EXHIBIT 10.A
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EL PASO CORPORATION
----------
$3,000,000,000 364-DAY
REVOLVING CREDIT AND COMPETITIVE
ADVANCE FACILITY AGREEMENT
Dated as of May 15, 2002
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JPMORGAN CHASE BANK,
as Administrative Agent
and CAF Advance Agent
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ABN AMRO BANK N.V. and CITIBANK, N.A.,
as Co-Documentation Agents
BANK OF AMERICA, N.A. and CREDIT SUISSE FIRST BOSTON,
as Co-Syndication Agents
X.X. XXXXXX SECURITIES INC.,
as Sole Bookrunner and Lead Arranger
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TABLE OF CONTENTS
PAGE
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS........................................................................1
SECTION 1.1. Certain Defined Terms....................................................................1
SECTION 1.2. Computation of Time Periods.............................................................15
SECTION 1.3. Accounting Terms........................................................................16
SECTION 1.4. References..............................................................................16
ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES.....................................................................16
SECTION 2.1. The Revolving Credit Advances...........................................................16
SECTION 2.2. Making the Revolving Credit Advances....................................................16
SECTION 2.3. Evidence of Debt........................................................................17
SECTION 2.4. CAF Advances............................................................................18
SECTION 2.5. Procedure for CAF Advance Borrowings....................................................18
SECTION 2.6. CAF Advance Payments....................................................................21
SECTION 2.7. Evidence of Debt........................................................................22
SECTION 2.8. Fees....................................................................................22
SECTION 2.9. Reduction of the Commitments............................................................23
SECTION 2.10. Repayment of Advances..................................................................23
SECTION 2.11. Interest on Revolving Credit Advances..................................................23
SECTION 2.12. Additional Interest on Eurodollar Rate Advances........................................24
SECTION 2.13. Interest Rate Determination............................................................24
SECTION 2.14. Voluntary Conversion of Advances.......................................................25
SECTION 2.15. Optional and Mandatory Prepayments.....................................................26
SECTION 2.16. Increased Costs........................................................................26
SECTION 2.17. Increased Capital......................................................................27
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PAGE
SECTION 2.18. Illegality.............................................................................28
SECTION 2.19. Pro Rata Treatment, Payments and Computations..........................................28
SECTION 2.20. Taxes..................................................................................29
SECTION 2.21. Sharing of Payments, Etc...............................................................31
SECTION 2.22. Use of Proceeds........................................................................32
SECTION 2.23. Extension of Stated Termination Date...................................................32
SECTION 2.24. [Intentionally Left Blank].............................................................33
SECTION 2.25. Replacement of Lenders.................................................................33
ARTICLE III CONDITIONS OF EFFECTIVENESS AND LENDING..............................................................33
SECTION 3.1. Conditions Precedent to Effectiveness of this Agreement.................................33
SECTION 3.2. Conditions Precedent to Initial Advances................................................34
SECTION 3.3. Conditions Precedent to Initial Advances to Any Borrowing Subsidiary....................35
SECTION 3.4. Conditions Precedent to Each Borrowing..................................................35
ARTICLE IV REPRESENTATIONS AND WARRANTIES........................................................................36
SECTION 4.1. Representations and Warranties of the Borrowers.........................................36
ARTICLE V COVENANTS OF THE BORROWERS.............................................................................38
SECTION 5.1. Affirmative Covenants...................................................................38
SECTION 5.2. Negative Covenants......................................................................39
SECTION 5.3. Reporting Requirements..................................................................43
SECTION 5.4. Restrictions on Material Subsidiaries...................................................45
ARTICLE VI GUARANTEES............................................................................................46
SECTION 6.1. Guarantees..............................................................................46
SECTION 6.2. No Subrogation..........................................................................46
SECTION 6.3. Amendments, etc. with respect to the Obligations; Waiver of Rights......................47
SECTION 6.4. Guarantee Absolute and Unconditional....................................................47
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PAGE
SECTION 6.5. Reinstatement...........................................................................48
ARTICLE VII EVENTS OF DEFAULT....................................................................................48
SECTION 7.1. Event of Default........................................................................48
ARTICLE VIII THE ADMINISTRATIVE AGENT AND THE CAF ADVANCE AGENT..................................................51
SECTION 8.1. Authorization and Action................................................................51
SECTION 8.2. Administrative Agent's and CAF Advance Agent's Reliance, Etc............................51
SECTION 8.3. JPMorgan and Affiliates.................................................................52
SECTION 8.4. Lender Credit Decision..................................................................52
SECTION 8.5. Indemnification.........................................................................52
SECTION 8.6. Successor Administrative Agent and CAF Advance Agent....................................53
SECTION 8.7. Co-Syndication Agents; Co-Documentation Agents..........................................53
ARTICLE IX MISCELLANEOUS.........................................................................................54
SECTION 9.1. Amendments, Etc.........................................................................54
SECTION 9.2. Notices, Etc............................................................................54
SECTION 9.3. No Waiver; Remedies.....................................................................55
SECTION 9.4. Costs and Expenses; Indemnity...........................................................55
SECTION 9.5. Right of Set-Off........................................................................56
SECTION 9.6. Binding Effect..........................................................................56
SECTION 9.7. Assignments and Participations..........................................................56
SECTION 9.8. Confidentiality.........................................................................59
SECTION 9.9. Consent to Jurisdiction.................................................................59
SECTION 9.10. GOVERNING LAW..........................................................................60
SECTION 9.11. Rate of Interest.......................................................................60
SECTION 9.12. Execution in Counterparts..............................................................60
SECTION 9.13. Existing 364-Day Facility..............................................................61
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SCHEDULE
Schedule I Commitments
EXHIBITS
Exhibit A Form of Note
Exhibit B Form of Notice of Borrowing
Exhibit C Form of CAF Advance Request
Exhibit D Form of CAF Advance Offer
Exhibit E Form of CAF Advance Confirmation
Exhibit F Form of Assignment and Acceptance
Exhibit G Form of Opinion of [Associate General] [Senior] Counsel of the Company
Exhibit H Form of Opinion of
New York Counsel to the Company
Exhibit I Form of Process Agent Letter
Exhibit J Form of Joinder Agreement
Exhibit K Form of Opinion of [Associate General] [Senior] Counsel of the Company
Exhibit L Form of Opinion of
New York Counsel to the Company
Exhibit M Form of Extension Request
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$3,000,000,000
364-DAY REVOLVING CREDIT AND COMPETITIVE
ADVANCE FACILITY AGREEMENT, dated as of May 15, 2002, among EL PASO CORPORATION,
a Delaware corporation (the "Company"), EL PASO NATURAL GAS COMPANY, a Delaware
corporation ("EPNGC"), TENNESSEE GAS PIPELINE COMPANY, a Delaware corporation
("Tennessee"), the several banks and other financial institutions from time to
time parties to this Agreement (the "Lenders"), JPMORGAN CHASE BANK, a
New York
banking corporation, as administrative agent (in such capacity, the
"Administrative Agent") and as CAF Advance Agent (in such capacity, the "CAF
Advance Agent") for the Lenders hereunder, ABN AMRO BANK N.V. and CITIBANK,
N.A., as co-documentation agents (in such capacity, the "Co-Documentation
Agents") for the Lenders, and BANK OF AMERICA, N.A. and CREDIT SUISSE FIRST
BOSTON, as co-syndication agents (in such capacity, the "Co-Syndication Agents")
for the Lenders.
The parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.1. Certain Defined Terms. As used in this Agreement,
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):
"3-Year Facility" means the 3-Year Revolving Credit and
Competitive Advance Facility Agreement, dated as of August 4, 2000,
among the Company, EPNGC, Tennessee, the banks and other lenders
parties thereto, JPMorgan Chase Bank, as successor in interest to The
Chase Manhattan Bank, as Administrative Agent and CAF Advance Agent,
Citibank, N.A. and ABN AMRO Bank N.V., as Co-Documentation Agent and
Bank of America, N.A., as Syndication Agent, as the same has been and
may be amended, supplemented and modified from time to time.
"Administrative Agent" has the meaning assigned to such term
in the preamble hereof.
"Administrative Questionnaire" means an Administrative
Questionnaire in a form supplied by the Administrative Agent.
"Advance" means an advance by a Lender to any Borrower
pursuant to Article II, and refers to a Base Rate Advance, a Eurodollar
Rate Advance or a CAF Advance.
"Affiliate" means as to any Person, any other Person that,
directly or indirectly, controls, is controlled by or is under common
control with such Person or is a director or officer of such Person.
The term "control" (including the terms "controlled by" or "under
common control with") means, with respect to any Person, the
possession, direct or indirect, of the power to vote 20% or more of the
securities having ordinary voting power for the election of directors
of such Person or to direct or cause the direction of the management
and policies of such Person, whether through ownership of voting
securities
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or by contract or otherwise. Neither a director nor any officer of a
Person, in such capacity, shall be deemed an "Affiliate" of such Person
for purposes of this Agreement.
"Agreement" means this 364-Day Revolving Credit and
Competitive Advance Facility, as amended, supplemented or otherwise
modified from time to time.
"Alternate Program" means any program providing for the sale
or other disposition of trade or other receivables entered into by the
Company or a Subsidiary which is in addition to or in replacement of
the program evidenced by either Receivables Purchase and Sale Agreement
(whether or not either Receivables Purchase and Sale Agreement shall
then be in effect), provided that such program is on terms (a)
substantially similar to either Receivables Purchase and Sale Agreement
(as modified to comply with FASB 125 or similar policies or guidelines
from time to time in effect) or (b) customary for similar transactions
as reasonably determined by the Administrative Agent.
"Applicable Eurodollar Rate Margin" with respect to any
Eurodollar Rate Advance to any Borrower means for any day the rate per
annum set forth below opposite the applicable S&P Bond Rating and
Xxxxx'x Bond Rating in effect on such day for such Borrower:
Bond Rating Applicable Eurodollar
(S&P/Xxxxx'x) Level Rate Margin
------------- ----- ---------------------
A/A2 or higher I .320%
A-/A3 II .410%
BBB+/Baa1 III .525%
BBB/Baa2 IV .625%
BBB-/Baa3 V .800%
BB+/Ba1 or lower VI 1.00%;
provided that (i) if the Bond Ratings for any Borrower do not fall
within the same Level, the Applicable Eurodollar Rate Margin applicable
to such day will be the percentage opposite the Bond Rating that is at
the higher level (Level I being the highest and Level VI being the
lowest Level), (ii) in the event a Bond Rating for a Borrower is not
available from one of the Rating Agencies, the Applicable Eurodollar
Rate Margin will be based on the Bond Rating of the other Rating
Agency, (iii) in the event a Bond Rating for the Company is available
from none of the Rating Agencies, the Applicable Eurodollar Rate Margin
for the Company will be the percentage opposite Level VI, and (iv) in
the event a Bond Rating for a Borrowing Subsidiary is available from
none of the Rating Agencies, the Applicable Eurodollar Rate Margin for
such Borrower will be determined using the Bond Ratings of the Company
(unless there is another Borrower (the "Intermediate Parent") that
directly or indirectly owns 100% of the common stock of such Borrower
and the Intermediate Parent has a Bond Rating in effect, in which case,
the Applicable Eurodollar Rate Margin for such Borrower will be
determined using the Bond Ratings of the Intermediate Parent of such
Borrower); provided, that for each day on which the aggregate principal
amount of the Advances outstanding hereunder is equal to or greater
than 25% of the aggregate amount of the total Commitments hereunder,
the Applicable
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Eurodollar Rate Margin for each Borrower will be increased by 0.250%
for such day; and provided further, that for the period commencing on
the Termination Date and continuing through to the first anniversary of
the Termination Date, the Applicable Eurodollar Rate Margin for each
Borrower hereunder shall be increased by 0.25%.
"Applicable LIBO Rate" means in respect of any CAF Advance
requested pursuant to a LIBO Rate CAF Advance Request, an interest rate
per annum equal to the rate which appears on Page 3750 of the Telerate
Service (or 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) as at approximately 11:00 A.M., London
time, two Business Days prior to the beginning of the period for which
such CAF Advance is to be outstanding as the rate for Dollar deposits
with a maturity comparable to such period.
"Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, and accepted by the
Administrative Agent, in substantially the form of Exhibit F.
"Base Rate" means for any day, a rate per annum (adjusted to
the nearest 1/16 of 1% or, if there is no nearest 1/16 of 1%, rounded
upwards to the next highest 1/16 of 1%) equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Effective Federal Funds
Rate in effect on such day plus 1/2 of 1%. Any change in the Base Rate
due to a change in the Prime Rate or the Effective Federal Funds Rate
shall be effective as of the opening of business on the effective day
of such change in the Prime Rate or the Effective Federal Funds Rate,
respectively.
"Base Rate Advance" means an Advance which bears interest as
provided in Section 2.11(a)(i).
"Bond Rating" means a rating assigned to a Borrower's senior
long-term unsecured debt by any of the Rating Agencies.
"Borrowers" means the collective reference to the Company and
each Borrowing Subsidiary; each a "Borrower".
"Borrowing" means a borrowing consisting of Advances of the
same Type made on the same day by the Lenders and, in the case of
Eurodollar Rate Advances, having Interest Periods of the same duration,
it being understood that there may be more than one Borrowing on a
particular day.
"Borrowing Subsidiary" means EPNGC, Tennessee and each other
domestic Subsidiary of the Company which has been designated by the
Company as a "Borrowing Subsidiary" by written notice to the
Administrative Agent, which designation shall not have been revoked by
written notice by the Company to the Administrative Agent (provided,
that no such designation shall be revoked if either (a) any Default or
Event of Default shall have occurred and be continuing or (b) any
Advance to such Borrowing Subsidiary, or any interest accrued thereon,
shall be outstanding); collectively, the "Borrowing Subsidiaries". For
avoidance of doubt, (i) Tennessee may be undesignated
4
as a Borrowing Subsidiary by written notice to the Administrative Agent
by the Company and (ii) EPNGC shall always be a Borrower hereunder.
"Business Day" means a day of the year on which banks are not
required or authorized to close in
New York,
New York and, if the
applicable Business Day relates to any Eurodollar Rate Advances or LIBO
Rate CAF Advances, on which dealings are carried on in the London
interbank market.
"Business Entity" means a partnership, limited partnership,
limited liability partnership, corporation (including a business
trust), limited liability company, unlimited liability company, joint
stock company, trust, unincorporated association, joint venture or
other entity.
"CAF Advance" means an Advance made pursuant to Sections 2.4
and 2.5.
"CAF Advance Agent" has the meaning assigned to such term in
the preamble hereof.
"CAF Advance Availability Period" means the period from and
including the Closing Date until the earlier of (a) the date which is 7
days prior to the Stated Termination Date and (b) the Termination Date.
"CAF Advance Confirmation" means each confirmation by the
applicable Borrower of its acceptance of CAF Advance Offers, which CAF
Advance Confirmation shall be substantially in the form of Exhibit E
and shall be delivered to the CAF Advance Agent by telecopy.
"CAF Advance Interest Payment Date" means as to each CAF
Advance, each interest payment date specified by the applicable
Borrower for such CAF Advance in the related CAF Advance Request.
"CAF Advance Lenders" means Lenders from time to time
designated by the Company, in consultation with the CAF Advance Agent,
as CAF Advance Lenders as provided in Section 2.4.
"CAF Advance Maturity Date" means as to any CAF Advance, the
date specified by the applicable Borrower pursuant to Section
2.5(d)(ii) in its acceptance of the related CAF Advance Offer.
"CAF Advance Offer" means each offer by a CAF Advance Lender
to make CAF Advances pursuant to a CAF Advance Request, which CAF
Advance Offer shall contain the information specified in Exhibit D and
shall be delivered to the CAF Advance Agent by telephone, immediately
confirmed by telecopy.
"CAF Advance Request" means each request by the applicable
Borrower for CAF Advance Lenders to submit bids to make CAF Advances,
which request shall contain the information in respect of such
requested CAF Advances specified in Exhibit C and shall be delivered to
the CAF Advance Agent in writing, by telecopy, or by telephone,
immediately confirmed by telecopy.
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"Capitalization" of any Person means the sum (without
duplication) of (a) consolidated Debt of such Person and its
consolidated Subsidiaries, plus (b) the aggregate amount of Guaranties
by such Person and its consolidated Subsidiaries, plus (c) the
consolidated common and preferred stockholders' equity of such Person
and its consolidated Subsidiaries, plus (d) the cumulative amount by
which stockholders' equity of such Person shall have been reduced by
reason of non-cash write downs of long-term assets from and after the
Effective Date.
"Closing Date" has the meaning assigned to such term in
Section 3.2.
"Co-Documentation Agents" has the meaning assigned to such
term in the preamble hereof.
"Commitment" means as to any Lender, the obligation of such
Lender to make Revolving Credit Advances to the Borrowers 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 I (as such
Schedule I is amended from time to time pursuant to Section 9.7(c)), as
such amount may be reduced from time to time in accordance with the
provisions of this Agreement.
"Commitment Expiration Date" has the meaning assigned to such
term in Section 2.23(a).
"Commitment Percentage" means 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 Advances then outstanding constitutes of the
aggregate principal amount of the Advances then outstanding).
"Company" has the meaning assigned to such term in the
preamble hereof.
"Contingent Guaranty" has the meaning assigned to such term in
the definition of the term "Guaranty" contained in this Section 1.1.
"Convert", "Conversion" and "Converted" each refers to a
conversion of Advances of one Type into Advances of another Type
pursuant to Section 2.13, 2.14 or 2.18.
"Co-Syndication Agents" has the meaning assigned to such term
in the preamble hereof.
"Current Reimbursement Obligations" means, with respect to any
Person, non-contingent obligations of such Person to reimburse a bank
or other Person in respect of amounts paid under a letter of credit or
similar instrument that are paid on or prior to the fifth Business Day
after the due date therefor.
"Debt" means, as to any Person, all Indebtedness of such
Person other than (a) any Project Financing of such Person, (b) in the
case of the Company or a Subsidiary, any liabilities of the Company or
such Subsidiary, as the case may be, under any Alternate Program, or
any document executed by the Company or such Subsidiary, as the
6
case may be, in connection therewith, (c) any obligations of the
Company or a Subsidiary with respect to lease payments for the
headquarters building of the Company located in Houston, Texas and (d)
Current Reimbursement Obligations of such Person; provided, however,
that for purposes of Article V, "Debt" shall not include up to an
aggregate amount (determined without duplication of amount) of
$200,000,000 of (i) the amount of optional payments in lieu of asset
repurchase or other payments to similar effect, including extension or
renewal payments, on off balance sheet leases and (ii) the amount of
the purchase price for optional acquisition of such asset (in either
case, calculated at the lower amount payable in respect of such asset
under clause (i) or (ii) above).
"Default" means any event that would constitute an Event of
Default but for the requirement that notice be given or time elapse or
both.
"Dollars" and "$" means dollars in lawful currency of the
United States of America.
"Effective Date" has the meaning assigned to such term in
Section 3.1.
"Effective Federal Funds Rate" means, for any day, the
weighted average of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by Federal funds
brokers, as published for such day (or, if such day is not a Business
Day, for the next preceding Business Day) by the Federal Reserve Bank
of
New York, or, if such rate is not so published for any day which is
a Business Day, the average of the quotations for such day on such
transactions received by the Administrative Agent from three Federal
funds brokers of recognized standing selected by it.
"Eligible Assignee" means, with respect to any particular
assignment under Section 9.7, any bank or other financial institution
approved in writing by the Company expressly with respect to such
assignment and, except as to such an assignment by JPMorgan so long as
JPMorgan is the Administrative Agent hereunder, the Administrative
Agent as an Eligible Assignee for purposes of this Agreement, provided
that (i) neither the Administrative Agent's nor the Company's approval
shall be unreasonably withheld and (ii) neither the Administrative
Agent's nor the Company's approval shall be required if the assignee is
another Lender or an Affiliate of the assigning Lender.
"EPNGC" has the meaning assigned to such term in the preamble
hereof.
"EPTPC" means
El Paso Tennessee Pipeline Co., a Delaware
corporation.
"EPTPC Facility" means the $3,000,000,000 Revolving Credit and
Competitive Advance Facility Agreement, dated as of November 4, 1996,
among EPTPC, the several financial institutions from time to time
parties thereto, and The Chase Manhattan Bank, as administrative agent
and CAF advance agent thereunder, as the same may be amended, modified
or supplemented from time to time.
"Equity Interests" means any capital stock, partnership, joint
venture, member or limited liability or unlimited liability company
interest, beneficial interest in a trust or similar entity or other
equity interest or investment of whatever nature.
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"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, and the regulations promulgated and
rulings issued from time to time thereunder.
"ERISA Affiliate" means any Person who is a member of the
Company's controlled group within the meaning of Section 4001(a)(14)(A)
of ERISA.
"Eurocurrency Liabilities" has the meaning assigned to that
term in Regulation D of the Board of Governors of the Federal Reserve
System, as in effect from time to time.
"Eurodollar Rate" means, for any Interest Period for each
Eurodollar Rate Advance comprising part of the same Borrowing, an
interest rate per annum equal to the rate which appears 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) as at approximately
11:00 A.M. (London, England time) two Business Days before the first
day of such Interest Period as the rate for Dollar deposits with a
maturity comparable to such Interest Period; provided that if such rate
is not available at such time for any reason, the Eurodollar Rate for
such Borrowing for such Interest Period shall be the interest rate per
annum equal to the average (rounded upward to the nearest whole
multiple of 1/16 of 1% per annum, if such average is not such a
multiple) of the rate per annum at which deposits in Dollars are
offered by the principal office of each of the Reference Lenders in
London, England, to prime banks in the London interbank market as at
approximately 11:00 A.M. (London, England time) two Business Days
before the first day of such Interest Period, in an approximate amount
of each such Reference Lender's share of the relevant Borrowing for the
applicable Interest Period. The Eurodollar Rate for the Interest Period
for each Eurodollar Rate Advance comprising part of the same Borrowing,
when being determined pursuant to the foregoing proviso clause, shall
be determined by the Administrative Agent on the basis of applicable
rates furnished to and received by the Administrative Agent from the
Reference Lenders two Business Days before the first day of such
Interest Period, subject, however, to the provisions of Section 2.13.
"Eurodollar Rate Advance" means an Advance which bears
interest determined by reference to the Eurodollar Rate, as provided in
Section 2.11(a)(ii).
"Eurodollar Reserve Percentage" for any Lender for any
Interest Period for any Eurodollar Rate Advance means the reserve
percentage applicable during such Interest Period under regulations
issued from time to time by the Board of Governors of the Federal
Reserve System (or if more than one such percentage shall be so
applicable, the daily average of such percentages for those days in
such Interest Period during which any such percentage shall be so
applicable) for determining the maximum reserve requirement (including,
but not limited to, any emergency, supplemental or other marginal
reserve requirement) for such Lender with respect to liabilities or
assets consisting of or including Eurocurrency Liabilities having a
term equal to such Interest Period.
"Events of Default" has the meaning assigned to such term in
Section 7.1.
8
"Excluded Acquisition Debt" means (a) Debt, Guaranties or
reimbursement obligations of any Business Entity acquired by the
Company or any of its Subsidiaries and which Debt, Guaranties or
reimbursement obligations exist immediately prior to such acquisition
(provided that (i) such Debt, Guaranties or reimbursement obligations
are not incurred solely in anticipation of such acquisition and (ii)
immediately prior to such acquisition such Business Entity is not a
Subsidiary of the Company), (b) Debt, Guaranties or reimbursement
obligations of EPTPC and its Subsidiaries in existence on the date of
the merger of
El Paso Tennessee Pipeline Company with El Paso Merger
Company or (c) Debt, Guaranties or reimbursement obligations in respect
of any asset acquired by the Company or any of its Subsidiaries and
which Debt, Guaranties or reimbursement obligations existed immediately
prior to such acquisition (provided that (i) such Debt, Guaranties or
reimbursement obligations were not incurred solely in anticipation of
such acquisition and (ii) immediately prior to such acquisition such
asset was not an asset of the Company or any of its Subsidiaries).
"Existing 364-Day Facility" means the $3,000,000,000
364-Day
Revolving Credit and Competitive Advance Facility Agreement dated as of
June 11, 2001, as the same has been or may be amended, supplemented or
otherwise modified prior to the Closing Date, among the Company, EPNGC,
Tennessee the several financial institutions from time to time parties
thereto, The Chase Manhattan Bank, as Administrative Agent and CAF
Advance Agent, Citibank, N.A. and ABN AMRO Bank N.V., as
Co-Documentation Agents and Bank of America, N.A., as Syndication
Agent.
"Exposure" means (a) with respect to an Objecting Lender at
any time, the aggregate outstanding principal amount of its Revolving
Credit Advances and (b) with respect to any other Lender at any time,
the maximum amount of the Commitment of such Lender.
"Extension Request" means each request by the Borrowers made
pursuant to Section 2.23 for the Lenders to extend the Stated
Termination Date, which shall contain the information in respect of
such extension specified in Exhibit M and shall be delivered to the
Administrative Agent in writing.
"Facility Fee Commencement Date" means the date hereof.
"FERC" means the Federal Energy Regulatory Commission, or any
agency or authority of the United States from time to time succeeding
to its function.
"Fixed Rate CAF Advance" means any CAF Advance made pursuant
to a Fixed Rate CAF Advance Request.
"Fixed Rate CAF Advance Request" means any CAF Advance Request
requesting the CAF Advance Lenders to offer to make CAF Advances at a
fixed rate (as opposed to a rate composed of the Applicable LIBO Rate
plus (or minus) a margin).
"GAAP" means generally accepted accounting principles in the
United States of America, as in effect from time to time.
"Guaranty", "Guaranteed" and "Guaranteeing" each means any act
by which any Person assumes, guarantees, endorses or otherwise incurs
direct or contingent liability in
9
connection with, or agrees to purchase or otherwise acquire or
otherwise assures a creditor against loss in respect of, any Debt or
Project Financing of any Person other than the Company or any of its
consolidated Subsidiaries (excluding (a) any liability by endorsement
of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business, (b) any liability in
connection with obligations of the Company, any of its consolidated
Subsidiaries, including obligations under any conditional sales
agreement, equipment trust financing or equipment lease, and (c) any
such act in connection with a Project Financing that either (i)
guarantees to the provider of such Project Financing or any other
Person performance of the acquisition, improvement, installation,
design, engineering, construction, development, completion, maintenance
or operation of, or otherwise affects any such act in respect of, all
or any portion of the project that is financed by such Project
Financing or performance by a Project Financing Subsidiary of certain
obligations to Persons other than the provider of such Project
Financing, except during any period, and then only to the extent, that
such guaranty is a guaranty of payment of such Project Financing (other
than a guaranty of payment of the type referred to in subclause (ii)
below) or (ii) is contingent upon, or the obligation to pay or perform
under which is contingent upon, the occurrence of any event other than
or in addition to the passage of time or any Project Financing becoming
due (any such act referred to in this clause (c) being a "Contingent
Guaranty"); provided, however, that for purposes of this definition the
liability of the Company or any of its Subsidiaries with respect to any
obligation as to which a third party or parties are jointly, or jointly
and severally, liable as a guarantor or otherwise as contemplated
hereby and have not defaulted on its or their portions thereof, shall
be only its pro rata portion of such obligation.
"Indebtedness" of any Person means, without duplication (a)
indebtedness of such Person for borrowed money, (b) obligations of such
Person (other than any portion of any trade payable obligation of such
Person which shall not have remained unpaid for 91 days or more from
the original due date of such portion) to pay the deferred purchase
price of property or services, and (c) obligations of such Person as
lessee under leases which shall have been or should be, in accordance
with GAAP recorded as capital leases, except that where such
indebtedness or obligation of such Person is made jointly, or jointly
and severally, with any third party or parties other than any
consolidated Subsidiary of such Person, the amount thereof for the
purpose of this definition only shall be the pro rata portion thereof
payable by such Person, so long as such third party or parties have not
defaulted on its or their joint and several portions thereof.
