Exhibit 10.1
EXECUTION COPY
================================================================================
$1,950,000,000
CREDIT AGREEMENT
AMONG
MASTERCARD INCORPORATED,
AS BORROWER
MASTERCARD INTERNATIONAL INCORPORATED,
AS GUARANTOR
THE SEVERAL LENDERS
FROM TIME TO TIME PARTIES HERETO
CITIGROUP GLOBAL MARKETS INC.,
AS SOLE LEAD ARRANGER AND
SOLE BOOK MANAGER
AND
CITIBANK, N.A.,
AS CO-ADMINISTRATIVE AGENT
JPMORGAN CHASE BANK,
AS CO-ADMINISTRATIVE AGENT
X.X. XXXXXX SECURITIES, INC.,
AS CO-ARRANGER
HSBC BANK USA,
LLOYDS TSB BANK PLC, AND
ROYAL BANK OF SCOTLAND,
AS CO-SYNDICATION AGENTS
DATED AS OF JUNE 18, 2004
================================================================================
TABLE OF CONTENTS
PAGE
----
SECTION 1. DEFINITIONS.......................................................................................... 1
1.1 Defined Terms.................................................................................. 1
1.2 Other Definitional Provisions.................................................................. 15
SECTION 2. AMOUNT AND TERMS OF LOANS............................................................................ 16
2.1 Revolving Credit Commitments................................................................... 16
2.2 Procedure for Revolving Credit Borrowing....................................................... 16
2.3 Term Loans..................................................................................... 16
2.4 Procedure for Term Loan Borrowing.............................................................. 16
2.5 Facility Fee................................................................................... 17
2.6 Termination or Reduction of Commitments........................................................ 17
2.7 Repayment of Revolving Credit Loans and Term Loans; Evidence of Debt.......................... 17
2.8 Optional Prepayments........................................................................... 18
2.9 Conversion and Continuation Options............................................................ 18
2.10 CAF Advances................................................................................... 19
2.11 Procedure for CAF Advance Borrowing............................................................ 19
2.12 CAF Advance Payments........................................................................... 22
2.13 Evidence of Debt............................................................................... 22
2.14 Certain Restrictions........................................................................... 23
2.15 Minimum Amounts of Tranches.................................................................... 23
2.16 Interest Rates and Payment Dates............................................................... 23
2.17 Computation of Interest and Fees............................................................... 23
2.18 Inability to Determine Interest Rate........................................................... 24
2.19 Pro Rata Treatment and Payments................................................................ 24
2.20 Swing Line Commitment.......................................................................... 25
2.21 Illegality..................................................................................... 27
2.22 Requirements of Law............................................................................ 27
2.23 Taxes.......................................................................................... 28
2.24 Indemnity...................................................................................... 29
2.25 Commitment Increases........................................................................... 30
2.26 Commitment Extensions.......................................................................... 31
SECTION 3. REPRESENTATIONS AND WARRANTIES....................................................................... 32
3.1 Financial Condition............................................................................ 32
3.2 No Change...................................................................................... 32
3.3 Existence; Compliance with Law................................................................. 32
3.4 Corporate Power; Authorization; Enforceable Obligations........................................ 33
3.5 No Legal Bar................................................................................... 33
3.6 No Material Litigation......................................................................... 33
3.7 No Default..................................................................................... 33
3.8 Ownership of Property; Liens................................................................... 33
3.9 Intellectual Property.......................................................................... 34
3.10 No Burdensome Restrictions..................................................................... 34
i
PAGE
----
3.11 Taxes.......................................................................................... 34
3.12 Federal Margin Regulations..................................................................... 34
3.13 ERISA.......................................................................................... 34
3.14 Investment Company Act; Other Regulations...................................................... 35
3.15 Subsidiaries................................................................................... 35
3.16 Purpose of Loans............................................................................... 35
3.17 Environmental Matters.......................................................................... 35
3.18 Solvency....................................................................................... 36
SECTION 4. CONDITIONS PRECEDENT................................................................................. 36
4.1 Conditions to Initial Loan..................................................................... 36
4.2 Conditions to Each Loan........................................................................ 37
4.3 Conditions to Use for Certain Purposes......................................................... 38
SECTION 5. AFFIRMATIVE COVENANTS................................................................................ 38
5.1 Financial Statements........................................................................... 38
5.2 Certificates; Other Information................................................................ 39
5.3 Payment of Obligations......................................................................... 40
5.4 Conduct of Business and Maintenance of Existence............................................... 40
5.5 Maintenance of Property; Insurance............................................................. 40
5.6 Inspection of Property; Books and Records; Discussions......................................... 40
5.7 Notices........................................................................................ 40
5.8 Environmental Laws............................................................................. 41
SECTION 6. NEGATIVE COVENANTS................................................................................... 42
6.1 Maintenance of Net Worth....................................................................... 42
6.2 Limitation on Liens............................................................................ 42
6.3 Limitation on Fundamental Changes.............................................................. 43
6.4 Limitation on Transfer or Disposition of Assets................................................ 43
6.5 Limitation on Dividends........................................................................ 44
6.6 Limitation on Investments...................................................................... 44
6.7 Limitation on Transactions with Affiliates..................................................... 44
6.8 Limitation on Changes in Fiscal Year........................................................... 44
6.9 Limitation on Lines of Business................................................................ 45
6.10 Upstreaming.................................................................................... 45
SECTION 7. EVENTS OF DEFAULT.................................................................................... 45
SECTION 8. THE ADMINISTRATIVE AGENT............................................................................. 47
8.1 Appointment.................................................................................... 47
8.2 Delegation of Duties........................................................................... 47
8.3 Exculpatory Provisions......................................................................... 47
8.4 Reliance by Administrative Agent............................................................... 48
8.5 Notice of Default.............................................................................. 48
8.6 Non-Reliance on Administrative Agent and Other Lenders......................................... 48
8.7 Indemnification................................................................................ 49
ii
PAGE
----
8.8 Administrative Agent in Its Individual Capacity................................................ 49
8.9 Successor Administrative Agent................................................................. 49
8.10 Substitute Administrative Agent................................................................ 50
8.11 Arrangers, Etc................................................................................. 50
SECTION 9. GUARANTEE............................................................................................ 50
SECTION 10. MISCELLANEOUS....................................................................................... 54
10.1 Amendments and Waivers......................................................................... 54
10.2 Notices........................................................................................ 55
10.3 No Waiver; Cumulative Remedies................................................................. 57
10.4 Survival of Representations and Warranties..................................................... 57
10.5 Payment of Expenses and Taxes.................................................................. 57
10.6 Successors and Assigns; Participations and Assignments......................................... 58
10.7 Adjustments; Set-off........................................................................... 61
10.8 Counterparts................................................................................... 62
10.9 Severability................................................................................... 62
10.10 Integration.................................................................................... 62
10.11 Termination of Commitments and Swing Line Commitments.......................................... 62
10.12 GOVERNING LAW.................................................................................. 62
10.13 Submission To Jurisdiction; Waivers............................................................ 62
10.14 Acknowledgements............................................................................... 63
10.15 WAIVERS OF JURY TRIAL.......................................................................... 63
10.16 Confidentiality................................................................................ 63
10.17 USA PATRIOT Act................................................................................ 63
SCHEDULES
1.1(a) - Cash Equivalents
1.1(b) - Permitted Investments
1.2 - Commitments
3.1 - Interest Rate and Currency Protection
3.6 - Material Litigation
3.15 - Subsidiaries
6.2(f) - Liens
6.10 - Dividend Blocks
10.7(b) - Fiduciary Accounts
EXHIBITS
A Form of Revolving Credit Note
B Form of Term Note
C Form of Swing Line Note
D-1 Form of CAF Advance Request
D-2 Form of CAF Advance Offer
D-3 Form of CAF Advance Confirmation
iii
PAGE
----
D-4 Form of CAF Advance Assignment
E Form of Swing Line Loan Participation Certificate
F-1 Form of Opinion of General Counsel of Borrower and International
F-2 Form of Opinion of Special New York Counsel to the Administrative Agent
G Form of Borrowing Notice
H Form of Assignment and Acceptance
I Form of Closing Certificate
J Form of Compliance Certificate
K-1 Form of New Lender Supplement
K-2 Form of Commitment Increase Supplement
iv
CREDIT AGREEMENT, dated as of June 18, 2004 among MASTERCARD INCORPORATED,
a Delaware corporation (the "Borrower"), MASTERCARD INTERNATIONAL INCORPORATED,
a Delaware corporation ("International" or the "Guarantor"), the several banks
and other financial institutions from time to time parties to this Agreement
(the "Lenders"), and CITIBANK, N.A. ("Citibank"), as administrative agent for
the Lenders hereunder (in such capacity, the "Administrative Agent"), and
JPMORGAN CHASE BANK, as back-up administrative agent for the Lenders hereunder
(in such capacity, the "Backup Agent").
The parties hereto hereby agree as follows:
SECTION 1. DEFINITIONS
1.1 Defined Terms. As used in this Agreement, the following terms
shall have the following meanings:
"ABR": a fluctuating interest rate per annum in effect from time to time,
which rate per annum shall at all times be equal to the highest of:
(i) the rate of interest announced publicly by Citibank in New York
City from time to time as Citibank's base rate; and
(ii) 1.00% per annum above the latest three-week moving average of
secondary market morning offering rates in the United States for
three-month certificates of deposit of major United States money market
banks, such three-week moving average being determined weekly on each
Monday (or, if any such day is not a Business Day, on the next succeeding
Business Day) for the three-week period ending on the previous Friday by
Citibank on the basis of such rates reported by certificate of deposit
dealers to and published by the Federal Reserve Bank of New York or, if
such publications shall be suspended or terminated, on the basis of
quotations for such rates received by Citibank from three New York
certificate of deposit dealers of recognized standing selected by
Citibank, in either case adjusted to the nearest 0.25%, or if there is no
nearest 0.25%, to the next higher 0.25%; and
(iii) for any day, 0.50% per annum above the Federal Funds Rate in
effect on such day;
plus for each Term Loan, 0.25% per annum.
Each change in any interest rate provided for herein based upon the ABR
resulting from a change in the ABR shall take effect at the time of such change
in the ABR.
"ABR Loans": Revolving Credit Loans and Term Loans hereunder the
rate of interest applicable to which is based upon the ABR.
"Administrative Agent": as defined in the preamble hereof.
"Administrative Questionnaire": an Administrative Questionnaire in a
form supplied by the Administrative Agent.
CREDIT AGREEMENT
2
"Affiliate": as to any Person, any other Person (other than a
Subsidiary) which, directly or indirectly, is in control of, is controlled
by, or is under common control with, such Person. For purposes of this
definition, "control" of a Person means the power, directly or indirectly,
either to (a) vote 25% or more of the securities having ordinary voting
power for the election of directors of such Person or (b) direct or cause
the direction of the management and policies of such Person, whether by
contract or otherwise.
"Agreement": this Credit Agreement, as amended, supplemented or
otherwise modified from time to time.
"Applicable Facility Fee Rate": for any Rating Level Period, the
rate per annum set forth below opposite the reference to such Rating Level
Period:
Rating Level Period Applicable Facility Fee Rate
------------------- ----------------------------
Rating Level 1 Period 0.060%
Rating Level 2 Period 0.070%
Rating Level 3 Period 0.080%
Rating Level 4 Period 0.100%
Rating Xxxxx 0 Period 0.150%
Each change in the Applicable Facility Fee Rate resulting from a Rating
Level Change shall be effective on the effective date of such Rating Level
Change.
"Applicable Margin": for each LIBOR Loan and for any Rating Level
Period, the rate per annum set forth below opposite the reference to such
Rating Level Period:
Rating Level Period Applicable Margin
------------------- -----------------
Rating Level 1 Period 0.190%
Rating Level 2 Period 0.280%
Rating Level 3 Period 0.420%
Rating Level 4 Period 0.525%
Rating Level 5 Period 0.725%
plus (i) the Applicable Utilization Fee Rate for such Rating Level Period,
plus (ii) for each Term Loan, 0.25% per annum. Each change in the
Applicable Margin resulting from a Rating Level Change shall be effective
on the effective date of such Rating Level Change.
"Applicable Utilization Fee Rate": for each day on which the drawn
portion of the aggregate amount of the Commitments (including Swing Line
Loans, CAF Advances
CREDIT AGREEMENT
3
and Term Loans) exceeds 33% of the aggregate amount of Commitments as in
effect on the Closing Date, for any Rating Level Period, the rate per
annum set forth below opposite the reference to such Rating Level Period:
Rating Level Period Applicable Utilization Fee Rate
------------------- -------------------------------
Rating Level 1 Period 0.100%
Rating Level 2 Period 0.100%
Rating Level 3 Period 0.100%
Rating Level 4 Period 0.125%
Rating Xxxxx 0 Period 0.125%
Each change in the Applicable Utilization Fee Rate resulting from a Rating
Level Change shall be effective on the effective date of such Rating Level
Change.
"Assignee": as defined in subsection 10.6(c).
"Available Commitment": as to any Lender on any day, an amount equal
to the excess, if any, of (a) the amount of such Lender's Commitment over
(b) the aggregate of (i) the aggregate principal amount of all Revolving
Credit Loans and Term Loans made by such Lender then outstanding and (ii)
an amount equal to such Lender's Commitment Percentage of the aggregate
principal amount of all Swing Line Loans then outstanding (after giving
effect to any repayment of Swing Line Loans on such day).
"Backup Agent": as defined in the preamble hereof.
"Board": the Board of Governors of the Federal Reserve System of the
United States (or any successor).
"Borrower": as defined in the preamble hereof.
"Borrowing Date": any Business Day specified in a notice pursuant to
Sections 2.2, 2.4, 2.11 or 2.20 as a date on which the Borrower requests
the Lenders or the Swing Line Lender, as the case may be, to make Loans
hereunder.
"Business": as defined in subsection 3.17(b).
"Business Day": a day other than a Saturday, Sunday or other day on
which commercial banks in New York City are authorized or required by law
to close; provided that when such term is used to describe a day on which
a borrowing, payment or interest rate determination is to be made in
respect of a LIBOR Loan or a LIBOR CAF Advance, such day shall also be a
day on which dealings in foreign currencies and exchange between banks may
be carried on in London, England.
"CAF Advance": each CAF Advance made pursuant to Section 2.10.
CREDIT AGREEMENT
4
"CAF Advance Availability Period": the period from and including the
Closing Date to and including the date which is 7 days prior to the
Revolving Credit Termination Date.
"CAF Advance Confirmation": each confirmation by the Borrower of its
acceptance of CAF Advance Offers, which confirmation shall be
substantially in the form of Exhibit D-3 and shall be delivered to the
Administrative Agent by facsimile transmission.
"CAF Advance Interest Payment Date": as to each CAF Advance, each
interest payment date specified by the Borrower for such CAF Advance in
the related CAF Advance Request.
"CAF Advance Maturity Date": as to any CAF Advance, the date
specified by the Borrower pursuant to subsection 2.11(a) in its acceptance
of the related CAF Advance Offer.
"CAF Advance Offer": each offer by a Lender to make CAF Advances
pursuant to a CAF Advance Request, which offer shall contain the
information specified in Exhibit D-2 and shall be delivered to the
Administrative Agent by telephone, immediately confirmed by facsimile
transmission.
"CAF Advance Request": each request by the Borrower for Lenders to
submit bids to make CAF Advances, which request shall contain the
information in respect of such requested CAF Advances specified in Exhibit
D-1 and shall be delivered to the Administrative Agent in writing, by
facsimile transmission, or by telephone, immediately confirmed by
facsimile transmission.
"Capital Lease": as applied to any Person, any lease of any property
(whether real, personal or mixed) by that Person as lessee which, in
conformity with GAAP, is, or is required to be, accounted for as a capital
lease on the balance sheet of that Person.
"Capitalized Lease Obligations": all obligations under Capital
Leases of any Person, in each case taken at the amount thereof accounted
for as liabilities in accordance with GAAP.
"Capital Stock": any and all shares, interests, participations or
other equivalents (however designated) of capital stock of a corporation,
any and all equivalent ownership interests in a Person other than a
corporation and any and all warrants or options to purchase any of the
foregoing.
"Cash Equivalents": (i) cash equivalents in existence on March 31,
2004 as set forth on Schedule 1.1(a) (and, in the case of any such cash
equivalents described on Schedule 1.1(a), any replacement of any such cash
equivalents with substantially the same Investment), (ii) securities
issued or directly and fully guaranteed or insured by the United States 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 one year from the date of acquisition, (iii)
Dollar denominated time deposits, certificates of deposit and bankers
acceptances of any Lender or any bank whose short-
CREDIT AGREEMENT
5
term commercial paper rating from S&P is at least A-1 or the equivalent
thereof or from Xxxxx'x Investors Service, Inc. is at least P-1 or the
equivalent thereof (any such bank, an "Approved Bank"), with maturities of
not more than one year from the date of acquisition, (iv) repurchase
obligations with a term of not more than seven days for underlying
securities of the type described in clause (ii) entered into with an
Approved Bank, (v) commercial paper issued by, or guaranteed by, any
Approved Bank or by the parent company of any Approved Bank or commercial
paper issued by, or guaranteed by, any industrial or financial company
with a short-term commercial paper rating of at least A-1 or the
equivalent thereof by S&P or at least P-1 or the equivalent thereof by
Moody's, or issued by, or guaranteed by, any industrial or financial
company with a long term unsecured debt rating of at least A or A2, or the
equivalent of each thereof, from S&P or Moody's, respectively, and in each
case maturing within one year after the date of acquisition and (vi) any
fund or funds making substantially all of their Investments in Investments
of the type described in clauses (i) through (v) above.
"C/D Assessment Rate": for any day as applied to any loan the
interest rate applicable to which is based upon the ABR, the annual
assessment rate in effect on such day which is payable by a member of the
Bank Insurance Fund maintained by the Federal Deposit Insurance
Corporation (the "FDIC") classified as well-capitalized and within
supervisory subgroup "B" (or a comparable successor assessment risk
classification) within the meaning of 12 C.F.R. Section 327.4 (or any
successor provision) to the FDIC (or any successor) for the FDIC's (or
such successor's) insuring time deposits at offices of such institution in
the United States.
"C/D Reserve Percentage": for any day as applied to any loan the
interest rate applicable to which is based upon the ABR, that percentage
(expressed as a decimal) which is in effect on such day, as prescribed by
the Board, for determining the maximum reserve requirement for a
Depositary Institution (as defined in Regulation D of the Board) in
respect of new non-personal time deposits in Dollars having a maturity of
30 days or more.
"Citibank": as defined in the preamble hereof.
"Closing Date": the date on which the conditions precedent set forth
in Section 4.1 shall be satisfied.
"Code": the Internal Revenue Code of 1986, as amended from time to
time.
"Commitment": as to any Lender, the obligation of such Lender to
make Revolving Credit Loans and Term Loans to the Borrower hereunder in an
aggregate principal amount at any one time outstanding not to exceed the
amount set forth opposite such Lender's name on Schedule 1.2, as such
amount may be reduced or increased from time to time in accordance with
the provisions of this Agreement.
"Commitment Increase Offer": as defined in subsection 2.25(a).
"Commitment Increase Supplement": as defined in subsection 2.25(c).
CREDIT AGREEMENT
6
"Commitment Percentage": as to any Lender at any time, the
percentage which such Lender's Commitment then constitutes of the
aggregate Commitments (or, at any time after the Commitments shall have
expired or terminated, the percentage which the aggregate principal amount
of such Lender's Revolving Credit Loans and Term Loans then outstanding
constitutes of the aggregate principal amount of the Revolving Credit
Loans and Term Loans then outstanding).
"Commitment Period": the period from and including the date hereof
to but not including the Revolving Credit Termination Date or such earlier
date on which the Commitments shall terminate as provided herein.
"Commonly Controlled Entity": an entity, whether or not
incorporated, which is under common control with the Borrower within the
meaning of Section 4001 of ERISA or is part of a group which includes the
Borrower and which is treated as a single employer under Section 414 of
the Code.
"Confidential Information": non-public information that the Borrower
or any of its Subsidiaries (or any of their representatives) furnishes to
the Administrative Agent or any Lender, but does not include any such
information that is or becomes generally available to the public (other
than as a result of a breach of this Agreement) or that was available to
the Administrative Agent or such Lender on a non-confidential basis prior
to its being furnished by the Borrower or any of its Subsidiaries (other
than as a result of a breach of this Agreement or to the extent obtained
from a source known to the Administrative Agent or such Lender to be bound
by a confidentiality agreement with the Borrower or any of its
Subsidiaries and to be in breach of such confidentiality agreement).
"Consolidated Net Income": as at date for determination thereof,
consolidated net income of the Borrower and its Subsidiaries, determined
in accordance with GAAP.
"Consolidated Net Worth": for any Person and as at any date of
determination, the members' or stockholders' equity of such Person, as the
case may be, as determined in accordance with GAAP and as would be
reflected on a consolidated balance sheet of such Person prepared as of
such date.
"Contractual Obligation": as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is legally bound.
"Declined Amount": as defined in subsection 2.25(a).
"Declining Lender": as defined in subsection 2.25(a).
"Default": any of the events specified in Section 7, whether or not
any requirement for the giving of notice, the lapse of time, or both, or
any other condition, has been satisfied.
"Dollars" and "$": dollars in lawful currency of the United States.
CREDIT AGREEMENT
7
"Domestic Subsidiary": any Subsidiary organized under the laws of
any jurisdiction within the United States of America.
"Environmental Laws": any and all foreign, Federal, state, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes,
decrees, requirements of any Governmental Authority or other Requirements
of Law (including common law) regulating, relating to or imposing
liability or standards of conduct concerning protection of human health or
the environment, as now or may at any time hereafter be in effect.
"ERISA": the Employee Retirement Income Security Act of 1974, as
amended from time to time.
"Eurocurrency Reserve Requirements": for any day as applied to a
LIBOR Loan or a LIBOR CAF Advance, the aggregate (without duplication) of
the rates (expressed as a decimal fraction) of reserve requirements in
effect on such day (including, without limitation, basic, supplemental,
marginal and emergency reserves under any regulations of the Board or
other Governmental Authority having jurisdiction with respect thereto)
dealing with reserve requirements prescribed for eurocurrency funding
(currently referred to as "Eurocurrency Liabilities" in Regulation D of
the Board) maintained by a member bank of such system.
"Event of Default": any of the events specified in Section 7,
provided that any requirement for the giving of notice, the lapse of time,
or both, or any other condition, has been satisfied.
"Executive Incentive Compensation Plan": as described in the annual
report of the Borrower.
"Federal Funds Rate": for any day, the rate per annum (rounded
upward, if necessary, to the nearest 1/100 of 1%) equal to the weighted
average of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business
Day next succeeding such day, provided that (i) if such day is not a
Business Day, the Federal Funds Rate for such day shall be such rate on
such transactions on the next preceding Business Day as so published on
the next succeeding Business Day, and (ii) if no such rate is so published
on such next succeeding Business Day, the Federal Funds Rate for such day
shall be the average of the quotations received by the Administrative
Agent from three federal funds brokers of recognized standing selected by
the Administrative Agent.
"Fixed Rate CAF Advance": any CAF Advance made pursuant to a Fixed
Rate CAF Advance Request.
"Fixed Rate CAF Advance Request": any CAF Advance Request requesting
the Lenders to offer to make CAF Advances at a fixed rate of interest (as
opposed to a rate composed of the London Interbank Offered Rate plus (or
minus) a margin).
"Foreign Subsidiary": as to any Person, any Subsidiary of such
Person organized under the laws of any jurisdiction outside the United
States.
CREDIT AGREEMENT
8
"GAAP": generally accepted accounting principles in the United
States in effect from time to time.
"Governmental Authority": any nation or government, any state or
other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or
pertaining to government.
"Guarantee": as to any Person (the "guaranteeing person"), any
obligation of (a) the guaranteeing person or (b) another Person
(including, without limitation, any bank under any letter of credit) to
induce the creation of which the guaranteeing person has issued a
reimbursement, counterindemnity or similar obligation, in either case
guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends
or other obligations (the "primary obligations") of any other third Person
(the "primary obligor") in any manner, whether directly or indirectly,
including, without limitation, any obligation of the guaranteeing 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 (1) for the purchase or payment of any such
primary obligation or (2) 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 owner
of any such primary obligation against loss in respect thereof; provided,
however, that the term Guarantee shall not include endorsements of
instruments for deposit or collection in the ordinary course of business
or obligations of any Obligor or its Subsidiaries in respect of settlement
failures by one or more of its members. The amount of any Guarantee of any
guaranteeing person shall be deemed to be the lower of (a) an amount equal
to the stated or determinable amount of the primary obligation in respect
of which such Guarantee is made and (b) the maximum amount for which such
guaranteeing person may be liable pursuant to the terms of the instrument
embodying such Guarantee, unless such primary obligation and the maximum
amount for which such guaranteeing person may be liable are not stated or
determinable, in which case the amount of such Guarantee shall be such
guaranteeing person's maximum reasonably anticipated liability in respect
thereof as determined by the Borrower in good faith.
"Guaranteed Obligations": as defined in Section 9.
"Guarantor": as defined in the preamble hereof.
"Indebtedness": as to any Person, (a) all indebtedness of such
Person for borrowed money, (b) the deferred purchase price of assets or
services which in accordance with GAAP would be shown on the liability
side of the balance sheet of such Person, (c) the face amount of all
letters of credit issued for the account of such Person and, without
duplication, all drafts drawn thereunder, (d) all Indebtedness of a second
Person secured by any Lien on any property owned by such first Person,
whether or not such Indebtedness has been assumed, (e) all Capitalized
Lease Obligations of such Person, (f) all obligations of such Person to
pay a specified purchase price for goods or services whether or not
delivered or accepted, e.g., take-or-pay and similar obligations, (g) all
obligations of such Person under Interest Rate Agreements, and (h) without
CREDIT AGREEMENT
9
duplication, all Guarantees of such Person of Indebtedness of others,
provided that Indebtedness shall not include trade payables and accrued
expenses relating to employees, in each case arising in the ordinary
course of business.
"Insolvency": with respect to any Multiemployer Plan, the condition
that such Plan is insolvent within the meaning of Section 4245 of ERISA.
"Insolvent": pertaining to a condition of Insolvency.
"Interest Payment Date": (a) as to any Loan the rate of interest
applicable to which is based upon the ABR, the last day of each March,
June, September and December, on the Revolving Credit Termination Date and
on the Termination Date, (b) as to any LIBOR Loan or LIBOR CAF Advance
having an Interest Period of three months or less, or any Fixed Rate CAF
Advance having an Interest Period of 90 days or less, the last day of such
Interest Period and (c) as to any LIBOR Loan or any Fixed Rate CAF Advance
having an Interest Period longer than three months or 90 days,
respectively, each day which is three months or 90 days, respectively, or
a whole multiple thereof, after the first day of such Interest Period and
the last day of such Interest Period.
"Interest Period": (a) with respect to any LIBOR Loan:
(i) initially, the period commencing on the borrowing or
conversion date, as the case may be, with respect to such LIBOR Loan
and ending one, two, three or six months thereafter, as selected by
the Borrower in its notice of borrowing or notice of conversion, as
the case may be, given with respect thereto; and
(ii) thereafter, each period commencing on the last day
of the next preceding Interest Period applicable to such LIBOR Loan
and ending one, two, three or six months thereafter, as selected by
the Borrower by irrevocable notice to the Administrative Agent not
less than three Business Days prior to the last day of the then
current Interest Period with respect thereto;
(b) with respect to any CAF Advance, the period specified in the CAF
Advance Confirmation with respect to such CAF Advance;
provided that all of the foregoing provisions relating to Interest Periods
are subject to the following:
(A) if any Interest Period would otherwise end on a day that
is not a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless, in the case of LIBOR Loans or
LIBOR CAF Advances, the result of such extension would be to carry
such Interest Period into another calendar month in which event such
Interest Period shall end on the immediately preceding Business Day;
(B) any Interest Period that would otherwise extend beyond the
Revolving Credit Termination Date or beyond the date final payment
is due on the Term Loans shall end on the Revolving Credit
Termination Date or such date of final payment, as the case may be;
and
CREDIT AGREEMENT
10
(C) any Interest Period pertaining to a LIBOR Loan or a LIBOR
CAF Advance that begins on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in
the calendar month at the end of such Interest Period) shall end on
the last Business Day of a calendar month.
"Interest Rate Agreement": any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement, interest rate
futures contract, interest rate option contract or other similar agreement
or arrangement designed to protect any Person against fluctuations in
interest rates.
"International": as defined in the preamble hereof.
"Investments": as defined in Section 6.6.
"LIBOR CAF Advance": any CAF Advance made pursuant to a LIBOR CAF
Advance Request.
"LIBOR CAF Advance Request": any CAF Advance Request requesting the
Lenders to offer to make CAF Advances at an interest rate equal to the
London Interbank Offered Rate plus (or minus) a margin.
"LIBOR Loans": Revolving Credit Loans and Term Loans hereunder the
rate of interest applicable to which is based upon the London Interbank
Offered Rate.
"Lien": any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other
security interest or any preference, priority or other security agreement
or preferential arrangement of any kind or nature whatsoever (including,
without limitation, any conditional sale or other title retention
agreement and any Capital Lease having substantially the same economic
effect as any of the foregoing).
"Loan": any Revolving Credit Loan, Term Loan, CAF Advance or Swing
Line Loan made by any Lender pursuant to this Agreement.
"Loan Documents": this Agreement and any Notes issued hereunder.
"London Interbank Offered Base Rate": with respect to each day
during each Interest Period pertaining to a LIBOR Loan or a LIBOR CAF
Advance, the rate appearing on Page 3750 of the Telerate Service (or on
any successor or substitute page of such service, or any successor to or
substitute for such service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing
quotations of interest rates applicable to Dollar deposits in the London
interbank market) at approximately 11:00 A.M., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for
dollar deposits with a maturity comparable to such Interest Period. In the
event that such rate is not available at such time for any reason, then
the "London Interbank Offered Base Rate" with respect to such LIBOR Loan
or LIBOR CAF Advance for such Interest Period shall be the rate at which
Dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of Citibank in
immediately available funds in the London
CREDIT AGREEMENT
11
interbank market at approximately 11:00 A.M., London time, two Business
Days prior to the commencement of such Interest Period.
"London Interbank Offered Rate": with respect to each day during
each Interest Period pertaining to a LIBOR Loan or a LIBOR CAF Advance, a
rate per annum determined for such day in accordance with the following
formula (rounded upward to the nearest 1/100th of 1%):
London Interbank Offered Base Rate
--------------------------------------------
1.00 - Eurocurrency Reserve Requirements
"Margin Stock": margin stock within the meaning of Regulation U.
"MasterCard Europe": MasterCard Europe Sprl, a Belgian corporation.
"Material Adverse Effect": a material adverse effect on (a) the
business, assets, operations, property or condition (financial or
otherwise) of the Borrower and its Subsidiaries taken as a whole (it being
understood that a settlement failure by one or more members of
International shall not constitute an event, development or circumstance
that has a "Material Adverse Effect") or (b) the validity or
enforceability of any of the Loan Documents or the material rights or
remedies of the Administrative Agent or the Lenders thereunder.
"Material Subsidiary" means, at any time, any Subsidiary (i)
accounting, during the immediately preceding fiscal quarter of the
Borrower, for more than 5% of the total revenues of the Borrower and its
Subsidiaries on a consolidated basis or (ii) having, as at the last day of
such fiscal quarter, more than 5% of the total assets of the Borrower and
its Subsidiaries on a consolidated basis, all determined in accordance
with GAAP.
"Materials of Environmental Concern": any gasoline or petroleum
(including crude oil or any fraction thereof) or petroleum products or any
hazardous or toxic substances, materials or wastes, defined or regulated
as such in or under any Environmental Law, including, without limitation,
asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.
"Multiemployer Plan": a Plan which is a multiemployer plan as
defined in Section 4001 (a)(3) of ERISA.
"New Lender": as defined in subsection 2.25(b).
"New Lender Supplement": as defined in subsection 2.25(b).
"Non-Excluded Taxes": as defined in Section 2.23.
"Notes": the collective reference to the Revolving Credit Notes, the
Term Notes and the Swing Line Note.
"Obligors": the collective reference to the Borrower and the
Guarantor.
"Participant": as defined in subsection 10.6(b).
CREDIT AGREEMENT
12
"PBGC": the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA.
"Permitted Investments": (a) Investments in Cash Equivalents; (b)
Investments in existence on the date of this Agreement and disclosed in
the financial statements previously delivered to the Administrative Agent
and the Lenders and as set forth on Schedule 1.1(b) (and, in the case of
any Investments described on Schedule 1.1(b), any replacement of any such
Investment with substantially the same Investment in no greater amounts);
(c) Investments in any Subsidiary by the Borrower or by any Subsidiary
(including Guarantees in respect of hedging or foreign exchange
transactions entered into in the ordinary course of business and governed
by ISDA documentation, subject to the limitations set forth in the proviso
to this definition, including any Investment made to acquire such
Subsidiary); (d) Investments in the Borrower by any existing or future
Subsidiary of the Borrower; (e) sales of goods or services on trade credit
terms in the ordinary course of business; (f) loans and advances to
employees in the ordinary course of business; (g) loans or advances to
vendors or contractors of the Borrower in the ordinary course of business;
(h) lease, utility and other similar deposits in the ordinary course of
business; (i) stock, obligations or securities received in the ordinary
course of business in settlement of debts owing to the Borrower or a
Subsidiary as a result of foreclosure, perfection or enforcement of any
Lien, or in connection with good faith settlement of delinquent
obligations owing to the Borrower or a Subsidiary; (j) Investments in
partnerships or joint ventures engaged in a business related to that
engaged in by the Borrower on the date of this Agreement and Investments
in other entities engaged in the development or production of new
technologies directly related to the businesses engaged in by the Borrower
and its Subsidiaries on the date of this Agreement, which Investments do
not exceed an aggregate amount at any time outstanding of 25% of the total
assets of the Borrower and its consolidated Subsidiaries; (k) Investments
by the Borrower pursuant to the Executive Incentive Compensation Plan in
an aggregate amount not to exceed at any time outstanding not more than
15% of the total assets of the Borrower and its consolidated Subsidiaries;
(l) Investments or assumed Indebtedness under Interest Rate Agreements and
currency exchange and protection agreements entered into in the ordinary
course of business; and (m) in addition to Permitted Investments described
in the foregoing clauses (a) through (l), Investments in an aggregate
amount not to exceed an amount equal to 20% of the total assets of the
Borrower and its consolidated Subsidiaries at any one time outstanding;
provided that the aggregate amount of Investments by International and its
Subsidiaries in Subsidiaries of the Borrower that are not also
Subsidiaries of International shall not exceed an amount equal to 30% of
the total assets of International and its consolidated Subsidiaries at any
one time outstanding; and provided, further, that a Guarantee of
obligations of MasterCard Europe in respect of hedging or foreign exchange
transactions entered into in the ordinary course of business with one or
more Lenders (or Affiliates thereof) and governed by ISDA documentation
shall not be considered an Investment for purposes of the immediately
preceding proviso.
