period from the Initial Borrowing Date to and including the
date which occurs six months after the Initial Borrowing Date, but in any event
no more than once a week, any Lead Agent shall have the right to request that
the Paying Agent deliver a copy of the Register to such Lead Agent and the
Paying Agent agrees to deliver a copy of the Register to such Lead Agent
promptly after receipt of such request.
13.16 Judgment Currency. (a) The Credit Parties'
obligations hereunder and under the other Credit Documents to make payments in
the respective Applicable Currency (the "Obligation Currency") shall not be
discharged or satisfied by any tender or recovery pursuant to any judgment
expressed in or converted into any currency other than the Obligation Currency,
except to the extent that such tender or recovery results in the effective
receipt by the Paying Agent, the Collateral Agent or the respective Lender of
the full amount of the Obligation Currency expressed to be payable to the
Paying Agent, the Collateral Agent or such Lender under this Agreement or the
other Credit Documents. If for the purpose of obtaining or enforcing judgment
against any Credit Party in any court or in any jurisdiction, it becomes
necessary to convert into or from any currency other than the Obligation
Currency (such other currency being hereinafter referred to as the "Judgment
Currency") an amount due in the Obligation Currency, the conversion shall be
made, at the Alternate Currency Equivalent or the Dollar Equivalent thereof, as
the case may be, and, in the case of other currencies, the rate of exchange (as
quoted by the Paying Agent or if the Paying Agent does not quote a rate of
exchange on such currency, by a known dealer in such currency designated by the
Paying Agent) determined, in each case, as of the day immediately preceding the
day on which the judgment is given (such Business Day being hereinafter
referred to as the "Judgment Currency Conversion Date").
(b) If there is a change in the rate of exchange
prevailing between the Judgment Currency Conversion Date and the date of actual
payment of the amount due, the Borrowers covenant and agree to pay, or cause to
be paid, such additional amounts, if any (but in any event not a lesser amount)
as may be necessary to ensure that the amount paid in the Judgment Currency,
when converted at the rate of exchange prevailing on the date of payment, will
produce the amount of the Obligation Currency which could have been purchased
with the amount of Judgment Currency stipulated in the judgment or judicial
award at the rate or exchange prevailing on the Judgment Currency Conversion
Date.
- 169 -
176
(c) For purposes of determining the Alternate Currency
Equivalent or the Dollar Equivalent or any other rate of exchange for this
Section, such amounts shall include any premium and costs payable in connection
with the purchase of the Obligation Currency.
13.17 Confidentiality. (a) Subject to the provisions of
clause (b) of this Section 13.17, each Lender agrees that it will use its
reasonable best efforts not to disclose without the prior consent of the Parent
Companies (other than to its employees, auditors, advisors or counsel or to
another Lender if the Lender or such Lender's holding or parent company in its
sole discretion determines that any such party should have access to such
information, provided such Persons shall be subject to the provisions of this
Section 13.17 to the same extent as such Lender) any information with respect
to the Parent Companies or any of their Subsidiaries which is now or in the
future furnished pursuant to this Agreement or any other Credit Document,
provided that any Lender may disclose any such information (a) as has become
generally available to the public other than by virtue of a breach of this
Section by such Lender, (b) to the extent such information was legally in
possession of such Lender prior to its receipt from or on behalf of the Parent
Company or any of their Subsidiaries and was from a source not known to such
Lender to be (x) bound by a confidentiality agreement with either Parent
Company or (y) otherwise prohibited from transmitting such information to such
Lender by a contractual, legal or fiduciary obligation, (c) such information
becomes available to such Lender from a source other than the Parent Companies
or any of their Subsidiaries and such source is not known to such Lender to be
(x) bound by a confidentiality agreement with either Parent Company or (y)
otherwise prohibited from transmitting such information to such Lender by a
contractual, legal or fiduciary obligation, (d) as may be required or
reasonably appropriate in any report, statement or testimony submitted to, or
in response to a request from, any Gaming Authority or any municipal, state or
Federal regulatory body having or claiming to have jurisdiction over such
Lender or to the Federal Reserve Board, the Federal Deposit Insurance
Corporation, the NAIC or similar organizations (whether in the United States or
elsewhere) or their successors, (e) as may be required or reasonably
appropriate in response to any summons or subpoena or in connection with any
litigation, (f) in order to comply with any Requirement of Law applicable to
such Lender, (g) to any Agent or the Collateral Agent or any other Lender, (h)
to any direct or indirect contractual counterparties in swap agreements or such
contractual counterparties' professional advisors; provided that such
contractual counterparty or professional advisor to such contractual
counterparty agrees in writing to keep such information confidential to the
same extent required of the Lenders thereunder, and (i) to any prospective or
actual transferee or participant in connection with any contemplated transfer
or participation of any of the Notes or Commitments or any interest therein by
such Lender, provided, that such prospective transferee shall have agreed to be
subject to the provisions of this Section 13.17(a).
