EXHIBIT 10.1
EXECUTION COPY
$2,150,000,000 364-Day Revolving Credit Agreement
dated as of
October 18, 2002
among
INTERNATIONAL LEASE FINANCE CORPORATION,
THE BANKS (as defined herein)
and
CITICORP USA, INC.,
as Administrative Agent
BANK OF AMERICA, N.A.
BANK OF SCOTLAND
as Co-Documentation Agents,
XXXXXXX XXXXX XXXXXX INC.,
as Sole Arranger and Book Manager
TABLE OF CONTENTS
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SECTION 1. CERTAIN DEFINITIONS................................................................................. 1
Section 1.1. Terms Generally.......................................................................... 1
Section 1.2. Specific Terms........................................................................... 1
SECTION 2. BID LOANS AND BID NOTES............................................................................. 10
Section 2.1. Making of Bid Loans...................................................................... 11
Section 2.2. Procedure for Bid Loans.................................................................. 11
Section 2.3. Funding of Bid Loans..................................................................... 13
Section 2.4. Bid Notes................................................................................ 13
SECTION 3. COMMITTED LOANS AND NOTES........................................................................... 13
Section 3.1. Agreement to Make Committed Loans........................................................ 13
Section 3.2. Procedure for Committed Loans............................................................ 14
Section 3.3. Maturity of Committed Loans.............................................................. 15
Section 3.4. Committed Notes.......................................................................... 15
SECTION 4. INTEREST AND FEES................................................................................... 15
Section 4.1. Interest Rates........................................................................... 15
Section 4.2. Interest Payment Dates................................................................... 16
Section 4.3. Setting and Notice of Committed Loan Rates............................................... 16
Section 4.4. Facility Fee............................................................................. 17
Section 4.5. Utilization Fee.......................................................................... 17
Section 4.6. Agent's Fees............................................................................. 17
Section 4.7. Computation of Interest and Fees......................................................... 17
SECTION 5. REDUCTION OR TERMINATION OF THE COMMITMENTS; REPAYMENT; PREPAYMENTS................................. 17
Section 5.1. Voluntary Termination or Reduction of the Commitments.................................... 17
Section 5.2. Voluntary Prepayments.................................................................... 18
Section 5.3. Term-Out Option.......................................................................... 18
SECTION 6. MAKING AND PRORATION OF PAYMENTS; SET-OFF; TAXES.................................................... 19
Section 6.1. Making of Payments....................................................................... 19
Section 6.2. Pro Rata Treatment; Sharing.............................................................. 19
Section 6.3. Set-off.................................................................................. 20
Section 6.4. Taxes, etc............................................................................... 20
SECTION 7. INCREASED COSTS AND SPECIAL PROVISIONS FOR ABSOLUTE RATE LOANS AND LIBOR RATE LOANS................. 22
Section 7.1. Increased Costs.......................................................................... 22
Section 7.2. Basis for Determining Interest Rate Inadequate or Unfair................................. 23
Section 7.3. Changes in Law Rendering Certain Loans Unlawful.......................................... 24
Section 7.4. Funding Losses........................................................................... 24
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Section 7.5. Discretion of Banks as to Manner of Funding.............................................. 25
Section 7.6. Conclusiveness of Statements; Survival of Provisions..................................... 25
SECTION 8. REPRESENTATIONS AND WARRANTIES...................................................................... 25
Section 8.1. Organization, etc........................................................................ 25
Section 8.2. Authorization; Consents; No Conflict..................................................... 25
Section 8.3. Validity and Binding Nature.............................................................. 26
Section 8.4. Financial Statements..................................................................... 26
Section 8.5. Litigation and Contingent Liabilities.................................................... 26
Section 8.6. Employee Benefit Plans................................................................... 26
Section 8.7. Investment Company Act................................................................... 27
Section 8.8. Public Utility Holding Company Act....................................................... 27
Section 8.9. Regulation U............................................................................. 27
Section 8.10. Information............................................................................. 27
Section 8.11. Compliance with Applicable Laws, etc.................................................... 27
Section 8.12. Insurance............................................................................... 27
Section 8.13. Taxes................................................................................... 28
Section 8.14. Use of Proceeds......................................................................... 28
Section 8.15. Pari Passu.............................................................................. 28
Section 8.16. Ownership and Liens..................................................................... 28
SECTION 9. COVENANTS........................................................................................... 28
Section 9.1. Reports, Certificates and Other Information.............................................. 28
Section 9.2. Existence................................................................................ 30
Section 9.3. Nature of Business....................................................................... 30
Section 9.4. Books, Records and Access................................................................ 30
Section 9.5. Insurance................................................................................ 30
Section 9.6. Repair................................................................................... 30
Section 9.7. Taxes.................................................................................... 31
Section 9.8. Compliance............................................................................... 31
Section 9.9. Sale of Assets........................................................................... 31
Section 9.10. Consolidated Indebtedness to Consolidated Tangible Net Worth Ratio...................... 31
Section 9.11. Fixed Charge Coverage Ratio............................................................. 31
Section 9.12. Consolidated Tangible Net Worth......................................................... 31
Section 9.13. Restricted Payments..................................................................... 31
Section 9.14. Liens................................................................................... 32
Section 9.15. Leases.................................................................................. 34
Section 9.16. Use of Proceeds......................................................................... 34
SECTION 10. CONDITIONS TO LENDING.............................................................................. 34
Section 10.1. Conditions Precedent to All Loans....................................................... 34
Section 10.2. Conditions to the Availability of the Commitments....................................... 35
SECTION 11. EVENTS OF DEFAULT AND THEIR EFFECT................................................................. 36
Section 11.1. Events of Default....................................................................... 36
Section 11.2. Effect of Event of Default.............................................................. 38
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SECTION 12. THE AGENT.......................................................................................... 38
Section 12.1. Authorization........................................................................... 38
Section 12.2. Indemnification......................................................................... 39
Section 12.3. Action on Instructions of the Required Banks............................................ 39
Section 12.4. Payments................................................................................ 39
Section 12.5. Exculpation............................................................................. 40
Section 12.6. Credit Investigation.................................................................... 41
Section 12.7. CUSA and Affiliates..................................................................... 41
Section 12.8. Resignation............................................................................. 41
SECTION 13. GENERAL............................................................................................ 41
Section 13.1. Waiver; Amendments...................................................................... 41
Section 13.2. Notices................................................................................. 42
Section 13.3. Computations............................................................................ 43
Section 13.4. Assignments; Participations............................................................. 43
Section 13.5. Costs, Expenses and Taxes............................................................... 45
Section 13.6. Indemnification......................................................................... 46
Section 13.7. Regulation U............................................................................ 46
Section 13.8. Extension of Termination Dates; Removal of Banks; Substitution of Banks................. 46
Section 13.9. Captions................................................................................ 48
Section 13.10. Governing Law; Severability............................................................ 48
Section 13.11. Counterparts; Effectiveness............................................................ 49
Section 13.12. Further Assurances..................................................................... 49
Section 13.13. Successors and Assigns................................................................. 49
Section 13.14. Waiver of Jury Trial................................................................... 49
Section 13.15. No Fiduciary Relationship.............................................................. 49
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SCHEDULES AND EXHIBITS
Schedule I Schedule of Banks (Sections 1.2 and 13.8)
Schedule II Fees and Margins (Sections 1.2, 4.4, 4.5 and 4.6)
Schedule III Address for Notices (Section 13.2)
Exhibit A Form of Notice of Competitive Bid Borrowing
(Sections 1.2 and 2.2)
Exhibit B Form of Bid (Sections 1.2 and 2.2)
Exhibit C Form of Committed Loan Request (Section 1.2 and 3.2)
Exhibit D Form of Bid Note (Section 1.2 and 2.4)
Exhibit E Form of Committed Note (Section 1.2 and 3.4)
Exhibit F Fixed Charge Coverage Ratio (Sections 1.2 and 9.11)
Exhibit G Form of Opinion of Counsel for the Company (Section 10.2.5)
Exhibit H Form of Opinion of the General Counsel of the Company
(Section 10.2.5)
Exhibit I Form of Assignment and Assumption Agreement (Section 13.4.1)
Exhibit J Form of Request for Extension of Termination Date
(Section 13.8)
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364-DAY REVOLVING CREDIT AGREEMENT
364-DAY REVOLVING CREDIT AGREEMENT (this "Agreement"), dated
as of October 18, 2002, among INTERNATIONAL LEASE FINANCE CORPORATION, a
California corporation (herein called the "Company"), the financial institutions
listed on the signature pages hereof (herein, together with their respective
successors and assigns, collectively called the "Banks" and individually each
called a "Bank") and CITICORP USA, INC. (herein, in its individual corporate
capacity, together with its successors and assigns, called "CUSA"), as agent for
the Banks (herein, in such capacity, together with its successors and assigns in
such capacity, called the "Agent").
W I T N E S S E T H:
WHEREAS, the Company has requested the Banks to lend up to
$2,150,000,000 to the Company on a 364-day revolving basis for general corporate
purposes;
NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein contained, the parties hereto agree as follows:
SECTION 1. CERTAIN DEFINITIONS.
Section 1.1. Terms Generally. The definitions ascribed to
terms in this Section 1 and elsewhere in this Agreement shall apply equally to
both the singular and plural forms of the terms defined. Whenever the context
may require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. The words "include", "includes" and "including" shall be deemed to
be followed by the phrase "without limitation". The words "hereby", "herein",
"hereof", "hereunder" and words of similar import refer to this Agreement as a
whole (including any exhibits and schedules hereto) and not merely to the
specific section, paragraph or clause in which such word appears. All references
herein to Sections, Exhibits and Schedules shall be deemed references to
Sections of and Exhibits and Schedules to this Agreement unless the context
shall otherwise require.
Section 1.2. Specific Terms. When used herein, the following
terms shall have the following meanings:
"Absolute Rate" means a rate of interest per annum, expressed
as a percentage to four decimal places and set forth in a Bid for a particular
Bid Loan amount and a particular Loan Period.
"Absolute Rate Loan" means any Loan which bears interest at an
Absolute Rate.
"Affiliate" means, with respect to any Person, any other
Person directly or indirectly controlling, controlled by, or under direct or
indirect common control with such Person. A Person shall be deemed to control
another Person if such first Person possesses, directly or indirectly, the power
to direct or cause the direction of the management and policies of such other
Person, whether through ownership of stock, by contract or otherwise.
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"Agent" - see Preamble.
"Aggregate Commitment" means $2,150,000,000, as reduced by any
reduction in the Commitments made from time to time pursuant to Section 5.1 or
13.8.
"Agreement" - see Preamble.
"AIG" means American International Group, Inc.
"Assignee" - see Section 13.4.1.
"Authorized Officer" of the Company means any of the Chairman
of the Board, the President, the Executive Vice President and Chief Financial
Officer, the Treasurer, the Controller and the Assistant Controller of the
Company.
"Available Commitment" - see Section 2.2(a).
"Bank" - see Preamble.
"Bank Parties" - see Section 13.6.
"Base LIBOR" means, with respect to any Loan Period for a
LIBOR Rate Loan, the rate per annum determined by the Agent to be the arithmetic
mean (rounded to the nearest 1/16 of 1% or, if there is no nearest 1/16 of 1%,
to the next higher 1/16 of 1%) of the respective rates of interest communicated
by the Reference Banks to the Agent as the rate at which Dollar deposits are
offered to the Reference Banks by leading banks in the London interbank deposit
market at approximately 11:00 a.m., London time, on the second full Business Day
preceding the first day of such Loan Period in an amount substantially equal to
the amount of such LIBOR Rate Loan for such Reference Banks and for a period
equal to such Loan Period.
"Base Rate" means a fluctuating interest rate per annum, as
shall be in effect from time to time, which rate per annum shall on any day be
equal to the higher of, (a) the rate of interest announced publicly by Citibank,
N.A. in New York, New York, from time to time, as Citibank, N.A.'s base rate;
(b) the Federal Funds Rate for such day plus 1/2 of 1% per annum; and (c) the
Three-Month Secondary CD Rate for such day plus 1/2 of 1% per annum.
"Base Rate Loan" means any Loan which bears interest at the
Base Rate.
"Bid" means one or more offers by a Bank to make one or more
Bid Loans, submitted to the Agent by telephone no later than the Submission
Deadline and promptly confirmed in writing on the same day on a duly completed
and executed form substantially similar to Exhibit B, personally delivered or
transmitted by facsimile to the Agent.
"Bid Borrowing" - see Section 2.2(a).
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"Bid Loan" means a Loan in Dollars that is an Absolute Rate
Loan or a LIBOR Rate Loan made pursuant to Section 2.
"Bid Note" means a promissory note of the Company,
substantially in the form of Exhibit D, duly completed, evidencing Bid Loans
made to the Company, as such note may be amended, modified or supplemented or
supplanted pursuant to Section 13.4.1 from time to time.
"Business Day" means any day of the year on which banks are
open for commercial banking business in the City of New York and, if the
applicable Business Day relates to the determination of LIBOR for any LIBOR Rate
Loan, any such Business Day on which dealings in deposits in Dollars are
transacted in the London interbank market.
"Capitalized Lease" means any lease under which any
obligations of the lessee are, or are required to be, capitalized on a balance
sheet of the lessee in accordance with generally accepted accounting principles
in the United States of America.
"Capitalized Rentals" means, as of the date of any
determination, the amount at which the obligations of the lessee, due and to
become due under all Capitalized Leases under which the Company or any
Subsidiary is a lessee, are reflected as a liability on a consolidated balance
sheet of the Company and its Subsidiaries.
"Code" means the Internal Revenue Code of 1986, as amended.
"Commitments" means the Banks' commitments to make Committed
Loans hereunder; and "Commitment" as to any Bank means the amount set forth
opposite such Bank's name on Schedule I (as reduced in accordance with Section
5.1, or as periodically revised in accordance with Section 13.4 or Section
13.8).
"Committed Loan" means a Loan in Dollars that is a Base Rate
Loan or LIBOR Rate Loan made pursuant to Section 3 or, if the Term-Out Option is
in effect, Section 5.3.
"Committed Loan Request" - see Section 3.2(a).
"Committed Note" means a promissory note of the Company,
substantially in the form of Exhibit E, duly completed, evidencing Committed
Loans to the Company, as such note may be amended, modified or supplemented or
supplanted pursuant to Section 13.4.1 from time to time.
"Company" - see Preamble.
"Consolidated Indebtedness" means, as of the date of any
determination, the total amount of Indebtedness, less the amount of current and
deferred income taxes and rentals received in advance of the Company and its
Subsidiaries determined on a consolidated basis in accordance with generally
accepted accounting principles in the United States of America.
"Consolidated Tangible Net Worth" means, as of the date of any
determination,
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the total of shareholders' equity (including capital stock, additional paid-in
capital and retained earnings after deducting treasury stock), less the sum of
the total amount of goodwill, organization expenses, unamortized debt issue
costs (determined on an after-tax basis), deferred assets other than prepaid
insurance and prepaid taxes, the excess of cost of shares acquired over book
value of related assets, surplus resulting from any revaluation write-up of
assets subsequent to December 31, 2000 and such other assets as are properly
classified as intangible assets, all determined in accordance with generally
accepted accounting principles in the United States of America consolidating the
Company and its Subsidiaries.
"CUSA" - see Preamble.
"Dollar", and $, refer to the lawful money of the United
States of America.
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended.
"ERISA Affiliate" means any corporation, trade or business
that is, along with the Company or any Subsidiary, a member of a controlled
group of corporations or a controlled group of trades or businesses, as
described in sections 414(b) and 414(c), respectively, of the Code or Section
4001 of ERISA.
"Eurodollar Reserve Percentage" means for any day in any Loan
Period for any LIBOR Rate Loan that percentage in effect on such day as
prescribed by the Board of Governors of the Federal Reserve System (or any
successor thereto) or other U.S. government agency for determining the reserve
requirement (including, without limitation, any marginal, basic, supplemental or
emergency reserves) for a member bank of the Federal Reserve System in New York
City with deposits exceeding one billion dollars in respect of eurocurrency
funding liabilities. LIBOR shall be adjusted automatically on and as of the
effective date of any change in the Eurodollar Reserve Percentage.
"Event of Default" means any of the events described in
Section 11.1.
"Existing Litigation" - see Section 10.1.3.
"FASB 13" means the Statement of Financial Accounting
Standards No. 13 (Accounting for Leases) as in effect on the date hereof.
"Federal Funds Rate" means, for any period, a fluctuating
interest rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published for such
day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published
for any day which is a Business Day, the average of the quotations for such day
on such transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it.
"Fixed Charge Coverage Ratio" on the last day of any quarter
of any fiscal year of
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the Company means the ratio for the period of four fiscal quarters ending on
such day of earnings to combined fixed charges and preferred stock dividends
referred to in Paragraph (d)(1)(i) of Item 503 of Regulation S-K of the
Securities and Exchange Commission, as amended from time to time, and determined
pursuant to Paragraphs (d)(2) through (d)(10) of such Item 503 with the Company
as "registrant" (such ratio for the four fiscal quarters ended December 31, 2001
is attached hereto as Exhibit F); provided, however, that if the Required Banks
in their sole discretion determine that amendments to Regulation S-K subsequent
to the date hereof substantially modify the provisions of such Item 503, "Fixed
Charge Coverage Ratio" shall have the meaning determined by this definition
without regard to any such amendments.
"Funding Date" means the date on which any Loan is scheduled
to be disbursed.
"Funding Office" means, with respect to any Bank, any office
or offices of such Bank or Affiliate or Affiliates of such Bank through which
such Bank shall fund or shall have funded any Loan. A Funding Office may be, at
such Bank's option, either a domestic or foreign office of such Bank or a
domestic or foreign office of an Affiliate of such Bank.
"Governmental Authority" means any nation or government, any
state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.
"Guaranties" by any Person means all obligations (other than
endorsements in the ordinary course of business of negotiable instruments for
deposit or collection) of such Person guaranteeing or in effect guaranteeing any
Indebtedness, dividend or other obligation of any other Person (the "Primary
Obligor") in any manner, whether directly or indirectly, including, without
limitation, all obligations incurred through an agreement, contingent or
otherwise, by such Person: (a) to purchase such Indebtedness or obligation or
any property or assets constituting security therefor, (b) to advance or supply
funds (i) for the purchase or payment of such Indebtedness or obligation or (ii)
to maintain working capital or other balance sheet condition or otherwise to
advance or make available funds for the purchase or payment of such Indebtedness
or obligation, (c) to lease property or to purchase securities or other property
or services primarily for the purpose of assuring the owner of such Indebtedness
or obligation of the ability of the Primary Obligor to make payment of the
Indebtedness or obligation or (d) otherwise to assure the owner of the
Indebtedness or obligation of the Primary Obligor against loss in respect
thereof; provided, however, that the obligation described in clause (c) shall
not include (i) obligations of a buyer under an agreement with a seller to
purchase goods or services entered into in the ordinary course of such buyer's
and seller's businesses unless such agreement requires that such buyer make
payment whether or not delivery is ever made of such goods or services and (ii)
remarketing agreements where the remaining debt on an aircraft does not exceed
the aircraft's net book value, determined in accordance with industry standards,
except that clause (c) shall apply to the amount of remaining debt under a
remarketing agreement that exceeds the net book value of the aircraft. For the
purposes of all computations made under this Agreement, a Guaranty in respect of
any Indebtedness for borrowed money shall be deemed to be Indebtedness equal to
the principal amount of such Indebtedness for borrowed money which has been
guaranteed, and a Guaranty in respect of any other obligation or liability or
any dividend shall be deemed to be Indebtedness equal to the maximum aggregate
amount of such
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obligation, liability or dividend.