"Person": an individual, partnership, corporation, business trust,
joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.
CREDIT AGREEMENT
13
"Plan": at a particular time, any employee benefit plan which is
covered by ERISA and in respect of which the Borrower or a Commonly
Controlled Entity is (or, if such plan were terminated at such time, would
under Section 4069 of ERISA be deemed to be) an "employer" as defined in
Section 3(5) of ERISA.
"Properties": as defined in Section 3.17.
"Rating Level Change": a change in the S&P Rating (other than as a
result of a change in the rating system of S&P) that results in the change
from one Rating Level Period to another, which Rating Level Change shall
be effective on the date on which the relevant change in the S&P Rating is
first announced by S&P.
"Rating Level Period": a Rating Level 1 Period, a Rating Level 2
Period, a Rating Level 3 Period, a Rating Level 4 Period or a Rating Level
5 Period; provided that:
(i) "Rating Xxxxx 0 Period" means a period during which the S&P
Rating is A+ or better;
(ii) "Rating Level 2 Period" means a period that is not a Rating
Level 1 Period during which the S&P Rating is A - or better;
(iii) "Rating Xxxxx 0 Period" means a period that is not a Rating
Level 1 Period or a Rating Level 2 Period during which the S&P
Rating is BBB+;
(iv) "Rating Level 4 Period" means a period that is not a Rating
Level 1 Period, a Rating Level 2 Period or a Rating Level 3
Period during which the S&P Rating is BBB; and
(v) "Rating Xxxxx 0 Period" means a period other than a Rating
Level 1 Period, a Rating Level 2 Period, a Rating Level 3
Period or a Rating Level 4 Period, and shall include each
period during which there is no S&P Rating in effect.
"Register": as defined in subsection 10.6(e).
"Regulation U": Regulation U of the Board as in effect from time to
time.
"Reorganization": with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of
Section 4241 of ERISA.
"Reportable Event": any of the events set forth in Section 4043(c)
of ERISA, other than those events as to which the thirty day notice period
is waived under PBGC Reg. Section 4043.
"Required Lenders": at any time, Lenders the Commitment Percentages
of which aggregate more than 50%.
"Requirement of Law": as to any Person, the certificate of
incorporation and by-laws or other organizational or governing documents
of such Person, and any law, treaty, rule or regulation or determination
of an arbitrator or a court or other Governmental
CREDIT AGREEMENT
14
Authority, in each case applicable to or binding upon such Person or any
of its property or to which such Person or any of its property is subject.
"Responsible Officer": the president and chief executive officer and
the chief operating officer of the Borrower and, with respect to financial
matters, the chief financial officer or the treasurer of the Borrower.
"Revolving Credit Loans": as defined in Section 2.1.
"Revolving Credit Note": as defined in subsection 2.7(e).
"Revolving Credit Termination Date": June 17, 2005, as extended
from time to time pursuant to Section 2.26, or such earlier date as the
Commitments shall terminate pursuant to the terms hereof; provided that
if the Revolving Credit Termination Date would otherwise fall on a day
that is not a Business Day, the Revolving Credit Termination Date shall
be the immediately preceding Business Day.
"S&P": Standard & Poor's Ratings Services, a division of The
XxXxxx-Xxxx Companies, Inc., and its successors.
"S&P Rating": at any time, the counterparty rating of the Borrower
then most recently announced by S&P.
"Single Employer Plan": any Plan which is covered by Title IV of
ERISA, but which is not a Multiemployer Plan.
"Solvent": with respect to any Person on a particular date, means
that (i) the fair value of the property of such Person is greater than the
total amount of the liabilities, including, without limitation, contingent
liabilities, of such Person, (ii) the present fair saleable value of the
assets of such Person is not less than the amount that will be required to
pay the probable liability of such Person on its debts as they become
absolute and matured, (iii) such Person does not intend to, and does not
believe that it will, incur debts or liabilities beyond such Person's
ability to pay such debts and liabilities as they mature, and (iv) such
Person is not engaged in business, and is not about to engage in business,
for which such Person's property would constitute unreasonably small
capital.
"Subsidiary": as to any Person, a corporation, partnership or other
entity of which a majority of the Voting Shares are at the time owned,
directly or indirectly through one or more intermediaries, or both, by
such Person. Unless otherwise qualified, all references to a "Subsidiary"
or to "Subsidiaries" in this Agreement shall refer to a Subsidiary or
Subsidiaries of the Borrower.
"Swing Line Commitment": the Swing Line Lender's obligation to make
Swing Line Loans pursuant to Section 2.20.
"Swing Line Lender": Citibank in its capacity as provider of the
Swing Line Loans.
"Swing Line Loan Participation Certificate": a certificate in
substantially the form of Exhibit E.
CREDIT AGREEMENT
15
"Swing Line Loans": as defined in subsection 2.20(a).
"Swing Line Note": as defined in subsection 2.20(b).
"Term Loans": as defined in Section 2.3.
"Term Note": as defined in subsection 2.7(e).
"Termination Date": the date that is the first anniversary of the
Revolving Credit Termination Date (or, if such day is not a Business Day,
the immediately preceding Business Day).
"Tranche": the collective reference to LIBOR Loans the then current
Interest Periods with respect to all of which begin on the same date and
end on the same later date (whether or not such loans shall originally
have been made on the same day); Tranches may be identified as "LIBOR
Tranches".
"Transferee": as defined in subsection 10.6(g).
"Type": as to any Revolving Credit Loan or Term Loan, its nature as
an ABR Loan or a LIBOR Loan.
"United States": the United States of America.
"Voting Shares": as to any Person, shares of stock of or other
ownership interests in such Person having ordinary voting power (other
than such stock or other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board
of directors (or similar managers) of such Person.
1.2 Other Definitional Provisions. (a) Unless otherwise specified
therein, all terms defined in this Agreement shall have the defined meanings
when used in any Notes or any certificate or other document made or delivered
pursuant hereto.
(b) As used herein and in any Notes, and any certificate or other document
made or delivered pursuant hereto, accounting terms relating to the Borrower and
its Subsidiaries not defined in Section 1.1 and accounting terms partly defined
in Section 1.1, to the extent not defined, shall have the respective meanings
given to them under GAAP.
(c) The words "hereof", "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and Section, subsection,
Schedule and Exhibit references are to this Agreement unless otherwise
specified.
(d) The meanings given to terms defined herein shall be equally applicable
to both the singular and plural forms of such terms.
(e) The words "asset" and "property" shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract rights.
CREDIT AGREEMENT
16
SECTION 2. AMOUNT AND TERMS OF LOANS
2.1 Revolving Credit Commitments. (a) Subject to the terms and
conditions hereof, each Lender severally agrees to make revolving credit loans
("Revolving Credit Loans") to the Borrower from time to time during the
Commitment Period in an aggregate principal amount at any one time outstanding,
when added to such Lender's Commitment Percentage of all outstanding Swing Line
Loans, not to exceed the amount of such Lender's Commitment, provided that the
aggregate principal amount of all Loans outstanding at any time shall not exceed
the aggregate amount of the Commitments at such time. During the Commitment
Period the Borrower may use the Commitments by borrowing, prepaying the
Revolving Credit Loans in whole or in part, and reborrowing, all in accordance
with the terms and conditions hereof.
(b) The Revolving Credit Loans may from time to time be LIBOR Loans, ABR
Loans, or a combination thereof, as determined by the Borrower and notified to
the Administrative Agent in accordance with Sections 2.2 and 2.9.
2.2 Procedure for Revolving Credit Borrowing. The Borrower may
borrow under the Commitments during the Commitment Period on any Business Day,
provided that the Borrower shall give the Administrative Agent irrevocable
notice (which notice must be received by the Administrative Agent prior to 1:00
P.M., New York City time, (a) three Business Days prior to the requested
Borrowing Date, if all or any part of the requested Revolving Credit Loans are
to be initially LIBOR Loans, or (b) on the same Business Day of the requested
Borrowing Date, otherwise), specifying (i) the amount to be borrowed, (ii) the
requested Borrowing Date, (iii) whether the borrowing is to be of LIBOR Loans,
ABR Loans, or a combination thereof and (iv) if the borrowing is to be entirely
or partly of LIBOR Loans, the respective amounts of each such Type of Revolving
Credit Loan and the respective lengths of the initial Interest Periods therefor.
Each borrowing under the Commitments shall be in an amount equal to at least
$10,000,000 or a whole multiple of $1,000,000 in excess thereof (or, if the then
aggregate Available Commitments are less than $10,000,000, such lesser amount).
Upon receipt of any such notice from the Borrower, the Administrative Agent
shall promptly notify each Lender thereof. Except as contemplated by subsection
2.20(c), each Lender will make the amount of its pro rata share of each
borrowing available to the Administrative Agent for the account of the Borrower
at the office of the Administrative Agent specified in Section 10.2 prior to
2:00 P.M., New York City time, on the Borrowing Date requested by the Borrower
in funds immediately available to the Administrative Agent. Such borrowing will
then be made available to the Borrower by the Administrative Agent crediting the
account of the Borrower on the books of such office with the aggregate of the
amounts made available to the Administrative Agent by the Lenders and in like
funds as received by the Administrative Agent.
2.3 Term Loans. The Revolving Credit Loans outstanding at the close
of business New York City time on the Revolving Credit Termination Date shall,
at the option of the Borrower, subject to Section 4.2, be converted on such date
into term loans (the "Term Loans") to the Borrower. The Term Loans may from time
to time be (a) LIBOR Loans, (b) ABR Loans or (c) a combination thereof, as
determined by the Borrower and notified to the Administrative Agent in
accordance with Sections 2.4 and 2.9.
2.4 Procedure for Term Loan Borrowing. The Borrower shall give the
Administrative Agent irrevocable notice (which notice must be received by the
Administrative Agent prior to 10:00 A.M., New York City time, (a) three Business
Days prior to the Revolving
CREDIT AGREEMENT
17
Credit Termination Date, if all or any part of the Term Loans are to be
initially LIBOR Loans or (b) on the Revolving Credit Termination Date,
otherwise) if the Borrower intends to convert Revolving Credit Loans to Term
Loans pursuant to Section 2.3 and specifying (i) whether the resulting Term
Loans are to be initially LIBOR Loans, ABR Loans or a combination thereof, and
(ii) if the Term Loans are to be entirely or partly LIBOR Loans the respective
lengths of the initial Interest Periods therefor. Upon receipt of such notice
the Administrative Agent shall promptly notify each Lender thereof. The
aggregate principal amount of the Term Loans shall be equal to the aggregate
principal amount of the Revolving Credit Loans outstanding at the close of
business New York City time on the Revolving Credit Termination Date and the
Term Loans shall be deemed to have been made at such time without any payments
being made by the Lenders. Promptly after the making of its Term Loan each
Lender shall xxxx any Revolving Credit Note held by it "cancelled" and deliver
the same to the Borrower.
2.5 Facility Fee. The Borrower agrees to pay to the Administrative
Agent for the account of each Lender a facility fee for the period from and
including the first day of the Commitment Period to the Termination Date,
computed at a rate per annum equal to the Applicable Facility Fee Rate on (i)
the average daily Commitment of such Lender, whether or not utilized, from and
including the first day of the Commitment Period until the Revolving Credit
Termination Date, and on (ii) the outstanding principal amount of the Term Loans
of such Lender, if any, thereafter. Such facility fee shall be payable quarterly
in arrears on the last day of each March, June, September and December, on the
Revolving Credit Termination Date or the Termination Date, as applicable, or
such earlier date as the Commitments shall terminate as provided herein,
commencing on the first of such dates to occur after the date hereof.
2.6 Termination or Reduction of Commitments. The Borrower shall have
the right, upon not less than one Business Day's notice to the Administrative
Agent, to terminate the Commitments or, from time to time, to reduce the amount
of the Commitments, provided that after giving effect to such termination or
reduction, the aggregate outstanding principal amount of the Loans shall not
exceed the aggregate Commitments. Any such reduction shall be in an amount equal
to $10,000,000 or a whole multiple of $1,000,000 in excess thereof and shall
reduce permanently the Commitments then in effect. Termination or reduction of
the Commitments shall also terminate or reduce, as the case may be, the
obligation of the Lenders to make the Term Loans.
2.7 Repayment of Revolving Credit Loans and Term Loans; Evidence of
Debt. (a) The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of each Lender (i) subject to Section 2.3,
the then unpaid principal amount of each Revolving Credit Loan of such Lender on
the Revolving Credit Termination Date (or such earlier date on which the
Revolving Credit Loans become due and payable pursuant to Section 7), and (ii)
the principal amount of the Term Loan of such Lender on the Termination Date (or
the then unpaid principal amount of such Term Loan, on the date that the Term
Loans become due and payable pursuant to Section 7). The Borrower hereby further
agrees to pay interest on the unpaid principal amount of the Revolving Credit
Loans and Term Loans from time to time outstanding from the date hereof until
payment in full thereof at the rates per annum, and on the dates, set forth in
Section 2.16.
(b) Each Lender shall maintain in accordance with its usual practice
appropriate records evidencing indebtedness of the Borrower to such Lender
resulting from each Revolving Credit
CREDIT AGREEMENT
18
Loan and Term Loan of such Lender from time to time, including the amounts of
principal and interest payable and paid to such Lender from time to time under
this Agreement.
(c) The Administrative Agent shall maintain the Register pursuant to
subsection 10.6(e), and a record therein for each Lender, in which shall be
recorded (i) the amount of each Revolving Credit Loan and Term Loan made
hereunder, the Type thereof and each Interest Period applicable thereto, (ii)
the amount of any principal or interest due and payable or to become due and
payable from the Borrower to each Lender hereunder and (iii) both the amount of
any sum received by the Administrative Agent hereunder from the Borrower and
each Lender's share thereof.
(d) The entries made in the Register and the records of each Lender
maintained pursuant to subsection 2.7(b) shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of the Borrower therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain the Register or
any such record, or any error therein, shall not in any manner affect the
obligation of the Borrower to repay (with applicable interest) the Revolving
Credit Loans and Term Loans made to such Borrower by such Lender in accordance
with the terms of this Agreement.
(e) The Borrower agrees that, upon the request to the Administrative Agent
by any Lender, the Borrower will execute and deliver to such Lender (i) a
promissory note of the Borrower evidencing the Revolving Credit Loans of such
Lender, substantially in the form of Exhibit A with appropriate insertions as to
date and principal amount (a "Revolving Credit Note"), and/or (ii) a promissory
note of the Borrower evidencing the Term Loan of such Lender, substantially in
the form of Exhibit B with appropriate insertions as to date and principal
amount (a "Term Note").
2.8 Optional Prepayments. The Borrower may at any time and from time
to time prepay the Revolving Credit Loans or the Term Loans, in whole or in
part, without premium or penalty (subject to Section 2.24), upon at least two
Business Days' irrevocable notice to the Administrative Agent, if such
prepayment is to be applied in whole or in part to LIBOR Loans, and upon same
day notice otherwise (which notices shall be made on the relevant day not later
than 10:00 A.M., New York City time), specifying the date and amount of
prepayment and whether the prepayment is of LIBOR Loans, or a combination of
LIBOR and ABR Loans, and, if of a combination thereof, the amount allocable to
each; in the case of ABR Loans, notice shall be same day. Upon receipt of any
such notice the Administrative Agent shall promptly notify each Lender thereof.
If any such notice is given, the amount specified in such notice shall be due
and payable on the date specified therein, together with any accrued interest to
such date on the amount prepaid and any other amounts payable pursuant to
Section 2.24. Amounts prepaid on account of the Term Loans may not be
reborrowed. Partial prepayments shall be in an aggregate principal amount of
$10,000,000 or a whole multiple of $1,000,000 in excess thereof. The Borrower
shall not have the right to prepay any principal amount of any CAF Advance
except as provided in subsection 2.12(a). Prepayments of any Swing Line Loan
shall be as provided in subsection 2.20(a).
2.9 Conversion and Continuation Options. (a) The Borrower may elect
from time to time to convert LIBOR Loans to ABR Loans, by giving the
Administrative Agent at least three Business Days' prior irrevocable notice of
such election, provided that any such conversion of LIBOR Loans may only be made
on the last day of an Interest Period with respect thereto.
CREDIT AGREEMENT
19
The Borrower may elect from time to time to convert ABR Loans to LIBOR Loans by
giving the Administrative Agent at least three Business Days' prior irrevocable
notice of such election. Any such notice of conversion to LIBOR Loans shall
specify the length of the initial Interest Period or Interest Periods therefor.
Upon receipt of any such notice the Administrative Agent shall promptly notify
each Lender thereof. All or any part of outstanding LIBOR Loans and ABR Loans
may be converted as provided herein, provided that (i) no Revolving Credit Loan
or Term Loan may be converted into a LIBOR Loan when any Event of Default has
occurred and is continuing and the Administrative Agent has or the Required
Lenders have determined that such a conversion is not appropriate, and (ii) no
Swing Line Loan may be converted into a loan that bears interest at any rate
other than the ABR.
(b) Any LIBOR Loans may be continued as such upon the expiration of the
then current Interest Period with respect thereto by the Borrower giving notice
to the Administrative Agent, in accordance with the applicable provisions of the
term "Interest Period" set forth in Section 1.1, of the length of the next
Interest Period to be applicable to such Revolving Credit Loans, provided that
no LIBOR Loan may be continued as such when any Event of Default has occurred
and is continuing and the Administrative Agent has or the Required Lenders have
determined that such a continuation is not appropriate; and provided, further,
that if the Borrower shall fail to give such notice or if such continuation is
not permitted such Revolving Credit Loans shall be automatically converted to
ABR Loans on the last day of such then expiring Interest Period.
2.10 CAF Advances. Subject to the terms and conditions of this
Agreement, the Borrower may borrow CAF Advances from time to time on any
Business Day during the CAF Advance Availability Period. CAF Advances may be
borrowed in amounts such that the aggregate principal amount of all Loans
outstanding at any time shall not exceed the aggregate amount of the Commitments
at such time. Within the limits and on the conditions hereinafter set forth with
respect to CAF Advances, the Borrower may from time to time borrow, repay and
reborrow CAF Advances.
2.11 Procedure for CAF Advance Borrowing. (a) The Borrower shall
request CAF Advances by delivering a CAF Advance Request to the Administrative
Agent, not later than 1:00 P.M. (New York City time), four Business Days prior
to the proposed Borrowing Date (in the case of a LIBOR CAF Advance Request), and
not later than 11:00 A.M. (New York City time), one Business Day prior to the
proposed Borrowing Date (in the case of a Fixed Rate CAF Advance Request). Each
CAF Advance Request in respect of any Borrowing Date may solicit bids for CAF
Advances on such Borrowing Date in an aggregate principal amount of $10,000,000
or an integral multiple of $1,000,000 in excess thereof and having not more than
three alternative CAF Advance Maturity Dates. The CAF Advance Maturity Date for
each CAF Advance shall be the date set forth therefor in the relevant CAF
Advance Request, which date shall be (i) not less than 7 days nor more than 60
days after the Borrowing Date therefor, in the case of a Fixed Rate CAF Advance,
(ii) one or two months after the Borrowing Date therefor, in the case of a LIBOR
CAF Advance and (iii) not later than the Revolving Credit Termination Date, in
the case of any CAF Advance. The Administrative Agent shall notify each Lender
promptly by facsimile transmission of the contents of each CAF Advance Request
received by the Administrative Agent.
(b) In the case of a LIBOR CAF Advance Request, upon receipt of notice
from the Administrative Agent of the contents of such CAF Advance Request, each
Lender may elect, in its sole discretion, to offer irrevocably to make one or
more CAF Advances at the applicable
CREDIT AGREEMENT
00
Xxxxxx Xxxxxxxxx Offered Rate plus (or minus) a margin determined by such Lender
in its sole discretion for each such CAF Advance. Any such irrevocable offer
shall be made by delivering a CAF Advance Offer to the Administrative Agent,
before 10:30 A.M., New York City time, on the day that is three Business Days
before the proposed Borrowing Date, setting forth:
(i) the maximum amount of CAF Advances for each CAF Advance Maturity
Date and the aggregate maximum amount of CAF Advances for all CAF Advance
Maturity Dates which such Lender would be willing to make (which amounts
may, subject to Section 2.10, exceed such Lender's Commitment); and
(ii) the margin above or below the applicable London Interbank
Offered Rate at which such Lender is willing to make each such CAF
Advance.
The Administrative Agent shall advise the Borrower before 11:00 A.M., New
York City time, on the date which is three Business Days before the
proposed Borrowing Date of the contents of each such CAF Advance Offer
received by it. If the Administrative Agent, in its capacity as a Lender,
shall elect, in its sole discretion, to make any such CAF Advance Offer,
it shall advise the Borrower of the contents of its CAF Advance Offer
before 10:15 A.M., New York City time, on the date which is three Business
Days before the proposed Borrowing Date.
(c) In the case of a Fixed Rate CAF Advance Request, upon receipt of
notice from the Administrative Agent of the contents of such CAF Advance
Request, each Lender may elect, in its sole discretion, to offer irrevocably to
make one or more CAF Advances at a rate of interest determined by such Lender in
its sole discretion for each such CAF Advance. Any such irrevocable offer shall
be made by delivering a CAF Advance Offer to the Administrative Agent before
9:30 A.M., New York City time, on the proposed Borrowing Date, setting forth:
(i) the maximum amount of CAF Advances for each CAF Advance Maturity
Date, and the aggregate maximum amount for all CAF Advance Maturity Dates,
which such Lender would be willing to make (which amounts may, subject to
Section 2.10, exceed such Lender's Commitment); and
(ii) the rate of interest at which such Leader is willing to make
each such CAF Advance.
The Administrative Agent shall advise the Borrower before 10:00 A.M., New
York City time, on the proposed Borrowing Date of the contents of each
such CAF Advance Offer received by it. If the Administrative Agent, in its
capacity as a Lender, shall elect, in its sole discretion, to make any
such CAF Advance Offer, it shall advise the Borrower of the contents of
its CAF Advance Offer before 9:15 A.M., New York City time, on the
proposed Borrowing Date.
(d) Before 11:30 A.M., New York City time, three Business Days before the
proposed Borrowing Date (in the case of CAF Advances requested by a LIBOR CAF
Advance Request) and before 10:30 A.M., New York City time, on the proposed
Borrowing Date (in the case of CAF Advances requested by a Fixed Rate CAF
Advance Request), the Borrower, in its absolute discretion, shall:
CREDIT AGREEMENT
21
(i) cancel such CAF Advance Request by giving the Administrative
Agent telephone notice to that effect, or
(ii) by giving telephone notice to the Administrative Agent
(immediately confirmed by delivery to the Administrative Agent of a CAF
Advance Confirmation by facsimile transmission) (A) subject to the
provisions of subsection 2.11(e), accept one or more of the offers made by
any Lender or Lenders pursuant to subsection 2.11(b) or subsection
2.11(c), as the case may be, and (B) reject any remaining offers made by
Lenders pursuant to subsection 2.11(b) or subsection 2.11(c), as the case
may be.
(e) The Borrower's acceptance of CAF Advances in response to any CAF
Advance Offers shall be subject to the following limitations:
(i) the amount of CAF Advances accepted for each CAF Advance
Maturity Date specified by any Lender in its CAF Advance Offer shall not
exceed the maximum amount for such CAF Advance Maturity Date specified in
such CAF Advance Offer;
(ii) the aggregate amount of CAF Advances accepted for all CAF
Advance Maturity Dates specified by any Lender in its CAF Advance Offer
shall not exceed the aggregate maximum amount specified in such CAF
Advance Offer for all such CAF Advance Maturity Dates;
(iii) the Borrower may not accept offers for CAF Advances for any
CAF Advance Maturity Date in an aggregate principal amount in excess of
the maximum principal amount requested in the related CAF Advance Request;
and
(iv) if the Borrower accepts any of such offers, it must accept
offers based solely upon pricing for each relevant CAF Advance Maturity
Date and upon no other criteria whatsoever, and if two or more Lenders
submit offers for any CAF Advance Maturity Date at identical pricing and
the Borrower accepts any of such offers but does not wish to (or, by
reason of the limitations set forth in Section 2.10, cannot) borrow the
total amount offered by such Lenders with such identical pricing, the
Borrower shall accept offers from all of such Lenders in amounts allocated
among them pro rata according to the amounts offered by such Lenders (with
appropriate rounding, in the sole discretion of the Borrower, to assure
that each accepted CAF Advance is an integral multiple of $1,000,000);
provided that if the number of Lenders that submit offers for any CAF
Advance Maturity Date at identical pricing is such that, after the
Borrower accepts such offers pro rata in accordance with the foregoing
provisions of this paragraph, the CAF Advance to be made by any such
Lender would be less than $5,000,000 principal amount, the number of such
Lenders shall be reduced by the Administrative Agent by lot until the CAF
Advances to be made by each such remaining Lender would be in a principal
amount of $5,000,000 or an integral multiple of $1,000,000 in excess
thereof.
(f) If the Borrower notifies the Administrative Agent that a CAF Advance
Request is cancelled pursuant to subsection 2.11(d)(i), the Administrative Agent
shall give prompt telephone notice thereof to the Lenders.
(g) If the Borrower accepts pursuant to subsection 2.11(d)(ii) one or more
of the offers made by any Lender or Lenders, the Administrative Agent promptly
shall notify each Lender
CREDIT AGREEMENT
22
which has made such an offer of (i) the aggregate amount of such CAF Advances to
be made on such Borrowing Date for each CAF Advance Maturity Date and (ii) the
acceptance or rejection of any offers to make such CAF Advances made by such
Lender. Before 12:00 Noon (New York City time) on the Borrowing Date specified
in the applicable CAF Advance Request, each Lender whose CAF Advance Offer has
been accepted shall make available to the Administrative Agent at its office set
forth in Section 10.2 the amount of CAF Advances to be made by such Lender, in
immediately available funds. The Administrative Agent will make such funds
available to the Borrower as soon as practicable on such date at such office of
the Administrative Agent. As soon as practicable after each Borrowing Date, the
Administrative Agent shall notify each Lender of the aggregate amount of CAF
Advances advanced on such Borrowing Date and the respective CAF Advance Maturity
Dates thereof.
2.12 CAF Advance Payments. (a) The Borrower hereby unconditionally
promises to pay to the Administrative Agent, for the account of each Lender
which has made a CAF Advance, on the applicable CAF Advance Maturity Date, the
then unpaid principal amount of such CAF Advance. The Borrower shall not have
the right to prepay any principal amount of any CAF Advance without the consent
of the Lender to which such CAF Advance is owed.
(b) The Borrower hereby further agrees to pay interest on the unpaid
principal amount of each CAF Advance from the Borrowing Date of such CAF Advance
to the applicable CAF Advance Maturity Date at the rate of interest specified in
the CAF Advance Offer accepted by the Borrower in connection with such CAF
Advance (calculated on the basis of a 360-day year for actual days elapsed),
payable on each applicable CAF Advance Interest Payment Date.
(c) If any principal of, or interest on, any CAF Advance shall not be paid
when due (whether at the stated maturity, by acceleration or otherwise), such
CAF Advance shall, without limiting any rights of any Lender under this
Agreement, bear interest from the date on which such payment was due at a rate
per annum which is 2% per annum above the rate which would otherwise be
applicable to such CAF Advance until the stated CAF Advance Maturity Date of
such CAF Advance, and for each day thereafter at a rate per annum which is 2%
per annum above the ABR, in each case until paid in full (as well after as
before judgment). Interest accruing pursuant to this paragraph (c) shall be
payable from time to time on demand.
2.13 Evidence of Debt. Each Lender shall maintain in accordance with
its usual practice appropriate records evidencing indebtedness of the Borrower
to such Lender resulting from each CAF Advance of such Lender from time to time,
including the amounts of principal and interest payable and paid to such Lender
from time to time in respect of such CAF Advance. The Administrative Agent shall
maintain the Register pursuant to subsection 10.6(e), and a record therein for
each Lender, in which shall be recorded (i) the amount of each CAF Advance made
by such Lender, the CAF Advance Maturity Date thereof, the interest rate
applicable thereto and each CAF Advance Interest Payment Date applicable
thereto, and (ii) the amount of any sum received by the Administrative Agent
hereunder from the Borrower on account of such CAF Advance. The entries made in
the Register and the records of each Lender maintained pursuant to this Section
shall, to the extent permitted by applicable law, be prima facie evidence of the
existence and amounts of the obligations of the Borrower therein recorded;
provided, however, that the failure of any Lender or the Administrative Agent to
maintain the Register or any such record, or any error therein, shall not in any
manner affect the obligation of the Borrower to repay (with applicable interest)
the CAF Advances made by such Lender in accordance with the terms of this
Agreement.
CREDIT AGREEMENT
23
2.14 Certain Restrictions. A CAF Advance Request may request offers
for CAF Advances to be made on not more than one Borrowing Date and to mature on
not more than three CAF Advance Maturity Dates. No CAF Advance Request may be
submitted earlier than five Business Days after submission of any other CAF
Advance Request.
2.15 Minimum Amounts of Tranches. All borrowings, conversions and
continuations of Revolving Credit Loans and Term Loans hereunder and all
selections of Interest Periods hereunder shall be in such amounts and be made
pursuant to such elections so that, after giving effect thereto, the aggregate
principal amount of the Revolving Credit Loans and Term Loans comprising each
LIBOR Tranche shall be equal to $10,000,000 or a whole multiple of $1,000,000 in
excess thereof. In no event shall there be more than five LIBOR Tranches
outstanding at any time.
2.16 Interest Rates and Payment Dates. (a) Each LIBOR Loan shall
bear interest for each day during each Interest Period with respect thereto at a
rate per annum equal to the London Interbank Offered Rate for such Interest
Period plus the Applicable Margin.
(b) Each ABR Loan and Swing Line Loan shall bear interest at a rate per
annum equal to the ABR. Each CAF Advance shall bear interest as provided in
Section 2.10.
(c) If all or a portion of (i) any principal of any Revolving Credit Loan,
Term Loan or Swing Line Loan, (ii) any interest payable thereon, (iii) any
facility fee or (iv) any other amount payable hereunder (other than overdue CAF
payments provided for in subsection 2.12(c)) shall not be paid when due (whether
at the stated maturity, by acceleration or otherwise), the principal of the
Revolving Credit Loans, Term-Loans and the Swing Line Loans and any such overdue
interest, facility fee or other amount shall bear interest at a rate per annum
which is (x) in the case of principal, the rate that would otherwise be
applicable thereto pursuant to the foregoing provisions of this Section plus 2%
per annum or (y) in the case of any such overdue interest, facility fee or other
amount, the rate applicable to ABR Loans pursuant to subsection 2.16(b) plus 2%
per annum, in each case from the date of such non-payment until such overdue
principal, interest, facility fee or other amount is paid in full (as well after
as before judgment).
(d) Interest on Revolving Credit Loans, Term Loans and Swing Line Loans
shall be payable in arrears on each Interest Payment Date, provided that
interest accruing pursuant to paragraph (c) of this Section shall be payable
from time to time on demand.
2.17 Computation of Interest and Fees. (a) Whenever it is calculated
on the basis of the ABR, interest shall be calculated on the basis of a 365- (or
366-, as the case may be) day year for the actual days elapsed; and, otherwise,
interest and the facility fee shall be calculated on the basis of a 360-day year
for the actual days elapsed. The Administrative Agent shall as soon as
practicable notify the Borrower and the Lenders of each determination of a
London Interbank Offered Rate. Any change in the interest rate on a Loan
resulting from a change in the ABR, the Eurocurrency Reserve Requirements, the
C/D Assessment Rate or the C/D Reserve Percentage shall become effective as of
the opening of business on the day on which such change becomes effective. The
Administrative Agent shall as soon as practicable notify the Borrower and the
Lenders of the effective date and the amount of each such change in interest
rate.
CREDIT AGREEMENT
24
(b) Each determination of an interest rate by the Administrative Agent
pursuant to any provision of this Agreement shall be conclusive and binding on
the Borrower and the Lenders in the absence of manifest error. The
Administrative Agent shall, at the request of the Borrower, deliver to the
Borrower a statement showing the quotations used by the Administrative Agent in
determining any interest rate pursuant to subsection 2.16(a) or 2.9(b).
2.18 Inability to Determine Interest Rate. If prior to the first day
of any Interest Period:
(a) the Administrative Agent shall have determined (which determination
shall be conclusive and binding upon the Borrower) that, by reason of
circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the London Interbank Offered Rate for such Interest
Period, or
(b) the Administrative Agent shall have received notice from the Required
Lenders that the London Interbank Offered Rate determined or to be determined
for such Interest Period will not adequately and fairly reflect the cost to such
Lenders (as conclusively certified by such Lenders) of making or maintaining
their affected Loans during such Interest Period,
the Administrative Agent shall give telecopy or telephonic notice thereof to the
Borrower and the Lenders as soon as practicable thereafter. If such notice is
given (x) any LIBOR Loans requested to be made on the first day of such Interest
Period shall be made as ABR Loans, (y) any Loans that were to have been
converted on the first day of such Interest Period to LIBOR Loans, shall be
converted to or continued as ABR Loans and (z) any outstanding LIBOR Loans shall
be converted, on the first day of such Interest Period, to ABR Loans. Until such
notice has been withdrawn by the Administrative Agent, no further LIBOR Loans
shall be made or continued as such, nor shall the Borrower have the right to
convert Loans to LIBOR Loans, as the case may be.