(b) Each of the Borrowers hereby acknowledge and agree
that each Lender may, in connection with the Transaction or the participation
of such Lender pursuant to this Agreement and the other Credit Documents, share
with any of its affiliates any information related to the Parent Companies or
any of their Subsidiaries (including, without limitation, any nonpublic
customer information regarding the creditworthiness of the Parent Companies and
their Subsidiaries, provided such Persons shall be subject to the provisions of
this Section 13.17 to the same extent as such Lender).
- 170 -
177
13.18 Recourse. Each Lender acknowledges and agrees that the
name "Starwood Hotels & Resorts" is a designation of Starwood REIT and its
Trustees (as Trustees but not personally) under a Declaration of Trust dated
August 25, 1969, as amended and restated as of June 6, 1988, as further amended
on February 1, 1995 and as further amended on June 19, 1995 and as the same may
be further amended from time to time, and all persons dealing with Starwood
REIT shall look solely to Starwood REIT's assets for the enforcement of any
claims against Starwood REIT, as the Trustees, officers, agents and security
holders of Starwood REIT assume no personal liability for obligations entered
into on behalf of Starwood REIT, and their respective individual assets shall
not be subject to the claims of any person relating to such obligations.
13.19 Post-Closing Actions. (a) The Parent Companies hereby
agree to, and to cause their Subsidiaries to, use their best efforts to obtain
all necessary consents and waivers required to eliminate any conflicts or
defaults in respect of the Excluded Debt as soon as reasonably practicable.
Notwithstanding anything to the contrary contained elsewhere in this Agreement,
to the extent any Excluded Debt remains outstanding on the 60th day after the
Initial Borrowing Date in respect of which any such conflicts or defaults have
not been cured or waived, at all times from and after the 60th day following
the Initial Borrowing Date, the Total Unutilized Revolving Loan Commitment
shall at all times thereafter be required to be maintained in an amount which
is equal to, or in excess of, the aggregate principal amount of all such
Excluded Debt at such time outstanding where any conflicts or defaults have not
been so cured or waived.
(b) Notwithstanding anything to the contrary contained in
this Agreement, the outstanding shares of Capital Stock of ITT MSG, Inc. shall
not be required to be pledged pursuant to the Pledge and Security Agreement so
long as there are any consents or waivers required that have not been obtained.
SECTION 14. Nature of Borrowers' Obligations.