"Indebtedness" of any Person means and includes all
obligations of such Person which in accordance with generally accepted
accounting principles in the United States of America shall be classified upon a
balance sheet of such Person as liabilities of such Person, and in any event
shall include all:
(a) obligations of such Person for borrowed money or which
have been incurred in connection with the acquisition of property or
assets (other than security and other deposits on flight equipment),
(b) obligations secured by any Lien or other charge upon
property or assets owned by such Person, even though such Person has
not assumed or become liable for the payment of such obligations,
(c) obligations created or arising under any conditional sale,
or other title retention agreement with respect to property acquired by
such Person, notwithstanding the fact that the rights and remedies of
the seller, lender or lessor under such agreement in the event of
default are limited to repossession or sale of property,
(d) Capitalized Rentals of such Person under any Capitalized
Lease,
(e) obligations evidenced by bonds, debentures, notes or other
similar instruments, and
(f) Guaranties by such Person to the extent required pursuant
to the definition thereof.
"Indemnified Liabilities" - see Section 13.6.
"Investment" means any investment, made in cash or by delivery
of any kind of property or asset, in any Person, whether (i) by acquisition of
(x) shares of stock or similar interest, (y) Indebtedness or (z) other
obligation or security or (ii) by loan, advance or capital contribution, or
otherwise. For purposes of this Agreement, Investment shall exclude any notes
receivable and any finance or sales type leases entered into by the Company or
any of its Subsidiaries in the ordinary course of business. The amount of any
Investment shall be the original cost of such Investment plus the cost of all
additions thereto and minus the amount of any portion of such Investment repaid
to such Person in cash as a return of capital, but without any other adjustment
for increases or decreases in value, or write ups, write-downs or write-offs
with respect to such Investment.
"LIBOR" means with respect to any Loan Period the rate per
annum (rounded to the nearest 1/16 of 1% or, if there is no nearest 1/16 of 1%,
to the next higher 1/16 of 1%), determined pursuant to the following formula:
Base LIBOR
LIBOR= ------------------------------------
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(1 - Eurodollar Reserve Percentage)
"LIBOR Rate" means (i) with respect to Committed Loans that
are LIBOR Rate Loans (but not Term Loans), LIBOR plus the applicable rate margin
set forth in Schedule II, (ii) with respect to Bid Loans that are LIBOR Rate
Loans, LIBOR plus or minus the rate margin set forth in a Bid for a particular
Bid Loan amount and a particular Loan Period and (iii) with respect to Term
Loans that are LIBOR Rate Loans, LIBOR plus the applicable rate margin set forth
in the row entitled "Drawn Pricing Under the Term-Out Option (if LIBOR Rate
Loans)" on Schedule II.
"LIBOR Rate Loan" means any Loan which bears interest at a
LIBOR Rate.
"Lien" means any mortgage, pledge, lien, security interest or
other charge, encumbrance or preferential arrangement, including the retained
security title of a conditional vendor or lessor.
"Litigation Actions" means all litigation, claims and
arbitration proceedings, proceedings before any Governmental Authority or
investigations which are pending or, to the knowledge of the Company, threatened
against, or affecting, the Company or any Subsidiary.
"Loan Period" means (i) with respect to any Absolute Rate
Loan, the period commencing on such Loan's Funding Date and ending not less than
14 days thereafter nor more than 183 days thereafter as specified in the Bid
Loan Request related to such Bid Loan and (ii) with respect to any LIBOR Rate
Loan, the period commencing on such Loan's Funding Date and ending 1, 2, 3 or 6
months thereafter as selected by the Company pursuant to Section 3.2(a) or
specified in the Notice of Competitive Bid Borrowing, as the case may be;
provided, however, that:
(a) if a Loan Period would otherwise end on a day which is not
a Business Day, such Loan Period shall end on the next succeeding
Business Day (unless, in the case of a LIBOR Rate Loan, such next
succeeding Business Day would fall in the next succeeding calendar
month, in which case such Loan Period shall end on the next preceding
Business Day),
(b) in the case of a Loan Period for any LIBOR Rate Loan, if
there exists no day numerically corresponding to the day such Loan was
made in the month in which the last day of such Loan Period would
otherwise fall, such Loan Period shall end on the last Business Day of
such month, and
(c) on the date of the making of any Loan by a Bank, the Loan
Period for such Loan shall not extend beyond the then-scheduled
Termination Date for such Bank (or the date contemplated by Section 5.3
if the Term-Out Option is in effect).
"Loans" means, collectively, the Bid Loans and the Committed
Loans and, individually, any Bid Loan or Committed Loan.
"Material Adverse Effect" means (i) any material adverse
effect on the business,
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properties, condition (financial or otherwise) or operations, present or
prospective, of the Company and its Subsidiaries, taken as a whole since any
stated reference date or from and after the date of determination, as the case
may be, (ii) any material adverse effect on the ability of the Company to
perform its obligations hereunder and under the Notes or (iii) any material
adverse effect on the legality, validity, binding effect or enforceability of
this Agreement or any Note.
"Multiemployer Plan" has the meaning assigned to such term in
Section 3(37) of ERISA.
"New Litigation" - see Section 10.1.3.
"Notes" means, collectively, the Bid Notes and the Committed
Notes; and "Note" means any individual Bid Note or Committed Note.
"Notice of Competitive Bid Borrowing" - see Section 2.2(a).
"Notice Office" means the office of CUSA which, as of the date
hereof, is located at 0 Xxxxx Xxx, Xxxxx 000, Xxx Xxxxxx, XX 00000, Telecopy
Number 000-000-0000; Telephone 000-000-0000.
"Operating Lease" means any lease other than a Capitalized
Lease; provided, however, that leases with an original term of less than one
year shall not be Operating Leases.
"Operating Lease Rental" of an Operating Lease means, as of
the date of any determination thereof, the net present value of the aggregate
unpaid amount due at such date and to become due from the Company or any
Subsidiary, on a consolidated basis, as lessee under such Operating Lease
discounted at such lessee's incremental borrowing rate or if the interest rate
implicit in such Operating Lease can be practically determined and is smaller,
at such interest rate, such present value and interest rate being determined in
accordance with standard financial practice and such borrowing rate being
determined in accordance with FASB 13, excluding from such aggregate amount all
amounts which are in excess of the minimum aggregate unpaid amount due at such
date and to become due from such lessee under such Operating Lease assuming that
such lessee would take or fail to take all actions with respect to all
termination, renewal, purchase and other options as would produce the least
amount becoming due under such Operating Lease, and "Operating Lease Rentals"
means, as of the date of any determination, the aggregate Operating Lease Rental
of all Operating Leases as of such date.
"Participant" - see Section 13.4.2.
"Payment Office" means the office of the Agent which, as of
the date hereof, is at 0 Xxxxx Xxx, Xxxxx 000, Xxx Xxxxxx, XX 00000, Account
Number: 00000000.
"PBGC" means the Pension Benefit Guaranty Corporation and any
entity succeeding to any or all of its functions under ERISA.
"Percentage" means as to any Bank the ratio, expressed as a
percentage, that such
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Bank's Commitment as set forth opposite such Bank's name on Schedule I, as
periodically revised in accordance with Section 13.4 or 13.8, bears to the
Aggregate Commitment or, if the Commitments have been terminated, the ratio,
expressed as a percentage, that the aggregate principal amount of such Bank's
outstanding Loans bears to the aggregate principal amount of all outstanding
Loans.
"Person" means an individual or a corporation, partnership,
trust, incorporated or unincorporated association, joint venture, joint stock
company, government (or an agency or political subdivision thereof) or other
entity of any kind.
"Plan" means, at any date, any employee pension benefit plan
(as defined in section 3(2) of ERISA) which is subject to Title IV of ERISA
(other than a Multiemployer Plan) and to which the Company or any ERISA
Affiliate may have any liability, including any liability by reason of having
been a substantial employer within the meaning of section 4063 of ERISA at any
time during the preceding five years, or by reason of being deemed to be a
contributing sponsor under section 4069 of ERISA.
"Reference Banks" means Citibank, N.A., Bank of America, N.A.
and The Governor and Company of the Bank of Scotland.
"Reportable Event" means an event described in Section 4043(c)
of ERISA with respect to a Plan other than those events as to which the 30-day
notice period is waived under subsection .22, .23, .25, .27 or .28 of PBGC
Regulation Section 4043.
"Required Banks" means Banks having an aggregate Percentage of
51% or more.
"Significant Subsidiary" means any Subsidiary which is so
defined pursuant to Rule 1-02 of Regulation S-X promulgated by the Securities
and Exchange Commission.
"Submission Deadline" - see Section 2.2(b).
"Subsidiary" means any Person of which or in which the Company
and its other Subsidiaries own directly or indirectly 50% or more of:
(a) the combined voting power of all classes of stock having
general voting power under ordinary circumstances to elect a majority
of the board of directors of such Person, if it is a corporation,
(b) the capital interest or profits interest of such Person,
if it is a partnership, joint venture or similar entity, or
(c) the beneficial interest of such Person, if it is a trust,
association or other unincorporated organization.
"Successor Bank" - see Section 13.8(c).
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"Taxes" with respect to any Person means income, excise and
other taxes, and all assessments, imposts, duties and other governmental charges
or levies, imposed upon such Person, its income or any of its properties,
franchises or assets by any Governmental Authority.
"Terminating Bank" - see Section 13.8(c).
"Termination Date" means, with respect to any Bank, the
earliest to occur of (i) October 17, 2003 or such later date as may be agreed to
by such Bank pursuant to Section 13.8(a), or if such day is not a Business Day,
the next preceding Business Day, (ii) the date on which the Commitments shall
terminate pursuant to Section 11.2 or the Commitments shall be reduced to zero
pursuant to Section 5.1 and (iii) the date specified as such Bank's Termination
Date pursuant to Section 13.8(b), or, if such day is not a Business Day, the
next preceding Business Day; in all cases, subject to the provisions of Section
13.8(d).
"Term Loans" - see Section 5.3.
"Term-Out Option" means the option of the Company to convert
the Committed Loans to Term Loans as defined in and contemplated by Section 5.3.
"Three-Month Secondary CD Rate" means, for any period, the
latest three-week moving average of secondary market morning offering rates in
the United States of America for three-month certificates of deposit of major
United States of America money market banks, such three-week moving average
being determined weekly on each Monday (or, if any such day is not a Business
Day, on the next succeeding Business Day) for the three-week period ending on
the next previous Friday by the Agent on the basis of such rates reported by
certificate of deposit dealers to and published by the Federal Reserve Bank of
New York or, if such publications shall be suspended or terminated, on the basis
of quotations for such rates received by the Agent from three New York
certificate of deposit dealers of recognized standing selected by the Agent, in
either case adjusted to the nearest 1/4 of 1% or, if there is no nearest 1/4 of
1%, to the next highest 1/4 of 1%.
"Unmatured Event of Default" means any event which if it
continues uncured will, with lapse of time or notice or lapse of time and
notice, constitute an Event of Default.
"Wholly-owned Subsidiary" means any Person of which or in
which the Company and its other Wholly-owned Subsidiaries own directly or
indirectly 100% of:
(a) the issued and outstanding shares of stock (except shares
required as directors, qualifying shares),
(b) the capital interest or profits interest of such Person,
if it is a partnership, joint venture or similar entity, or
(c) the beneficial interest of such Person, if it is a trust,
association or other unincorporated organization.
SECTION 2. BID LOANS AND BID NOTES.
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Section 2.1. Making of Bid Loans. On the terms and subject to
the conditions of this Agreement, each Bank, severally and for itself alone, may
(but is not obligated to) make Bid Loans to the Company from time to time on or
after the date hereof and prior to the date which is the fourteenth day
preceding such Bank's Termination Date in amounts equal to such Bank's Bids that
have been accepted as provided in Section 2.2(c); provided, that the aggregate
principal amount of all outstanding Loans shall not at any time exceed the then
Aggregate Commitment.
Section 2.2. Procedure for Bid Loans.
(a) Bid Loan Request. Whenever the Company desires to incur a
competitive bid borrowing (a "Bid Borrowing"), it shall give the Agent written
notice (or telephonic notice promptly confirmed in writing), such notice to be
delivered to the Agent at its Notice Office no later than 12:00 Noon, New York
City time, at least three Business Days prior to any proposed LIBOR Rate Loan
and at least one Business Day prior to any proposed Absolute Rate Loan. Each
such notice shall be substantially in the form of Exhibit A hereto (each a
"Notice of Competitive Bid Borrowing"), and shall specify in each case (i) the
date of such proposed Bid Borrowing (which shall be a Business Day), (ii) the
aggregate amount of the proposed Bid Borrowing, (iii) whether the proposed Bid
Borrowing is to be an Absolute Rate Loan or a LIBOR Rate Loan and the Loan
Period, (iv) the maturity date for repayment of each Bid Loan to be made as part
of such borrowing (which maturity date shall not be earlier than one month after
the date of any proposed LIBOR Rate Loan or 14 days after the date of any
proposed Absolute Rate Loan or later than the earliest to occur of (x) six
months after the date of such proposed Bid Loan, (y) the Termination Date and
(z) if the proposed Bid Loan has an interest rate that is the LIBOR Rate, the
last day of the proposed Loan Period), (v) the interest payment date or dates
relating thereto, (vi) the account of the Company to which the proceeds of such
Bid Borrowing are to be credited and (vii) any other terms to be applicable to
such Bid Borrowing. The Agent shall promptly give each Bank written notice (or
telephonic notice promptly confirmed in writing) of each such request for a Bid
Borrowing received by it from the Company. Each Notice of Competitive Bid
Borrowing shall contemplate Bid Loans in a minimum aggregate principal amount of
$10,000,000 or a higher integral multiple of $1,000,000, not to exceed, however,
the excess of the then Aggregate Commitment over the aggregate principal amount
of all outstanding Loans, calculated as of the relevant Funding Date, assuming
that the Company will pay, when due, all Loans maturing on or prior to such
Funding Date (the "Available Commitment").
(b) Bidding Procedure. Each Bank shall, if in its sole
discretion it elects to do so, irrevocably offer to make one or more Bid Loans
to the Company as part of such proposed Bid Borrowing at a rate or rates of
interest specified by such Bank in its sole discretion and determined by such
Bank independently of each other Bank, by notifying by telephone confirmed in
writing to the Agent at its Notice Office (which shall give prompt notice
thereof to the Company), before 10:00 a.m., New York City time, on the date (the
"Submission Deadline") that is (x) in the case of a proposed Absolute Rate Loan,
the same day as the date of such proposed Bid Loan and (y) in the case of a
proposed LIBOR Rate Loan, two Business Days before the date of such proposed Bid
Loan. Each Bid shall be substantially in the form of Exhibit B (each a "Bid"),
and shall specify in each case (i) the Loan Period, (ii) the minimum
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amount and maximum amount of each Bid Loan that such Bank would be willing to
make as part of such proposed Bid Borrowing (which amounts may, subject to the
proviso in Section 2.1, exceed such Bank's Commitment), (iii) the rate or rates
of interest therefor and (iv) such Bank's lending office with respect to such
Bid Loan; provided, that if the Agent in its capacity as a Bank shall, in its
sole discretion, elect to make any such offer, it shall notify the Company of
such offer before 8:30 a.m., New York City time, on the Submission Deadline.
(c) Acceptance of Bids. The Company shall, in turn, before
10:30 a.m., New York City time, on the Submission Deadline, either:
(i) cancel such proposed Bid Borrowing by giving the Agent
notice to that effect, or
(ii) accept (such acceptance to be irrevocable) one or more of
the offers made by any Bank or Banks pursuant to clause (b) above by
giving notice (in writing or by telephone confirmed in writing) to the
Agent of the amount of each Bid Loan (which amount shall be equal to or
greater than the minimum amount, and equal to or less than the maximum
amount, notified to the Company by the Agent on behalf of such Bank for
such Bid Borrowing pursuant to clause (b) above) to be made by such
Bank as part of such Bid Borrowing, and reject any remaining offers
made by any Bank pursuant to clause (b) above by giving the Agent
notice to that effect; provided, that for any maturity date acceptance
of offers may only be made on the basis of ascending Absolute Rates (in
the case of an Absolute Rate Loan) or floating rates (in the case of a
LIBOR Rate Loan), in each case commencing with the lowest rate so
offered and only as to offers made in conformity with the terms hereof;
provided, further, however, if offers are made by two or more Banks at
the same rate or rates and acceptance of all such equal offers would
result in a greater principal amount of Bid Loans being accepted than
the aggregate principal amount requested by the Company, the Company
shall have the right to accept one or more of such equal offers in
their entirety and reject the other equal offer or offers or to
allocate acceptance among all such equal offers (but giving effect to
the minimum and maximum amounts specified for each such offer pursuant
to clause (b) above), as the Company may elect in its sole discretion.
The Company may not accept offers whose aggregate principal amount is
greater than the requested aggregate amount as specified in the related
Notice of Competitive Bid Borrowing, subject to the proviso in Section
2.1.
(d) Cancellation of Bid Borrowing. If the Company notifies the
Agent that such proposed Bid Borrowing is cancelled pursuant to clause (c)(i)
above, the Agent shall give prompt notice thereof to the Banks and such Bid
Borrowing shall not be made.
(e) Notification of Acceptance. If the Company accepts one or
more of the offers made by any Bank or Banks pursuant to clause (c)(ii) above,
the Agent shall in turn promptly notify (x) each Bank that has made an offer as
described in clause (b) above, of the date and aggregate amount of such Bid
Borrowing and whether or not any offer or offers made by such Bank pursuant to
clause (b) above have been accepted by the Company and (y) each Bank that is to
make a Bid Loan as part of such Bid Borrowing, of the amount of each Bid Loan to
be made by such Bank as part of such Bid Borrowing.
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(f) Reliance. The Agent may rely and act upon notice given by
telephone by individuals reasonably believed by the Agent to be those designated
to the Agent by the Company or by any Bank in writing from time to time, without
waiting for receipt of written confirmation thereof, and the Company hereby
agrees to indemnify and hold harmless the Agent from and against any and all
losses, costs, expenses, damages, claims, actions or other proceedings relating
to such reliance.
Section 2.3. Funding of Bid Loans. No later than 1:00 p.m.,
New York City time, on the date specified in each Notice of Competitive Bid
Borrowing, each Bank will make available the Bid Loan, if any, to be made by
such Bank as part of the Bid Borrowing requested to be made on such date in the
manner provided below. All amounts shall be made available to the Agent in
Dollars and immediately available funds at the Payment Office of the Agent and
the Agent promptly will make available to the Company at its account specified
in the relevant Notice of Competitive Bid Borrowing the aggregate of the amounts
so made available in the type of funds received. Unless the Agent shall have
been notified by any Bank which has submitted a bid pursuant to Section 2.2(b)
prior to the date of the proposed Bid Borrowing that such Bank does not intend
to make available to the Agent its portion, if any, of the Bid Borrowing to be
made on such date, the Agent may assume that such Bank has made such amount
available to the Agent on such date of the Bid Borrowing, and the Agent, in
reliance upon such assumption, may (in its sole discretion and without any
obligation to do so) make available to the Company a corresponding amount.
Section 2.4. Bid Notes. The Bid Loans of each Bank shall be
evidenced by a Bid Note payable to the order of such Bank in the original
principal amount of the Aggregate Commitment. Each Bank shall record in its
records, or at its option on the schedule attached to its Bid Note, the date and
amount of each Bid Loan made by such Bank, each repayment thereof, and the dates
on which the Loan Period for such Loan shall begin and end. The aggregate unpaid
principal amount so recorded shall be refutable presumptive evidence of the
principal amount owing and unpaid on such Note. The failure to so record or any
error in so recording any such amount or any payment thereof shall not, however,
limit or otherwise affect the obligations of the Company hereunder or under such
Bid Note to repay the principal amount of each Bid Loan together with all
interest accruing thereon.
SECTION 3. COMMITTED LOANS AND NOTES.
Section 3.1. Agreement to Make Committed Loans. On the terms
and subject to the conditions of this Agreement, each Bank, severally and for
itself alone, agrees to make Loans (herein collectively called "Committed Loans"
and individually each called a "Committed Loan") on a revolving basis from time
to time from the date hereof until such Bank's Termination Date in such Bank's
Percentage of such aggregate amounts as the Company may from time to time
request as provided in Section 3.2; provided, that (a) the aggregate principal
amount of all outstanding Committed Loans of any Bank shall not at any time
exceed the amount set forth opposite such Bank's name on Schedule I (as reduced
in accordance with Section 5.1, 13.4 or 13.8) and (b) the aggregate principal
amount of all outstanding Committed Loans of all Banks plus the aggregate
principal amount of all outstanding Bid Loans of all Banks shall not at any time
exceed the then Aggregate Commitment. Within the limits of this Section 3.1, the
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Company may from time to time borrow, prepay and reborrow Committed Loans on the
terms and conditions set forth in this Agreement.
Section 3.2. Procedure for Committed Loans.
(a) Committed Loan Requests. The Company shall give the Agent
irrevocable telephonic notice at the Notice Office (promptly confirmed in
writing on the same day), not later than 10:30 a.m., New York City time, (i) at
least three Business Days prior to the Funding Date in the case of LIBOR Rate
Loans or (ii) on the Funding Date in the case of Base Rate Loans, of each
requested Committed Loan, and the Agent shall promptly advise each Bank thereof
and, in the case of a LIBOR Rate Loan, request each Reference Bank to notify the
Agent of its applicable rate (as contemplated in the definition of Base LIBOR).
Each such notice to the Agent (a "Committed Loan Request") shall be
substantially in the form of Exhibit C and shall specify (i) the Funding Date
(which shall be a Business Day), (ii) the aggregate amount of the Loans
requested (in an amount permitted under clause (b) below), (iii) whether each
Loan shall be a LIBOR Rate Loan or a Base Rate Loan and (iv) if a LIBOR Rate
Loan, the Loan Period therefor (subject to the limitations set forth in the
definition of Loan Period).
(b) Amount and Increments of Committed Loans. Each Committed
Loan Request shall contemplate Committed Loans in a minimum aggregate amount of
$10,000,000 or a higher integral multiple of $1,000,000, not to exceed in the
aggregate (for all requested Committed Loans) the Available Commitment.
(c) Funding of Committed Loans.
(i) Not later than 1:30 p.m., New York City time, on the
Funding Date of a Committed Loan, each Bank shall, subject to this Section
3.2(c), provide the Agent at its Notice Office with immediately available funds
covering such Bank's Committed Loan (provided, that a Bank's obligation to
provide funds to the Agent shall be deemed satisfied by such Bank's delivery to
the Agent at its Notice Office not later than 1:30 p.m., New York City time, of
a Federal reserve wire confirmation number covering the proceeds of such Bank's
Committed Loan) and the Agent shall pay over such funds to the Company not later
than 2:00 p.m., New York City time, on such day if the Agent shall have received
the documents required under Section 10 with respect to such Loan and the other
conditions precedent to the making of such Loan shall have been satisfied not
later than 10:00 a.m., New York City time, on such day. If the Agent does not
receive such documents or such other conditions precedent have not been
satisfied prior to such time, then (A) the Agent shall not pay over such funds
to the Company, (B) the Company's Committed Loan Request related to such Loan
shall be deemed cancelled in its entirety, (C) in the case of Committed Loan
Requests relative to LIBOR Rate Loans, the Company shall be liable to each Bank
in accordance with Section 7.4(b) and (D) the Agent shall return the amount
previously provided to the Agent by each Bank on the next following Business
Day.
(ii) The Company agrees, notwithstanding its previous delivery
of any documents required under Section 10 with respect to a particular Loan,
immediately to notify the Agent of any failure by it to satisfy the conditions
precedent to the making of such Loan. The Agent shall
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be entitled to assume, after it has received each of the documents required
under Section 10 with respect to a particular Loan, that each of the conditions
precedent to the making of such Loan has been satisfied absent actual knowledge
to the contrary received by the Agent prior to the time of the receipt of such
documents. Unless the Agent shall have notified the Banks prior to 10:30 a.m.,
New York City time, on the Funding Date of any Loan that the Agent has actual
knowledge that the conditions precedent to the making of such Loan have not been
satisfied, the Banks shall be entitled to assume that such conditions precedent
have been satisfied.
(d) Repayment of Loans. If any Bank is to make a Committed
Loan hereunder on a day on which the Company is to repay (or has elected to
prepay, pursuant to Section 5.2) all or any part of any outstanding Loan held by
such Bank, the proceeds of such new Committed Loan shall be applied to make such
repayment and only an amount equal to the positive difference, if any, between
the amount being borrowed and the amount being repaid shall be requested by the
Agent to be made available by such Bank to the Agent as provided in Section
3.2(c).
Section 3.3. Maturity of Committed Loans. Except for a Base
Rate Loan, which shall mature on the Termination Date (or the date contemplated
by Section 5.3 if the Term-Out Option is in effect), a Committed Loan made by a
Bank shall mature on the last day of the Loan Period applicable to such
Committed Loan, but in no event later than the Termination Date for such Bank
(or the date contemplated by Section 5.3 if the Term-Out Option is in effect).
Section 3.4. Committed Notes. The Committed Loans of each Bank
shall be evidenced by a Committed Note payable to the order of such Bank in the
original principal amount of such Bank's Commitment. Each Bank shall record in
its records, or at its option on the schedule attached to its Committed Note,
the date and amount of each Loan made by such Bank thereunder, each repayment or
prepayment thereof, and, if applicable, the dates on which the Loan Period for
such Loan shall begin and end. The aggregate unpaid principal amount so recorded
shall be rebuttable presumptive evidence of the principal amount owing and
unpaid on such Note. The failure to so record or any error in so recording any
such amount or any payment thereof shall not, however, limit or otherwise affect
the obligations of the Company hereunder or under such Committed Note to repay
the principal amount of each Committed Loan together with all interest accruing
thereon.
SECTION 4. INTEREST AND FEES.
Section 4.1. Interest Rates. The Company hereby promises to
pay interest on the unpaid principal amount of each Loan for the period
commencing on the Funding Date for such Loan until such Loan is paid in full, as
follows:
(a) if such Loan is a Bid Loan, at a rate per annum equal to
the Absolute Rate or the LIBOR Rate, as applicable, offered by the applicable
Bank and accepted by the Company for such Bid Loan;
(b) if such Loan is a Base Rate Loan, at a rate per annum
equal to the Base Rate from time to time in effect; and
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(c) if such Loan is a Committed Loan that is a LIBOR Rate
Loan, at a rate per annum equal to the LIBOR Rate applicable to the Loan Period
for such Loan; provided, however, that after the maturity of any Loan (whether
by acceleration or otherwise), such Loan shall bear interest on the unpaid
principal amount thereof at a rate per annum (calculated on the basis of a
360-day year for the actual number of days involved) equal to the Base Rate from
time to time in effect (but not less than the interest rate in effect for such
Loan immediately prior to maturity) plus 1% per annum.
Section 4.2. Interest Payment Dates. Except for Base Rate
Loans, as to which accrued interest shall be payable on the last day of each
calendar quarter and on the Termination Date (or the date contemplated by
Section 5.3 if the Term-Out Option is in effect), accrued interest on each Loan
shall be payable in arrears on the last day of the Loan Period therefor and (i)
with respect to each LIBOR Rate Loan with a Loan Period of six months, on the
day that is three months after the first day of such Loan Period (or, if there
is no day in such third month numerically corresponding to such first day of the
Loan Period, on the last Business Day of such month) and (ii) with respect to
each Absolute Rate Loan with a Loan Period exceeding 90 days, on the day that is
90 days after the first day of such Loan Period. After the maturity of any Loan,
accrued interest on such Loan shall be payable on demand. If any interest
payment date falls on a day that is not a Business Day, such interest payment
date shall be postponed to the next succeeding Business Day and the interest
paid shall cover the period of postponement (except that if the Loan is a LIBOR
Rate Loan and the next succeeding Business Day falls in the next succeeding
calendar month, such interest payment date shall be the immediately preceding
Business Day).
Section 4.3. Setting and Notice of Committed Loan Rates. The
applicable interest rate for each Committed Loan hereunder shall be determined
by the Agent and notice thereof shall be given by the Agent promptly to the
Company and to each Bank. Each determination of the applicable interest rate by
the Agent shall be conclusive and binding upon the parties hereto in the absence
of demonstrable error.
In the case of LIBOR Rate Loans, each Reference Bank agrees to
use its best efforts to notify the Agent in a timely fashion of its applicable
rate after the Agent's request therefor under Section 2.2(a) and Section 3.2(a)
(as contemplated in the definition of Base LIBOR). If as to any Loan Period any
one or more of the Reference Banks is unable or for any reason fails to notify
the Agent of its applicable rate by 11:30 a.m., New York City time, two Business
Days before the Funding Date, then the applicable LIBOR Rate shall be determined
on the basis of the rate or rates of which the Agent is given notice by the
remaining Reference Bank or Banks by such time. If none of the Reference Banks
notifies the Agent of the applicable rate prior to 11:30 a.m., New York City
time, two Business Days before the Funding Date, then (i) the Agent shall
promptly notify the other parties thereof and (ii) at the option of the Company
the Committed Loan Request delivered by the Company pursuant to Section 3.2(a)
with respect to such Funding Date shall be cancelled or shall be deemed to have
specified a Base Rate Loan.
The Agent shall, upon written request of the Company or any
Bank, deliver to the Company or such Bank a statement showing the computations
used by the Agent in determining the interest rate applicable to any LIBOR Rate
Loan.
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Section 4.4. Facility Fee. The Company agrees to pay to the
Agent for the accounts of the Banks pro rata in accordance with their respective
Percentages an annual facility fee computed by multiplying the average daily
amount of the Aggregate Commitment (whether used or unused) by the applicable
percentage determined with respect to such facility fee in accordance with
Schedule II hereto. Such fee shall be payable quarterly in arrears on the last
Business Day of March, June, September and December of each year (beginning with
the last Business Day of December, 2002) until the Commitments have expired or
have been terminated and on the date of such expiration or termination (and, in
the case of any Terminating Bank, such Bank's Termination Date), in each case
for the period then ending for which such facility fee has not previously been
paid.
Section 4.5. Utilization Fee. The Company agrees to pay to the
Agent for the accounts of the Banks pro rata in accordance with their respective
Percentages, (i) during any period that the aggregate outstanding principal
amount of the Loans exceeds 33.33% of the Aggregate Commitment, a utilization
fee computed by multiplying the average daily amount of the Aggregate Commitment
by the applicable percentage determined with respect to such utilization fee in
accordance with Schedule II hereto and (ii) during any period that the aggregate
outstanding principal amount of the Loans exceeds 66.66% of the Aggregate
Commitment, a utilization fee in addition to the utilization fees accruing
pursuant to clause (i) above computed by multiplying the average daily amount of
the Aggregate Commitment by the applicable percentage determined with respect to
such utilization fee in accordance with Schedule II hereto; provided, that if
the then outstanding aggregate principal amount of Bid Loans exceeds an amount
equal to 33.33% of the Aggregate Commitments as then in effect, then in
calculating the aggregate outstanding principal amount of the Loans for purposes
of this Section 4.5 only, the aggregate outstanding principal amount of Loans
shall not include an amount equal to 33.33% of the Aggregate Commitments as then
in effect. Accrued utilization fees shall be due and payable on each date that
interest is payable on each such Loan.
Section 4.6. Agent's Fees. The Company agrees promptly to pay
to the Agent such fees as may be agreed from time to time by the Company and the
Agent.
Section 4.7. Computation of Interest and Fees. Interest on
LIBOR Rate Loans, and facility and utilization fees shall be computed for the
actual number of days elapsed on the basis of a 360-day year; and interest on
Base Rate Loans shall be computed for the actual number of days elapsed on the
basis of a 365/366 day year, as the case may be. The interest rate applicable to
each LIBOR Rate Loan and Base Rate Loan, and (to the extent applicable) after
the maturity of any other type of Loan, the interest rate applicable to such
Loan, shall change simultaneously with each change in the LIBOR Rate or the Base
Rate, as applicable.
SECTION 5. REDUCTION OR TERMINATION OF THE COMMITMENTS;
REPAYMENT; PREPAYMENTS.
Section 5.1. Voluntary Termination or Reduction of the
Commitments. The Company may at any time on at least 5 days' prior irrevocable
notice received by the Agent (which shall promptly on the same day or on the
next Business Day advise each Bank thereof) permanently reduce the amount of the
Commitments (such reduction to be pro rata among the
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Banks according to their respective Percentages) to an amount not less than the
aggregate principal amount of all outstanding Loans. Any such reduction shall be
in the amount of $5,000,000 or an integral multiple of $1,000,000 in excess
thereof. Concurrently with any such reduction, the Company shall prepay the
principal of any Committed Loans outstanding to the extent that the aggregate
amount of such Loans outstanding shall then exceed the Aggregate Commitment, as
so reduced. The Company may from time to time on like irrevocable notice
terminate the Commitments upon payment in full of all Loans, all interest
accrued thereon, all fees and all other obligations of the Company hereunder;
provided, however, that the Company may not at any time terminate the
Commitments if any Bid Loan is outstanding (unless the holder of each such
outstanding Bid Loan has given its prior written consent to the concurrent
repayment of such Bid Loan).
Section 5.2. Voluntary Prepayments. The Company may
voluntarily prepay Loans (other than Bid Loans, which may only be prepaid with
the prior written consent of the holder thereof) without premium or penalty,
except as may be required pursuant to subsection (e) below, in whole or in part;
provided, that (a) each prepayment shall be in an aggregate principal amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof, (b) except
for the prepayment of the aggregate amount of all Loans outstanding, no such
prepayment shall result in there being less than $10,000,000 in Loans
outstanding in the aggregate, (c) the Company shall give the Agent at its Notice
Office (which shall promptly advise each Bank) not less than three Business
Days' prior notice thereof specifying the Loans to be prepaid and the date and
amount of prepayment, (d) any prepayment of principal of any Loan shall include
accrued interest to the date of prepayment on the principal amount being prepaid
and (e) any prepayment of a LIBOR Rate Loan shall be subject to the provisions
of Section 7.4.
Section 5.3. Term-Out Option. The Company may, by notice to
the Agent not less than 10 days prior to the then-effective Termination Date,
subject to the conditions set forth below in this Section 5.3, elect to convert
the aggregate outstanding principal amount of the Committed Loans of each Bank
as of such then-effective Termination Date to a term loan of such Bank in said
amount (herein collectively called "Term Loans" and individually each called a
"Term Loan"). Each Term Loan shall bear interest, from and including such
then-effective Termination Date until the payment thereof in full, at a rate per
annum equal to (x) in the case such Term Loan is a Base Rate Loan, the Base Rate
from time to time in effect and (y) in the case such Term Loan is a LIBOR Rate
Loan, the LIBOR Rate applicable to the Loan Period for such Term Loan, and in
each case shall otherwise constitute a Committed Loan for all purposes of this
Agreement. The Company agrees to repay to the Agent for account of the Banks the
unpaid principal amount of the Term Loans on the date 364 days after such
then-effective Termination Date or, if such date is not a Business Day, the
immediately preceding Business Day (and any outstanding Committed Note shall be
deemed amended accordingly). Once repaid or prepaid (other than as contemplated
by Section 3.2(d)), Term Loans cannot be reborrowed. Anything in this Section
5.3 to the contrary notwithstanding, any such conversion shall be subject to the
conditions precedent that (i) no Unmatured Event of Default or Event of Default
shall have occurred and be continuing on such then-effective Termination Date
and (ii) the representations and warranties made by the Company in Section 8
shall be true on and as of such then-effective Termination Date with the same
force and effect as if made on and as of such date. Each notice of conversion
delivered by the Company in accordance with this Section 5.3 shall
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constitute a certification by the Company to the effect set forth in the
preceding sentence (both as of the date of such notice and, unless the Company,
after delivery of such notice, otherwise notifies the Agent prior to such
then-effective Termination Date, as of such date). Notwithstanding anything in
this Agreement to the contrary, facility fees contemplated by Section 4.4 and
utilization fees contemplated by Section 4.5 shall cease to accrue after the
effectiveness of the Term-Out Option.
SECTION 6. MAKING AND PRORATION OF PAYMENTS; SET-OFF; TAXES.
Section 6.1. Making of Payments. Except as provided in Section
3.2(d), payments (including those made pursuant to Sections 5.1) of principal
of, or interest on, the Loans and all payments of fees shall be made by the
Company to the Agent in immediately available funds at its Payment Office not
later than 12:00 Noon, New York City time, on the date due; and funds received
after that hour shall be deemed to have been received by the Agent on the next
following Business Day. The Agent shall promptly remit to each Bank or other
holder of a Note its share (if any) of each such payment. All payments under
Section 7 shall be made by the Company directly to the Persons entitled thereto.
Section 6.2. Pro Rata Treatment; Sharing.
(a) Except as required pursuant to Section 7 or Section 13.8,
each payment or prepayment of principal of any Committed Loans, each payment of
interest on the Committed Loans, and each payment of the facility fee shall be
allocated pro rata among the Banks in accordance with their respective
Percentages. Each payment of principal of any Bid Borrowing shall be allocated
pro rata among the Banks participating in such Bid Borrowing in accordance with
the respective principal amounts of their outstanding Bid Loans comprising such
Bid Borrowing. Each payment of interest on any Bid Borrowing shall be allocated
pro rata among the Banks participating in such Bid Borrowing in accordance with
the respective amounts of accrued and unpaid interest on their outstanding Bid
Loans comprising such Bid Borrowing.