2.19 Pro Rata Treatment and Payments. (a) Each borrowing of
Revolving Credit Loans and Term Loans by the Borrower from the Lenders
hereunder, each payment by the Borrower on account of any facility fee hereunder
and any reduction of the Commitments of the Lenders shall be made pro rata
according to the respective Commitment Percentages of the Lenders. Each payment
(including each prepayment) by the Borrower on account of principal of and
interest on any Loans shall be made pro rata according to the respective
outstanding principal amounts of such Loans then held by the Lenders. All
payments (including prepayments) to be made by the Borrower hereunder, whether
on account of principal, interest, fees or otherwise, shall be made without
set-off or counterclaim and shall be made prior to 2:00 P.M., New York City
time, on the due date thereof to the Administrative Agent, for the account of
the Lenders, at the Administrative Agent's office specified in Section 10.2, in
Dollars and in immediately available funds. The Administrative Agent shall
distribute such payments to the Lenders promptly upon receipt in like funds as
received. If any payment hereunder becomes due and payable on a day other than a
Business Day, such payment shall be extended to the next succeeding Business
Day, and, with respect to payments of principal, interest thereon shall be
payable at the then applicable rate during such extension.
(b) Unless the Administrative Agent shall have been notified in writing by
any Lender prior to a borrowing that such Lender will not make the amount that
would constitute its allocable share of such borrowing available to the
Administrative Agent, the Administrative
CREDIT AGREEMENT
25
Agent may assume that such Lender is making such amount available to the
Administrative Agent, and the Administrative Agent may, in reliance upon such
assumption, make available to the Borrower a corresponding amount. If such
amount is not made available to the Administrative Agent by the required time on
the Borrowing Date therefor, such Lender shall pay to the Administrative Agent,
on demand, such amount with interest thereon at a rate equal to the daily
average Federal Funds Rate for the period until such Lender makes such amount
immediately available to the Administrative Agent. A certificate of the
Administrative Agent submitted to any Lender with respect to any amounts owing
under this Section shall be conclusive in the absence of manifest error. If such
Lender's Commitment Percentage of such borrowing is not made available to the
Administrative Agent by such Lender within three Business Days of such Borrowing
Date, the Administrative Agent shall also be entitled to recover such amount
with interest thereon at the rate per annum applicable to ABR Loans hereunder,
on demand, from the Borrower.
2.20 Swing Line Commitment. (a) Subject to the terms and conditions
hereof, the Swing Line Lender agrees to make swing line loans ("Swing Line
Loans") to the Borrower from time to time during the Commitment Period in an
aggregate principal amount at any one time outstanding not to exceed
$200,000,000, provided that the aggregate principal amount of all Loans
outstanding at any one time shall not exceed the aggregate amount of the
Commitments at such time. During the Commitment Period, the Borrower may use the
Swing Line Commitment by borrowing, prepaying the Swing Line Loans in whole or
in part, and reborrowing, all in accordance with the terms and conditions
hereof. All Swing Line Loans shall bear interest based upon the ABR and shall
not be entitled to be converted into loans that bear interest at any other rate.
The Borrower shall give the Swing Line Lender irrevocable notice (which notice
must be received by the Swing Line Lender prior to 3:00 P.M., New York City
time, on the requested Borrowing Date specifying the amount of the requested
Swing Line Loan which shall be in a minimum amount of $100,000 or a whole
multiple of $50,000 in excess thereof). The proceeds of the Swing Line Loan will
be made available by the Swing Line Lender to the Borrower at the office of the
Swing Line Lender by 4:00 P.M., New York City time, on the Borrowing Date by
crediting the account of the Borrower at such office with such proceeds. The
Borrower may, at any time and from time to time, prepay the Swing Line Loans, in
whole or in part, without premium or penalty, by notifying the Swing Line Lender
prior to 3:00 P.M., New York City time, on any Business Day of the date and
amount of prepayment. If any such notice is given, the amount specified in such
notice shall be due and payable on the date specified therein. Partial
prepayments shall be in an aggregate principal amount of $100,000 or a whole
multiple of $50,000 in excess thereof.
(b) The Swing Line Loans shall, at the request of the Swing Line Lender,
be evidenced by and repayable with interest in accordance with a promissory note
of the Borrower substantially in the form of Exhibit C to this Agreement, with
appropriate insertions (the "Swing Line Note"), payable to the order of the
Swing Line Lender and representing the obligation of the Borrower to pay the
amount of the Swing Line Commitment or, if less, the unpaid principal amount of
the Swing Line Loans, with interest thereon as prescribed in Section 2.16. The
Swing Line Lender is hereby authorized to record the Borrowing Date, the amount
of each Swing Line Loan and the date and amount of each payment or prepayment of
principal thereof, on the schedule annexed to and constituting a part of the
Swing Line Note and any such recordation shall constitute prima facie evidence
of the accuracy of the information so recorded, provided that the failure by the
Swing Line Lender to make any such recordation shall not affect any of the
obligations of the Borrower under such Swing Line Note or this Agreement. The
Swing Line
CREDIT AGREEMENT
26
Note shall (a) be dated the Closing Date, (b) be stated to mature on the
Revolving Credit Termination Date and (c) bear interest for the period from the
date thereof until paid in full on the unpaid principal amount thereof from time
to time outstanding at the applicable interest rate per annum determined as
provided in, and payable as specified in, Section 2.16.
(c) The Swing Line Lender at any time in its sole and absolute discretion
may, on behalf of the Borrower (which hereby irrevocably directs the Swing Line
Lender to act on its behalf) request each Lender, including the Swing Line
Lender, to make a Revolving Credit Loan that shall be initially an ABR Loan in
an amount equal to such Lender's Commitment Percentage of the amount of the
Swing Line Loans outstanding on the date such notice is given (the "Outstanding
Swing Line Loans"). Unless any of the events described in paragraph (f) of
Section 7 shall have occurred with respect to the Borrower (in which event the
procedures of paragraph (e) of this Section shall apply) each Lender shall make
the proceeds of its Revolving Credit Loan available to the Administrative Agent
for the account of the Swing Line Lender at the office of the Administrative
Agent specified in Section 10.2 prior to 12:00 Noon (New York City time) in
funds immediately available on the Business Day next succeeding the date such
notice is given. The proceeds of such Revolving Credit Loans shall be
immediately applied to repay the Outstanding Swing Line Loans. Effective on the
day such Revolving Credit Loans are made, the portion of the Swing Line Loans so
paid shall no longer be outstanding as Swing Line Loans, shall no longer be due
under the Swing Line Note and shall be evidenced as provided in subsection
2.7(b). The Borrower authorizes the Swing Line Lender to charge the Borrower's
accounts with the Administrative Agent (up to the amount available in each such
account) in order to immediately pay the amount of such Outstanding Swing Line
Loans to the extent amounts received from the Lenders are not sufficient to
repay in full such Outstanding Swing Line Loans.
(d) Notwithstanding anything herein to the contrary, the Swing Line Lender
shall not be obligated to make any Swing Line Loans if the conditions set forth
in Section 4.2 have not been satisfied.
(e) If prior to the making of a Revolving Credit Loan pursuant to
subsection 2.20(c) one of the events described in paragraph (f) of Section 7
shall have occurred and be continuing with respect to the Borrower, each Lender
will, on the date such Revolving Credit Loan was to have been made pursuant to
the notice in subsection 2.20(c), purchase an undivided participating interest
in the Outstanding Swing Line Loan in an amount equal to (i) its Commitment
Percentage times (ii) the aggregate principal amount of Swing Line Loans then
outstanding. Each Lender will immediately transfer to the Swing Line Lender, in
immediately available funds, the amount of its participation, and upon receipt
thereof the Swing Line Lender will deliver to such Lender a Swing Line Loan
Participation Certificate dated the date of receipt of such funds and in such
amount.
(f) Whenever, at any time after any Lender has purchased a participating
interest in a Swing Line Loan, the Swing Line Lender receives any payment on
account thereof, the Swing Line Lender will distribute to such Lender its
participating interest in such amount (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such Lender's
participating interest was outstanding and funded); provided, however, that in
the event that such payment received by the Swing Line Lender is required to be
returned, such Lender will return to the Swing Line Lender any portion thereof
previously distributed by the Swing Line Lender to it.
CREDIT AGREEMENT
27
(g) Each Lender's obligation to make the Revolving Credit Loans referred
to in subsection 2.20(c) and to purchase participating interests pursuant to
subsection 2.20(e) shall be absolute and unconditional and shall not be affected
by any circumstance, including, without limitation, (i) any set-off,
counterclaim, recoupment, defense or other right which such Lender or the
Borrower may have against the Swing Line Lender, the Borrower or any other
Person for any reason whatsoever, (ii) the occurrence or continuance of a
Default or an Event of Default; (iii) any adverse change in the condition
(financial or otherwise) of the Borrower; (iv) any breach of this Agreement or
any other Loan Document by the Borrower, any Subsidiary or any other Lender; or
(v) any other circumstance, happening or event whatsoever, whether or not
similar to any of the foregoing.
2.21 Illegality. Notwithstanding any other provision herein, if the
adoption of or any change in any Requirement of Law or in the interpretation or
application thereof shall make it unlawful for any Lender to make or maintain
LIBOR Loans as contemplated by this Agreement, (a) the commitment of such Lender
hereunder to make LIBOR Loans, continue LIBOR Loans as such and convert ABR
Loans to LIBOR Loans shall forthwith be cancelled and (b) such Lender's Loans
then outstanding as LIBOR Loans, if any, shall be converted automatically to ABR
Loans on the respective last days of the then current Interest Periods with
respect to such Loans or within such earlier period as required by law. If any
such conversion of a LIBOR Loan occurs on a day which is not the last day of the
then current Interest Period with respect thereto, the Borrower shall pay to
such Lender such amounts, if any, as may be required pursuant to Section 2.22.
2.22 Requirements of Law. (a) If the adoption of or any change in
any Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:
(i) shall subject any Lender to any tax of any kind whatsoever with
respect to this Agreement, any Note or any LIBOR Loan made by it, or
change the basis of taxation of payments to such Lender in respect thereof
(except for Non-Excluded Taxes covered by Section 2.23 and changes in the
rate of tax on the overall net income of such Lender);
(ii) shall impose, modify or hold applicable any reserve, special
deposit, compulsory loan or similar requirement against assets held by,
deposits or other liabilities in or for the account of, advances, loans or
other extensions of credit by, or any other acquisition of funds by, any
office of such Lender which is not otherwise included in the determination
of the London Interbank Offered Rate hereunder; or
(iii) shall impose on such Lender any other condition;
and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making, converting into,
continuing or maintaining LIBOR Loans or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, the Borrower shall
promptly pay such Lender such additional amount or amounts as will compensate
such Lender for such increased cost or reduced amount receivable.
(b) If any Lender shall have determined that the adoption of or any change
in any Requirement of Law regarding capital adequacy or in the interpretation or
application thereof or
CREDIT AGREEMENT
28
compliance by such Lender or any corporation controlling such Lender with any
request or directive regarding capital adequacy (whether or not having the force
of law) from any Governmental Authority made subsequent to the date hereof shall
have the effect of reducing the rate of return on such Lender's or such
corporation's capital as a consequence of its obligations hereunder to a level
below that which such Lender or such corporation could have achieved but for
such adoption, change or compliance (taking into consideration such Lender's or
such corporation's policies with respect to capital adequacy) by an amount
deemed by such Lender to be material, then from time to time, the Borrower shall
promptly pay to such Lender such additional amount or amounts as will compensate
such Lender for such reduction.
(c) If any Lender becomes entitled to claim any additional amounts
pursuant to paragraphs (a) or (b) of this Section 2.22, it shall promptly notify
the Borrower (with a copy to the Administrative Agent) of the event by reason of
which it has become so entitled and of the basis for the calculation of such
additional amounts; provided that the Borrower shall not be required to
compensate a Lender pursuant to such paragraph for any increased costs incurred
more than 180 days prior to the date that such Lender notifies the Borrower of
the change giving rise to such increased costs and of such Lender's intention to
claim compensation therefor; provided, further that, if the change giving rise
to such increased costs is retroactive, then the 180-day period referred to
above shall be extended to include the period of retroactive effect thereof. A
certificate as to any additional amounts payable pursuant to this Section
submitted by such Lender to the Borrower (with a copy to the Administrative
Agent) shall be conclusive in the absence of manifest error. The agreements in
this Section shall survive the termination of this Agreement and the payment of
the Loans and all other amounts payable hereunder.
2.23 Taxes. (a) All payments made by the Borrower under this
Agreement and any Notes shall be made free and clear of, and without deduction
or withholding for or on account of, any present or future income, stamp or
other taxes, levies, imposts, duties, charges, fees, deductions or withholdings,
now or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, excluding net income taxes and franchise taxes (imposed
in lieu of net income taxes) imposed on the Administrative Agent or any Lender
as a result of a present or former connection between the Administrative Agent
or such Lender and the jurisdiction of the Governmental Authority imposing such
tax or any political subdivision or taxing authority thereof or therein (other
than any such connection arising solely from the Administrative Agent or such
Lender having executed, delivered or performed its obligations or received a
payment under, or enforced, this Agreement or any Note). If any such
non-excluded taxes, levies, imposts, duties, charges, fees deductions or
withholdings ("Non-Excluded Taxes" ) are required to be withheld from any
amounts payable to the Administrative Agent or any Lender hereunder or under any
Note, the amounts so payable to the Administrative Agent or such Lender shall be
increased to the extent necessary to yield to the Administrative Agent or such
Lender (after payment of all Non-Excluded Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts specified in this
Agreement, provided, however, that the Borrower shall not be required to
increase any such amounts payable to any Lender that is not organized under the
laws of the United States or a state thereof if such Lender fails to comply with
the requirements of paragraph (b) of this Section. Whenever any Non-Excluded
Taxes are payable by the Borrower, as promptly as possible thereafter the
Borrower shall send to the Administrative Agent for its own account or for the
account of such Lender, as the case may be, a certified copy of an original
official receipt received by the Borrower showing payment thereof. If the
Borrower fails to pay any Non-Excluded Taxes when due to the appropriate taxing
authority or fails to remit to the Administrative Agent the required receipts or
other
CREDIT AGREEMENT
29
required documentary evidence, the Borrower shall indemnify the Administrative
Agent and the Lenders for any incremental taxes, interest or penalties that may
become payable by the Administrative Agent or any Lender as a result of any such
failure. The agreements in this Section shall survive the termination of this
Agreement and the payment of the Loans and all other amounts payable hereunder.
(b) Each Lender that is not incorporated under the laws of the United
States or a state thereof shall:
(i) deliver to the Borrower and the Administrative Agent two duly
completed copies of United States Internal Revenue Service Form W-8 BEN or
W-8 ECI, or successor applicable form, as the case may be;
(ii) deliver to the Borrower and the Administrative Agent two
further copies of any such form or certification on or before the date
that any such form or certification expires or becomes obsolete and after
the occurrence of any event requiring a change in the most recent form
previously delivered by it to the Borrower; and
(iii) obtain such extensions of time for filing and complete such
forms or certifications as may reasonably be requested by the Borrower or
the Administrative Agent;
unless in any such case an event (including, without limitation, any change in
treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Lender from duly completing and delivering any such
form with respect to it and such Lender so advises the Borrower and the
Administrative Agent. Such Lender shall certify that it is entitled to receive
payments under this Agreement without deduction or withholding of any United
States federal income taxes. Each Person that shall become a Lender or a
Participant pursuant to Section 10.6 shall, upon the effectiveness of the
related transfer, be required to provide all of the forms and statements
required pursuant to this Section, provided that in the case of a Participant
such Participant shall furnish all such required forms and statements to the
Lender from which the related participation shall have been purchased.
2.24 Indemnity. The Borrower agrees to indemnify each Lender and to
hold each Lender harmless from any loss or expense which such Lender may sustain
or incur as a consequence of (a) default by the Borrower in making either (i) a
borrowing of LIBOR Loans (including without limitation Term Loans) or LIBOR CAF
Advances or (ii) a conversion into or continuation of LIBOR Loans, in each case
after the Borrower has given a notice requesting the same in accordance with the
provisions of this Agreement (in the case of a borrowing of LIBOR CAF Advances,
so long as the Borrower shall have accepted a CAF Advance offered in connection
with any such notice), (b) default by the Borrower in making any prepayment
after the Borrower has given a notice thereof in accordance with the provisions
of this Agreement or (c) the making of either (i) a prepayment of LIBOR Loans,
LIBOR CAF Advances or Fixed Rate CAF Advances or (ii) a conversion of LIBOR
Loans, in each case on a day which is not the last day of an Interest Period
with respect thereto. Such indemnification shall constitute an amount equal to
the excess, if any, of (i) the amount of interest which would have accrued on
the amount so prepaid, or not so borrowed, converted or continued, for the
period from the date of such prepayment or of such failure to borrow, convert or
continue to the last day of such Interest
CREDIT AGREEMENT
30
Period (or, in the case of a failure to borrow, convert or continue, the
Interest Period that would have commenced on the date of such failure) in each
case at the applicable rate of interest for such Loans provided for herein
(excluding, however, the Applicable Margin included therein, if any) over (ii)
the amount of interest (as reasonably determined by such Lender) which would
have accrued to such Lender on such amount by placing such amount on deposit for
a comparable period with leading banks in the interbank eurodollar market. This
covenant shall survive the termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder.
2.25 Commitment Increases. (a) In the event that Borrower wishes to
increase the aggregate Commitments, it shall notify the Lenders (through the
Administrative Agent) of the amount of such proposed increase (such notice, a
"Commitment Increase Offer"). Each Commitment Increase Offer shall offer the
Lenders the opportunity to participate in the increased Commitments ratably in
accordance with their respective Commitment Percentages. In the event that any
Lender (each, a "Declining Lender") shall fail to accept in writing a Commitment
Increase Offer within 10 Business Days after receiving notice thereof, all or
any portion of the proposed increase in the Commitments offered to the Declining
Lenders (the aggregate of such offered amounts, the "Declined Amount") may
instead be allocated to any one or more additional banks, financial institutions
or other entities pursuant to paragraph (b) below and/or to any one or more
existing Lenders pursuant to paragraph (c)(ii) below.
(b) Any additional bank, financial institution or other entity (herein
called a "New Lender") which, with the consent of the Borrower and the
Administrative Agent, elects to become a party to this Agreement and obtain a
Commitment in an amount equal to all or any portion of a Declined Amount shall
execute a New Lender Supplement (each, a "New Lender Supplement") with the
Borrower and the Administrative Agent, substantially in the form of Exhibit K-1,
whereupon such New Lender shall become a Lender for all purposes and to the same
extent as if originally a party hereto and shall be bound by and entitled to the
benefits of this Agreement, and Schedule 1.2 shall be deemed to be amended to
add the name and Commitment of such New Lender.
(c) Any Lender which (i) accepts a Commitment Increase Offer pursuant to
subsection 2.25(a) or (ii) with the consent of the Borrower, elects to increase
its Commitment by an amount equal to all or any portion of a Declined Amount
shall, in each case, execute a Commitment Increase Supplement (each, a
"Commitment Increase Supplement") with the Borrower and the Administrative
Agent, substantially in the form of Exhibit K-2, whereupon such Lender shall be
bound by and entitled to the benefits of this Agreement with respect to the full
amount of its Commitment as so increased, and Schedule 1.2 shall be deemed to be
amended to so increase the Commitment of such Lender.
(d) If on the date upon which a bank, financial institution or other
entity becomes a New Lender pursuant to subsection 2.25(b) or upon which a
Lender's Commitment is increased pursuant to subsection 2.25(c) there is an
unpaid principal amount of Revolving Credit Loans, the Borrower shall borrow
Revolving Credit Loans from the Lenders and/or (subject to compliance by the
Borrower with Section 2.24) prepay Revolving Credit Loans of the Lenders such
that, after giving effect thereto, the Revolving Credit Loans (including,
without limitation, the Types thereof and Interest Periods with respect thereto)
shall be held by the Lenders (including for such purposes the New Lenders) pro
rata according to their respective Commitment Percentages.
CREDIT AGREEMENT
31
(e) Notwithstanding anything to the contrary in this Section, (i) in no
event shall any transaction effected pursuant to this Section cause (x) the
aggregate Commitments to exceed $2,000,000,000 or (y) an increase in the
aggregate Commitments of an amount less than $100,000,000, (ii) the aggregate
amount of any increase in Commitments pursuant to subsection 2.25(b) and (c)(ii)
shall be limited to the relevant Declined Amount and (iii) no Lender shall have
any obligation to increase its Commitment unless it agrees to do so in its sole
discretion.
2.26 Commitment Extensions. (a) The Borrower may, not earlier than
60 days and not later than 45 days before the Revolving Credit Termination Date,
by notice to the Administrative Agent request that the Revolving Credit
Termination Date then in effect (the "Existing Revolving Credit Termination
Date") be extended to the date 364 days after the Existing Commitment
Termination Date. The Administrative Agent shall promptly notify the Lenders of
such request.
(b) Each Lender, in its sole discretion, shall advise the Administrative
Agent whether or not such Lender agrees to such extension. If a Lender agrees to
renew its Commitment (an "Extending Lender"), it shall notify the Administrative
Agent, in writing, of its decision to do so not earlier than 45 days and not
later than 30 days prior to the Existing Revolving Credit Termination Date. A
Lender that determines not to so extend its Commitment shall so notify the
Administrative Agent promptly after making such determination and is herein
called a "Non-Extending Lender". If a Lender does not give timely notice to the
Administrative Agent of whether or not such Lender agrees to such extension, it
shall be deemed to be a Non-Extending Lender.
(c) The Administrative Agent shall notify the Borrower of each Lender's
determination not earlier than 30 days and not later than 20 days prior to the
Existing Revolving Credit Termination Date.
(d) The Borrower shall have the right to accept Commitments from New
Lenders, each of which shall be acceptable to the Administrative Agent, in an
aggregate amount equal to the amount of the Commitments of any Non-Extending
Lender, provided that the Extending Lenders shall have the right to increase
their Commitments up to the aggregate amount of the Non-Extending Lenders'
Commitments before the Borrower shall be permitted to substitute any New Lenders
for Non-Extending Lenders.
(e) If and only if (i) more than 50% of the total of the Commitments is
extended or otherwise committed to by Extending Lenders and any New Lenders, and
(ii) immediately prior to the Existing Revolving Credit Termination Date no
Default has occurred and is continuing and the representations and warranties of
the Borrower set forth in Section 3 shall be true and correct in all material
respects on and as of the Existing Revolving Credit Termination Date as though
made on and as of such date, and subject to each New Lender having executed a
New Lender Supplement (on the effective date of which such New Lender shall
become a Lender for all purposes and to the same extent as if originally a party
hereto and shall be bound by and entitled to the benefits of this Agreement),
then effective on the Existing Revolving Credit Termination Date the Revolving
Credit Termination Date shall be extended to the date 364 days after the
Existing Revolving Credit Termination Date (or, if such day is not a Business
Day, the immediately preceding Business Day) which date shall thereafter be the
Revolving Credit Termination Date, provided that the Commitment of each
Non-Extending Lender shall in any event terminate on the Existing Revolving
Credit Termination Date and the Borrower shall pay
CREDIT AGREEMENT
32
in full on the Existing Revolving Credit Termination Date all amounts payable to
each Non-Extending Lender hereunder.
SECTION 3. REPRESENTATIONS AND WARRANTIES
To induce the Administrative Agent and the Lenders to enter into this
Agreement and to make the Loans, the Borrower and, in the case of Sections 3.3,
3.4, 3.5 and 3.14, each Obligor with respect to itself, hereby represents and
warrants to the Administrative Agent and each Lender that:
3.1 Financial Condition. The consolidated balance sheet of the
Borrower and its consolidated Subsidiaries as at December 31, 2003 and the
related consolidated statements of income and of cash flows for the fiscal year
ended on such date, reported on by PricewaterhouseCoopers LLP, copies of which
have heretofore been furnished to each Lender, are complete and correct in all
material respects and present fairly the consolidated financial condition of the
Borrower and its consolidated Subsidiaries as at such date, and the consolidated
results of their operations and their consolidated cash flows for the fiscal
year then ended. The unaudited consolidated balance sheet of the Borrower and
its consolidated Subsidiaries as at March 31, 2004 and the related unaudited
consolidated statements of income and of cash flows for the three-month period
ended on such date, certified by a Responsible Officer, copies of which have
heretofore been furnished to each Lender, are complete and correct in all
material respects and present fairly the consolidated financial condition of the
Borrower and its consolidated Subsidiaries as at such date, and the consolidated
results of their operations and their consolidated cash flows for the
three-month period then ended (subject to normal year-end audit adjustments).
All such financial statements have been prepared in accordance with GAAP applied
consistently throughout the periods involved (except as approved by such
accountants or Responsible Officer, as the case may be, and as disclosed
therein). Neither the Borrower nor any of its consolidated Subsidiaries had, at
the date of the most recent balance sheet referred to above, any material
Guarantee outside the ordinary course of business, contingent liability or
liability for taxes, or any long-term lease or unusual forward or long-term
commitment which in the aggregate may reasonably be expected to have a Material
Adverse Effect, including, without limitation, any interest rate or foreign
currency swap or exchange transaction (except as listed on Schedule 3.1 attached
hereto), which is not reflected in the foregoing statements or in the notes
thereto.
3.2 No Change. Since December 31, 2003 there has been no development
or event which has had or could reasonably be expected to have a Material
Adverse Effect.
3.3 Existence; Compliance with Law. Each Obligor and its
Subsidiaries (a) is an entity duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization (provided, that
no representation is made under this clause (a) with respect to any Subsidiary
that is neither an Obligor nor a Material Subsidiary of an Obligor if the
failure of such Subsidiary to be duly organized, validly existing or in good
standing as aforesaid could not reasonably be expected to have a Material
Adverse Effect), (b) has the power and authority, and the legal right, to own
and operate its property, to lease the property it operates as lessee and to
conduct the business in which it is currently engaged, (c) is duly qualified as
a foreign entity and in good standing under the laws of each jurisdiction (other
than that of its organization) where its ownership, lease or operation of
property or the conduct of its business requires such
CREDIT AGREEMENT
33
qualification and (d) is in compliance with all Requirements of Law, except in
the case of clause (c) or (d) above, to the extent that the failure to qualify
as a foreign entity or to be in good standing or to comply with any Requirement
of Law could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.
3.4 Corporate Power; Authorization; Enforceable Obligations. Each
Obligor has the corporate power and authority, and the legal right, to make,
deliver, and perform the Loan Documents to which it is a party and to borrow
hereunder and has taken all necessary corporate action to authorize the
borrowings on the terms and conditions of this Agreement and any Notes and to
authorize the execution, delivery and performance of the Loan Documents to which
it is a party. No consent or authorization of, filing with, notice to or other
act by or in respect of, any Governmental Authority or any other Person is
required in connection with the borrowings hereunder or with the execution,
delivery, performance, validity or enforceability of the Loan Documents to which
either Obligor is a party. This Agreement has been, and each other Loan Document
to which it is a party will be, duly executed and delivered on behalf of each
Obligor. This Agreement constitutes, and each other Loan Document to which it is
a party when executed and delivered will constitute, a legal, valid and binding
obligation of each Obligor enforceable against such Obligor in accordance with
its terms, subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors' rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing.
3.5 No Legal Bar. The execution, delivery and performance of the
Loan Documents to which each Obligor is a party, the borrowings hereunder and
the use of the proceeds thereof will not violate any Requirement of Law or
Contractual Obligation of such Obligor and will not result in, or require, the
creation or imposition of any Lien on any of its or their respective properties
or revenues pursuant to any such Requirement of Law or Contractual Obligation.
3.6 No Material Litigation. Except as listed on Schedule 3.6 or as
previously disclosed in any public filing made by the Borrower prior to the date
hereof, no litigation, investigation or proceeding of or before any arbitrator
or Governmental Authority is pending or, to the knowledge of the Borrower,
threatened by or against the Borrower or any of its Subsidiaries or against any
of its or their respective properties or revenues (a) with respect to any of the
Loan Documents or any of the transactions contemplated hereby or thereby, or (b)
which could, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.
3.7 No Default. Neither the Borrower nor any of its Subsidiaries is
in default under or with respect to any of its Contractual Obligations in any
respect which could, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect. No Default or Event of Default has occurred and
is continuing.
3.8 Ownership of Property; Liens. Each of the Borrower and its
Subsidiaries has good record and marketable title in fee simple to, or a valid
leasehold interest in, all its real property material to the business of the
Borrower and its Subsidiaries, taken as a whole, and good title to, or a valid
leasehold interest in, all its other property material to the business of the
CREDIT AGREEMENT
34
Borrower and its Subsidiaries, taken as a whole, and none of such property is
subject to any Lien except as permitted by Section 6.2.
3.9 Intellectual Property. The Borrower and each of its Subsidiaries
owns, or is licensed to use, all trademarks, tradenames, copyrights, technology,
know-how and processes necessary for the conduct of its business as currently
conducted except for those the failure to own or license which could not
reasonably be expected to have a Material Adverse Effect (the "Intellectual
Property"). No claim has been asserted and is pending by any Person challenging
or questioning the use of any such Intellectual Property or the validity or
effectiveness of any such Intellectual Property, nor does International know of
any valid basis for any such claim, except for such claims that, in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.
The use of such Intellectual Property by the Borrower and its Subsidiaries does
not infringe on the rights of any Person, except for such claims and
infringements that, in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.
3.10 No Burdensome Restrictions. No Requirement of Law or
Contractual Obligation of the Borrower or any of its Subsidiaries could
reasonably be expected to have a Material Adverse Effect.
3.11 Taxes. Each of the Borrower and its Subsidiaries has filed or
caused to be filed all tax returns which, to the knowledge of the Borrower, are
required to be filed and has paid all taxes shown to be due and payable on said
returns or on any assessments made against it or any of its property and all
other taxes, fees or other charges imposed on it or any of its property by any
Governmental Authority, except (a) any the amount or validity of which are
currently being contested in good faith by appropriate proceedings and with
respect to which reserves in conformity with GAAP have been provided on the
books of the Borrower or its Subsidiaries, as the case may be or (b) to the
extent that the failure to do so could not reasonably be expected to have a
Material Adverse Effect; no tax Lien has been filed, and, to the knowledge of
the Borrower, no claim is being asserted, with respect to any such tax, fee or
other charge other than any Lien permitted under Section 6.2(a).
3.12 Federal Margin Regulations. Neither the Borrower nor any of its
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose (whether immediate, incidental
or ultimate) of buying or carrying Margin Stock. No part of the proceeds of any
Loans will be used directly or indirectly for the purpose (whether immediate,
incidental or ultimate) of buying or carrying Margin Stock or for any purpose
that violates the provisions of the regulations of the Board. If requested by
any Lender or the Administrative Agent, the Borrower will furnish to each Lender
and the Administrative Agent a statement in conformity with the requirements of
Federal Reserve Form FR U-1 or FR G-3, as appropriate, referred to in Regulation
U, to demonstrate the compliance of any borrowing hereunder with Regulation U.
3.13 ERISA. Neither a Reportable Event nor an "accumulated funding
deficiency" (within the meaning of Section 412 of the Code or Section 302 of
ERISA) has occurred during the five-year period prior to the date on which this
representation is made or deemed made with respect to any Single Employer Plan
that could reasonably be expected to have a Material Adverse Effect, and each
Plan has complied with the applicable provisions of ERISA and the Code to the
extent that the failure to comply could not reasonably be expected to have a
Material Adverse Effect. No termination of a Single Employer Plan has occurred
(other
CREDIT AGREEMENT
35
than via a "standard termination" as defined in Section 4041(b) of ERISA), and
no Lien in favor of the PBGC or a Single Employer Plan has arisen, during such
five-year period that could reasonably be expected to have a Material Adverse
Effect. The excess, if any, of the present value of all accrued benefits under
each Single Employer Plan (based on those assumptions used to fund such Plans),
as of the last annual valuation date prior to the date on which this
representation is made or deemed made, over the value of the assets of such Plan
allocable to such accrued benefits could not reasonably be expected to have a
Material Adverse Effect. Neither the Borrower nor any Commonly Controlled Entity
has had a complete or partial withdrawal from any Multiemployer Plan that could
reasonably be expected to have a Material Adverse Effect, and neither the
Borrower nor any Commonly Controlled Entity would become subject to any
liability under ERISA that could reasonably be expected to have a Material
Adverse Effect if the Borrower or any such Commonly Controlled Entity were to
withdraw completely from all Multiemployer Plans as of the valuation date most
closely preceding the date on which this representation is made or deemed made.
To the best knowledge of the Borrower, no such Multiemployer Plan is in
Reorganization or Insolvent. The excess, if any, of the present value
(determined using actuarial and other assumptions which are reasonable in
respect of the benefits provided and the employees participating) of the
liability of the Borrower for post retirement benefits to be provided to their
current and former employees under Plans which are welfare benefit plans (as
defined in Section 3(l) of ERISA) over the assets under all such Plans allocable
to such benefits could not reasonably be expected to have a Material Adverse
Effect.
3.14 Investment Company Act; Other Regulations. Neither of the
Obligors is an "investment company", or a company "controlled" by an "investment
company", within the meaning of the Investment Company Act of 1940, as amended.
Neither of the Obligors is subject to regulation under any Federal or State
statute or regulation (other than Regulation X of the Board) which limits its
ability to incur Indebtedness.
3.15 Subsidiaries. As of the Closing Date, Schedule 3.15 lists each
Subsidiary of the Borrower (and the direct and indirect ownership interest of
the Borrower therein), in each case existing on March 31, 2004.
3.16 Purpose of Loans. The proceeds of the Loans shall be used by
the Borrower and its Subsidiaries solely (i) to ensure the integrity of the
MasterCard payment system in the event of settlement failure by one or more of
its members, including failure by one or more of its members to meet merchant
payment obligations, and (ii) to refinance outstanding loans, if any, under the
agreement referred to in Section 4.1(i); provided, that up to $300,000,000 of
the proceeds of the Loans may, subject to the provisions of Section 4.3, be used
for general corporate purposes of the Borrower and its Subsidiaries.