14.01. Nature of Obligations. Notwithstanding anything to
the contrary contained elsewhere in this Agreement, it is understood and agreed
by the various parties to this Agreement that (i) all Obligations to repay
principal of, interest on, and all other amounts with respect to, all Tranche I
Term Loans (including, without limitation, all fees, indemnities, taxes and
other Obligations in connection therewith or in connection with the related
Tranche I Term Loan Commitments) shall constitute the joint and several
obligations of the Corporation and the ITT Borrower, (ii) all Obligations to
repay principal of, interest on, and all other amounts with respect to, all
Tranche II Term Loans (including, without limitation, all fees, indemnities,
taxes and other Obligations in connection therewith or in connection with the
related Tranche II Term Loan Commitments) shall constitute the joint and
several obligations of the Corporation and the ITT Borrower, (iii) all
Obligations to repay principal of, interest on, and all other amounts with
respect to, outstanding Dollar Revolving Loans, Swingline Loans, Competitive
Bid Loans, Letter of Credit Outstandings and Alternate Currency Revolving Loans
extended to the Alternate Currency Revolving Loan Borrower specified in clause
(i) of the definition thereof (including, without limitation, all fees,
indemnities, taxes and other Obligations in connection therewith or in
connection with the related Revolving Loan Commitments) shall constitute the
joint and several obligations of the respective Dollar Revolving Loan Borrowers
described in clause (i) or (ii), as the case may be, of the definition of
Dollar Revolving Loan Borrowers (or shall constitute the joint and
- 171 -
178
several obligations of all Dollar Revolving Loan Borrowers in the case of
Commitment Commission and other amounts which relate to the Revolving Loan
Commitments generally and not to specific outstanding extensions of credit
thereunder) and (iv) all Obligations to repay principal of (including, without
limitation the Face Amount of Bankers' Acceptance Loans), interest on, and all
other amounts with respect to, any outstanding Alternate Currency Revolving
Loan (including, without limitation, all fees, indemnities, taxes and other
Obligations in connection therewith) shall constitute the direct obligations of
the respective Alternate Currency Revolving Loan Borrower. In addition to the
direct obligations of the respective Borrowers with respect to Obligations as
described above, all such Obligations shall be guaranteed pursuant to, and in
accordance with the terms of, the Guaranty. As used herein, the term
"Co-Borrowers" means, with respect to any of the Obligations as described in
clauses (i) through (iv) of the first sentence of this Section 14.01
(collectively, "Co-Borrower Obligations"), the respective Persons which are
jointly and severally obligated as the respective Borrower of such Tranche (or,
in the case of Revolving Loan Commitment, the respective Obligations as
described in clause (iv) of the first sentence of this Section 14.01). Each
Borrower and each Co-Borrower acknowledges and agrees that it is receiving
direct benefits as a result of the extensions of credit to them hereunder, and
that the Lenders may proceed against any or all the respective Co-Borrowers (or
the respective Borrower) with respect to any Co- Borrower Obligations hereunder
for the payment in full thereof.
14.02. Independent Obligation. With respect to Co-Borrower
Obligations, the obligations of each Co- Borrower with respect thereto are
independent of the obligations of the other Co-Borrower or any other guarantor,
and a separate action or actions may be brought and prosecuted against each
Co-Borrower, whether or not the other Co-Borrower or any other guarantor is
joined in any such action or actions. Each Co-Borrower waives, to the fullest
extent permitted by law, the benefit of any statute of limitations affecting
its liability hereunder or the enforcement thereof. Any payment by either
Co-Borrower or other circumstance which operates to toll any statute of
limitations as to such Co-Borrower shall, to the fullest extent permitted by
law, operate to toll the statute of limitations as to each Co-Borrower.
14.03. Authorization. With respect to the Co-Borrower
Obligations, each of the respective Co- Borrowers authorizes the Agents and the
Lenders without notice or demand (except as shall be required by applicable
statute and cannot be waived), and without affecting or impairing its liability
hereunder, from time to time to:
(a) exercise or refrain from exercising any rights against
the other Co-Borrower or any guarantor or others or otherwise act or
refrain from acting;
(b) release or substitute any other Co-Borrower, endorsers,
guarantors or other obligors;
(c) settle or compromise any of the Obligations of the other
Co-Borrower or any other Credit Party, any security therefor or any
liability (including any of those hereunder) incurred directly or
indirectly in respect thereof or hereof, and may subordinate the
payment of all or any part thereof to the payment of any liability
(whether due or not) of any Co-Borrower to its creditors other than
the Lenders;
- 172 -
179
(d) apply any sums paid by the other Co-Borrower or any other
Person, howsoever realized to any liability or liabilities of such
Co-Borrower or other Person regardless of what liability or
liabilities of such Co-Borrower or other Person remain unpaid; and/or
(e) consent to or waive any breach of, or act, omission or
default under, this Agreement or any of the instruments or agreements
referred to herein, or otherwise, by the other Co-Borrower or any
other Person.