(b) If any Bank or other holder of a Committed Loan shall
obtain any payment or other recovery (whether voluntary, involuntary, by
application of offset or otherwise) on account of principal of, interest on or
fees or other amounts with respect to any Committed Loan in excess of the share
of payments and other recoveries (exclusive of payments or recoveries under
Section 7 or pursuant to Section 13.8) such Bank or other holder would have
received if such payment had been distributed pursuant to the provisions of
Section 6.2(a), such Bank or other holder shall purchase from the other Banks or
holders, in a manner to be specified by the Agent, such participations in the
Committed Loans held by them as shall be necessary so that all such payments of
principal and interest with respect to the Committed Loans shall be shared by
the Banks and other holders pro rata in accordance with their respective
Percentages; provided, however, that if all or any portion of the excess payment
or other recovery is thereafter recovered from such purchasing Bank or holder,
the purchase shall be rescinded and the purchase price restored to the extent of
such recovery, but without interest.
(c) If any Bank or other holder of a Bid Loan shall obtain any
payment or other
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recovery (whether voluntary, involuntary, by application of offset or otherwise)
on account of principal of, interest on or fees or other amounts with respect to
any Bid Loan in excess of the share of payments and other recoveries (exclusive
of payments or recoveries pursuant to Section 7 or Section 13.8) such Bank or
other holder would have received if such payment had been distributed pursuant
to the provisions of Section 6.2(a), such Bank or other holder shall purchase
from the other Banks or holders participating in such Bid Borrowing, in a manner
to be specified by the Agent, such participations in the Bid Loans held by them
as shall be necessary so that all such payments of principal and interest with
respect to the Bid Loans shall be shared by the Banks and other holders
participating in such Bid Borrowing in a manner consistent with Section 6.2(a);
provided, however, that if all or any portion of the excess payment or other
recovery is thereafter recovered from such purchasing Bank or holder, the
purchase shall be rescinded and the purchase price restored to the extent of
such recovery, but without interest.
Section 6.3. Set-off. The Company agrees that the Agent, each
holder of a Note, each Assignee and each Participant has all rights of set-off
and bankers' lien provided by applicable law, and the Company further agrees
that at any time (i) any amount owing by the Company under this Agreement is due
to any such Person or (ii) any Event of Default exists, each such Person may
apply to the payment of any amount payable hereunder any and all balances,
credits, deposits, accounts or moneys of the Company then or thereafter with
such Person.
Section 6.4. Taxes, etc. (a) All payments made by the Company
to the Agent, any Bank, any Assignee or any Participant under this Agreement and
the Notes shall be made without any set-off or counterclaim, and free and clear
of and without deduction for or on account of any present or future Taxes now or
hereafter imposed (except to the extent that such withholding or deduction is
compelled by law or results from the breach, by the recipient of a payment, of
its agreement contained in Section 6.4(b) or 6.4(c) or would not be required if
the representation or warranty contained in Section 6.4(b) were true), excluding
any Taxes generally assessed on the overall net income of the Agent, any Bank,
any Assignee or any Participant, as the case may be, by the government or other
authority of the country in which the Agent, such Bank, such Assignee or such
Participant is incorporated or in which its Funding Office or the office through
which it is acting is located. If the Company is compelled by law to make any
such deductions or withholdings it will:
(i) pay to the relevant authorities the full amount required
to be so withheld or deducted,
(ii) except to the extent that such withholding or deduction
results from the breach by the recipient of a payment of its agreement
contained in Section 6.4(b) or 6.4(c) or would not be required if the
representation or warranty contained in Section 6.4(b) were true, pay
such additional amounts as may be necessary in order that the net
amount received by the Agent, each Bank, each Assignee and each
Participant after such deductions or withholdings (including any
required deduction or withholding on such additional amounts) shall
equal the amount such payee would have received had no such deductions
or withholdings been made, and
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(iii) promptly forward to the Agent (for delivery to such
payee) an official receipt or other documentation satisfactory to the
Agent evidencing such payment to such authorities.
Moreover, if any Taxes are directly asserted against the
Agent, any Bank, any Assignee or any Participant, such payee may pay such Taxes
and the Company shall promptly pay such additional amount (including, without
limitation, any penalties, interest or expenses) as may be necessary in order
that the net amount received by such payee after the payment of such Taxes
(including any Taxes on such additional amount) shall equal the amount such
payee would have received had no such Taxes been asserted (provided, that the
Agent, the Banks, and any Assignee or Participant shall use reasonable efforts,
to the extent consistent with applicable laws and regulations, to minimize to
the extent possible any such Taxes if they can do so without material cost or
legal or regulatory disadvantage). For purposes of this Section 6.4, a
distribution hereunder by the Agent or any Bank to or for the account of any
Bank, Assignee or Participant shall be deemed to be a payment by the Company.
The Company's agreement under this Section 6.4 shall survive repayment of the
Loans, cancellation of the Notes or any termination of this Agreement.
(b) In consideration of, and as a condition to, the Company's
undertakings in Section 6.4(a), each Bank other than a Bank that is organized
and existing under the laws of the United States of America or any State thereof
(a "Non-U.S. Bank") agrees to execute and deliver to the Agent at its Payment
Office for delivery to the Company, before the first scheduled payment date in
each year, (i) to the extent it acts for its own account with respect to any
portion of any sums paid or payable to such Bank under this Agreement, two
original copies of United States Internal Revenue Service Forms W-8BEN or W-8ECI
(or any successor forms), as appropriate, properly completed and duly executed
by such Non-U.S. Bank, and claiming complete exemption from withholding and
deduction of United States federal Taxes, and (ii) to the extent it does not act
or has ceased to act for its own account with respect to any portion of any sums
paid or payable to such Bank under this Agreement (for example, in the case of a
typical Participation by such Bank), (1) for the portion of any such sums paid
or payable with respect to which such Bank acts for its own account, two
original copies of the forms or statements required to be provided by such Bank
under subsection (i) of this Section 6.4(b), properly completed and duly
executed by such Non-U.S. Bank and claiming complete exemption from withholding
and deduction of United States federal Taxes, and (2) for the portion of any
such sums paid or payable with respect to which such Non-U.S. Bank does not act
or has ceased to act for its own account, two original copies of United States
Internal Revenue Service Form W-8IMY (or any successor forms), properly
completed and duly executed by such Non-U.S. Bank, together with any
information, if any, such Non-U.S. Bank chooses to transmit with such form, and
any other certificate or statement of exemption required under the Internal
Revenue Code or the regulations issued thereunder. Each Bank represents and
warrants to the Company that, at the date of this Agreement, or at the time such
Bank becomes a Bank hereunder pursuant to Section 13.4.1 or 13.8(c), its Funding
Office is entitled to receive payments of principal and interest hereunder
without deduction for or on account of any Taxes imposed by the United States of
America or any political subdivision thereof.
(c) Each Non-US Bank hereby agrees, from time to time after
the initial delivery
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by such Non-U.S. Bank of any forms or other information pursuant to Section
6.4(b), whenever a lapse in time or change in circumstances renders such forms,
certificates or other evidence so delivered obsolete or inaccurate in any
material respect, that such Non-U.S. Bank shall promptly (and in all events,
prior to the next applicable payment date), deliver to Agent at its Payment
Office for delivery to the Company two original copies of any renewal, amendment
or additional or successor forms, properly completed and duly executed by such
Non-U.S. Bank, together with any other certificate or statement of exemption
required by applicable law or regulation in order to (i) confirm or establish
such Non-U.S. Bank's complete exemption from withholding and deduction of United
States federal Taxes with respect to payments to such Bank under this Agreement
or (ii) in the case of a change in law after the date on which such Non-U.S.
Bank became a Bank hereunder pursuant to Section 13.4.1 that results in a
withholding or deduction of United States federal Taxes on payments hereunder to
such Non-U.S. Bank, establish the status of such Non-U.S. Bank as other than a
United States person for United States federal Tax purposes and claim the
benefit of a reduced rate of withholding and deduction of United States federal
Taxes with respect to any such payments under an applicable tax treaty of the
United States, or (iii) if applicable, confirm or establish that such Non-U.S.
Bank does not act for its own account with respect to any portion of any such
payments.
(d) Nothing contained in this Section 6.4 shall require any
Bank to make available its tax returns (or any other information relating to its
taxes that it deems confidential) to the Company or any other Person.
SECTION 7. INCREASED COSTS AND SPECIAL PROVISIONS FOR ABSOLUTE
RATE LOANS AND LIBOR RATE LOANS.
Section 7.1. Increased Costs. (a) If (i) Regulation D of the
Board of Governors of the Federal Reserve System or (ii) after the date hereof,
the adoption of any applicable law, rule or regulation, or any change therein,
or any change in the interpretation or administration thereof by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Bank (or any
Funding Office of such Bank) with any request or directive (whether or not
having the force of law) of any such authority, central bank or comparable
agency,
(A) shall subject any Bank (or any Funding Office of such
Bank) to any tax, duty or other charge with respect to its LIBOR Rate
Loans, its Notes or its obligation to make LIBOR Rate Loans, or shall
change the basis of taxation of payments to any Bank (or any Funding
Office of such Bank) of the principal of or interest on its LIBOR Rate
Loans or any other amounts due under this Agreement in respect of its
LIBOR Rate Loans or its obligation to make LIBOR Rate Loans (except for
changes in the rate of tax on the overall net income of such Bank or
its Funding Office imposed by any Governmental Authority of the country
in which such Bank is incorporated or in which such Bank's Funding
Office is located);
(B) shall impose, modify or deem applicable any reserve
(including, without limitation, any reserve imposed by the Board of
Governors of the Federal Reserve
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System, but excluding any reserve included in the determination of
additional interest pursuant to Section 4.1), special deposit,
assessment (including any assessment for insurance of deposits) or
similar requirement against assets of, deposits with or for the account
of, or credit extended by, any Bank (or any Funding Office of such
Bank); or
(C) shall impose on any Bank (or any Funding Office of such
Bank) any other condition affecting its LIBOR Rate Loans, its Notes or
its obligation to make or maintain LIBOR Rate Loans;
and the result of any of the foregoing is to increase the cost to (or to impose
an additional cost on) such Bank (or any Funding Office of such Bank) of making
or maintaining any LIBOR Rate Loan, or to reduce the amount of any sum received
or receivable by such Bank (or such Bank's Funding Office) under this Agreement
or under its Notes with respect thereto, then within 10 days after demand by
such Bank (which demand shall be accompanied by a statement setting forth the
basis of such demand), the Company shall pay directly to such Bank such
additional amount or amounts as will compensate such Bank for such increased
cost or such reduction (without duplication of any amounts which have been
reimbursed pursuant to Section 6.4).
(b) If, after the date hereof, any Bank shall determine that
the adoption, effectiveness or phase-in of any applicable law, rule, guideline
or regulation regarding capital adequacy, or any change therein, or any change
in the interpretation or administration thereof by any Governmental Authority,
central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Bank (or any Funding Office of such
Bank or any Person controlling such Bank) with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such
authority, central bank or comparable agency, has or would have the effect of
reducing the rate of return on the capital of such Bank or any Person
controlling such Bank as a consequence of its obligations hereunder to a level
below that which such Bank or such controlling Person could have achieved but
for such adoption, change or compliance (taking into consideration such Bank's
or such controlling Person's policies with respect to capital adequacy), then,
from time to time, within 10 days after demand by such Bank (which demand shall
be accompanied by a statement setting forth the basis of such demand), the
Company shall pay directly to such Bank such additional amount or amounts as
will compensate such Bank or such controlling Person for such reduction.
(c) Each Bank shall promptly notify the Company and the Agent
of any event of which it has knowledge, occurring after the date hereof, which
will entitle such Bank to compensation pursuant to this Section 7.1 and will
designate a different Funding Office if such designation will avoid the need
for, or reduce the amount of, such compensation and will not, in such Bank's
sole judgment, be otherwise disadvantageous to such Bank.
Section 7.2. Basis for Determining Interest Rate Inadequate or
Unfair. If with respect to the Loan Period for any LIBOR Rate Loan:
(a) the Agent is advised by two or more Reference Banks that
deposits in Dollars (in the applicable amounts) are not being offered
to such Reference Banks in the relevant market for such Loan Period, or
the Agent otherwise determines (which determination
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shall be binding and conclusive on all parties) that, by reason of
circumstances affecting the LIBOR market, adequate and reasonable means
do not exist for ascertaining the applicable LIBOR Rate; or
(b) the Required Banks advise the Agent that the LIBOR Rate as
determined by the Agent will not adequately and fairly reflect the cost
to such Required Banks of maintaining or funding LIBOR Rate Loans for
such Loan Period, or that the making or funding of LIBOR Rate Loans has
become impracticable as a result of an event occurring after the date
of this Agreement which in such Required Banks' opinion materially
affects LIBOR Rate Loans,
then (i) the Agent shall promptly notify the other parties thereof and (ii) so
long as such circumstances shall continue, no Bank shall be under any obligation
to make any LIBOR Rate Loan.
Section 7.3. Changes in Law Rendering Certain Loans Unlawful.
In the event that any change in (including the adoption of any new) applicable
laws or regulations, or in the interpretation of applicable laws or regulations
by any Governmental Authority or other regulatory body charged with the
administration thereof, should make it (or in the good faith judgment of such
Bank raise a substantial question as to whether it is) unlawful for a Bank to
make, maintain or fund any LIBOR Rate Loan, then (a) such Bank shall promptly
notify each of the other parties hereto, (b) upon the effectiveness of such
event and so long as such unlawfulness shall continue, the obligation of such
Bank to make LIBOR Rate Loans shall be suspended and any request by the Company
for LIBOR Rate Loans shall, as to such Bank, be deemed to be a request for a
Base Rate Loan, if said LIBOR Rate Loan is a Committed Loan, or an Absolute Rate
Loan, if said LIBOR Rate Loan is a Bid Loan and (c) on the last day of the
current Loan Period for such Bank's LIBOR Rate Loans (or, in any event, if such
Bank so requests on such earlier date as may be required by the relevant law,
regulation or interpretation) such Bank's Loans which are LIBOR Rate Loans shall
cease to be maintained as LIBOR Rate Loans and shall thereafter bear interest at
a floating rate per annum equal to the Base Rate, if said LIBOR Rate Loan is a
Committed Loan, or at an Absolute Rate, which Absolute Rate shall be the LIBOR
Rate in effect during such Loan Period, if said LIBOR Rate Loan is a Bid Loan.
If at any time the event giving rise to such unlawfulness shall no longer exist,
then such Bank shall promptly notify the Company and the Agent.
Section 7.4. Funding Losses. The Company hereby agrees that
upon demand by any Bank (which demand shall be accompanied by a statement
setting forth the basis for the calculations of the amount being claimed) the
Company will indemnify such Bank against any net loss or expense which such Bank
may sustain or incur (including, without limitation, any net loss or expense
incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Bank to fund or maintain any LIBOR Rate Loan or Absolute Rate
Loan), as reasonably determined by such Bank, as a result of (a) any payment or
mandatory or voluntary prepayment (including, without limitation, any payment
pursuant to Section 7.3 or any payment resulting from acceleration) of any LIBOR
Rate Loan or Absolute Rate Loan of such Bank on a date other than the last day
of the Loan Period for such Loan or (b) any failure of the Company to borrow any
Loans on the originally scheduled Funding Date specified therefor pursuant to
this
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Agreement (including, without limitation, any failure to borrow resulting from
any failure to satisfy the conditions precedent to such borrowing). For this
purpose, all notices to the Agent pursuant to this Agreement (including, without
limitation, all acceptances of Bids) shall be deemed to be irrevocable.
Section 7.5. Discretion of Banks as to Manner of Funding.
Notwithstanding any provision of this Agreement to the contrary (but subject to
Section 7.1(c)), each Bank shall be entitled to fund and maintain its funding of
all or any part of its Loans in any manner it sees fit, it being understood,
however, that for the purposes of this Agreement all determinations hereunder
shall be made as if such Bank had actually funded and maintained each LIBOR Rate
Loan or Absolute Rate Loan during the Loan Period for such Loan through the
purchase of deposits having a maturity corresponding to such Loan Period and
bearing an interest rate equal to the rate borne by such Loan for such Loan
Period.
Section 7.6. Conclusiveness of Statements; Survival of
Provisions. Determinations and statements of any Bank pursuant to this Section 7
shall be conclusive absent demonstrable error, and each Bank may use reasonable
averaging and attribution methods in determining compensation pursuant to
Section 7.1 or 7.4. The provisions of this Section 7 shall survive termination
of this Agreement and payment of the Notes.
SECTION 8. REPRESENTATIONS AND WARRANTIES.
To induce the Banks to enter into this Agreement and to make
Loans hereunder, the Company hereby makes the following representations and
warranties to the Agent and the Banks, which representations and warranties
shall survive the execution and delivery of this Agreement and the Notes and the
disbursement of the initial Loans hereunder:
Section 8.1. Organization, etc. The Company is a corporation
duly organized, validly existing and in good standing under the laws of the
State of California; each corporate Subsidiary is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation; each other Subsidiary (if any) is an entity duly organized and
validly existing under the laws of the jurisdiction of its organization; and
each of the Company and each Subsidiary has the power to own its property and to
carry on its business as now being conducted and is duly qualified and in good
standing as a foreign corporation or other entity authorized to do business in
each jurisdiction where, because of the nature of its activities or properties,
such qualification is required, except where the failure to be so qualified or
in good standing could not reasonably be expected to have a Material Adverse
Effect.
Section 8.2. Authorization; Consents; No Conflict. The
execution and delivery by the Company of this Agreement and the Notes, the
borrowings hereunder and the performance by the Company of its obligations under
this Agreement and the Notes (a) are within the corporate powers of the Company,
(b) have been duly authorized by all necessary corporate action on the part of
the Company, (c) have received all necessary approvals, authorizations,
consents, registrations, notices, exemptions and licenses (if any shall be
required) from Governmental Authorities and other Persons, except for any such
approvals, authorizations, consents, registrations, notices, exemptions or
licenses non-receipt of which could not reasonably be expected to have a
Material Adverse Effect, (d) do not and will not contravene or conflict
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with any provision of (i) law, (ii) any judgment, decree or order to which the
Company or any Subsidiary is a party or by which the Company or any Subsidiary
is bound, (iii) the charter, by-laws or other organizational documents of the
Company or any Subsidiary or (iv) any provision of any agreement or instrument
binding on the Company or any Subsidiary, or any agreement or instrument of
which the Company is aware affecting the properties of the Company or any
Subsidiary, except with respect to (i), (ii) and (iv) above, for any such
contravention or conflict which could not reasonably be expected to have a
Material Adverse Effect and (e) do not and will not result in or require the
creation or imposition of any Lien on any of the Company's or its Subsidiaries'
properties.
Section 8.3. Validity and Binding Nature. This Agreement is,
and the Notes when duly executed and delivered will be, legal, valid and binding
obligations of the Company, enforceable against the Company in accordance with
their respective terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors' rights and to general equity principles.
Section 8.4. Financial Statements. The Company's audited
consolidated financial statements as at December 31, 2001, and unaudited
consolidated financial statements as at June 30, 2002, a copy of each of which
has been furnished to each Bank, have been prepared in conformity with generally
accepted accounting principles in the United States of America applied on a
basis consistent with that of the preceding fiscal year and fairly present the
financial condition of the Company and its Subsidiaries as at such dates and the
results of their operations for the year then ended.
Section 8.5. Litigation and Contingent Liabilities. All
Litigation Actions, taken as a whole, could not reasonably be expected to have a
Material Adverse Effect. Other than any liability incident to such Litigation
Actions or provided for or disclosed in the financial statements referred to in
Section 8.4, neither the Company nor any Subsidiary has any contingent
liabilities which are material to the business, credit, operations, financial
condition or prospects of the Company and its Subsidiaries taken as a whole.
Section 8.6. Employee Benefit Plans. Each employee benefit
plan (as defined in Section 3(3) of ERISA) maintained or sponsored by the
Company or any Subsidiary complies in all material respects with all applicable
requirements of law and regulations. During the twelve-consecutive-month period
prior to the execution and delivery of this Agreement, (i) no steps have been
taken to terminate any Plan and no contribution failure has occurred with
respect to any Plan sufficient to give rise to a lien under Section 302(f) of
ERISA, (ii) no Reportable Event has occurred with respect to any Plan and (iii)
neither the Company nor any ERISA Affiliate has either withdrawn or instituted
steps to withdraw from any Multiemployer Plan, except in any such case for
actions which individually or in the aggregate could not reasonably be expected
to have a Material Adverse Effect. No condition exists or event or transaction
has occurred in connection with any Plan which could reasonably be expected to
result in the incurrence by the Company or any Subsidiary of any material
liability, fine or penalty (imposed by Section 4975 of the Code or Section
502(i) of ERISA or otherwise). Neither the Company nor any ERISA Affiliate is a
member of, or contributes to, any Multiemployer Plan as to which the potential
withdrawal liability based upon the most recent actuarial report could
reasonably be expected to
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have a Material Adverse Effect. Neither the Company nor any Subsidiary has any
material contingent liability with respect to any post retirement benefit under
an employee welfare benefit plan (as defined in section 3(i) of ERISA), other
than liability for continuation coverage described in Part 6 of Title I of
ERISA.
Section 8.7. Investment Company Act. The Company is not an
"investment company" or a company "controlled" by an "investment company",
within the meaning of the Investment Company Act of 1940, as amended.
Section 8.8. Public Utility Holding Company Act. Neither the
Company nor any Subsidiary is a "holding company", or a "subsidiary company" of
a "holding company", or an "affiliate" of a "holding company" or of a
"subsidiary company" of a "holding company", within the meaning of the Public
Utility Holding Company Act of 1935, as amended.
Section 8.9. Regulation U. Neither the Company nor any
Subsidiary is engaged principally, or as one of its important activities, in the
business of extending credit for the purpose of purchasing or carrying margin
stock (within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System).
Section 8.10. Information. (a) All information with respect to
the Company contained in the September, 2002 memorandum furnished by the Agent
to the Banks and all information heretofore furnished by the Company to the
Agent or any Bank is, to the best of the Company's knowledge after due inquiry,
true and accurate in every material respect as of the date thereof, and none of
such information contains any material misstatement of fact or omits to state
any material fact necessary to make such information not misleading.
(b) All information furnished by the Company to the Agent or
any Bank on and after the date hereof shall be, to the best of the Company's
knowledge after due inquiry, true and accurate in every material respect as of
the date of such information, and none of such information shall contain any
material misstatement of fact or shall omit to state any material fact necessary
to make such information not misleading.
Section 8.11. Compliance with Applicable Laws, etc. The
Company and its Subsidiaries are in material compliance with the requirements of
all applicable laws, rules, regulations and orders of all Governmental
Authorities (including, without limitation, ERISA and all applicable
environmental laws). Neither the Company nor any Subsidiary is in default under
any agreement or instrument to which the Company or such Subsidiary is a party
or by which it or any of its properties or assets is bound, which default could
reasonably be expected to have a Material Adverse Effect on the business,
credit, operations, financial condition or prospects of the Company and its
Subsidiaries taken as a whole. No Event of Default or Unmatured Event of Default
has occurred and is continuing.
Section 8.12. Insurance. Each of the Company and each
Subsidiary maintains, or, in the case of any property owned by the Company or
any Subsidiary and leased to lessees, has caused such lessees to maintain,
insurance with financially sound and reputable insurers to such extent and
against such hazards and liabilities as is commonly maintained, or caused to be
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maintained, as the case may be, by companies similarly situated.
Section 8.13. Taxes. Each of the Company and each Subsidiary
has filed all tax returns which are required to have been filed and has paid, or
made adequate provisions for the payment of, all of its Taxes which are due and
payable, except such Taxes, if any, as are being contested in good faith and by
appropriate proceedings and as to which such reserves or other appropriate
provisions as may be required by generally accepted accounting principles have
been established and except where failure to pay such Taxes, individually or in
the aggregate, cannot reasonably be expected to have a Material Adverse Effect.
Section 8.14. Use of Proceeds. The proceeds of the Loans will
be used by the Company for general corporate purposes.
Section 8.15. Pari Passu. All obligations and liabilities of
the Company hereunder shall rank at least equally and ratably (pari passu) in
priority with all other unsubordinated, unsecured obligations of the Company to
any other creditor.
Section 8.16. Ownership and Liens. Each of the Company and
each Subsidiary has title to, or valid leasehold interests in, all of its
properties and assets, real and personal, including the properties and assets,
and leasehold interests reflected in the financial statements referred to in
Section 8.4 (other than any properties or assets disposed of in the ordinary
course of business) other than such imperfections in title or leasehold
interests which could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect, and none of the properties and assets owned by the
Company or any of its Subsidiaries and none of its leasehold interests is
subject to any Lien, except as disclosed in such financial statements or as may
be permitted under this Agreement.
SECTION 9. COVENANTS.
Until the expiration or termination of the Commitments, and
thereafter until all obligations of the Company hereunder and under the Notes
are paid in full, the Company agrees that, unless at any time the Required Banks
shall otherwise expressly consent in writing, it will:
Section 9.1. Reports, Certificates and Other Information.
Furnish to the Agent with sufficient copies for each Bank which the Agent shall
promptly furnish to each Bank:
9.1.1. Audited Financial Statements. As soon as available, and
in any event within 95 days after each fiscal year of the Company, a
copy of the audited financial statements and annual audit report of the
Company and its Subsidiaries for such fiscal year prepared on a
consolidated basis and in conformity with generally accepted accounting
principles in the United States of America and certified by Ernst &
Young or by another independent certified public accountant of
recognized national standing selected by the Company and satisfactory
to the Required Banks.
9.1.2. Interim Reports. As soon as available, and in any event
within 50 days after each quarter (except the last quarter) of each
fiscal year of the Company, a copy of
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the unaudited financial statements of the Company and its Subsidiaries
for such quarter prepared in a manner consistent with the audited
financial statements referred to in Section 9.1.1, signed by the
Company's chief financial officer and consisting of at least a balance
sheet as at the close of such quarter and statements of earnings and
cash flows for such quarter and for the period from the beginning of
such fiscal year to the close of such quarter.
9.1.3. Certificates. Contemporaneously with the furnishing of
a copy of each annual audit report and of each set of quarterly
statements provided for in this Section 9.1, a certificate of the
Company dated the date of delivery of such annual report or such
quarterly statements and signed by the Company's chief financial
officer, to the effect that no Event of Default or Unmatured Event of
Default has occurred and is continuing, or, if there is any such event,
describing it and the steps, if any, being taken to cure it and
containing a computation of, and showing compliance with, each of the
financial ratios and restrictions contained in this Section 9.
9.1.4. Certain Notices. Forthwith upon learning of the
occurrence of any of the following, written notice thereof, describing
the same and the steps being taken by the Company or the Subsidiary
affected with respect thereto:
(i) the occurrence of an Event of Default or an
Unmatured Event of Default;
(ii) the institution of any Litigation Action;
provided, that the Company need not give notice of any new
Litigation Action unless such Litigation Action, together with
all other pending Litigation Actions, could reasonably be
expected to have a Material Adverse Effect;
(iii) the entry of any judgment or decree against the
Company or any Subsidiary if the aggregate amount of all
judgments and decrees then outstanding against the Company and
all Subsidiaries exceeds $50,000,000 after deducting (i) the
amount with respect to which the Company or any Subsidiary is
insured and with respect to which the insurer has not denied
coverage in writing and (ii) the amount for which the Company
or any Subsidiary is otherwise indemnified if the terms of
such indemnification are satisfactory to the Agent and the
Required Banks;
(iv) the occurrence of a Reportable Event with respect
to any Plan; the institution of any steps by the Company, any
ERISA Affiliate, the PBGC or any other Person to terminate any
Plan; the institution of any steps by the Company or any ERISA
Affiliate to withdraw from any Plan; the incurrence of any
material increase in the contingent liability of the Company
or any Subsidiary with respect to any post-retirement welfare
benefits; or the failure of the Company or any other Person to
make a required contribution to a Plan if such failure is
sufficient to give rise to a lien under Section 302(f) of
ERISA; provided, however, that no notice shall be required of
any of the foregoing unless the circumstance could
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reasonably be expected to have a Material Adverse Effect; or
(v) the occurrence of a material adverse change in the
business, credit, operations, financial condition or prospects
of the Company and its Subsidiaries taken as a whole.
9.1.5. SEC Filings. Promptly after the filing or making
thereof, copies of all 8-K's (other than 8-K's relating solely to the
issuance by the Company of securities pursuant to an effective
registration statement), 10-Q's, 10-K's, and other material reports or
registration statements filed by the Company or any Subsidiary with or
to any securities exchange or the Securities and Exchange Commission.
9.1.6. Other Information. From time to time such other
information concerning the Company and its Subsidiaries as any Bank or
the Agent may reasonably request.
Section 9.2. Existence. Maintain and preserve, and, subject to
the proviso in Section 9.9, cause each Subsidiary to maintain and preserve, its
respective existence as a corporation or other form of business organization, as
the case may be, and all rights, privileges, licenses, patents, patent rights,
copyrights, trademarks, trade names, franchises and other authority to the
extent material and necessary for the conduct of its respective business in the
ordinary course as conducted from time to time, except as may be determined by
the Board of Directors of the Company in good faith to wind up and dissolve a
Subsidiary that is not necessary or material to the business of the Company in
its ordinary course as conducted from time to time.
Section 9.3. Nature of Business. Engage, and cause each
Subsidiary to engage, in substantially the same fields of business as it is
engaged in on the date hereof.
Section 9.4. Books, Records and Access. (a) Maintain, and
cause each Subsidiary to maintain, complete and accurate books and records in
which full and correct entries in conformity with generally accepted accounting
principles in the United States of America shall be made of all dealings and
transactions in relation to its respective business and activities. (b) Permit,
and cause each Subsidiary to permit, access by the Agent and each Bank to the
books and records of the Company and such Subsidiary during normal business
hours, and permit, and cause each Subsidiary to permit, the Agent and each Bank
to make copies of such books and records.
Section 9.5. Insurance. Maintain, and cause each Subsidiary to
maintain, such insurance as is described in Section 8.12.
Section 9.6. Repair. Maintain, preserve and keep, and cause
each Subsidiary to maintain, preserve and keep, its material properties in good
repair, working order and condition, and from time to time make, and cause each
Subsidiary to make, all necessary and proper repairs, renewals, replacements,
additions, betterments and improvements thereto so that at all times the
efficiency thereof shall be fully preserved and maintained. In the case of
properties leased by the Company or any Subsidiary to lessees, the Company may
satisfy its obligations
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related to such properties under the previous sentence by causing, or by causing
each Subsidiary to cause, such lessees to perform such obligations.
Section 9.7. Taxes. Pay, and cause each Subsidiary to pay,
when due, all of its Taxes, unless and only to the extent that the Company or
such Subsidiary, as the case may be, is contesting any such Taxes in good faith
and by appropriate proceedings and the Company or such Subsidiary has set aside
on its books such reserves or other appropriate provisions therefor as may be
required by generally accepted accounting principles in the United States of
America, except where failure to pay such Taxes, individually or in the
aggregate, cannot reasonably be expected to have a Material Adverse Effect.
Section 9.8. Compliance. Comply, and cause each Subsidiary to
comply, in all material respects with all statutes (including without limitation
ERISA) and governmental rules and regulations applicable to it; and use
reasonable efforts to cause, and cause each Subsidiary to use reasonable efforts
to cause, each lessee of property owned by the Company or any Subsidiary to
comply in all material respects with all statutes, governmental rules and
regulations applicable to such property or applicable to such lessee in
connection with its leasing.
Section 9.9. Sale of Assets. Not, and not permit any
Subsidiary to, transfer, convey, lease or otherwise dispose of all or
substantially all of the assets of the Company and its Subsidiaries taken as a
whole; provided, however, that any Wholly-owned Subsidiary may sell, transfer,
convey, lease or assign all or a substantial part of its assets to the Company
or another Wholly-owned Subsidiary if immediately thereafter and after giving
effect thereto no Event of Default or Unmatured Event of Default shall have
occurred and be continuing.
Section 9.10. Consolidated Indebtedness to Consolidated
Tangible Net Worth Ratio. Not permit the ratio of Consolidated Indebtedness to
Consolidated Tangible Net Worth to exceed 600% on and as of the last day of any
fiscal year or 650% at any other time.
Section 9.11. Fixed Charge Coverage Ratio. Not permit the
Fixed Charge Coverage Ratio on the last day of any quarter of any fiscal year of
the Company to be less than 110%.
Section 9.12. Consolidated Tangible Net Worth. Not permit the
Company's Consolidated Tangible Net Worth to be less than $2,750,000,000 minus,
to the extent included in the calculation of Consolidated Tangible Net Worth,
other comprehensive income of the Company and its Subsidiaries (or, in the case
of a comprehensive income deficit, plus the amount of such deficit) plus 50% of
(a) the cumulative net income (but without deduction for cumulative net losses)
of the Company and its Subsidiaries since December 31, 2000 determined on a
consolidated basis in accordance with United States of America generally
accepted accounting principles, (b) the cumulative equity capital contributions
from AIG since December 31, 2000 and (c) the net proceeds from the sale of
preferred stock, in each case for the period from December 31, 2000 to and
including the date of any determination hereunder.
Section 9.13. Restricted Payments. Not declare or pay any
dividends whatsoever or make any distribution on any capital stock of the
Company (except in shares of, or warrants or rights to subscribe for or purchase
shares of, capital stock of the Company), and not, and not
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permit any Subsidiary to, make any payment to acquire or retire shares of
capital stock of the Company, at any time when (i) an Event of Default as
described in Section 11.1 has occurred and is continuing and there are Loans
outstanding hereunder or (ii) an Event of Default as described in Section 11.1.1
has occurred and is continuing and there are no Loans outstanding hereunder;
provided, however, that notwithstanding the foregoing, this Section 9.13 shall
not prohibit (x) the payment of dividends on any of the Company's market auction
preferred stock that was sold to the public pursuant to an effective
registration statement under the Securities Act of 1933 or (y) the payment of
dividends within 30 days of the declaration thereof if such declaration was not
prohibited by this Section 9.13.
Section 9.14. Liens. Not, and not permit any Subsidiary to,
create or permit to exist any Lien upon or with respect to any of its properties
or assets of any kind, now owned or hereafter acquired, or on any income or
profits therefrom, except for
(a) Liens existing on the date hereof that are reflected in
the financial statements of the Company dated prior to the date hereof;
(b) Liens upon or in any property (other than property
acquired for lease to a Person other than the Company or a Subsidiary)
acquired or held by the Company or a Subsidiary in the ordinary course
of business to secure the purchase price of such property or to secure
Indebtedness permitted under Section 9.15 incurred or guaranteed by the
Company or any Subsidiary prior to, at the time of, or within 60 days
after the later of the acquisition, completion of construction or
commencement of full operation of such property, which Indebtedness was
incurred or guaranteed solely for the purpose of financing the
acquisition of such property or construction or improvements thereon;
provided, however, that in the case of any such acquisition,
construction or improvement, the Lien shall not apply to any property
theretofore owned by the Company or a Subsidiary, other than, in the
case of any such construction or improvement, any theretofore
unimproved real property on which the property so constructed, or the
improvement, is located;
(c) Liens securing the Indebtedness of a Subsidiary owing to
the Company or to a Wholly-owned Subsidiary;
(d) Liens on property of a corporation existing at the time
such corporation is merged into or consolidated with the Company or a
Subsidiary or at the time of a purchase, lease or other acquisition of
the properties of a corporation or firm as an entirety or substantially
as an entirety by the Company or a Subsidiary; provided, that any such
Lien shall not extend to or cover any assets or properties of the
Company or such Subsidiary owned by the Company or such Subsidiary
prior to such merger, consolidation, purchase, lease or acquisition,
unless otherwise permitted under this Section 9.14;
(e) leases or subleases granted to others in the ordinary and
usual course of the Company's business;
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(f) easements, rights of way, restrictions and other similar
charges or encumbrances not interfering with the ordinary conduct of
the business of the Company or any Subsidiary;
(g) banker's Liens arising, other than by contract, in the
ordinary and usual course of the Company's business;
(h) Liens incurred or deposits made in the ordinary course of
business in connection with surety and appeal bonds, leases, government
contracts, performance and return-of-money bonds and other similar
obligations (exclusive of obligations for the payment of borrowed
money); provided, however, that the obligation so secured is not
overdue or is being contested in good faith and by appropriate
proceedings diligently pursued;
(i) any replacement or successive replacement in whole or in
part of any Lien referred to in the foregoing clauses (a) to (h),
inclusive; provided, however, that the principal amount of any
Indebtedness secured by the Lien shall not be increased and the
principal repayment schedule and maturity of such Indebtedness shall
not be extended and (i) such replacement shall be limited to all or a
part of the property which secured the Lien so replaced (plus
improvements and construction on such property) or (ii) if the property
which secured the Lien so replaced has been destroyed, condemned or
damaged and pursuant to the terms of the Lien other property has been
substituted therefor, then such replacement shall be limited to all or
part of such substituted property;
(j) Liens created by or resulting from any litigation or other
proceeding which is being contested in good faith by appropriate
proceedings, including Liens arising out of judgments or awards against
the Company or any Subsidiary with respect to which the Company or such
Subsidiary is in good faith prosecuting an appeal or proceedings for
review; or Liens incurred by the Company or any Subsidiary for the
purpose of obtaining a stay or discharge in the course of any
litigation or other proceeding to which the Company or such Subsidiary
is a party;
(k) carrier's, warehouseman's, mechanic's, landlord's and
materialmen's Liens, Liens for Taxes, assessments and other
governmental charges and other similar Liens, in each case arising in
the ordinary course of business, securing obligations that are not
incurred in connection with the obtaining of any advance or credit and
which are either not overdue or are being contested in good faith and
by appropriate proceedings diligently pursued;
(1) Liens securing Indebtedness of each of the Company's
Wholly-owned Subsidiaries to be incorporated outside the United States
of America for the purpose of providing subsidized financing of the
acquisition of Airbus Industrie aircraft, the repayment obligations of
which will be supported by guaranties issued by certain European
government export credit agencies (the European Credit Agency Export
Finance Program or "ECA Program") and a Company Guaranty and a pledge
of the assets of (including any rights to or interests in any reserve
or security deposit held by) each such Wholly- owned Subsidiary;
provided, that such Liens shall encumber only the assets of (including
any rights to or interests in any reserve or security deposit held by)
each
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such Wholly-owned Subsidiary; and provided, further, that the aggregate
amount of Indebtedness of all such Wholly-owned Subsidiaries secured by
Liens does not at the time exceed $3 billion minus the amount of
outstanding Liens permitted under Section 9.14(m); and
(m) other Liens securing Indebtedness of the Company or any
Subsidiary in an aggregate amount which, together with all other
outstanding Indebtedness of the Company and the Subsidiaries secured by
Liens not listed in clauses (a) through (l) of this Section 9.14, does
not at the time exceed 12.5% of the Consolidated Tangible Net Worth of
the Company as shown on its audited consolidated financial statements
as of the end of the fiscal year preceding the date of determination
minus the amount of outstanding Liens permitted under Section 9.14(l).