"Indemnified Party" means any or all of the Lenders, the
Administrative Agent and the CAF Advance Agent.
"Interest Period" means, for each Eurodollar Rate Advance
comprising part of the same Borrowing, the period beginning on the date
of such Advance or the date of the Conversion of any Advance into such
an Advance and ending on the last day of the period selected by the
applicable Borrower pursuant to the provisions below and, thereafter,
each subsequent period commencing on the last day of the immediately
preceding Interest Period and ending on the last day of the period
selected by the applicable Borrower pursuant to the provisions below.
The duration of each such Interest Period shall be one, two, three or
six months, or, subject to availability to each Lender, nine or twelve
months, in each case as the applicable Borrower may, upon notice
10
received by the Administrative Agent not later than 12:00 noon (
New
York City time) on the third Business Day prior to the first day of
such Interest Period with respect to Eurodollar Rate Advances, select;
provided, however, that:
(a) the duration of any Interest Period which
commences before the first anniversary of the Termination Date
and would otherwise end after the first anniversary of the
Termination Date shall end on the first anniversary of the
Termination Date;
(b) if the last day of such Interest Period would
otherwise occur on a day which is not a Business Day, such
last day shall be extended to the next succeeding Business
Day, except if such extension would cause such last day to
occur in a new calendar month, then such last day shall occur
on the next preceding Business Day;
(c) Interest Periods commencing on the same date for
Advances comprising the same Borrowing shall be of the same
duration;
(d) with respect to Advances made by an Objecting
Lender, no Interest Period with respect to such Advances shall
end after the first anniversary of such Objecting Lender's
Commitment Expiration Date; and
(e) any Interest Period which 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, subject to clause (a)
above, end on the last Business Day of a calendar month.
"Joinder Agreement" means a Joinder Agreement, substantially
in the form of Exhibit J hereto, duly executed and delivered by the
Company and the Borrowing Subsidiary party thereto.
"JPMorgan" means JPMorgan Chase Bank, a
New York banking
corporation.
"Lenders" has the meaning assigned to such term in the
preamble hereof.
"LIBO Rate CAF Advance" means any CAF Advance made pursuant to
a LIBO Rate CAF Advance Request.
"LIBO Rate CAF Advance Request" means any CAF Advance Request
requesting the CAF Advance Lenders to offer to make CAF Advances at an
interest rate equal to the Applicable LIBO Rate plus (or minus) a
margin.
"Lien" means any lien, security interest or other charge or
encumbrance, or any assignment of the right to receive income, or any
other type of preferential arrangement, in each case to secure any
Indebtedness or any Guaranty of any Person.
"Majority Lenders" means Lenders the Commitment Percentages of
which aggregate at least 51%, provided, that at any time after the
Commitment Expiration Date with respect to any Objecting Lender (but
prior to the termination of all the Commitments), "Majority Lenders"
shall mean Lenders whose Exposure aggregates at least 51% of the
aggregate Exposure of all the Lenders.
11
"Margin Stock" means "margin stock" as defined in Regulation U
of the Board of Governors of the Federal Reserve System, as in effect
from time to time.
"Material Adverse Effect" means a material adverse effect on
the financial condition or operations of the Company and its
consolidated Subsidiaries on a consolidated basis.
"Material Subsidiary" means any Subsidiary of the Company
(other than a Project Financing Subsidiary) that itself (on an
unconsolidated, stand-alone basis) owns in excess of 10% of the book
value of the consolidated assets of the Company and its consolidated
Subsidiaries.
"Mojave" means Mojave Pipeline Company.
"Moody's Bond Rating", with respect to any Borrower, means for
any day the Bond Rating of such Borrower, if any, established by
Xxxxx'x Investors Service, Inc. as in effect at 11:00 A.M.,
New York
City time, on such day.
"Multiemployer Plan" means a "multiemployer plan" as defined
in Section 4001(a)(3) of ERISA to which the Company or any ERISA
Affiliate is making or accruing an obligation to make contributions, or
has within any of the preceding five plan years made or accrued an
obligation to make contributions and in respect of which the Company or
an ERISA Affiliate has any liability (contingent or otherwise), such
plan being maintained pursuant to one or more collective bargaining
agreements.
"Multiple Employer Plan" means a single employer plan, as
defined in Section 4001(a)(15) of ERISA, which (a) is maintained for
employees of the Company or an ERISA Affiliate and at least one Person
other than the Company and its ERISA Affiliates or (b) was so
maintained and in respect of which the Company or an ERISA Affiliate
could have liability under Section 4064 or 4069 of ERISA in the event
such plan has been or were to be terminated.
"Net Worth" means, as of any date of determination, the sum of
the preferred stock and stockholders' equity of the Company as shown on
the most recent consolidated balance sheet of the Company delivered
pursuant to Section 5.3 plus the cumulative amount by which
stockholders' equity of the Company shall have been reduced by reason
of non-cash write-downs of long term assets from and after the
Effective Date.
"Note" has the meaning assigned to such term in Section
2.3(d).
"Notice of Borrowing" has the meaning specified in Section
2.2(a).
"Obligations" means the collective reference to the unpaid
principal of and interest on the Advances and the Notes and all other
financial liabilities of the Borrowers to the Administrative Agent, the
CAF Advance Agent and the Lenders (including interest accruing at the
then applicable rate provided in this Agreement after the maturity of
the Advances and interest accruing at the then applicable rate provided
in this Agreement after the filing of any petition in bankruptcy, or
the commencement of any insolvency, reorganization or like proceeding,
relating to any Borrower whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding), whether direct
or
12
indirect, absolute or contingent, due or to become due, or now existing
or hereafter incurred, which may arise under, out of, or in connection
with, this Agreement or the Notes, in each case whether on account of
principal, interest, reimbursement obligations, fees, indemnities,
costs, expenses or otherwise (including all fees and disbursements of
counsel to the Administrative Agent, the CAF Advance Agent or to the
Lenders that are required to be paid by any Borrower pursuant to this
Agreement).
"Objecting Lenders" has the meaning assigned to such term in
Section 2.23(a).
"Other Taxes" has the meaning assigned to such term in Section
2.20(b).
"Party" has the meaning assigned to such term in Section 9.8.
"PBGC" means the Pension Benefit Guaranty Corporation (or any
successor).
"Permitted Claims" has the meaning assigned to such term in
Section 9.9(a).
"Permitted Liens" means:
(i) inchoate Liens and charges imposed by law and incidental
to construction, maintenance, development or operation of properties,
or the operation of business, in the ordinary course of business if
payment of the obligation secured thereby is not yet overdue or if the
validity or amount of which is being contested in good faith by the
Company or any of its Subsidiaries;
(ii) Liens for taxes, assessments, obligations under workers'
compensation or other social security legislation or other governmental
requirements, charges or levies, in each case not yet overdue;
(iii) Liens reserved in any oil, gas or other mineral lease
entered into in the ordinary course of business for rent, royalty or
delay rental under such lease and for compliance with the terms of such
lease;
(iv) easements, servitudes, rights-of-way and other rights,
exceptions, reservations, conditions, limitations, covenants and other
restrictions that do not materially interfere with the operation, value
or use of the properties affected thereby;
(v) conventional provisions contained in any contracts or
agreements affecting properties under which the Company or any of its
Subsidiaries is required immediately before the expiration, termination
or abandonment of a particular property to reassign to such Person's
predecessor in title all or a portion of such Person's rights, titles
and interests in and to all or portion of the such property;
(vi) any Lien reserved in a grant or conveyance in the nature
of a farm-out or conditional assignment to the Company or any of its
Subsidiaries entered into in the ordinary course of business on
reasonable terms to secure undertakings of the Company or any such
Subsidiary in such grant or conveyance;
(vii) any Lien consisting of (A) statutory landlord's liens
under leases to which the Company or any of its Subsidiaries is a party
or other Liens on leased property reserved in leases thereof for rent
or for compliance with the terms of such leases, (B)
13
rights reserved to or vested in any municipality or governmental,
statutory or public authority to control or regulate any property of
the Company or any of its Subsidiaries, or to use such property in any
manner which does not materially impair the use of such property for
the purposes for which it is held by the Company or any such
Subsidiary, (C) obligations or duties to any municipality or public
authority with respect to any franchise, grant, license, lease or
permit and the rights reserved or vested in any governmental authority
or public utility to terminate any such franchise, grant, license,
lease or permit or to condemn or expropriate any property, and (D)
zoning laws and ordinances and municipal regulations;
(viii) any Lien on any assets (including Equity Interests and
other obligations) securing Indebtedness or other obligations incurred
or assumed for the purpose of financing all or any part of the cost of
acquiring, improving, installing, designing, engineering, developing
(including drilling), or constructing such assets, provided that such
Lien attaches to such assets concurrently with or within 365 days after
the acquisition or completion of development, construction or
installation thereof or improvement thereto; and
(ix) the creation of interests in property of the character
commonly referred to as a "royalty interest" or "overriding royalty
interest", production payments, farmouts, leases, subleases, rights of
way and other easements, participations, joint venture, joint
operating, unitization, pooling and communitization agreements, or
other similar transactions in the ordinary course of business.
"Person" means an individual, a Business Entity, or a country
or any political subdivision thereof or any agency or instrumentality
of such country or subdivision.
"Plan" means a Single Employer Plan or a Multiple Employer
Plan.
"Prime Rate" means the rate of interest per annum publicly
announced from time to time by JPMorgan as its prime rate in effect at
its principal office in
New York City. The Prime Rate is not intended
to be the lowest rate of interest charged by JPMorgan in connection
with extensions of credit to debtors.
"Principal Subsidiary" means, at any time, any Subsidiary of
the Company (other than a Project Financing Subsidiary) either (a)
having assets that are, or owning Subsidiaries with assets that
together with its assets are, at such time greater than or equal to 5%
of the consolidated assets of the Company and its consolidated
Subsidiaries at such time or (b) constituting a Borrowing Subsidiary.
"Process Agent" has the meaning specified in Section 9.9(a).
"Project Financing" means any Indebtedness incurred to finance
or refinance the acquisition, improvement, installation, design,
engineering, construction, development, completion, maintenance or
operation of, or otherwise in respect of, all or any portion of any
project, or any asset related thereto, and any Guaranty with respect
thereto, other than any portion of such Indebtedness or Guaranty
permitting or providing for recourse against the Company or any of its
Subsidiaries other than (a) recourse to the Equity Interests in,
Indebtedness or other obligations of, or assets of, one or more Project
Financing Subsidiaries, and (b) such recourse as exists under any
Contingent Guaranty.
14
"Project Financing Subsidiary" means any Subsidiary of the
Company whose principal purpose is to incur Project Financing, or to
become a direct or indirect partner, member or other equity participant
or owner in a Business Entity so created, and substantially all the
assets of which Subsidiary or Business Entity are limited to those
assets being financed (or to be financed), or the operation of which is
being financed (or to be financed), in whole or in part by a Project
Financing or to Equity Interests in, or Indebtedness or other
obligations of, one or more other such Subsidiaries or Business
Entities or to Indebtedness or other obligations of the Company or its
Subsidiaries or other Persons.
"Rating Agency" means any of Xxxxx'x Investors Service, Inc.
and Standard & Poor's Ratings Group; collectively the "Rating
Agencies".
"Receivables Purchase and Sale Agreement" means the collective
reference to (a) the Receivables Purchase and Sale Agreement dated as
of January 14, 1992 among EPNGC, XXXXXX X.X., a New York limited
partnership, Corporate Asset Funding Company, a Delaware corporation
and Citicorp North America, Inc., as agent, as amended as of the date
hereof, and (b) the Amended and Restated Receivables Sale Agreement
dated as of December 31, 1996 among El Paso Energy Credit Corporation,
Asset Securitization Cooperative Corporation and Canadian Imperial Bank
of Commerce, as administrative agent, as such Agreement may be amended,
supplemented, restated or otherwise modified from time to time,
provided that no such amendment, supplement, restatement or
modification shall change the scope of such Agreement from that of a
receivables securitization transaction.
"Reference Lenders" means JPMorgan, Bank of America, N.A.,
Citibank, N.A. and ABN AMRO Bank N.V.
"Register" has the meaning specified in Section 9.7(c).
"Required Lenders" means Lenders (a) that are not Objecting
Lenders with respect to any previous Extension Request and (b) that
have Commitment Percentages aggregating at least 66-2/3% of the
aggregate Commitment Percentages of such non-Objecting Lenders.
"Revolving Credit Advances" has the meaning assigned to such
term in Section 2.1.
"S&P Bond Rating", with respect to any Borrower, means for any
day the Bond Rating of such Borrower, if any, established by Standard &
Poor's Ratings Group as in effect at 11:00 A.M., New York City time, on
such day.
"Single Employer Plan" means a single employer plan, as
defined in Section 4001(a)(15) of ERISA, that (a) is maintained for
employees of the Company or an ERISA Affiliate and no Person other than
the Company and its ERISA Affiliates or (b) was so maintained and in
respect of which the Company or an ERISA Affiliate could have liability
under Section 4069 of ERISA in the event such plan has been or were to
be terminated.
15
"Stated Termination Date" means May 14, 2003 or such later
date as shall be determined pursuant to the provisions of Section 2.23
with respect to non-Objecting Lenders.
"Subsidiary" means, as to any Person, any Business Entity of
which shares of stock or other Equity Interests having ordinary voting
power (other than stock or such other Equity Interests having such
power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such Business
Entity are at the time owned, directly or indirectly through one or
more Subsidiaries, 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 Company.
"Taxes" has the meaning assigned to such term in Section
2.20(a).
"Tennessee" has the meaning assigned to such term in the
preamble hereof, and its successors.
"Termination Date" means the earlier of (a) the Stated
Termination Date and (b) the date of termination in whole of the
Commitments pursuant to Section 2.9 or 7.1.
"Termination Event" means (a) a "reportable event," as such
term is described in Section 4043 of ERISA (other than a "reportable
event" not subject to the provision for 30-day notice to the PBGC under
subsection .11, .12, .13, .14, .16, .18, .19 or .20 of PBGC Reg.
Section 2615), or an event described in Section 4062(e) of ERISA, or
(b) the withdrawal of the Company or any ERISA Affiliate from a
Multiple Employer Plan during a plan year in which it was a
"substantial employer," as such term is defined in Section 4001(a)(2)
of ERISA or the incurrence of liability by the Company or any ERISA
Affiliate under Section 4064 of ERISA upon the termination of a
Multiple Employer Plan, or (c) the filing of a notice of intent to
terminate a Plan or the treatment of a Plan amendment as a termination
under Section 4041 of ERISA, or (d) the institution of proceedings to
terminate a Plan by the PBGC under Section 4042 of ERISA, or (e) the
conditions set forth in Section 302(f)(1)(A) and (B) of ERISA to the
creation of a lien upon property or rights to property of the Company
or any ERISA Affiliate for failure to make a required payment to a Plan
are satisfied, or (f) the adoption of an amendment to a Plan requiring
the provision of security to such Plan, pursuant to Section 307 of
ERISA, or (g) the occurrence of any other event or the existence of any
other condition which would reasonably be expected to result in the
termination of, or the appointment of a trustee to administer, any Plan
under Section 4042 of ERISA.
"Type" means (a) as to any Revolving Credit Advance, its
nature as a Base Rate Advance or a Eurodollar Rate Advance and (b) as
to any CAF Advance, its nature as a Fixed Rate CAF Advance or a LIBO
Rate CAF Advance.
"Withdrawal Liability" has the meaning given such term under
Part 1 of Subtitle E of Title IV of ERISA.
SECTION 1.2. Computation of Time Periods. Unless otherwise
stated in this Agreement, in the computation of a period of time from a
specified date to a later specified date,
16
the word "from" means "from and including" and the words "to" and "until" each
means "to but excluding."
SECTION 1.3. Accounting Terms. All accounting terms not
specifically defined herein shall be construed in accordance with GAAP either
(a) consistent with those principles applied in the preparation of the financial
statements referred to in Section 4.1(e) or (b) not so materially inconsistent
with such principles that a covenant contained in Section 5.1 or 5.2 would be
calculated or construed in a materially different manner or with materially
different results than if such covenant were calculated or construed in
accordance with clause (a) of this Section 1.3. "Include", "includes" and
"including" shall be deemed to be followed by "without limitation" whether or
not they are in fact followed by such words or words of like import. References
to any agreement or contract are to such agreement or contract as amended,
modified or supplemented from time to time in accordance with the terms hereof
and thereof.
SECTION 1.4. References. 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 Article, Section, Schedule and Exhibit references are to this
Agreement unless otherwise specified.
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.1. The Revolving Credit Advances. Each Lender
severally agrees, on the terms and conditions hereinafter set forth, to make
revolving credit advances ("Revolving Credit Advances") to the Borrowers or any
one or more of them from time to time on any Business Day during the period from
the date hereof to and including the Termination Date in an aggregate amount not
to exceed at any time outstanding the amount of such Lender's Commitment;
provided that the aggregate amount of the Advances (other than Advances of
Objecting Lenders) outstanding shall not at any time exceed the aggregate amount
of the Commitments. Each Borrowing shall be in an aggregate amount of $5,000,000
in the case of a Borrowing comprised of Base Rate Advances and $20,000,000 in
the case of a Borrowing comprised of Eurodollar Rate Advances, or, in each case,
an integral multiple of $1,000,000 in excess thereof (or, in the case of a
Borrowing of Base Rate Advances, the aggregate unused Commitments, if less) and
shall consist of Revolving Credit Advances of the same Type made on the same day
by the Lenders ratably according to their respective Commitments. Within the
limits of each Lender's Commitment, any Borrower may make more than one
Borrowing on any Business Day and may borrow, repay pursuant to Section 2.10 or
prepay pursuant to Section 2.15, and reborrow under this Section 2.1.
SECTION 2.2. Making the Revolving Credit Advances. (a) Each
Borrowing of Revolving Credit Advances shall be made on notice by the Company on
its own behalf or the Company on behalf of another Borrower, to the
Administrative Agent (a "Notice of Borrowing") received by the Administrative
Agent, (i) in the case of a proposed Borrowing comprised of Base Rate Advances,
not later than 10:00 A.M. (New York City time) on the Business Day of such
proposed Borrowing and (ii) in the case of a proposed Borrowing comprised of
Eurodollar Rate Advances, not later than 12:00 noon (New York City time) on the
third Business Day prior to the date of such proposed Borrowing. Each Notice of
Borrowing shall be by telecopy or telephone (and if by telephone, confirmed
promptly by telecopier), in substantially the form of Exhibit B,
17
specifying therein the requested (A) Borrower, (B) date of such Borrowing, (C)
Type of Revolving Credit Advances comprising such Borrowing, (D) aggregate
amount of such Borrowing, and (E) in the case of a Borrowing comprised of
Eurodollar Rate Advances, the initial Interest Period for each such Advance.
Each Lender shall, before 1:00 P.M. (New York City time) on the date of such
Borrowing, make available to the Administrative Agent at its address at 000 Xxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx, 00000, Reference: El Paso Corporation, or at such
other address designated by notice from the Administrative Agent to the Lenders
pursuant to Section 9.2, in same day funds, such Lender's ratable portion of
such Borrowing. Immediately after the Administrative Agent's receipt of such
funds and upon fulfillment of the applicable conditions set forth in Article
III, the Administrative Agent will make such funds available to the applicable
Borrower at JPMorgan, 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, 00000, Account No.
323291503, Reference: El Paso Corporation, or at such other account of the
applicable Borrower maintained by the Administrative Agent (or any successor
Administrative Agent) designated by the applicable Borrower and agreed to by the
Administrative Agent (or such successor Administrative Agent), in same day
funds.
(b) Each Notice of Borrowing shall be irrevocable and binding
on the applicable Borrower. In the case of any Borrowing which the related
Notice of Borrowing specified is to be comprised of Eurodollar Rate Advances, if
such Advances are not made as a result of any failure to fulfill on or before
the date specified for such Borrowing the applicable conditions set forth in
Article III, the applicable Borrower shall indemnify each Lender against any
loss, cost or expense incurred by such Lender as a result of such failure,
including, any loss, cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to fund the
Advance to be made by such Lender as part of such Borrowing.
(c) Unless the Administrative Agent shall have received notice
from a Lender prior to the date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender's ratable portion of such
Borrowing, the Administrative Agent may assume that such Lender has made such
portion available to the Administrative Agent on the date of such Borrowing in
accordance with subsection (a) of this Section 2.2 and the Administrative Agent
may, in reliance upon such assumption, make available to the applicable Borrower
on such date a corresponding amount. If and to the extent such Lender shall not
have so made such ratable portion available to the Administrative Agent, such
Lender and the applicable Borrower severally agree to repay to the
Administrative Agent forthwith on demand such corresponding amount together with
interest thereon, for each day from the date such amount is made available to
the applicable Borrower until the date such amount is repaid to the
Administrative Agent, at the Effective Federal Funds Rate for such day. If such
Lender shall repay to the Administrative Agent such corresponding amount, such
amount so repaid shall constitute such Lender's Advance to the applicable
Borrower as part of such Borrowing for purposes of this Agreement.
(d) The failure of any Lender to make the Advance to be made
by it as part of any Borrowing shall not relieve any other Lender of its
obligation, if any, hereunder to make its Advance on the date of such Borrowing,
but no Lender shall be responsible for the failure of any other Lender to make
the Advance to be made by such other Lender on the date of any Borrowing.
SECTION 2.3. Evidence of Debt. (a) Each Lender shall maintain
in accordance with its usual practice an account or accounts evidencing
indebtedness of each Borrower to such Lender resulting from each Revolving
Credit Advance of such Lender to such Borrower from
18
time to time, including the amounts of principal and interest payable and paid
to such Lender from time to time in respect of such Revolving Credit Advance.
(b) The Administrative Agent shall maintain the Register
pursuant to Section 9.7(c), and a subaccount therein for each Lender, in which
shall be recorded (i) the amount of each Revolving Credit Advance 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 each Borrower on account of such Revolving Credit Advance to each
Lender hereunder and (iii) both the amount of any sum received by the
Administrative Agent hereunder from each Borrower and each Lender's share
thereof.
(c) The entries made in the Register and the accounts of each
Lender maintained pursuant to Section 2.3(a) shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of each Borrower therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain the Register or
any such account, or any error therein, shall not in any manner affect the
obligation of each Borrower to repay (with applicable interest) the Revolving
Credit Advances made to each such Borrower by such Lender in accordance with the
terms of this Agreement.
(d) Each Borrower agrees that, upon the request to the
Administrative Agent by any Lender, such Borrower will execute and deliver to
such Lender a promissory note of such Borrower evidencing the Revolving Credit
Advances of such Lender to such Borrower, substantially in the form of Exhibit A
with appropriate insertions as to date and principal amount (a "Note").
SECTION 2.4. CAF Advances. Subject to the terms and conditions
of this Agreement, the Borrowers or any one or more of them may borrow CAF
Advances from time to time during the CAF Advance Availability Period on any
Business Day. The Company shall, in consultation with the CAF Advance Agent,
designate Lenders from time to time as CAF Advance Lenders by written notice to
the CAF Advance Agent. The CAF Advance Agent shall transmit each such notice of
designation promptly to each designated CAF Advance Lender. CAF Advances shall
be borrowed in amounts such that the aggregate amount of Advances outstanding at
any time shall not exceed the aggregate amount of the Commitments at such time.
Any CAF Advance Lender may make CAF Advances in amounts which, individually and
together with the aggregate amount of other Advances of such CAF Advance Lender,
exceed such CAF Advance Lender's Commitment, and such CAF Advance Lender's CAF
Advances shall not be deemed to utilize such CAF Advance Lender's Commitment.
Within the limits and on the conditions hereinafter set forth with respect to
CAF Advances, the Borrowers from time to time may borrow, repay and reborrow CAF
Advances.
SECTION 2.5. Procedure for CAF Advance Borrowings. (a) A
Borrower, or the Company on behalf of a Borrower, shall request CAF Advances by
delivering a CAF Advance Request to the CAF Advance Agent, not later than 12:00
Noon (New York City time) four Business Days prior to the date of the proposed
Borrowing (in the case of a LIBO Rate CAF Advance Request), and not later than
10:00 A.M. (New York City time) one Business Day prior to the date of the
proposed Borrowing (in the case of a Fixed Rate CAF Advance Request). Each CAF
Advance Request may solicit bids for CAF Advances 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 five alternative maturity dates. The maturity date for
each CAF Advance shall be not less than 7 days nor more than 360 days after the
date of the Borrowing therefor (and in any event shall be
19
not later than the Stated Termination Date); provided that each LIBO Rate CAF
Advance shall mature one, two, three or six months or, if available, nine or
twelve months after the date of the Borrowing therefor. The CAF Advance Agent
shall notify each CAF Advance Lender promptly by telecopy of the contents of
each CAF Advance Request received by the CAF Advance Agent.
(b) In the case of a LIBO Rate CAF Advance Request, upon
receipt of notice from the CAF Advance Agent of the contents of such CAF Advance
Request, each CAF Advance Lender may elect, in its sole discretion, to offer
irrevocably to make one or more CAF Advances at the Applicable LIBO Rate plus
(or minus) a margin determined by such CAF Advance 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 CAF Advance Agent, before 10:30 A.M. (New
York City time) on the day that is three Business Days before the date of the
proposed Borrowing, setting forth:
(i) the maximum amount of CAF Advances for each
maturity date and the aggregate maximum amount of CAF Advances for all
maturity dates which such CAF Advance Lender would be willing to make
(which amounts may, subject to Section 2.4, exceed such CAF Advance
Lender's Commitment); and
(ii) the margin above or below the Applicable LIBO
Rate at which such CAF Advance Lender is willing to make each such CAF
Advance.
The CAF Advance Agent shall advise the Company and the applicable Borrower
before 11:00 A.M. (New York City time) on the date which is three Business Days
before the proposed date of the Borrowing of the contents of each such CAF
Advance Offer received by it. If the CAF Advance Agent, in its capacity as a CAF
Advance Lender, shall elect, in its sole discretion, to make any such CAF
Advance Offer, it shall advise the Company and the applicable 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 date of the Borrowing.
(c) In the case of a Fixed Rate CAF Advance Request, upon
receipt of notice from the CAF Advance Agent of the contents of such CAF Advance
Request, each CAF Advance 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 CAF Advance 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
CAF Advance Agent before 9:30 A.M. (New York City time) on the proposed date of
the Borrowing, setting forth:
(i) the maximum amount of CAF Advances for each
maturity date, and the aggregate maximum amount for all maturity dates,
which such CAF Advance Lender would be willing to make (which amounts
may, subject to Section 2.4, exceed such CAF Advance Lender's
Commitment); and
(ii) the rate of interest at which such CAF Advance
Lender is willing to make each such CAF Advance.
The CAF Advance Agent shall advise the Company and the applicable Borrower
before 10:00 A.M. (New York City time) on the proposed date of the Borrowing of
the contents of each such CAF Advance Offer received by it. If the CAF Advance
Agent, in its capacity as a CAF Advance Lender, shall elect, in its sole
discretion, to make any such CAF Advance Offer, it shall
20
advise the Company and the applicable Borrower of the contents of its CAF
Advance Offer before 9:15 A.M. (New York City time) on the proposed date of the
Borrowing.
(d) Before 11:30 A.M. (New York City time) three Business Days
before the proposed date of the Borrowing (in the case of CAF Advances requested
by a LIBO Rate CAF Advance Request) and before 10:30 A.M. (New York City time)
on the proposed date of the Borrowing (in the case of CAF Advances requested by
a Fixed Rate CAF Advance Request), the Company, in its absolute discretion,
shall:
(i) cancel such CAF Advance Request by giving the CAF
Advance Agent telephone notice to that effect, or
(ii) by giving telephone notice to the CAF Advance
Agent (immediately confirmed by delivery to the CAF Advance Agent of a
CAF Advance Confirmation in writing or by telecopy) (A) subject to the
provisions of Section 2.5(e), accept one or more of the offers made by
any CAF Advance Lender or CAF Advance Lenders pursuant to Section
2.5(b) or Section 2.5(c), as the case may be, of the amount of CAF
Advances for each relevant maturity date and (B) reject any remaining
offers made by CAF Advance Lenders pursuant to Section 2.5(b) or
Section 2.5(c), as the case may be.