14.04. Reliance. It is not necessary for any Agent or any
other Lender to inquire into the capacity or powers of any Co-Borrower or any
of its Subsidiaries or the officers, directors, partners or agent acting or
purporting to act on its behalf, and any Obligations made or created in
reliance upon the professed exercise of such powers shall constitute the
obligations of the respective Borrower (or Co-Borrowers) hereunder.
14.05. Contribution; Subrogation. No Co-Borrower shall have
any rights of contribution or subrogation with respect to the other Co-Borrower
as a result of payments made by it hereunder, in each case unless and until all
Obligations have been repaid in full.
14.06. Waiver. Each Co-Borrower waives any right to require
any Agent or the other Lenders to (i) proceed against the other Co-Borrower,
any guarantor or any other party, (ii) proceed against or exhaust any security
held from other Co-Borrower, any guarantor or any other party or (iii) pursue
any other remedy in any Agent's or the Lenders' power whatsoever. Each
Co-Borrower waives any defense based on or arising out of any defense of the
other Co- Borrower, any guarantor or any other party other than payment in full
in cash of the respective Obligations, including, without limitation, any
defense based on or arising out of the disability of the other Co-Borrower, any
guarantor or any other party, or the unenforceability of the Obligations or any
part thereof from any cause, or the cessation from any cause of the liability
of the other Co-Borrower, in each case other than as a result of the payment in
full in cash of the respective Obligations. The Agents and the Lenders may, at
their election, foreclose on any security held by any Agent or the Secured
Creditors by one or more judicial or non-judicial sales, whether or not every
aspect of any such sale is commercially reasonable, or exercise any other right
or remedy any Agent and the other Lenders may have against any Co-Borrower or
any other party, or any security, without affecting or impairing in any way the
liability of either Co-Borrower hereunder except to the extent the respective
Obligations have been paid in full in cash. Each Co-Borrower waives, to the
fullest extent permitted by law, any defense arising out of any such election
by any Agent and the other Lenders even though such election operates to impair
or extinguish any right of reimbursement or subrogation or other right or
remedy of such Co-Borrower against the other Co-Borrower or any other guarantor
or party or any security.
- 173 -
180
IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Agreement as of the date first
above written.
Address:
--------
0000 Xxxx Xxxxxxxxx Xxxx STARWOOD HOTELS & RESORTS
Xxxxx 000
Xxxxxxx, Xxxxxxx 00000
By:
---------------------------------
Attention: Xxxxxx X. Xxxxx Name: Xxxxxx X. Xxxxx
Telephone No.: (000) 000-0000 Title: Senior Vice President and
Telecopier No.: (000) 000-0000 Chief Financial Officer
0000 Xxxx Xxxxxxxxx Xxxx SLT REALTY LIMITED PARTNERSHIP
Suite 410 a Delaware limited partnership
Xxxxxxx, Xxxxxxx 00000
By: Starwood Hotels & Resorts, a Maryland real
Attention: Xxxxxx X. Xxxxx estate investment trust, its general partner
Telephone No.: (000) 000-0000
Telecopier No.: (000) 000-0000
By:
---------------------------------
Name: Xxxxxx X. Xxxxx
Title: Senior Vice President and
Chief Financial Officer
0000 Xxxx Xxxxxxxxx Xxxx STARWOOD HOTELS & RESORTS
Suite 400 WORLDWIDE, INC.