3.17 Environmental Matters. Except to the extent any of the
following could not reasonably be expected to have a Material Adverse Effect:
(a) To the best knowledge of the Borrower, the facilities and properties
owned, leased or operated by the Borrower or any of its Subsidiaries (the
"Properties") do not contain, and have not previously contained, any Materials
of Environmental Concern in amounts or concentrations which (i) constitute or
constituted a violation of, or (ii) could reasonably be expected to give rise to
liability under, any Environmental Law.
CREDIT AGREEMENT
36
(b) The Properties and all operations at the Properties are in compliance
in all material respects with all applicable Environmental Laws, and there is no
contamination at, under or about the Properties or violation of any
Environmental Law with respect to the Properties or the business operated by the
Borrower or any of its Subsidiaries (the "Business") which could materially
interfere with the continued operation of the Properties or materially impair
the fair saleable value thereof.
(c) Neither the Borrower nor any of its Subsidiaries has received any
notice of violation, alleged violation, non-compliance, liability or potential
liability regarding environmental matters or compliance with Environmental Laws
with regard to any of the Properties or the Business, nor does the Borrower have
knowledge or reason to believe that any such notice will be received or is being
threatened.
(d) No judicial proceeding or governmental or administrative action is
pending or, to the knowledge of the Borrower, threatened, under any
Environmental Law to which the Borrower or any Subsidiary is or will be named as
a party with respect to the Properties or the Business, nor are there any
consent decrees or other decrees, consent orders, administrative orders or other
orders, or other administrative or judicial requirements outstanding under any
Environmental Law with respect to the Properties or the Business.
3.18 Solvency. The Borrower is, and after giving effect to each
borrowing hereunder will be, Solvent.
SECTION 4. CONDITIONS PRECEDENT
4.1 Conditions to Initial Loan. The agreement of each Lender to make
the initial Loan requested to be made by it is subject to the satisfaction of
the following conditions precedent:
(a) Loan Documents. The Administrative Agent shall have received (i) this
Agreement, executed and delivered by a duly authorized officer of each Obligor,
with a counterpart for each Lender, and (ii) for the account of the Swing Line
Lender, the Swing Line Note conforming to the requirements hereof and for the
account of any Lender that requested a Revolving Credit Note, such Revolving
Credit Note, conforming to the requirements hereof, each executed by a duly
authorized officer of the Borrower.
(b) Related Agreements. The Administrative Agent shall have received, with
a copy for each Lender, true and correct copies, certified as to authenticity by
the Borrower, of such other documents or instruments as may be reasonably
requested by the Administrative Agent on or prior to the Closing Date,
including, without limitation, a copy of any debt instrument, security agreement
or other material contract to which the Borrower or its Subsidiaries may be a
party.
(c) Closing Certificate. The Administrative Agent shall have received,
with a copy for each Lender, a closing certificate of each Obligor, dated the
Closing Date, substantially in the form of Exhibit I, with appropriate
insertions and attachments, satisfactory in form and substance to the
Administrative Agent, executed by the President or his designee or any Vice
President and the Secretary or any Assistant Secretary of each Obligor.
CREDIT AGREEMENT
37
(d) Corporate Proceedings. The Administrative Agent shall have received,
with a copy for each Lender, a copy of the resolutions, in form and substance
satisfactory to the Administrative Agent, of the Board of Directors of each
Obligor authorizing, subject to Section 4.3, (i) the execution, delivery and
performance by such Obligor of this Agreement and the other Loan Documents to
which it is a party and (ii) in the case of the Borrower, the making of the
borrowings contemplated hereunder and, in the case of International, the
guarantee thereof as provided herein, certified by its Secretary or an Assistant
Secretary as of the Closing Date, which certificate shall be in form and
substance satisfactory to the Administrative Agent and shall state that the
resolutions thereby certified have not been amended, modified, revoked or
rescinded.
(e) Incumbency Certificate. The Administrative Agent shall have received,
with a copy for each Lender, a certificate of each Obligor, dated the Closing
Date, as to the incumbency and signature of its officers executing any Loan
Document, satisfactory in form and substance to the Administrative Agent,
executed by its President or any Vice President and its Secretary or any
Assistant Secretary.
(f) Corporate Documents. The Administrative Agent shall have received,
with a copy for each Lender, true and complete copies of the certificate of
incorporation and by-laws of each Obligor, certified as of the Closing Date as
complete and correct copies thereof by the Secretary or an Assistant Secretary
of such Obligor.
(g) Fees. The Administrative Agent shall have received the fees to be
received on the Closing Date.
(h) Legal Opinions. The Administrative Agent shall have received, with a
counterpart for each Lender, (i) the executed legal opinion of Xxxx X. Xxxxx,
General Counsel and Secretary of the Borrower and International, substantially
in the form of Exhibit F-1, and (ii) the executed legal opinion of Milbank,
Tweed, Xxxxxx & XxXxxx LLP, special New York counsel to the Administrative
Agent, substantially in the form of Exhibit F-2, each dated the Closing Date and
covering such other matters incident to the transactions contemplated by this
Agreement as the Administrative Agent may reasonably require.
(i) Existing Agreement. The Administrative Agent shall have received
evidence satisfactory to it that the commitments under the existing
$1,200,000,000 Credit Agreement, dated as of June 20, 2003 among the Borrower,
International, certain financial institutions, Citibank, N.A. as Administrative
Agent and JPMorgan Chase Bank, as Backup Agent (the "Existing Credit
Agreement"), shall have been canceled and all amounts outstanding thereunder
shall have been repaid as of the Closing Date (and each Lender which is a party
to the Existing Credit Agreement hereby waives compliance with the requirement
under Section 2.6 of the Existing Credit Agreement for the giving of five
Business Days' prior written notice for termination of the commitments
thereunder).
4.2 Conditions to Each Loan. The agreement of each Lender to make
any Loan requested to be made by it on any date (including, without limitation,
its initial Loan and its Term Loan) is subject to the satisfaction of the
following conditions precedent:
(a) Representations and Warranties. Each of the representations and
warranties made by the Obligors in or pursuant to this Agreement shall be true
and correct in all material respects on and as of such date as if made on and as
of such date (immediately before and immediately after
CREDIT AGREEMENT
38
giving effect to such Loan and to the application of the proceeds therefrom)
except for representations and warranties expressly stated to relate to a
specific earlier date, in which case such representations and warranties were
true and correct as of such earlier date.
(b) No Default. No Default or Event of Default shall have occurred and be
continuing on such date or after giving effect to the Loans requested to be made
on such date.
Each borrowing by the Borrower hereunder shall constitute a representation and
warranty by the Borrower as of the date thereof that the conditions contained in
this Section have been satisfied.
4.3 Conditions to Use for Certain Purposes. The entitlement of the
Borrower to use the proceeds of Loans for use for general corporate purposes of
the Borrower and its Subsidiaries, as set forth in Section 3.16, is subject to
the satisfaction of the following conditions precedent:
(a) Corporate Proceedings. The Administrative Agent shall have received,
with a copy for each Lender, a certificate of the Borrower and International,
confirming that the making of borrowings hereunder for the general corporate
purposes of the Borrower and its Subsidiaries and, in the case of International,
the guarantee of Loans made for such purposes have been duly authorized by all
necessary corporate action, and attaching a true copy of the resolutions of the
Borrower and International containing such authorizations, which certificate and
resolutions shall be in form and substance satisfactory to the Administrative
Agent; and
(b) Legal Opinions. The Administrative Agent shall have received, with a
counterpart for each Lender, the executed legal opinion of the General Counsel
and Secretary of the Borrower and International, to the effect that borrowings
for said general corporate purposes and the guarantee thereof under this
Agreement have been duly authorized by all necessary corporate action, which
legal opinion shall be in form and substance satisfactory to the Administrative
Agent.
SECTION 5. AFFIRMATIVE COVENANTS
The Borrower hereby agrees that, so long as the Commitments remain in
effect or any amount is owing to any Lender or the Administrative Agent
hereunder or under any other Loan Document, the Borrower shall and (except in
the case of delivery of financial information, reports and notices) shall cause
each of its Subsidiaries to:
5.1 Financial Statements. Furnish to each Lender:
(a) as soon as available, but in any event within 120 days after the end
of each fiscal year of the Borrower, a copy of the consolidated balance sheet of
the Borrower and its consolidated Subsidiaries as at the end of such year and
the related consolidated statements of income and retained earnings and of cash
flows for such year, setting forth in each case in comparative form the figures
for the previous year, reported on without a "going concern" or like
qualification or exception, or qualification arising out of the scope of the
audit, by PricewaterhouseCoopers LLP or other independent certified public
accountants of nationally recognized standing; and
(b) as soon as available, but in any event not later than 60 days after
the end of each of the first three quarterly periods of each fiscal year of the
Borrower, the unaudited consolidated
CREDIT AGREEMENT
39
balance sheet of the Borrower and its consolidated Subsidiaries as at the end of
such quarter and the related unaudited consolidated statements of income and
retained earnings of such quarter and of cash flows of the Borrower and its
consolidated Subsidiaries for the portion of the fiscal year through the end of
such quarter, setting forth in each case in comparative form the figures for the
previous year or, in the case of such consolidated balance sheet, for the last
day of the prior fiscal year, certified by a Responsible Officer as being fairly
stated in all material respects (subject to normal year-end audit adjustments);
all such financial statements shall be complete and correct in all material
respects and shall be prepared in reasonable detail and in accordance with GAAP
applied consistently throughout the periods reflected therein and with prior
periods (except as approved by such accountants or officer, as the case may be,
and disclosed therein). Information required to be delivered pursuant to this
Section 5.1 shall be deemed to have been delivered to the Lenders on the date on
which the Borrower provides written notice to the Lenders that such information
has been posted on the Borrower's website on the Internet at
xxxx://xxx.xxxxxxxxxxxxxx.xxx or is available on the website of the Securities
and Exchange Commission or any successor at xxxx://xxx.xxx.xxx (to the extent
such information has been posted or is available as described in such notice).
5.2 Certificates; Other Information. Furnish to the Administrative
Agent:
(a) concurrently with the delivery of the financial statements referred to
in subsection 5.1(a), a certificate of the independent certified public
accountants reporting on such financial statements stating that in making the
examination necessary therefor no knowledge was obtained of any failure by the
Borrower to comply with Section 6.1, except as specified in such certificate;
(b) concurrently with the delivery of the financial statements referred to
in subsections 5.1(a) and (b), a certificate of a Responsible Officer,
substantially in the form of Exhibit J, stating that, to the best of such
Responsible Officer's knowledge, during such period the Borrower has observed or
performed all of its covenants and other agreements, and satisfied every
condition, contained in this Agreement and the other Loan Documents to be
observed, performed or satisfied by it, and that such Responsible Officer has
obtained no knowledge of any Default or Event of Default except as specified in
such certificate;
(c) within five days after the same are sent, copies of all financial
statements and reports which the Borrower sends to shareholders generally, and
within five days after the same are filed, copies of all financial statements
and reports which the Borrower may make to, or file with, the Securities and
Exchange Commission or any successor or analogous Governmental Authority;
provided, that any such financial statement or report shall be deemed to have
been delivered on the date that the Borrower notifies the Administrative Agent
that such financial statement or report is available on "XXXXX", the Electronic
Data Gathering, Analysis and Retrieval system of the Securities and Exchange
Commission, or "xxxx://xxx.xxx.xxx/xxxxx.xxxxx"); and
(d) promptly, such additional financial and other information (other than
any non-public information or materials pertaining to the Borrower's proprietary
new products, systems or services, proprietary marketing programs, strategies or
plans, or any member specific billing, contractual or other arrangements) as the
Administrative Agent or any Lender through the Administrative Agent may from
time to time reasonably request.
CREDIT AGREEMENT
40
5.3 Payment of Obligations. Pay, discharge or otherwise satisfy at
or before maturity or before they become delinquent, as the case may be, all its
obligations of whatever nature, except (i) where the amount or validity thereof
is currently being contested in good faith by appropriate proceedings and
reserves in conformity with GAAP with respect thereto have been provided on the
books of the Borrower or its Subsidiaries, as the case may be or (ii) to the
extent that failure to comply therewith could not, in the aggregate, be
reasonably expected to have a Material Adverse Effect.
5.4 Conduct of Business and Maintenance of Existence. Continue to
engage in business of the same general type as now conducted by it and preserve,
renew and keep in full force and effect its existence and take all reasonable
action to maintain all rights, privileges and franchises necessary or desirable
in the normal conduct of its business except as otherwise permitted pursuant to
Section 6.3 or 6.9 unless the failure to do so could not reasonably be expected
to have a Material Adverse Effect; and comply with all Contractual Obligations
and Requirements of Law except to the extent that failure to comply therewith
could not, in the aggregate, be reasonably expected to have a Material Adverse
Effect.
5.5 Maintenance of Property; Insurance. Keep all property material
to the business of the Borrower and its Subsidiaries taken as a whole in good
working order and condition ordinary wear and tear excepted; maintain with
financially sound and reputable insurance companies insurance on all its
property in at least such amounts and against at least such risks as are, to the
Borrower's knowledge, usually insured against in the same general area by
companies engaged in the same or a similar business; and furnish to each Lender,
upon written request, full information as to the insurance carried.
5.6 Inspection of Property; Books and Records; Discussions. Keep
proper books of records and account in which full, true and correct entries in
conformity with GAAP (or such other commonly accepted accounting practice which
has been previously disclosed to the Administrative Agent) and all Requirements
of Law shall be made of all dealings and transactions in relation to its
business and activities; and permit representatives of any Lender (coordinated
through the Administrative Agent) to, upon reasonable notice, visit and inspect
any of its properties (not more than one time in any fiscal year) and examine
and make abstracts from any of its books and records (other than any non-public
information or materials pertaining to (i) its proprietary new products, systems
or services, (ii) its proprietary marketing programs, strategies or plans, or
(iii) any member specific billing, contractual or other arrangements) at any
reasonable time and as often as may reasonably be desired and to discuss the
business, operations, properties and financial and other condition of the
Borrower and its Subsidiaries with officers and employees of the Borrower and
its Subsidiaries and with its independent certified public accountants; provided
that if a Default or Event of Default shall have occurred and be continuing,
such visits and inspections (coordinated through the Administrative Agent) may
be conducted at any time upon reasonable notice.
5.7 Notices. Promptly give notice to the Administrative Agent for
distribution to the Lenders of:
(a) the occurrence of any Default or Event of Default;
CREDIT AGREEMENT
41
(b) if the Borrower ceases to be a public reporting company under the
Securities Exchange Act of 1934, as amended, any (i) default or event of default
under any Contractual Obligation of the Borrower or any of its Subsidiaries or
(ii) litigation, investigation or proceeding which may exist at any time between
the Borrower or any of its Subsidiaries and any Governmental Authority, which in
either case, could reasonably be expected to have a Material Adverse Effect;
(c) if the Borrower ceases to be a public reporting company under the
Securities Exchange Act of 1934, as amended, any litigation or proceeding
affecting the Borrower or any of its Subsidiaries as to which the Borrower
determines that there is a reasonable probability of an adverse judgment and in
which the amount involved is $50,000,000 or more and not covered by insurance or
in which injunctive or similar relief is sought;
(d) the following events, as soon as possible and in any event within 30
days after the Borrower knows or has reason to know thereof: (i) the occurrence
of any Reportable Event with respect to any Plan, a failure to make any required
contribution to any "pension plan" (as defined in Section 3(2) of ERISA), the
creation of any Lien in favor of the PBGC or a Plan, in each case that could
reasonably be expected to result in a liability or Lien in excess of $10,000,000
or (ii) the institution of proceedings or the taking of any other action by the
PBGC or the Borrower or any Commonly Controlled Entity or any Multiemployer Plan
with respect to the withdrawal from, or the terminating, Reorganization or
Insolvency of, any Multiemployer Plan, except where the termination,
Reorganization or Insolvency of any Multiemployer Plan could not reasonably be
expected to result in a liability in excess of $10,000,000; and
(e) any material adverse change in the business, operations, property or
condition (financial or otherwise) of the Borrower and its Subsidiaries taken as
a whole.
Each notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein
and stating what action the Borrower proposes to take with respect thereto.
Notices and other communications to the Lenders required pursuant to paragraphs
(b), (c), (d) and (e) of this Section 5.7 may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative
Agent.
5.8 Environmental Laws. (a) Comply with, and ensure compliance by
all tenants and subtenants, if any, with, all applicable Environmental Laws and
obtain and comply in all material respects with and maintain, and ensure that
all tenants and subtenants obtain and comply in all material respects with and
maintain, any and all licenses, approvals, notifications, registrations or
permits required by applicable Environmental Laws except to the extent that
failure to do so could not be reasonably expected to have a Material Adverse
Effect.
(b) Conduct and complete all investigations, studies, sampling and
testing, and all remedial, removal and other actions required under
Environmental Laws and promptly comply in all material respects with all lawful
orders and directives of all Governmental Authorities regarding Environmental
Laws except to the extent that the failure to do so could not reasonably be
expected to have a Material Adverse Effect.
CREDIT AGREEMENT
42
SECTION 6. NEGATIVE COVENANTS
The Borrower hereby agrees that, so long as the Commitments remain in
effect or any amount is owing to any Lender or the Administrative Agent
hereunder or under any other Loan Document, the Borrower shall not and shall not
permit any of its Subsidiaries to, directly or indirectly:
6.1 Maintenance of Net Worth. Permit Consolidated Net Worth of the
Borrower at any time to be less than the sum of (i) $525,000,000 plus (ii) an
amount equal to 50% of the sum of Consolidated Net Income (if positive) of the
Borrower for each fiscal quarter commencing with and including the first fiscal
quarter of 2004.
6.2 Limitation on Liens. Create, incur, assume or suffer to exist
any Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, except for:
(a) Liens for taxes not yet due or which are being contested in good faith
by appropriate proceedings, provided that adequate reserves with respect thereto
are maintained on the books of the Borrower or its Subsidiaries, as the case may
be, in conformity with GAAP;
(b) carriers', warehousemen's, mechanics', materialmen's, repairmen's or
other like Liens arising in the ordinary course of business which are not
overdue for a period of more than 60 days or which are being contested in good
faith by appropriate proceedings;
(c) pledges or deposits in connection with workers' compensation,
unemployment insurance and other social security legislation and deposits
securing liability to insurance carriers under insurance or self-insurance
arrangements;
(d) deposits to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;
(e) easements, rights-of-way, restrictions and other similar encumbrances
which, in the aggregate, do not in any case materially detract from the value of
the property subject thereto or materially interfere with the ordinary conduct
of the business of the Borrower and its Subsidiaries taken as a whole;
(f) Liens in existence on the date hereof listed on Schedule 6.2(f),
provided that no such Lien is spread to cover any additional property after the
Closing Date and that the amount of Indebtedness secured thereby is not
increased;
(g) Liens securing Indebtedness of the Borrower and its Subsidiaries
incurred to finance the acquisition of fixed or capital assets, provided that
(i) such Liens shall be created substantially simultaneously with the
acquisition of such fixed or capital assets and (ii) such Liens do not at any
time encumber any property other than the property financed by such
Indebtedness;
(h) bankers' liens arising by operation of law;
CREDIT AGREEMENT
43
(i) Liens on the property or assets of a corporation which becomes a
Subsidiary on or after the date hereof securing Indebtedness of such
corporation, provided that (i) such Liens existed at the time such corporation
became a Subsidiary and were not created in anticipation thereof and (ii) any
such Lien is not spread to cover any property or assets of such corporation
after the time such corporation becomes a Subsidiary;
(j) Liens arising out of judgments or awards (x) which are bonded or (y)
with respect to which an appeal or a proceeding for review is being prosecuted
in good faith and adequate reserves have been provided for the payment of such
judgment or award;
(k) Liens in favor of the Borrower which secure the obligation of any
Subsidiary to the Borrower; and
(1) Liens (not otherwise permitted hereunder) which secure obligations not
exceeding (as to the Borrower and all Subsidiaries) $20,000,000 in aggregate
amount at any time outstanding.
6.3 Limitation on Fundamental Changes. Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or convey, sell, lease, assign, transfer
or otherwise dispose of, all or substantially all of its property, business or
assets, or make any material change in its present method of conducting business
(taking the Borrower and its Subsidiaries as a whole), except:
(a) any Subsidiary of the Borrower may be merged or consolidated with or
into the Borrower or International (provided that the Borrower or International,
as the case may be, shall be the continuing or surviving corporation) or with or
into any one or more wholly owned Subsidiaries of the Borrower (provided that
the wholly owned Subsidiary or Subsidiaries shall be the continuing or surviving
corporation);
(b) any wholly owned Subsidiary may sell, lease, transfer or otherwise
dispose of any or all of its assets (upon voluntary liquidation or otherwise) to
the Borrower or International or any other wholly owned Subsidiary of the
Borrower, subject, however, to the limitations set forth in Sections 6.4(c) and
6.6 below; and
(c) as permitted by Section 6.4 or Section 6.6 (including any Investment
consisting of an acquisition or disposition of assets, in each case by way of
merger, that is otherwise permitted under Section 6.4 or Section 6.6).
6.4 Limitation on Transfer or Disposition of Assets. Convey, sell,
lease, assign, transfer or otherwise dispose of any of its property, business or
assets (including, without limitation, receivables and leasehold interests),
whether now owned or hereafter acquired, or, in the case of any Subsidiary,
issue or sell any shares of such Subsidiary's Capital Stock to any Person other
than the Borrower or any wholly owned Subsidiary, except:
(a) the sale or other disposition of obsolete or worn out property in the
ordinary course of business;
(b) the sale of Cash Equivalents in the ordinary course of business in
connection with cash management activities or the use of proceeds thereof;
CREDIT AGREEMENT
44
(c) the sale or other disposition of any property; provided that (i) the
aggregate book value of all assets so sold or disposed of pursuant to this
clause (b) in any period of twelve consecutive months shall not exceed an amount
equal to 20% of consolidated total assets of the Borrower and its Subsidiaries
as at the beginning of such twelve-month period; and (ii) the aggregate book
value of all assets so sold or disposed of pursuant to this clause (b) to
Subsidiaries of the Borrower that are not also Subsidiaries of International by
the Borrower and its Subsidiaries (other than by Subsidiaries of the Borrower
that are not also Subsidiaries of International) during any period of twelve
consecutive calendar months commencing with and including May, 2004 shall not
exceed an amount equal to 30% of consolidated total assets of International and
its Subsidiaries as at the beginning of such twelve-month period;
(d) the sale or disposition of the headquarters of the Borrower located at
0000 Xxxxxxxx Xxxxxx, Xxxxxxxx, Xxx Xxxx 00000-0000;
(e) the sale of inventory in the ordinary course of business;
(f) the sale or discount without recourse of accounts receivable arising
in the ordinary course of business in connection with the compromise or
collection thereof; and
(g) as permitted by subsection 6.3(b).
6.5 Limitation on Dividends. Declare or pay dividends exceeding 40%
of Consolidated Net Income in any fiscal year (other than dividends payable
solely in common stock of the Borrower) on, or make any payment on account of,
or set apart assets for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of, any shares of any
class of Capital Stock of the Borrower or any warrants or options to purchase
any such Stock, whether now or hereafter outstanding, or make any other
distribution in respect thereof, either directly or indirectly, whether in cash
or property or in obligations of the Borrower or any Subsidiary. The provisions
hereunder shall in no way limit the ability of any Subsidiary to make dividend
payments to the Borrower or any other shareholder of such Subsidiary.
6.6 Limitation on Investments. Make any advance, loan, extension of
credit or capital contribution to, or purchase any stock, bonds, notes,
debentures or other securities of or any assets constituting a business unit of,
or make any other investment in, any Person (collectively, "Investments"),
except Permitted Investments.
6.7 Limitation on Transactions with Affiliates. Enter into any
transaction, including, without limitation, any purchase, sale, lease or
exchange of property or the rendering of any service, with any Affiliate (other
than any transaction permitted by the terms of this Agreement and any
transaction between the Borrower and its consolidated Subsidiaries) unless such
transaction is upon fair and reasonable terms.
6.8 Limitation on Changes in Fiscal Year. Permit the fiscal year of
the Borrower to end on a day other than December 31; provided that the Borrower
may change its fiscal year with the consent of the Administrative Agent, which
consent shall not unreasonably be withheld.
CREDIT AGREEMENT
45
6.9 Limitation on Lines of Business. Enter into any business, either
directly or through any Subsidiary, except for businesses (a) in which the
Borrower and its Subsidiaries are engaged on the date of this Agreement or (b)
which, after giving effect to such new business, would not result in a change in
the primary business of the Borrower and its Subsidiaries, taken as a whole, on
the date hereof.
6.10 Upstreaming. Permit any of its Domestic Subsidiaries to enter
into, create or assume or suffer to exist any indenture, agreement or other
contractual arrangement that prohibits any such Subsidiary from declaring or
paying dividends or other distributions on any class of stock or membership
interest of such Subsidiary other than restrictions existing on the date of this
Agreement contained in agreements or arrangements listed on Schedule 6.10 or
otherwise disclosed to the Lenders prior to such date (including restrictions in
any amendment or replacement of any such agreements or arrangements), and
restrictions in future agreements or arrangements substantially similar to such
restrictions, it being agreed that customary financial covenants and other
agreements affecting maintenance or retention of assets or capital by a
Subsidiary shall not be deemed to be restrictions limited by this Section 6.10.
SECTION 7. EVENTS OF DEFAULT
If any of the following events shall occur and be continuing:
(a) The Borrower shall fail to pay any principal of any Loan when due in
accordance with the terms hereof; or the Borrower shall fail to pay any interest
on any Loan, or any other amount payable hereunder, within five days after any
such interest or other amount becomes due in accordance with the terms hereof;
or
(b) Any representation or warranty made or deemed made by either Obligor
herein or in any other Loan Document or which is contained in any certificate
furnished by it at any time under or in connection with this Agreement shall
prove to have been incorrect in any material respect on or as of the date made
or deemed made; or
(c) The Borrower shall default in the observance or performance of any
agreement contained in Section 6; or
(d) Either Obligor shall default in the observance or performance of any
other term, covenant or agreement contained in this Agreement (other than as
provided in paragraphs (a) through (c) of this Section), and such default shall
continue unremedied for a period of 30 days after notice to the Borrower by the
Administrative Agent or the Required Lenders; or
(e) The Borrower or any of its Subsidiaries shall (i) default in any
payment of principal of or interest of any Indebtedness (other than the Loans)
in excess of $10,000,000 individually or $25,000,000 in the aggregate, beyond
the period of grace (not to exceed 30 days), if any, provided in the instrument
or agreement under which such Indebtedness was created, or (ii) fail to observe
or perform any other agreement or condition relating to any such Indebtedness 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
failure 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, with the giving of notice if required, such Indebtedness to
CREDIT AGREEMENT
46
become due prior to its stated maturity (provided that failure to observe or
perform any such agreement or condition referred to in this clause (ii) shall
not be deemed to be an Event of Default until the grace period provided for in
such instrument or agreement with respect to such agreement or condition has
elapsed or, if no grace period is specified, such failure has continued for five
Business Days); or
(f) (i) The Borrower or any of its Material Subsidiaries shall commence
any case, proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief entered
with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts, or (B)
seeking appointment of a receiver, trustee, custodian, conservator or other
similar official for it or for all or any substantial part of its assets, or the
Borrower or any of its Material Subsidiaries shall make a general assignment for
the benefit of its creditors; or (ii) there shall be commenced against the
Borrower or any of its Material Subsidiaries any case, proceeding or other
action of a nature referred to in clause (i) above which (A) results in the
entry of an order for relief or any such adjudication or appointment or (B)
remains undismissed, undischarged or unbonded for a period of 90 days; or (iii)
there shall be commenced against the Borrower or any of its Material
Subsidiaries any case, proceeding or other action seeking issuance of a warrant
of attachment, execution, distraint or similar process against all or any
substantial part of its assets which results in the entry of an order for any
such relief which shall not have been vacated, discharged, or stayed or bonded
pending appeal within 60 days from the entry thereof; or (iv) the Borrower or
any of its Material Subsidiaries shall take any action in furtherance of, or
indicating its consent to, approval of, or acquiescence in, any of the acts set
forth in clause (i), (ii), or (iii) above; or (v) the Borrower or any of its
Material Subsidiaries shall generally not, or shall be unable to, or shall admit
in writing its inability to, pay its debts as they become due; or
(g) (i) Any Person shall engage in any "prohibited transaction" (as
defined in Section 406 of ERISA or Section 4975 of the Code) involving any
Single Employer Plan, (ii) any "accumulated funding deficiency" (as defined in
Section 302 of ERISA), whether or not waived, shall exist with respect to any
Plan or any Lien in favor of the PBGC or a Plan shall arise on the assets of any
Obligor, (iii) a Reportable Event shall occur with respect to, or proceedings
shall commence to have a trustee appointed, or a trustee shall be appointed, to
administer or to terminate, any Single Employer Plan, which Reportable Event or
commencement of proceedings or appointment of a trustee is likely to result in
the termination of such Plan for purposes of Title IV of ERISA, (iv) any Single
Employer Plan shall terminate for purposes of Title IV of ERISA, (v) any Obligor
or any Commonly Controlled Entity shall incur any liability in connection with a
withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan or
(vi) any other event or condition shall occur or exist with respect to a Plan;
and in each case in clauses (i) through (vi) above, such event or condition,
together with all other such events or conditions, if any, could reasonably be
expected to have a Material Adverse Effect; or
(h) One or more judgments or decrees shall be entered against the Borrower
or any of its Subsidiaries involving a liability (to the extent not paid or
fully covered by insurance) of $10,000,000 or more in the case of any one such
judgment or $25,000,000 or more in the aggregate for all such judgments and
decrees, and all such judgments or decrees shall not have been vacated,
discharged, satisfied, stayed or bonded pending appeal within 90 days from the
entry thereof; or
CREDIT AGREEMENT
47
(i) Any Person or "group" (within the meaning of Section 13(d) or 14(d) of
the Securities Exchange Act of 1934, as amended) (i) shall have acquired
beneficial ownership of 20% or more of any outstanding class of Capital Stock
having ordinary voting power in the election of directors of the Borrower or
(ii) shall obtain the power (whether or not exercised) to elect a majority of
the Borrower's directors; or the Borrower shall cease to own, beneficially and
of record, the sole Class B membership interest in International or shall cease
to have power to elect a majority of International's directors;
then, and in any such event, (A) if such event is an Event of Default specified
in clause (i) or (ii) of paragraph (f) of this Section with respect to the
Borrower, automatically the Commitments shall immediately terminate and the
Loans hereunder (with accrued interest thereon) and all other amounts owing
under this Agreement and the Notes shall immediately become due and payable, and
(B) if such event is any other Event of Default, either or both of the following
actions may be taken: (i) with the consent of the Required Lenders, the
Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower declare the Commitments to
be terminated forthwith, whereupon the Commitments shall immediately terminate;
and (ii) with the consent of the Required Lenders, the Administrative Agent may,
or upon the request of the Required Lenders, the Administrative Agent shall, by
notice to the Borrower, declare the Loans hereunder (with accrued interest
thereon) and all other amounts owing under this Agreement and the Notes to be
due and payable forthwith, whereupon the same shall immediately become due and
payable. Except as expressly provided above in this Section, presentment,
demand, protest and all other notices of any kind are hereby expressly waived.
SECTION 8. THE ADMINISTRATIVE AGENT
8.1 Appointment. Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on
its behalf under the provisions of this Agreement and the other Loan Documents
and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, the
Administrative Agent shall not have any duties or responsibilities, except those
expressly set forth herein, or any fiduciary relationship with any Lender, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Administrative Agent.
8.2 Delegation of Duties. The Administrative Agent may execute any
of its duties under this Agreement and the other Loan Documents by or through
agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. The Administrative Agent shall
not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.
8.3 Exculpatory Provisions. Neither the Administrative Agent nor any
of its officers, directors, employees, agents, attorneys-in-fact or Affiliates
shall be (i) liable for any action lawfully taken or omitted to be taken by it
or such Person under or in connection with this
CREDIT AGREEMENT
48
Agreement or any other Loan Document (except for its or such Person's own gross
negligence or willful misconduct) or (ii) responsible in any manner to any of
the Lenders for any recitals, statements, representations or warranties made by
either Obligor or any officer thereof contained in this Agreement or any other
Loan Document or in any certificate, report, statement or other document
referred to or provided for in, or received by the Administrative Agent under or
in connection with, this Agreement or any other Loan Document or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document or for any failure of either Obligor to
perform its obligations hereunder or thereunder. The Administrative Agent shall
not be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties,
books or records of either Obligor or any of its Subsidiaries.
8.4 Reliance by Administrative Agent. The Administrative Agent shall
be entitled to rely, and shall be fully protected in relying, upon any Note,
writing, resolution, notice, consent, certificate, affidavit, letter, telecopy,
or teletype message, statement, order or other document or conversation believed
by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice and statements of legal counsel
(including, without limitation, counsel to either Obligor), independent
accountants and other experts selected by the Administrative Agent. The
Administrative Agent may deem and treat the payee of any Note as the owner
thereof for all purposes unless a written notice of assignment, negotiation or
transfer thereof shall have been filed with the Administrative Agent. The
Administrative Agent shall be fully justified in failing or refusing to take any
action under this Agreement or any other Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders (or such other
Lenders as may be required hereunder) as it deems appropriate or it shall first
be indemnified to its satisfaction by the Lenders against any and all liability
and expense which may be incurred by it by reason of taking or continuing to
take any such action. The Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement and the
other Loan Documents in accordance with a request of the Required Lenders (or
such other Lenders as may be required hereunder), and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the
Lenders and all future holders of the Loans.
8.5 Notice of Default. The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of Default
(other than an Event of Default consisting of failure of the Borrower to pay
when due any principal of or interest on a Loan) hereunder unless the
Administrative Agent has received notice from a Lender or the Borrower referring
to this Agreement, describing such Default or Event of Default and stating that
such notice is a "notice of default". In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders. The Administrative Agent shall take such action with
respect to such Default or Event of Default as shall be reasonably directed by
the Required Lenders; provided that unless and until the Administrative Agent
shall have received such directions, the Administrative Agent may (but shall not
be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the
best interests of the Lenders.