(e) The Company's acceptance of CAF Advances in response to
any CAF Advance Request shall be subject to the following limitations:
(i) the amount of CAF Advances accepted for each
maturity date specified by any CAF Advance Lender in its CAF Advance
Offer shall not exceed the maximum amount for such maturity date
specified in such CAF Advance Offer;
(ii) the aggregate amount of CAF Advances accepted
for all maturity dates specified by any CAF Advance Lender in its CAF
Advance Offer shall not exceed the aggregate maximum amount specified
in such CAF Advance Offer for all such maturity dates;
(iii) the Company may not accept offers for CAF
Advances for any 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 Company accepts any of such offers, it
must accept offers based solely upon pricing for such relevant maturity
date and upon no other criteria whatsoever and if two or more CAF
Advance Lenders submit offers for any maturity date at identical
pricing and the Company accepts any of such offers but does not wish to
(or by reason of the limitations set forth in Section 2.4 or in Section
2.5(e)(iii), cannot) borrow the total amount offered by such CAF
Advance Lenders with such identical pricing, the Company shall accept
offers from all of such CAF Advance Lenders in amounts allocated among
them pro rata according to the amounts offered by such CAF Advance
Lenders (or as nearly pro rata as shall be practicable after giving
effect to the requirement that CAF Advances made by a CAF Advance
Lender on a date of the Borrowing for each relevant maturity date shall
be in a principal amount of $5,000,000 or an integral multiple of
$1,000,000 in excess thereof; provided that if the number of CAF
Advance Lenders that submit offers for any maturity date at identical
pricing is such that,
21
after the Company accepts such offers pro rata in accordance with the
foregoing, the CAF Advance to be made by such CAF Advance Lenders would
be less than $5,000,000 principal amount, the number of such CAF
Advance Lenders shall be reduced by the CAF Advance Agent by lot until
the CAF Advances to be made by such remaining CAF Advance Lenders would
be in a principal amount of $5,000,000 or an integral multiple of
$1,000,000 in excess thereof).
(f) If the Company notifies the CAF Advance Agent that a CAF
Advance Request is cancelled pursuant to Section 2.5(d)(i), the CAF Advance
Agent shall give prompt telephone notice thereof to the CAF Advance Lenders.
(g) If the Company accepts pursuant to Section 2.5(d)(ii) one
or more of the offers made by any CAF Advance Lender or CAF Advance Lenders, the
CAF Advance Agent promptly shall notify each CAF Advance Lender which has made
such a CAF Advance Offer of (i) the aggregate amount of such CAF Advances to be
made on such Borrowing Date for each maturity date and (ii) the acceptance or
rejection of any offers to make such CAF Advances made by such CAF Advance
Lender. Before 1:00 P.M. (New York City time) on the date of the Borrowing
specified in the applicable CAF Advance Request, each CAF Advance Lender whose
CAF Advance Offer has been accepted shall make available to the Administrative
Agent at its office set forth in Section 9.2 the amount of CAF Advances to be
made by such CAF Advance Lender, in same day funds. The Administrative Agent
will make such funds available to the applicable Borrower as soon as practicable
on such date at the Administrative Agent's aforesaid address. As soon as
practicable after each Borrowing Date, the CAF Advance Agent shall notify each
Lender of the aggregate amount of CAF Advances advanced on such Borrowing Date
and the respective maturity dates thereof.
(h) The failure of any CAF Advance Lender to make the CAF
Advance to be made by it as part of any Borrowing shall not relieve any other
Lender of its obligation, if any, hereunder to make its CAF Advance on the date
of such Borrowing, but no CAF Lender shall be responsible for the failure of any
other CAF Advance Lender to make the CAF Advance to be made by such CAF Advance
Lender on the date of any Borrowing.
(i) 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
five CAF Advance Maturity Dates. No CAF Advance Request may be submitted earlier
than five Business Days after submission of any other CAF Advance Request.
SECTION 2.6. CAF Advance Payments. (a) The applicable Borrower
shall repay to the Administrative Agent, for the account of each CAF Advance
Lender which has made a CAF Advance to it, on the applicable CAF Advance
Maturity Date the then unpaid principal amount of such CAF Advance. The
Borrowers shall not have the right to prepay any principal amount of any CAF
Advance.
(b) The applicable Borrower shall pay interest on the unpaid
principal amount of each CAF Advance to it from the date of the Borrowing to the
applicable CAF Advance Maturity Date at the rate of interest specified in the
CAF Advance Offer accepted by the applicable 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.
22
(c) If all or a portion of the principal amount of any CAF
Advance shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue principal amount 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 1% above the
rate which would otherwise be applicable pursuant to such CAF Advance until the
stated maturity date of such CAF Advance, and for each day thereafter at a rate
per annum which is 2% above the Base Rate, 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.
SECTION 2.7. Evidence of Debt. Each Lender shall maintain in
accordance with its usual practice appropriate records evidencing indebtedness
of each Borrower to such Lender resulting from each CAF Advance of such Lender
to such Borrower 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
Section 9.7(c) and a record therein for each Lender, in which shall be recorded
(i) the amount of each CAF Advance made by such Lender to each Borrower, 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 a Borrower on account of
such CAF Advance. The entries made in the Register and the records of each
Lender maintained pursuant to this Section 2.7 shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of each 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 each Borrower to repay (with applicable interest) the CAF Advances
made by such Lender in accordance with the terms of this Agreement.
SECTION 2.8. Fees. (a) The Company agrees to pay to the
Administrative Agent for the account of each Lender a facility fee for the
period from and including the Facility Fee Commencement Date until all Advances
have been paid in full and all Commitments have been terminated, computed at a
variable rate per annum on the average daily amount of the greater of (i) the
Commitment of such Lender and (ii) the outstanding principal amount of Revolving
Credit Advances of such Lender during the period for which payment is made,
which rate will vary according to the S&P Bond Rating for the Company and the
Xxxxx'x Bond Rating for the Company as follows:
Bond Rating Facility
(S&P/Xxxxx'x) Level Fee Rate
------------- ----- --------
A/A2 or higher I .080%
A-/A3 II .090%
BBB+/Baa1 III .100%
BBB/Baa2 IV .125%
BBB-/Baa3 V .200%
BB+/Ba1 or lower VI .250%;
provided that (i) if the Bond Ratings of the Company do not fall within the same
Level, the rate applicable to such day will be the percentage opposite the Bond
Rating that is at the higher Level (Level I being the highest and Level VI being
the lowest), (ii) in the event a Bond Rating for the
23
Company is not available from one of the Rating Agencies, the rate shall be
based on the Bond Rating of the other Rating Agency, and (iii) in the event a
Bond Rating for the Company is available from none of the Rating Agencies, the
rate will be the percentage opposite Level VI. Such facility fees shall be
payable quarterly in arrears on the last day of each March, June, September and
December and on the Termination Date or such earlier date on which the
Commitments shall terminate as provided herein, and, if the Lender is an
Objecting Lender, on the Commitment Expiration Date applicable to such Lender
and on the first anniversary of the Termination Date (or if the Lender is an
Objecting Lender, the first anniversary of the Commitment Expiration Date
applicable to such Lender) or such earlier date on which the Advances are repaid
in full, commencing on the first of such dates to occur after the date hereof.
(b) The Company agrees to pay to X.X. Xxxxxx Securities Inc.,
the Administrative Agent and the CAF Advance Agent the fees set forth in the
letter, dated as of April 11, 2002 from X.X. Xxxxxx Securities Inc. and JPMorgan
to the Company.
SECTION 2.9. Reduction of the Commitments. The Company shall
have the right, upon at least three Business Days' notice to the Administrative
Agent, to terminate in whole or reduce ratably in part the unused portions of
the respective Commitments of the Lenders, provided that each partial reduction
shall be in the aggregate amount of $10,000,000 or any whole multiple of
$1,000,000 in excess thereof.
SECTION 2.10. Repayment of Advances. The Borrowers shall repay
to each Lender on the first anniversary of the Termination Date the aggregate
principal amount of the Advances then owing to such Lender; provided that the
Revolving Credit Advances made by Objecting Lenders shall be repaid as provided
in Section 2.23.
SECTION 2.11. Interest on Revolving Credit Advances. (a)
Ordinary Interest. Each Borrower shall pay interest on the unpaid principal
amount of each Revolving Credit Advance of such Borrower owing to each Lender
from the date of such Advance until such principal amount is due (whether at
stated maturity, by acceleration or otherwise), at the following rates:
(i) Base Rate Advances. During such periods as such
Advance is a Base Rate Advance, a rate per annum equal at all times to
the Base Rate in effect from time to time, payable quarterly in arrears
on the last day of each March, June, September and December during such
periods and on the date such Base Rate Advance shall be Converted or
due (whether at stated maturity, by acceleration or otherwise).
(ii) Eurodollar Rate Advances. During such periods as
such Advance is a Eurodollar Rate Advance, at a rate per annum equal at
all times during each Interest Period for such Advance to the sum of
the Eurodollar Rate for such Interest Period plus the Applicable
Eurodollar Rate Margin in effect from time to time, payable on the last
day of each such Interest Period and, if any such Interest Period has a
duration of more than three months, on each day which occurs during
such Interest Period every three months from the first day of such
Interest Period, and on the date such Advance shall be Converted or due
(whether at stated maturity, by acceleration or otherwise).
(b) Default Interest. The applicable Borrower shall pay
interest on the unpaid principal amount of each Revolving Credit Advance to it
that is not paid when due (whether at stated maturity, by acceleration or
otherwise) from the date on which such amount is due until
24
such amount is paid in full, payable on demand, at a rate per annum equal at all
times (i) from such due date to the last day of the then existing Interest
Period in the case of each Eurodollar Rate Advance, to 1% per annum above the
interest rate per annum required to be paid on such Advance immediately prior to
the date on which such amount became due, and (ii) from and after the last day
of the then existing Interest Period, and at all times in the case of any Base
Rate Advance, to 1% per annum above the Base Rate in effect from time to time.
SECTION 2.12. Additional Interest on Eurodollar Rate Advances.
If any Lender shall determine in good faith that reserves under regulations of
the Board of Governors of the Federal Reserve System are required to be
maintained by it in respect of, or a portion of its costs of maintaining
reserves under such regulations is properly attributable to, one or more of its
Eurodollar Rate Advances, the applicable Borrower shall pay to such Lender
additional interest on the unpaid principal amount of each such Eurodollar Rate
Advance to it (other than any such additional interest accruing to a particular
Lender in respect of periods prior to the 30th day preceding the date notice of
such interest is given by such Lender as provided in this Section 2.12), payable
on the same day or days on which interest is payable on such Advance, at an
interest rate per annum equal at all times during each Interest Period for such
Advance to the excess of (i) the rate obtained by dividing the Eurodollar Rate
for such Interest Period by a percentage equal to 100% minus the Eurodollar
Reserve Percentage, if any, for such Lender for such Interest Period over (ii)
the Eurodollar Rate for such Interest Period. The amount of such additional
interest (if any) shall be determined by each Lender, and such Lender shall
furnish written notice of the amount of such additional interest to the Company
and the Administrative Agent, which notice shall be conclusive and binding for
all purposes, absent manifest error.
SECTION 2.13. Interest Rate Determination. (a) Each Reference
Lender agrees to furnish to the Administrative Agent timely information for the
purpose of determining the Eurodollar Rate. If any one or more of the Reference
Lenders shall not furnish such timely information to the Administrative Agent
for the purpose of determining any such interest rate, the Administrative Agent
shall determine such interest rate on the basis of timely information furnished
by the remaining Reference Lenders.
(b) The Administrative Agent shall give prompt notice to the
Company and the Lenders of the applicable interest rate determined by the
Administrative Agent for purposes of Section 2.11(a)(i) or (ii), and the
applicable rate, if any, furnished by each Reference Lender for the purpose of
determining the applicable interest rate under Section 2.11(a)(ii).
(c) If fewer than two Reference Lenders furnish timely
information to the Administrative Agent for determining the Eurodollar Rate for
any Eurodollar Rate Advances,
(i) the Administrative Agent shall give the Company
and each Lender prompt notice thereof by telephone (confirmed in
writing) that the interest rate cannot be determined for such
Eurodollar Rate Advances,
(ii) each such Advance will automatically, on the
last day of the then existing Interest Period therefor, Convert into a
Base Rate Advance (or if such Advance is then a Base Rate Advance, will
continue as a Base Rate Advance), and
(iii) the obligations of the Lenders to make, or to
Convert Advances into, Eurodollar Rate Advances shall be suspended
until the Administrative Agent shall
25
notify the Company and the Lenders that the circumstances causing such
suspension no longer exist.
(d) If, with respect to any Eurodollar Rate Advances, the
Majority Lenders determine and give notice to the Administrative Agent that, as
a result of conditions in or generally affecting the London interbank eurodollar
market, the rates of interest determined on the basis of the Eurodollar Rate for
any Interest Period for such Advances will not adequately reflect the cost to
such Majority Lenders of making, funding or maintaining their respective
Eurodollar Rate Advances for such Interest Period, the Administrative Agent
shall forthwith so notify the Company and the Lenders, whereupon,
(i) each such Advance will automatically, on the last
day of the then existing Interest Period therefor, Convert into a Base
Rate Advance, and
(ii) the obligation of the Lenders to make, or to
Convert Advances into, Eurodollar Rate Advances shall be suspended
until the Administrative Agent shall notify the Company and the Lenders
that the circumstances causing such suspension no longer exist.
(e) If the applicable Borrower shall fail to select the
duration of any Interest Period for any Eurodollar Rate Advances in accordance
with the provisions contained in the definition of "Interest Period" in Section
1.1, the Administrative Agent will forthwith so notify the applicable Borrower
and the Lenders and such Advances will automatically, on the last day of the
then existing Interest Period therefor, Convert into Base Rate Advances.
(f) On the date on which the aggregate unpaid principal amount
of Eurodollar Rate Advances comprising any Borrowing shall be reduced, by
payment or prepayment or otherwise, to less than $10,000,000, such Eurodollar
Rate Advances shall automatically Convert into Base Rate Advances, and on and
after such date the right of the applicable Borrower to Convert such Advances
into Eurodollar Rate Advances shall terminate; provided, however, that if and so
long as each such Eurodollar Rate Advance shall have the same Interest Period as
Eurodollar Rate Advances comprising another Borrowing or other Borrowings, and
the aggregate unpaid principal amount of all such Eurodollar Rate Advances shall
equal or exceed $20,000,000, the applicable Borrower shall have the right to
continue all such Advances as, or to Convert all such Advances into Eurodollar
Rate Advances having the same Interest Period.
(g) If any Reference Lender shall for any reason no longer
have a Commitment or any Revolving Credit Advances, such Reference Lender shall
thereupon cease to be a Reference Lender, and if, as a result, there shall only
be one Reference Lender remaining, the Administrative Agent (after consultation
with the Company and the Lenders) shall, by notice to the Company and the
Lenders, designate another Lender as a Reference Lender so that there shall at
all times be at least two Reference Lenders.
SECTION 2.14. Voluntary Conversion of Advances. Any Borrower
may on any Business Day, upon notice given to the Administrative Agent, not
later than 10:00 A.M. (New York City time) on the Business Day of the proposed
Conversion of Eurodollar Rate Advances to Base Rate Advances and not later than
12:00 noon (New York City time) on the third Business Day prior to the date of
the proposed Conversion in the case of a Conversion of Base Rate Advances to
Eurodollar Rate Advances, and subject to the provisions of Sections 2.13, 2.16
and 2.18, Convert all Advances of one Type comprising the same Borrowing into
Advances of
26
another Type; provided, however, that any Conversion of any Eurodollar Rate
Advances into Base Rate Advances made on any day other than the last day of an
Interest Period for such Eurodollar Rate Advances shall be subject to the
provisions of Section 9.4(b); and provided, further, that no Revolving Credit
Advance may be converted into a Eurodollar Rate Advance after the date that is
one month prior to (a) in the case of a Revolving Credit Advance made by an
Objecting Lender, the first anniversary of such Objecting Lender's Commitment
Expiration Date, and (b) in the case of all Revolving Credit Advances, the first
anniversary of the Termination Date and provided, still further, that no
Revolving Credit Advance may be converted into a Eurodollar Rate Advance if an
Event of Default has occurred and is continuing. Each such notice of a
Conversion shall, within the restrictions specified above, specify (a) the date
of such Conversion, (b) the Advances to be Converted, and (c) if such Conversion
is into Eurodollar Rate Advances, the duration of the Interest Period for each
such Advance.
SECTION 2.15. Optional and Mandatory Prepayments. (a) Optional
Prepayments. Any Borrower may upon (i) in the case of Eurodollar Rate Advances,
at least two Business Days' notice and (ii) in the case of Base Rate Advances,
telephonic notice not later than 12:00 noon (New York City time) on the date of
prepayment, to the Administrative Agent which specifies the proposed date and
aggregate principal amount of the prepayment and the Type of Advances to be
prepaid, and if such notice is given such Borrower shall, prepay the outstanding
principal amounts of the Revolving Credit Advances comprising the same Borrowing
in whole or ratably in part, together with accrued interest to the date of such
prepayment on the amount prepaid; provided, however, that (A) each partial
prepayment shall be in an aggregate principal amount not less than $10,000,000
or an integral multiple of $1,000,000 in excess thereof and (B) in the event of
any such prepayment of Eurodollar Rate Advances on any day other than the last
day of an Interest Period for such Eurodollar Rate Advances, such Borrower shall
be obligated to reimburse the Lenders in respect thereof pursuant to, and to the
extent required by, Section 9.4(b); provided, further, however, that such
Borrower will use its best efforts to give notice to the Administrative Agent of
the proposed prepayment of Base Rate Advances on the Business Day prior to the
date of such proposed prepayment.
(b) Mandatory Prepayments. If, at any time and from time to
time, the aggregate principal amount of Advances (other than Advances of
Objecting Lenders) then outstanding exceeds the Commitments of all the Lenders
after giving effect to any reduction of the Commitments pursuant to Section 2.9,
the Borrowers shall immediately prepay the Revolving Credit Advances of Lenders
(other than Objecting Lenders) (to the extent there are such outstanding
Revolving Credit Advances) by an amount equal to such excess.
SECTION 2.16. Increased Costs. (a) If, due to either (i) the
introduction after the date of this Agreement of or any change after the date of
this Agreement (including any change by way of imposition or increase of reserve
requirements or assessments other than those referred to in the definition of
"Eurodollar Reserve Percentage" contained in Section 1.1) in or in the
interpretation of any law or regulation or (ii) the compliance with any
guideline or request issued or made after the date of this Agreement from or by
any central bank or other governmental authority (whether or not having the
force of law), in each case above other than those referred to in Section 2.17,
there shall be any increase in the cost to any Lender of agreeing to make, fund
or maintain, or of making, funding or maintaining, Eurodollar Rate Advances
funded in the interbank Eurodollar market, then the Borrowers shall from time to
time, upon demand by such Lender (with a copy of such demand to the
Administrative Agent), pay to the Administrative Agent for the account of such
Lender additional amounts sufficient to reimburse
27
such Lender for all such increased costs (except those costs incurred more than
60 days prior to the date of such demand; for the purposes hereof any cost or
expense allocable to a period prior to the publication or effective date of such
an introduction, change, guideline or request shall be deemed to be incurred on
the later of such publication or effective date). Each Lender agrees to use its
best efforts promptly to notify the Company of any event referred to in clause
(i) or (ii) above, provided that the failure to give such notice shall not
affect the rights of any Lender under this Section 2.16(a) (except as otherwise
expressly provided above in this Section 2.16(a)). A certificate as to the
amount of such increased cost, submitted to the Company and the Administrative
Agent by such Lender, shall be conclusive and binding for all purposes, absent
manifest error. After one or more Lenders have notified the Company of any
increased costs pursuant to this Section 2.16, the Company may specify by notice
to the Administrative Agent and the affected Lenders that, after the date of
such notice whenever the election of Eurodollar Rate Advances by the applicable
Borrower for an Interest Period or portion thereof would give rise to such
increased costs, such election shall not apply to the Revolving Credit Advances
of such Lenders during such Interest Period or portion thereof, and, in lieu
thereof, such Revolving Credit Advances shall during such Interest Period or
portion thereof be Base Rate Advances. Each Lender agrees to use its best
efforts (including a reasonable effort to change its lending office or to
transfer its affected Advances to an affiliate of such Lender) to avoid, or
minimize the amount of, any demand for payment from the Borrowers under this
Section 2.16.
(b) In the event that any Lender shall change its lending
office and such change results (at the time of such change) in increased costs
to such Lender, the Borrowers shall not be liable to such Lender for such
increased costs incurred by such Lender to the extent, but only to the extent,
that such increased costs shall exceed the increased costs which such Lender
would have incurred if the lending office of such Lender had not been so
changed, but, subject to subsection (a) above and to Section 2.18, nothing
herein shall require any Lender to change its lending office for any reason.
SECTION 2.17. Increased Capital. If either (a) the
introduction of or any change in or in the interpretation of any law or
regulation or (b) compliance by any Lender with any guideline or request from
any central bank or other governmental authority (whether or not having the
force of law) affects or would affect the amount of capital required or expected
to be maintained by such Lender or any corporation controlling such Lender and
such Lender determines that the amount of such capital is increased by or based
upon the existence of such Lender's commitment to lend hereunder and other
commitments of this type, then, within ten days after demand, and delivery to
the Company of the certificate referred to in the last sentence of this Section
2.17 by such Lender (with a copy of such demand to the Administrative Agent),
the applicable Borrowers shall pay to the Administrative Agent for the account
of such Lender, from time to time as specified by such Lender, additional
amounts sufficient to compensate such Lender or such corporation in the light of
such circumstances, to the extent that such Lender reasonably determines such
increase in capital to be allocable to the existence of such Lender's commitment
to lend hereunder (except any such increase in capital incurred more than, or
compensation attributable to the period before, 90 days prior to the date of
such demand; for the purposes hereof any increase in capital allocable to, or
compensation attributable to, a period prior to the publication or effective
date of such an introduction, change, guideline or request shall be deemed to be
incurred on the later of such publication or effective date). Each Lender agrees
to use its best efforts promptly to notify the Company of any event referred to
in clause (a) or (b) above, provided that the failure to give such notice shall
not affect the rights of any Lender under this Section 2.17 (except as otherwise
expressly provided above in this Section
28
2.17). A certificate in reasonable detail as to the basis for, and the amount
of, such compensation submitted to the Company by such Lender shall, in the
absence of manifest error, be conclusive and binding for all purposes.
SECTION 2.18. Illegality. Notwithstanding any other provision
of this Agreement, if the introduction of or any change in or in the
interpretation of any law or regulation shall make it unlawful, or any central
bank or other governmental authority shall assert that it is unlawful, for any
Lender or its lending office to perform its obligations hereunder to make
Eurodollar Rate Advances or to continue to fund or maintain such Advances
hereunder, such Lender may, by notice to the Company and the Administrative
Agent, suspend the right of the Borrowers to elect Eurodollar Rate Advances from
such Lender and, if necessary in the reasonable opinion of such Lender to comply
with such law or regulation, Convert all such Eurodollar Rate Advances of such
Lender to Base Rate Advances at the latest time permitted by the applicable law
or regulation, and such suspension and, if applicable, such Conversion shall
continue until such Lender notifies the Company and the Administrative Agent
that the circumstances making it unlawful for such Lender to perform such
obligations no longer exist (which such Lender shall promptly do when such
circumstances no longer exist). So long as the obligation of any Lender to make
Eurodollar Rate Advances has been suspended under this Section 2.18, all Notices
of Borrowing specifying Advances of such Type shall be deemed, as to such
Lender, to be requests for Base Rate Advances. Each Lender agrees to use its
best efforts (including a reasonable effort to change its lending office or to
transfer its affected Advances to an affiliate) to avoid any such illegality.
SECTION 2.19. Pro Rata Treatment, Payments and Computations.
(a) Each Borrowing by any Borrower in respect of Revolving Credit Advances
(subject to the provisions of Section 2.24(e)) shall be made pro rata according
to the respective Commitment Percentages of the Lenders. The Borrowers shall
make each payment hereunder (including under Section 2.6, 2.8, 2.10 or 2.11) and
under the Notes, whether the amount so paid is owing to any or all of the
Lenders or to the Administrative Agent, not later than 12:00 noon (New York City
time) without setoff, counterclaim, or any other deduction whatsoever, on the
day when due in Dollars to the Administrative Agent at its address at 000 Xxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Reference: El Paso Corporation, or at such
other location designated by notice to the Company from the Administrative Agent
and agreed to by the Company, in same day funds. The Administrative Agent will
promptly thereafter cause to be distributed like funds relating to the payment
of principal or interest or facility fees ratably (other than amounts payable
pursuant to Section 2.12, 2.16, 2.17, 2.18 or 2.20) according to the respective
amounts of such principal, interest or facility fees then due and owing to the
Lenders, and like funds relating to the payment of any other amount payable to
any Lender to such Lender, in each case to be applied in accordance with the
terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and
recording of the information contained therein in the Register pursuant to
Section 9.7(d), from and after the effective date specified in such Assignment
and Acceptance, the Administrative Agent shall make all payments hereunder and
under the Notes in respect of the interest assigned thereby to the Lender
assignee thereunder, and the parties to such Assignment and Acceptance shall
make all appropriate adjustments in such payments for periods prior to such
effective date directly between themselves.
(b) All computations of interest based on the Prime Rate and
of facility fees shall be made by the Administrative Agent on the basis of a
year of 365 or 366 days, as the case may be, and all computations of interest
based on the Eurodollar Rate or the Effective Federal Funds
29
Rate shall be made by the Administrative Agent, and all computations of interest
pursuant to Section 2.12 shall be made by each Lender with respect to its own
Advances, on the basis of a year of 360 days, in each case for the actual number
of days (including the first day but excluding the last day) occurring in the
period for which such interest or fees are payable. Each determination by the
Administrative Agent (or, in the case of Section 2.12, 2.16, 2.17, 2.18 or 2.20,
by each Lender with respect to its own Advances) of an interest rate or an
increased cost or increased capital or of illegality hereunder shall be
conclusive and binding for all purposes if made reasonably and in good faith.
(c) Whenever any payment hereunder or under the Notes shall be
stated to be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of payment of interest; provided, however,
if such extension would cause payment of interest on or principal of Eurodollar
Rate Advances to be made in the next following calendar month, such payment
shall be made on the next preceding Business Day.
(d) Unless the Administrative Agent shall have received notice
from the Company or any other applicable Borrower prior to the date on which any
payment is due to the Lenders hereunder that the applicable Borrower will not
make such payment in full, the Administrative Agent may assume that the
applicable Borrower has made such payment in full to the Administrative Agent on
such date and the Administrative Agent may, in reliance upon such assumption,
cause to be distributed to each Lender on such due date an amount equal to the
amount then due such Lender. If and to the extent the applicable Borrower shall
not have so made such payment in full to the Administrative Agent, each Lender
shall repay to the Administrative Agent forthwith on demand such amount
distributed to such Lender together with interest thereon, for each day from the
date such amount is distributed to such Lender until the date such Lender repays
such amount to the Administrative Agent, at a rate equal to the Effective
Federal Funds Rate for such day.
SECTION 2.20. Taxes. (a) Any and all payments by the Borrowers
hereunder or under the Notes to each Indemnified Party shall be made, in
accordance with Section 2.19, free and clear of and without deduction for any
and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding all taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, imposed by the jurisdiction under the laws of which such
Indemnified Party is organized, domiciled, resident or doing business, or any
political subdivision thereof or by any jurisdiction in which such Indemnified
Party holds any interest in connection with this Agreement or any Note
(including in the case of each Lender, the jurisdiction of such Lender's lending
office) or any political subdivision thereof, other than by any jurisdiction
with which the Indemnified Party's connection arises solely from having
executed, delivered or performed obligations or received a payment under, or
enforced, this Agreement or any Note (all such non-excluded taxes, levies,
imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as "Taxes"). If any Borrower shall be required by law to deduct any
Taxes from or in respect of any sum payable hereunder or under any Note to any
Indemnified Party, (i) the sum payable shall be increased as may be necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.20) such Indemnified Party receives
an amount equal to the sum it would have received had no such deductions been
made, (ii) such Borrower shall make or cause to be made such deductions and
(iii) such Borrower shall pay or cause to be paid the full amount deducted to
the relevant taxation authority
30
or other authority in accordance with applicable law, provided that the
Borrowers shall not be required to pay any additional amount (and shall be
relieved of any liability with respect thereto) pursuant to this subsection (a)
to any Indemnified Party that either (A) on the date such Lender became an
Indemnified Party hereunder, (I) was not entitled to submit a U.S. Internal
Revenue Service form W8-ECI (relating to such Indemnified Party, and entitling
it to a complete exemption from United States withholding taxes on all amounts
to be received by such Indemnified Party pursuant to this Agreement) and a U.S.
Internal Revenue Service form W8-BEN (relating to all amounts to be received by
such Indemnified Party pursuant to this Agreement) and (II) was not a United
States person (as such term is defined in Section 7701(a)(30) of the Internal
Revenue Code) or (B) has failed to submit any form or certificate that it was
required to file or provide pursuant to subsection (d) of this Section 2.20 and
is entitled to file or give, as applicable, under applicable law, provided,
further, that should an Indemnified Party become subject to Taxes because of its
failure to deliver a form required hereunder, the Borrowers shall take such
steps as such Indemnified Party shall reasonably request to assist such
Indemnified Party to recover such Taxes, and provided, further, that each
Indemnified Party, with respect to itself, agrees to indemnify and hold harmless
the Borrowers from any taxes, penalties, interest and other expenses, costs and
losses incurred or payable by the Borrowers as a result of the failure of any of
the Borrowers to comply with its obligations under clause (ii) or (iii) above in
reliance on any form or certificate provided to it by such Indemnified Party
pursuant to this Section 2.20. If any Indemnified Party receives a net credit or
refund in respect of such Taxes or amounts so paid by the Borrowers, it shall
promptly notify the Company of such net credit or refund and shall promptly pay
such net credit or refund to the applicable Borrower, provided that the
applicable Borrower agrees to return such net credit or refund if the
Indemnified Party to which such net credit or refund is applicable is required
to repay it.
(b) In addition, each Borrower agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes, charges
or similar levies which arise from any payment made by such Borrower hereunder
or under the Notes or from the execution, delivery or performance of, or
otherwise with respect to, this Agreement or the Notes (hereinafter referred to
as "Other Taxes").
(c) Each Borrower will indemnify each Indemnified Party and
the Administrative Agent for the full amount of Taxes or Other Taxes (including
any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under
this Section 2.20) paid by such Indemnified Party and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto
except as a result of the gross negligence (which shall in any event include the
failure of such Indemnified Party to provide to the Borrowers any form or
certificate that it was required to provide pursuant to subsection (d) below) or
willful misconduct of such Indemnified Party, whether or not such Taxes or Other
Taxes were correctly or legally asserted. This indemnification shall be made
within 30 days from the date such Indemnified Party makes written demand
therefor.
(d) On or prior to the date on which each Indemnified Party
organized under the laws of a jurisdiction outside the United States becomes an
Indemnified Party hereunder, such Indemnified Party shall provide the Company
with U.S. Internal Revenue Service form W8-ECI or W8-BEN, as appropriate, or any
successor form prescribed by the U.S. Internal Revenue Service, certifying that
such Indemnified Party is fully exempt from United States withholding taxes with
respect to all payments to be made to such Indemnified Party hereunder, or other
documents satisfactory to the Company indicating that all payments to be made to
such
31
Indemnified Party hereunder are fully exempt from such taxes. Thereafter and
from time to time (but only so long as such Indemnified Party remains lawfully
able to do so), each such Indemnified Party shall submit to the Company such
additional duly completed and signed copies of one or the other of such Forms
(or such successor Forms as shall be adopted from time to time by the relevant
United States taxing authorities) as may be (i) notified by any Borrower to such
Indemnified Party and (ii) required under then-current United States law or
regulations to avoid United States withholding taxes on payments in respect of
all amounts to be received by such Indemnified Party pursuant to this Agreement
or the Notes. Upon the request of any Borrower from time to time, each
Indemnified Party that is a United States person (as such term is defined in
Section 7701(a)(30) of the Internal Revenue Code) shall submit to the Company a
certificate to the effect that it is such a United States person. If any
Indemnified Party determines, as a result of any change in applicable law,
regulation or treaty, or in any official application or interpretation thereof,
that it is unable to submit to the Company any form or certificate that such
Indemnified Party is obligated to submit pursuant to this subsection (d), or
that such Indemnified Party is required to withdraw or cancel any such form or
certificate previously submitted, such Indemnified Party shall promptly notify
the Company of such fact.
(e) Any Indemnified Party claiming any additional amounts
payable pursuant to this Section 2.20 shall use its best efforts (consistent
with its internal policy and legal and regulatory restrictions) to change the
jurisdiction of its lending office if the making of such a change would avoid
the need for, or reduce the amount of, any such additional amounts which may
thereafter accrue and would not, in the reasonable judgment of such Indemnified
Party, be otherwise disadvantageous to such Indemnified Party.
(f) Without prejudice to the survival of any other agreement
of the Borrowers hereunder, the agreements and obligations of the Borrowers and
each Indemnified Party contained in this Section 2.20 shall survive the payment
in full of principal and interest hereunder and under the Notes.
(g) Any other provision of this Agreement to the contrary
notwithstanding, any amounts which are payable by any Borrower under this
Section 2.20 shall not be payable under Section 2.16.
SECTION 2.21. Sharing of Payments, Etc. If any Lender shall
obtain any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) on account of the Advances made by it (other
than pursuant to Section 2.12, 2.16, 2.17, 2.18 or 2.20) in excess of its
ratable share of payments on account of the Advances obtained by all the
Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the Advances made by them as shall be necessary to cause such
purchasing Lender to share the excess payment ratably with each of them,
provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each Lender
shall be rescinded and each Lender shall repay to the purchasing Lender the
purchase price to the extent of such recovery together with an amount equal to
such Lender's ratable share (according to the proportion of (a) the amount of
such Lender's required repayment to (b) the total amount so recovered from the
purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered. Each Borrower
agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section may, to the fullest extent permitted by law, exercise
all its rights of payment (including the right of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of such
Borrower in the amount of such participation.
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SECTION 2.22. Use of Proceeds. Proceeds of the Advances may be
used for general business purposes of the Borrowers and their respective
Subsidiaries, including for acquisitions and for payment of commercial paper
issued by the Borrowers, and to refinance any Indebtedness of the Borrowers and
their respective Subsidiaries (whether in connection with any acquisition or
otherwise).
SECTION 2.23. Extension of Stated Termination Date. (a) Not
less than 45 days and not more than 60 days prior to the Stated Termination Date
then in effect, provided that no Event of Default shall have occurred and be
continuing, the Company may request an extension of such Stated Termination Date
by submitting to the Administrative Agent an Extension Request containing the
information in respect of such extension specified in Exhibit M, which the
Administrative Agent shall promptly furnish to each Lender. Each Lender shall,
not less than 30 days and not more than 60 days prior to the Stated Termination
Date then in effect, notify the Company and the Administrative Agent of its
election to extend or not extend the Stated Termination Date as requested in
such Extension Request. Notwithstanding any provision of this Agreement to the
contrary, any notice by any Lender of its willingness to extend the Stated
Termination Date shall be revocable by such Lender in its sole and absolute
discretion at any time prior to the date which is 30 days prior to the Stated
Termination Date then in effect. If the Required Lenders shall approve in
writing the extension of the Stated Termination Date requested in such Extension
Request, the Stated Termination Date shall automatically and without any further
action by any Person be extended for the period specified in such Extension
Request; provided that (i) each extension pursuant to this Section 2.23 shall be
for a maximum of 364 days and (ii) the Commitment of any Lender that does not
consent in writing, or which revokes, in accordance with the provisions of this
Section 2.23, its consent to such extension not less than 30 days and not more
than 60 days prior to the Stated Termination Date then in effect and has not
thereafter reinstated its consent (an "Objecting Lender") shall, unless earlier
terminated in accordance with this Agreement, expire on the Stated Termination
Date in effect on the date of such Extension Request (such Stated Termination
Date, if any, being referred to as the "Commitment Expiration Date" with respect
to such Objecting Lender). If, not less than 30 days and not more than 60 days
prior to the Stated Termination Date then in effect, the Required Lenders shall
not approve in writing the extension of the Stated Termination Date requested in
an Extension Request, the Stated Termination Date shall not be extended pursuant
to such Extension Request. The Administrative Agent shall promptly notify (y)
the Lenders and the Company of any extension of the Stated Termination Date
pursuant to this Section 2.23 and (z) the Company and the Lenders of any Lender
which becomes an Objecting Lender.
(b) Revolving Credit Advances owing to any Objecting Lender on
the Commitment Expiration Date with respect to such Lender shall be repaid in
full on or before the date that is one year after such Commitment Expiration
Date.
(c) The Borrowers shall have the right, so long as no Event of
Default has occurred and is then continuing, upon giving notice to the
Administrative Agent and the Objecting Lenders in accordance with Section 2.15,
to prepay in full the Revolving Credit Advances of the Objecting Lenders,
together with accrued interest thereon, any amounts payable pursuant to Sections
2.11, 2.12, 2.16, 2.17, 2.18, 2.20 and 9.4(b) and any accrued and unpaid
facility fee or other amounts payable to the Objecting Lenders hereunder and/or,
upon giving not less than three Business Days' notice to the Objecting Lenders
and the Administrative Agent, to cancel the whole or part of the Commitments of
the Objecting Lenders.
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(d) Notwithstanding the foregoing, if any Lender becomes an
Objecting Lender, the Borrower may, at its own expense and in its sole
discretion and prior to the then Stated Termination Date, require such Lender to
transfer or assign, in whole or in part, without recourse (in accordance with
Section 9.7), all or part of its interests, rights and obligations under this
Agreement to an Eligible Assignee (provided that the Borrower, with the full
cooperation of such Lender, can identify an Eligible Assignee that is ready,
willing and able to be an assignee with respect thereto) which shall assume such
assigned obligations (which assignee may be another Lender, if such assignee
Lender accepts such assignment); provided that (A) the assignee or the Borrower,
as the case may be, shall have paid to such Lender in immediately available
funds the principal of and interest accrued to the date of such payment on the
Advances made by it hereunder and all other amounts owed to it hereunder,
including any amounts owing pursuant to Section 9.4(b) and any amounts that
would be owing under said Section if such Advances were prepaid on the date of
such assignment, and (B) such assignment does not conflict with any law, rule or
regulation or order of any governmental authority. Any assignee which becomes a
Lender as a result of such an assignment made pursuant to this paragraph (d)
shall be deemed to have consented to the applicable Extension Request and,
therefore, shall not be an Objecting Lender.
SECTION 2.24. [Intentionally Left Blank]
SECTION 2.25. Replacement of Lenders. If any Lender requests
compensation under Sections 2.12, 2.16 or 2.17 or if any Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 2.20, or if any Lender suspends the
right of any Borrower to elect Eurodollar Rate Advances from such Lender
pursuant to Section 2.18, or if any Lender defaults in its obligation to fund
Advances hereunder, then the Company may, at its sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in Section 9.7), all its interests, rights and
obligations under this Agreement (other than any outstanding CAF Advances held
by it) to an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment); provided that (i) the
Company shall have received the prior written consent of the Administrative
Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall
have received payment of an amount equal to the outstanding principal of its
Advances (other than CAF Advances), accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Borrowers (in
the case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Sections 2.12, 2.16 or 2.17 or
payments required to be made pursuant to Section 2.20, such assignment will
result in a reduction in such compensation or payments. A Lender shall not be
required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Company to require such assignment and delegation cease to apply.
ARTICLE III
CONDITIONS OF EFFECTIVENESS AND LENDING
SECTION 3.1. Conditions Precedent to Effectiveness of this
Agreement. This Agreement shall become effective (the "Effective Date") when (i)
it shall have been executed by
34
the Company, EPNGC, Tennessee, the Administrative Agent, the CAF Advance Agent,
the Co-Documentation Agents and the Co-Syndication Agents and (ii) the
Administrative Agent and the Company either shall have been notified by each
Lender that such Lender has executed it or shall have received a counterpart of
this Agreement executed by such Lender (or compliance with the foregoing shall
have been waived by the Lenders). Anything in this Agreement to the contrary
notwithstanding, if all of the conditions to effectiveness of this Agreement
specified in this Section 3.1 shall not have been fulfilled on or before May 15,
2002, (i) the Company shall on such date pay all accrued and unpaid facility
fees pursuant to Section 2.8 and (ii) this Agreement, and all of the obligations
of the Company, the Lenders, the Administrative Agent and the CAF Advance Agent
hereunder, shall be terminated on and as of 5:00 P.M. (New York City time) on
May 15, 2002; provided, however, that as soon as the Administrative Agent
determines that all of the conditions to effectiveness of this Agreement
specified in this Section 3.1 shall have been fulfilled on or before May 15,
2002, the Administrative Agent shall furnish written notice to the Company and
the Lenders to the effect that it has so determined, and such notice by the
Administrative Agent shall constitute conclusive evidence that this Agreement
shall have become effective for all purposes. Notwithstanding the foregoing, the
obligations of the Company to pay fees pursuant to Section 2.8 as well as all
obligations of the Borrowers pursuant to Section 9.4 shall survive the
termination of this Agreement.
SECTION 3.2. Conditions Precedent to Initial Advances. The
agreement of each Lender to make the initial Advances to be made by it to the
Borrowers hereunder is subject to (the date upon which all conditions listed in
Section 3.2(a) and 3.2(b) are satisfied, the "Closing Date") (a) the occurrence
of the Effective Date hereunder and (b) the receipt by the Administrative Agent
of the following in form and substance satisfactory to the Administrative Agent
and in sufficient copies for each Lender:
(i) Certified copies of the resolutions of the Board of
Directors of each of the Company, EPNGC and Tennessee approving the
borrowings contemplated hereby and authorizing the execution of this
Agreement and the Notes, and of all documents evidencing other
necessary Business Entity action of each of the Company, EPNGC and
Tennessee and governmental approvals to each of the Company, EPNGC and
Tennessee, if any, with respect to this Agreement and the Notes.
(ii) A certificate of the Secretary or an Assistant Secretary
of each of the Company, EPNGC and Tennessee certifying the names and
true signatures of the officers of each of the Company, EPNGC and
Tennessee authorized to sign this Agreement and the other documents to
be delivered by it hereunder.
(iii) A favorable opinion of the Senior Counsel of the
Company, or the Associate General Counsel of the Company, in
substantially the form of Exhibit G.
(iv) A favorable opinion of Xxxxx, Day, Xxxxxx & Xxxxx, New
York counsel to the Company, EPNGC and Tennessee, in substantially the
form of Exhibit H.
(v) A letter from the Process Agent, in substantially the form
of Exhibit I, agreeing to act as Process Agent for each of the Company,
EPNGC and Tennessee and to forward forthwith all process received by it
to the Company, EPNGC and Tennessee, as applicable.
35
(vi) Evidence satisfactory to the Administrative Agent that
all advances, accrued interest and other fees and any other amounts
owing to the lenders and the agents under the Existing 364-Day Facility
shall have been, or simultaneously with the initial Advances are being,
paid in full, and the commitments to make advances thereunder shall
have been cancelled.
SECTION 3.3. Conditions Precedent to Initial Advances to Any
Borrowing Subsidiary. The agreement of each Lender to make the initial Advances
to be made by it to any Borrowing Subsidiary (other than EPNGC and Tennessee) is
further subject to the Administrative Agent receiving the following, in form and
substance satisfactory to the Administrative Agent and (except for the Notes) in
sufficient copies for each Lender:
(a) A Joinder Agreement executed and delivered by such
Borrowing Subsidiary conforming to the requirements hereof.
(b) Notes, dated the date such Borrowing Subsidiary executes
and delivers its Joinder Agreement, made by such Borrowing Subsidiary
to the order of each Lender requesting a Note, respectively.
(c) A certificate of the Secretary or an Assistant Secretary
of such Borrowing Subsidiary certifying the names and true signature of
the officers of such Borrowing Subsidiary authorized to sign the
Joinder Agreement and the other documents to be delivered by it
hereunder.
(d) A favorable opinion of the Senior Counsel or Associate
General Counsel of the Company, given upon the express instructions of
the Company, in substantially the form of Exhibit K, and as to such
other matters as any Lender through the Administrative Agent may
reasonably request, with such assumptions, qualifications and
exceptions as the Administrative Agent may approve.
(e) A favorable opinion of Xxxxx, Day, Xxxxxx & Xxxxx or other
New York counsel to the Company reasonably satisfactory to the
Administrative Agent, in substantially the form of Exhibit L, and as to
such other matters as any Lender through the Administrative Agent may
reasonably request, with such assumptions, qualifications and
exceptions as the Administrative Agent may approve.
(f) A letter from the Process Agent, in substantially the form
of Exhibit I, agreeing to act as Process Agent for such Borrowing
Subsidiary, as the case may be, and to forward forthwith all process
received by it to such Borrowing Subsidiary.
SECTION 3.4. Conditions Precedent to Each Borrowing. The
obligation of each Lender to make an Advance (including the initial Advance, but
excluding any continuation or Conversion of an Advance) on the occasion of any
Borrowing shall be subject to the conditions precedent that on or before the
date of such Borrowing this Agreement shall have become effective pursuant to
Section 3.1 and, before and immediately after giving effect to such Borrowing
and to the application of the proceeds therefrom, the following statements shall
be true and correct, and the giving by the applicable Borrower or the Company on
such Borrower's behalf of the applicable Notice of Borrowing and the acceptance
by the applicable Borrower of the proceeds of such Borrowing shall constitute
its representation and warranty that on and as of
36
the date of such Borrowing, before and immediately after giving effect thereto
and to the application of the proceeds therefrom, the following statements are
true and correct:
(i) each representation and warranty contained in Section 4.1
is correct in all material respects as though made on and as of such
date; and
(ii) no event has occurred and is continuing, or would result
from such Borrowing, which constitutes an Event of Default or a
Default.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.1. Representations and Warranties of the Borrowers.
Each Borrower represents and warrants as follows:
(a) The Company is a Business Entity duly formed, validly
existing and, if applicable, in good standing under the laws of the
State of Delaware. Each Principal Subsidiary is duly organized or
formed, validly existing and, if applicable, in good standing in the
jurisdiction of its organization or formation. The Company and each
Principal Subsidiary possess all applicable Business Entity powers and
all other authorizations and licenses necessary to engage in its
business and operations as now conducted, the failure to obtain or
maintain which would have a Material Adverse Effect.
(b) The execution, delivery and performance by each Borrower
of this Agreement, each Joinder Agreement, if any, to which it is a
party and its Notes (as applicable) are within such Borrower's
applicable Business Entity powers, have been duly authorized by all
necessary applicable Business Entity action, and do not contravene (A)
such Borrower's organizational documents or (B) any law or any material
contractual restriction binding on or affecting such Borrower.
(c) No authorization or approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body
is required for the due execution, delivery and performance by such
Borrower of this Agreement, each Joinder Agreement, if any, to which it
is a party or its Notes (as applicable), except those necessary to
comply with laws, rules, regulations and orders required in the
ordinary course to comply with ongoing obligations of such Borrower
under Section 5.1(a) and (b).
(d) This Agreement constitutes, its Notes and each Joinder
Agreement, if any, to which it is a party (as applicable) when
delivered hereunder shall constitute the legal, valid and binding
obligations of each Borrower, enforceable against such Borrower in
accordance with their respective terms, except as may be limited by any
applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors' rights generally or by general
principles of equity.
(e) The consolidated balance sheet of the Company and its
consolidated Subsidiaries as at December 31, 2001, and the related
consolidated statements of income and cash flows of the Company and its
consolidated Subsidiaries for the fiscal year then ended, reported on
by PricewaterhouseCoopers LLP, independent public accountants,
37
copies of which have been furnished to the Administrative Agent and the
Lenders prior to the date hereof, fairly present the consolidated
financial condition of the Company and its consolidated Subsidiaries as
at such date and the consolidated results of the operations of the
Company and its consolidated Subsidiaries for the period ended on such
date, all in accordance with GAAP consistently applied, and from
December 31, 2001 through the Closing Date there has been no material
adverse change in such condition or operations. The unaudited
consolidated balance sheet of the Company and its consolidated
Subsidiaries as of March 31, 2002, and the related consolidated
statements of income and cash flows of the Company and its consolidated
Subsidiaries for the three months then ended, certified by the chief
financial officer of the Company, copies of which have been furnished
to the Administrative Agent and the Lenders prior to the date hereof,
fairly present the consolidated results of operations of the Company
and its consolidated Subsidiaries for the three months then ended, all
in accordance with GAAP consistently applied (except as approved by the
chief financial officer of the Company and as disclosed therein) and
subject to normal year-end audit adjustments.
(f) Each of the Company and its Subsidiaries is in compliance
with all laws, rules, regulations and orders of any governmental
authority applicable to it or its property except where the failure to
comply, individually or in the aggregate, would not in the reasonable
judgment of the Company be expected to result in a Material Adverse
Effect.
(g) There is no action, suit or proceeding pending, or to the
knowledge of any Borrower threatened, against or involving the Company
or any Principal Subsidiary in any court, or before any arbitrator of
any kind, or before or by any governmental body, existing as at the
Effective Date which in the reasonable judgment of the Company (taking
into account the exhaustion of all appeals) would have a Material
Adverse Effect, or which purports to affect the legality, validity,
binding effect or enforceability of this Agreement or the Notes.
(h) The Company and each Principal Subsidiary have duly filed
all tax returns required to be filed, and have duly paid and discharged
all taxes, assessments and governmental charges upon it or against its
properties now due and payable, the failure to file or pay which, as
applicable, would have a Material Adverse Effect, unless and to the
extent only that the same are being contested in good faith and by
appropriate proceedings by the Company or the appropriate Subsidiary.
(i) The Company and each Principal Subsidiary have good title
to their respective properties and assets, free and clear of all
mortgages, liens and encumbrances, except for mortgages, liens and
encumbrances (including covenants, restrictions, rights, easements and
minor irregularities in title) which do not materially interfere with
the business or operations of the Company or such Subsidiary as
presently conducted or which are permitted by Section 5.2(a), and
except that no representation or warranty is being made with respect to
Margin Stock.
(j) No Termination Event has occurred or is reasonably
expected to occur with respect to any Plan which, with the giving of
notice or lapse of time, or both, would constitute an Event of Default
under Section 7.1(g).
38
(k) Each Plan has complied with the applicable provisions of
ERISA and the Code where the failure to so comply would reasonably be
expected to result in an aggregate liability that would exceed 10% of
the Net Worth of the Company.
(l) The statement of assets and liabilities of each Plan and
the statements of changes in fund balance and in financial position, or
the statement of changes in net assets available for plan benefits, for
the most recent plan year for which an accountant's report with respect
to such Plan has been prepared, copies of which report have been
furnished to the Administrative Agent, fairly present the financial
condition of such Plan as at such date and the results of operations of
such Plan for the plan year ended on such date.
(m) Neither the Company nor any ERISA Affiliate has incurred,
or is reasonably expected to incur, any Withdrawal Liability to any
Multiemployer Plan which, when aggregated with all other amounts
required to be paid to Multiemployer Plans in connection with
Withdrawal Liability (as of the date of determination), would exceed
10% of the Net Worth of the Company.
(n) Neither the Company nor any ERISA Affiliate has received
any notification that any Multiemployer Plan is in reorganization,
insolvent or has been terminated, within the meaning of Title IV of
ERISA, and no Multiemployer Plan is reasonably expected to be in
reorganization, insolvent or to be terminated within the meaning of
Title IV of ERISA the effect of which reorganization, insolvency or
termination would be the occurrence of an Event of Default under
Section 7.1(i).
(o) No Borrower is an "investment company" or a "company"
controlled by an "investment company" within the meaning of the
Investment Company Act of 1940, as amended.
(p) No Borrower is a "holding company" or a "subsidiary
company" of a "holding company" within the meaning of the Public
Utility Holding Company Act of 1935, as amended.
(q) The borrowings by the Borrowers under this Agreement and
the Notes and the applications of the proceeds thereof as provided
herein will not violate Regulation T, U or X of the Board of Governors
of the Federal Reserve System.
All representations and warranties made by the Borrowers herein or made in any
certificate delivered pursuant hereto shall survive the making of the Advances
and the execution and delivery to the Lenders of this Agreement and the Notes.
ARTICLE V
COVENANTS OF THE BORROWERS
SECTION 5.1. Affirmative Covenants. So long as any amount
payable by any Borrower hereunder or under any Note shall remain unpaid or any
Lender shall have any Commitment hereunder, each Borrower will, unless the
Majority Lenders shall otherwise consent in writing:
39
(a) Preservation of Existence, Etc. Preserve and maintain,
and, in the case of the Company, cause each Principal Subsidiary to
preserve and maintain, its existence, rights (organizational and
statutory) and material franchises, except as otherwise permitted by
Section 5.2(d) or 5.2(e) and except that nothing herein shall prevent
any change in Business Entity form of the Company or any Principal
Subsidiary.
(b) Compliance with Laws, Etc. Comply, and, in the case of the
Company, cause each Principal Subsidiary to comply, in all material
respects with all applicable laws, rules, regulations and orders
(including all environmental laws and laws requiring payment of all
taxes, assessments and governmental charges imposed upon it or upon its
property except to the extent contested in good faith by appropriate
proceedings) the failure to comply with which would have a Material
Adverse Effect.
(c) Visitation Rights. At any reasonable time and from time to
time, permit the Administrative Agent or any of the Lenders or any
agents or representatives thereof, to examine and make copies of and
abstracts from the records and books of account of, and visit the
properties of, the Company and any of its Subsidiaries, and to discuss
the affairs, finances and accounts of the Company and any of its
Subsidiaries with any of their officers and with their independent
certified public accountants.
(d) Books and Records. Keep, and, in the case of the Company,
cause each of its Subsidiaries to keep, proper books of record and
account, in which full and correct entries shall be made of all its
respective financial transactions and the assets and business of the
Company and each of its Subsidiaries, as applicable, in accordance with
GAAP either (i) consistently applied or (ii) applied in a changed
manner provided such change shall have been disclosed to the
Administrative Agent and shall have been consented to by the
accountants which (as required by Section 5.3(b)) report on the
financial statements of the Company and its consolidated Subsidiaries
for the fiscal year in which such change shall have occurred.
(e) Maintenance of Properties, Etc. Maintain and preserve,
and, in the case of the Company, cause each Principal Subsidiary to
maintain and preserve, all of its properties which are used in the
conduct of its business in good working order and condition, ordinary
wear and tear excepted, to the extent that any failure to do so would
have a Material Adverse Effect.
(f) Maintenance of Insurance. Maintain, and, in the case of
the Company, cause each Principal Subsidiary to maintain, insurance
with responsible and reputable insurance companies or associations in
such amounts and covering such risks as is usually carried by companies
engaged in similar businesses and owning similar properties in the same
general areas in which the Company or such Subsidiary operates.
SECTION 5.2. Negative Covenants. So long as any amount payable
by any Borrower hereunder or under any Note shall remain unpaid or any Lender
shall have any Commitment hereunder, each Borrower will not, unless the Majority
Lenders shall otherwise consent in writing:
(a) Liens, Etc. (i) Create, assume or suffer to exist, or, in
the case of the Company, permit any Principal Subsidiary to create,
assume or suffer to exist, any Liens upon or with respect to any of its
Equity Interests in any Principal Subsidiary, whether
40
now owned or hereafter acquired, or (ii) create or assume, or, in the
case of the Company, permit any Principal Subsidiary to create or
assume, any Liens upon or with respect to any other assets material to
the consolidated operations of the Company and its consolidated
Subsidiaries taken as a whole securing the payment of Indebtedness and
Guaranties in an aggregate amount (determined without duplication of
amount (so that the amount of a Guaranty will be excluded to the extent
the Indebtedness Guaranteed thereby is included in computing such
aggregate amount)) exceeding the greater of (x) $300,000,000 and (y)
10% of Net Worth as at the date of such creation or assumption;
provided, however, that this subsection (a) shall not apply to:
(A) Liens on the Equity Interests in, or Indebtedness
or other obligations of, or assets of, any Project Financing
Subsidiary (or any Equity Interests in, or Indebtedness or
other obligations of, any Business Entity which are directly
or indirectly owned by any Project Financing Subsidiary)
securing the payment of a Project Financing and related
obligations;
(B) Liens on (1) assets acquired by the Company or
any of its Subsidiaries after February 11, 1992 to the extent
that such Liens existed at the time of such acquisition and
were not placed thereon by or with the consent of the Company
in contemplation of such acquisition and (2) Equity Interests
acquired after February 11, 1992 in a Business Entity that has
become or becomes a Subsidiary of the Company, or on assets of
any such Business Entity, to the extent that such Liens
existed at the time of such acquisition and were not placed
thereon by or with the consent of the Company in contemplation
of such acquisition;
(C) Liens created by any Alternate Program or any
document executed by any Borrower or any Subsidiary in
connection therewith;
(D) Liens on Margin Stock;
(E) Permitted Liens;
(F) Liens arising out of the refinancing, extension,
renewal or refunding of any Indebtedness or Guaranty or other
obligation secured by any Lien permitted by any of the
foregoing clauses of this Section, provided that the principal
amount of such Indebtedness or Guaranty or other obligation is
not increased (except by the amount of costs reasonably
incurred in connection with the issuance thereof) beyond the
highest previous amount thereof and such Indebtedness or
Guaranty or other obligation is outstanding immediately prior
to the refinancing, extension, renewal or refunding and is not
secured by any additional assets that would not have been
permitted by this Section to secure the Indebtedness or
Guaranty or other obligation refinanced, extended, renewed or
refunded; and
(G) Liens on products and proceeds (including
dividend, interest and like payments on, and insurance and
condemnation proceeds and rental, lease, licensing and similar
proceeds) of, and property evidencing or embodying, or
constituting rights or other general intangibles directly
relating to or arising out of, and accessions and improvements
to, collateral subject to Liens permitted by this Section
5.2(a).
41
(b) Consolidated Debt and Guarantees to Capitalization. Permit
the ratio of (A) the sum of (1) the aggregate amount of consolidated
Debt of the Company and its consolidated Subsidiaries (without
duplication of amount under this clause (A) and determined as to all of
the foregoing entities on a consolidated basis) plus (2) the aggregate
amount of consolidated Guaranties of the Company and its consolidated
Subsidiaries (without duplication of amount under this clause (A) and
determined as to all of the foregoing entities on a consolidated basis)
to (B) Capitalization of the Company (without duplication and
determined as to all of the foregoing entities on a consolidated basis)
to exceed 0.7 to 1.0.
(c) Debt, Etc. In the case of the Company, permit any of its
consolidated Subsidiaries to incur or become liable for any Debt, any
Guaranty or any reimbursement obligation with respect to any letter of
credit (other than any Project Financing), if, immediately after giving
effect to such Debt, Guaranty or reimbursement obligation and the
receipt and application of any proceeds thereof or value received in
connection therewith, the aggregate amount (determined without
duplication of amount) of Debt, Guaranties and letter of credit
reimbursement obligations of the Company's consolidated Subsidiaries
owing to Persons other than the Company and its consolidated
Subsidiaries (other than any Project Financing) would exceed the
greater of (x) $600,000,000 and (y) 10% of Net Worth determined as at
the date of incurrence or assumption thereof; provided, however, that
the following Debt, Guaranties or reimbursement obligations shall be
excluded from the application of, and calculation set forth in, this
paragraph (c): (A) Debt, Guaranties or reimbursement obligations
incurred by (x) Mojave or (y) EPNGC, (B) Debt, Guaranties or
reimbursement obligations arising under (x) the EPTPC Facility or (y)
this Agreement or the 3-Year Facility, (C) Debt, Guaranties or
reimbursement obligations incurred by El Paso Field Services Company up
to an amount not to exceed at any time outstanding the tangible net
worth of El Paso Field Services Company, provided that such Debt may be
guaranteed by the Company, (D) Excluded Acquisition Debt, (E)
successive extensions, refinancings or replacements (at the same
Subsidiary or at any other consolidated Subsidiary of the Company) of
Debt, Guaranties or reimbursement obligations (or commitments in
respect thereof) referred to in clauses (A), (B) and (D) above and in
an amount not in excess of the amounts so extended, refinanced or
replaced (or the amount of commitments in respect thereof) and (F)
Debt, Guarantees or reimbursement obligations incurred by Tennessee
pursuant to one or more commercial paper programs allowing for the
issuance by Tennessee of items of commercial paper having maturity
dates not later than one year from the dates of their respective
issuance provided that such Debt, Guarantees or reimbursement
obligations of Tennessee shall be in an aggregate amount not to exceed
at any time the excess of (x) the sum of (1) the aggregate amount of
Commitments and (2) the aggregate amount of Commitments as defined in
the 3-Year Facility, over (y) the sum of (1) the aggregate amount of
Advances, (2) the aggregate amount of Advances, as defined in and
outstanding pursuant to, the 3-Year Facility, and (3) the aggregate
principal amount of commercial paper outstanding from time to time that
(I) is issued by the Company and its Subsidiaries (other than
Tennessee) and (II) relies upon credit availability under either this
Agreement or the 3-Year Facility for commercial paper liquidity
purposes.
(d) Sale, Etc. of Assets. Sell, lease or otherwise transfer,
or, in the case of the Company, permit any Principal Subsidiary to
sell, lease or otherwise transfer, (in either case, whether in one
transaction or in a series of transactions) assets constituting all or
42
substantially all of the consolidated assets of the Company and its
Principal Subsidiaries taken as a whole, provided that provisions of
this subsection (d) shall not apply to:
(i) any sale of receivables and related rights
pursuant to any Alternate Program;
(ii) any Project Financing Subsidiary and the assets
thereof;
(iii) sales, leases or other transfers of assets or
capital stock of any Subsidiary of the Company other than any
Principal Subsidiary;
(iv) any sale of Margin Stock;
(v) any sale of up to 20% of the equity of El Paso
Field Services Company in an initial public offering of such
Person's Equity Interests;
(vi) any sale, lease or other transfer to the Company
or any Principal Subsidiary, or to any Business Entity that
after giving effect to such transfer will become and be either
(A) a Principal Subsidiary in which the Company's direct or
indirect equity interest will be at least as great as its
direct or indirect equity interest in the transferor
immediately prior thereto or (B) a directly or indirectly
wholly-owned Principal Subsidiary; and
(vii) any transfer permitted by Section 5.2(e); and
(viii) any transfer to the Company or any of its
Subsidiaries of any stock or assets other than FERC regulated
assets (or stock or any other equity interest in an entity
owning FERC regulated assets) used in the mainline gas
transmission business; provided that no Event of Default or
Default shall have occurred and be continuing before and
immediately after giving effect to such transfer.
(e) Mergers, Etc. Merge or consolidate with any Person, or in
the case of the Company permit any of its Principal Subsidiaries to
merge or consolidate with any Person, except that (i) any Principal
Subsidiary may merge or consolidate with (or liquidate into) any other
Subsidiary (other than a Project Financing Subsidiary, unless the
successor Business Entity is not treated as a Project Financing
Subsidiary under this Agreement) or may merge or consolidate with (or
liquidate into) the Company, provided that (A) if such Principal
Subsidiary merges or consolidates with (or liquidates into) the
Company, either (x) the Company shall be the continuing or surviving
Business Entity or (y) the continuing or surviving Business Entity is
organized under the laws of the United States or a State thereof and
unconditionally assumes by agreement all of the performance obligations
and payment Obligations of the Company under this Agreement and the
Notes and (B) if any such Principal Subsidiary merges or consolidates
with (or liquidates into) any other Subsidiary, one or more Business
Entities that are Subsidiaries are the continuing or surviving Business
Entity (ies) and, if either such Subsidiary is not directly or
indirectly wholly-owned by the Company, such merger or consolidation is
on an arm's length basis, and (ii) the Company or any Principal
Subsidiary may merge or consolidate with any other Business Entity
(that is, in addition to the Company or any Subsidiary), provided that
(A) if the Company merges or consolidates with any such
43
other Business Entity, either (x) the Company is the continuing or
surviving Business Entity or (y) the continuing or surviving Business
Entity is organized under the laws of the United States or a State
thereof and unconditionally assumes by agreement all of the performance
obligations and payment Obligations of the Company under this Agreement
and the Notes, (B) if any Principal Subsidiary merges or consolidates
with any such other Business Entity, the surviving Business Entity is
directly or indirectly a wholly-owned Principal Subsidiary of the
Company, (C) if either the Company or any Principal Subsidiary merges
or consolidates with any such other Business Entity, after giving
effect to such merger or consolidation no Event of Default or Default
shall have occurred and be continuing and (D) if any Principal
Subsidiary which is a party to any merger, consolidation or liquidation
permitted by this paragraph (e) is a Borrowing Subsidiary, either (x)
such Principal Subsidiary shall be the continuing or surviving Business
Entity or (y) the continuing or surviving Business Entity is organized
under the laws of the United States or a State thereof and
unconditionally assumes by agreement all of the performance obligations
and payment Obligations of such Borrowing Subsidiary under this
Agreement and the Notes (the Borrowers and the Lenders agreeing that it
is their intention that each Business Entity that is a Borrower be
organized under the laws of the United States or a State thereof).
SECTION 5.3. Reporting Requirements. So long as any amount
payable by any Borrower hereunder or under any Note shall remain unpaid or any
Lender shall have any Commitment hereunder, the Company will furnish to each
Lender in such reasonable quantities as shall from time to time be requested by
such Lender:
(a) as soon as publicly available and in any event within 60
days after the end of each of the first three fiscal quarters of each
fiscal year of each of the Company and EPNGC, a consolidated balance
sheet of each of the Company and EPNGC and its respective consolidated
subsidiaries as of the end of such quarter, and consolidated statements
of income and cash flows of each of the Company and EPNGC and its
respective consolidated subsidiaries each for the period commencing at
the end of the previous fiscal year and ending with the end of such
quarter, certified (subject to normal year-end adjustments) as being
fairly stated in all material respects by the chief financial officer,
controller or treasurer of the Company and accompanied by a certificate
of such officer stating (i) whether or not such officer has knowledge
of the occurrence of any Event of Default which is continuing hereunder
or of any event not theretofore remedied which with notice or lapse of
time or both would constitute such an Event of Default and, if so,
stating in reasonable detail the facts with respect thereto, (ii) all
relevant facts in reasonable detail to evidence, and the computations
as to, whether or not the Company is in compliance with the
requirements set forth in subsections (b) and (c) of Section 5.2, and
(iii) a listing of all Principal Subsidiaries and consolidated
Subsidiaries of the Company showing the extent of its direct and
indirect holdings of their stocks;
(b) as soon as publicly available and in any event within 120
days after the end of each fiscal year of each of the Company and
EPNGC, a copy of the annual report for such year for each of the
Company and EPNGC and its respective consolidated Subsidiaries
containing financial statements for such year reported by nationally
recognized independent public accountants acceptable to the Lenders,
accompanied by (i) a report signed by said accountants stating that
such financial statements have been prepared in accordance with GAAP
and (ii) a letter from such accountants stating that in
44
making the investigations necessary for such report they obtained no
knowledge, except as specifically stated therein, of any Event of
Default which is continuing hereunder or of any event not theretofore
remedied which with notice or lapse of time or both would constitute
such an Event of Default (which letter may be limited in form, scope
and substance to the extent required by applicable accounting rules or
guidelines in effect from time to time);
(c) within 120 days after the close of each of the Company's
fiscal years, a certificate of the chief financial officer, controller
or treasurer of the Company stating (i) whether or not he has knowledge
of the occurrence of any Event of Default which is continuing hereunder
or of any event not theretofore remedied which with notice or lapse of
time or both would constitute such an Event of Default and, if so,
stating in reasonable detail the facts with respect thereto, (ii) all
relevant facts in reasonable detail to evidence, and the computations
as to, whether or not the Company is in compliance with the
requirements set forth in subsections (b) and (c) of Section 5.2 and
(iii) a listing of all Principal Subsidiaries and consolidated
Subsidiaries of the Company showing the extent of its direct and
indirect holdings of their stocks;
(d) promptly after the sending or filing thereof, copies of
all publicly available reports which the Company or any Principal
Subsidiary sends to any of its security holders and copies of all
publicly available reports and registration statements which the
Company or any Principal Subsidiary files with the Securities and
Exchange Commission or any national securities exchange other than
registration statements relating to employee benefit plans and to
registrations of securities for selling security holders;
(e) within 10 days after sending or filing thereof, a copy of
FERC Form No. 2: Annual Report of Major Natural Gas Companies, sent or
filed by the Company to or with the FERC with respect to each fiscal
year of the Company;
(f) promptly in writing, notice of all litigation and of all
proceedings before any governmental or regulatory agencies against or
involving the Company or any Principal Subsidiary, except any
litigation or proceeding which in the reasonable judgment of the
Company (taking into account the exhaustion of all appeals) is not
likely to have a material adverse effect on the consolidated financial
condition of the Company and its consolidated Subsidiaries taken as a
whole;
(g) within three Business Days after an executive officer of
the Company obtains knowledge of the occurrence of any Event of Default
which is continuing or of any event not theretofore remedied which with
notice or lapse of time, or both, would constitute an Event of Default,
notice of such occurrence together with a detailed statement by a
responsible officer of the Company of the steps being taken by the
Company or the appropriate Subsidiary to cure the effect of such event;
(h) as soon as practicable and in any event (i) within 30 days
after the Company or any ERISA Affiliate knows or has reason to know
that any Termination Event described in clause (a) of the definition of
Termination Event with respect to any Plan has occurred and (ii) within
10 days after the Company or any ERISA Affiliate knows or has reason to
know that any other Termination Event with respect to any Plan has
occurred, a statement of the chief financial officer or treasurer of
the Company
45
describing such Termination Event and the action, if any, which the
Company or such ERISA Affiliate proposes to take with respect thereto;
(i) promptly and in any event within two Business Days after
receipt thereof by the Company or any ERISA Affiliate, copies of each
notice received by the Company or any ERISA Affiliate from the PBGC
stating its intention to terminate any Plan or to have a trustee
appointed to administer any Plan;
(j) promptly and in any event within 30 days after the filing
thereof with the Internal Revenue Service, copies of each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) with
respect to each Single Employer Plan;
(k) promptly and in any event within five Business Days after
receipt thereof by the Company or any ERISA Affiliate from the sponsor
of a Multiemployer Plan, a copy of each notice received by the Company
or any ERISA Affiliate concerning (i) the imposition of Withdrawal
Liability by a Multiemployer Plan, (ii) the determination that a
Multiemployer Plan is, or is expected to be, in reorganization or
insolvent within the meaning of Title IV of ERISA, (iii) the
termination of a Multiemployer Plan within the meaning of Title IV of
ERISA, or (iv) the amount of liability incurred, or expected to be
incurred, by the Company or any ERISA Affiliate in connection with any
event described in clause (i), (ii) or (iii) above; and
as soon as practicable but in any event within 60 days of any
notice of request therefor, such other information respecting the
financial condition and results of operations of the Company or any
Subsidiary of the Company as any Lender through the Administrative
Agent may from time to time reasonably request.
Each balance sheet and other financial statement furnished
pursuant to subsections (a) and (b) of this Section 5.3 shall contain
comparative financial information which conforms to the presentation required in
Form 10-Q and 10-K, as appropriate, under the Securities Exchange Act of 1934,
as amended.
SECTION 5.4. Restrictions on Material Subsidiaries. The
Company will not, and will not permit any Material Subsidiary, to enter into any
agreement or understanding pursuant to which (a) any non-equity interest claim
the Company may have against any Material Subsidiary would be subordinate in any
manner to the payment of any other obligation of such Material Subsidiary (other
than waivers or subordination of subrogation, contribution or similar rights
under Guaranties and similar agreements) or (b) by its terms limits or restricts
the ability of such Material Subsidiary to make funds available to the Company
(whether by dividend or other distribution, by replacement of any inter-company
advance or otherwise) if, in any such case referred to in this Section 5.4,
there is, at the time any such agreement is entered into, a reasonable
likelihood that all such agreements and understandings, considered together,
would materially and adversely affect the ability of the Company to meet its
obligations as they become due.
46
ARTICLE VI
GUARANTEES
SECTION 6.1. Guarantees. (a) Subject to the provisions of
Section 6.1(b), each Borrower hereby unconditionally and irrevocably guarantees
to the Administrative Agent, for the ratable benefit of the Lenders and their
respective successors, indorsees, transferees and assigns, the prompt and
complete payment by each other Borrower when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations owing by such other
Borrower.
(b) Anything in this Article VI to the contrary
notwithstanding, the maximum liability of each Borrower (other than a Borrower
which is guaranteeing the Obligations of its Subsidiaries) under this Article VI
shall in no event exceed the amount which can be guaranteed by such Borrowing
Subsidiary under applicable federal and state laws relating to the insolvency of
debtors.
(c) Each Borrower agrees that the Obligations owing by any
other Borrower may at any time and from time to time exceed the amount of the
liability of such other Borrower under this Article VI without impairing the
guarantee of such Borrower under this Article VI or affecting the rights and
remedies of the Administrative Agent or any Lender under this Article VI.
(d) No payment or payments made by any Borrower or any other
Person or received or collected by the Administrative Agent or any Lender from
any Borrower or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application, at any time or from time to time, in
reduction of or in payment of the Obligations shall be deemed to modify, reduce,
release or otherwise affect the liability of the Borrowers under this Article VI
which shall, notwithstanding any such payment or payments, continue until the
Obligations are paid in full and the Commitments are terminated.
(e) Each Borrower agrees that whenever, at any time, or from
time to time, it shall make any payment to the Administrative Agent or any
Lender on account of its liability under this Article VI, it will notify the
Administrative Agent in writing that such payment is made under this Article VI
for such purpose.
SECTION 6.2. No Subrogation. Notwithstanding any payment or
payments made by any Borrower under this Article VI or any set-off or
application of funds of such Borrower by the Administrative Agent or any Lender,
such Borrower shall not be entitled to be subrogated to any of the rights of the
Administrative Agent or any Lender against any other Borrower or against any
collateral security or guarantee or right of offset held by the Administrative
Agent or any Lender for the payment of the Obligations, nor shall such Borrower
seek or be entitled to seek any contribution or reimbursement from any other
Borrower in respect of payments made by such Borrower hereunder, until all
amounts owing to the Administrative Agent and the Lenders by the other Borrowers
on account of the Obligations are paid in full and the Commitments are
terminated. If any amount shall be paid to any Borrower on account of such
subrogation rights at any time when all of the Obligations shall not have been
paid in full, such amount shall be held by such Borrower in trust for the
Administrative Agent and the Lenders, segregated from other funds of such
Borrower, and shall, forthwith upon receipt by such Borrower, be turned over to
the Administrative Agent in the exact form received by such
47
Borrower (duly indorsed by such Borrower to the Administrative Agent, if
required), to be applied against the Obligations, whether matured or unmatured,
in such order as the Administrative Agent may determine.
SECTION 6.3. Amendments, etc. with respect to the Obligations;
Waiver of Rights. Each Borrower shall remain obligated under this Article VI
notwithstanding that, without any reservation of rights against such Borrower,
and without notice to or further assent by such Borrower, any demand for payment
of any of the Obligations made by the Administrative Agent or any Lender may be
rescinded by the Administrative Agent or such Lender, and any of the Obligations
continued, and the Obligations, or the liability of any other party upon or for
any part thereof, or any collateral security or guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by the Administrative Agent or any Lender, and this
Agreement, any Notes and any other documents executed and delivered in
connection herewith may be amended, modified, supplemented or terminated, in
whole or in part, as the Administrative Agent (or the Majority Lenders, as the
case may be) may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by the Administrative Agent or any
Lender for the payment of the Obligations may be sold, exchanged, waived,
surrendered or released. Neither the Administrative Agent nor any Lender shall
have any obligation to protect, secure, perfect or insure any Lien at any time
held by it as security for the Obligations or for this Agreement or any property
subject thereto. When making any demand hereunder against any Borrower, the
Administrative Agent or any Lender may, but shall be under no obligation to,
make a similar demand on the applicable Borrowing Subsidiaries or any other
guarantor, and any failure by the Administrative Agent or any Lender to make any
such demand or to collect any payments from the other Borrowers or any such
other guarantor or any release of the other Borrowers or such other guarantor
shall not relieve such Borrower of its obligations or liabilities hereunder, and
shall not impair or affect the rights and remedies, express or implied, or as a
matter of law, of the Administrative Agent or any Lender against such Borrower
for the purposes hereof "demand" shall include the commencement and continuance
of any legal proceedings.
SECTION 6.4. Guarantee Absolute and Unconditional. Each
Borrower waives any and all notice of the creation, renewal, extension or
accrual of any of the Obligations and notice of or proof of reliance by the
Administrative Agent or any Lender upon this Agreement or acceptance of this
Agreement; the Obligations, and any of them, shall conclusively be deemed to
have been created, contracted or incurred, or renewed, extended, amended or
waived, in reliance upon this Agreement; and all dealings between any Borrower,
on the one hand, and the Administrative Agent and the Lenders, on the other,
shall likewise be conclusively presumed to have been had or consummated in
reliance upon this Agreement. Each Borrower waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon the
other Borrowers with respect to the Obligations. The guarantee contained in this
Article VI shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (a) the validity, regularity or
enforceability of this Agreement, any Note, any of the Obligations or any other
collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Administrative Agent or any
Lender, (b) any defense, set-off or counterclaim (other than a defense of
payment or performance) which may at any time be available to or be asserted by
any Borrower against the Administrative Agent or any Lender, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of any Borrower)
which constitutes, or might be construed to constitute, an equitable or legal
48
discharge of any Borrower for the Obligations, or of the Borrowers under this
Agreement, in bankruptcy or in any other instance. When pursuing its rights and
remedies hereunder against any Borrower, the Administrative Agent and any Lender
may, but shall be under no obligation to, pursue such rights and remedies as it
may have against any other Borrower or any other Person or against any
collateral security or guarantee for the Obligations or any right of offset with
respect thereto, and any failure by the Administrative Agent or any Lender to
pursue such other rights or remedies or to collect any payments from other
Borrowers or any such other Person or to realize upon any such collateral
security or guarantee or to exercise any such right of offset, or any release of
any other Borrower or any such other Person or of any such collateral security,
guarantee or right of offset, shall not relieve any Borrower of any liability
hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of the Administrative Agent or
any Lender against such Borrower. The guarantees contained in this Article VI
shall remain in full force and effect and be binding in accordance with and to
the extent of its terms upon each Borrower and its successors and assigns
thereof, and shall inure to the benefit of the Administrative Agent and the
Lenders, and their respective successors, indorsees, transferees and assigns,
until all the Obligations and the obligations of the Borrowers under this
Agreement shall have been satisfied by payment in full and the Commitments shall
be terminated, notwithstanding that from time to time during the term of this
Agreement the Borrowers may be free from any Obligations.
SECTION 6.5. Reinstatement. The provisions of this Article VI
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Obligations is rescinded or
must otherwise be restored or returned by the Administrative Agent or any Lender
upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of
any Borrower or upon or as a result of the appointment of a receiver, intervenor
or conservator of, or trustee or similar officer for, any Borrower or any
substantial part of its property, or otherwise, all as though such payments had
not been made.
ARTICLE VII
EVENTS OF DEFAULT
SECTION 7.1. Event of Default. If any of the following events
("Events of Default") shall occur and be continuing:
(a) Any Borrower shall fail to pay any installment of
principal of any of its Advances or Notes when due, or any interest on
any of its Advances or Notes or any other amount payable by it
hereunder within five Business Days after the same shall be due; or
(b) Any representation or warranty made or deemed made by any
Borrower herein or by any Borrower (or any of its officers) in
connection with this Agreement shall prove to have been incorrect in
any material respect when made or deemed made; or
(c) Any Borrower shall fail to perform or observe any other
term, covenant or agreement contained in this Agreement on its part to
be performed or observed and any such failure shall remain unremedied
for 30 days after written notice thereof shall have been given to such
Borrower by the Administrative Agent or by any Lender with a copy to
the Administrative Agent; or
49
(d) The Company or any Principal Subsidiary shall fail to pay
any Debt or Guaranty (excluding Debt incurred pursuant hereto) of the
Company or such Principal Subsidiary in an aggregate principal amount
of $200,000,000 or more, at such time, or any installment of principal
thereof or interest or premium thereon, when due (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise) and
such failure shall continue after the applicable grace period, if any,
specified in the agreement or instrument relating to such Debt or
Guaranty; or any other default under any agreement or instrument
relating to any such Debt, or any other event, shall occur and shall
continue after the applicable grace period, if any, specified in such
agreement or instrument, if the effect of such default or event is to
accelerate the maturity of such Debt; or any such Debt shall be
required to be prepaid (other than by a regularly scheduled required
prepayment), prior to the stated maturity thereof, as a result of
either (i) any default under any agreement or instrument relating to
any such Debt or (ii) the occurrence of any other event (other than an
issuance, sale or other disposition of stock or other assets, or an
incurrence or issuance of Indebtedness or other obligations, giving
rise to a repayment or prepayment obligation in respect of such Debt)
the effect of which would otherwise be to accelerate the maturity of
such Debt; provided that, notwithstanding any provision contained in
this subsection (d) to the contrary, to the extent that pursuant to the
terms of any agreement or instrument relating to any Debt or Guaranty
referred to in this subsection (d) (or in the case of any such
Guaranty, relating to any obligations Guaranteed thereby), any sale,
pledge or disposal of Margin Stock, or utilization of the proceeds of
such sale, pledge or disposal, would result in a breach of any covenant
contained therein or otherwise give rise to a default or event of
default thereunder and/or acceleration of the maturity of the Debt or
obligations extended pursuant thereto, or payment pursuant to any
Guaranty, and as a result of such terms or of such sale, pledge,
disposal, utilization, breach, default, event of default or
acceleration or nonpayment under such Guaranty, or the provisions
thereof relating thereto, this Agreement or any Advance hereunder would
otherwise be subject to the margin requirements or any other
restriction under Regulation U issued by the Board of Governors of the
Federal Reserve System, then such breach, default, event of default or
acceleration, or nonpayment under any Guaranty, shall not constitute a
default or Event of Default under this subsection (d); or
(e) (i) The Company or any Principal Subsidiary shall (A)
generally not pay its debts as such debts become due; or (B) admit in
writing its inability to pay its debts generally; or (C) make a general
assignment for the benefit of creditors; or (ii) any proceeding shall
be instituted or consented to by the Company or any Principal
Subsidiary seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment
of a receiver, trustee, or other similar official for it or for any
substantial part of its property; or (iii) any such proceeding shall
have been instituted against the Company or any Principal Subsidiary
and either such proceeding shall not be stayed or dismissed for 60
consecutive days or any of the actions referred to above sought in such
proceeding (including the entry of an order for relief against it or
the appointment of a receiver, trustee, custodian or other similar
official for it or any substantial part of its property) shall occur;
or (iv) the Company or any Principal Subsidiary shall take any
corporate action to authorize any of the actions set forth above in
this subsection (e); or
50
(f) Any judgment or order of any court for the payment of
money in excess of $100,000,000 shall be rendered against the Company
or any Principal Subsidiary and either (i) enforcement proceedings
shall have been commenced and are continuing or have been completed by
any creditor upon such judgment or order (other than any enforcement
proceedings consisting of the mere obtaining and filing of a judgment
lien or obtaining of a garnishment or similar order so long as no
foreclosure, levy or similar process in respect of such lien, or
payment over in respect of such garnishment or similar order, has
commenced and is continuing or has been completed) or (ii) there shall
be any period of 30 consecutive days during which a stay of execution
or of enforcement proceedings (other than those referred to in the
parenthesis in clause (i) above) in respect of such judgment or order,
by reason of a pending appeal, bonding or otherwise, shall not be in
effect; or
(g) (i) Any Termination Event with respect to a Plan shall
have occurred and, 30 days after notice thereof shall have been given
to the Company by the Administrative Agent, such Termination Event
shall still exist; or (ii) the Company or any ERISA Affiliate shall
have been notified by the sponsor of a Multiemployer Plan that it has
incurred Withdrawal Liability to such Multiemployer Plan; or (iii) the
Company or any ERISA Affiliate shall have been notified by the sponsor
of a Multiemployer Plan that such Multiemployer Plan is in
reorganization, or is insolvent or is being terminated, within the
meaning of Title IV of ERISA; or (iv) any Person shall engage in a
"prohibited transaction" (as defined in Section 406 of ERISA or Section
4975 of the Code) involving any Plan; and in each case in clauses (i)
through (iv) above, such event or condition, together with all other
such events or conditions, if any, would result in an aggregate
liability of the Company or any ERISA Affiliate that would exceed 10%
of Net Worth; or
(h) Upon completion of, and pursuant to, a transaction, or a
series of transactions (which may include prior acquisitions of capital
stock of the Company in the open market or otherwise), involving a
tender offer (i) a "person" (within the meaning of Section 13(d) of the
Securities Exchange Act of 1934) other than the Company or a Subsidiary
of the Company or any employee benefit plan maintained for employees of
the Company and/or any of its Subsidiaries or the trustee therefor,
shall have acquired direct or indirect ownership of and paid for in
excess of 50% of the outstanding capital stock of the Company entitled
to vote in elections for directors of the Company and (ii) at any time
before the later of (A) six months after the completion of such tender
offer and (B) the next annual meeting of the shareholders of the
Company following the completion of such tender offer more than half of
the directors of the Company consists of individuals who (1) were not
directors before the completion of such tender offer and (2) were not
appointed, elected or nominated by the Board of Directors in office
prior to the completion of such tender offer (other than any such
appointment, election or nomination required or agreed to in connection
with, or as a result of, the completion of such tender offer); or
(i) Any event of default shall occur under any agreement or
instrument relating to or evidencing any Debt now or hereafter existing
of the Company or any Principal Subsidiary as the result of any change
of control of the Company; or
(j) Any of the Guarantees contained in Article VI shall cease,
for any reason, to be in full force and effect or any Borrower shall so
assert; provided that if, within one Business Day after any Borrower
receives notice from the Administrative Agent or
51
otherwise becomes aware that such Guarantee is not in full force and
effect, the Company delivers written notice to the Administrative Agent
that the applicable Borrower intends to deliver a valid and effective
Guarantee, or to reinstate such Guarantee, as soon as possible, then an
Event of Default shall not exist pursuant this Section 7.1(j) unless
the Company shall fail to deliver or reinstate or cause to be delivered
or reinstated a Guarantee of the applicable Borrower having the same
economic effect as the Guarantee set forth in Article VI within four
Business Days after the delivery of such written notice of intent;
then, and in any such event, the Administrative Agent shall at the request, or
may with the consent, of the Majority Lenders, by notice to the Company, (i)
declare the obligation of each Lender to make Advances to be terminated,
whereupon the same shall forthwith terminate, and (ii) declare the Advances and
the Notes, all interest thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Advances and the Notes,
all such interest and all such amounts shall become and be forthwith due and
payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by the Borrowers; provided, however, that
if an Event of Default under subsection (e) of this Section 7.1 (except under
clause (i)(A) thereof) shall occur, (A) the obligation of each Lender to make
Advances shall automatically be terminated and (B) the Advances and the Notes,
all interest thereon and all other amounts payable under this Agreement shall
automatically become and be forthwith due and payable, without presentment,
demand, protest or any notice of any kind, all of which are hereby expressly
waived by the Borrowers.
ARTICLE VIII
THE ADMINISTRATIVE AGENT AND THE CAF ADVANCE AGENT
SECTION 8.1. Authorization and Action. Each Lender hereby
appoints and authorizes the Administrative Agent and the CAF Advance Agent to
take such action as agent on its behalf and to exercise such powers under this
Agreement as are delegated to the Administrative Agent and the CAF Advance Agent
by the terms hereof, together with such powers as are reasonably incidental
thereto. As to any matters not expressly provided for by this Agreement
(including enforcement of this Agreement or collection of the Notes), the
Administrative Agent and the CAF Advance Agent shall not be required to exercise
any discretion or take any action, but shall be required to act or to refrain
from acting (and shall be fully protected in so acting or refraining from
acting) upon the instructions of the Majority Lenders, and such instructions
shall be binding upon all Lenders and all holders of Notes; provided, however,
that the Administrative Agent and the CAF Advance Agent shall not be required to
take any action which exposes the Administrative Agent or the CAF Advance Agent
to personal liability or which is contrary to this Agreement or applicable law.
The Administrative Agent and the CAF Advance Agent agree to give to each Lender
prompt notice of each notice given to it by any Borrower pursuant to the terms
of this Agreement.
SECTION 8.2. Administrative Agent's and CAF Advance Agent's
Reliance, Etc. None of the Administrative Agent, the CAF Advance Agent or any of
its respective directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
this Agreement, except for its or their own gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, the
Administrative Agent and the CAF Advance Agent: (i) may treat the payee of any
Note as the
52
holder thereof until the Administrative Agent receives and accepts an Assignment
and Acceptance entered into by the Lender which is the payee of such Note, as
assignor, and an Eligible Assignee, as assignee, as provided in Section 9.7;
(ii) may consult with legal counsel (including counsel for the Company),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (iii) makes
no warranty or representation to any Lender and shall not be responsible to any
Lender for any statements, warranties or representations (whether written or
oral) made in or in connection with this Agreement; (iv) shall not have any duty
to ascertain or to inquire as to the performance or observance of any of the
terms, covenants or conditions of this Agreement on the part of the Borrowers or
to inspect the property (including the books and records) of the Borrowers; (v)
shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement or
any other instrument or document furnished pursuant hereto; and (vi) shall incur
no liability under or in respect of this Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telegram,
telecopier, cable or telex) believed by it to be genuine and signed or sent by
the proper party or parties.
SECTION 8.3. JPMorgan and Affiliates. With respect to its
Commitment, the Advances made by it and the Note issued to it, JPMorgan shall
have the same rights and powers under this Agreement as any other Lender and may
exercise the same as though it were not the Administrative Agent or the CAF
Advance Agent; and the term "Lender" or "Lenders" shall, unless otherwise
expressly indicated, include JPMorgan in its individual capacity. JPMorgan and
its affiliates may accept deposits from, lend money to, act as trustee under
indentures of, and generally engage in any kind of business with, the Company,
any of its Subsidiaries and any Person who may do business with or own
securities of the Company or any of its Subsidiaries, all as if JPMorgan were
not the Administrative Agent or the CAF Advance Agent and without any duty to
account therefor to the other Lenders.
SECTION 8.4. Lender Credit Decision. Each Lender acknowledges
that it has, independently and without reliance upon the Administrative Agent,
the CAF Advance Agent or any other Lender and based on the financial statements
referred to in Section 4.1 and such other documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without
reliance upon the Administrative Agent, the CAF Advance Agent or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement.
SECTION 8.5. Indemnification. The Lenders agree to indemnify
the Administrative Agent and the CAF Advance Agent (to the extent not reimbursed
by the Borrowers), ratably according to the respective principal amounts of the
Advances then outstanding by each of them (or if no Advances are at the time
outstanding or if any Notes are held by Persons which are not Lenders, ratably
according to the respective amounts of their aggregate Commitments), from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by, or asserted against the
Administrative Agent or the CAF Advance Agent in any way relating to or arising
out of this Agreement or any action taken or omitted by the Administrative Agent
or the CAF Advance Agent under this Agreement, provided that no Lender shall be
liable for any portion of such liabilities, obligations, losses,
53
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Administrative Agent's or the CAF Advance Agent's gross
negligence or willful misconduct. Without limitation of the foregoing, each
Lender agrees to reimburse the Administrative Agent and the CAF Advance Agent
promptly upon demand for its ratable share of any out-of-pocket expenses
(including reasonable counsel fees) incurred by the Administrative Agent or the
CAF Advance Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings, in bankruptcy or insolvency proceedings, or
otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement, to the extent that the Administrative Agent or the CAF Advance
Agent is not reimbursed for such expenses by the Borrowers.
SECTION 8.6. Successor Administrative Agent and CAF Advance
Agent. The Administrative Agent and the CAF Advance Agent may resign at any time
by giving written notice thereof to the Lenders and the Company and may be
removed at any time with or without cause by the Majority Lenders. Upon any such
resignation or removal, the Majority Lenders shall have the right to appoint a
successor Administrative Agent or the CAF Advance Agent. If no successor
Administrative Agent or CAF Advance Agent shall have been so appointed by the
Majority Lenders, and shall have accepted such appointment, within 30 days after
the retiring Administrative Agent's or the CAF Advance Agent's giving of notice
of resignation or the Majority Lenders' removal of the retiring Administrative
Agent or CAF Advance Agent, then such retiring Administrative Agent or CAF
Advance Agent may, on behalf of the Lenders, appoint a successor Administrative
Agent or CAF Advance Agent, which shall be a Lender and a commercial bank
organized, or authorized to conduct a banking business, under the laws of the
United States of America or of any State thereof and having a combined capital
and surplus of at least $500,000,000. Upon the acceptance of any appointment as
Administrative Agent or CAF Advance Agent hereunder by a successor
Administrative Agent or CAF Advance Agent, such successor Administrative Agent
or CAF Advance Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent or
CAF Advance Agent, and the retiring Administrative Agent or CAF Advance Agent
shall be discharged from its duties and obligations under this Agreement. After
any retiring Administrative Agent's or CAF Advance Agent's resignation or
removal hereunder as Administrative Agent or CAF Advance Agent, the provisions
of this Article VII shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent or CAF Advance Agent
under this Agreement.
SECTION 8.7. Co-Syndication Agents; Co-Documentation Agents.
None of the Lenders identified on the cover page or signature pages or in the
preamble of this Agreement as a "co-syndication agent" or "co-documentation
agent" shall have any right, power, obligation, liability, responsibility or
duty under this Agreement other than those applicable to all Lenders as such.
Without limiting the foregoing, none of the Lenders so identified as a
"co-syndication agent" or "co-documentation agent" shall have or be deemed to
have any fiduciary relationship with any Lender. Each Lender acknowledges that
it has not relied, and will not rely, on any of the Lenders so identified in
deciding to enter into this Agreement or in taking or not taking action
hereunder.
54
ARTICLE IX
MISCELLANEOUS
SECTION 9.1. Amendments, Etc. An amendment or waiver of any
provision of this Agreement or the Notes, or a consent to any departure by any
Borrower therefrom, shall be effective against the Lenders and all holders of
the Notes if, but only if, it shall be in writing and signed or consented to in
writing by the Majority Lenders, and then such a waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no such amendment, waiver or consent shall,
unless in writing and signed by all the Lenders, be effective to: (a) waive any
of the conditions specified in Article III, (b) except as contemplated by
Sections 2.4, 2.5, 2.23 and 2.25, increase or extend the Commitments of the
Lenders or subject the Lenders to any additional obligations, (c) reduce the
principal of, or interest on, any Advance or the Notes or any facility fees
hereunder, (d) postpone any date fixed for any payment of principal of, or
interest on, any Advance or the Notes or any facility fees hereunder, (e) change
the percentage of the Commitments or of the aggregate unpaid principal amount of
any Advance or the Notes, or the number of Lenders, which shall be required for
the Lenders or any of them to take any action under this Agreement, (f) amend
this Section 9.1 or Section 2.21, (g) amend, waive or consent to any departure
of any provision in Article VI or (h) except as provided below, release any
Borrower from its guarantee in Article VI; provided, further, that no amendment,
waiver or consent shall, unless in writing and signed by the Administrative
Agent and the CAF Advance Agent in addition to the Lenders required hereinabove
to take such action, affect the rights or duties of the Administrative Agent or
the CAF Advance Agent under this Agreement or any Note; provided, still further,
that the guarantee of a Borrower under Article VI shall be released
automatically upon (i) the sale by the Company of such Borrower, provided that
such sale is permitted under this Agreement, or (ii) such Borrower ceasing to be
a Borrower (it being understood that the Company and EPNGC shall never cease to
be a Borrower hereunder).
SECTION 9.2. Notices, Etc. Except as otherwise provided in
Section 2.2(a), 2.5(d) or 2.15(b), all notices and other communications provided
for hereunder shall be in writing (including telecopier and other readable
communication) and mailed by certified mail, return receipt requested,
telecopied or otherwise transmitted or delivered, if to any Borrower, c/o the
Company at El Paso Building, 0000 Xxxxxxxxx Xxxxxx, Xxxxxxx, Xxxxx 00000,
Attention: Executive Vice President and Chief Financial Officer, Telecopier:
(000) 000-0000; if to any Lender, at its address set forth in its Administrative
Questionnaire; if to the Administrative Agent, at 000 Xxxx Xxxxxx, 00xx xxxxx,
Xxx Xxxx, Xxx Xxxx 00000, Attention: Xxxxx Xxxx, Telecopier: (000) 000-0000,
Telephone: (000) 000-0000; and if to the CAF Advance Agent, at One Chase
Xxxxxxxxx Xxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Xxxxxx Xxxx,
Telecopier: (000) 000-0000, Telephone: (000) 000-0000; or, as to each party and
each Borrowing Subsidiary, at such other address as shall be designated by such
party in a written notice to the other parties. The Administrative Agent will
promptly provide to the Company a copy of each Administrative Questionnaire
received in connection with this Agreement. All such notices and communications
shall, if so mailed, telecopied or otherwise transmitted, be effective when
received, if mailed, or when the appropriate answerback or other evidence of
receipt is given, if telecopied or otherwise transmitted, respectively. A notice
received by the Administrative Agent, the CAF Advance Agent or a Lender by
telephone pursuant to Section 2.2(a), 2.5(d) or 2.15(a) shall be effective if
the Administrative Agent or Lender believes in good
55
faith that it was given by an authorized representative of the applicable
Borrower and acts pursuant thereto, notwithstanding the absence of written
confirmation or any contradictory provision thereof. Notices and other
communications to the Lenders hereunder may be delivered or furnished by email
communications pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Article II
unless otherwise agreed by the Administrative Agent and the applicable Lender.
The Administrative Agent or the Borrowers each may, in their discretion, agree
to accept notices and other communications to it hereunder by email
communications pursuant to procedures approved by it; provided that approval of
such procedures may be limited to particular notices or communications.
SECTION 9.3. No Waiver; Remedies. No failure on the part of
any Lender, the Administrative Agent or the CAF Advance Agent to exercise, and
no delay in exercising, any right hereunder or under any Note shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
or under any Note preclude any other or further exercise thereof or the exercise
of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.
SECTION 9.4. Costs and Expenses; Indemnity. (a) Each Borrower
agrees to pay on demand (to the extent not reimbursed by any other Borrower) (i)
all reasonable fees and out-of-pocket expenses of counsel for the Administrative
Agent in connection with the preparation, execution and delivery of this
Agreement, the Notes and the other documents to be delivered hereunder and the
fulfillment or attempted fulfillment of conditions precedent hereunder, (ii) all
reasonable costs and expenses incurred by the Administrative Agent and its
Affiliates in initially syndicating all or any portion of the Commitments
hereunder, including the related reasonable fees and out-of-pocket expenses of
counsel for the Administrative Agent or its Affiliates, travel expenses,
duplication and printing costs and courier and postage fees, and excluding any
syndication fees paid to other parties joining the syndicate and (iii) all
out-of-pocket costs and expenses, if any, incurred by the Administrative Agent,
the CAF Advance Agent and the Lenders in connection with the enforcement
(whether through negotiations, legal proceedings in bankruptcy or insolvency
proceedings, or otherwise) of this Agreement, the Notes and the other documents
to be delivered hereunder and thereunder, including the reasonable fees and
out-of-pocket expenses of counsel.
(b) If any payment of principal of, or Conversion of, any
Eurodollar Rate Advance or CAF Advance is made by any Borrower to or for the
account of a Lender on any day other than the last day of the Interest Period
for such Advance, as a result of a prepayment pursuant to Section 2.15 or a
Conversion pursuant to Section 2.13(f) or Section 2.14 or due to acceleration of
the maturity of the Advances and the Notes pursuant to Section 7.1 or due to any
other reason attributable to such Borrower, or if any Borrower shall fail to
make a borrowing of Eurodollar Rate Advances or CAF Advances after such Borrower
has given a notice requesting the same in accordance with the provisions of this
Agreement, such Borrower shall, upon demand by such Lender (with a copy of such
demand to the Administrative Agent), pay to the Administrative Agent for the
account of such Lender any amounts required to compensate such Lender for any
additional losses, costs or expenses which it may reasonably incur as a result
of such payment, Conversion or failure to borrow, including any loss (excluding
loss of anticipated profits), cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by any Lender to
fund or maintain such Advance.
56
(c) Each Borrower agrees to indemnify and hold harmless the
Administrative Agent, the CAF Advance Agent and each Lender (to the extent not
reimbursed by any other Borrower) from and against any and all claims, damages,
liabilities and expenses (including fees and disbursements of counsel) which may
be incurred by or asserted against the Administrative Agent, the CAF Advance
Agent or such Lender in connection with or arising out of any investigation,
litigation, or proceeding (whether or not the Administrative Agent, the CAF
Advance Agent or such Lender is party thereto) related to any acquisition or
proposed acquisition by the Company, or by any Subsidiary of the Company, of all
or any portion of the stock or substantially all the assets of any Person or any
use or proposed use of the Advances by any Borrower (excluding any claims,
damages, liabilities or expenses incurred by reason of the gross negligence or
willful misconduct of the party to be indemnified or its employees or agents, or
by reason of any use or disclosure of information relating to any such
acquisition or use or proposed use of the proceeds by the party to be
indemnified or its employees or agents).
SECTION 9.5. Right of Set-Off. Upon the declaration of the
Advances and the Notes as due and payable pursuant to the provisions of Section
7.1, each Lender is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Lender to or for the credit or the
account of the applicable Borrower against any and all of the obligations of
such Borrower now or hereafter existing under this Agreement and the Notes of
such Borrower held by such Lender, irrespective of whether or not such Lender
shall have made any demand under this Agreement or such Notes and although such
obligations may be unmatured. Each Lender agrees promptly to notify the Company
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. The rights of each Lender under this Section 9.5 are in addition to
other rights and remedies (including other rights of set-off) which such Lender
may have.
SECTION 9.6. Binding Effect. This Agreement shall become
effective in accordance with the provisions of Section 3.1, and thereafter shall
be binding upon and inure to the benefit of the Borrowers, the Administrative
Agent, the CAF Advance Agent and each Lender and their respective successors and
assigns, except that no Borrower shall have the right to assign its rights or
obligations hereunder or any interest herein in a transaction not permitted by
Section 5.2(e) without the prior written consent of all of the Lenders.
SECTION 9.7. Assignments and Participations
(a) Each Lender may assign to one or more banks or other
financial institutions all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment, the Advances owing to
it and the Notes held by it); provided, however, that (i) each such assignment
shall be of a constant, and not a varying, percentage of all such Lender's
rights and obligations under this Agreement, (ii) the amount of the Commitment
of the assigning Lender being assigned to an assignee pursuant to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $15,000,000 (or, if
less, the entire Commitment of the assigning Lender) and shall be an integral
multiple of $1,000,000, (iii) each such assignment shall be to an Eligible
Assignee, and (iv) the parties to each such assignment shall execute and deliver
to the Administrative Agent, for its acceptance and recording in the Register,
an Assignment and Acceptance, together with any Notes subject to such assignment
and a processing and recordation fee of $2,500, and shall send to the Company an
executed counterpart of such Assignment and Acceptance. Upon
57
such execution, delivery, acceptance and recording, from and after the effective
date specified in each Assignment and Acceptance, (A) the assignee thereunder
shall be a party hereto and, to the extent that rights and obligations hereunder
have been assigned to it pursuant to such Assignment and Acceptance, have the
rights and obligations of a Lender hereunder and (B) the assigning Lender
thereunder shall, to the extent that rights and obligations hereunder have been
assigned by it pursuant to such Assignment and Acceptance, relinquish its rights
and be released from its obligations under this Agreement (and, in the case of
an Assignment and Acceptance covering all or the remaining portion of an
assigning Lender's rights and obligations under this Agreement, such Lender
shall cease to be a party hereto).
(b) By executing and delivering an Assignment and Acceptance,
each Lender assignor thereunder and the assignee thereunder confirm to and agree
with each other and the other parties hereto as follows: (i) other than as
provided in such Assignment and Acceptance, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto; (ii) such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of each Borrower or the performance or observance by each Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.1 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Administrative Agent, the CAF Advance Agent, such assigning
Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (v) such assignee confirms
that it is (subject to approval in writing by the Company and, if applicable,
the Administrative Agent to the extent required by the definition of "Eligible
Assignee") an Eligible Assignee; (vi) such assignee appoints and authorizes the
Administrative Agent and the CAF Advance Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement as are delegated to
the Administrative Agent and the CAF Advance Agent by the terms hereof, together
with such powers as are reasonably incidental thereto; and (vii) such assignee
agrees that it will perform in accordance with their terms all of the
obligations which by the terms of this Agreement are required to be performed by
it as a Lender.
(c) The Administrative Agent shall maintain at its address
referred to in Section 9.2 a copy of each Assignment and Acceptance delivered to
and accepted by it and a register (which register may be in electronic form) for
the recordation of the names and addresses of the Lenders and the Commitment of,
and principal amount of the Advances owing to, each Lender from time to time
(the "Register"). The entries in the Register shall be conclusive and binding
for all purposes, absent manifest error, and each Borrower, the Administrative
Agent, the CAF Advance Agent and the Lenders may treat each Person whose name is
recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by any Borrower or any
Lender at any reasonable time and from time to time upon reasonable prior
notice. Upon the acceptance of any Assignment and Acceptance for recordation in
the Register, Schedule I hereto shall be deemed to be amended to reflect the
revised Commitments of the Lenders parties to such Assignment and Acceptance and
58
if any assignee under this Section 9.7 shall not be a Lender at the time of the
assignment it also shall deliver to the Administrative Agent an Administrative
Questionnaire.
(d) Upon its receipt of an Assignment and Acceptance executed
by an assigning Lender and as assignee representing that it is an Eligible
Assignee, together with any Notes subject to such assignment, the Administrative
Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit G hereto, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Company. Within five Business Days after
its receipt of such notice and its receipt of an executed counterpart of such
Assignment and Acceptance, the Borrowers, at their own expense, shall execute
and deliver to the Administrative Agent in exchange for the surrendered Notes,
if any, new Notes to the order of such Eligible Assignee, if requested, in an
amount equal to the Commitment assumed by it pursuant to such Assignment and
Acceptance and, if the assigning Lender has retained a Commitment hereunder, new
Notes, if requested, to the order of the assigning Lender in an amount equal to
the Commitment retained by it hereunder. Such new Notes, if any, shall be in an
aggregate principal amount equal to the aggregate principal amount of such
surrendered Notes, if any, shall be dated (A) in the case of Notes made by the
Company, EPNGC and Tennessee the Closing Date and (B) in the case of Notes made
by any other Borrower, the date such other Borrower executes and delivers its
Joinder Agreement, and shall otherwise be in substantially the form of Exhibit
A.
(e) Each Lender may sell participations to one or more banks
or other entities in or to all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment, and the Advances
owing to it and the Notes held by it); provided, however, that (i) such Lender's
obligations under this Agreement (including its Commitment to the Borrowers
hereunder) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) such Lender shall remain the holder of any such Notes for all purposes of
this Agreement, (iv) the Borrowers, the Administrative Agent, the CAF Advance
Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement, (v) such Lender shall continue to be able to agree to any
modification or amendment of this Agreement or any waiver hereunder without the
consent, approval or vote of any such participant or group of participants,
other than modifications, amendments and waivers which (A) postpone any date
fixed for any payment of, or reduce any payment of, principal of or interest on
such Lender's Advances or Notes or any facility fees payable under this
Agreement, or (B) increase the amount of such Lender's Commitment in a manner
which would have the effect of increasing the amount of a participant's
participation, or (C) reduce the interest rate payable under this Agreement and
such Lender's Notes, or (D) consent to the assignment or the transfer by any
Borrower of any of its rights and obligations under the Agreement, and (vi)
except as contemplated by the immediately preceding clause (v), no participant
shall be deemed to be or to have any of the rights or obligations of a "Lender"
hereunder.
(f) Any Lender may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
9.7, disclose to the assignee or participant or proposed assignee or
participant, any information relating to the Borrowers furnished to such Lender
by or on behalf of the Borrowers; provided that, prior to any such disclosure,
the assignee or participant or proposed assignee or participant shall agree in
writing for the benefit of the Borrowers to preserve the confidentiality of any
confidential information
59
relating to the Borrowers received by it from such Lender in a manner consistent
with Section 9.8.
(g) Anything in this Agreement to the contrary
notwithstanding, any Lender may at any time create a security interest in all or
any portion of its rights under this Agreement (including the Advances owing to
it) and the Notes issued to it hereunder in favor of any Federal Reserve Bank in
accordance with Regulation A of the Board of Governors of the Federal Reserve
System (or any successor regulation) and the applicable operating circular of
such Federal Reserve Bank.
SECTION 9.8. Confidentiality. Each Lender, the Administrative
Agent and the CAF Advance Agent (each, a "Party") agrees that it will use its
best efforts not to disclose, without the prior consent of the Company (other
than to its, or its Affiliate's, employees, auditors, accountants, counsel or
other representatives, whether existing at the date of this Agreement or any
subsequent time), any information with respect to the Borrowers which is
furnished pursuant to this Agreement, provided that any Party may disclose any
such information (i) as has become generally available to the public, (ii) as
may be required or appropriate in any report, statement or testimony submitted
to any municipal, state or Federal regulatory body having or claiming to have
jurisdiction over such party or to the Board of Governors of the Federal Reserve
System or the Federal Deposit Insurance Corporation or similar organizations
(whether in the United States or elsewhere) or their successors, (iii) as may be
required or appropriate in response to any summons or subpoena or in connection
with any litigation or regulatory proceeding, (iv) in order to comply with any
law, order, regulation or ruling applicable to such party, or (v) to any
prospective assignee or participant in connection with any contemplated
assignment of any rights or obligations hereunder, or any sale of any
participation therein, by such Party pursuant to Section 9.7, if such
prospective assignee or participant, as the case may be, executes an agreement
with the Company containing provisions substantially similar to those contained
in this Section 9.8; provided, however, that the Company acknowledges that the
Administrative Agent has disclosed and may continue to disclose such information
as the Administrative Agent in its sole discretion determines is appropriate to
the Lenders from time to time.
SECTION 9.9. Consent to Jurisdiction. (a) Each Borrower hereby
irrevocably submits to the jurisdiction of any New York State or Federal court
sitting in New York City and any appellate court from any thereof in any action
or proceeding by the Administrative Agent, the CAF Advance Agent, any Lender or
the holder of any Note in respect of, but only in respect of, any claims or
causes of action arising out of or relating to this Agreement or the Notes (such
claims and causes of action, collectively, being "Permitted Claims"), and each
Borrower hereby irrevocably agrees that all Permitted Claims may be heard and
determined in such New York State court or in such Federal court. Each Borrower
hereby irrevocably waives, to the fullest extent it may effectively do so, the
defense of an inconvenient forum to the maintenance of such action or proceeding
in any aforementioned court in respect of Permitted Claims. Each Borrower hereby
irrevocably appoints CT Corporation System (the "Process Agent"), with an office
on the date hereof at 000 Xxxxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000,
as its agent to receive on behalf of such Borrower and its property service of
copies of the summons and complaint and any other process which may be served by
the Administrative Agent, any Lender or the holder of any Note in any such
action or proceeding in any aforementioned court in respect of Permitted Claims.
Such service may be made by delivering a copy of such process to the Company by
courier and by certified mail (return receipt requested), fees and postage
60
prepaid, both (i) in care of the Process Agent at the Process Agent's above
address and (ii) at the Company's address specified pursuant to Section 9.2, and
each Borrower hereby irrevocably authorizes and directs the Process Agent to
accept such service on its behalf. Each Borrower agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
(b) Nothing in this Section 9.9 (i) shall affect the right of
any Lender, the holder of any Note or the Administrative Agent or the CAF
Advance Agent to serve legal process in any other manner permitted by law or
affect any right otherwise existing of any Lender, the holder of any Note or the
Administrative Agent or the CAF Advance Agent to bring any action or proceeding
against any Borrower or its property in the courts of other jurisdictions or
(ii) shall be deemed to be a general consent to jurisdiction in any particular
court or a general waiver of any defense or a consent to jurisdiction of the
courts expressly referred to in subsection (a) above in any action or proceeding
in respect of any claim or cause of action other than Permitted Claims.
SECTION 9.10. GOVERNING LAW. THIS AGREEMENT AND THE NOTES
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.
SECTION 9.11. Rate of Interest. It is the intention of the
parties hereto that each Lender shall each conform strictly to usury laws
applicable to it. Accordingly, if the transactions contemplated hereby would be
usurious as to any Lender under laws applicable to it, then, in that event,
notwithstanding anything to the contrary in this Agreement or in the Notes to
the order of such Lender, it is agreed as follows: (a) the aggregate of all
consideration which constitutes interest under law applicable to such Lender
that is contracted for, taken, reserved, charged or received by such Lender
hereunder, or under such Notes or otherwise, shall under no circumstances exceed
the maximum amount allowed by such applicable law, and any excess shall be
credited by such Lender on the principal amount of the sums owed to such Lender
(or, if all amounts owing to such Lender shall have been paid in full, refunded
by such Lender to the applicable Borrower); or (b) in the event that a
prepayment of any Advances owed to any Lender is required, then such
consideration that constitutes interest under law applicable to such Lender may
never include more than the maximum amount allowed by such applicable law, and
excess interest, if any, provided for shall be cancelled automatically by such
Lender as of the date of such prepayment and, if theretofore paid, shall be
credited by such Lender on the principal amount of such prepayment obligation
(or, if the principal amount of such prepayment obligation shall have been paid
in full, refunded by such Lender to the applicable Borrower). To the extent that
Article 5069-1.0001 of the Texas Revised Civil Statutes is relevant to any
Lender for the purpose of determining the maximum amount of interest allowed by
applicable law, such Lender hereby elects to determine the applicable rate
ceiling under such Article by the indicated (weekly) rate ceiling from time to
time in effect, subject to such Lender's right subsequently to change such
method in accordance with applicable law. In no event, however, shall Chapter
346 of the Texas Finance Code apply to this Agreement or the Notes or the
transactions contemplated hereby.
SECTION 9.12. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery to the Administrative Agent of a counterpart
61
executed by a Lender shall constitute delivery of such counterpart to all of the
Lenders. This Agreement may be delivered by facsimile transmission of the
relevant signature pages hereof.
SECTION 9.13. Existing 364-Day Facility. The undersigned agree
and acknowledge that, except for provisions that expressly provide for their
survival of termination, the Existing 364-Day Facility is terminated and all
Commitments thereunder (as defined in the Existing 364-Day Facility) are
terminated, and the undersigned waive any right to receive any notice of such
termination. Each Lender that was a party to the Existing 364-Day Facility
agrees to return to the Borrower, with reasonable promptness, all Notes (as
defined in the Existing 364-Day Facility) delivered by the Borrower to such
Lender under the Existing 364-Day Facility.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed and delivered by their respective duly authorized
officers as of the date first above written.
EL PASO CORPORATION
By: /s/ Xxxx Xxxxxx
----------------------------------------
Name: Xxxx Xxxxxx
Title: Vice President
EL PASO NATURAL GAS COMPANY
By: /s/ Xxxx X. Xxxxxx
----------------------------------------
Name: Xxxx X. Xxxxxx
Title: Senior Vice President and
Chief Financial Officer
TENNESSEE GAS PIPELINE COMPANY
By: /s/ Xxxx X. Xxxxxx
----------------------------------------
Name: Xxxx X. Xxxxxx
Title: Senior Vice President and
Chief Financial Officer
JPMORGAN CHASE BANK, as
Administrative Agent, CAF Advance
Agent and as Lender
By: /s/ Xxxxxx Xxxx
----------------------------------------
Name: Xxxxxx Xxxx
Title: Vice President
BANK OF AMERICA, N.A., as Co-Syndication
Agent and a Lender
By: /s/ Xxxxxx X. XxXxxx
----------------------------------------
Name: Xxxxxx X. XxXxxx
Title: Managing Director
CREDIT SUISSE FIRST BOSTON, as
Co-Syndication Agent and a Lender
By: /s/ Xxxx X'Xxxx
----------------------------------------
Name: Xxxx X'Xxxx
Title: Director
By: /s/ Xxxxx X. Xxxxxx
----------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Associate
Signature Page-1
ABN AMRO BANK N.V., as Co-Documentation
Agent and a Lender
By: /s/ Xxxxx X. Xxxxx Xx.
----------------------------------------
Name: Xxxxx X. Xxxxx Xx.
Title: Group Vice President
By: /s/ Xxxxxxx X. Xxxxx
----------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Vice President
CITIBANK, N.A., as Co-Documentation Agent
and a Lender
By: /s/ Xxxxxxx X. Xxxxxxx
----------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Attorney-in-Fact
BNP PARIBAS, as a Lender
By: /s/ Xxxxx Xxxx
----------------------------------------
Name: Xxxxx Xxxx
Title: Director
By: /s/ Xxxxx Xxxxxxxx
----------------------------------------
Name: Xxxxx Xxxxxxxx
Title: Vice President
THE BANK OF NEW YORK, as a Lender
By: /s/ Xxxxx Xxxxxx
----------------------------------------
Name: Xxxxx Xxxxxx
Title: Vice President
DEUTSCHE BANK AG NEW YORK BRANCH, as a
Lender
By: /s/ Xxxxxxx X. Xxxxxxx
----------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Managing Director
By: /s/ Xxxx X. Xxxxxxxxxx
----------------------------------------
Name: Xxxx X. Xxxxxxxxxx
Title: Vice President
BAYERISCHE HYPO-UND VEREINSBANK AG, NEW YORK
BRANCH, as a Lender
By: /s/ Xxxxxx Xxxxxx
----------------------------------------
Name: Xxxxxx Xxxxxx
Title: Director
By: /s/ Xxxxxxx Xxxxxxxx
----------------------------------------
Name: Xxxxxxx Xxxxxxxx
Title: Director
Signature Page-2
THE ROYAL BANK OF SCOTLAND plc, as a Lender
By: /s/ Xxxxx Xxxxxxx
----------------------------------------
Name: Xxxxx Xxxxxxx
Title: Senior Vice President
THE BANK OF NOVA SCOTIA, as a Lender
By: /s/ X. Xxxx
----------------------------------------
Name: X. Xxxx
Title: Senior Manager
SOCIETE GENERALE, as a Lender
By: /s/ J. Xxxxxxx XxXxxxxx Xx.
----------------------------------------
Name: J. Xxxxxxx XxXxxxxx Xx.
Title: Managing Director
WESTDEUTSCHE LANDESBANK GIROZENTRALE, as a
Lender
By: /s/ Xxxxxxx X. Xxxxxxxx
----------------------------------------
Name: Xxxxxxx X. Xxxxxxxx
Title: Associate Director
By: /s/ Xxxx Xxxxx
----------------------------------------
Name: Xxxx Xxxxx
Title: Associate Director
MIZUHO CORPORATE BANK, LTD., as a Lender
By: /s/ Xxxx Xxxxx
----------------------------------------
Name: Xxxx Xxxxx
Title: General Manager
COMMERZBANK AG, NEW YORK AND
GRAND CAYMAN BRANCHES, as a Lender
By: /s/ Xxxxx X. Xxxxxx
----------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Senior Vice President & Manager
By: /s/ W. Xxxxx Xxxxxxx
----------------------------------------
Name: W. Xxxxx Xxxxxxx
Title: Vice President
Signature Page-3
CREDIT LYONNAIS NEW YORK BRANCH, as a Lender
By: /s/ Xxxxxxx Xxxxxxxxx
----------------------------------------
Name: Xxxxxxx Xxxxxxxxx
Title: Senior Vice President
MELLON BANK, N.A., as a Lender
By: /s/ Xxxxx X. Xxxxxx
----------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
XXXXXX XXXXXXX BANK, as a Lender
By: /s/ Jaep L. Tonckers
----------------------------------------
Name: Jaep L. Tonckers
Title: Vice President
ROYAL BANK OF CANADA, as a Lender
By: /s/ Xxx X. Xxxxxxxxxx
----------------------------------------
Name: Xxx X. Xxxxxxxxxx
Title: Senior Manager
AUSTRALIA AND NEW ZEALAND BANKING GROUP
LIMITED, as a Lender
By: /s/ Xxxxx XxXxxxx
----------------------------------------
Name: Xxxxx XxXxxxx
Title: Head of Global Structured
Finance-America
BANK ONE, NA (MAIN OFFICE CHICAGO), as a
Lender
By: /s/ Xxxxxx Xxxxxxx
----------------------------------------
Name: Xxxxxx Xxxxxxx
Title: Director
Signature Page-4
BANCO BILBAO VIZCAYA ARGENTARIA, as a Lender
By: /s/ Xxxxxx X. Xxxx
----------------------------------------
Name: Xxxxxx X. Xxxx
Title: Global Corporate Banking
By: /s/ Xxx Xxxxxx
----------------------------------------
Name: Xxx Xxxxxx
Title: Vice President
Global Corporate Banking
THE BANK OF TOKYO-MITSUBISHI,
LTD HOUSTON AGENCY, as a Lender
By: /s/ Xxxxxx Xxxxxxxxx
----------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: Vice President & Manager
XXXXXX COMMERCIAL PAPER INC., as a Lender
By: /s/ Xxxxxxx Xxxxxxx
----------------------------------------
Name: Xxxxxxx Xxxxxxx
Title: Authorized Signatory
CREDIT AGRICOLE INDOSUEZ, as a Lender
By: /s/ Xxxxxxx X. Xxxxxx
----------------------------------------
Name: Xxxxxxx X. Xxxxxx
Title: Vice President
By: /s/ Xxxxxxx X. Xxxxxx
----------------------------------------
Name: Xxxxxxx X. Xxxxxx
Title: Vice President
KBC BANK N.V., as a Lender
By: /s/ Xxxxxx Xxxxxxxx
----------------------------------------
Name: Xxxxxx Xxxxxxxx
Title: First Vice President
By: /s/ Xxxx Xxxxxx
----------------------------------------
Name: Xxxx Xxxxxx
Title: Vice President
NORDDEUTSCHE LANDESBANK GIROZENTRALE, as a
Lender
By: /s/ Xxxxxxxxx Xxxxxx
----------------------------------------
Name: Xxxxxxxxx Xxxxxx
Title: Vice President
By: /s/ Xxxxxx Xxxxx
----------------------------------------
Name: Xxxxxx Xxxxx
Title: Assistant Treasurer
SUNTRUST BANKS, INC., as a Lender
By: /s/ Xxxxxx X. XxXxxxxx
----------------------------------------
Name: Xxxxxx X. XxXxxxxx
Title: Vice President
Signature Page-5
SCHEDULE I
COMMITMENTS
Name of Lender Amount of Commitment
-------------- --------------------
JPMorgan Chase Bank $ 205,000,000
Bank of America, N.A $ 205,000,000
Credit Suisse First Boston $ 205,000,000
ABN AMRO Bank N.V $ 205,000,000
Citibank, N.A $ 205,000,000
BNP Paribas $ 135,000,000
The Bank of New York $ 135,000,000
Deutsche Bank, A.G. New York Branch $ 135,000,000
Bayerische Hypo-und Vereinsbank, AG $ 135,000,000
The Royal Bank of Scotland plc $ 135,000,000
The Bank of Nova Scotia $ 135,000,000
Societe Generale $ 135,000,000
Westdeutsche Landesbank Girozentrale $ 135,000,000
Mizuho Corporate Bank, Ltd. $ 125,000,000
Commerzbank AG $ 100,000,000
Credit Lyonnais, New York Branch $ 100,000,000
Mellon Bank, N.A $ 70,000,000
Xxxxxx Xxxxxxx Bank $ 50,000,000
Royal Bank of Canada $ 50,000,000
Australia and New Zealand Banking Group Limited $ 50,000,000
Bank One, N.A. (Main Office Chicago) $ 50,000,000
Banco Bilbao Vizcaya Argentaria, S.A. $ 50,000,000
The Bank of Tokyo-Mitsubishi, Ltd. $ 50,000,000
Xxxxxx Commercial Paper Inc. $ 50,000,000
Credit Agricole Indosuez $ 45,000,000
KBC Bank N.V $ 35,000,000
Norddeutsche Landesbank Girozentrale $ 35,000,000
SunTrust Banks, Inc. $ 35,000,000
--------------
Total $3,000,000,000
EXHIBIT A
FORM OF
NOTE
$_______ New York, New York
May 15, 2002
FOR VALUE RECEIVED, the undersigned, ___________________, a ________
corporation (the "Borrower"), hereby unconditionally promises to pay to the
order of ________(the "Lender") at the office of JPMorgan Chase Bank, located at
000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, in lawful money of the United States
of America and in same day funds, on the first anniversary of the Termination
Date (or if the Lender is an Objecting Lender, the first anniversary of the
Commitment Expiration Date applicable to the Lender) the principal amount of (a)
________DOLLARS ($_____), or, if less, (b) the aggregate unpaid principal amount
of all Revolving Credit Advances made by the Lender to the Borrower pursuant to
subsection 2.1 of the Credit Agreement, as hereinafter defined. The Borrower
further agrees to pay interest in like money at such office on the unpaid
principal amount hereof 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, and prior to any transfer
hereof shall, endorse on the schedules attached 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 Advance made pursuant to
subsection 2.1 of the Credit Agreement and the date and amount of each payment
or prepayment of principal thereof, each continuation thereof, each conversion
of all or a portion thereof to another Type and, in the case of Eurodollar Rate
Advances, the length of each Interest Period with respect thereto. Each such
endorsement shall constitute prima facie evidence of the accuracy of the
information endorsed. The failure to make any such endorsement shall not affect
the obligations of the Borrower in respect of such Revolving Credit Advance.
This Note (a) is one of the Notes referred to in the $3,000,000,000
364-Day Revolving Credit and Competitive Advance Facility Agreement, dated as of
May 15, 2002 (as amended, supplemented or otherwise modified from time to time,
the "Credit Agreement"), among El Paso Corporation, El Paso Natural Gas Company,
Tennessee Gas Pipeline Company, the Lender, the other banks and financial
institutions from time to time parties thereto, JPMorgan Chase Bank, as
Administrative Agent and CAF Advance Agent, ABN AMRO Bank N.V. and Citibank,
N.A., as Co-Documentation Agents, and Bank of America, N.A. and Credit Suisse
First Boston, as Co-Syndication Agents (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.
A-1
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 except those
expressly required under the Credit Agreement.
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.
[BORROWER]
By:
-------------------------------
Title:
A-2
Schedule A to Note
ADVANCES, CONVERSIONS AND REPAYMENTS OF BASE RATE ADVANCES
Amount of Base Rate
Amount of Amount Amount of Principal Advances Converted to Unpaid Principal
Base Rate Converted to of Base Rate Advances Eurodollar Rate Balance of Base Notation
Date Advances Base Rate Advances Repaid Advances Rate Advances Made By
---- --------- ------------------ --------------------- --------------------- ---------------- --------
Schedule B to Note
ADVANCES, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR RATE ADVANCES
Amount of
Eurodollar
Amount of Rate Unpaid
Amount of Amount Interest Period Principal of Advances Principal
Eurodollar Converted to and Eurodollar Eurodollar Converted to Balance of
Rate Eurodollar Rate with Rate Advances Base Rate Eurodollar Notation
Date Advances Rate Advances Respect Thereto Repaid Advances Rate Advances Made By
---- ---------- ------------- --------------- ------------- ------------ ------------- --------
EXHIBIT B
FORM OF
NOTICE OF BORROWING
JPMorgan Chase Bank, as Administrative Agent
for the Lenders parties
to the Credit Agreement
referred to below
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000 [Date]
Attention: El Paso Corporation
Ladies and Gentlemen:
The undersigned, EL PASO CORPORATION, refers to the
$3,000,000,000
364-Day Revolving Credit and Competitive Advance Facility
Agreement, dated as of May 15, 2002 (the "Credit Agreement", the terms defined
therein being used herein as therein defined), among the undersigned, El Paso
Natural Gas Company, Tennessee Gas Pipeline Company, certain Lenders parties
thereto, JPMorgan Chase Bank, as Administrative Agent and CAF Advance Agent for
said Lenders, ABN AMRO Bank N.V. and Citibank, N.A., as Co-Documentation Agents,
and Bank of America, N.A. and Credit Suisse First Boston, as Co-Syndication
Agents, and hereby gives you notice, irrevocably, pursuant to Section 2.2 of the
Credit Agreement that the undersigned hereby requests a Borrowing under the
Credit Agreement, and in that connection sets forth below the information
relating to such Borrowing (the "Proposed Borrowing") as required by Section
2.2(a) of the Credit Agreement:
(i) The Borrower for the Proposed Borrowing is
______________.
(ii) The Business Day of the Proposed Borrowing is
___________, 200_.
(iii) The Type of Advances comprising the Proposed
Borrowing is [Base Rate Advances] [Eurodollar Rate Advances].
(iv) The aggregate amount of the Proposed Borrowing
is $__________.
(v) The Interest Period for each Eurodollar Rate
Advance made as part of the Proposed Borrowing is [______ month[s]].
The undersigned hereby certifies that the following
statements are true on the date hereof, and will be true on the date of
the Proposed Borrowing, before and immediately after giving effect
thereto and to the application of the proceed therefrom:
(A) each representation and warranty contained in Section 4.1
is correct in all material respects as though made on and as of such
date; and
B-1
(B) no event has occurred and is continuing, or would result
from such Proposed Borrowing, which constitutes an Event of Default or
Default.
Very truly yours,
EL PASO CORPORATION
By:
-------------------------------------
Title:
B-2
EXHIBIT C
FORM OF
CAF ADVANCE REQUEST
[Date]
JPMorgan Chase Bank, as CAF Advance Agent
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Reference is made to the $3,000,000,000
364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of May 15, 2002,
among El Paso Corporation, El Paso Natural Gas Company, Tennessee Gas Pipeline
Company, certain Lenders parties thereto, JPMorgan Chase Bank, as Administrative
Agent and CAF Advance Agent, ABN AMRO Bank N.V. and Citibank, N.A., as
Co-Documentation Agents, and Bank of America, N.A. and Credit Suisse First
Boston, as Co-Syndication Agents (as the same may be 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] [LIBO Rate] CAF Advance Request*
pursuant to Section 2.5 of the Credit Agreement requesting quotes for the
following CAF Advances:
Loan 1 Loan 2 Loan 3
------ ------ ------
Aggregate Principal Amount $__________ $__________ $_________
CAF Advance Date
Maturity Date
Interest Payment Dates
Very truly yours,
[Borrower]
By:
--------------------------------------
Name:
Title:
----------
* Pursuant to the Credit Agreement, a CAF Advance Request may be
transmitted in writing, by telecopy, or by telephone, immediately
confirmed by telecopy. In any case, a CAF Advance Request shall contain
the information specified in the second paragraph of this form.
C-1
EXHIBIT D
FORM OF
CAF ADVANCE OFFER
[Date]
JPMorgan Chase Bank, as CAF Advance Agent
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Reference is made to the $3,000,000,000
364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of May 15, 2002,
among El Paso Corporation, El Paso Natural Gas Company, Tennessee Gas Pipeline
Company, certain Lenders parties thereto, JPMorgan Chase Bank, as Administrative
Agent and CAF Advance Agent, ABN AMRO Bank N.V. and Citibank, N.A., as
Co-Documentation Agents, and Bank of America, N.A. and Credit Suisse First
Boston, as Co-Syndication Agents (as the same may be 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 2.5 of the Credit Agreement, the
undersigned Lender offers to make CAF Advances thereunder in the following
amounts with the following maturity dates:
CAF Advance 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 _______*
----------
* Insert the interest rate offered for the specified CAF Advance. In the
case of LIBO Rate CAF Advances, insert a margin bid. In the case of
Fixed Rate CAF Advances, insert a fixed rate bid.
D-1
Very truly yours,
[NAME OF CAF ADVANCE LENDER]
By:
-------------------------------
Name:
Title:
Telephone No.:
Telecopy No.:
D-2
EXHIBIT E
FORM OF
CAF ADVANCE CONFIRMATION
[Date]
JPMorgan Chase Bank, as CAF Advance Agent
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Reference is made to the $3,000,000,000
364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of May 15, 2002,
among El Paso Corporation, El Paso Natural Gas Company, Tennessee Gas Pipeline
Company, certain Lenders parties thereto, JPMorgan Chase Bank, as Administrative
Agent and CAF Advance Agent, ABN AMRO Bank N.V. and Citibank, N.A., as
Co-Documentation Agents, and Bank of America, N.A. and Credit Suisse First
Boston, as Co-Syndication Agents (as the same may be 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 2.5(d) 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 _____, ___[date of CAF Advance Borrowing]
under Section 2.5(d) in the (respective) amount(s) set forth on the attached
list of CAF Advances offered.
Very truly yours,
[Borrower]
By
--------------------------------------
Name:
Title:
[The Borrower must attach CAF Advance offer list prepared by the CAF Advance
Agent with accepted amount entered by the Borrower to the right of each CAF
Advance offer].
E-1
EXHIBIT F
FORM OF
ASSIGNMENT AND ACCEPTANCE
Dated _____________, ____
Reference is made to the $3,000,000,000
364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of May 15, 2002 (as
the same may be amended or otherwise modified from time to time, the "Credit
Agreement") among EL PASO CORPORATION, a Delaware corporation (the "Company"),
EL PASO NATURAL GAS COMPANY, a Delaware corporation, TENNESSEE GAS PIPELINE
COMPANY, a Delaware corporation, the Lenders (as defined in the Credit
Agreement), JPMorgan Chase Bank, as administrative agent (the "Administrative
Agent") and as CAF Advance Agent (the "CAF Advance Agent") for the Lenders, ABN
AMRO Bank N.V. and Citibank, N.A., as Co-Documentation Agents (in such capacity,
the "Co-Documentation Agents"), and Bank of America, N.A. and Credit Suisse
First Boston, as Co-Syndication Agents (in such capacity, the "Co-Syndication
Agents"). Terms defined in the Credit Agreement are used herein with the same
meaning.
_____________ (the "Assignor") and ____________ (the
"Assignee") agree as follows:
1. The Assignor hereby sells and assigns to the Assignee, and
the Assignee hereby purchases and assumes from the Assignor, that interest in
and to all of the Assignor's rights and obligations under the Credit Agreement
as of the date hereof which represents the percentage interest specified on
Schedule 1 of all outstanding rights and obligations under the Credit Agreement,
including, without limitation, such interest in the Assignor's Commitment, the
Advances owing to the Assignor, and the Notes held by the Assignor. After giving
effect to such sale and assignment, the Assignee's Commitment and the amount of
the Advances owing to the Assignee will be as set forth in Section 2 of Schedule
1.
2. The Assignor (i) represents and warrants that it is the
legal and beneficial owner of the interest being assigned by it hereunder and
that such interest is free and clear of any adverse claim; (ii) makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or any other
instrument or document furnished pursuant thereto; (iii) makes no representation
or warranty and assumes no responsibility with respect to the financial
condition of each Borrower or the performance or observance by each Borrower of
any of its obligations under the Credit Agreement or any other instrument or
document furnished pursuant thereto; and (iv) attaches the Notes referred to in
paragraph 1 above and requests that the Administrative Agent exchange such Notes
for new Notes payable to the order of the Assignee in an amount equal to the
Commitment assumed by the Assignee pursuant hereto or new Notes payable to the
order of the Assignee in an amount equal to the Commitment assumed by the
Assignee pursuant hereto and the Assignor in an amount equal to the Commitment
F-1
retained by the Assignor under the Credit Agreement, respectively, as specified
on Schedule 1 hereto.
3. The Assignee (i) confirms that it has received a copy of
the Credit Agreement, together with copies of the financial statements referred
to in Section 4.1 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; (ii) agrees that it will, independently and
without reliance upon the Administrative Agent, the Assignor or any other Lender
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement; (iii) confirms that it is an Eligible Assignee; (iv)
appoints and authorizes the Administrative Agent and CAF Advance 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 and CAF Advance Agent by
the terms thereof, together with such powers as are reasonably incidental
thereto; (v) agrees that it will perform in accordance with their terms all of
the obligations which by the terms of the Credit Agreement are required to be
performed by it as a Lender; [and] (vi) specifies as its address for notices the
address set forth beneath its name on the signature pages hereof [and (vii)
attaches the forms prescribed by the Internal Revenue Service of the United
States certifying as to the Assignee's status for purposes of determining
exemption from United States withholding taxes with respect to all payments to
be made to the Assignee under the Credit Agreement and the Notes or such other
documents as are necessary to indicate that all such payments are subject to
such rates at a rate reduced by an applicable tax treaty]*.
4. Following the execution of this Assignment and Acceptance
by the Assignor and the Assignee, it will be delivered to the Administrative
Agent for acceptance and recording by the Administrative Agent. The effective
date of this Assignment and Acceptance shall be the date of acceptance thereof
by the Administrative Agent, unless otherwise specified on Schedule 1 hereto
(the "Effective Date").
5. Upon such acceptance and recording by the Administrative
Agent, as of the Effective Date, (i) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and Acceptance, have
the rights and obligations of Lender thereunder and (ii) the Assignor shall, to
the extent provided in this Assignment and Acceptance, relinquish its rights and
be released from its obligations under the Credit Agreement.
6. Upon such acceptance and recording by the Administrative
Agent, from and after the Effective Date, the Administrative Agent shall make
all payments under the Credit Agreement and the Notes in respect of the interest
assigned hereby (including, without limitation, all payments of principal,
interest and commitment fees with respect thereto) to the Assignee. The Assignor
and Assignee shall make all appropriate adjustments in payments under the Credit
Agreement and the Notes for periods prior to the Effective Date directly between
themselves.
7. This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of New York.
----------
* If the Assignee is organized under the laws of a jurisdiction outside the
United States.
F-2
IN WITNESS WHEREOF, the parties hereto have caused this
Assignment and Acceptance to be executed by their respective officers thereunto
duly authorized, as of the date first above written, such execution being made
on Schedule 1 hereto.
F-3
Schedule 1
to
Assignment and Acceptance
________, 200_
Re: $3,000,000,000
364-Day Revolving Credit and Competitive Advance
Facility Agreement dated as of May 15, 2002 among JPMorgan Chase Bank,
as Administrative Agent and CAF Advance Agent, ABN AMRO Bank N.V. and
Citibank, N.A., as Co-Documentation Agents and Bank of America, N.A.
and Credit Suisse First Boston, as Co-Syndication Agents.
Name of Assignor:
Name of Assignee:
Transfer Effective
Date of Assignment: __________, 200_
Assignor's Commitment Prior to Assignment: $
Percentage of Assignor's Interest Assignee's Commitment
--------------------------------- ---------------------
% $
[Name of Assignor] [Name of Assignee]
By: By:
---------------------------------------- -----------------------------------------
Title: Title:
Consented to:
EL PASO CORPORATION JPMORGAN CHASE BANK, as
Administrative Agent
By: By:
---------------------------------------- -----------------------------------------
Title: Title:
EXHIBIT G
FORM OF OPINION OF [ASSOCIATE GENERAL][SENIOR] COUNSEL OF THE COMPANY
May 15, 2002
To Each of the Lenders, the Administrative Agent
and the CAF Advance Agent
Referred to Below
c/o JPMorgan Chase Bank
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Re: El Paso Corporation
Ladies and Gentlemen:
This opinion is furnished to you pursuant to Section
3.2(b)(iii) of the $3,000,000,000 364-Day Revolving Credit and Competitive
Advance Facility Agreement, dated as of May 15, 2002 (the "Credit Agreement"),
among El Paso Corporation (the "Company"), El Paso Natural Gas Company
("EPNGC"), Tennessee Gas Pipeline Company ("Tennessee") (Tennessee, together
with the Company and EPNGC, the "Borrowers"), the banks and other financial
institutions from time to time party thereto (each a "Lender", and together the
"Lenders"), JPMorgan Chase Bank, as Administrative Agent (in such capacity, the
"Administrative Agent") and as CAF Advance Agent (in such capacity, the "CAF
Advance Agent") for the Lenders, ABN AMRO Bank N.V. and Citibank, N.A., as
Co-Documentation Agents (in such capacity, the "Co-Documentation Agents"), and
Bank of America, N.A. and Credit Suisse First Boston, as Co-Syndication Agents
(in such capacity, the "Co-Syndication Agents"). Unless the context otherwise
requires, all capitalized terms used herein without definition shall have the
meanings ascribed to them in the Credit Agreement.
I am [Associate General] [Senior] Counsel of the Company, and
I, or attorneys over whom I exercise supervision, have acted as counsel for the
Borrowers in connection with the preparation, execution and delivery of the
Credit Agreement. In that connection, I or such attorneys have examined:
(1) the Credit Agreement, executed by the parties thereto;
(2) the Notes, executed by the Borrowers; and
(3) the other documents furnished by the Borrowers pursuant to
Sections 3.1 and 3.2 of the Credit Agreement.
I, or attorneys over whom I exercise supervision, have also
examined the originals, or copies certified to our satisfaction, of the
agreements, instruments and other
G-1
documents, and all of the orders, writs, judgments, awards, injunctions and
decrees, which affect or purport to affect the Borrowers' ability to perform
their respective obligations under the Credit Agreement or the Notes
(collectively referred to herein as the "Documents"). In addition, I, or
attorneys over whom I exercise supervision, have examined the originals, or
copies certified to our satisfaction, of such other corporate records of the
Borrowers, certificates of public officials and of officers of the Borrowers,
and agreements, instruments and other documents, as I have deemed necessary as a
basis for the opinions hereinafter expressed. In all such examinations, I, or
attorneys over whom I exercise supervision, have assumed the legal capacity of
all natural persons executing documents, the genuineness of all signatures on
original or certified, conformed or reproduction copies of documents of all
parties (other than, with respect to the Documents, the Borrowers), the
authenticity of original and certified documents and the conformity to original
or certified copies of all copies submitted to such attorneys or me as conformed
or reproduction copies. As to various questions of fact relevant to the opinions
expressed herein, I have relied upon, and assume the accuracy of,
representations and warranties contained in the Credit Agreement and
certificates and oral or written statements and other information of or from
public officials, officers and/or representatives of the Borrowers and others.
I have assumed that the parties to the Documents other than
the Borrowers have the power to enter into and perform such documents and that
such documents have been duly authorized, executed and delivered by, and
constitute legal, valid and binding obligations of, such parties.
The opinions expressed below are limited to the federal laws
of the United States and, to the extent relevant hereto, the General Corporation
Law of the State of Delaware, as currently in effect. I assume no obligation to
supplement this opinion if any applicable laws change after the date hereof or
if I become aware of any facts that might change the opinions expressed herein
after the date hereof.
Based on the foregoing and upon such investigation as we have
deemed necessary, and subject to the limitations, qualifications and assumptions
set forth herein, I am of the following opinion:
1. Each Borrower (i) is a corporation duly incorporated and
existing in good standing under the laws of the State of Delaware, and
(ii) possesses all the corporate powers and all other authorizations
and licenses necessary to engage in its business and operations as now
conducted, the failure to obtain or maintain which would have a
Material Adverse Effect.
2. The execution, delivery and performance by each Borrower of
the Documents to which it is a party are within such Borrower's
corporate powers and have been duly authorized by all necessary
corporate action in respect of or by such Borrower, and do not
contravene (i) such Borrower's charter or by-laws, each as amended to
date, (ii) any federal law, rule or regulation applicable to such
Borrower (excluding provisions of federal law expressly referred to in
and covered by the opinion of Xxxxx, Day, Xxxxxx & Xxxxx delivered to
you in connection with the transactions contemplated hereby) or any
provision of the General Corporation Law of the State of Delaware
applicable to such Borrower, or (iii) any contractual restriction
binding on or affecting such Borrower. The
G-2
Documents to which it is a party have been duly executed and delivered
on behalf of each Borrower.
3. No authorization or approval or other action by, and no
notice to or filing with, any federal governmental authority or
regulatory body (including, without limitation, the FERC) is required
for the due execution, delivery and performance by any Borrower of the
Documents to which it is a party, except those required in the ordinary
course of business in connection with the performance by each Borrower
of its obligations under certain covenants and warranties contained in
the Documents to which it is a party.
4. To the best of my knowledge, there is no action, suit or
proceeding pending or overtly threatened against or involving the
Company or any of the Principal Subsidiaries which, in my reasonable
judgment (taking into account the exhaustion of all appeals), would
have a material adverse effect upon the consolidated financial
condition of the Company and its consolidated Subsidiaries taken as a
whole, or which purports to affect the legality, validity, binding
effect or enforceability of any Document.
These opinions are given as of the date hereof and are solely
for your benefit in connection with the transactions contemplated by the Credit
Agreement. These opinions may not be relied upon by you for any other purpose or
relied upon by any other person for any purpose without my prior written
consent.
Very truly yours,
X-0
XXXXXXX X
XXXX XX XXXXXXX XX XXX XXXX COUNSEL TO THE COMPANY
May 15, 2002
To Each of the Lenders, the Administrative Agent, the CAF Advance Agent, the
Co-Documentation Agents and the Co-Syndication Agents Referred to Below
c/o JPMorgan Chase Bank
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Re: $3,000,000,000 364-Day Revolving Credit
and Competitive Advance Facility Agreement
dated as of August 4, 2000
Dear Ladies and Gentlemen:
We have acted as special New York counsel for El Paso
Corporation, a Delaware corporation (the "Company"), El Paso Natural Gas
Company, a Delaware corporation ("EPNGC") and Tennessee Gas Pipeline Company, a
Delaware corporation ("Tennessee") (Tennessee together with the Company and
EPNGC, the "Borrowers"), in connection with the $3,000,000,000 364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of May 15, 2002 (the
"Financing Agreement"), among the Company, EPNGC, Tennessee, the banks and other
financial institutions from time to time party thereto (each a "Lender", and
together the "Lenders"), JPMorgan Chase Bank, as administrative agent (in such
capacity, the "Administrative Agent") and as CAF Advance Agent (in such
capacity, the "CAF Advance Agent") for the Lenders, ABN AMRO Bank N.V. and
Citibank, N.A., as Co-Documentation Agents (in such capacity, the
"Co-Documentation Agents"), and Bank of America, N.A. and Credit Suisse First
Boston, as Co-Syndication Agents (in such capacity, the "Co-Syndication
Agents"). This opinion is delivered to you pursuant to Section 3.2(b)(iv) of the
Financing Agreement. Capitalized terms used herein and not otherwise defined
have the meanings assigned such terms in the Financing Agreement. With your
permission, all assumptions and statements of reliance herein have been made
without any independent investigation or verification on our part except to the
extent otherwise expressly stated, and we express no opinion with respect to the
subject matter or accuracy of the assumptions or items upon which we have
relied.
In connection with the opinions expressed herein, we have
examined such documents, records and matters of law as we have deemed necessary
for the purposes of this opinion. We have examined, among other documents, the
following:
(a) An executed copy of the Financing Agreement; and
(b) An executed copy of each of the Notes.
H-1
The documents referred to in items (a) and (b) above are referred to herein
collectively as the "Documents."
In all such examinations, we have assumed the legal capacity
of all natural persons executing documents, the genuineness of all signatures,
the authenticity of original and certified documents and the conformity to
original or certified copies of all copies submitted to us as conformed or
reproduction copies. As to various questions of fact relevant to the opinions
expressed herein, we have relied upon, and assume the accuracy of,
representations and warranties contained in the Documents and certificates and
oral or written statements and other information of or from representatives of
the Borrowers and others and assume compliance on the part of all parties to the
Documents with their covenants and agreements contained therein. With respect to
the opinions expressed in paragraph (a) below, our opinions are limited (x) to
our actual knowledge, if any, of the Borrowers' specially regulated business
activities and properties based solely upon an officer's certificate in respect
of such matters and without any independent investigation or verification on our
part and (y) to our review of only those laws and regulations that, in our
experience, are normally applicable to transactions of the type contemplated by
the Documents.
To the extent it may be relevant to the opinions expressed
herein, we have assumed that the parties to the Documents have the power to
enter into and perform such documents and to consummate the transactions
contemplated thereby and that such documents have been duly authorized, executed
and delivered by, and, except as set forth in paragraph (b) with respect to the
Borrowers, constitute legal, valid and binding obligations of, such parties.
Based upon the foregoing, and subject to the limitations,
qualifications and assumptions set forth herein, we are of the opinion that:
(a) The execution and delivery to the Administrative Agent,
the CAF Advance Agent, the Co-Documentation Agents, the Co-Syndication Agents
and the Lenders by each Borrower of the Documents to which it is a party and the
performance by each Borrower of its obligations thereunder (i) do not require
under present law any filing or registration by such Borrower with, or approval
or consent to such Borrower of, any governmental agency or authority of the
State of New York that has not been made or obtained except those required in
the ordinary course of business in connection with the performance by such
Borrower of its obligations under certain covenants and warranties contained in
the Documents to which it is a party and (ii) do not violate any present law, or
present regulation of any governmental agency or authority, of the State of New
York applicable to such Borrower or its property.
(b) The Documents to which it is a party constitute legal,
valid and binding obligations of each Borrower enforceable against such Borrower
in accordance with their respective terms.
(c) The borrowings by each Borrower under the Financing
Agreement and the applications of the proceeds thereof as provided in the
Financing Agreement will not violate Regulation T, U or X of the Board of
Governors of the Federal Reserve System.
The opinions set forth above are subject to the following
qualifications:
(A) We express no opinion as to:
H-2
(i) the validity, binding effect or enforceability (a) of any
provision of the Documents relating to indemnification, contribution or
exculpation in connection with violations of any securities laws or
statutory duties or public policy, or in connection with willful,
reckless or criminal acts or gross negligence of the indemnified or
exculpated party or the party receiving contribution; or (b) of any
provision of any of the Documents relating to exculpation of any party
in connection with its own negligence that a court would determine in
the circumstances under applicable law to be unfair or insufficiently
explicit;
(ii) the validity, binding effect or enforceability of (a) any
purported waiver, release, variation, disclaimer, consent or other
agreement to similar effect (all of the foregoing, collectively, a
"Waiver") by the Borrowers under the Documents to the extent limited by
provisions of applicable law (including judicial decisions), or to the
extent that such a Waiver applies to a right, claim, duty, defense or
ground for discharge otherwise existing or occurring as a matter of law
(including judicial decisions), except to the extent that such a Waiver
is effective under and is not prohibited by or void or invalid under
provisions of applicable law (including judicial decisions), (b) any
provision of any Document relating to choice of governing law to the
extent that the validity, binding effect or enforceability of any such
provision is to be determined by any court other than a court of the
State of New York or (c) any provision of any Document relating to
forum selection to the extent the forum is a federal court;
(iii) the enforceability of any provision in the Documents
specifying that provisions thereof may be waived only in writing, to
the extent that an oral agreement or an implied agreement by trade
practice or course of conduct has been created that modifies any
provision of the Documents;
(iv) the effect of any law of any jurisdiction other than the
State of New York wherein the Administrative Agent, the CAF Advance
Agent, the Co-Documentation Agents, the Co-Syndication Agents or any
Lender may be located or wherein enforcement of any document referred
to above may be sought that limits the rates of interest legally
chargeable or collectible; and
(v) any approval, consent or authorization of the Federal
Energy Regulatory Commission or any other United States federal agency
or authority or that may be required pursuant to any New York State or
United States federal law, rule or regulation applicable to companies
engaged in the Specified Activities (as defined below) needed in
connection with the execution, delivery and performance by any Borrower
of the Documents to which it is a party, the consummation of the
transactions contemplated thereby and compliance with the terms and
conditions thereof.
(B) Our opinions above are subject to (i) applicable bankruptcy,
insolvency, reorganization, fraudulent transfer, voidable preference, moratorium
or similar laws, and related judicial doctrines, from time to time in effect
affecting creditors' rights and remedies generally, (ii) general principles of
equity (including, without limitation, standards of materiality, good faith,
fair dealing and reasonableness, equitable defenses and limits on the
availability of equitable remedies), whether such principles are considered in a
proceeding at law or in equity and (iii) the qualification that certain other
provisions of the Documents may be unenforceable in whole or in part under the
laws (including judicial decisions) of the State of New York or the
X-0
Xxxxxx Xxxxxx xx Xxxxxxx, but the inclusion of such provisions does not affect
the validity as against any Borrower of the Documents to which it is a party,
taken as a whole, and the Documents contain adequate provisions for enforcing
payment of the obligations governed thereby, subject to the other qualifications
contained in this letter.
(C) Our opinions as to enforceability are subject to the effect of
generally applicable rules of law that:
(i) limit the availability of a remedy under certain
circumstances when another remedy has been elected; and
(ii) may, where less than all of a contract may be
unenforceable, limit the enforceability of the balance of the contract
to circumstances in which the unenforceable portion is not an essential
part of the agreed exchange; and
(iii) govern and afford judicial discretion regarding the
determination of damages and entitlement to attorneys' fees and other
costs.
(D) For the purposes of the opinion set forth in paragraph (c) above,
we have assumed that (i) none of the Administrative Agent, the CAF Advance
Agent, the Co-Documentation Agents, the Co-Syndication Agents or any of the
Lenders has or will have the benefit of any agreement or arrangement (excluding
the Documents) pursuant to which any Advances are directly or indirectly secured
by Margin Stock, (ii) none of the Administrative Agent, the CAF Advance Agent,
the Co-Documentation Agents, the Co-Syndication Agents, any of the Lenders or
any of their respective affiliates has extended or will extend any other credit
to any of the Borrowers directly or indirectly secured by Margin Stock and (iii)
none of the Administrative Agent, the CAF Advance Agent, the Co-Documentation
Agents and the Co-Syndication Agents or any of the Lenders has relied or will
rely upon any Margin Stock as collateral in extending or maintaining any
Advances pursuant to the Financing Agreement.
(E) For purposes of our opinions above insofar as they relate to the
Borrowers, we have assumed that (i) each Borrower is a corporation validly
existing in good standing in its jurisdiction of incorporation, has all
requisite power and authority, and has obtained all requisite corporate,
shareholder, third party and governmental authorizations, consents and
approvals, and made all requisite filings and registrations, necessary to
execute, deliver and perform the Documents to which it is a party (except to the
extent noted in paragraph (a) above), and that such execution, delivery and
performance will not violate or conflict with any law, rule, regulation, order,
decree, judgment, instrument or agreement binding upon or applicable to such
Borrower or its properties (except to the extent noted in paragraph (a) above),
and (ii) the Documents to which each Borrower is a party have been duly executed
and delivered by such Borrower.
The opinions expressed herein are limited to (i) Regulations
T, U and X of the Board of Governors of the Federal Reserve System (in the case
of the matters covered in paragraph (c) above) and (ii) the laws of the State of
New York, as currently in effect, except that, without prejudice to the
foregoing limitations, we express no opinion with respect to laws, rules or
regulations of the State of New York, or of any governmental agency or authority
thereof, applicable to companies engaged in the gathering, processing,
transmission, distribution or marketing of natural gas or other hydrocarbon
derivatives or power generation or the
H-4
generation, transmission, distribution or marketing of electricity, or
telecommunications or any business relating to telecommunications (all of the
foregoing activities, collectively, the "Specified Activities") or as to
filings, registrations, approvals or consents under or required by such laws,
rules or regulations.
We express no opinion as to the compliance or noncompliance,
or the effect of the compliance or noncompliance, of each of the addressees with
any state or federal laws or regulations applicable to each of them by reason of
their status as or affiliation with a federally insured depository institution.
The opinions expressed herein are solely for the benefit of
the Administrative Agent, CAF Advance Agent, the Co-Documentation Agents, the
Co-Syndication Agents and the Lenders and may not be relied on in any manner or
for any purpose by any other person or entity.
Very truly yours,
XXXXX, DAY, XXXXXX & XXXXX
By:
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H-5
EXHIBIT I
[LETTERHEAD OF PROCESS AGENT]
[DATE]
To each of the Lenders parties
to the Credit Agreement (as
defined and referred to
below) and to JPMorgan Chase Bank
as Administrative Agent and
CAF Advance Agent for said Lenders
c/o JPMorgan Chase Bank
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
To El Paso Corporation
0000 Xxxxxxxxx Xxxxxx
Xxxxxxx, Xxxxx 00000
El Paso Corporation/El Paso Natural Gas Company/Tennessee Gas Pipeline Company
Gentlemen:
Reference is made to that certain $3,000,000,000 364-Day
Revolving Credit and Competitive Advance Facility Agreement, dated as of May 15,
2002 (said Agreement, as it may hereafter be amended, supplemented or otherwise
modified from time to time, being the "Credit Agreement", the terms defined
therein being used herein with the same meaning) among El Paso Corporation (the
"Company"), El Paso Natural Gas Company ("EPNGC"), Tennessee Gas Pipeline
Company ("Tennessee") (Tennessee, together with the Company and EPNGC, the
"Borrowers"), certain banks and other financial institutions from time to time
party thereto as Lenders thereunder (the "Lenders"), JPMorgan Chase Bank, as
Administrative Agent and CAF Advance Agent (in such capacities, the
"Administrative Agent" and the "CAF Advance Agent") for the Lenders, ABN AMRO
Bank N.V. and Citibank, N.A., as Co-Documentation Agents, and Bank of America,
N.A. and Credit Suisse First Boston, as Co-Syndication Agents.
Pursuant to Section 9.9(a) of the Credit Agreement each of the
Borrowers has appointed the undersigned (with an office on the date hereof at
000 Xxxxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 10011) as Process Agent to
receive on behalf of such Borrower and its property service of copies of the
summons and complaint and any other process which may be served by the
Administrative Agent, the CAF Advance Agent, any Lender or the holder of any
Note in any action or proceeding by the Administrative Agent, the CAF Advance
Agent, any Lender or the holder of any Note in any New York State or Federal
court sitting in New York City in respect of, but only in respect of, any claims
or causes of action arising out of or relating to the Credit Agreement and the
Notes issued pursuant thereto.
I-1
The undersigned hereby accepts such appointment as Process
Agent and agrees with each of you that (i) the undersigned will not terminate
the undersigned's agency as such Process Agent prior to _______, 200_ (and
hereby acknowledges that the undersigned has been paid in full by the Borrower
for its services as Process Agent through such date), (ii) the undersigned will
maintain an office in New York City through such date and will give the
Administrative Agent prompt notice of any change of address of the undersigned,
(iii) the undersigned will perform its duties as Process Agent in accordance
with Section 9.9(a) of the Credit Agreement and (iv) the undersigned will
forward forthwith to the Borrower at its address specified below copies of any
summons, complaint and other process which the undersigned receives in
connection with its appointment as Process Agent.
This acceptance and agreement shall be binding upon the
undersigned and all successors of the undersigned.
Very truly yours,
CT CORPORATION SYSTEM
By:
------------------------------
Title:
Address of the Borrower:
[Address]
I-2
EXHIBIT J
FORM OF
JOINDER AGREEMENT
Reference is made to the $3,000,000,000 364-Day Revolving
Credit and CAF Advance Facility Agreement, dated as of May 15, 2002 (as amended,
supplemented or otherwise modified from time to time, the "Credit Agreement";
terms defined therein being used herein as therein defined), among El Paso
Corporation, El Paso Natural Gas Company, Tennessee Gas Pipeline Company,
certain banks and other financial institutions from time to time party thereto,
JPMorgan Chase Bank, as Administrative Agent and CAF Advance Agent, ABN AMRO
Bank N.V. and Citibank, N.A., as Co-Documentation Agents, and Bank of America,
N.A. and Credit Suisse First Boston, as Co-Syndication Agents.
The undersigned hereby acknowledges that it has received and
reviewed a copy (in execution form) of the Credit Agreement, and agrees to:
(a) join the Credit Agreement as a Borrower party thereto;
(b) be bound by all covenants, agreements and acknowledgments
attributable to a Borrower in the Credit Agreement and any Note to which it is a
party; and
(c) perform all obligations required of it by the Credit
Agreement and any Note to which it is a party.
The undersigned hereby represents and warrants that the
representations and warranties with respect to it contained in, or made or
deemed made by it in, Article IV of the Credit Agreement are true and correct on
the date hereof.
THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
IN WITNESS WHEREOF, the undersigned has caused this Joinder
Agreement to be duly executed and delivered in New York, New York by its proper
and duly authorized officer as of this day of ______, __.
[Borrower]
By:
-----------------------------------
Title:
J-1
ACKNOWLEDGED AND AGREED TO:
[EL PASO CORPORATION]
By:
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Title:
J-2
EXHIBIT K
FORM OF OPINION OF [ASSOCIATE GENERAL]
[SENIOR] COUNSEL OF THE COMPANY
(a) Each of the Company and the Borrowing Subsidiaries (i) is
a corporation duly incorporated and existing in good standing under the
laws of the jurisdiction of its organization, and (ii) possesses all
the corporate powers and all other authorizations and licenses
necessary to engage in its business and operations as now conducted,
the failure to obtain or maintain which would have a Material Adverse
Effect.
(b) The execution and delivery by the Company and the
Borrowing Subsidiary of the Joinder Agreement and by the Borrowing
Subsidiary of the Notes made by it and the performance by the Borrowing
Subsidiary of its obligations as a "Borrower" under the Credit
Agreement and the Notes made by it are within such corporation's
corporate powers and have been duly authorized by all necessary
corporate action in respect of or by each of the Company and the
Borrowing Subsidiary (as applicable), and do not contravene (i) the
Company's or the Borrowing Subsidiary's charter or by-laws, each as
amended to date, (ii) any federal law, rule or regulation applicable to
the Company or the Borrowing Subsidiary (excluding provisions of
federal law expressly referred to in and covered by the opinion of [New
York Counsel] delivered to you in connection with the transactions
contemplated hereby) or any provision of the General Corporation Law of
the State of Delaware applicable to such corporation, or (iii) any
contractual restriction binding on or affecting the Company or the
Borrowing Subsidiary. The Joinder Agreement has been duly executed and
delivered on behalf of the Company and the Borrowing Subsidiary and the
Notes made by the Borrowing Subsidiary have been duly executed and
delivered on behalf of the Borrowing Subsidiary.
(c) No authorization or approval or other action by, and no
notice to or filing with, any federal governmental authority or
regulatory body (including, without limitation, the FERC) is required
for (i) the due execution and delivery by the Company or the Borrowing
Subsidiary of the Joinder Agreement, (ii) the performance by the
Borrowing Subsidiary of its obligations as a "Borrower" under the
Credit Agreement or (iii) the execution, delivery and performance by
the Borrowing Subsidiary of the Notes made by it, except those required
in the ordinary course of business in connection with the performance
by the Company or the Borrowing Subsidiary of its obligations under
certain covenants and warranties contained in the Joinder Agreement,
the Credit Agreement and the Notes and those which have been obtained
and are in full force and effect.
(d) To the best of my knowledge, there is no action, suit or
proceeding pending or overtly threatened against or involving the
Company or any of the Principal Subsidiaries which, in my reasonable
judgment (taking into account the exhaustion of all appeals), would
have a material adverse effect upon the consolidated financial
condition of the Company and its consolidated Subsidiaries taken as a
whole, or which purports to affect the legality, validity, binding
effect or enforceability of the Joinder Agreement, the Credit Agreement
or the Notes.
K-1
EXHIBIT L
FORM OF OPINION OF NEW YORK
COUNSEL TO THE COMPANY
(a) The execution and delivery to the Administrative Agent,
the CAF Advance Agent, the Co-Documentation Agents, the Co-Syndication
Agents and the Lenders by the Company and the Borrowing Subsidiary of
the Joinder Agreement and by the Borrowing Subsidiary of the Notes made
by it and the performance by the Borrowing Subsidiary of its
obligations as a "Borrower" under the Credit Agreement and the Notes
made by it (i) do not require under present law any filing or
registration by the Company or the Borrowing Subsidiary with, or
approval or consent to the Company or the Borrowing Subsidiary of, any
governmental agency or authority of the State of New York that has not
been made or obtained, except those, if any, required in the ordinary
course of business in connection with the performance by the Company or
the Borrowing Subsidiary of their respective obligations under certain
covenants and warranties contained in the Joinder Agreement, the Credit
Agreement and the Notes and (ii) do not violate any present law, or
present regulation of any governmental agency or authority, of the
State of New York applicable to the Company or the Borrowing Subsidiary
or its respective property.
(b) The Joinder Agreement, the Credit Agreement and the Notes
(as applicable) constitute the legal, valid and binding obligations of
each of the Company and the Borrowing Subsidiary enforceable against
each of the Company and the Borrowing Subsidiary in accordance with
their respective terms.
(c) The borrowings by the Borrowing Subsidiary under the
Credit Agreement and the applications of the proceeds thereof as
provided in the Credit Agreement will not violate Regulation T, U or X
of the Board of Governors of the Federal Reserve System.
L-1
EXHIBIT M
FORM OF
EXTENSION REQUEST
[Date]
JPMorgan Chase Bank, as Administrative Agent
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxx Xxxx
Gentlemen:
Reference is made to the $3,000,000,000 364-Day Revolving
Credit and Competitive Advance Facility Agreement, dated as of May 15, 2002,
among the undersigned, El Paso Natural Gas Company, Tennessee Gas Pipeline
Company, certain Lenders parties thereto, JPMorgan Chase Bank, as Administrative
Agent and CAF Advance Agent, ABN AMRO Bank N.V. and Citibank, N.A., as
Co-Documentation Agents, and Bank of America, N.A. and Credit Suisse First
Boston, as Co-Syndication Agents (as the same may be 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.
The undersigned hereby represents and warrants that no Event
of Default has occurred or is continuing.
This is an Extension Request pursuant to Section 2.23 of the
Credit Agreement requesting an extension of the Stated Termination Date to
[INSERT REQUESTED TERMINATION DATE]. Please transmit a copy of this Extension
Request to each of the Lenders.
EL PASO CORPORATION
By:
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Title:
M-1