Xxxxxxx, Xxxxxxx 00000
By:
Attention: Xxxx X. Xxxxxxx ----------------------------------
Telephone No.: (000) 000-0000 Name: Xxxx X. Xxxxxxx
Telecopier No.: (000) 000-0000 Title: Vice President
0000 Xxxx Xxxxxxxxx Xxxx CHESS ACQUISITION CORP.
Xxxxx 000
Xxxxxxx, Xxxxxxx 00000
By:
---------------------------------
Attention: Xxxx X. Xxxxxxx Name: Xxxx X. Xxxxxxx
Telephone No.: (000) 000-0000 Title: Vice President
Telecopier No.: (000) 000-0000
181
BANKERS TRUST COMPANY,
Individually and as Administrative Agent
and as Paying Agent
By:
--------------------------------------
Name: Xxxxx X. Xxxxxxx
Title: Principal
182
THE CHASE MANHATTAN BANK,
Individually and as Administrative Agent
By:
--------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Vice President
183
XXXXXX COMMERCIAL PAPER INC.,
Individually and as Syndication Agent
By:
--------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Authorized Signatory
184
BANK OF MONTREAL,
Individually and as Syndication Agent
By:
--------------------------------------
Name:
Title:
000
XXXXXXX XXXXX
XXX XXXX CORPORATION
By:
--------------------------------------
Name:
Title:
186
ACM CREDIT OPPORTUNITIES MASTER FUND
By: Alliance Capital Management L.P.,
its Investment Advisor
By: Alliance Capital Management
Corporation, its General Partner
By:
-----------------------------------
Name:
Title:
ALLIANCE CAPITAL MANAGEMENT L.P., AS
MANAGER ON BEHALF OF ALLIANCE CAPITAL
FUNDING, L.L.C.
By: Alliance Capital Management
Corporation, General Partner of
Alliance Capital Management L.P.
By:
-----------------------------------
Name:
Title:
AMERICAN LIFE & CASUALITY INSURANCE
COMPANY
By:
-----------------------------------
Name:
Title:
BANK OF MONTREAL
By:
-----------------------------------
Name:
Title:
000
XXXXX XXXXXXXX DI MILANO
By:
-----------------------------------
Name:
Title:
By:
-----------------------------------
Name:
Title:
BANKBOSTON N.A.
By:
-----------------------------------
Name:
Title:
BANK LEUMI
By:
-----------------------------------
Name:
Title:
BANK OF AMERICA NT&SA
By:
-----------------------------------
Name:
Title:
BANK OF HAWAII
By:
-----------------------------------
Name:
Title:
THE BANK OF NOVA SCOTIA,
NEW YORK AGENCY
By:
-----------------------------------
Name:
Title:
000
XXX XXXX XX XXXXX-XXXXXXXXXX,
XXXXXXX, XXX XXXX BRANCH
By:
-----------------------------------
Name:
Title:
BANK POLSKA KASA OPIEKI S.A. -
PEKAO S.A. GROUP, NEW YORK
BRANCH
By:
-----------------------------------
Name:
Title:
BANQUE PARIBAS
By:
-----------------------------------
Name:
Title:
By:
-----------------------------------
Name:
Title:
BEAR XXXXXXX INVESTMENT
PRODUCTS INC.
By:
-----------------------------------
Name:
Title:
BARCLAYS BANK PLC
By:
-----------------------------------
Name:
Title:
189
BLACK DIAMOND CAPITAL
MANAGEMENT, L.L.C.
By:
---------------------------
Name:
Title:
XXXXX XXX COMMERCIAL BANK,
LTD., NEW YORK BRANCH
By:
---------------------------
Name:
Title:
XXXXX XXXX BANK CO., LTD. NEW
YORK AGENCY
By:
---------------------------
Name:
Title:
CIBC INC.
By:
---------------------------
Name:
Title:
THE COMMONWEALTH BANK OF
AUSTRALIA
By:
---------------------------
Name:
Title:
190
COMMONWEALTH LIFE INSURANCE
COMPANY
By:
---------------------------
Name:
Title:
COMPAGNIE FINANCIERE DE CIC ET DE
L'UNION EUROPEENNE
By:
---------------------------
Name:
Title:
By:
---------------------------
Name:
Title:
CREDIT AGRICOLE INDOSUEZ
By:
---------------------------
Name:
Title:
By:
---------------------------
Name:
Title:
CREDIT LYONNAIS, NEW YORK
BRANCH
By:
---------------------------
Name:
Title:
191
CREDIT SUISSE FIRST BOSTON
By:
---------------------------
Name:
Title:
By:
---------------------------
Name:
Title:
CREDITO ITALIANO
By:
---------------------------
Name:
Title:
By:
---------------------------
Name:
Title:
DEUTSCHE BANK AG NEW YORK
AND/OR CAYMAN ISLANDS BRANCH
By:
---------------------------
Name:
Title:
By:
---------------------------
Name:
Title:
ERSTE BANK DER OESTERREICHISCHEN
SPARKASSEN AG
By:
---------------------------
Name:
192
Title:
By:
---------------------------
Name:
Title:
FIRST COMMERCIAL BANK
By:
---------------------------
Name:
Title:
FIRST DOMINION CAPITAL
By:
---------------------------
Name:
Title:
FIRST NATIONAL BANK OF COMMERCE
By:
---------------------------
Name:
Title:
FIRST SECURITY BANK, N.A.
By:
---------------------------
Name:
Title:
FLEET BANK, N.A.
By:
---------------------------
Name:
Title:
GENERAL ELECTRIC CAPITAL
CORPORATION
193
By:
---------------------------
Name:
Title:
XXXXXXX XXXXX CREDIT PARTNERS L.P.
By:
---------------------------
Name:
Title:
GULF INTERNATIONAL BANK B.S.C.
By:
---------------------------
Name:
Title:
XXX XXX COMMERCIAL BANK, LTD.
NEW YORK AGENCY
By:
---------------------------
Name:
Title:
THE INDUSTRIAL BANK OF JAPAN,
LIMITED, NEW YORK BRANCH
By:
---------------------------
Name:
Title:
ISTITUTO BANCARIO SAN PAOLO DI
TORINO S.P.A.
By:
---------------------------
Name:
Title:
194
By:
---------------------------
Name:
Title:
KZH HOLDING CORPORATION III
By:
---------------------------
Name:
Title:
KZH - CRESCENT-2 CORPORATION
By:
---------------------------
Name:
Title:
KZH-ING-1 CORPORATION
By:
---------------------------
Name:
Title:
KZH-ING-2 CORPORATION
By:
---------------------------
Name:
Title:
LAND BANK OF TAIWAN, LOS ANGELES
BRANCH
By:
---------------------------
Name:
Title:
XXXXXX COMMERCIAL PAPER INC.
By:
---------------------------
Name:
Title:
195
LLOYDS BANK
By:
---------------------------
Name:
Title:
MITSUBISHI TRUST & BANKING
CORPORATION
By:
---------------------------
Name:
Title:
XXXXXX XXXXXXX SENIOR FUNDING,
INC.
By:
---------------------------
Name:
Title:
NATIONSBANK N.A.
By:
---------------------------
Name:
Title:
OAK HILL SECURITIES FUND, L.P.
By:
---------------------------
Name:
Title:
196
OCTAGON CREDIT INVESTORS LOAN
PORTFOLIO (A UNIT OF THE CHASE
MANHATTAN BANK)
By:
---------------------------
Name:
Title:
PILGRIM AMERICA INVESTMENTS INC.
AS INVESTMENT ADVISOR TO PILGRIM
AMERICA PRIME RATE TRUST
By:
---------------------------
Name:
Title:
PARIBAS CAPITAL FUNDING LLC
By:
---------------------------
Name:
Title:
PRIME INCOME TRUST
By:
---------------------------
Name:
Title:
SENIOR DEBT PORTFOLIO
By: Boston Management and Research
as Investment Advisor
By:
---------------------------
Name:
Title:
SOCIETE GENERALE, SOUTHWEST
AGENCY
197
By:
---------------------------
Name:
Title:
SOUTHERN PACIFIC BANK
By:
---------------------------
Name:
Title:
XXX XXXXXX AMERICAN CAPITAL
PRIME RATE INCOME TRUST
By:
---------------------------
Name:
Title:
WACHOVIA BANK, N.A.
By:
---------------------------
Name:
Title:
WESTDEUTSCHE LANDESBANK
GIROZENTRALE
By:
---------------------------
Name:
Title:
By:
---------------------------
Name:
Title:
