FOURTH AMENDMENT AND WAIVER TO CREDIT AGREEMENT
FOURTH
AMENDMENT AND WAIVER TO CREDIT AGREEMENT
THIS
FOURTH
AMENDMENT TO CREDIT AGREEMENT (this "Amendment")
dated as
of March 1, 2005 is among HEARTLAND FINANCIAL USA, INC., a corporation formed
under
the
laws
of the State of Delaware (the "Borrower"),
each of
the banks party hereto (individually, a "Bank" and collectively, the
"Banks")
and THE
NORTHERN TRUST COMPANY,
as agent for the Banks (in such capacity, together with its successors
in
such
capacity, the "Agent").
WHEREAS,
the
Borrower, the Agent and the Banks have entered into a Credit Agreement dated
as
of January 31, 2004 (as hereto amended, the "Credit
Agreement");
and
WHEREAS,
the
Borrower, the Agent and the Banks wish to extend the maturity of the
Credit
Agreement and make certain other amendments to the Credit
Agreement;
NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which
is
hereby acknowledged, the parties hereto agree as follows:
1. Definitions.
Terms
defined in the Credit Agreement and not otherwise defined herein shall have
the
respective meanings given to them in the Credit Agreement and terms defined
in
the introductory paragraphs or other provisions of this Amendment shall have
the
respective meanings attributed to them therein. In addition, the following
terms
shall have the following
meanings (terms defined in the singular having a correlative meaning when used
in the
plural
and vice versa):
"Effective
Date" shall mean March 1, 2005, if (i) this Amendment shall have been executed
and delivered by the Borrower, the Agent and the Banks and (ii) the Borrower
shall have performed its obligations under Section
4
hereof.
2. Return
on Assets. Section 7.4(e)
of the
Credit Agreement is hereby amended to
state in
its entirety as follows:
"(e)
Return
on Average Assets -Borrower.
The
Borrower's consolidated income shall be
at
least 0.70% of its average assets, calculated as at the last day of each fiscal
quarter for the
four
fiscal quarter period ending on that date."
3. Indebtedness. Section
7.5
of the
Credit Agreement is hereby amended to state in its entirety as
follows:
"7.5
Indebtedness,
Liens And Taxes,
The
Borrower and each Subsidiary shall:
(a)
Indebtedness,.
Not
incur, permit to remain outstanding, assume or in any way become committed
for
Indebtedness (specifically including but not limited to Indebtedness in respect
of money borrowed from financial institutions but excluding deposits), except:
(i) in the case of the Borrower, Indebtedness incurred hereunder, and in the
case of the Guarantors, under their respective Guaranty Agreement; (ii)
Indebtedness existing on the date of this Agreement and described on
Schedule
7.5(a) hereof;
(iii) Indebtedness of any Subsidiary arising in the ordinary course
of
the business of such Subsidiary; (iv) in the case of ULTEA, the US Bank
Indebtedness outstanding on the date hereof in the principal amount of
$11,418,871.69, less the aggregate amount of all repayments thereunder after
the
date of this Agreement; (v) in the case of CFC, Indebtedness under commercial
paper issued by CFC which, together with any other commercial paper identified
on Schedule
7,5(a)
hereto,
shall not exceed an aggregate principal amount of $20,000,000; (vu) in the
case
of the Borrower, Trust Indebtedness and Trust Guarantees, and in the case of
any
Trust Issuer, Trust Preferred Securities, provided,
that the
aggregate of such Trust Indebtedness (and the related Trust Guarantees and
Trust
Preferred Securities) shall not
exceed
$88,000,000 at any time outstanding; (vii) in the event any transfer or
contribution of accounts receivable of ULTEA to a special purpose vehicle in
accordance with Section
7,1(d
is
deemed to constitute a secured financing, Indebtedness of ULTEA to such special
purpose vehicle, secured by the account receivables and related rights
transferred to such special purpose vehicle only (the "Factored
Receivables"), provided,
that
such Indebtedness shall not exceed an amount equal to $30,000,000 in the
aggregate during the term of this Agreement; (viii) in the case of the Borrower,
Indebtedness to the City of Dubuque, Iowa, in an amount not to exceed $300,000
to be used for the purpose 6f funding building improvements; (ix) in the case
of
the Borrower, Indebtedness in an aggregate amount not in excess of $2,750,000
under the Agreement to Organize and Stockholder Agreement dated February 1,
2003
and the Supplemental Initial Investor Agreement dated February I, 2003 and
(x)
additional Indebtedness not to exceed $1,000,00 at any time
outstanding.
4. Revolving
Credit Termination Date.
The
definition of "Revolving Credit Commitment Termination Date" is hereby amended
by the deletion of the date "March 1, 2005" and the substitution of the date
"February 28, 2006" thereof.
5. Conditions
to Effective Date.
The
occurrence of the Effective Date shall be subject to the satisfaction of the
following conditions precedent:
(a) The
Borrower, the Agent and. the Banks shall have . executed and delivered, this
Amendment.
(b) No
Default shall have occurred and be continuing under the Credit Agreement, and
the representations and warranties of the Borrower in Section 6 of the Credit
Agreement and in Section
7
hereof
shall be true and correct on and as of the Effective Date and the Borrower
shall
have provided to the Agent a certificate of a senior officer of the Borrower
to
that effect.
(e)
Each
Guarantor shall acknowledge and consent to this Amendment for purposes of its
Guaranty Agreement as evidenced by its signed acknowledgment of this Amendment
on the signature page hereof,
(d) The
Borrower shall have delivered to the Agent, on behalf
of the
Banks, such other documents as the Agent may reasonably request.
6. Effective
Date Notice.
Promptly
following the occurrence of the Effective Date, the Agent shall give notice
to
the parties of the occurrence of' the Effective Date, which notice shall be
conclusive, and the parties may rely thereon; provided, that such notice shall
not waive or
otherwise limit any right or remedy of the Agent or the Banks arising out of
any
failure of any
condition precedent set forth in Section
5
to be
satisfied.
7. Ratification,
The
parties agree that the Credit Agreement, as amended hereby, and the notes have
not lapsed or terminated, are in full force and effect, and are and from and
after the Effective Date shall remain binding in accordance with their
terms.
8. Representations
and Warranties.
The
Borrower represents and warrants to the Agent and the Banks that:
(a) No
Breach.
The
execution, delivery and performance of this Amendment will not conflict with
or
result in a breach of, or cause the creation of a Lien or require any consent
under, the articles of incorporation or bylaws of the Borrower, or any
applicable law or regulation, or any order, injunction or decree of any court
or
governmental authority or agency, or any agreement or instrument to which the
Borrower is a party or by which it or its property is bound.
(b) Power
and Action, Binding Effect.
The
Borrower has been duly incorporated and is validly existing as a corporation
under the laws of the State of Delaware and has all necessary power and
authority to execute, deliver and perform its obligations under this Amendment
and the Credit Agreement, as amended by this Amendment; the execution, delivery
and performance by the Borrower of this Amendment and the Credit Agreement,
as
amended by this Amendment, have been duly authorized by all necessary action
on
its part; and this Amendment and the Credit Agreement, as amended by this
Amendment, have been duly and validly executed and delivered by the Borrower
and
constitute legal, valid and binding obligations, enforceable in accordance
with
their respective terms.
(c) Approvals.
No
authorizations, approvals or consents of, and no filings or registrations with,
any governmental or regulatory authority or agency or any other person are
necessary for the execution, delivery or performance by the Borrower of this
Amendment or the Credit Agreement, as amended by this Amendment, or for the
validity or enforceability thereof.
9. Successors
and Assigns.
This
Amendment shall be binding upon and inure to the benefit of the Borrower, the
Agent and the Banks and their respective successors and assigns, except that
the
Borrower may not transfer or assign any of its rights or interest
hereunder.
10. Governing
Law. This
Amendment shall be governed by, and construed and interpreted
in accordance with, the internal laws of the State of
Illinois.
11. Counterparts,.
This
Amendment may be executed in any number of counterparts and each party hereto
may execute any one or more of such. counterparts, all of which shall constitute
one and the same instrument. Delivery of an executed counterpart of a signature
page to this Amendment by telecopy shall be as effective as delivery of a
manually executed counterpart of this amendment.
12. Expenses.
Whether
or not the effective date shall occur, without limiting the obligations of
the
Borrower under the Credit Agreement, the Borrower agrees to pay, or to reimburse
on demand, all reasonable costs and expenses incurred by the Agent in connection
with the negotiation, preparation, execution, delivery, modi e Lion, amendment
or enforcement of this Amendment, the Credit Agreement and the other agreements,
documents and instruments referred to herein, including the reasonable fees
and
expenses of Mayer, Brown, Xxxx & Maw LLP, special counsel to the Agent, and
any other counsel engaged by the Agent,
[Signature
Page Follows]
IN
WITNESS WHEREOF, this Amendment has been executed as of the date first
above
written.
HEARTLAND
FINANCIAL USA, INC.
By:
/s/
Xxxx X. Xxxxxxx
Name:
Xxxx X. Xxxxxxx
Title:
EVP, CFO, COO
THE
NORTHERN TRUST COMPANY
As
Agent
By:
/s/
Xxxxxx X. Xxxxxxxxx
Name:
Xxxxxx X. Xxxxxxxxx
Title:
Vice President
BANKS:
THE
NORTHERN TRUST COMPANY
By:
/s/
Xxxxxx X. Xxxxxxxxx
Name:
Xxxxxx X. Xxxxxxxxx
Title:
Vice President
XXXXXX
TRUST
AND SAVINGS BANK
By:
/s/
Xxxxxxx X. Xxxxxx
Name:
Xxxxxxx X. Xxxxxx
Title:
Vice President
U.S.
BANK NATIONAL ASSOCIATION
By:
/s/
Xxx Xxxxxx
Name:
Xxx
Xxxxxx
Title:
Assistant Vice President
GUARANTOR
ACKNOWLEDGEMENT
Each
of
the undersigned Guarantors hereby acknowledges and consents to the Borrower’s
execution of this Amendment.
CITIZENS
FINANCE CO. ULTEA,
INC.
By:
/s/
Xxxx X. Xxxxxxx
By:
/s/
Xxxx X. Xxxxxxx
Title:
Treasurer Title:
Treasurer
CERTIFICATE
The
undersigned as Executive Vice President, Chief Financial Officer and Chief
Operating Officer of Heartland Financial USA, Inc., hereby certifies as
follows:
1. No
Default, as defined in the Credit Agreement among Heartland Financial
USA,
Inc.
(the "Borrower"), certain banks and The Northern Trust Company as agent, as
amended ("Credit Agreement") has occurred and is continuing.
2. The
representations and warranties of the Borrower in Section 6 of the Credit
Agreement and in Section 7 of the Fourth Amendment and Waiver to Credit
Agreement dated as of March 1, 2005, are true and correct on and as of the
date
hereof.
IN
WITNESS WHEREOF, the undersigned has executed this Certificate as of March
1,
2005.
HEARTLAND
FINANCIAL USA, INC.
By:
/s/
Xxxx X. Xxxxxxx
Name:
Xxxx X. Xxxxxxx
Title:
EVP, CFO, COO