8.6 Non-Reliance on Administrative Agent and Other Lenders. Each
Lender expressly acknowledges that neither the Administrative Agent nor any of
its officers, directors, employees, agents, attorneys-in-fact or Affiliates has
made any representations or warranties to it
CREDIT AGREEMENT
49
and that no act by the Administrative Agent hereinafter taken, including any
review of the affairs of the Borrower or any of its Subsidiaries, shall be
deemed to constitute any representation or warranty by the Administrative Agent
to any Lender. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of the
Obligors and made its own decision to make its Loans hereunder and enter into
this Agreement. Each Lender also represents that it will, independently and
without reliance upon the Administrative Agent or any other Lender, and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under the Loan Documents, and to make such investigation as it
deems necessary to inform itself as to the business, operations, property,
financial and other condition and creditworthiness of the Obligors or any of
their Subsidiaries. Except for notices, reports and other documents expressly
required to be furnished to the Lenders by the Administrative Agent hereunder,
the Administrative Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of either Obligor or any of their Subsidiaries which may come
into the possession of the Administrative Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates.
8.7 Indemnification. The Lenders agree to indemnify the
Administrative Agent in its capacity as such (to the extent not reimbursed by
the Borrower and without limiting the obligation of the Borrower to do so),
ratably according to their respective Commitment Percentages in effect on the
date on which indemnification is sought, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind whatsoever which may at any time
(including, without limitation, at any time following the payment of the Loans)
be imposed on, incurred by or asserted against the Administrative Agent in any
way relating to or arising out of, the Commitments, this Agreement, (including,
without limitation, enforcement of the Administrative Agent's rights under this
Section) any of the other Loan Documents or any documents contemplated by or
referred to herein or therein or the transactions contemplated hereby or thereby
or any action taken or omitted by the Administrative Agent under or in
connection with any of the foregoing; provided that no Lender shall be liable
for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Administrative Agent's gross negligence or willful
misconduct. The agreements in this Section shall survive the payment of the
Loans and all other amounts payable hereunder.
8.8 Administrative Agent in Its Individual Capacity. The
Administrative Agent and its Affiliates may make loans to, accept deposits from
and generally engage in any kind of business with the Obligors as though the
Administrative Agent were not the Administrative Agent hereunder and under the
other Loan Documents. With respect to the Loans made by it, the Administrative
Agent shall have the same rights and powers under this Agreement and the other
Loan Documents as any Lender and may exercise the same as though it were not the
Administrative Agent, and the terms "Lender" and "Lenders" shall include the
Administrative Agent in its individual capacity.
8.9 Successor Administrative Agent. The Administrative Agent may
resign as Administrative Agent upon 10 days' notice to the Lenders, and the
Administrative Agent may be
CREDIT AGREEMENT
50
removed at any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall appoint from among the
Lenders a successor agent for the Lenders, which successor agent (provided that
it shall have been approved by the Borrower (such approval not to be
unreasonably withheld)), shall succeed to the rights, powers and duties of the
Administrative Agent hereunder. Effective upon such appointment and approval,
the term "Administrative Agent" shall mean such successor agent, and the former
Administrative Agent's rights, powers and duties as Administrative Agent shall
be terminated, without any other or further act or deed on the part of such
former Administrative Agent or any of the parties to this Agreement or any
holders of the Loans. After any retiring Administrative Agent's resignation or
removal as Administrative Agent, the provisions of this Section 8 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement and the other Loan Documents.
8.10 Substitute Administrative Agent. If at any time Citibank or the
Borrower reasonably determines that Citibank is prevented from carrying out its
functions as Administrative Agent hereunder as contemplated hereby, Citibank or
the Borrower, as the case may be, shall forthwith so notify the Borrower or
Citibank, as the case may be, and the Backup Agent (and Citibank shall promptly
so notify the Lenders), and the Backup Agent shall thereupon automatically
assume and perform all of the functions of the Administrative Agent and shall be
entitled to all of the rights and benefits of the Administrative Agent
hereunder, until and only until such time as Citibank and the Borrower
determine, and notify the Backup Agent (which shall promptly notify the Lenders)
that Citibank is no longer prevented from carrying out its functions as
Administrative Agent hereunder as contemplated hereby, whereupon Citibank shall
automatically resume and perform all of the functions of the Administrative
Agent hereunder. Each Lender agrees to the foregoing and authorizes the Backup
Agent to assume and perform the functions of the Administrative Agent under the
circumstances set forth above.
8.11 Arrangers, Etc. The parties designated on the cover page hereof
as "Sole Lead Arranger and Sole Book Manager", "Co-Arranger" and "Co-Syndication
Agents" shall have, in their capacities as such, no responsibilities or
liabilities under or in connection with this Agreement.
SECTION 9. GUARANTEE
The Guarantor agrees, to induce the other parties to enter into this
Agreement and for other valuable consideration, receipt of which is hereby
acknowledged as follows:
(a) Guarantee. The Guarantor hereby guarantees to the Lenders and the
Administrative Agent the prompt payment in full when due (whether at stated
maturity, by acceleration or otherwise) of the principal of and interest on the
Loans and the Notes and all other amounts whatsoever now or hereafter payable or
becoming payable by the Borrower under the Loan Documents, in each case strictly
in accordance with the terms thereof (collectively, the "Guaranteed
Obligations"). The Guarantor hereby further agrees that if the Borrower shall
fail to pay in full when due (whether at stated maturity, by acceleration or
otherwise) any of the Guaranteed Obligations, the Guarantor will promptly pay
the same, without any demand or notice whatsoever, and that in the case of any
extension of time of payment or renewal of any of
CREDIT AGREEMENT
51
the Guaranteed Obligations, the same will be promptly paid in full when due
(whether at extended maturity, by acceleration or otherwise) in accordance with
the terms of such extension or renewal. This subsection 9(a) is a continuing
guaranty and is a guaranty of payment and is not merely a guaranty of collection
and shall apply to all Guaranteed Obligations whenever arising.
(b) Acknowledgments, Waivers and Consents. The Guarantor agrees that
its obligations under clause (a) above shall, to the fullest extent permitted by
applicable law, be primary, absolute, irrevocable and unconditional under any
and all circumstances and that the guaranty therein is made with respect to any
Guaranteed Obligations now existing or in the future arising. Without limiting
the foregoing, the Guarantor agrees that:
(i) The occurrence of any one or more of the following shall not
affect the enforceability or effectiveness of this Section 9 in accordance
with its terms or affect, limit, reduce, discharge or terminate the
liability of the Guarantor, or the rights, remedies, powers and privileges
of the Administrative Agent or any Lender, under this subection 9(b):
(A) any modification or amendment (including without
limitation by way of amendment, extension, renewal or waiver), or
any acceleration or other change in the time for payment or
performance of the terms of all or any part of the Guaranteed
Obligations or any Loan Document, or any other agreement or
instrument whatsoever relating thereto, or any modification of the
Commitments;
(B) any release, termination, waiver, abandonment, lapse or
expiration, subordination or enforcement of the liability of any
other guarantee of all or any part of the Guaranteed Obligations;
(C) any application of the proceeds of any other guarantee
(including without limitation the obligations of any other guarantor
of all or any part of the Guaranteed Obligations) to all or any part
of the Guaranteed Obligations in any such manner and to such extent
as the Administrative Agent may determine;
(D) any release of any other Person (including without
limitation any other guarantor with respect to all or any part of
the Guaranteed Obligations) from any personal liability with respect
to all or any part of the Guaranteed Obligations;
(E) any settlement, compromise, release, liquidation or
enforcement, upon such terms and in such manner as the
Administrative Agent may determine or as applicable law may dictate,
of all or any part of the Guaranteed Obligations or any other
guarantee of (including without limitation any letter of credit
issued with respect to) all or any part of the Guaranteed
Obligations;
(F) the giving of any consent to the merger or consolidation
of, the sale of substantial assets by, or other restructuring or
termination of the corporate existence of the Borrower or any other
Person or any disposition of any shares of the Guarantor;
CREDIT AGREEMENT
52
(G) any proceeding against the Borrower or any other guarantor
of all or any part of the Guaranteed Obligations or any collateral
provided by any other Person or the exercise of any rights,
remedies, powers and privileges of the Administrative Agent and the
Lenders under the Loan Documents or otherwise in such order and such
manner as the Administrative Agent may determine, regardless of
whether the Administrative Agent or the Lenders shall have proceeded
against or exhausted any collateral, right, remedy, power or
privilege before proceeding to call upon or otherwise enforce this
Section 9;
(H) the entering into such other transactions or business
dealings with the Borrower, any Subsidiary or Affiliate of the
Borrower or any other guarantor of all or any part of the Guaranteed
Obligations as the Administrative Agent or any Lender may desire; or
(I) all or any combination of any of the actions set forth in
this subsection 9(b)(i).
(ii) The enforceability and effectiveness of this Section 9 and the
liability of the Guarantor, and the rights, remedies, powers and
privileges of the Administrative Agent and the Lenders under this Section
9 shall not be affected, limited, reduced, discharged or terminated, and
the Guarantor hereby expressly waives to the fullest extent permitted by
law any defense now or in the future arising, by reason of:
(A) the illegality, invalidity or unenforceability of all or
any part of the Guaranteed Obligations, any Loan Document or any
other agreement or instrument whatsoever relating to all or any part
of the Guaranteed Obligations;
(B) any disability or other defense with respect to all or any
part of the Guaranteed Obligations, including the effect of any
statute of limitations that may bar the enforcement of all or any
part of the Guaranteed Obligations or the obligations of any such
other guarantor;
(C) the illegality, invalidity or unenforceability of any
security for or other guarantee (including without limitation any
letter of credit) of all or any part of the Guaranteed Obligations
or the lack of perfection or continuing perfection or failure of the
priority of any Lien on any collateral for all or any part of the
Guaranteed Obligations;
(D) the cessation, for any cause whatsoever, of the liability
of the Borrower or any other guarantor with respect to all or any
part of the Guaranteed Obligations (other than, subject to
subsection 9(c), by reason of the full payment of all Guaranteed
Obligations);
(E) any failure of the Administrative Agent or any Lender to
marshal assets in favor of the Borrower or any other Person
(including any other guarantor of all or any part of the Guaranteed
Obligations), to exhaust any collateral for all or any part of the
Guaranteed Obligations, to pursue or exhaust any right, remedy,
power or privilege it may have against the Borrower or any other
guarantor of all or any part of the Guaranteed Obligations or any
other Person or to take any
CREDIT AGREEMENT
53
action whatsoever to mitigate or reduce such or any other Person's
liability, the Administrative Agent and the Lenders being under no
obligation to take any such action notwithstanding the fact that all
or any part of the Guaranteed Obligations may be due and payable and
that the Borrower may be in default of its obligations under any
Loan Document;
(F) any counterclaim, set-off or other claim which the
Borrower or any other guarantor of all or any part of the Guaranteed
Obligations has or claims with respect to all or any part of the
Guaranteed Obligations;
(G) any failure of the Administrative Agent or any Lender or
any other Person to file or enforce a claim in any bankruptcy or
other proceeding with respect to any Person;
(H) any bankruptcy, insolvency, reorganization, winding-up or
adjustment of debts, or appointment of a custodian, liquidator or
the like of it, or similar proceedings commenced by or against any
Person, including any discharge of, or bar or stay against
collecting, all or any part of the Guaranteed Obligations (or any
interest on all or any part of the Guaranteed Obligations) in or as
a result of any such proceeding;
(I) any action taken by the Administrative Agent or any Lender
that is authorized by this subsection 9(b) or otherwise in this
Section 9 or by any other provision of any Loan Document or any
omission to take any such action; or
(J) any other circumstance whatsoever that might otherwise
constitute a legal or equitable discharge or defense of a surety or
guarantor.
(iii) To the fullest extent permitted by law, the Guarantor
expressly waives, for the benefit of the Administrative Agent and the
Lenders, all diligence, presentment, demand for payment or performance,
notices of nonpayment or nonperformance, protest, notices of protest,
notices of dishonor and all other notices or demands of any kind or nature
whatsoever, and any requirement that the Administrative Agent or any
Lender exhaust any right, power or remedy or proceed against the Borrower
under any Loan Document or other agreement or instrument referred to
herein or therein, or against any other Person under any other guarantee
of, or security for, any of the Guaranteed Obligations, and all notices of
acceptance of this Section 9 or of the existence, creation, incurring or
assumption of new or additional Guaranteed Obligations.
(c) Reinstatement. The obligations of the Guarantor under this Section 9
shall be automatically reinstated if and to the extent that for any reason any
payment by or on behalf of the Borrower in respect of the Guaranteed Obligations
is rescinded or must otherwise be restored by any holder of any of the
Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise.
(d) Subrogation. The Guarantor hereby agrees that, until the final payment
in full of all Guaranteed Obligations and the expiration or termination of the
Commitments under this Agreement, it shall not exercise any right or remedy
arising by reason of any performance by it of its guarantee in subsection 9(a),
whether by subrogation, reimbursement, contribution or
CREDIT AGREEMENT
54
otherwise, against the Borrower or any other guarantor of any of the Guaranteed
Obligations or any security for any of the Guaranteed Obligations.
(e) Remedies. The Guarantor agrees that, as between the Guarantor and the
Administrative Agent and the Lenders, the obligations of the Borrower under this
Agreement, the Notes or any other Loan Documents may be declared to be forthwith
due and payable as provided in Section 7 (and shall be deemed to have become
automatically due and payable in the circumstances provided in said Section 7)
for purposes of subsection 9(a), notwithstanding any stay, injunction or other
prohibition preventing such declaration (or such obligations from becoming
automatically due and payable) as against the Borrower and that, in the event of
such declaration (or such obligations being deemed to have become automatically
due and payable), such obligations (whether or not due and payable by the
Borrower) shall forthwith become due and payable by such Guarantor for purposes
of said subsection 9(a).
(f) Payments. All payments by the Guarantor under this Section 9 shall be
made in Dollars, without deduction, set-off or counterclaim at the place
specified in Section 2.19 and free and clear of any and all present and future
Non-Excluded Taxes.
(g) Solvency. The Guarantor represents and warrants to the Administrative
Agent and the Lenders that after giving effect to each borrowing hereunder it
will be Solvent.
SECTION 10. MISCELLANEOUS
10.1 Amendments and Waivers. Neither this Agreement nor any other
Loan Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this Section. The Required
Lenders may, or, with the written consent of the Required Lenders, the
Administrative Agent may, from time to time, (a) enter into with the Borrower
and the Guarantor written amendments, supplements or modifications hereto and to
the other Loan Documents for the purpose of adding any provisions to this
Agreement or the other Loan Documents or changing in any manner the rights of
the Lenders or of the Borrower or the Guarantor hereunder or thereunder or (b)
waive, on such terms and conditions as the Required Lenders or the
Administrative Agent, as the case may be, may specify in such instrument, any of
the requirements of this Agreement or the other Loan Documents or any Default or
Event of Default and its consequences; provided, however, that no such waiver
and no such amendment, supplement or modification shall (i) reduce the amount or
extend the scheduled date of maturity of any Loan (provided, that for the
purposes of this clause (i) the making of the Term Loans shall not be considered
an extension of the scheduled date of maturity), or reduce the stated rate of
any interest or fee payable hereunder or extend the scheduled date of any
payment thereof or increase the amount or extend the expiration date of any
Lender's Commitment, in each case without the written consent of each Lender
affected thereby, or (ii) amend, modify or waive any provision of this Section
or subsection 10.6(a) or reduce the percentage specified in the definition of
Required Lenders, or consent to the assignment or transfer by any Obligor of any
of its rights and obligations under this Agreement and the other Loan Documents,
in each case without the written consent of all the Lenders, or (iii) release
the obligations of the Guarantor under subsection 9(a) without the written
consent of all the Lenders, or (iv) amend, modify or waive any provision of
Section 8 without the written consent of the then Administrative Agent. Any such
waiver and any such amendment, supplement or modification shall apply equally to
each of the Lenders and shall be binding upon
CREDIT AGREEMENT
55
the Borrower, the Guarantor, the Lenders, the Administrative Agent and all
future holders of the Loans. In the case of any waiver, the Borrower, the
Guarantor, the Lenders and the Administrative Agent shall be restored to their
former positions and rights hereunder and under the other Loan Documents, and
any Default or Event of Default waived shall be deemed to be cured and not
continuing; no such waiver shall extend to any subsequent or other Default or
Event of Default or impair any right consequent thereon.
10.2 Notices. (a) All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
facsimile transmission) and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made (i) in the case of delivery by hand,
when delivered, (ii) in the case of delivery by mail, three Business Days after
being deposited in the mails, certified or registered postage prepaid, or (iii)
in the case of delivery by facsimile transmission, when sent and receipt has
been confirmed, addressed as follows in the case of the Borrower and the
Administrative Agent, and as set forth in an Administrative Questionnaire
delivered to the Administrative Agent in the case of the Lenders, or to such
other address as may be hereafter notified by the respective parties hereto:
Borrower: MasterCard Incorporated
0000 Xxxxxxxx Xxxxxx
Xxxxxxxx, Xxx Xxxx 00000-0000
Attention: Xxxxxx Xxxxxxxxx, Senior Vice President,
Treasurer
Fax: 000-000-0000
Telephone: 000-000-0000
Guarantor: MasterCard International Incorporated
0000 Xxxxxxxx Xxxxxx
Xxxxxxxx, Xxx Xxxx 00000-0000
Attention: Xxxxxx Xxxxxxxxx, Senior Vice President,
Treasurer
Fax: 000-000-0000
Telephone: 000-000-0000
The Administrative
Agent or the
Swing Line Lender: Citibank, N.A.
0 Xxxxx Xxx, Xxxxx 000
Xxx Xxxxxx, Xxxxxxxx 00000
Attention: Xxxx Xxxxxxxxx
Fax: 000-000-0000
Telephone: 000-000-0000
provided that any notice, request or demand to or upon the Administrative Agent
or the Lenders pursuant to Section 2.2, 2.4, 2.6, 2.8, 2.9, 2.11, 2.19 or 2.20
shall not be effective until received.
(b) Each Obligor hereby agrees that it will provide to the Administrative
Agent all information, documents and other materials that it is obligated to
furnish to the Administrative Agent pursuant to the Loan Documents, including,
without limitation, all notices, requests, financial statements, financial and
other reports, certificates and other information materials, but
CREDIT AGREEMENT
56
excluding any such communication that (i) requests, or converts or continues
under Section 2.9 hereof, a borrowing or relates to the payment of any principal
or other amount due under this Agreement prior to the scheduled date therefor,
(ii) provides notice of any Default or Event of Default under this Agreement,
(iii) is required to be delivered to satisfy any condition precedent to the
occurrence of the Closing Date and/or any borrowing, or (iv) initiates or
responds to legal process (all such non-excluded communications being referred
to herein collectively as "Communications"), by transmitting the Communications
in an electronic/soft medium in a format acceptable to the Administrative Agent
to xxxxxxxxxxxxxxx@xxxxxxxxx.xxx. In addition, each Obligor agrees to continue
to provide the Communications to the Administrative Agent in the manner
specified in the Loan Documents but only to the extent requested by the
Administrative Agent.
(c) Each Obligor further agrees that the Administrative Agent may make the
Communications available to the Lenders by posting the Communications on
Intralinks or a substantially similar electronic transmission system (the
"Platform"). THE PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE". THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE
COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY
FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS,
IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT
PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL
THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE
OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES
(COLLECTIVELY, THE "AGENT PARTIES") HAVE ANY LIABILITY TO ANY OBLIGOR, ANY
LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT
LIMITATION, DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES,
LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF SUCH
OBLIGOR'S OR THE ADMINISTRATIVE AGENT'S TRANSMISSION OF COMMUNICATIONS THROUGH
THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN
A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE
RESULTED PRIMARILY FROM SUCH AGENT PARTY'S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT.
(d) The Administrative Agent agrees that the receipt of the Communications
by the Administrative Agent at its e-mail address set forth above shall
constitute effective delivery of the Communications to the Administrative Agent
for purposes of the Loan Documents. Each Lender agrees that notice to it (as
provided in the next sentence) specifying that the Communications have been
posted to the Platform shall constitute effective delivery of the Communications
to such Lender for purposes of the Loan Documents. Each Lender agrees (i) to
provide to the Administrative Agent in writing (including by electronic
communication), promptly after the date of this Agreement, an e-mail address to
which the foregoing notice may be sent by electronic transmission and (ii) that
the foregoing notice may be sent to such e-mail address.
CREDIT AGREEMENT
57
(e) Nothing herein shall prejudice the right of the Administrative
Agent or any Lender to give any notice or other communication pursuant to any
Loan Document in any other manner specified in such Loan Document.
10.3 No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of the Administrative Agent or any Lender, any
right, remedy, power or privilege hereunder or under the other Loan Documents
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges herein provided are cumulative and
not exclusive of any rights, remedies, powers and privileges provided by law.
10.4 Survival of Representations and Warranties. All representations
and warranties made hereunder, in the other Loan Documents and in any document,
certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Agreement and the making of the
Loans hereunder.
10.5 Payment of Expenses and Taxes. The Borrower agrees (a) to pay
or reimburse the Administrative Agent for all reasonable fees, charges and
disbursements of counsel incurred in connection with this Agreement and the
other Loan Documents or the amendment, modification or waiver thereof and all
reasonable and documented out-of-pocket expenses of the Administrative Agent
incurred in connection with any amendment, modification or waiver with respect
to this Agreement and the other Loan Documents, (b) to pay or reimburse each
Lender and the Administrative Agent for all its costs and expenses incurred in
connection with the enforcement or preservation of any rights under this
Agreement (including, without limitation, this Section), the other Loan
Documents and any such other documents, including, without limitation, the
reasonable fees and disbursements of counsel (including, without limitation, the
non-duplicative documented allocated cost of in-house counsel) to each Lender
and of counsel to the Administrative Agent, (c) to pay, indemnify, and hold
harmless each Lender, the Administrative Agent, their respective affiliates and
their respective officers, directors, employees, agents and advisors (each, an
"Indemnitee") from, any and all recording and filing fees and any and all
liabilities with respect to, or resulting from any delay in paying, stamp,
excise and other taxes, if any, which may be payable or determined to be payable
in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement, the other Loan Documents and any such other documents, and (d)
to pay, indemnify, and hold harmless each Indemnitee from and against any and
all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever (including, without limitation, reasonable legal fees) with respect
to the execution, delivery, enforcement, performance and administration of this
Agreement (including, without limitation, this Section), the other Loan
Documents and any such other documents, including, without limitation, any
investigative, administrative or judicial proceeding relating to the foregoing
or any of the foregoing relating to any actual or proposed use of proceeds of
the Loans or the violation of, noncompliance with or liability under, any
Environmental Law applicable to the operations of either Obligor, any of their
Subsidiaries or any of the Properties or arising out of the Commitments (all the
foregoing in this clause (d), collectively, the "indemnified liabilities"),
provided that the Borrower shall have no obligation hereunder to any Indemnitee
with respect to indemnified liabilities arising from the gross negligence or
willful misconduct of such Indemnitee. The Borrower waives, to the
CREDIT AGREEMENT
58
maximum extent not prohibited by law, any right it may have to claim or recover
in any legal action or proceeding referred to in this Section any special,
exemplary, punitive or consequential damages. The agreements in this Section
shall survive repayment of the Loans and all other amounts payable hereunder.
10.6 Successors and Assigns; Participations and Assignments.
(a) This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns, except that neither
Obligor may assign or transfer any of its rights or obligations under this
Agreement without the prior written consent of each Lender.
(b) Any Lender may, in the ordinary course of its commercial banking
business and in accordance with applicable law, at any time sell to one or more
banks or other entities ("Participants") participating interests in any Loan
owing to such Lender, any Commitment or Swing Line Commitment of such Lender or
any other interest of such Lender hereunder and under the other Loan Documents.
In the event of any such sale by a Lender of a participating interest to a
Participant, such Lender's obligations under this Agreement to the other parties
to this Agreement shall remain unchanged, such Lender shall remain solely
responsible for the performance thereof, such Lender shall remain the holder of
any such Loan for all purposes under this Agreement and the other Loan
Documents, and the Borrower and the Administrative Agent 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 Loan Documents. No Lender shall
be entitled to create in favor of any Participant, in the participation
agreement pursuant to which such Participants participating interest shall be
created or otherwise, any right to vote on, consent to or approve any matter
relating to this Agreement or any other Loan Document except for those specified
in clauses (i), (ii) and (iii) of the proviso to Section 10.1. The Borrower
agrees that if amounts outstanding under this Agreement are due or unpaid, or
shall have been declared or shall have become due and payable upon the
occurrence of an Event of Default, each Participant shall, to the maximum extent
permitted by applicable law, be deemed to have the right of setoff in respect of
its participating interest in amounts owing under this Agreement to the same
extent as if the amount of its participating interest were owing directly to it
as a Lender under this Agreement, provided that, in purchasing such
participating interest, such Participant shall be deemed to have agreed to share
with the Lenders the proceeds thereof as provided in subsection 10.7(a) as fully
as if it were a Lender hereunder. The Borrower also agrees that each Participant
shall be entitled to the benefits of Sections 2.19, 2.20, 2.22 and 2.23 with
respect to its participation in the Commitments, Swing Line Commitments and the
Loans outstanding from time to time as if it was a Lender; provided that, in the
case of Section 2.23, such Participant shall have complied with the requirements
of said Section and provided, further, that no Participant shall be entitled to
receive any greater amount pursuant to any such Section than the transferor
Lender would have been entitled to receive in respect of the amount of the
participation transferred by such transferor Lender to such Participant had no
such transfer occurred.
(c) Subject to the provisions of subsection 10.6(d) relating to the
assignment of CAF Advances, any Lender may, in the ordinary course of its
commercial banking business and in accordance with applicable law, at any time
and from time to time assign to one or more banks or other financial
institutions, including a finance company or fund (whether a corporation,
partnership or other entity) which is engaged in making, purchasing or otherwise
investing in
CREDIT AGREEMENT
59
commercial loans in the ordinary course of its business, and having total assets
in excess of $500,000,000, (such bank or financial institution, an "Assignee")
all or any part of its rights and obligations under this Agreement and the other
Loan Documents; provided, however, that
(i) except in the case of an assignment (A) to a Lender or subject
to giving prior written notice thereof to the Borrower and the
Administrative Agent, an Affiliate of a Lender which is a bank or
financial institution or (B) of CAF Advances, each of the Administrative
Agent and (except when a Default or Event of Default shall have occurred
and be continuing) the Borrower must give its consent to such assignment
(which in each case shall not be unreasonably withheld or delayed);
(ii) the Swing Line Lender may not transfer any portion of the Swing
Line Commitment without the consent of the Borrower (such consent not to
be unreasonably withheld or delayed);
(iii) in the case of any assignment to any Assignee that is not a
Lender or an Affiliate thereof, the sum of the aggregate principal amount
of the Loans and the aggregate amount of the Commitments and Swing Line
Commitments being assigned and, if such assignment is of less than all of
the rights and obligations of the assigning Lender, the sum of the
aggregate principal amount of the Loans and the aggregate amount of the
Commitments and Swing Line Commitments remaining with the assigning Lender
are each not less than $5,000,000 (or such lesser amount as may be agreed
to by the Borrower and the Administrative Agent); and
(iv) such assignment shall be evidenced by an Assignment and Acceptance,
substantially in the form of Exhibit H, executed by such Assignee, such
assigning Lender (and, in the case of an Assignee that is not then a Lender or
an Affiliate thereof, by the Borrower and the Administrative Agent) and
delivered to the Administrative Agent for its acceptance and recording in the
Register.
Upon such execution, delivery, acceptance and recording, from and after the
effective date determined pursuant to such Assignment and Acceptance, (x) the
Assignee thereunder shall be a party hereto and, to the extent provided in such
Assignment and Acceptance, have the rights and obligations of a Lender hereunder
with a Commitment or Swing Line Commitment as set forth therein, and (y) the
assigning Lender thereunder shall, to the extent provided in such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all or the remaining portion of an
assigning Lender's rights and obligations under this Agreement such assigning
Lender shall cease to be a party hereto). Notwithstanding any provision of this
paragraph (c) and paragraph (f) of this Section, the consent of the Borrower
shall not be required, and, unless requested by the Assignee and/or the
assigning Lender, new Notes shall not be required to be executed and delivered
by the Borrower, for any assignment which occurs at any time when any of the
events described in Section 7(f) shall have occurred and be continuing.
(d) Any Lender may, in the ordinary course of its commercial banking
business and in accordance with applicable law, at any time and from time to
time assign to one or more banks, financial institutions or other entities ("CAF
Advance Assignees") any CAF Advance owing to such Lender, pursuant to a CAF
Advance Assignment, substantially in the form of Exhibit D-4 attached hereto,
executed by the assignor Lender and the CAF Advance Assignee. Upon such
CREDIT AGREEMENT
60
execution, from and after the date of such CAF Advance Assignment, the CAF
Advance Assignee shall, to the extent of the assignment provided for in such CAF
Advance Assignment, be deemed to have the same rights and benefits of payment
and enforcement with respect to such CAF Advance and the same rights of set-off
and obligation to share pursuant to Section 10.7 as it would have had if it were
a Lender hereunder; provided that unless such CAF Advance Assignment shall
otherwise specify and a copy of such CAF Advance Assignment shall have been
delivered to the Administrative Agent for its acceptance and recording in the
Register in accordance with subsection 10.6(e), the assignor thereunder shall
act as collection agent for the CAF Advance Assignee thereunder, and the
Administrative Agent shall pay all amounts received from the Borrower which are
allocable to the assigned CAF Advance directly to such assignor without any
further liability to such CAF Advance Assignee. A CAF Advance Assignee under a
CAF Advance Assignment shall not, by virtue of such CAF Advance Assignment,
become a party to this Agreement or have any rights to consent to or refrain
from consenting to any amendment, waiver or other modification of any provision
of this Agreement or any related document; provided that (x) the assignor under
such CAF Advance Assignment and such CAF Advance Assignee may, in their
discretion, agree between themselves upon the manner in which such assignor will
exercise its rights under this Agreement and any related document except no
Lender shall sell any CAF Advance pursuant to which the CAF Advance Assignee
shall have rights to approve any amendment or waiver to this Agreement except to
the extent such amendment or waiver would (i) reduce the principal amount of any
CAF Advance which has been assigned to such CAF Advance Assignee, (ii) reduce
the rate of interest on any such CAF Advance or any fees payable in connection
with such CAF Advance or (iii) extend the time of payment of principal or, or
interest on, any such CAF Advance or any other amount owing under this Agreement
and in connection with such CAF Advance, and (y) if a copy of such CAF Advance
Assignment shall have been delivered to the Administrative Agent for its
acceptance and recording in the Register in accordance with subsection 10.6(e),
neither the principal amount of, the interest rate on, nor the maturity date of,
any CAF Advance assigned to such CAF Advance Assignee thereunder will be
modified without the written consent of such CAF Advance Assignee. If a CAF
Advance Assignee has caused a CAF Advance Assignment to be recorded in the
Register in accordance with subsection 10.6(e), such CAF Advance Assignee may
thereafter, in the ordinary course of its business and in accordance with
applicable law, assign the CAF Advance assigned to it to any Lender, to any
affiliate or subsidiary of such CAF Advance Assignee or to any other financial
institution with the consent of the Borrower (which shall not be unreasonably
withheld), and the foregoing provisions of this paragraph (c) shall apply,
mutatis mutandis, to any such assignment by a CAF Advance Assignee. Except in
accordance with the preceding sentence, CAF Advances may not be further assigned
by a CAF Advance Assignee, subject to any legal or regulatory requirement that
the CAF Advance Assignee's assets must remain under its control.
(e) The Administrative Agent, on behalf of the Borrower, shall maintain at
the address of the Administrative Agent referred to in Section 10.2 a copy of
each Assignment and Acceptance delivered to it and a register (the "Register")
for the recordation of the names and addresses of the Lenders and the Commitment
of, and principal amount of the Loans owing to, each Lender from time to time.
The entries in the Register shall be conclusive, in the absence of manifest
error, and the Borrower, the Administrative Agent and the Lenders may (and, in
the case of any Loan or other obligation hereunder not evidenced by a Note,
shall) treat each Person whose name is recorded in the Register as the owner of
a Loan or other obligation hereunder as the owner thereof for all purposes of
this Agreement and the other Loan Documents, notwithstanding any
CREDIT AGREEMENT
61
notice to the contrary. Any assignment of any Loan or other obligation hereunder
not evidenced by a Note shall be effective only upon appropriate entries with
respect thereto being made in the Register. The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice.
(f) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an Assignee (and, in the case of an Assignee that is not
then a Lender or an affiliate thereof, by the Borrower and the Administrative
Agent) together with payment to the Administrative Agent of a registration and
processing fee of $3,500 and (if the Assignee is not a Lender) delivery to the
Administrative Agent of such Assignee's Administrative Questionnaire, the
Administrative Agent shall (i) promptly accept such Assignment and Acceptance
and (ii) on the effective date determined pursuant thereto record the
information contained therein in the Register and give notice of such acceptance
and recordation to the Lenders and the Borrower.
(g) The Borrower authorizes each Lender to disclose to any Participant or
Assignee (each, a "Transferee") and any prospective Transferee any and all
financial information in such Lender's possession concerning the Borrower and
its Subsidiaries and Affiliates which has been delivered to such Lender by or on
behalf of the Borrower or any of its Subsidiaries pursuant to this Agreement or
which has been delivered to such Lender by or on behalf of the Borrower or any
of its Subsidiaries in connection with such Lender's credit evaluation of the
Borrower and its Subsidiaries and Affiliates prior to becoming a party to this
Agreement.
(h) For avoidance of doubt, the parties to this Agreement acknowledge that
the provisions of this Section concerning assignments of Loans and Notes relate
only to absolute assignments and that such provisions do not prohibit
assignments creating security interests, including, without limitation, any
pledge or assignment by a Lender of any Loan or Note to any Federal Reserve Bank
in accordance with applicable law.
10.7 Adjustments; Set-off. (a) If any Lender (a "benefitted Lender")
shall at any time receive any payment of all or part of its Loans, 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 7(f), 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 interest thereon, such benefitted Lender shall
purchase for cash from the other Lenders a participating interest in such
portion of each such other Lender's Loan, 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.
(b) In addition to any rights and remedies of the Lenders provided by law,
each Lender shall have the right, without prior notice to either Obligor, any
such notice being expressly waived by each of them to the extent permitted by
applicable law, upon any amount becoming due and payable by either Obligor
hereunder (whether at stated maturity, by acceleration or otherwise) to set off
and appropriate and apply against such amount any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or
CREDIT AGREEMENT
62
contingent, matured or unmatured, at any time held or owing by such Lender or
any branch or agency thereof to or for the credit or the account of such
Obligor; provided that no such set-off and application may be made against
deposits in the accounts listed on Schedule 10.7(b) attached hereto. Each Lender
agrees promptly to notify such Obligor and the Administrative Agent after any
such set-off and application made by such Lender, provided that the failure to
give such notice shall not affect the validity of such set-off and application.
10.8 Counterparts. This Agreement may be executed by one or more of
the parties to this Agreement on any number of separate counterparts (including
by facsimile transmission), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument. A set of the copies of this
Agreement signed by all the parties shall be lodged with International and the
Administrative Agent.
10.9 Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
10.10 Integration. This Agreement and the other Loan Documents
represent the entire agreement of the Obligors, the Administrative Agent and the
Lenders with respect to the subject matter hereof, and there are no promises,
undertakings, representations or warranties by the Administrative Agent or any
Lender relative to subject matter hereof not expressly set forth or referred to
herein or in the other Loan Documents.
10.11 Termination of Commitments and Swing Line Commitments. The
Commitments and Swing Line Commitments shall terminate if the conditions to
closing set forth in Section 4.1 (subject to Section 4.3) shall not be satisfied
on or before June 30, 2004.
10.12 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
10.13 Submission To Jurisdiction; Waivers. Each Obligor hereby
irrevocably and unconditionally:
(a) submits for itself and its property in any legal action or proceeding
relating to this Agreement and the other Loan Documents to which it is a party,
or for recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the Courts of the State of New York, the
courts of the United States for the Southern District of New York, and appellate
courts from any thereof;
(b) consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the venue
of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;
CREDIT AGREEMENT
63
(c) agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to it at its address set
forth in Section 10.2 or at such other address of which the Administrative Agent
shall have been notified pursuant thereto;
(d) agrees that nothing herein shall affect the right to effect service of
process in any other manner permitted by law or shall limit the right to xxx in
any other jurisdiction; and
(e) waives, to the maximum extent not prohibited by law, any right it may
have to claim or recover in any legal action or proceeding referred to in this
Section any special, exemplary, punitive or consequential damages.
10.14 Acknowledgements. Each Obligor hereby acknowledges that:
(a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents;
(b) neither the Administrative Agent nor any Lender has any fiduciary
relationship with or duty to it arising out of or in connection with this
Agreement or any of the other Loan Documents, and the relationship between
Administrative Agent and Lenders, on one hand, and the Obligors, on the other
hand, in connection herewith or therewith is solely that of debtor and creditor;
and
(c) no joint venture is created hereby or by the other Loan Documents or
otherwise exists by virtue of the transactions contemplated hereby among the
Lenders or among the Obligors and the Lenders.
10.15 WAIVERS OF JURY TRIAL. EACH OBLIGOR, THE ADMINISTRATIVE AGENT
AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN
ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.
10.16 Confidentiality. Neither the Administrative Agent nor any
Lender shall disclose any Confidential Information to any Person without the
consent of the Borrower, other than (a) to the Administrative Agent's or such
Lender's Affiliates and their respective officers, directors, employees, agents
and advisors and, subject to the execution of an agreement for the benefit of
the Borrower to comply with the provisions of this Section, to actual or
prospective assignees and participants, (b) to the extent required by any
applicable law, rule or regulation or judicial process, (c) to any rating agency
when required by it, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder and (f) as requested or required by any
state, federal or foreign authority or examiner regulating banks or banking.
10.17 USA PATRIOT Act. Each Lender hereby notifies each Obligor that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the "Act"), it is required to obtain,
verify and record information that identifies each Obligor, which information
includes the name and address of such Obligor and other information that will
allow such Lender to identify each Obligor in accordance with the Act.
CREDIT AGREEMENT
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their proper and duly authorized officers as of
the day and year first above written.
MASTERCARD INCORPORATED
By: /s/ Xxxxxx Xxxxxxxxx
---------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Treasurer
MASTERCARD INTERNATIONAL INCORPORATED
By: /s/ Xxxxxx Xxxxxxxxx
---------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: SVP, Treasurer
CITIBANK, N.A.
as Administrative Agent and as Lender
By: /s/ Xxxxxxxxx X. Xxxxxx
---------------------------------------
Name: Xxxxxxxxx X. Xxxxxx
Title: Vice President
JPMORGAN CHASE BANK,
as Backup Agent and as Lender
By: /s/ Xxxxxxxxx Xxxxxxx
---------------------------------------
Name: Xxxxxxxxx Xxxxxxx
Title: Vice President
HSBC BANK USA
By: /s/ Xxxxx Xxxxxxxxx
---------------------------------------
Name: Xxxxx Xxxxxxxxx
Title: Senior Vice President
LLOYDS TSB BANK PLC
By: /s/ Xxxx X. Xxxxxxxxx
---------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Director-Project Finance (USA)
By: /s/ Xxxxxxx Xxxxx
---------------------------------------
Name: Xxxxxxx Xxxxx
Title: Assistant Vice President,
Financial Institutions
ROYAL BANK OF SCOTLAND PLC
By: /s/ Xxxxx Xxxxxxxx
---------------------------------------
Name: Xxxxx Xxxxxxxx
Title: Managing Director
XXXXXX XXXXXXX FINANCING, INC.
By: /s/ Xxxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Vice President
COMMONWEALTH BANK OF AUSTRALIA,
NEW YORK BRANCH
By: /s/ K. Xxxxxx Xxxxx
---------------------------------------
Name: K. Xxxxxx Xxxxx
Title: Financial Controller
BAYERISCHE HYPO- UND VEREINSBANK AG
By: /s/ Xxxxx Xxxxxx
---------------------------------------
Name: Xxxxx Xxxxxx
Title: Director
By: /s/ Xxxxxxx Xxxxx
---------------------------------------
Name: Xxxxxxx Xxxxx
Title: Director
SUMITOMO MITSUI BANKING CORPORATION
By: /s/ Xxxxxxxx Xxxx
---------------------------------------
Name: Xxxxxxxx Xxxx
Title: Senior Vice President
DEUTSCHE BANK LUXEMBOURG S.A.
By: /s/ Xxxxxx Xxxxxxxxx
---------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Vice President
By: /s/ Xxxxxxxxx Xxxxxxxxx
---------------------------------------
Name: Xxxxxxxxx Xxxxxxxxx
Title: Assistant Vice President
FIFTH THIRD BANK
By: /s/ Xxxx Xxxxxxx
---------------------------------------
Name: Xxxx Xxxxxxx
Title: AVP
ING BANK N.V.
By: /s/ Corinna Pattijn
---------------------------------------
Name: Corinna Pattijn
Title: Director
By: /s/ Xxxxxxxx Xxxxxxxxx
---------------------------------------
Name: Xxxxxxxx Xxxxxxxxx
Title: Vice President
PNC BANK, NATIONAL ASSOCIATION
By: /s/ Xxxxxxx X. Xxxxxxxxx
---------------------------------------
Name: Xxxxxxx X. Xxxxxxxxx
Title: Vice President
U.S. BANK, N.A.
By: /s/ Xxxxxxx X. Xxxxxxx
---------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Assistant Vice President
WESTPAC BANKING CORPORATION
By: /s/ Xxxx Xxxxx
---------------------------------------
Name: Xxxx Xxxxx
Title: Head of Relationship
Management
XXXXX FARGO BANK, NATIONAL ASSOCIATION
By: /s/ Xxx X. Xxxxxxx
---------------------------------------
Name: Xxx Xxxxxxx
Title: Vice President
ROYAL BANK OF CANADA
By: /s/ Xxxxxxxxx Xxxxxx-Allegra
---------------------------------------
Name: Xxxxxxxxx Xxxxxx-Allegra
Title: Authorized Signatory
SCHEDULE 1.1(a)
MASTERCARD INTERNATIONAL
PERMITTED INVESTMENTS
CASH EQUIVALENTS @ 03/31/04
FUND MANAGERS
MBIA CAPITAL MANAGEMENT INC $ 103,239
XXXXX, XXXX & XXXXX 710,828
BANC ONE INVESTMENTS ADVISORS CORPORATION 983,346
HSBC ASSET MANAGEMENT INC. 1,028,949
FLEET INVESTMENTS ADVISORS 1,623,092
XXXXXXX XXXXX BARNEY 2,321,517
MILESTONE CAPITAL 7,128,666
FEDERATED 35,918,328
FIDELITY INVESTMENTS 36,169,377
BLACKROCK PROVIDENT 37,843,791
------------
$123,831,134
============
MASTERCARD INTERNATIONAL INCORPORATED MANAGED
GRANDVIEW $ 3,750,000
MONTANA HEALTH 3,200,000
CHELA FINANCIAL 5,008,989
GEORGETOWN UNIV 8,500,000
CITY OF FORT WORTH 4,200,000
BURLINGTON 4,700,131
SOUTH TEXAS HIGHER ED 8,413,440
BRAZOS HIGHER 7,017,543
BRAZOS HIGHER 2,403,679
VERMONT 5,000,000
------------
$ 52,193,781
============
SCHEDULE 1.1(b)
MASTERCARD INCORPORATED
PERMITTED INVESTMENTS
MUNICIPAL BONDS AND EQUITY INVESTMENTS @ 3/31/04
SCHEDULE 1.1(b)
1 of 7
MASTERCARD INTERNATIONAL
PERMITTED INVESTMENTS
MUNICIPAL BONDS AND EQUITY INVESTMENTS @ 03/31/04
MASTERCARD INTERNATIONAL PORTFOLIO
MATURITY STATED
MUNICIPAL BONDS PAR AMOUNT DATE RATE
--------------- ----------- ---------- ------
XXXX CNTY & MARIETTA GA W 250,000 11/01/2009 5.00
MUNICIPAL ASSISTANCE CORP 250,000 07/01/2007 6.25
INDIANAPOLIS IND LOC PUB 260,000 01/15/2007 2.50
METROPOLITAN TRANSN AUTH 275,000 11/15/2011 5.00
MUNICIPAL ASSISTANCE CORP 300,000 07/01/2006 4.00
WASHINGTON ST SER A 300,000 09/01/2004 7.00
OHIO ST BLDG AUTH RFDG-ST 300,000 04/01/2006 4.00
FAIRFAX CNTY VA 350,000 06/01/2006 4.50
MARYLAND ST RFDG-ST & LOC 350,000 02/01/2007 5.00
TEXAS WTR DEV BRD REV ST REVOLVINGFD-SR 350,000 07/15/2006 5.50
NEW YORK NY CITY TRANSITIONAL FIN AUTH R 400,000 02/01/2006 5.25
KANSAS ST DEV FIN AUTH REV 425,000 11/01/2005 5.00
TUCSON ARIZ STR & HWY USE 430,000 07/01/2006 4.50
PHILADELPHIA PA SER A 450,000 02/15/2008 5.00
INDIANA BD BK REV 455,000 02/01/2008 5.00
READING PA SCH DIST NTS-SER A 460,000 01/15/2006 0.00
DISTRICT COLUMBIA TAX 495,000 07/01/2008 5.00
COLORADO DEPT TRANSN REV 500,000 06/15/2011 5.00
GLOUCESTER CNTY N J RFDG 500,000 07/15/2006 4.00
NY ST DORM AUTH REVS 500,000 07/01/2007 5.00
NY ST DORM AUTH REVS 500,000 07/01/2011 5.00
ILLINOIS HEALTH FACS AUTH 500,000 08/15/2005 4.00
FLAGLER CNTY FLA SCH DIST 500,000 09/01/2006 6.00
MICHIGAN MUNBD AUTH REV DRINKING WATER 500,000 10/01/2005 5.00
DUNCANVILLE TEX INDPT SCH 500,000 02/15/2008 4.50
NEW YORK ST DORM AUTH REV 500,000 07/01/2007 5.37
KENTUCKY ST PPTY & BLDGS 500,000 02/01/2008 5.38
MASSACHUSETTS ST RFDG-SER 500,000 08/01/2011 5.00
COLORADO SPRINGS COLO UTILS REV 500,000 11/15/2005 5.00
PENNSYLVANIA HSG FIN AGY SINGLE 500,000 10/01/2004 5.10
MISSISSIPPI ST HWY REV RF 535,000 06/01/2007 5.25
INDIANA BD BK COMMON SCH FD 550,000 02/01/2008 5.00
MICHIGAN ST COMPREHENSIVE 550,000 05/15/2007 5.00
MECKLINBURG CNTY NC 550,000 04/01/2010 5.00
OHIO ST HIGHER ED CAP FACS-SER B 550,000 05/01/2005 5.25
OAK RIDGE TENN RFDG 555,000 04/01/2006 4.25
ALASKA XXX XXXX BANK AUTH 565,000 06/01/2006 5.00
MASSACHUSETTS ST WTR POLL 570,000 08/01/2006 5.00
PIERRE S D SCH DIST NO 32-2 580,000 08/01/2005 4.70
SCHAUMBURG ILL 585,000 01/01/2007 5.00
XXXXXXXXX XX 000,000 00/00/0000 0.00
XXXXXXXX XXXXXXXX REV XXXXXX XXXXXXXXXX 630,000 09/15/2007 5.00
XXXXXXXXXX CNTY MD RFDG-C 650,000 11/01/2011 5.25
CHESAPEAKE VA 650,000 05/01/2004 7.00
MASSACHUSETTS ST HEALTH & 675,000 05/15/2007 5.00
NEW YORK ST DORM AUTH REVS NYSARC 705,000 07/01/2006 4.55
VIRGINIA ST PUB SCH AUTH 750,000 08/01/2010 5.00
HIGHLAND N Y CENT SCH DIS 750,000 06/15/2007 3.00
WISCONSIN ST HEALTH & EDL 750,000 02/15/2007 5.00
ARAPAHOE CNTY COLO CAP IM 750,000 08/31/2005 7.00
GRAND RVR DAM RE 750,000 06/01/2007 5.88
MINNESOTA ST 800,000 10/01/2004 5.60
NEW JERSEY ST TPK AUTH TP 835,000 01/01/2006 5.50
NEW YORK ST DORM AUTH REVS NYSARC INC-SE 840,000 07/01/2007 4.60
SCHEDULE 1.1(b)
2 of 7
MASTERCARD INTERNATIONAL
PERMITTED INVESTMENTS
MUNICIPAL BONDS AND EQUITY INVESTMENTS @ 03/31/04
MASTERCARD INTERNATIONAL PORTFOLIO
MATURITY STATED
MUNICIPAL BONDS PAR AMOUNT DATE RATE
--------------- ----------- ---------- ------
INDIANA BD BK REV 870,000 02/01/2008 5.00
TUCSON ARIZ STR & HWY USE 870,000 07/01/2009 4.50
ILLINOIS ST FIRST SER 900,000 06/01/2006 5.75
SCOTTSDALE ARIZ RFDG 905,000 07/01/2005 3.00
CHESAPEAKE VA 950,000 05/01/2004 7.00
ILLINOIS DEV FIN AUTH REV 1,000,000 09/01/2008 5.00
WILSON PA SCH DIST SECOND 1,000,000 05/15/2008 5.00
FLORIDA ST DIV BD FIN DEPT GENL SVCS REV 1,000,000 07/01/2004 5.75
UNIVERSITY ARIZ UNIV REVS 1,000,000 06/01/2006 5.00
DETROIT MICH CAP IMPT-SER 1,000,000 04/01/2007 5.00
XXXXXX CNTY MD RFDG-CONS 1,000,000 08/15/2008 5.00
FLORIDA ST ED SYS UNIV SY 1,000,000 07/01/2008 5.00
XXXXX CNTY NEV WTR 1,000,000 07/01/2009 5.00
METROPOLITAN ATLANTA RAPI 1,000,000 07/01/2009 5.00
MICHIGAN MUN BD AUTH REV 1,000,000 10/01/2009 5.75
PUERTO RICO COMWLTH RFDG- 1,000,000 07/01/2012 6.50
PIKE TWP IND SCH BLDG CORP 1,000,000 01/15/2006 5.00
OKLAHOMA CNTY OKLA INDPT 1,000,000 02/01/2007 5.00
METROPOLITAN COUNCIL MINN 1,000,000 02/01/2007 5.00
ARIZONA ST 5.24 1/1/2007 1,000,000 01/01/2007 5.25
HOUSTON TEX RFDG-PUB 1,000,000 03/01/2008 5.00
METROPOLITAN PIER & EXPOS 1,000,000 06/15/2008 5.25
SCHAUMBURG ILL 1,000,000 01/01/2007 5.00
PENNSYLVANIA ST HIGHER ED 1,000,000 06/15/2007 5.00
MAINE ST TPK AUTH TPK REV 1,000,000 07/01/2004 6.00
WISCONSIN ST TRANSN REV SER B 1,000,000 07/01/2005 4.25
HOUSTON TEX ARPTS SYS REV SUB 1,000,000 07/01/2005 5.00
LOUISVILLE & JEFFERSON CNTY KY 1,000,000 07/01/2005 5.00
SEATTLE WASH MUN LT & PWR REV SER B 1,000,000 06/01/2005 4.75
HAWAII ST ARPTS SYS REV AMT-RFDG 1,000,000 07/01/2005 5.50
MEMPHIS-SHELBY CNTY TENN ARPT AUTH ARPT 1,000,000 03/01/2006 5.00
HAWAII ST RFDG-SER 1,000,000 04/01/2005 5.25
DELAWARE ST SER A 1,000,000 04/01/2005 5.25
PLANO TEX PLANO TEX 1,000,000 09/01/2007 4.00
CORPUS CHRISTI TEX INDPT SCH DIST RFDG 1,000,000 08/15/2005 6.00
SAINT LOUIS CNTY MO CROSSOVER 1,000,000 02/01/2006 5.00
XXXXX CNTY NEV SCH DIST 1,000,000 06/15/2005 6.00
XXXXXXXX CNTY N C CTFS PA 1,000,000 06/01/2007 4.00
UNIVERSITY ILL CTFS 1,000,000 08/15/2008 4.00
OHIO ST BLDG AUTH RFDG-ST 1,000,000 10/01/2005 5.00
FLORIDA ST 1,000,000 07/01/2005 5.80
PENNSYLVANIA ST TPK COMMN 1,000,000 12/01/2007 4.00
LOUISIANA ST OFFICE FACS 1,000,000 11/01/2007 4.00
ALLEGHENY CNTY PA REF-SER C-49 1,000,000 04/01/2006 5.00
METROPOLITAN PIER & EXPOSITION RFDG-MCCO 1,000,000 12/15/2005 6.00
GEORGIA STATE SER D 1,000,000 11/01/2005 5.80
TRINITY RIVER AUTH TEX RE 1,000,000 08/01/2007 5.00
WARREN MICH CONS SCH DIST 1,000,000 05/01/2008 4.50
NEW YORK ST DORM AUTH LEASE REV 1,000,000 01/15/2008 5.00
HOUSTON TEX RFDG-PUB IMPT 1,000,000 03/01/2012 5.00
NORTH XXXXXX XXXXXXXXXX C 1,000,000 02/15/2012 5.00
XXX CNTY FLA ARPT REV RFD 1,000,000 10/01/2007 5.00
MICHIGAN ST BLDG AUTH REV 1,000,000 10/15/2007 5.00
NY ST LOC GOVT ASSISTANCE 1,000,000 04/01/2007 5.50
SCHEDULE 1.1(b)
3 of 7
MASTERCARD INTERNATIONAL
PERMITTED INVESTMENTS
MUNICIPAL BONDS AND EQUITY INVESTMENTS @ 03/31/04
MASTERCARD INTERNATIONAL PORTFOLIO
MATURITY STATED
MUNICIPAL BONDS PAR AMOUNT DATE RATE
--------------- ----------- ---------- ------
BRIGHTON MICH AREA SCH DIST 1,000,000 05/01/2008 5.13
UNIVERSITY ILL CTFS PARTN 1,000,000 10/01/2013 5.00
BROADWAY OFFICE PPTYS WAS 1,000,000 12/01/2012 5.25
MICHIGAN ST BLDG AUTH REV 1,000,000 10/15/2012 5.25
MASSACHUSETTS ST WTR RES AUTH 1,000,000 08/01/2011 5.50
WISCONSIN SER B 1,000,000 05/01/2004 5.50
TEXAS MUN PWR AGY REV SUB 1,000,000 09/01/2005 4.00
OHIO ST HWY CAP IMPT-SER C 1,000,000 05/01/2005 4.75
DC REF SER B-3 1,000,000 06/01/2005 5.30
WEST VIRGINIA ST HOSP FIN 1,000,000 06/01/2006 4.50
MICHIGAN MUN BD AUTH REV 1,000,000 10/01/2005 5.00
MINNESOTA ST 1,000,000 08/01/2006 5.00
CAMDEN CNTY N J IMPT AUTH 1,000,000 09/01/2007 5.00
ST PETERSBURG FLA EXCISE 1,000,000 10/01/2007 4.75
NASSAU CNTY N Y INTERIM F 1,000,000 11/15/2007 5.00
MICHIGAN ST BLDG AUTH REV 1,000,000 10/15/2007 5.00
LOUISIANA ST SER A 1,000,000 11/15/2007 5.50
NEW JERSEY BLDG AUTH ST B 1,000,000 12/15/2011 5.25
MAINE ST GEN PURP 1,000,000 06/15/2007 4.00
NEW YORK NYC TRANSITIONAL 1,000,000 11/01/2007 5.00
COLORADO SPRINGS COLO UTI 1,000,000 11/15/2008 5.00
RICHMOND REF 1,000,000 07/15/2011 5.50
XXXX CNTY ILL SCH DIST NO 122 OAK LAWN C 1,000,000 12/01/2005 0.00
ROCKFORD ILL SCH DIST NO 205 1,000,000 02/01/2006 3.75
IOWA STUDENT LN LIQUIDITY CORP 1,000,000 12/01/2005 4.90
NORTH SLOPE BORO ALASKA 1,000,000 06/30/2006 0.00
WILL CNTY ILL SCH DIST NO 086 JOLIET 1,000,000 11/01/2005 0.00
PORTSMOUTH VA REDEV & HSG 1,000,000 12/01/2004 6.05
DISTRICT COLUMBIA RFDG-SER 1,000,000 06/01/2005 5.88
VIRGINIA ST PUB SCH AUTH 1,000,000 02/01/2006 4.00
ANOKA-HENNEPIN MINN INDPT 1,000,000 02/01/2008 5.00
SALT RIVER PROJ ARIZ AGRIC IMPT & PWR DI 1,000,000 01/01/2006 5.25
PENNSYLVANIA ST RFDG-SECO 1,000,000 07/01/2006 5.00
ARIZONA ST TRANS BRD HWY 1,000,000 07/01/2007 5.00
JACKSONVILLE FLA ELEC AUT 1,000,000 10/01/2006 5.50
ALBANY ORE WTR REV RFDG 1,005,000 08/01/2008 5.00
CLEVELAND OHIO CITY SCH D 1,020,000 06/01/2007 5.75
SEDGWICK CNTY KANS UNI SC 1,025,000 09/01/2007 3.50
UT BLDG LSE MAST 1,025,000 05/15/2006 5.00
WASHINGTON ST RFDG-SER R-93A 1,045,000 09/01/2005 5.63
PRIVATE COLLEGES & UNIVS AUTH GA 1,050,000 09/01/2006 5.00
XXX XX TECHNICAL COLLEGE DIST WIS 1,050,000 06/01/2006 4.00
OKLAHOMA ST CAP IMPT AUTH 1,060,000 06/01/2007 5.00
HARTFORD CNTY CONN MET DI 1,085,000 11/01/2006 4.00
GEORGIA ST SER D 1,100,000 08/01/2009 5.25
NEW MEXICO ST SERVERANCE TAX SER B 1,130,000 07/01/2004 5.00
NEW JERSEY ST TPK AUTH TP 1,135,000 01/01/2006 5.50
MARICOPA CNTY ARIZ HOSP R 1,135,000 07/01/2004 7.63
CONNECTICUT ST SER C 1,160,000 05/01/2011 5.00
OHIO ST HIGHER ED-SER B 1,190,000 11/01/2006 5.00
FORSYTH CNTY N C PUB IMPT 1,200,000 03/01/2006 5.00
VIRGINIA COMWLTH TRANSN 1,250,000 10/01/2006 5.50
FL ST DEPT ENVIR 5.25 1,265,000 07/01/2008 5.25
PERRY TWP IND MULTI SCH B 1,270,000 01/10/2008 4.00
SCHEDULE 1.1(b)
4 of 7
MASTERCARD INTERNATIONAL
PERMITTED INVESTMENTS
MUNICIPAL BONDS AND EQUITY INVESTMENTS @ 03/31/04
MASTERCARD INTERNATIONAL PORTFOLIO
MATURITY STATED
MUNICIPAL BONDS PAR AMOUNT DATE RATE
--------------- ----------- ---------- ------
MIAMI FLA RFDG 1,280,000 07/01/2011 5.00
ILLINOIS FIRST SER 1,295,000 04/01/2012 5.50
NEW JERSEY ST TRANSN TR F 1,300,000 12/15/2006 5.00
BEAUFORT CNTY 1,305,000 02/01/2007 5.00
NEW YORK ST DORM AUTH 1,305,000 07/01/2007 4.00
AVON IND CMTY SCH BLDG 1,320,000 01/10/2009 5.00
BELLEVUE WASH RFDG-SER A 1,340,000 01/01/2007 5.00
BEXAR CNTY TEX RFDG 1,350,000 06/15/2007 5.00
HOUSTON TEX AREA WTR CORP 1,365,000 03/01/2006 5.00
COLORADO WTR RES & PWR DEV AUTH WASTEW 1,375,000 09/01/2006 5.00
COLUMBIA S C CTFS PARTN T 1,375,000 06/01/2006 4.00
TACOMA WASH ELEC SYS REV 1,380,000 01/01/2008 5.50
XXXXXXXX SOUTHEATERN IND 1,395,000 01/15/2010 5.00
ILLINOIS ST RFDG-FIRST SE 1,400,000 08/01/2012 5.25
MASSACHUSETTS ST PORT AUT 1,400,000 07/01/2008 5.00
MILWAUKEE WIS SER F 1,405,000 11/15/2004 6.00
XXXX CNTY ILL SCH DIST135 CAP 1,410,000 12/01/2004 0.00
DURHAM CNTY N C ENTERPRIS 1,425,000 06/01/2008 5.00
VIRGINIA COMWLTH TRANSN BRD TRANSN REV N 1,455,000 05/15/2006 5.00
HOUSTON TEX RFDG-PUB 1,500,000 03/01/2008 5.00
PHOENIX ARIZ CIVIC IMPT C 1,500,000 07/01/2009 5.00
CONNECTICUT ST SER 1,500,000 06/15/2008 5.25
PUERTO RICO ELEC PWR AUTH 1,500,000 07/01/2011 5.25
MINNESOTA ST 1,500,000 06/01/2005 5.50
MARYLAND ST ST & LOC FACS LN- 2ND 1,500,000 08/01/2006 5.00
PLANO TEX INDPT SCH DIST 1,500,000 02/15/2007 5.00
MINNESOTA ST 1,500,000 10/01/2006 5.00
OREGON ST DEPT TRANSN HWY 1,500,000 11/15/2011 5.50
XXXXXXXX CNTY WASH SCH DI 1,500,000 12/01/2011 4.00
PUERTO RICO MUN FIN AGY S 1,500,000 08/01/2006 4.00
WISCONSIN ST TRANSN REV SER A 1,500,000 07/01/2005 6.00
HAWAII ST RFDG 1,500,000 02/01/2011 5.50
NORTH SLOPE-CABS 1,500,000 06/30/2008 0.00
DEL MAR TEX COLLEGE DIST REF 1,505,000 08/15/2006 4.00
UNIVERSITY N C SYS POOL REV 1,520,000 10/01/2006 5.50
NORTH CAROLINA ST PUB IMPT-SER A 1,525,000 09/01/2005 5.00
FREMONT CALIF CTFS PARTN 1,540,000 08/01/2005 1.70
XXXXX CNTY WASH PUB UTIL 1,540,000 01/01/2007 4.00
RHODE IS ST & PROVIDENCE 1,565,000 11/01/2010 5.25
UTAH ST RFDG-SER B 1,600,000 07/01/2006 4.50
NEW ORLEANS LA EXHIB HALL AUTH 1,625,000 07/15/2006 0.00
NEW YORK ST DORM AUTH REV 1,640,000 10/01/2007 5.00
MC XXXXX CNTY ILL CMNTY HIGH SCH 1,640,000 01/01/2008 0.00
XXXXX CNTY NEV SCH DIST 1,650,000 06/15/2006 5.00
SOUTHWEST XXXXX IND MULTI SCH BLDGCORP F 1,680,000 01/15/2006 4.00
UNIVERSITY CALIF REVS SER 1,700,000 05/15/2010 4.50
PENNSYLVANIA ST RFDG 1,700,000 11/15/2004 5.38
XXXXXXXXX REF-FA 1,725,000 07/01/2006 5.00
NJ TRN CAP GRANT 1,750,000 04/01/2004 5.13
PIKE TWP IND SCH BLDG CORP 1,750,000 01/15/2006 5.00
GEORGIA ST SER A 1,780,000 03/01/2005 5.80
KENTUCKY ST PPTY & BLDGS 1,790,000 08/01/2008 5.50
MICHIGAN MUN BD AUTH REV 1,795,000 05/01/2010 5.00
LA GRANGE GA WTR & SEW RE 1,800,000 01/01/2009 4.00
SCHEDULE 1.1(b)
5 of 7
MASTERCARD INTERNATIONAL
PERMITTED INVESTMENTS
MUNICIPAL BONDS AND EQUITY INVESTMENTS @ 03/31/04
MASTERCARD INTERNATIONAL PORTFOLIO
MATURITY STATED
MUNICIPAL BONDS PAR AMOUNT DATE RATE
--------------- ----------- ---------- ------
DEL MAR TEX COLLEGE DIST RFDG 1,850,000 08/15/2007 4.00
UTAH ST MUN PWR AGY ELEC 1,865,000 07/01/2007 5.00
ALASKA STUDENT LN 1,870,000 07/01/2010 4.00
CARTHAGE MO WTRWKS & WASTEWTR TREATMENT 1,895,000 07/01/2004 6.30
MINNESOTA ST RFDG 1,900,000 08/01/2008 5.00
HOUSTON TEX ARPT SYS REV 1,945,000 07/01/2004 6.75
PITTSBURGH PA SCH DIST 1,970,000 09/01/2006 4.25
CHEROKEE CNTY GA SCH SYS 1,975,000 06/01/2007 5.00
MICHIGAN ST UNDERGROUND STORAGE TANK F 2,000,000 05/01/2005 6.00
LOWER COLO RIV AUTH TEX REV JR 2,000,000 01/01/2006 5.50
NEW JERSEY ST CTFS PARTN 2,000,000 06/15/2007 5.25
DETROIT MICH CITY SCH DIS 2,000,000 05/01/2007 5.00
METROPOLITAN ATLANTA RAPID XXXX 2,000,000 07/01/2006 6.10
LOWER COLO RIV AUTH TEX R 2,000,000 05/15/2008 5.00
PLATTE RIV PWR AUTH COLO 2,000,000 06/01/2009 5.25
AUSTIN TX REF 2,000,000 09/01/2005 5.60
KANSAS CITY MO SCH DIST 2,000,000 02/01/2007 5.00
MECKLENBURG CNTY N C PUB 2,000,000 02/01/2009 4.00
HOUSTON TEX INDPT SCH DIST 2,000,000 07/15/2006 5.00
BIRDVILLE TEX INDPT SCH D 2,000,000 02/15/2009 4.38
IVY TECH ST COLLEGE IND 2,000,000 07/01/2007 5.00
HOUSTON TEX RFDG-PUB IMPT 2,000,000 03/01/2009 5.00
MICHIGAN ST COMPREHENSIVE 2,000,000 05/15/2007 5.25
PENNSYLVANIA ST INDL DEV 2,000,000 01/01/2008 5.80
SAN ANTONIO TEX ELEC & GAS 2,000,000 02/01/2006 5.00
PIMA CNTY ARIZ UNI SCH 2,000,000 07/01/2008 3.00
XXXXX COUNTY NEV SCH 2,000,000 06/15/2010 4.00
XXXXXXXXXX XXX RFDG & IMP 2,000,000 02/15/2012 4.75
WISCONSIN ST TRANSN REV S 2,000,000 07/01/2013 5.00
OKLAHOMA ST CAP IMPT AUTH 2,000,000 12/01/2011 5.00
KANSAS CITY MO SCH DIST B 2,000,000 02/01/2007 5.00
CALIFORNIA ST DEPT WTR 2,000,000 05/01/2007 5.25
MICHIGAN MUN BD AUTH REV 2,000,000 05/01/2008 5.00
GEORGIA ST SER C 2,000,000 09/01/2008 5.75
TEXAS ST RFDG-PUB FIN AUTH-SER A 2,000,000 04/01/2005 5.90
SAN ANTONIO TEX ELEC & GA 2,000,000 02/01/2007 0.00
GEORGIA ST 2,000,000 03/01/2007 6.30
XXXXXX CNTY TEX RFDG-PERM 2,000,000 10/01/2007 5.00
FAIRFAX CNTY VA SER B 2,015,000 12/01/2005 5.00
XXXXX CNTY NEV BD BK 2,020,000 07/01/2005 5.50
OHIO ST COMMON SCHS-CAP F 2,035,000 06/15/2007 5.00
SPRINGFIELD TENN HEALTH & EDL FACS BRD H 2,065,000 04/01/2006 8.25
MISSOURI ST RFDG-THIRD 2,100,000 08/01/2007 5.00
CINCINNATI OHIO WTR SYS REV 2,100,000 12/01/2005 5.00
WASHOE CO CAB IM 2,100,000 07/01/2006 0.00
CONNECTICUT ST CLEAN WTR 2,115,000 03/01/2007 5.75
CHICAGO ILL PROJ & RFDG-S 2,150,000 01/01/2008 5.50
WESTFIELD IND HIGH SCH BLDG CORP FIRST 2,170,000 07/15/2005 5.80
FAIRFAX CNTY VA RFDG & PU 2,195,000 06/01/2008 5.00
BIRMINGHAM ALA RFDG-SER A 2,195,000 04/01/2009 5.25
DU PAGE WTR COMMN ILL RFD 2,200,000 03/01/2010 5.25
PENNSYLVANIA ST TPK COMMN 2,230,000 07/15/2006 5.00
XXXXX CNTY FLA SCH DIST 2,250,000 08/01/2007 6.30
KENTUCKY STATE PROPERTY & 2,250,000 02/01/2011 5.38
SCHEDULE 1.1(b)
6 of 7
MASTERCARD INTERNATIONAL
PERMITTED INVESTMENTS
MUNICIPAL BONDS AND EQUITY INVESTMENTS @ 03/31/04
MASTERCARD INTERNATIONAL PORTFOLIO
MATURITY STATED
MUNICIPAL BONDS PAR AMOUNT DATE RATE
--------------- ----------- ---------- ------
XXXXXX CNTY MD RFDG-CONS 2,365,000 08/15/2010 5.00
MINNESOTA ST RFDG-VARIOUS PURP 2,370,000 06/01/2008 5.00
REGIONAL TRANSN AUTH ILL SER A 2,445,000 07/01/2006 5.00
GEORGIA ST SER C 2,500,000 07/01/2005 6.00
MARICOPA CNTY ARIZ SCH 2,500,000 07/01/2008 5.00
NEW YORK CITY TRANSITIONA 2,500,000 05/01/2006 5.00
MICHIGAN ST BLDG AUTH REV FACS PROG-S 2,500,000 10/15/2006 5.00
ORLANDO FLA UTILS COMMN WTR & ELEC REV R 2,500,000 10/01/2006 5.00
WASHINGTON ST MOTOR VEHIC 2,500,000 07/01/2008 5.00
RHODE IS ST ECONOMIC DEV 2,500,000 06/15/2006 0.00
XXXXXXXX XXXXXXXX CTFS 2,500,000 01/01/2007 5.00
WASHINGTON ST RFDG-SER 2,500,000 01/01/2009 4.00
AUSTIN TEX WTR & WASTEWATER SYS REV RF 2,500,000 11/15/2005 5.00
XXXXX CNTY NEV SCH DIST SER A 2,500,000 06/15/2005 5.60
GEORGIA ST SER B 2,510,000 07/01/2005 5.00
VIRGINIA COMWLTH TRANSN BRD TRANSN REV U 2,535,000 05/15/2006 5.00
TEMPE ARIZ UN HIGH SCH DI 2,550,000 07/01/2007 2.00
OKLAHOMA ST CAP IMPT AUTH 2,560,000 06/01/2008 5.00
COLORADO DEPT TRANS REV 2,625,000 06/15/2010 6.00
FLORIDA ST DEPT ENVIRON 2,650,000 07/01/2009 5.00
SOUTH CAROLINA ST ST SCH FACS-SER A 2,670,000 01/01/2010 5.00
MASSACHUSETTS ST 2,700,000 08/01/2009 5.75
OHIO ST BLDG AUTH RFDG-ST FACS-DAS 2,775,000 10/01/2004 5.70
NEW JERSEY ECONOMIC DEV AUTH REV 2,790,000 09/15/2006 5.00
COLUMBUS OHIO REF-SER B 2,795,000 05/15/2007 5.25
MOBILE ALA RFDG-WTS 2,925,000 02/15/2006 5.00
MINNESOTA ST 3,000,000 11/01/2004 5.25
METROPOLITAN COUNCIL MINN 3,000,000 03/01/2010 5.00
DENVER COLO CITY & CNTY B 3,000,000 09/01/2007 5.00
LAS VEGAS-XXXXX CNTY NEV LIBR DIST RFDG 3,000,000 02/01/2006 4.00
NORTH CAROLINA ST HWY-SER A 3,000,000 05/01/2007 4.60
CONNECTICUT ST SPL TAX OBLIG REV RFDG-TR 3,000,000 10/01/2005 5.00
KANSAS ST DEPT TRANSN HWY REV RFDG 3,000,000 09/01/2006 5.50
PENNSYLVANIA ST SECOND SER 3,000,000 09/15/2005 5.00
MET GOVT NASHVILLE & DAVI 3,000,000 10/15/2006 5.25
UTAH ST RFDG - SER B 3,000,000 07/01/2009 4.50
MICHIGAN ST BLDG AUTH REV 3,000,000 10/01/2004 6.00
MILWAUKEE WIS MET SEW DIST SEW SYS-SE 3,000,000 10/01/2006 5.00
PENNSYLVANIA ST 3,300,000 02/01/2011 5.25
ALBUQUERQUE N M MUN SCH DIST 3,435,000 08/01/2006 5.00
DADE CNTY FLA SCH DIST RM 3,475,000 08/01/2008 5.00
HILLSBOROUGH CNTY FLA UTIL 3,500,000 08/01/2006 5.00
MOBILE CNTY ALA RFDG 3,980,000 02/01/2010 5.00
AUSTIN TEX WTR & WASTEWTR 4,300,000 05/15/2007 6.00
NORTH CAROLINA EASTN MUN 4,700,000 01/01/2009 6.13
TEXAS ST PUB FIN AUTH REV 5,000,000 06/15/2008 5.00
SOUTH CAROLINA ST CAP 5,300,000 01/01/2009 4.00
-----------
TOTAL 468,935,000
===========
SCHEDULE 1.1(b)
7 of 7
MASTERCARD INTERNATIONAL
PERMITTED INVESTMENTS
MUNICIPAL BONDS AND EQUITY INVESTMENTS @ 03/31/04
INVESTMENT IN AFFILIATES
NAME OF COMPANY INVESTMENT TYPE AMOUNT INVESTED % OWNED
--------------- ----------------- --------------- -------
(000'S)
MONDEX ASIA PTE LTD. CONSOLIDATED ** $ 12,440 51.00%
KOREA CYBER PAYMENT, INC. COST INVESTMENT 90 2.30%
REDECARD S.A. COST INVESTMENT 12,856 4.17%
XIGN CORPORATION COST INVESTMENT 3,970 10.00%
EMVCO, LLC EQUITY INVESTMENT 700 50.00%
ADVENT/DIGITAL MEDIA & Communications III-C LP Equity Investment 5,800 2.90%
Mondex USA Services, LLC Equity Investment 750 15.00%
JNS Corporation Kabushiki Kaisha Equity Investment 2,110 17.25%
MPact Technology Services (f/k/a Mascon-MC GTS
Holdings Private Ltd.) Equity Investment 49 49.00%
Secure Electronic Transactions, LLC Equity Investment 4,640 50.00%
---------
$ 43,405
=========
SCHEDULE 1.2
COMMITMENTS
LENDER COMMITMENT
Citibank, N.A. $ 215,000,000
JPMorgan Chase Bank $ 200,000,000
HSBC Bank USA $ 200,000,000
Lloyds TSB Bank plc $ 200,000,000
Royal Bank of Scotland plc $ 200,000,000
Xxxxxx Xxxxxxx Financing, Inc. $ 150,000,000
Commonwealth Bank of Australia, New York Branch $ 150,000,000
Bayerische Hypo- Und Vereinsbank AG $ 125,000,000
Sumitomo Mitsui Banking Corporation $ 125,000,000
Deutsche Bank Luxembourg S.A. $ 75,000,000
Fifth Third Bank $ 50,000,000
ING Bank N.V. $ 50,000,000
PNC Bank, National Association $ 50,000,000
U.S. Bank, N.A. $ 50,000,000
Westpac Banking Corporation $ 50,000,000
Xxxxx Fargo Bank, National Association $ 35,000,000
Royal Bank of Canada $ 25,000,000
TOTAL $1,950,000,000
SCHEDULE 3.1
MASTERCARD INCORPORATED
INTEREST RATE PROTECTION
INTEREST RATE SWAP @ 3/31/04
NONE
CURRENCY PROTECTION
UNHEDGED POSITIONS @ 3/31/04
NONE
SCHEDULE 3.6
MATERIAL LITIGATION
NONE
SCHEDULE 3.15
MASTERCARD INCORPORATED AND SUBSIDIARIES
NAME PERCENT OWNED**
---- -------------
MasterCard Incorporated NA
Cirrus Systems, LLC 100%
MasterCard Europe Sprl 100%
European Payment System Services S.A. 100%
Euro Travellers Cheque International S.A. 100%
Europay U.S. Inc 100%
Eurocard Limited 100%
Eurocard U.S.A., Inc. 100%
MasterCard/Europay U.K. Limited 100%
Maestro International Incorporated 100%
Maestro Asia/Pacific Ltd. 100%
Maestro Canada, Inc. 100%
Maestro Latin America, Inc. 100%
Maestro Middle East/Africa, Inc. 100%
Maestro U.S.A., Inc. 100%
MasterCard International Incorporated 100%
MasterCard (India) Private Limited 100%
MasterCard Advisors, LLC 100%
MasterCard A/P Payment Services Inc. 100%
MasterCard Asia/Pacific Pte Ltd. 100%
MasterCard Australia Ltd. 100%
MasterCard Brasil S/C Ltda. 100%
MasterCard Brasil Solucoes de Pagamento Ltda. 100%
MasterCard Canada, Inc. 100%
MasterCard Cardholder Solutions, Inc. 100%
MasterCard Chip Standards Holdings, Inc. 100%
MasterCard Colombia, Inc. 100%
MasterCard EMEA, Inc. 100%
MasterCard Financing Solutions LLC 100%
MasterCard Foreign Sales Corporation 100%
MasterCard Global Holding LLC 100%
MasterCard Global Key Centre Limited 100%
MasterCard Global Promotions & Sponsorships Annex, Inc. 100%
MasterCard Holding Incorporated 100%
MasterCard Hong Kong Ltd. 100%
MasterCard International Far East Ltd. 100%
MasterCard International Global Maatschap 100%
MasterCard International Holding LLC 100%
MasterCard International Japan Inc. 100%
MasterCard International Korea Ltd. 100%
MasterCard International Philippines, Inc. 100%
MasterCard International Services, Inc. 100%
MasterCard International, LLC 100%
MasterCard Korea Ltd. 100%
MasterCard Mercosur, Inc. 100%
MasterCard Middle East, Inc 100%
MasterCard Originator SPC, Inc. 100%
MasterCard Peru, Inc. 100%
MasterCard Services SPC, Inc. 100%
MasterCard Singapore Ltd. 100%
MasterCard Southern Africa, Inc. 100%
MasterCard Taiwan Ltd. 100%
MasterCard Travelers Cheque, Inc. 100%
MasterCard UK, Inc. 100%
MasterCard UK Inc. Pension Trustees Limited 100%
MasterCard UK Management Services Limited 100%
MasterCard Uruguay Limitada 100%
MasterCard Venezuela, Inc. 100%
MC Indonesia, Inc. 100%
Mondex International Limited 100%
MAOSCO, Ltd. 100%
Mondex International Americas, Inc. 100%
Mondex Asia Pte. Ltd. 51%
Mondex China Pte. Ltd. 51%
Mondex India Pte. Ltd. 51%
Mondex International (Australia) Pty Ltd. 100%
MXI Management Limited 100%
Bright Skies LLC 100%
Clear Skies LLC 100%
CSI Holdings Inc. 100%
EMVCo, LLC 50%
GVP Risk Management Insurance Incorporated 100%
GVP Holding Incorporated 100%
JNS Corporation Yugen Kaisha 100%
MasterCard GTS Holdings Private Limited (Mauritius) 49%
Mastermanager LLC 100%
MasterCard Beneficiary Trust 100%
MTS Holdings, Inc. 100%
Purchase Street Research, LLC 100%
SET Secure Electronic Transaction LLC 50%
Tower Group Holding Corp. 100%
The Tower Group, Inc. 100%
Towergroup Europe Limited 100%
Transactional Data Solutions LLC 100%
** Percentages reflect direct ownership and indirect ownership through
intermediate companies.
SCHEDULE 6.2(f)
LIENS
COMPANY STATE UCC# HOLDER COLLATERAL DESCRIPTION
--------------------------------------------------------------------------------------------------------------
MasterCard DE File No. 10827126 IBM Credit Computer, information processing
International Corporation and other peripheral equipment and
Incorporated goods
--------------------------------------------------------------------------------------------------------------
MasterCard DE File No. 20749550 IBM Credit Computer, information processing
International Corporation and other peripheral equipment and
Incorporated goods
--------------------------------------------------------------------------------------------------------------
MasterCard DE File No. 22016537 IBM Credit Computer equipment and software
International Corporation
Incorporated
--------------------------------------------------------------------------------------------------------------
MasterCard DE File No. 22985814 Ameritech Credit Controllers, modems, computers and
International Corporation other data transmission devices,
Incorporated cable and wiring
--------------------------------------------------------------------------------------------------------------
MasterCard DE File No. 00000000 Bank One, NA Computer equipment
International
Incorporated
--------------------------------------------------------------------------------------------------------------
MasterCard DE File No. 31941866 IBM Credit LLC Computer equipment and software
International,
LLC
--------------------------------------------------------------------------------------------------------------
MasterCard DE File No. 33247841 Ameritech Credit Right, title and interest in and to
International Corporation the Master Software License and
Incorporated Maintenance Agreement for 3 year
central site maintenance
--------------------------------------------------------------------------------------------------------------
MasterCard MO File Nos. MCI O'Fallon Winghaven Facility in O'Fallon, MO
International 3071447 1999 Trust
Incorporated 01387
SCHEDULE 6.10
DIVIDEND BLOCKS
MasterCard International Incorporated is subject to minimum net worth covenants
pursuant to the following agreements, which are filed as exhibits to the
Borrower's filings with the U.S. Securities and Exchange Commission identified
in parentheses below:
- Form of MasterCard International Incorporated Note Purchase
Agreement, dated as of June 30, 1998, regarding $80,000,000 of 6.67%
Subordinated Notes due June 30, 2008 (see Exhibit 4 to Pre-Effective
Amendment No. 2 to the Borrower's Registration Statement on Form S-4
filed November 9, 2001 (No. 333-67544)).
- Guarantee, dated as of August 31, 1999, made by MasterCard
International Incorporated in favor of State Street Bank and Trust
Company of Missouri, N.A., as Indenture Trustee for the Noteholders
under the Indenture, dated as of August 31, 1999 between MasterCard
International O'Fallon 1999 Trust and the Indenture Trustee (see
Exhibit 10.4 to Pre-Effective Amendment No. 2 to the Borrower's
Registration Statement on Form S-4 filed November 9, 2001 (No.
333-67544)).
SCHEDULE 10.7(b)
1 of 2
MASTERCARD INCORPORATED
FIDUCIARY ACCOUNTS WITH BANKS PARTICIPATING IN THIS SYNDICATION
@ 03/31/2004
ACCOUNT NUMBER CURRENCY
-------------- --------
XX XXXXXX CHASE BANK
00010019311 AUD
00010019303 AUD
00010019338 AUD
00010019477 AUD
0731753500 CAD
20397201 EUR
11139342 GBP
11139334 GBP
6839254304 HKD
0000000000 IDR
0110442612 JPY
6870791925 MYR
3212700557 PHP
0111867175 SGD
6580116538 THB
014 053 007 USD
323 120 431 USD
323 120 342 USD
323 120 407 USD
323 120 369 USD
323 120 393 USD
323 120 377 USD
323 120 458 USD
014056830 USD
014056865 USD
114013063 USD
400314738 USD
22105909 ZAR
CITIBANK
0000000 BSD
HSBC
000123285 USD
000122742 USD
40051537549940 ATS
40051537549959 BEF
40051537549967 CHF
40051537549975 CYP
40051537549983 DEM
40051537549991 DKK
40051537550001 ESP
SCHEDULE 10.7(b)
2 of 2
MASTERCARD INCORPORATED
FIDUCIARY ACCOUNTS WITH BANKS PARTICIPATING IN THIS SYNDICATION
@ 03/31/2004
ACCOUNT NUMBER CURRENCY
-------------- --------
HSBC (CONT.)
40051537550028 FIM
40051537550036 FRF
40051537550602 GBP
40051537550610 GRD
40051537550629 IEP
40051537550637 ISK
40051537550645 ITL
40051537550653 MTL
40051537550661 NLG
40051537550688 NOK
40051537550696 PTE
40051537550704 SEK
40051537550712 USD
40051537560119 EUR
40051537561319 EUR
40051537561630 JPY
40051537562798 GBP
40051557117303 ISK
40051557117354 ZAR
40051557117362 CAD
40051557118157 NZD
40051537818047 USD
EXHIBIT A
[FORM OF REVOLVING CREDIT NOTE]
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS AND
PROVISIONS OF THE CREDIT AGREEMENT REFERRED TO BELOW. TRANSFERS OF THIS NOTE
(OTHER THAN PLEDGES OR ASSIGNMENTS HEREOF TO ANY FEDERAL RESERVE BANK) MUST BE
RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE
TERMS OF SUCH CREDIT AGREEMENT.
REVOLVING CREDIT NOTE
$____________ New York, New York
June 18, 2004
FOR VALUE RECEIVED, the undersigned, MASTERCARD INCORPORATED, a
Delaware corporation (the "Borrower"), hereby unconditionally promises to pay to
the order of _________ (the "Lender") at the office of Citibank, N.A., located
at 0 Xxxxx Xxx, Xxxxx 000, Xxx Xxxxxx, Xxxxxxxx, 00000, in lawful money of the
United States and in immediately available funds, on the Revolving Credit
Termination Date the principal amount of _________ DOLLARS ($__________), or, if
less, the aggregate unpaid principal amount of all Revolving Credit Loans made
by the Lender to the Borrower pursuant to Section 2.1 of the Credit Agreement
(as defined below). The Borrower further agrees to pay interest in like money at
such office on the unpaid principal amount of Revolving Credit Loans made by the
Lender from time to time outstanding at the rates and on the dates specified in
the Credit Agreement.
The holder of this Note is authorized to record on Schedule A
annexed hereto and made a part hereof or on a continuation thereof which shall
be attached hereto and made a part hereof the date, Type and amount of each
Revolving Credit Loan made by the Lender and the date and amount of each payment
or prepayment of principal thereof, each conversion of all or a portion thereof
to another Type, each continuation of all or a portion thereof as the same Type
and, in the case of LIBOR Loans, the length of each Interest Period and the
London Interbank Offered Rate with respect thereto. Each such recordation shall,
to the extent permitted by applicable law, constitute prima facie evidence of
the accuracy of the information so recorded, provided that the failure to make
any such recordation shall not affect the obligation of the Borrower to repay
(with applicable interest) Revolving Credit Loans made by the Lender pursuant to
the Credit Agreement.
This Note (a) is one of the Revolving Credit Notes referred to in
the Credit Agreement, dated as of the date hereof (as amended, supplemented or
otherwise modified from time to time, the "Credit Agreement"), among the
Borrower, MasterCard International Incorporated, a Delaware corporation, the
Lender, the other banks and financial institutions from time to time parties
thereto, JPMorgan Chase Bank, as Backup Agent and Citibank, N.A., as
Administrative Agent, (b) is subject to the provisions of the Credit Agreement
and (c) is subject to optional and mandatory prepayment in whole or in part as
provided in the Credit Agreement.
2
Upon the occurrence of any one or more of the Events of Default, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable, all as provided in the Credit Agreement.
All parties now and hereafter liable with respect to this Note,
whether maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.
Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.
MASTERCARD INCORPORATED
By: _________________________________
Name: ___________________________
Title: __________________________
SCHEDULE A
TO REVOLVING CREDIT NOTE
LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF LIBOR LOANS
Amount
Converted
to or Interest Period and Amount of
Continued London Interbank Amount of LIBOR Loans Unpaid Principal
Amount of as LIBOR Offered Rate with Principal of LIBOR Converted to Balance of LIBOR Notation Made
Date LIBOR Loans Loans Respect Thereto Loans Repaid ABR Loans Loans By
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
2
LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF LIBOR LOANS
Amount
Converted
to or Interest Period and Amount of
Continued London Interbank Amount of LIBOR Loans Unpaid Principal
Amount of as LIBOR Offered Rate with Principal of LIBOR Converted to Balance of LIBOR Notation Made
Date LIBOR Loans Loans Respect Thereto Loans Repaid ABR Loans Loans By
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
EXHIBIT B
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS AND
PROVISIONS OF THE CREDIT AGREEMENT REFERRED TO BELOW. TRANSFERS OF THIS NOTE
(OTHER THAN PLEDGES OR ASSIGNMENTS HEREOF TO ANY FEDERAL RESERVE BANK) MUST BE
RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE
TERMS OF SUCH CREDIT AGREEMENT.
TERM LOAN NOTE
$___________ New York, New York
____________, 200__
FOR VALUE RECEIVED, the undersigned, MASTERCARD INCORPORATED, a
Delaware corporation (the "Borrower"), hereby unconditionally promises to pay to
the order of ________________ (the "Lender") at the office of Citibank, N.A.,
located at 0 Xxxxx Xxx, Xxxxx 000, Xxx Xxxxxx, Xxxxxxxx, 00000, in lawful money
of the United States of America and in immediately available funds, on the
Termination Date the principal amount of _______________ DOLLARS ($________),
or, if less, the aggregate unpaid principal amount of the Lender's interest in
the Term Loan made to the Borrower pursuant to Section 2.3 of the Credit
Agreement (as defined below). The Borrower further agrees to pay interest in
like money at such office on the unpaid principal amount of the Term Loan made
by the Lender from time to time outstanding at the rates and on the dates
specified in the Credit Agreement.
The holder of this Note is authorized to record on Schedule A
annexed hereto and made a part hereof or on a continuation thereof which shall
be attached hereto and made a part hereof the date, Type and amount of the Term
Loan made by the Lender and the date and amount of each payment or prepayment of
principal thereof, each conversion of all or a portion thereof, each
continuation thereof each conversion of all or a portion thereof to another Type
and, in the case of LIBOR Loans, the length of each Interest Period and the
London Interbank Offered Rate with respect thereto. Each such recordation shall,
to the extent permitted by applicable law, constitute prima facie evidence of
the accuracy of the information so recorded, provided that the failure to make
any such recordation shall not affect the obligation of the Borrower to repay
(with applicable interest) the Term Loan made by the Lender pursuant to the
Credit Agreement.
This Note (a) is one of the Term Loan Notes referred to in the
Credit Agreement, dated as of June 18, 2004 (as amended, supplemented or
otherwise modified from time to time, the "Credit Agreement"), among the
Borrower, MasterCard International Incorporated, a Delaware corporation, the
Lender, the other banks and financial institutions from time to time parties
thereto, JPMorgan Chase Bank, as Backup Agent and Citibank, N.A., as
Administrative Agent, (b) is subject to the provisions of the Credit Agreement
and (c) is subject to optional and mandatory prepayment in whole or in part as
provided in the Credit Agreement.
Upon the occurrence of any one or more of the Events of Default, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable, all as provided in the Credit Agreement.
2
All parties now and hereafter liable with respect to this Note,
whether maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment demand, protest and all other notices of any kind.
Unless otherwise defined herein terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
MASTERCARD INCORPORATED
By: __________________________________
Name: ____________________________
Title: ___________________________
3
SCHEDULE A
TO TERM LOAN NOTE
CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF TERM LOAN
Interest Period
and London Unpaid
Amount Interbank Offered Amount of Amount of the Principal
Amount of the Continued as Rate with Respect Principal of Term Term Loan Balance of the Notation
Date Term Loan Term Loan Thereto Loan Repaid Converted Term Loan Made By
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
4
CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF TERM LOAN
Interest Period
and London Unpaid
Amount Interbank Offered Amount of Amount of the Principal
Amount of the Continued as Rate with Respect Principal of Term Term Loan Balance of the Notation
Date Term Loan Term Loan Thereto Loan Repaid Converted Term Loan Made By
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
EXHIBIT C
[FORM OF SWING LINE NOTE]
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS AND
PROVISIONS OF THE CREDIT AGREEMENT REFERRED TO BELOW. TRANSFERS OF THIS NOTE
(OTHER THAN PLEDGES OR ASSIGNMENTS HEREOF TO ANY FEDERAL RESERVE BANK) MUST BE
RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE
TERMS OF SUCH CREDIT AGREEMENT.
SWING LINE NOTE
$_____________ New York, New York
June 18, 2004
FOR VALUE RECEIVED, the undersigned, MASTERCARD INCORPORATED, a
Delaware corporation (the "Borrower"), hereby unconditionally promises to pay to
the order of CITIBANK, N.A. (the "Swing Line Lender"), at its office located at
0 Xxxxx Xxx, Xxxxx 000, Xxx Xxxxxx, Xxxxxxxx, 00000, in lawful money of the
United States and in immediately available funds, on the Revolving Credit
Termination Date, the principal amount of _________ DOLLARS ($____) or, if less,
the aggregate unpaid principal amount of the Swing Line Loans made by the Swing
Line Lender to the Borrower pursuant to Section 2.20 of the Credit Agreement (as
defined below). The Borrower further agrees to pay interest in like money at
said office on the unpaid principal amount of Swing Line Loans from time to time
outstanding at the rates and on the dates specified in the Credit Agreement.
The Swing Line Lender is authorized to record the date and the
amount of each Swing Line Loan made by the Swing Line Lender to the Borrower
pursuant to Section 2.20 of the Credit Agreement and the date and amount of each
payment or prepayment of principal thereof on Schedule A annexed hereto and made
a part hereof and any such recordation shall, to the extent permitted by
applicable law, constitute prima facie evidence of the accuracy of the
information so recorded, provided that any failure by the Swing Line Lender to
make such recordation shall not affect the obligation of the Borrower to repay
(with applicable interest) the Swing Line Loans made by the Swing Line Lender
pursuant to the Credit Agreement.
This Note (a) is the Swing Line Note referred to in the Credit
Agreement, dated as of the date hereof (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among the Borrower,
MasterCard International Incorporated, a Delaware corporation, the Swing Line
Lender, the other banks and financial institutions from time to time parties
thereto, JPMorgan Chase Bank, as Backup Agent and Citibank, N.A., as
Administrative Agent, (b) is subject to the provisions of the Credit Agreement
and (c) is subject to optional and mandatory prepayment in whole or in part as
provided in the Credit Agreement.
Upon the occurrence of any one or more of the Events of Default, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable, all as provided in the Credit Agreement.
2
All parties now and hereafter liable with respect to this Note,
whether maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.
Unless otherwise defined herein terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
MASTERCARD INCORPORATED
By: _________________________________
Name: ___________________________
Title: __________________________
3
SCHEDULE A TO
SWING LINE NOTE
LOANS AND REPAYMENTS
Unpaid
Amount of Principal
Amount of Swing Line Balance of
Swing Line Loans Swing Line Notation Made
Date Loans Made Repaid Loans By
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
==============================================================================================
EXHIBIT D-1
FORM OF
CAF ADVANCE REQUEST
_____________, 200__
Citibank, N.A., as Administrative Agent
0 Xxxxx Xxx, Xxxxx 000
Xxx Xxxxxx, Xxxxxxxx 00000
JPMorgan Chase Bank, as Backup Agent
[ ]
Ladies and Gentlemen:
Reference is made to the Credit Agreement, dated as of June 18,
2004, among the MasterCard Incorporated, a Delaware corporation, MasterCard
International Incorporated, a Delaware corporation, the Lenders named therein,
JPMorgan Chase Bank, as Backup Agent, and Citibank, N.A., as Administrative
Agent (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement"). Terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.
This is a [Fixed Rate] [LIBOR] CAF Advance Request pursuant to
Section 2.11 of the Credit Agreement requesting offers for the following CAF
Advances:
[NOTE: Pursuant to the Credit Agreement, a CAF Advance Request shall
be transmitted in writing, by facsimile transmission, or by
telephone, immediately confirmed by facsimile transmission. In any
case, a CAF Advance Request shall contain the information specified
in the second paragraph of this form.]
Loan 1 Loan 2 Loan 3
-------------------------------------------------------------------------------
Aggregate Principal Amount $ $ $
-------------------------------------------------------------------------------
Borrowing Date
-------------------------------------------------------------------------------
CAF Advance Maturity Date
-------------------------------------------------------------------------------
CAF Advance Interest Payment Dates
-------------------------------------------------------------------------------
2
Very truly yours,
MASTERCARD INCORPORATED
By: _________________________________
Name:
Title:
EXHIBIT D-2
FORM OF
CAF ADVANCE OFFER
_____, 200__
Citibank, N.A., as Administrative Agent
0 Xxxxx Xxx, Xxxxx 000
Xxx Xxxxxx, Xxxxxxxx 00000
JPMorgan Chase Bank, as Backup Agent
[ ]
Dear Sirs:
Reference is made to the Credit Agreement, dated as of June 18,
2004, among MasterCard Incorporated, a Delaware corporation (the "Borrower"),
MasterCard International Incorporated, a Delaware corporation, the Lenders named
therein, JPMorgan Chase Bank, as Backup Agent for such Lenders, and Citibank,
N.A., as Administrative Agent for such Lenders (as amended, supplemented or
otherwise modified from time to time, the "Credit Agreement"). Terms defined in
the Credit Agreement are used herein as therein defined.
In accordance with Sections 2.10 and 2.11 of the Credit Agreement,
the undersigned Lender offers to make CAF Advances thereunder to the Borrower in
the following amounts with the following maturity dates:
Borrowing Date: ________, 200__ Aggregate Maximum Amount: $_________
Maturity Date 1: Maximum Amount: $_______
____________, 200__ $_______ offered at ________*
$_______ offered at ________*
Maturity Date 2: Maximum Amount: $_______
____________, 200__ $_______ offered at ________*
$_______ offered at ________*
Maturity Date 3: Maximum Amount: $_______
____________, 200__ $_______ offered at ________*
$_______ offered at ________*
[NOTE: Insert the interest rate offered for the specified CAF Advance where
indicated by an asterisk (*). In the case of LIBOR CAF Advances, insert a margin
bid. In the case of Fixed Rate CAF Advances, insert a fixed rate bid.]
2
Very truly yours,
[NAME OF LENDER]
By: _____________________________________
Name:
Title:
Telephone No.:
Telecopy No.:
EXHIBIT D-3
FORM OF
CAF ADVANCE CONFIRMATION
________ __, 200__
Citibank, N.A.,
as Administrative Agent
0 Xxxxx Xxx, Xxxxx 000
Xxx Xxxxxx, Xxxxxxxx 00000
JPMorgan Chase Bank,
as Backup Agent
[ ]
Ladies and Gentlemen:
Reference is made to the Credit Agreement, dated as of June 18,
2004, among the undersigned, MasterCard International Incorporated, the Lenders
named therein, JPMorgan Chase Bank, as Backup Agent, and Citibank, N.A., as
Administrative Agent (as amended, supplemented or otherwise modified from time
to time, the "Credit Agreement"). Terms defined in the Credit Agreement and used
herein shall have the meanings given to them in the Credit Agreement.
In accordance with Section 2.11 of the Credit Agreement, the
undersigned accepts and confirms the offers by the CAF Advance Lender(s) to make
CAF Advances to the undersigned on _____, 200__ under Section 2.11 in the
(respective) amount(s) set forth on the attached list of CAF Advances offered.
Very truly yours,
MASTERCARD INCORPORATED
By: _____________________________________
Name:
Title:
[Borrower to attach CAF Advance offer list prepared by the Administrative Agent
with accepted amount entered by the Borrower to the right of each CAF Advance
Offer].
Schedule to CAF
Advance Assignment
EXHIBIT D-4
FORM OF
CAF ADVANCE ASSIGNMENT
CAF Advance ASSIGNMENT, dated as of the date set forth in Item 1 of
Schedule I hereto, among the Assignor Lender set forth in Item 2 of Schedule I
hereto (the "Assignor Lender"), the CAF Advance Assignee set forth in Item 3 of
Schedule I hereto (the "CAF Advance Assignee"), and CITIBANK, N.A., as
Administrative Agent for the Lenders under the Credit Agreement described below
(in such capacity, the "Administrative Agent").
W I T N E S S E T H :
WHEREAS, this CAF Advance Assignment is being executed and delivered
in accordance with subsection 10.6(c) of the Credit Agreement, dated as of June
18, 2004, among MasterCard Incorporated, a Delaware corporation (the
"Borrower"), MasterCard International Incorporated, a Delaware corporation, the
Assignor Lender and the other Lenders parties thereto, JPMorgan Chase Bank, as
Backup Agent for the Lenders, and the Administrative Agent (as from time to time
amended, supplemented or otherwise modified in accordance with the terms
thereof, the "Credit Agreement"; unless otherwise defined herein, terms defined
therein being used herein as therein defined); and
WHEREAS, the Assignor Lender has advanced to the Borrower the CAF
Advance described in Item 5 of Schedule I hereto (the "CAF Advance"), and the
Assignor Lender is assigning the CAF Advance to the CAF Advance Assignee
pursuant to this CAF Advance Assignment;
NOW, THEREFORE, the parties hereto hereby agree as follows:
1. The Assignor Lender acknowledges receipt from the CAF Advance
Assignee of an amount equal to the purchase price, as agreed between the
Assignor Lender and the CAF Advance Assignee, of the outstanding principal
amount of, and accrued interest on, the CAF Advance. The Assignor Lender hereby
irrevocably sells, assigns and transfers to the CAF Advance Assignee without
recourse, representation or warranty, except as set forth in subsection 4(i)
hereof and the CAF Advance Assignee hereby irrevocably purchases, takes and
acquires from the Assignor Lender, the CAF Advance, together with all
instruments and documents pertaining thereto.
2. (a) From and after the date set forth in Item 4 of Schedule I
hereto (the "Transfer Effective Date"), principal and interest that would
otherwise be payable to or for the account of the Assignor Lender pursuant to
the CAF Advance shall, instead, be payable to or for the account of the CAF
Advance Assignee, whether such amounts have accrued prior to the Transfer
Effective Date or accrue subsequent to the Transfer Effective Date.