Section 9.15. Leases. Not, and not permit any Subsidiary to,
become obligated, as lessee, under any lease of real or personal property if at
the time of entering into such lease and after giving effect thereto the
aggregate Operating Lease Rentals would exceed 20% of Consolidated Indebtedness.
Section 9.16. Use of Proceeds. Not permit any proceeds of the
Loans to be used, either directly or indirectly,
(a) for the payment of any dividend or for the repurchase of
any of the Company's equity securities;
(b) for the purpose, whether immediate, incidental or
ultimate, of buying or carrying any margin stock within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System,
as amended from time to time;
(c) for the purpose, whether immediate, incidental or
ultimate, of acquiring directly or indirectly any of the outstanding
shares of voting stock of any corporation which (i) has announced that
it will oppose such acquisition or (ii) has commenced any litigation
which alleges that any such acquisition violates, or will violate,
applicable law; or
(d) for any other purpose except for general corporate
purposes in the ordinary course of business.
SECTION 10. CONDITIONS TO LENDING.
Section 10.1. Conditions Precedent to All Loans. Each Bank's
obligation to make each Loan is subject to the following conditions precedent:
10.1.1. No Default. (a) No Event of Default or Unmatured Event
of Default has occurred and is continuing or will result from the
making of such Loan, (b) the representations and warranties contained
in Section 8 are true and correct in all material
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respects as of the date of such requested Loan, with the same effect as
though made on the date of such Loan (it being understood that each
request for a Loan shall automatically constitute a representation and
warranty by the Company that, as at the requested date of such Loan,
(x) all conditions under this Section 10.1.1 shall be satisfied and (y)
after the making of such Loan the aggregate principal amount of all
outstanding Loans will not exceed the Aggregate Commitment).
10.1.2. Documents. The Agent shall have received (a) a
certificate signed by an Authorized Officer of the Company as to
compliance with Section 10.1.1, which requirement shall be deemed
satisfied by the submission of a properly completed Notice of
Competitive Bid Borrowing or Committed Loan Request and (b) such other
documents as the Agent may reasonably request in support of such Loan.
10.1.3. Litigation. No Litigation Action not disclosed in
writing by the Company to the Agent and the Banks prior to the date of
the last previous Loan hereunder (or, in the case of the initial Loan,
prior to the date of execution and delivery of this Agreement) ("New
Litigation") has been instituted and no development not so disclosed
has occurred in any other Litigation Action ("Existing Litigation"),
unless the resolution of all New Litigation and Existing Litigation
against the Company and its Subsidiaries could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect.
Section 10.2. Conditions to the Availability of the
Commitments. The obligations of each Bank hereunder are subject to the
satisfaction of each of the following conditions precedent, and the Banks'
Commitments shall not become available until the date on which each of the
following conditions precedent shall have been satisfied or waived in writing by
the Required Banks:
10.2.1. Revolving Credit Agreement. The Agent shall have
received this Agreement duly executed and delivered by each of the
Banks and the Company and each of the Banks shall have received a fully
executed Committed Note and a fully executed Bid Note.
10.2.2. Evidence of Corporate Action. The Agent shall have
received certified copies of all corporate actions taken by the Company
to authorize this Agreement and the Notes.
10.2.3. Incumbency and Signatures. The Agent shall have
received a certificate of the Secretary or an Assistant Secretary of
the Company certifying the names of the officer or officers of the
Company authorized to sign this Agreement, the Notes and the other
documents provided for in this Agreement to be executed by the Company,
together with a sample of the true signature of each such officer (it
being understood that the Agent and each Bank may conclusively rely on
such certificate until formally advised by a like certificate of any
changes therein).
10.2.4. Good Standing Certificates. The Agent shall have
received such good standing certificates of state officials with
respect to the incorporation of the Company, or
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other matters, as the Agent or the Banks may reasonably request.
10.2.5. Opinions of Company Counsel. The Agent shall have
received favorable written opinions of O'Melveny & Xxxxx LLP, counsel
for the Company, in substantially the form of Exhibit G, and the
General Counsel of the Company, in substantially the form of Exhibit H.
10.2.6. Opinion of Agent's Counsel. The Agent shall have
received a favorable written opinion of Milbank, Tweed, Xxxxxx & XxXxxx
LLP, special New York counsel to the Agent, with respect to documents
received by the Agent and the Banks and such legal matters as the Agent
reasonably may require.
10.2.7. Other Documents. The Agent shall have received such
other certificates and documents as the Agent or the Banks reasonably
may require.
10.2.8. Fees. The Agent shall have received for the account of
the Agent the Agent's fees payable to the Funding Date pursuant to
Section 4.6 hereof.
10.2.9. Material Adverse Change. The Agent shall have received
a certificate of the Company's chief financial officer confirming that
since the date of the audited financial statements identified in
Section 8.4 hereof, there shall not have occurred any material adverse
change in the business, credit, operations, financial condition or
prospects of the Company and its Subsidiaries taken as a whole.
10.2.10. Termination of Revolving Credit Facility. The Company
shall have paid all amounts owing and otherwise satisfied and
discharged all of its obligations arising under the $1,500,000,000
364-Day Second Amended and Restated Revolving Credit Agreement, dated
as of January 17, 2002, as amended, among the Company, the Agent and
the banks named therein, and such agreement shall have been terminated
and be of no further force and effect, evidence of which shall have
been made available to the Agent.
SECTION 11. EVENTS OF DEFAULT AND THEIR EFFECT.
Section 11.1. Events of Default. Each of the following shall
constitute an Event of Default under this Agreement:
11.1.1. Non-Payment of Notes, etc. Default in the payment when
due of any principal of any Loan; or default, and continuance thereof
for three Business Days, in the payment when due of any interest on any
Loan, any fees or any other amounts payable by the Company hereunder.
11.1.2. Non-Payment of Other Indebtedness for Borrowed Money.
Default in the payment when due (subject to any applicable grace
period), whether by acceleration or otherwise, of any principal of,
interest on or fees incurred in connection with any other Indebtedness
of, or Guaranteed by, the Company or any Significant Subsidiary (except
(i) any such Indebtedness of any Subsidiary to the Company or to any
other Subsidiary and
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(ii) any Indebtedness hereunder) and, if a default in the payment of
interest or fees, continuance of such default for five days, in the
case of interest, or 30 days, in the case of fees, or default in the
performance or observance of any obligation or condition with respect
to any such other Indebtedness if the effect of such default (subject
to any applicable grace period) is to accelerate the maturity of any
such Indebtedness or to permit the holder or holders thereof, or any
trustee or agent for such holders, to cause such Indebtedness to become
due and payable prior to its expressed maturity; provided, however,
that the aggregate principal amount of all Indebtedness as to which
there has occurred any default as described above shall equal or exceed
$50,000,000.
11.1.3. Bankruptcy, Insolvency, etc. The Company or any
Significant Subsidiary becomes insolvent or generally fails to pay, or
admits in writing its inability or refusal to pay, debts as they become
due; or the Company or any Significant Subsidiary applies for, consents
to, or acquiesces in the appointment of a trustee, receiver or other
custodian for the Company or such Significant Subsidiary or any
property thereof, or makes a general assignment for the benefit of
creditors; or, in the absence of such application, consent or
acquiescence, a trustee, receiver or other custodian is appointed for
the Company or any Significant Subsidiary or for a substantial part of
the property of any thereof and is not discharged within 60 days; or
any warrant of attachment or similar legal process is issued against
any substantial part of the property of the Company or any of its
Significant Subsidiaries which is not released within 60 days of
service; or any bankruptcy, reorganization, debt arrangement, or other
case or proceeding under any bankruptcy or insolvency law, or any
dissolution or liquidation proceeding (except the voluntary
dissolution, not under any bankruptcy or insolvency law, of a
Significant Subsidiary), is commenced in respect of the Company or any
Significant Subsidiary, and, if such case or proceeding is not
commenced by the Company or such Significant Subsidiary it is consented
to or acquiesced in by the Company or such Significant Subsidiary or
remains for 60 days undismissed; or the Company or any Significant
Subsidiary takes any corporate action to authorize, or in furtherance
of, any of the foregoing.
11.1.4. Non-Compliance with this Agreement. Failure by the
Company to comply with or to perform any of the Company's covenants
herein or any other provision of this Agreement (and not constituting
an Event of Default under any of the other provisions of this Section
11.1) and continuance of such failure for 60 days (or, if the Company
failed to give notice of such noncompliance or nonperformance pursuant
to Section 9.1.4 within one Business Day after obtaining actual
knowledge thereof, 60 days less the number of days elapsed between the
date the Company obtained such actual knowledge and the date the
Company gives the notice pursuant to Section 9.1.4, but in no event
less than one Business Day) after notice thereof to the Company from
the Agent, any Bank, or the holder of any Note.
11.1.5. Representations and Warranties. Any representation or
warranty made by the Company herein is untrue or misleading in any
material respect when made or deemed made; or any schedule, statement,
report, notice, or other writing furnished by the Company to the Agent
or any Bank is false or misleading in any material respect on the date
as of which the facts therein set forth are stated or certified; or any
certification
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made or deemed made by the Company to the Agent or any Bank is untrue
or misleading in any material respect on or as of the date made or
deemed made.
11.1.6. Employee Benefit Plans. The occurrence of any of the
following events, provided that such event would reasonably be expected
to require payment by the Company or a Subsidiary of an amount in
excess of $10,000,000: (i) the institution by the Company or any ERISA
Affiliate of steps to terminate any Plan, (ii) the institution by the
PBGC of steps to terminate any Plan; or (iii) a contribution failure
occurs with respect to a Plan sufficient to give rise to a lien under
Section 302(f) of ERISA securing an amount in excess of $10,000,000.
11.1.7. Litigation. There shall be entered against the Company
or any Subsidiary one or more judgments or decrees in excess of
$50,000,000 in the aggregate at any one time outstanding for the
Company and all Subsidiaries and all such judgments or decrees shall
not have been vacated, discharged, stayed or bonded pending appeal
within 60 days from the entry thereof, excluding those judgments or
decrees for and to the extent to which the Company or any Subsidiary is
insured and with respect to which the insurer has not denied coverage
in writing or for and to the extent to which the Company or any
Subsidiary is otherwise indemnified if the terms of such
indemnification are satisfactory to the Required Banks.
11.1.8. Change of Ownership. AIG shall cease to own
beneficially at least 51% of all of the outstanding shares of the
common stock of the Company.
Section 11.2. Effect of Event of Default. If any Event of
Default described in Section 11.1.3 shall occur, the Commitments (if they have
not theretofore terminated) shall immediately terminate and all Loans and all
interest and other amounts due hereunder shall become immediately due and
payable, all without presentment, demand or notice of any kind; and, in the case
of any other Event of Default, the Agent may, and upon written request of the
Required Banks shall, declare the Commitments (if they have not theretofore
terminated) to be terminated and all Loans and all interest and other amounts
due hereunder to be due and payable, whereupon the Commitments (if they have not
theretofore terminated) shall immediately terminate and all Loans and all
interest and other amounts due hereunder shall become immediately due and
payable, all without presentment, demand or notice of any kind. The Agent shall
promptly advise the Company and each Bank of any such declaration, but failure
to do so shall not impair the effect of such declaration.
SECTION 12. THE AGENT.
Section 12.1. Authorization. Each Bank and the holder of each
Note authorizes the Agent to act on behalf of such Bank or holder to the extent
provided herein and in any other document or instrument delivered hereunder or
in connection herewith, and to take such other action as may be reasonably
incidental thereto. Subject to the provisions of Section 12.3, the Agent will
take such action permitted by any agreement delivered in connection with this
Agreement as may be requested in writing by the Required Banks or if required
under Section 13.1, all of the Banks. The Agent shall promptly remit in
immediately available funds to each Bank or other holder its share of all
payments received by the Agent for the account of such
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Bank or holder, and shall promptly transmit to each Bank (or share with each
Bank the contents of) each notice it receives from the Company pursuant to this
Agreement.
Section 12.2. Indemnification. The Banks agree to indemnify
the Agent in its capacity as such (to the extent not reimbursed by the Company),
ratably according to their respective Percentages, from and against any and all
actions, causes of action, suits, losses, liabilities, damages and expenses
which may at any time (including, without limitation, at any time following the
payment of the Notes) be imposed on, incurred by or asserted against the Agent
in any way relating to or arising out of this Agreement, or any documents
contemplated by or referred to herein or the transactions contemplated hereby or
any action taken or omitted by the Agent under or in connection with any of the
foregoing; provided, that no Bank shall be liable for the payment to the Agent
of any portion of such actions, causes of action, suits, losses, liabilities,
damages and expenses resulting from the Agent's or its employees' or agents'
gross negligence or willful misconduct. Without limiting the foregoing, subject
to Section 13.5 each Bank agrees to reimburse the Agent promptly upon demand for
its ratable share of any out-of-pocket expenses (including reasonable counsel
fees) incurred by the Agent in such capacity in connection with the preparation,
execution or enforcement of, or legal advice in respect of rights or
responsibilities under, this Agreement or any amendments or supplements hereto
or thereto to the extent that the Agent is not reimbursed for such expenses by
the Company. All obligations provided for in this Section 12.2 shall survive
repayment of the Loans, cancellation of the Notes or any termination of this
Agreement.
Section 12.3. Action on Instructions of the Required Banks. As
to any matters not expressly provided for by this Agreement (including, without
limitation, enforcement or collection of the Notes), the Agent shall not be
required to exercise any discretion or take any action, but the Agent shall in
all cases be fully protected in acting or refraining from acting upon the
written instructions from (i) the Required Banks, except for instructions which
under the express provisions hereof must be received by the Agent from all Banks
and (ii) in the case of such instructions, from all Banks. In no event will the
Agent be required to take any action which exposes the Agent to personal
liability or which is contrary to this Agreement or applicable law. The
relationship between the Agent and the Banks is and shall be that of agent and
principal only and nothing herein contained shall be construed to constitute the
Agent a trustee for any holder of a Note or of a participation therein nor to
impose on the Agent duties and obligations other than those expressly provided
for herein.
Section 12.4. Payments. (a) The Agent shall be entitled to
assume that each Bank has made its Loan available in accordance with Section 2.3
or Section 3.2(c), as applicable, unless such Bank notifies the Agent at its
Notice Office prior to 11:00 a.m., New York City time, on the Funding Date for
such Loan that it does not intend to make such Loan available, it being
understood that no such notice shall relieve such Bank of any of its obligations
under this Agreement. If the Agent makes any payment to the Company on the
assumption that a Bank has made the proceeds of such Loan available to the Agent
but such Bank has not in fact made the proceeds of such Loan available to the
Agent, such Bank shall pay to the Agent on demand an amount equal to the amount
of such Bank's Loan, together with interest thereon for each day that elapses
from and including such Funding Date to but excluding the Business Day on which
the proceeds of such Bank's Loan become immediately available to the Agent at
its Payment Office
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prior to 12:00 Noon, New York City time, at the Federal Funds Rate for each such
day, based upon a year of 360 days. A certificate of the Agent submitted to any
Bank with respect to any amounts owing under this Section 12.4(a) shall be
conclusive absent demonstrable error. If the proceeds of such Bank's Loan are
not made available to the Agent at its Payment Office by such Bank within three
Business Days of such Funding Date, the Agent shall be entitled to recover such
amount on demand from the Company, together with interest thereon for each day
that elapses from and including such Funding Date to but excluding the Business
Day on which such proceeds become immediately available to the Agent prior to
12:00 Noon, New York City time, (i) in the case of a Bid Loan, at the rate per
annum applicable thereto and (ii) in the case of a Committed Loan, at the rate
per annum applicable to Base Rate Loans hereunder, in either case based upon a
year of 360 days. Nothing in this paragraph (a) shall relieve any Bank of any
obligation it may have hereunder to make any Loan or prejudice any rights which
the Company may have against any Bank as a result of any default by such Bank
hereunder.
(b) The Agent shall be entitled to assume that the Company has
made all payments due hereunder from the Company on the due date thereof unless
it receives notification prior to any such due date from the Company that the
Company does not intend to make any such payment, it being understood that no
such notice shall relieve the Company of any of its obligations under this
Agreement. If the Agent distributes any payment to a Bank hereunder in the
belief that the Company has paid to the Agent the amount thereof but the Company
has not in fact paid to the Agent such amount, such Bank shall pay to the Agent
on demand (which shall be made by telegram, telex, facsimile or personal
delivery) an amount equal to the amount of the payment made by the Agent to such
Bank, together with interest thereon for each day that elapses from and
including the date on which the Agent made such payment to but excluding the
Business Day on which the amount of such payment is returned to the Agent at its
Payment Office in immediately available funds prior to 12:00 Noon, New York City
time, at the Federal Funds Rate for each such day, based upon a year of 360
days. If the amount of such payment is not returned to the Agent in immediately
available funds within three Business Days after demand by the Agent, such Bank
shall pay to the Agent on demand an amount calculated in the manner specified in
the preceding sentence after substituting the term "Base Rate" for the term
"Federal Funds Rate". A certificate of the Agent submitted to any Bank with
respect to amounts owing under this Section 12.4(b) shall be conclusive absent
demonstrable error.
Section 12.5. Exculpation. The Agent shall be entitled to rely
upon advice of counsel concerning legal matters, and upon this Agreement and any
Note, security agreement, schedule, certificate, statement, report, notice or
other writing which it believes to be genuine or to have been presented by a
proper person. Neither the Agent nor any of its directors, officers, employees
or agents shall (i) be responsible for any recitals, representations or
warranties contained in, or for the execution, validity, genuineness,
effectiveness or enforceability of, this Agreement, any Note or any other
instrument or document delivered hereunder or in connection herewith, (ii) be
deemed to have knowledge of an Event of Default or Unmatured Event of Default
until after having received actual notice thereof from the Company or a Bank,
(iii) be under any duty to inquire into or pass upon any of the foregoing
matters, or to make any inquiry concerning the performance by the Company or any
other obligor of its obligations or (iv) in any event, be liable as such for any
action taken or omitted by it or them, except for its or their own gross
negligence or willful misconduct. The agency hereby created shall in no way
impair or
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affect any of the rights and powers of, or impose any duties or obligations
upon, the Agent in its individual capacity.
Section 12.6. Credit Investigation. Each Bank acknowledges,
and shall cause each Assignee or Participant to acknowledge in its assignment or
participation agreement with such Bank, that it has (i) made and will continue
to make such inquiries and has taken and will take such care on its own behalf
as would have been the case had the Loans been made directly by such Bank or
other applicable Person to the Company without the intervention of the Agent or
any other Bank and (ii) independently and without reliance upon the Agent or any
other Bank, and based on such documents and information as it has deemed
appropriate, made and will continue to make its own credit analysis and
decisions relating to this Agreement. Each Bank agrees and acknowledges, and
shall cause each Assignee or Participant to agree and acknowledge in its
assignment or participation agreement with such Bank, that the Agent makes no
representations or warranties about the creditworthiness of the Company or any
other party to this Agreement or with respect to the legality, validity,
sufficiency or enforceability of this Agreement or any Note.
Section 12.7. CUSA and Affiliates. CUSA and each of its
successors as Agent shall have the same rights and powers hereunder as any other
Bank and may exercise or refrain from exercising the same as though it were not
the Agent, and CUSA and any such successor and its Affiliates may accept
deposits from, lend money to and generally engage, and continue to engage, in
any kind of business with the Company or any Affiliate thereof as if CUSA or
such successor were not the Agent hereunder.
Section 12.8. Resignation. The Agent may resign as such at any
time upon at least 30 days' prior notice to the Company and the Banks. In the
event of any such resignation, Banks having an aggregate Percentage of more than
50% shall as promptly as practicable appoint a successor Agent from among the
Banks reasonably acceptable to the Company (no such acceptance being required if
an Event of Default has occurred and is continuing). If no successor Agent shall
have been so appointed, and shall have accepted such appointment, within 30 days
after the retiring Agent's giving of notice of resignation, then the retiring
Agent may, on behalf of the Banks, appoint a successor Agent from among the
Banks reasonably acceptable to the Company (no such acceptance being required if
an Event of Default has occurred and is continuing), which shall be a commercial
bank organized under the laws of the United States of America or of any State
thereof or under the laws of another country which is doing business in the
United States of America and having a combined capital, surplus and undivided
profits of at least $1,000,000,000. Upon the acceptance of any appointment as
Agent hereunder by a successor agent, such successor Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from all
further duties and obligations under this Agreement. After any retiring Agent's
resignation hereunder as Agent, the provisions of this Section 12 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement.
SECTION 13. GENERAL.
Section 13.1. Waiver; Amendments. No delay on the part of the
Agent, any Bank, or the holder of any Loan in the exercise of any right, power
or remedy shall operate as a
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waiver thereof, nor shall any single or partial exercise by any of them of any
right, power or remedy preclude other or further exercise thereof, or the
exercise of any other right, power or remedy. No amendment, modification or
waiver of, or consent with respect to, any provision of this Agreement or the
Notes shall in any event be effective unless the same shall be in writing and
signed and delivered by the Agent and by Banks having an aggregate Percentage of
not less than the aggregate Percentage expressly designated herein with respect
thereto or, in the absence of such designation as to any provision of this
Agreement or the Notes, by the Required Banks, and then any amendment,
modification, waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given. No amendment, modification, waiver
or consent (i) shall extend or increase the amount of the Commitments, extend
the due date for any amount payable hereunder, reduce or waive any fee
hereunder, change the definition of "Required Banks" or "Percentage" in Section
1, amend or modify Section 4.1 or change any of the defined terms used in
Section 4.1, amend or modify Section 4.4, Section 4.5, Section 4.7, Section
11.1.1 or Section 11.1.8, modify this Section 13.1 or otherwise change the
aggregate Percentage required to effect an amendment, modification, waiver or
consent without the written consent of all Banks, (ii) shall modify or waive any
of the conditions precedent specified in Section 10.1 (or Section 5.3 in
connection with the exercise of the Term-Out Option) for the making of any Loan
without the written consent of the Bank which is to make such Loan or (iii)
shall extend the scheduled maturity or reduce the principal amount of, or rate
of interest on, or extend the due date for any amount payable under, any Loan
without the written consent of the holder of the Note evidencing such Loan.
Amendments, modifications, waivers and consents of the type described in clause
(iii) of the preceding sentence with respect to Bid Loans or Bid Notes may be
effected with the written consent of the holder of such Bid Loans or Bid Notes
and no consent of any other Bank or other holder shall be required in connection
therewith. No provisions of Section 12 shall be amended, modified or waived
without the Agent's written consent.
Section 13.2. Notices. Except as otherwise expressly provided
in this Agreement, any notice hereunder to the Company, the Agent, or any Bank
or other holder of a Loan shall be in writing and, if by telegram, telex,
facsimile or personal delivery, shall be deemed to have been given and received
when sent and, if mailed, shall be deemed to have been given and received three
Business Days after the date when sent by registered or certified mail, postage
prepaid, and addressed to the Company, the Agent, or such Bank (or other holder)
at its address shown across from its name on Schedule III hereto or at such
other address as it may, by written notice received by the other parties to this
Agreement, have designated as its address for such purpose. The Agent, any Bank
or the holder of any Note giving any waiver, consent or notice to, or making any
request upon, the Company hereunder shall promptly notify the Agent thereof.
Correspondence of the type described in Section 2.2 with respect to Bid Loans
and notices of Committed Loan Requests made by the Company shall, except as
otherwise provided herein, be directed to the persons specified for such purpose
for each party across from its name on Schedule III hereto or in subsequent
writings among the parties. Additional copies of certain notices which any party
may have requested on said Schedule III need not be delivered at the same time
as the primary notices to such party, but the party delivering such primary
notices shall use reasonable efforts to distribute such copies on the same
Business Day as that on which such primary notices were distributed.
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Section 13.3. Computations. Where the character or amount of
any asset or liability or item of income or expense is required to be
determined, or any consolidation or other accounting computation is required to
be made, for the purpose of this Agreement, such determination or calculation
shall, at any time and to the extent applicable and except as otherwise
specified in this Agreement, be made in accordance with generally accepted
accounting principles in the United States of America applied on a basis
consistent with those in effect as at the date of the Company's audited
financial statements referred to in Section 8.4. If there should be any material
change in generally accepted accounting principles in the United States of
America after the date hereof which materially affects the financial covenants
in this Agreement, the parties hereto agree to negotiate in good faith
appropriate revisions of such covenants (it being understood, however, that such
covenants shall remain in full force and effect in accordance with their
existing terms pending the execution by the Company and the Banks of any such
amendment).
Section 13.4. Assignments; Participations. Each Bank may
assign, or sell participations in, its Loans and its Commitment to one or more
other Persons in accordance with this Section 13.4 (and the Company consents to
the disclosure of any information obtained by any Bank in connection herewith to
any actual or prospective Assignee or Participant).
Section 13.4.1. Assignments. Any Bank may with the written
consents of the Company and the Agent (which consents will not be unreasonably
withheld or delayed) at any time assign and delegate to one or more commercial
banks or other Persons (other than individuals) (any Person to whom an
assignment and delegation is made being herein called an "Assignee") all or any
fraction of such Bank's Loans and Commitment (which assignment and delegation
shall be of a constant, and not a varying, percentage of such assigning Bank's
Loans and Commitment); each such assignment of a Bank's Commitment shall be in
the minimum amount of $10,000,000 or in integral multiples of $1,000,000 in
excess thereof; provided, that any such Assignee will comply, if applicable,
with the provisions contained in the first sentence of Section 6.4(b) and in
Section 6.4(c) and shall be deemed to have made, on the date of the
effectiveness of such assignment and delegation, the representation and warranty
set forth in the second sentence of Section 6.4(b); and provided, further, that
the Company and the Agent shall be entitled to continue to deal solely and
directly with such assigning Bank in connection with the interests so assigned
and delegated to an Assignee until such assigning Bank and/or such Assignee
shall have:
(i) given written notice of such assignment and
delegation, together with payment instructions, addresses and
related information with respect to such Assignee,
substantially in the form of Exhibit I, to the Company and the
Agent;
(ii) provided evidence satisfactory to the Company and
the Agent that, as of the date of such assignment and
delegation, the Company will not be required to pay any costs,
fees, taxes or other amounts of any kind or nature with
respect to the interest assigned in excess of those payable by
the Company with respect to such interest prior to such
assignment;
(iii) paid to the Agent for the account of the Agent a
processing fee of
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$2,500; and
(iv) provided to the Agent evidence reasonably
satisfactory to the Agent that the assigning Bank has complied
with the provisions of the last sentence of Section 12.6.
Upon receipt of the foregoing items and the consents of the Company and the
Agent, (x) the Assignee shall be deemed automatically to have become a party
hereto and, to the extent that rights and obligations hereunder have been
assigned and delegated to such Assignee, such Assignee shall have the rights and
obligations of a Bank hereunder and under the other instruments and documents
executed in connection herewith and (y) the assigning Bank, to the extent that
rights and obligations hereunder have been assigned and delegated by it, shall
be released from its obligations hereunder. The Agent may from time to time (and
upon the request of the Company or any Bank after any change therein shall)
distribute a revised Schedule I indicating any changes in the Banks party hereto
or the respective Percentages of such Banks. Within five Business Days after the
Company's receipt of notice from the Agent of the effectiveness of any such
assignment and delegation, the Company shall execute and deliver to the Agent
(for delivery to the relevant Assignee) new Notes in favor of such Assignee and,
if the assigning Bank has retained Loans and a Commitment hereunder, replacement
Notes in favor of the assigning Bank (such Notes to be in exchange for, but not
in payment of, the Notes previously held by such assigning Bank). Each such Note
shall be dated the date of the predecessor Notes. The assigning Bank shall
promptly xxxx the predecessor Notes "exchanged" and deliver them to the Company.
Any attempted assignment and delegation not made in accordance with this Section
13.4.1 shall be null and void.
The foregoing consent requirement shall not be applicable in the case
of, and this Section 13.4.1 shall not restrict, any assignment or other transfer
by any Bank of all or any portion of such Bank's Loans or Commitment to (i) any
Federal Reserve Bank (provided, that such Federal Reserve Bank shall not be
considered a "Bank" for purposes of this Agreement) or (ii) any Affiliate of
such Bank (provided, that the assigning or transferring Bank shall give notice
of such assignment or transfer to the Agent and the Company). Further, the
foregoing consent requirement of the Company shall not be applicable if an Event
of Default has occurred and is continuing.
The Company acknowledges and agrees that after receipt by the Agent of
the items and consents required by this Section each Assignee shall be
considered a Bank for all purposes of this Agreement (including without
limitation Section 6.4(b), 6.4(c), 7.1, 7.4, 13.5 and 13.6) and by its
acceptance of an assignment herein, each Assignee agrees to be bound by the
provisions of this Agreement (including without limitation Section 6.4(b) and
6.4(c)).
Section 13.4.2. Participations. Any Bank may at any time sell
to one or more commercial banks or other Persons (any such commercial bank or
other Person being herein called a "Participant") participating interests in any
of its Loans, its Commitment or any other interest of such Bank hereunder;
provided, however, that
(a) no participation contemplated in this Section 13.4.2 shall
relieve such Bank
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from its Commitment or its other obligations hereunder;
(b) such Bank shall remain solely responsible for the
performance of its Commitment and such other obligations hereunder and
such Bank shall retain the sole right and responsibility to enforce the
obligations of the Company hereunder, including the right to approve
any amendment, modification or waiver of any provision of this
Agreement (subject to Section 13.4.2(d) below);
(c) the Company and the Agent shall continue to deal solely
and directly with such Bank in connection with such Bank's rights and
obligations under this Agreement;
(d) no Participant, unless such Participant is an Affiliate of
such Bank, or is itself a Bank, shall be entitled to require such Bank
to take or refrain from taking any action hereunder, except that such
Bank may agree with any Participant that such Bank will not, without
such Participant's consent, take any actions of the type described in
the third sentence of Section 13.1;
(e) the Company shall not be required to pay any amount under
Sections 4.1, 6.4 or 7.1 that is greater than the amount which the
Company would have been required to pay had no participating interest
been sold;
(f) no Participant may further participate any interest in any
Committed Loan (and each participation agreement shall contain a
restriction to such effect). The Company acknowledges and agrees that,
to the extent permitted by applicable law, each Participant shall be
considered a Bank for purposes of Sections 6.4(b), 6.4(c), 7.1, 7.4,
13.5 and 13.6 and by its acceptance of a participation herein, each
Participant agrees to be bound by the provisions of Sections 6.2(b),
6.4(b) and 6.4(c) as if such Participant were a Bank; and
(g) such Bank shall have provided to the Agent evidence
reasonably satisfactory to the Agent that such Bank has complied with
the provisions of the last sentence of Section 12.6.
Section 13.5. Costs, Expenses and Taxes. The Company agrees to
pay on demand (a) all out-of-pocket costs and expenses of the Agent (including
the fees and out-of-pocket expenses of counsel for the Agent (and of local
counsel, if any, who may be retained by said counsel)), in connection with the
preparation, execution, delivery and administration of this Agreement, the Notes
and all other instruments or documents provided for herein or delivered or to be
delivered hereunder or in connection herewith and (b) all out-of-pocket costs
and expenses (including reasonable attorneys' fees and legal expenses and
allocated costs of staff counsel) incurred by the Agent and each Bank in
connection with the enforcement of this Agreement, the Notes or any such other
instruments or documents. Each Bank agrees to reimburse the Agent for such
Bank's pro rata share (based upon its respective Percentage) of any such costs
or expenses incurred by the Agent on behalf of all the Banks and not paid by the
Company other than any fees and out-of-pocket expenses of counsel for the Agent
which exceed the amount which the Company has agreed with the Agent to
reimburse. In addition, the Company agrees to pay, and
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to hold the Agent and the Banks harmless from all liability for, any stamp or
other Taxes which may be payable in connection with the execution and delivery
of this Agreement, the borrowings hereunder, the issuance of the Notes or the
execution and delivery of any other instruments or documents provided for herein
or delivered or to be delivered hereunder or in connection herewith. All
obligations provided for in this Section 13.5 shall survive repayment of the
Loans, cancellation of the Notes or any termination of this Agreement.
Section 13.6. Indemnification. In consideration of the
execution and delivery of this Agreement by the Agent and the Banks, the Company
hereby agrees to indemnify, exonerate and hold each of the Banks, the Agent, the
Affiliates of each of the Banks and the Agent, and each of the officers,
directors, employees and agents of the Banks, the Agent and the Affiliates of
each of the Banks and the Agent (collectively herein called the "Bank Parties"
and individually called a "Bank Party") free and harmless from and against any
and all actions, causes of action, suits, losses, liabilities, damages and
expenses, including, without limitation, reasonable attorneys' fees and
disbursements (collectively herein called the "Indemnified Liabilities"),
incurred by the Bank Parties or any of them as a result of, or arising out of,
or relating to (i) this Agreement, the Notes or the Loans or (ii) the direct or
indirect use of proceeds of any of the Loans or any credit extended hereunder,
except for any such Indemnified Liabilities arising on account of such Bank
Party's gross negligence or willful misconduct, and if and to the extent that
the foregoing undertaking may be unenforceable for any reason, the Company
hereby agrees to make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities which is permissible under applicable
law. All obligations provided for in this Section 13.6 shall survive repayment
of the Loans, cancellation of the Notes or any termination of this Agreement.
Section 13.7. Regulation U. Each Bank represents that it in
good faith is not relying, either directly or indirectly, upon any margin stock
(as such term is defined in Regulation U promulgated by the Board of Governors
of the Federal Reserve System) as collateral security for the extension or
maintenance by it of any credit provided for in this Agreement.
Section 13.8. Extension of Termination Dates; Removal of
Banks; Substitution of Banks. (a) Not more than 60 days nor less than 45 days
prior to the then-effective Termination Date, the Company may, at its option,
request all the Banks then party to this Agreement to extend their scheduled
Termination Dates by an additional 364 days, or such shorter period as agreed
upon by the Company and the Agent, by means of a letter, addressed to each such
Bank and the Agent, substantially in the form of Exhibit J. Each such Bank
electing (in its sole discretion) so to extend its scheduled Termination Date
shall execute and deliver not earlier than the 30th day nor later than the 20th
day prior to the then-effective Termination Date counterparts of such letter to
the Company and the Agent, who shall notify the Company, in writing, of the
Banks' decisions no later than 15 days prior to the existing Termination Date,
whereupon (unless Banks with an aggregate Percentage in excess of 25% decline to
extend their respective scheduled Termination Dates, in which event the Agent
shall notify all the Banks thereof and no such extension shall occur) such
Bank's scheduled Termination Date shall be extended, effective only as of the
date that is such Bank's then-current scheduled Termination Date, to the date
that is 364 days, or such shorter period as agreed as provided above, after such
Bank's then-current scheduled Termination Date. Any Bank that declines or fails
to respond to the Company's
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request for such extension shall be deemed to have not extended its scheduled
Termination Date.
(b) With respect to any Bank (i) on account of which the
Company is required to make any deductions or withholdings or pay any additional
amounts, as contemplated by Section 6.4, (ii) on account of which the Company is
required to pay any additional amounts, as contemplated by Section 7.1, (iii)
for which it is illegal to make a LIBOR Rate Loan, as contemplated by Section
7.3 or (iv) which has declined to extend such Bank's scheduled Termination Date
and Banks with an aggregate Percentage in excess of 75% have elected to extend
their respective Termination Dates, the Company may in its discretion, upon not
less than 30 days' prior written notice to the Agent and each Bank, remove such
Bank as a party hereto. Each such notice shall specify the date of such removal
(which shall be a Business Day and, if such Bank has any outstanding Bid Loans,
shall (unless otherwise agreed by such Bank) be on or after the last day of the
Loan Period for the Bid Loan of such Bank having the latest maturity date),
which shall thereupon become the scheduled Termination Date for such Bank.
(c) In the event that any Bank does not extend its scheduled
Termination Date pursuant to subsection (a) above or is the subject of a notice
of removal pursuant to subsection (b) above, then, at any time prior to the
Termination Date for such Bank (a "Terminating Bank"), the Company may, at its
option, arrange to have one or more other commercial banks or financial
institutions (which may be a Bank or Banks, or if not a Bank, shall be
acceptable to the Agent (such acceptance not to be unreasonably withheld), and
each of which shall herein be called a "Successor Bank") with the approval of
the Agent (such approval not to be unreasonably withheld) succeed to all or a
percentage of the Terminating Bank's outstanding Loans, if any, and rights under
this Agreement and assume all or a like percentage (as the case may be) of such
Terminating Bank's undertaking to make Loans pursuant hereto and other
obligations hereunder (as if (i) in the case of any Bank electing not to extend
its scheduled Termination Date pursuant to subsection (a) above, such Successor
Bank had extended its scheduled Termination Date pursuant to such subsection (a)
and (ii) in the case of any Bank that is the subject of a notice of removal
pursuant to sub-section (b) above, no such notice of removal had been given by
the Company); provided, that prior to replacing any Terminating Bank with any
Successor Bank, the Company shall have given each Bank which has agreed to
extend its Termination Date an opportunity to increase its Commitment by all or
a portion of the Terminating Banks' Commitments. Such succession and assumption
shall be effected by means of one or more agreements supplemental to this
Agreement among the Terminating Bank, the Successor Bank, the Company and the
Agent. On and as of the effective date of each such supplemental agreement (i)
each Successor Bank party thereto shall be and become a Bank for all purposes of
this Agreement and to the same extent as any other Bank hereunder and shall be
bound by and entitled to the benefits of this Agreement in the same manner as
any other Bank and (ii) the Borrower agrees to pay to the Agent for the account
of the Agent a processing fee of $2,500 for each such Successor Bank which is
not a Bank.
(d) On the Termination Date for any Terminating Bank, such
Terminating Bank's Commitment shall terminate and the Company shall pay in full
all of such Terminating Bank's Loans (except to the extent assigned pursuant to
subsection (c) above) and all other amounts payable to such Bank hereunder
(including any amounts payable pursuant to Section 7.4 on account of such
payment); provided, that if an Event of Default or Unmatured Event of Default
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exists on the date scheduled as any Terminating Bank's Termination Date, payment
of such Terminating Bank's Loans shall be postponed to (and, for purposes of
calculating facility fees under Section 4.4, utilization fees under Section 4.5
and determining the Required Banks (except as provided below), but for no other
purpose, such Terminating Bank's Commitment shall continue until) the first
Business Day thereafter on which (i) no Event of Default or Unmatured Event of
Default exists (without regard to any waiver or amendment that makes this
Agreement less restrictive for the Company, other than as described in clause
(ii) below) or (ii) the Required Banks (which for purposes of this subsection
(d) shall be determined based upon the respective Percentages and aggregate
Commitments of all Banks other than any Terminating Bank whose scheduled
Termination Date has been extended pursuant to this proviso) waive or amend the
provisions of this Agreement to cure all existing Events of Default or Unmatured
Events of Default or agree to permit any borrowing hereunder notwithstanding the
existence of any such event. In the event that CUSA or its Affiliates shall
become a Terminating Bank, the Required Banks with the consent of the Company
(which consent shall not be unreasonably withheld) shall appoint another Bank or
other Person as Agent, which shall have all of the rights and obligations of the
Agent upon the effective date of and pursuant to an agreement supplemental
hereto among the Company and the Banks, and thereupon CUSA, as Agent, shall be
relieved from its obligations as Agent hereunder, it being understood that the
provisions of Section 12 shall inure to the benefit of CUSA as to any actions
taken or omitted to be taken by it while it was Agent under this Agreement. If
no such successor Agent shall be appointed within 30 days of the Termination
Date of the Agent, then the Agent shall, on behalf of the Banks, appoint a
successor Agent in accordance with the provisions set forth in Section 12.8 for
a resigning Agent.
(e) To the extent that all or a portion of any Terminating
Bank's obligations are not assumed pursuant to subsection (c) above, the
Aggregate Commitment shall be reduced on the applicable Termination Date and
each Bank's percentage of the reduced Aggregate Commitment shall be revised pro
rata to reflect such Terminating Bank's absence. The Agent shall distribute a
revised Schedule I indicating such revisions promptly after the applicable
Termination Date. Such revised Schedule I shall be deemed conclusive in the
absence of demonstrable error.
(f) The Agent agrees to use reasonable commercial efforts to
assist the Company in locating one or more commercial banks or other financial
institutions to replace any Terminating Bank prior to such Terminating Bank's
Termination Date.
Section 13.9. Captions. Section captions used in this
Agreement are for convenience only and shall not affect the construction of this
Agreement.
Section 13.10. Governing Law; Severability. THIS AGREEMENT AND
EACH NOTE SHALL BE A CONTRACT MADE UNDER, GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK. All obligations of the Company
and the rights of the Agent, the Banks and any other holders of the Notes
expressed herein or in the Notes shall be in addition to and not in limitation
of those provided by applicable law. Whenever possible each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of
Credit Agreement
-49-
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.
Section 13.11. Counterparts; Effectiveness. This Agreement may
be executed in any number of counterparts and by the different parties on
separate counterparts and each such counterpart shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same Agreement. When counterparts of this Agreement executed by each party shall
have been lodged with the Agent (or, in the case of any Bank as to which an
executed counterpart shall not have been so lodged, the Agent shall have
received telegraphic, telex or other written confirmation of execution of a
counterpart hereof by such Bank), this Agreement shall become effective as of
the date hereof and the Agent shall so inform all of the parties hereto.
Section 13.12. Further Assurances. The Company agrees to do
such other acts and things, and to deliver to the Agent and each Bank such
additional agreements, powers and instruments, as the Agent or any Bank may
reasonably require or deem advisable to carry into effect the purposes of this
Agreement or to better assure and confirm unto the Agent and each Bank their
respective rights, powers and remedies hereunder.
Section 13.13. Successors and Assigns. This Agreement shall be
binding upon the Company, the Banks and the Agent and their respective
successors and assigns, and shall inure to the benefit of the Company, the Banks
and the Agent and the respective successors and assigns of the Banks and the
Agent. Subject to Section 9.9, the Company may not assign any of its rights or
delegate any of its duties under this Agreement without the prior written
consent of all of the Banks.
Section 13.14. Waiver of Jury Trial. THE COMPANY, THE AGENT
AND EACH BANK HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE OR ANY
AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE
FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING
RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREE THAT ANY SUCH
ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
Section 13.15. No Fiduciary Relationship. The Company
acknowledges that neither the Agent nor any Bank has any fiduciary relationship
with, or fiduciary duty to, the Company arising out of or in connection with
this Agreement, the Notes or the transactions contemplated hereby, and the
relationship between the Agent and the Banks, on the one hand, and the Company,
on the other, in connection herewith or therewith is solely that of creditor and
debtor. This Agreement does not create a joint venture among the parties.
Credit Agreement
-50-
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
INTERNATIONAL LEASE FINANCE
CORPORATION
By: /s/ Xxxx X. Xxxx
-----------------------------------
Name: Xxxx X. Xxxx
Title: Vice Chairman
Chief Financial Officer
By: /s/ Xxxxxx X. Xxxxxx
-----------------------------------
Name: Xxxxxx X. Xxxxxx
Title: Vice President
and Treasurer
Credit Agreement
-51-
Agent: CITICORP USA, INC., as Agent
By: /s/ Xxxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Attorney-in-Fact
Credit Agreement
-52-
Agent: CITICORP USA, INC., as Agent
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Vice President
Credit Agreement
-53-
Banks: CITICORP USA, INC.
By: /s/ Xxxxxx X. Xxxxxxxx
--------------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Attorney-in-Fact
Credit Agreement
-00-
XXXX XX XXXXXXX, N.A.
By: /s/ Xxxx X'Xxxxx
-----------------------------------
Name: Xxxx X. X'Xxxxx
Title: Managing Director
Credit Agreement
-55-
THE GOVERNOR AND COMPANY OF THE
BANK OF SCOTLAND
By: /s/ Xxxxxx Xxxx
-----------------------------------
Name: Xxxxxx Xxxx
Title: Director
Credit Agreement
-00-
XXX XXXX XX XXXXX-XXXXXXXXXX, LTD.
NEW YORK BRANCH
By: /s/ Xxxxx X. Xxxx, Xx.
-----------------------------------
Name: Xxxxx Xxxx
Title: Vice President
Authorized Signatory
Credit Agreement
-57-
JPMORGAN CHASE BANK
By: /s/ Xxxxxxx X. Xxxxxx
-----------------------------------
Name: Xxxxxxx X. Xxxxxx
Title: Managing Director
Credit Agreement
-58-
ABN AMRO BANK N.V.
By: /s/ Xxxx X. Xxxxx /s/ Xxxxxxx XxXxxxx
------------------------------------------
Name: Xxxx X. Xxxxx Xxxxxxx XxXxxxx
Title: Vice President Corporate Banking
Officer
Credit Agreement
-59-
SOCIETE GENERALE
By: /s/ Xxxxx Xxxxxx
------------------------------------
Name: Xxxxx Xxxxxx, Vice President
Title: Corporate Banking, Societe Generale
Credit Agreement
-00-
XXX XXXX XX XXXX XXXXXX
By: /s/ X.X. Xxxxxxxx
-----------------------------------
Name: X.X. Xxxxxxxx
Title: Industry Head
Credit Agreement
-61-
BARCLAYS BANK PLC
By: /s/ Xxxxxx X. XxXxxxxx
-----------------------------------
Name: Xxxxxx X. XxXxxxxx
Title: Associate Director
Credit Agreement
-00-
XXXXXX XX, XXX XXXX BRANCH
By: /s/ Xxxxxxx Xxxx Xxx
-----------------------------------
Name: Xxxxxxx Xxxx Xxx
Title: Executive Director
By: /s/ Xxxxxx X. Xxxxxx
-----------------------------------
Name: Xxxxxx X. Xxxxxx
Title: Director
Credit Agreement
-00-
XXXXXXXXXXX XX, XXX XXXX AND
GRAND CAYMAN BRANCHES
By: /s/ Christian Jagenberg
-----------------------------------
Name: Christian Jagenberg
Title: SVP and Manager
By: /s/ Xxxxxx Xxxxxxxxxxx
-----------------------------------
Name: Xxxxxx Xxxxxxxxxxx
Title: SVP
Credit Agreement
-00-
XXXXXXXX XXXX XX XXX XXXX
XXXXXX
By: /s/ Xxxxxxx X. Xxxxxxx
---------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Managing Director
By: /s/ Xxxx X. XxXxxx
-----------------------------------
Name: Xxxx X. XxXxxx
Title: Director
Credit Agreement
-65-
BANK ONE, NA
By: /s/ Xxxx Xxxxxx
-----------------------------------
Name: Xxxx Xxxxxx
Title: Director
Credit Agreement
-66-
XXXXXXX XXXXX BANK USA
By: /s/ Xxxxx X. Xxxxx
-----------------------------------
Name: Xxxxx X. Xxxxx
Title: Vice President
Credit Agreement
-67-
XXXXXX XXXXXXX BANK
By: /s/ Jaap L. Tonckens
---------------------------------
Name: Jaap L. Tonckens
Title: Vice President
Xxxxxx Xxxxxxx Bank
Credit Agreement
-68-
LLOYDS TSB BANK PLC
By: /s/ Xxxxxxx X. Xxxxxxxx
-----------------------------------
Name: Xxxxxxx X. Xxxxxxxx
Title: Director, Financial Institutions, USA
G311
By: /s/ Xxxxxxx X.X. Tuck
-----------------------------------
Name: Xxxxxxx X.X. Xxxx
Title: Vice President, Financial Institutions, USA
T020
Credit Agreement
-69-
XXXXXX BROTHERS BANK, FSB
By: /s/ Xxxx X. Xxxxxx
-----------------------------------
Name: Xxxx X. Xxxxxx
Title: Vice President
Credit Agreement
-70-
UFJ BANK LIMITED
By: /s/ Xxxxxxx X. Small
-----------------------------------
Name: Xxxxxxx X. Small
Title: Senior Vice President and
Area Manager
Credit Agreement
-71-
SANPAOLO IMI S.p.A.
By: /s/ Xxxxx Xxxxxxx
-----------------------------------
Name: Xxxxxx Xxxxxxx
Title: E.V.P.
By: /s/ Xxxxxx Xxxxxxx
-----------------------------------
Name: Xxxxxx Xxxxxxx
Title: S.V.P.
Credit Agreement
-72-
STANDARD CHARTERED BANK
By: /s/ Xxxxxx Xxxxxxx
-----------------------------------
Name: Xxxxxx Xxxxxxx
Title: Senior Vice President
By: /s/ Xxxxxx Xx
-----------------------------------
Name: Xxxxxx Xx
Title: Vice President
Credit Agreement
Schedule 1
Schedule of Banks
-------------------------------------------------------------------------
BANK COMMITMENT
-------------------------------------------------------------------------
Citicorp USA, Inc. $260,000,000
-------------------------------------------------------------------------
Bank of America, N.A. $300,000,000
-------------------------------------------------------------------------
The Governor and Company of the Bank of Scotland $260,000,000
-------------------------------------------------------------------------
The Bank of Tokyo-Mitsubishi, Ltd. New York Branch $180,000,000
-------------------------------------------------------------------------
JPMorgan Chase Bank $180,000,000
-------------------------------------------------------------------------
ABN AMRO Bank N.V. $120,000,000
-------------------------------------------------------------------------
Societe Generale $120,000,000
-------------------------------------------------------------------------
The Bank of Nova Scotia $100,000,000
-------------------------------------------------------------------------
Barclays Bank Plc $100,000,000
-------------------------------------------------------------------------
WestLB AG, New York Branch $ 90,000,000
-------------------------------------------------------------------------
Commerzbank AG, New York and Grand Cayman Branches $ 75,000,000
-------------------------------------------------------------------------
Deutsche Bank AG New York Branch $ 70,000,000
-------------------------------------------------------------------------
Bank One, NA $ 50,000,000
-------------------------------------------------------------------------
Xxxxxxx Xxxxx Bank USA $ 50,000,000
-------------------------------------------------------------------------
Xxxxxx Xxxxxxx Bank $ 50,000,000
-------------------------------------------------------------------------
Lloyds TSB Bank Plc $ 45,000,000
-------------------------------------------------------------------------
Xxxxxx Commercial Paper Inc. $ 30,000,000
-------------------------------------------------------------------------
UFJ Bank Limited $ 30,000,000
-------------------------------------------------------------------------
SANPAOLO IMI S.p.A. $ 25,000,000
-------------------------------------------------------------------------
Standard Chartered Bank $ 15,000,000
-------------------------------------------------------------------------
Schedule 1
Schedule II
Fees and Margins
(in basis points)
-----------------------------------------------------------------------------------------------------------
Level I Level II Level III Level IV Level V Level VI
Pricing Pricing Pricing Pricing Pricing Pricing
-----------------------------------------------------------------------------------------------------------
Facility Fee 7.0 8.0 9.0 10.0 12.5 17.5
-----------------------------------------------------------------------------------------------------------
Margins:
on LIBOR Rate 8.0 17.0 26.0 35.0 47.5 57.5
Loans (other than
Term Loans)
on Base Rate Loans 0.0 0.00 0.0 0.0 0.0 0.0
Competitive
Bid Option As bid by As bid by As bid by As bid by As bid by As bid by
the Banks the Banks the Banks the Banks the Banks the Banks
-----------------------------------------------------------------------------------------------------------
Utilization Fee
Rate:
In excess of 33.33% 5.0 5.0 5.0 5.0 5.0 10.0
In excess of 66.66% 5.0 5.0 5.0 10.0 10.0 15.0
-----------------------------------------------------------------------------------------------------------
Drawn Pricing Under 40.0 50.0 60.0 75.0 90.0 115.0
the Term-Out Option
(if LIBOR Rate
Loans)
-----------------------------------------------------------------------------------------------------------
For purposes of this Schedule, the following terms have the following
meanings:
"Level I Pricing" means the pricing during any period
during which the Company's long-term senior unsecured debt is rated AA
or higher by S&P or Aa2 or higher by Moody's.
Schedule II
-2-
"Level II Pricing" means the pricing during any
period during which (i) the Company's long-term senior unsecured debt
is rated AA- or higher by S&P or Aa3 or higher by Moody's and (ii)
Level I Pricing does not apply.
"Level III Pricing" means the pricing during any
period during which (i) the Company's long-term senior unsecured debt
is rated A+ or higher by S&P or A1 or higher by Moody's and (ii)
neither Level I Pricing nor Level II Pricing applies.
"Level IV Pricing" means the pricing during any
period during which (i) the Company's long-term senior unsecured debt
is rated A or higher by S&P or A2 or higher by Moody's and (ii) none of
Level I Pricing, Level II Pricing and Level III Pricing applies.
"Level V Pricing" means the pricing during any period
during which (i) the Company's long-term senior unsecured debt is rated
A- or higher by S&P or A3 or higher by Moody's and (ii) none of Level I
Pricing, Level II Pricing, Level III Pricing and Level IV Pricing
applies.
"Level VI Pricing" means the pricing during any
period during which no other Pricing Level applies.
"Moody's" means Xxxxx'x Investors Service, Inc. or
any successor corporation thereto.
"Pricing Level" means Level I Pricing, Level II
Pricing, Level III Pricing, Level IV Pricing, Level V Pricing and Level
VI Pricing.
"S & P's" means Standard & Poor's Ratings Group, a
division of McGraw Hill, Inc., or any successor corporation thereto.
Any change in fees or margins by reason of a change in S&P's
rating or Xxxxx'x rating shall become effective on the date of announcement or
publication by the respective rating agencies of a change in such rating or, in
the absence of such announcement or publication, on the effective date of such
changed rating.
If S&P's rating and Xxxxx'x rating differ by more than one
rating level, then the applicable Pricing Level shall be one rating level higher
than the Pricing Level resulting from the application of the lower of such
ratings.
Schedule II
Schedule III
Address for Notices
--------------------------------------------------------------------------------------------------------
PARTY ADDRESS FOR NOTICES
--------------------------------------------------------------------------------------------------------
Company Xxxxxx X. Xxxxxx
1999 Avenue of the Stars, 00xx Xxxxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Tel: 000-000-0000
Fax: 000-000-0000
Telex: 69-1400 INTERLEAS BVHL
--------------------------------------------------------------------------------------------------------
Agent 0 Xxxxx Xxx, Xxxxx 000
Xxx Xxxxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
--------------------------------------------------------------------------------------------------------
Citicorp USA, Inc., as Bank 0 Xxxxx Xxx, Xxxxx 000
Xxx Xxxxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
--------------------------------------------------------------------------------------------------------
Bank of America, N.A. Xxxx X'Xxxxx
000 Xxxx Xxxxxx, 00xx Xx.
Xxxxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxxx.xxxxxx@xxxxxxxxxxxxx.xxx
--------------------------------------------------------------------------------------------------------
The Governor and Company of the Bank of Scotland
--------------------------------------------------------------------------------------------------------
The Bank of Tokyo-Mitsubishi, Ltd. New York Branch
--------------------------------------------------------------------------------------------------------
JPMorgan Chase Bank
--------------------------------------------------------------------------------------------------------
ABN AMRO Bank N.V.
--------------------------------------------------------------------------------------------------------
Societe Generale
--------------------------------------------------------------------------------------------------------
The Bank of Nova Scotia Xxx Xxxxx
Xxx Xxxxxxx Xxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxx_xxxxx@xxxxxxxxxxxxx.xxx
--------------------------------------------------------------------------------------------------------
Barclays Bank Plc
--------------------------------------------------------------------------------------------------------
WestLB AG, New York Branch
--------------------------------------------------------------------------------------------------------
Commerzbank AG, New York and Grand
--------------------------------------------------------------------------------------------------------
Schedule III
-2-
--------------------------------------------------------------------------------------------------------
Cayman Branches
--------------------------------------------------------------------------------------------------------
Deutsche Bank AG New York Branch
--------------------------------------------------------------------------------------------------------
Bank One, NA Xxxx Xxxxxx
1 Bank One Plaza
Mail Code IL1-0085
Xxxxxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxxx_x_xxxxxx@xxxxxxx.xxx
--------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxx Bank USA Xxxxx Xxxxx
00 X. Xxxxx Xxxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
--------------------------------------------------------------------------------------------------------
Xxxxxx Xxxxxxx Bank Xxxxxx XxXxxxxx
000 Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxxxxx.xxxxxxxx@xxxxxxxxxxxxx.xxx
--------------------------------------------------------------------------------------------------------
Lloyds TSB Bank Plc
--------------------------------------------------------------------------------------------------------
Xxxxxx Commercial Paper Inc. G. Xxxxxx Xxxxx
000 Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxxxxx@xxxxxx.xxx
--------------------------------------------------------------------------------------------------------
UFJ Bank Limited
--------------------------------------------------------------------------------------------------------
SANPAOLO IMI S.p.A.
--------------------------------------------------------------------------------------------------------
Standard Chartered Bank
--------------------------------------------------------------------------------------------------------
Schedule III