(b) If Item 6 of Schedule I hereto contains payment instructions for
the CAF Advance Assignee and if the CAF Advance Assignee delivers a copy of this
CAF Advance Assignment to the Administrative Agent in accordance with subsection
10.6(f) of the Credit Agreement at least 5 Business Days prior to the due date
of any payment to the CAF Advance
2
Assignee, the CAF Advance Assignee hereby instructs the Administrative Agent to
pay all such amounts payable to it pursuant to the provision of subparagraph (a)
of this paragraph 2, in accordance with such payment instructions. If Item 6 of
Schedule I hereto does not contain payment instructions for the CAF Advance
Assignee (or a copy hereof is not delivered to the Administrative Agent as
aforesaid), the Assignor Lender and the CAF Advance Assignee agree that,
notwithstanding the provisions of subparagraph (a) of this paragraph 2, the
Assignor Lender is hereby appointed by the CAF Advance Assignee as its
collection agent to receive from the Administrative Agent, for and on behalf of
and for the account of the CAF Advance Assignee, all amounts payable to or for
the account of the CAF Advance Assignee under the CAF Advance; the Assignor
Lender will immediately pay over to the CAF Advance Assignee any such amounts
received by it, in like funds as received.
3. Each of the parties to this CAF Advance Assignment agrees that at
any time and from time to time upon the written request of any other party, it
will execute and deliver such further documents and do such further acts and
things as such other party may reasonably request in order to effect the
purposes of this CAF Advance Assignment.
4. By executing and delivering this CAF Advance Assignment, the
Assignor Lender and the CAF Advance Assignee confirm to and agree with each
other and the Administrative Agent and the Lenders as follows: (i) other than
the representation and warranty that it is the legal and beneficial owner of the
interest being assigned hereby free and clear of any adverse claim and has the
corporate power and authority, and the legal right to sell, assign and transfer
the CAF Advance to the CAF Advance Assignee, the Assignor Lender makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or any other instrument or document furnished pursuant thereto
or with respect to the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or such other
instrument or document furnished pursuant thereto; (ii) the Assignor Lender
makes no representation or warranty and assumes no responsibility with respect
to the financial condition of the Borrower or the performance or observance by
the Borrower of any of its obligations under the Credit Agreement or any other
instrument or document furnished pursuant thereto; (iii) the CAF Advance
Assignee confirms that it has received a copy of the Credit Agreement, together
with copies of the financial statements referred to in Section 3.1, the
financial statements delivered pursuant to Section 5.1, if any, and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this CAF Advance Assignment; (iv) the CAF
Advance Assignee will, independently and without reliance upon the
Administrative Agent the Assignor Lender or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in respect of the Credit Agreement; and (v) the
CAF Advance Assignee appoints and authorizes the Administrative Agent to take
such action as agent on its behalf and to exercise such powers under the Credit
Agreement as are delegated to the Administrative Agent by the terms thereof,
together with such powers as are reasonably incidental thereto, all in
accordance with Section 8 of the Credit Agreement.
5. Each party hereto represents and warrants to and agrees with the
Administrative Agent that it is aware of and will comply with the provisions of
Section 10.6 of the Credit Agreement.
3
6. THIS CAF ADVANCE ASSIGNMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
IN WITNESS WHEREOF, the parties hereto have caused this CAF Advance
Assignment to be executed by their respective duly authorized officers on
Schedule I hereto as of the date set forth in Item 1 of Schedule I hereto.
4
Item 1 (Date of CAF Advance [Insert date of CAF Advance Assignment]
Assignment):
Item 2 (Assignor Lender): [Insert name of Assignor Lender]
Item 3 (CAF Advance Assignee): [Insert name, address and telephone
numbers and name of contact party of
CAF Advance Assignee]
Item 4 (Transfer Effective Date): [Insert Transfer Effective Date] [To be
a date not less than five business days
after date of CAF Advance Assignment]
Item 5 (Description of CAF Advance):
a. Date:
b. Principal Amount:
Item 6 (Payment Instructions): [Complete only if payments are to be
made by Administrative Agent to CAF
Advance Assignee rather than to
Assignor Lender as collection agent for
CAF Advance Assignee; leave blank if
Assignor Lender is to act as such
collection agent]
Item 7 (Signatures):
_________________________________,
as Assignor Lender
By: _____________________________
Name:
Title:
_________________________________,
as Bid Loan Assignee
By: _____________________________
Name:
Title:
5
ACCEPTED FOR RECORDATION
IN REGISTER:
CITIBANK, N.A.,
as Administrative Agent
By: ________________________
Name:
Title:
EXHIBIT E
SWING LINE LOAN PARTICIPATION CERTIFICATE
___________ __, 200__
[Name of Lender]
________________
________________
________________
Ladies and Gentlemen:
Pursuant to subsection 2.20(e) of the Credit Agreement, dated as of
June 18, 2004 (as amended, supplemented or otherwise modified from time to time,
the "Credit Agreement"; unless otherwise defined herein, terms defined in the
Credit Agreement are used herein as therein defined), among MasterCard
Incorporated, a Delaware corporation (the "Borrower"), MasterCard International
Incorporated, a Delaware corporation, the several banks and other financial
institutions from time to time parties thereto (the "Lenders"), JPMorgan Chase
Bank, as back-up administrative agent for the Lenders thereunder (in such
capacity, the "Backup Agent") and Citibank, N.A., as administrative agent for
the Lenders thereunder (in such capacity, the "Administrative Agent"), the
undersigned, as Swing Line Lender under the Credit Agreement, hereby
acknowledges receipt from you on the date hereof of ___________ DOLLARS ($____)
as payment for a participating interest in the following Swing Line Loan:
Date of Swing Line Loan: ______________
Principal Amount of Swing Line Loan
Participating Interest: $_____________
Very truly yours,
CITIBANK, N.A.
By: ________________________________
Name:
Title:
EXHIBIT F-1
[FORM OF OPINION OF GENERAL COUNSEL TO THE BORROWER AND
INTERNATIONAL]
June 18, 2004
To (a) the several banks and other financial
institutions parties on the date hereof to the
Agreement referred to below, (b) JPMorgan
Chase Bank, as Backup Agent under said
Agreement and (c) Citibank, N.A., as
Administrative Agent under said Agreement.
Dear Sirs:
I am General Counsel of MasterCard Incorporated, a Delaware
corporation (the "Borrower") and MasterCard International Incorporated, a
Delaware corporation ("International" and together with the Borrower, the
"Obligors"), and am familiar with the Credit Agreement, dated as of June 18,
2004 (the "Agreement"), among the Borrower, MasterCard International, the banks
and other financial institutions parties thereto (the "Lenders"), JPMorgan Chase
Bank, as Backup Agent for the Lenders (in such capacity, the "Backup Agent"),
and Citibank, N.A., as Administrative Agent for the Lenders (in such capacity,
the "Administrative Agent"). This opinion is delivered to you pursuant to
subsection 4.1(h)(i) of the Agreement. Terms used herein which are defined in
the Agreement shall have the respective meanings set forth in the Agreement,
unless otherwise defined herein.
In connection with this opinion, I have examined an executed copy of
the Agreement, and such corporate documents and records of each Obligor and its
Subsidiaries and certificates of public officials and officers of each Obligor
and its Subsidiaries, and such other documents, as I have deemed necessary or
appropriate for the purposes of this opinion. For the purposes of this opinion,
I have assumed (i) the genuineness of all signatures of, and the authority of,
Persons signing the Agreement on behalf of parties thereto other than the
Obligors, (ii) the authenticity of all documents submitted to me as originals
and (iii) the conformity to authentic original documents of all documents
submitted to me as certified, conformed or photostatic copies.
Based upon the foregoing, I am of the opinion that:
i. Each Obligor and its Subsidiaries (a) is an entity duly
organized, validly existing and in good standing (to the extent applicable)
under the laws of the jurisdiction of its incorporation, (b) has the power and
authority, and the legal right, to own and operate its property, to lease the
property it operates as lessee and to conduct the business in which it is
currently engaged and (c) is duly qualified as a foreign entity and in good
standing under the laws of each jurisdiction where its ownership, lease or
operation of property or the conduct of its business requires such
qualification, except where the failure to be so qualified and in good standing
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.
2
ii. The execution, delivery and performance by each Obligor of the
Agreement are within the corporate powers of such Obligor, have been duly
authorized by all necessary corporate action (including any necessary
shareholder approval), require no governmental approval, and do not contravene
any law or regulation applicable to, including, without limitation, Regulation
T, U or X of the Board, or any contractual restriction binding on, each Obligor.
iii. The Agreement has been duly executed and delivered by each
Obligor and constitutes a legal, valid and binding obligation of each Obligor,
enforceable against it in accordance with its terms except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors' rights generally and by
general equitable principles (whether enforcement is sought by proceedings in
equity or at law). No consent or authorization of, filing with, notice to or
other act by or in respect of any Governmental Authority or any other Person is
required in connection with the borrowings hereunder or with the execution,
delivery, performance or validity of the Agreement other than those expressly
required by the terms of the Agreement.
iv. To the best of my knowledge after due inquiry, except to the
extent set forth in Schedule 3.6 attached to the Agreement or as previously
disclosed in any public filings made by the Borrower, there are no pending or
threatened actions or proceedings affecting either Obligor or any of its
Subsidiaries which, if determined adversely to either Obligor or such
Subsidiary, would have a Material Adverse Effect.
v. Neither Obligor is an "investment company" or a company
"controlled" by an "investment company", within the meaning of the Investment
Company Act of 1940, as amended. Neither Obligor is a "Holding Company" or a
"Subsidiary Company" of a "Holding Company" or an "Affiliate" of a "Holding
Company", as such terms are defined in the Public Utility Holding Company Act of
1935, as amended.
I am a member of the Bar of the State of New York and express no
opinion on any laws other than the laws of the State of New York, the Delaware
Corporation Law and the federal laws of the United States.
Very truly yours,
EXHIBIT F-2
[FORM OF OPINION OF SPECIAL NEW YORK COUNSEL TO THE
ADMINISTRATIVE AGENT]
June 18, 2004
To each of the Lenders,
the Backup Agent, and
the Administrative Agent party to the
Credit Agreement referred to below
Ladies and Gentlemen:
We have acted as special New York counsel to Citibank, N.A., as
administrative agent (in such capacity, the "Administrative Agent") in
connection with the Credit Agreement dated as of June 18, 2004 (the "Credit
Agreement"), among MasterCard Incorporated (the "Borrower"), MasterCard
International Incorporated (the "Guarantor" and, together with the Borrower, the
"Credit Parties"), the several banks and other financial institutions from time
to time parties thereto (the "Lenders"), JPMorgan Chase Bank, as back-up
administrative agent (in such capacity, the "Backup Agent") and the
Administrative Agent.
This opinion is furnished to you pursuant to Section 4.1(h)(ii) of
the Credit Agreement. Unless otherwise defined herein, terms defined in the
Credit Agreement are used herein as therein defined.
In arriving at the opinions expressed below, we have examined and
relied on the Credit Agreement and we have made such investigations of law as we
have deemed appropriate for purposes of this opinion.
In our examination, we have assumed the authenticity of all
documents submitted to us as originals and the conformity with authentic
original documents of all documents submitted to us as copies. When relevant
facts were not independently established, we have relied upon representations
made in or pursuant to the Credit Agreement.
In rendering the opinions expressed below, we have assumed, with
respect to the Credit Agreement, that:
(i) the Credit Agreement has been duly authorized by, has been duly
executed and delivered by, and (except to the extent set forth in the opinions
below as to the Credit Parties) constitutes the legal, valid, binding and
enforceable obligation of, all of the parties thereto;
(ii) all signatories to the Credit Agreement have been duly
authorized;
(iii) all of the parties to the Credit Agreement are duly organized
and validly existing under the laws of their respective jurisdictions of
incorporation and have the power and authority (corporate or other) to execute,
deliver and perform the Credit Agreement.
2
Based upon and subject to the foregoing and subject also to the
comments and qualifications set forth below, and having considered such
questions of law as we have deemed necessary as a basis for the opinions
expressed below, we are of the opinion that the Credit Agreement constitutes the
legal, valid and binding obligation of each of the Credit Parties party thereto,
enforceable against such Credit Party in accordance with its terms, except as
may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance
or transfer, moratorium or other similar laws relating to or affecting the
rights of creditors generally and except as the enforceability thereof is
subject to the application of general principles of equity (regardless of
whether considered in a proceeding in equity or at law), including, without
limitation, (a) the possible unavailability of specific performance, injunctive
relief or any other equitable remedy and (b) concepts of materiality,
reasonableness, good faith and fair dealing.
The foregoing opinions are subject to the following comments and
qualifications:
(A) The enforceability of Section 10.5 of the Credit Agreement may
be limited by (i) laws rendering unenforceable indemnification contrary to
Federal or state securities laws and the public policy underlying such laws and
(ii) laws limiting the enforceability of provisions releasing, exculpating or
exempting a party, or requiring indemnification of a party for, liability for
its own action or inaction, to the extent the action or inaction involves gross
negligence, recklessness, wilful misconduct or unlawful conduct.
(B) The enforceability of provisions in the Credit Agreement to the
effect that terms may not be waived or modified except in writing may be limited
under certain circumstances.
(C) We express no opinion as to (i) the effect of the laws of any
jurisdiction in which any Lender is located (other than the State of New York)
that limit the interest, fees or other charges such Lender may impose, (ii)
Section 10.7(b) of the Credit Agreement to the extent it purports to grant a
right of set-off, (iii) Section 10.13(a) of the Credit Agreement, insofar as it
relates to the subject matter jurisdiction of any court of the United States of
America sitting in the Southern District of New York to adjudicate any
controversy related to the Credit Agreement, (iv) Section 10.13(b) of the Credit
Agreement insofar as it relates to inconvenient forum with respect to any
Federal court and (v) Section 10.9 of the Credit Agreement.
(D) We express no opinion as to the applicability to the obligations
of the Guarantor under Section 9 of the Credit Agreement, (or the enforceability
of such obligations under) Section 548 of the Bankruptcy Code, Article 10 of the
New York Debtor and Creditor Law or any other provision of law relating to
fraudulent conveyances, transfers or obligations, or the provisions of the law
of the jurisdiction of incorporation of the Guarantor restricting dividends,
loans or other distributions by a corporation for the benefit of its
stockholders.
The foregoing opinions are limited to matters involving the Federal
laws of the United States of America and the law of the State of New York, and
we do not express any opinion as to the laws of any other jurisdiction.
This opinion letter is, pursuant to Section 4.1(h)(ii) of the Credit
Agreement, provided to you by us in our capacity as special New York counsel to
the Agent and may not be
3
relied upon by any Person for any purpose other than in connection with the
transactions contemplated by the Credit Agreement without, in each instance, our
prior written consent.
Very truly yours,
WFC/RMG
EXHIBIT G
FORM OF
BORROWING NOTICE
Citibank, N.A.,
as Administrative Agent
0 Xxxxx Xxx, Xxxxx 000
Xxx Xxxxxx, Xxxxxxxx 00000
Attention: Agency Department
JPMorgan Chase Bank,
as Backup Agent
[ ]
Dear Sirs:
This Borrowing Notice is delivered to you by the undersigned (the
"Borrower") in connection with Section 2.2 of the Credit Agreement, dated as of
June 18, 2004 (as amended, supplemented or otherwise modified from time to time,
the "Credit Agreement"), among the Borrower, MasterCard International
Incorporated, the several banks and other financial institutions from time to
time parties thereto (the "Lenders"), JPMorgan Chase Bank, as Backup Agent for
the Lenders, and Citibank, N.A., as Administrative Agent for the Lenders. Unless
otherwise defined herein, capitalized terms used herein have the meanings
provided in the Credit Agreement.
The Borrower hereby requests that Loans be made in the aggregate
principal amount of $_________ on __________, 200__ (the "Borrowing Date"). The
Borrower requests that such Loans be made as(1) [LIBOR Loans in a principal
amount of $______ having an initial Interest Period of _____ months] [ABR Loans
in a principal amount of $____________]. The Borrower requests that the Loans
requested be paid into account at [bank].
The Borrower hereby certifies that the representations and
warranties contained in Section 3 of the Credit Agreement will be true and
correct in all material respects on and as of the Borrowing Date with the same
effect as if made on and as of such date both before and after giving effect to
the Loans to be made on the Borrowing Date and that no event has occurred or
will be continuing on the Borrowing Date, or will result from the making of the
Loans to be made on the Borrowing Date, which constitutes a Default or an Event
of Default.
-------------------
(1) Insert appropriate interest rate option, and, if applicable, number of
months. If Loans are to be a combination of LIBOR and ABR Loans, specify the
respective amounts of each type.
2
IN WITNESS WHEREOF, the Borrower has caused this request and
certificate to be executed and delivered by its duly authorized officer this
________ day of _________, 200__.
MasterCard Incorporated
By: _____________________________________
Name:
Title:
EXHIBIT H
ASSIGNMENT AND ACCEPTANCE
Reference is made to the Credit Agreement, dated as of June 18, 2004
(as amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among MasterCard Incorporated, a Delaware corporation (the
"Borrower"), MasterCard International Incorporated, a Delaware corporation, the
several banks and other financial institutions from time to time parties thereto
(the "Lenders"), JPMorgan Chase Bank, as back-up administrative agent for the
Lenders (in such capacity, the "Backup Agent"), and Citibank, N.A., as
administrative agent for the Lenders (in such capacity, the "Administrative
Agent"). Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.
__________ (the "Assignor") and _______ (the "Assignee") agree as
follows:
i. The Assignor hereby irrevocably sells and assigns to the Assignee
without recourse to the Assignor, and the Assignee hereby irrevocably purchases
and assumes from the Assignor without recourse to the Assignor, as of the
Effective Date (as defined below) (but not prior to the registration of the
information contained herein in the Register pursuant to subsection 10.6(e) of
the Credit Agreement), an interest (the "Assigned Interest") in and to the
Assignor's rights and obligations under the Credit Agreement with respect to
those credit facilities contained in the Credit Agreement as are set forth on
Schedule 1 (individually, an "Assigned Facility"; collectively, the "Assigned
Facilities"), in a principal amount for each Assigned Facility as set forth on
Schedule 1.
ii. The Assignor (a) makes no representation or warranty and assumes
no responsibility with respect to any statements, warranties or representations
made in or in connection with the Credit Agreement, any other Loan Document or
any other instrument or document furnished pursuant thereto, or with respect to
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Credit Agreement, any other Loan Document or any other instrument
or document furnished pursuant thereto, other than that the Assignor has not
created any adverse claim upon the interest being assigned by it hereunder and
that such interest is free and clear of any such adverse claim; (b) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower, any of its Subsidiaries or any other
obligor or the performance or observance by the Borrower, any of its
Subsidiaries or any other obligor of any of their respective obligations under
the Credit Agreement or any other Loan Document or any other instrument or
document furnished pursuant hereto or thereto; and (c) (i) requests that the
Administrative Agent, upon request by the Assignee, (a) exchange any attached
Notes for a new Note or Notes payable to the Assignee or, (b) if the Assignor
does not hold any Notes, issue a new Note or Notes payable to the Assignee if so
requested and (ii) if (A) the Assignor has retained any interest in the Assigned
Facility and (B) the Assignor holds any Notes, requests that the Administrative
Agent exchange the attached Notes for a new Note or Notes payable to the
Assignor, in each case in amounts which reflect the assignment being made hereby
(and after giving effect to any other assignments which have become effective on
the Effective Date).
iii. The Assignee (a) represents and warrants that it is legally
authorized to enter into this Assignment and Acceptance; (b) confirms that, to
the extent it has so required, it
2
has received a copy of the Credit Agreement, together with copies of the
financial statements referred to in or delivered pursuant to Sections 3.1 and
5.1 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (c) agrees that it will, independently and without
reliance upon the Assignor, the Administrative Agent or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement, the other Loan Documents or any other instrument or
document furnished pursuant hereto or thereto; (d) appoints and authorizes the
Administrative Agent to take such action as administrative agent on its behalf
and to exercise such powers and discretion under the Credit Agreement, the other
Loan Documents or any other instrument or document furnished pursuant hereto or
thereto as are delegated to the Administrative Agent by the terms thereof,
together with such powers as are incidental thereto; and (e) agrees that, with
respect to the Assigned Interest, it will be a party to and bound by the
provisions of the Credit Agreement and will perform in accordance with its terms
all the obligations which by the terms of the Credit Agreement are required to
be performed by it as a Lender including, if it is organized under the laws of a
jurisdiction outside the United States, its obligations pursuant to subsection
2.23(b) of the Credit Agreement.
iv. The effective date of this Assignment and Acceptance shall be
____ , 200_ (the "Effective Date"). Following the execution of this Assignment
and Acceptance and the consent hereto by the Borrower to the extent required
under the Credit Agreement, it will be delivered to the Administrative Agent for
acceptance by it and recording by the Administrative Agent pursuant to the
Credit Agreement, effective as of the Effective Date (which shall not, unless
otherwise agreed to by the Administrative Agent, be earlier than five Business
Days after the date of such acceptance and recording by the Administrative
Agent).
v. Upon such acceptance and recording, from and after the Effective
Date, the Administrative Agent shall make all payments in respect of the
Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignor and Assignee. The Assignor and the Assignee shall make
all appropriate adjustments in payments by the Administrative Agent for periods
prior to the Effective Date or with respect to the making of this assignment
directly between themselves.
vi. From and after the Effective Date, (a) the Assignee shall, with
respect to the Assigned Interest, be a party to the Credit Agreement and, to the
extent provided in this Assignment and Acceptance, have the rights and
obligations of a Lender thereunder and under the other Loan Documents and shall
be bound by the provisions thereof and (b) the Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights (except
pursuant to Sections 2.21, 2.22 and 10.5 of the Credit Agreement) and be
released from its obligations under the Credit Agreement.
vii. This Assignment and Acceptance shall be governed by and
construed in accordance with the law of the State of New York.
viii. This Agreement may be executed by one or more of the parties
to this Agreement on any number of separate counterparts (including by facsimile
transmission), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.
3
IN WITNESS WHEREOF, the parties hereto have caused this Assignment
and Acceptance to be executed as of the date first above written by their
respective duly authorized officers on Schedule 1 hereto.
4
Schedule 1
to Assignment and Acceptance
Re: Assignment and Acceptance relating to the Credit Agreement, dated as of June
18, 2004 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement"), among MasterCard Incorporated, a Delaware corporation (the
"Borrower"), MasterCard International Incorporated, a Delaware corporation, the
several banks and other financial institutions from time to time parties thereto
(the "Lenders"), JPMorgan Chase Bank, as back-up administrative agent for the
Lenders (in such capacity, the "Backup Agent"), and Citibank, N.A., as
administrative agent for the Lenders (in such capacity, the "Administrative
Agent" ).
Name of Assignor:
Name of Assignee:
Effective Date of Assignment:
Credit Principal
Facility Assigned Amount Assigned
----------------- ---------------
Revolving Credit $_______
The terms set forth above are hereby agreed to by:
[NAME OF ASSIGNEE] [NAME OF ASSIGNOR]
By___________________________ By___________________________
Name: Name:
Title: Title:
Accepted: Consented To:
CITIBANK, N.A., as MASTERCARD INCORPORATED
Administrative Agent
By___________________________ By___________________________
Name: Name:
Title: Title:
EXHIBIT I
[FORM OF CLOSING CERTIFICATE]
CLOSING CERTIFICATE
Pursuant to subsections 4.1 (c), 4.1(d), 4.1(e) and 4.1(f) of the
Credit Agreement, dated as of June 18, 2004 (as amended, supplemented or
otherwise modified from time to time, the "Credit Agreement"), among MasterCard
Incorporated, a Delaware corporation ("the "Borrower"), MasterCard International
Incorporated, a Delaware corporation ("International"), the several banks and
other financial institutions from time to time parties thereto (the "Lenders"),
JPMorgan Chase Bank, as Backup Agent for the Lenders, and Citibank, N.A., as
Administrative Agent for the Lenders, the undersigned, ________ of [Borrower]
[International] ______________, hereby certifies as follows:
1. The representations and warranties of [Borrower] [International]
set forth in the Credit Agreement and each of the other Loan Documents to
which it is a party are true and correct on and as of the date hereof as
if made on and as of the date hereof;
2. No Default or Event of Default has occurred and is continuing as
of the date hereof or will occur after giving effect to the making of the
Loans on the date hereof or the consummation of each of the transactions
contemplated by the Loan Documents; and
3. ____________ is and at all times since _______ __, _____, has
been the duly elected and qualified [Assistant] Secretary of [Borrower]
[International] and the signature set forth on the signature line for such
officer below is such officer's true and genuine signature;
and the undersigned [Assistant] Secretary of [Borrower]
[International] hereby certifies as follows:
4. There are no liquidation or dissolution proceedings pending or to
my knowledge threatened against [Borrower] [International] or any of its
Subsidiaries, nor has any other event occurred affecting or threatening
the corporate existence of [Borrower] [International] or any of its
Subsidiaries;
5. [Borrower] [International] is a corporation duly incorporated,
validly existing and in good standing under the laws of Delaware;
6. (i) Attached hereto as Exhibit A is a true and complete copy of
resolutions duly adopted by the Board of Directors of [Borrower]
[International] on __________ __, _____; such resolutions have not in any
way been amended, modified, revoked or rescinded and have been in full
force and effect since their adoption to and including the date hereof and
are now in full force and effect; such resolutions are the only corporate
proceedings of [Borrower] [International] now in force relating to or
affecting the matters referred to therein;
2
(ii) attached hereto as Exhibit B is a true and complete copy
of the by-laws of [Borrower] [International] as in effect at all times
since ______ __, _____, to and including the date hereof, and
(iii) attached hereto as Exhibit C is a true and complete copy
of the certificate of incorporation of [Borrower] [International], as
amended or restated on or prior to the date hereof and as in effect at all
times since _______ __, _____, to and including the date hereof; and
7. The following persons are now duly elected and qualified officers
of [Borrower] [International], holding the offices indicated next to their
respective names below, and such officers have held such offices with
[Borrower] [International] at all times since _______ __, _____, to and
including the date hereof, and the signatures appearing opposite their
respective names below are the true and genuine signatures of such
officers, and each of such officers is duly authorized to execute and
deliver on behalf of [Borrower] [International], the Credit Agreement and
the other Loan Documents to which it is a party and any certificate or
other document to be delivered by [Borrower] [International] pursuant to
the Credit Agreement or any such Loan Document:
Name Office Signature
---- ------ ---------
[ ] [ ] _________
[ ] [ ] _________
Unless otherwise defined herein, capitalized terms which are defined
in the Credit Agreement and used herein are so used as so defined.
3
IN WITNESS WHEREOF, the undersigned have hereunto set our names and
affixed the corporate seal.
MASTERCARD INCORPORATED MASTERCARD INTERNATIONAL INCORPORATED
By: _______________________________ By: _________________________________
Name: Name:
Title: Treasurer Title: Treasurer
By: _______________________________ By: _________________________________
Name: Name:
Title: [Assistant] Secretary Title: [Assistant] Secretary
Date: __________, 2004
EXHIBIT J
[FORM OF COMPLIANCE CERTIFICATE]
Pursuant to subsection 5.2(b) of the Credit Agreement, dated as of
June 18, 2004 (as amended, supplemented or otherwise modified from time to time,
the "Credit Agreement"), among MasterCard Incorporated, a Delaware corporation
(the "Borrower"), MasterCard International Incorporated, a Delaware corporation,
the several banks and other financial institutions from time to time parties
thereto (the "Lenders"), JPMorgan Chase Bank, as Backup Agent for the Lenders,
and Citibank, N.A., as Administrative Agent for the Lenders, the undersigned,
______________ of the Borrower, hereby certifies that during the period
[_______] to [_________], except as set forth on Schedule I hereto:
1. The representations and warranties of the Borrower set forth in
the Credit Agreement and each of the other Loan Documents or which are
contained in any certificate, document or financial or other statement
furnished pursuant to or in connection with the Credit Agreement were true
and correct in all material respects on and as of the date hereof with the
same effect as if made on the date hereof, except for representations and
warranties expressly stated to relate to a specific earlier date, in which
case such representations and warranties were true and correct as of such
earlier date;
2. The negative covenant set forth in Section 6.1 of the Credit
Agreement regarding the Maintenance of Net Worth has been calculated as
follows:
$525,000,000
+ 50% of [$________] Consolidated Net Income (if positive)] of the
Borrower for each fiscal quarter commencing with and including the
fiscal quarter ending on [_______], 2004
= TOTAL [$_____]
[$__________] [Consolidated Net Worth] must be greater than or equal
to
TOTAL [$_____];
3. No Default or Event of Default has occurred and is continuing as
of the date hereof.
Unless otherwise defined herein, capitalized terms which are defined
in the Credit Agreement and used herein are so used as so defined.
2
IN WITNESS WHEREOF, the undersigned has hereunto set his or her name
and affixed the corporate seal.
MASTERCARD INCORPORATED
By: _____________________________________
Name: ___________________________________
Title: __________________________________
Date: __________ __, 200__
3
Schedule I to
Compliance Certificate
[DISCLOSURE]
EXHIBIT K-1
[FORM OF NEW LENDER SUPPLEMENT]
SUPPLEMENT, dated ___________, to the Credit Agreement dated as of
June 18, 2004 (as amended, supplemented or otherwise modified from time to time,
the "Credit Agreement"), among MASTERCARD INCORPORATED, a Delaware corporation
(the "Borrower"), MASTERCARD INTERNATIONAL INCORPORATED, a Delaware corporation,
the several banks and other financial institutions parties thereto (the
"Lenders"), JPMORGAN CHASE BANK, as back-up administrative agent (in such
capacity, the "Backup Agent") and CITIBANK, N.A., as administrative agent (in
such capacity, the "Administrative Agent") for the Lenders.
W I T N E S S E T H :
WHEREAS, the Credit Agreement provides in subsection 2.25(b) thereof
that any bank, financial institution or other entity, although not originally a
party thereto, may become a party to the Credit Agreement with the consent of
the Borrower and the Administrative Agent by executing and delivering to the
Borrower and the Administrative Agent a supplement to the Credit Agreement in
substantially the form of this Supplement; and
WHEREAS, the undersigned was not an original party to the Credit
Agreement but now desires to become a party thereto;
NOW, THEREFORE, the undersigned hereby agrees as follows:
1. The undersigned agrees to be bound by the provisions of the
Credit Agreement, and agrees that it shall, on the date this Supplement is
accepted by the Borrower and the Administrative Agent, become a Lender for
all purposes of the Credit Agreement to the same extent as if originally a
party thereto, with a Commitment of $____.
2. The undersigned (a) represents and warrants that it is legally
authorized to enter into this Supplement; (b) confirms that it has
received a copy of the Credit Agreement, together with copies of the
financial statements delivered pursuant to Section 3.1 thereof and such
other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Supplement; (c) agrees
that it has made and will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under the Credit
Agreement or any instrument or document furnished pursuant hereto or
thereto; (d) appoints and authorizes the Administrative Agent to take such
action as administrative agent on its behalf and to exercise such powers
and discretion under the Credit Agreement or any instrument or document
furnished pursuant hereto or thereto as are delegated to the
Administrative Agent by the terms thereof, together with such powers as
are incidental thereto; and (e) agrees that it will be bound by the
provisions of the Credit Agreement and will perform in accordance with its
terms all the obligations which by the terms of the Credit Agreement are
required to be performed by it as a Lender including, without limitation,
if it is organized under the laws of a
2
jurisdiction outside the United States, its obligation pursuant to
subsection 2.23(b) of the Credit Agreement.
3. The undersigned's address for notices for the purposes of the
Credit Agreement is as follows:
4. Terms defined in the Credit Agreement shall have their defined
meanings when used herein.
IN WITNESS WHEREOF, the undersigned has caused this Supplement to be
executed and delivered by a duly authorized officer on the date first above
written.
[INSERT NAME OF LENDER]
By _______________________________
Name:
Title:
Accepted this _____ day of
____________, _______.
MASTERCARD INCORPORATED
By _______________________________
Name:
Title:
Accepted this _____ day of
____________, _______.
CITIBANK, N.A., as Administrative Agent
By _______________________________
Name:
Title:
EXHIBIT K-2
[FORM OF COMMITMENT INCREASE SUPPLEMENT]
SUPPLEMENT, dated ____________, to the Credit Agreement dated as of
June 18, 2004 (as amended, supplemented otherwise modified from time to time,
the "Credit Agreement"), among MASTERCARD INCORPORATED, a Delaware corporation
(the "Borrower"), MASTERCARD INTERNATIONAL INCORPORATED, a Delaware corporation,
the several banks and other financial institutions parties thereto (the
"Lenders"), JPMORGAN CHASE BANK, as back-up agent (in such capacity, the "Backup
Agent") and CITIBANK, N.A., as administrative administrative agent (in such
capacity, the "Administrative Agent") for the Lenders.
W I T N E S S E T H :
WHEREAS, the Credit Agreement provides in subsection 2.25(c) thereof
that any Lender with (when applicable) the consent of the Borrower may increase
the amount of its Commitment by executing and delivering to the Borrower and the
Administrative Agent a supplement to the Credit Agreement in substantially the
form of this Supplement; and
WHEREAS, the undersigned now desires to increase the amount of its
Commitment under the Credit Agreement;
NOW THEREFORE, the undersigned hereby agrees as follows:
1. The undersigned agrees, subject to the terms and conditions of
the Credit Agreement, that on the date this Supplement is accepted by the
Borrower and the Administrative Agent it shall have its Commitment
increased by $ ________, thereby making the amount of its Commitment
$________.
2. Terms defined in the Credit Agreement shall have their defined
meanings when used herein.
2
IN WITNESS WHEREOF, the undersigned has caused this Supplement to be
executed and delivered by a duly authorized officer on the date first above
written.
[INSERT NAME OF LENDER]
By ______________________________
Name:
Title:
Accepted this ________ day of
____________, _______.
MASTERCARD INCORPORATED
By _______________________________
Name:
Title:
Accepted this ________ day of
____________, _______.
CITIBANK, N.A., as Administrative Agent
By _______________________________
Name:
Title:
