AMENDED AND RESTATED
FIVE-YEAR CREDIT AGREEMENT
Dated as of October 15, 2004
Among
DTE ENERGY COMPANY,
as Borrower
and
THE INITIAL LENDERS NAMED HEREIN,
as Initial Lenders
and
CITIBANK, N.A.,
as Administrative Agent
and
X.X. XXXXXX SECURITIES INC.,
BARCLAYS BANK PLC,
as Co-Syndication Agent
as Co-Syndication Agent
and
KEYBANK NATIONAL ASSOCIATION, UBS SECURITIES LLC
as Co-Documentation Agent as Co-Documentation Agent
================================================================================
CITIGROUP GLOBAL MARKETS INC.,
as Lead Arranger and Sole Book Runner
================================================================================
TABLE OF CONTENTS
PAGE
----
ARTICLE I: DEFINITIONS AND ACCOUNTING TERMS.................................... 1
SECTION 1.01. Certain Defined Terms.................................. 1
SECTION 1.02. Computation of Time Periods............................ 12
SECTION 1.03. Accounting Terms....................................... 12
SECTION 1.04. Status Under Three-Year Agreement...................... 12
ARTICLE II: AMOUNTS AND TERMS OF THE REVOLVING CREDIT ADVANCES................. 13
SECTION 2.01. The Revolving Credit Advances.......................... 13
SECTION 2.02. Making the Revolving Credit Advances................... 13
SECTION 2.03. Fees................................................... 14
SECTION 2.04. Termination or Reduction of the Commitments............ 15
SECTION 2.05. Repayment of Revolving Credit Advances................. 15
SECTION 2.06. Interest on Revolving Credit Advances.................. 15
SECTION 2.07. Interest Rate Determination............................ 16
SECTION 2.08. Optional Conversion of Revolving Credit Advances....... 17
SECTION 2.09. Prepayments of Revolving Credit Advances............... 17
SECTION 2.10. Increased Costs........................................ 18
SECTION 2.11. Illegality............................................. 18
SECTION 2.12. Payments and Computations.............................. 19
SECTION 2.13. Taxes.................................................. 20
SECTION 2.14. Sharing of Payments, Etc............................... 22
SECTION 2.15. Use of Proceeds........................................ 22
SECTION 2.16. Reserved............................................... 22
SECTION 2.17. Noteless Agreement; Evidence of Indebtedness........... 22
ARTICLE III: CONDITIONS TO EFFECTIVENESS AND LENDING........................... 23
SECTION 3.01. Conditions Precedent to Effectiveness of this
Agreement.............................................. 23
SECTION 3.02. Conditions Precedent to Each Borrowing................. 25
SECTION 3.03. Determinations Under Section 3.01...................... 25
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ARTICLE IV: REPRESENTATIONS AND WARRANTIES..................................... 25
SECTION 4.01. Representations and Warranties of the Borrower......... 25
ARTICLE V: COVENANTS OF THE BORROWER........................................... 27
SECTION 5.01. Affirmative Covenants.................................. 27
SECTION 5.02. Negative Covenants..................................... 30
ARTICLE VI: EVENTS OF DEFAULT.................................................. 30
SECTION 6.01. Events of Default...................................... 30
ARTICLE VII: THE AGENT......................................................... 33
SECTION 7.01. Authorization and Action............................... 33
SECTION 7.02. Agent's Reliance, Etc.................................. 33
SECTION 7.03. Citibank and Affiliates................................ 33
SECTION 7.04. Lender Credit Decision................................. 34
SECTION 7.05. Indemnification........................................ 34
SECTION 7.06. Successor Agent........................................ 34
SECTION 7.07. Co-Documentation Agent................................. 35
ARTICLE VIII: MISCELLANEOUS.................................................... 35
SECTION 8.01. Amendments, Etc........................................ 35
SECTION 8.02. Notices, Etc........................................... 35
SECTION 8.03. No Waiver; Remedies.................................... 37
SECTION 8.04. Costs and Expenses..................................... 37
SECTION 8.05. Right of Set-off....................................... 38
SECTION 8.06. Binding Effect......................................... 39
SECTION 8.07. Assignments, Designations and Participations........... 39
SECTION 8.08. Confidentiality........................................ 43
SECTION 8.09. Governing Law.......................................... 43
SECTION 8.10. Execution in Counterparts; Integration................. 43
SECTION 8.11. Jurisdiction, Etc...................................... 44
SECTION 8.12. Waiver of Jury Trial................................... 44
SECTION 8.13. Consent................................................ 44
SECTION 8.14. USA Patriot Act Notification........................... 45
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SCHEDULES AND EXHIBITS
Schedules
Schedule I - List of Applicable Lending Offices
Pricing Schedule
Exhibits
Exhibit A - Form of Note (If Requested)
Exhibit B - Form of Notice of Borrowing
Exhibit C - Form of Assignment and Acceptance
Exhibit D - Form of Certificate by Borrower
Exhibit E-1 - Form of Opinion of Associate General Counsel to the Borrower
Exhibit E-2 - Form of Opinion of Hunton & Xxxxxxxx LLP
Exhibit F - Form of Compliance Certificate
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This AMENDED AND RESTATED FIVE-YEAR CREDIT AGREEMENT (this
"Agreement") dated as of October 15, 2004 is entered into among DTE ENERGY
COMPANY, a Michigan corporation (the "Borrower"), the banks, financial
institutions and other institutional lenders (the "Initial Lenders") listed on
the signature pages hereof, and CITIBANK, N.A. ("Citibank"), as Administrative
Agent (the "Agent") and X.X. XXXXXX SECURITIES INC., as Co-Syndication Agent,
and BARCLAYS BANK PLC, as Co-Syndication Agent for the Lenders (as hereinafter
defined) to amend and restate the Existing Credit Agreement (as hereinafter
defined), and from and after the date hereof, the Existing Credit Agreement is
hereby amended and restated in its entirety.
PRELIMINARY STATEMENTS.
The Borrower has requested that the Initial Lenders enter into this
Agreement, and the Initial Lenders have indicated their willingness to enter
into this Agreement upon the terms and conditions stated herein.
NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements contained herein, the parties hereto hereby agree,
subject to the satisfaction of the conditions set forth in Article III, as
follows:
ARTICLE I: DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
"Affiliate" means, as to any Person, any other Person that, directly
or indirectly, controls, is controlled by or is under common control with
such Person or is a director or officer of such Person. For purposes of
this definition, the term "control" (including the terms "controlling",
"controlled by" and "under common control with") of a Person means the
possession, direct or indirect, of the power to vote 5% or more of the
Voting Stock of such Person or to direct or cause the direction of the
management and policies of such Person, whether through the ownership of
Voting Stock, by contract or otherwise.
"Agent's Account" means the account of the Agent maintained by the
Agent at Citibank with its office at Xxx Xxxxx Xxx, Xxxxx 000, Xxx
Xxxxxx, Xxxxxxxx 00000, Account No. 00000000, Attention: Xxxx Xxxxxxxxx.
"Agents" means the Agent and each Co-Syndication Agent,
collectively.
"Applicable Lending Office" means, with respect to each Lender,
such Lender's Domestic Lending Office in the case of a Base Rate Advance
and such Lender's Eurodollar Lending Office in the case of a Eurodollar
Rate Advance.
"Applicable Margin" means, as of any date, (i) with respect to all
Base Rate Advances, 0.0% per annum, and (ii) with respect to all
Eurodollar Rate Advances, the percentage rate per annum which is
applicable at such time with respect to Eurodollar Rate Advances as set
forth in the Pricing Schedule.
"Applicable Percentage" means, as of any date, the percentage rate
per annum at which Facility Fees are accruing on each Lender's Commitment
(without regard to usage) at such time as set forth in the Pricing
Schedule.
"Applicable Utilization Fee Rate" means, as of any date, the
percentage rate per annum at which Utilization Fees accrue on all
Revolving Credit Advances at such time as set forth in the Pricing
Schedule.
"Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, and accepted by the
Agent, in substantially the form of Exhibit C hereto.
"Audited Statements" means the Consolidated balance sheets of the
Borrower, DECO and MichCon as at December 31, 2003, and the related
Consolidated statements of income and cash flows of the Borrower, DECO
and MichCon for the fiscal year then ended, accompanied by the opinion
thereon of the Borrower's, DECO's and MichCon's independent public
accountants.
"Base Rate" means a fluctuating interest rate per annum in effect
from time to time, which rate per annum shall at all times be equal to
the highest of:
(a) the rate of interest established by Citibank in New York,
New York, from time to time, as Citibank's base rate;
(b) the sum (adjusted 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 (i) 1/2
of 1% per annum, plus (ii) the rate obtained by dividing (A) the
latest three-week moving average of secondary market morning
offering rates in the United States for three-month certificates of
deposit of major United States money market banks, such three-week
moving average (adjusted to the basis of a year of 360 days) being
determined weekly on each Monday (or, if such day is not a Business
Day, on the next succeeding Business Day) for the three-week period
ending on the previous Friday by Citibank on the basis of such rates
reported by certificate of deposit dealers to and published by the
Federal Reserve Bank of New York or, if such publication shall be
suspended or terminated, on the basis of quotations for such rates
received by Citibank from three New York certificate of deposit
dealers of recognized standing selected by Citibank, by (B) a
percentage equal to 100% minus the average of the daily percentages
specified during such three-week period by the Board of Governors of
the Federal Reserve System (or any successor) for determining the
maximum reserve requirement (including, but not limited to, any
emergency, supplemental or other marginal reserve requirement) for
Citibank with respect to liabilities consisting of or including
(among other liabilities) three-month U.S. dollar non-personal time
deposits in the United States, plus (iii) the average during such
three-week period of the annual assessment rates estimated by
Citibank for determining the then current annual assessment payable
by Citibank to the Federal Deposit Insurance Corporation (or
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any successor) for insuring U.S. dollar deposits of Citibank in the
United States; and
(c) 1/2 of one percent per annum above the Federal Funds Rate.
"Base Rate Advance" means a Revolving Credit Advance that bears
interest as provided in Section 2.06(a)(i).
"Borrower" has the meaning specified in the recital of parties to
this Agreement.
"Borrowing" means a borrowing consisting of simultaneous Revolving
Credit Advances of the same Type and (in the case of Eurodollar Rate
Advances) having the same Interest Period, made by each of the Lenders
pursuant to Section 2.01.
"Business Day" means a day of the year on which banks are not
required or authorized by law to close in New York City or Chicago,
Illinois and, if the applicable Business Day relates to any Eurodollar
Rate Advances, on which dealings are carried on in the London interbank
market.
"Capitalization" means the sum of Consolidated Net Worth plus
Consolidated Debt.
"Commitment" has the meaning specified in Section 2.01.
"Confidential Information" means information that the Borrower
furnishes to the Agent or any Lender designated as confidential, but does
not include any such information that is or becomes generally available
to the public or that is or becomes available to the Agent or such Lender
from a source other than the Borrower.
"Consolidated" refers to the consolidation of accounts in
accordance with GAAP.
"Consolidated Net Worth" means, as of any date of determination,
the consolidated total stockholders' equity (including capital stock,
additional paid-in capital and retained earnings) of the Borrower and its
Subsidiaries determined in accordance with GAAP.
"Convert", "Conversion" and "Converted" each refers to a conversion
of Revolving Credit Advances of one Type into Revolving Credit Advances
of the other Type pursuant to Section 2.07 or 2.08.
"Debt" of any Person means, without duplication, (a) all
indebtedness of such Person for borrowed money, (b) all obligations of
such Person for the deferred purchase price of property or services
(other than trade payables not overdue by more than 60 days incurred in
the ordinary course of such Person's business), (c) all obligations of
such Person evidenced by notes, bonds, debentures or other similar
instruments, (d) all obligations of such Person created or arising under
any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of
the seller or lender under such agreement in the event of default
3
are limited to repossession or sale of such property), (e) all obligations
of such Person as lessee under leases that have been or should be, in
accordance with GAAP, recorded as capital leases, (f) all obligations,
contingent or otherwise, of such Person in respect of acceptances, letters
of credit or similar extensions of credit, (g) all obligations of such
Person in respect of Hedge Agreements, (h) all Debt of others referred to
in clauses (a) through (g) above or clause (i) below guaranteed directly
or indirectly in any manner by such Person, or in effect guaranteed
directly or indirectly by such Person through an agreement (1) to pay or
purchase such Debt or to advance or supply funds for the payment or
purchase of such Debt, (2) to purchase, sell or lease (as lessee or
lessor) property, or to purchase or sell services, primarily for the
purpose of enabling the debtor to make payment of such Debt or to assure
the holder of such Debt against loss, (3) to supply funds to or in any
other manner invest in the debtor (including any agreement to pay for
property or services irrespective of whether such property is received or
such services are rendered) or (4) otherwise to assure a creditor against
loss, and (i) all Debt referred to in clauses (a) through (h) above
secured by (or for which the holder of such Debt has an existing right,
contingent or otherwise, to be secured by) any Lien on property
(including, without limitation, accounts and contract rights) owned by
such Person, even though such Person has not assumed or become liable for
the payment of such Debt. See the definition of "Nonrecourse Debt" below.
"DECO" means The Detroit Edison Company, a Michigan corporation
wholly owned by the Borrower.
"Default" means any Event of Default or any event that would
constitute an Event of Default but for the requirement that notice be
given or time elapse or both.
"Designating Lender" has the meaning specified in Section 8.07(h).
"Disclosed Litigation" has the meaning specified in Section
4.01(f).
"Domestic Lending Office" means, with respect to any Lender, the
office of such Lender specified as its "Domestic Lending Office" opposite
its name on Schedule I hereto or in the Assignment and Acceptance
pursuant to which it became a Lender, or such other office of such Lender
as such Lender may from time to time specify to the Borrower and the
Agent.
"EBITDA" means, for any period, net income (or net loss) plus the
sum of (a) interest expense, (b) income tax expense, (c) depreciation
expense and (d) amortization expense, in each case determined in
accordance with GAAP for such period less the aggregate amount, if any,
of securitization bond charges (or similar charges imposed on customers
for the purpose of servicing Securitization Bonds) collected by or on
behalf of a Securitization SPE, to the extent such charges are included
in the calculation of net income (or net loss).
"Effective Date" has the meaning specified in Section 3.01.
4
"Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a
Lender; (iii) a commercial bank organized under the laws of the United
States, or any State thereof, and having a combined capital and surplus
of at least $250,000,000; (iv) a savings and loan association or savings
bank organized under the laws of the United States, or any State thereof,
and having a combined capital and surplus of at least $250,000,000; (v) a
commercial bank organized under the laws of any other country that is a
member of the Organization for Economic Cooperation and Development or
has concluded special lending arrangements with the International
Monetary Fund associated with its General Arrangements to Borrow, or a
political subdivision of any such country, and having a combined capital
and surplus of at least $250,000,000, so long as such bank is acting
through a branch or agency located in the United States; (vi) the central
bank of any country that is a member of the Organization for Economic
Cooperation and Development; (vii) a finance company, insurance company
or other financial institution or fund (whether a corporation,
partnership, trust or other entity) that is engaged in making, purchasing
or otherwise investing in commercial loans in the ordinary course of its
business and having a combined capital and surplus of at least
$250,000,000; and (viii) any other Person approved by the Agent and, so
long as no Event of Default shall be continuing, the Borrower, such
approval not to be unreasonably withheld or delayed by either party;
provided, however, that neither the Borrower nor an Affiliate of the
Borrower shall qualify as an Eligible Assignee.
"Enterprises" means DTE Enterprises, Inc., a Michigan corporation
wholly-owned by the Borrower.
"Environmental Action" means any action, suit, demand, demand
letter, claim, notice of non-compliance or violation, notice of liability
or potential liability, investigation, proceeding, consent order or
consent agreement relating in any way to any Environmental Law,
Environmental Permit or Hazardous Materials or arising from alleged
injury or threat of injury to the environment, including, without
limitation, (a) by any governmental or regulatory authority for
enforcement, cleanup, removal, response, remedial or other actions or
damages and (b) by any governmental or regulatory authority or any third
party for damages, contribution, indemnification, cost recovery,
compensation or injunctive relief.
"Environmental Law" means any federal, state, local or foreign
statute, law, ordinance, rule, regulation, code, order, judgment, decree
or judicial or agency interpretation, policy or guidance relating to
pollution or protection of the environment or natural resources,
including, without limitation, those relating to the use, handling,
transportation, treatment, storage, disposal, release or discharge of
Hazardous Materials.
"Environmental Permit" means any permit, approval, identification
number, license or other authorization required under any Environmental
Law.
"ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time, and the regulations promulgated and rulings
issued thereunder.
5
"ERISA Affiliate" means any Person that for purposes of Title IV of
ERISA is a member of the Borrower's controlled group, or under common
control with the Borrower, within the meaning of Section 414 of the
Internal Revenue Code.
"ERISA Event" means (a) (i) the occurrence of a reportable event,
within the meaning of Section 4043 of ERISA, with respect to any Plan
unless the 30-day notice requirement with respect to such event has been
waived by the PBGC, or (ii) the requirements of subsection (1) of Section
4043(b) of ERISA (without regard to subsection (2) of such Section) are
met with respect to a contributing sponsor, as defined in Section
4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9),
(10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably
expected to occur with respect to such Plan within the following 30 days;
(b) the application for a minimum funding waiver with respect to a Plan;
(c) the provision by the administrator of any Plan of a notice of intent
to terminate such Plan pursuant to Section 4041(a)(2) of ERISA (including
any such notice with respect to a plan amendment referred to in
Section 4041(e) of ERISA); (d) the cessation of operations at a facility
of the Borrower or any ERISA Affiliate in the circumstances described in
Section 4062(e) of ERISA; (e) the withdrawal by the Borrower or any ERISA
Affiliate from a Multiple Employer Plan during a plan year for which it
was a substantial employer, as defined in Section 4001(a)(2) of ERISA;
(f) the conditions for the imposition of a lien under Section 302(f) of
ERISA shall have been met with respect to any Plan; (g) the adoption of
an amendment to a Plan requiring the provision of security to such Plan
pursuant to Section 307 of ERISA; or (h) the institution by the PBGC of
proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the
occurrence of any event or condition described in Section 4042 of ERISA
that constitutes grounds for the termination of, or the appointment of a
trustee to administer, a Plan.
"Eurocurrency Liabilities" has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as
in effect from time to time.
"Eurodollar Lending Office" means, with respect to any Lender, the
office of such Lender specified as its "Eurodollar Lending Office"
opposite its name on Schedule I hereto or in the Assignment and
Acceptance pursuant to which it became a Lender (or, if no such office is
specified, its Domestic Lending Office), or such other office of such
Lender as such Lender may from time to time specify to the Borrower and
the Agent.
"Eurodollar Rate" means, for any Interest Period for each
Eurodollar Rate Advance comprising part of the same Borrowing, an
interest rate per annum equal to the rate per annum obtained by dividing
(a) the rate appearing on Page 3750 of the Dow Xxxxx Market Service
("Service") (or on any successor or substitute page of such Service, or
any successor to or substitute for such Service, providing rate
quotations comparable to those currently provided on such page of such
Service, as determined by the Agent after consultation with the Borrower
from time to time for purposes of providing quotations of interest rates
applicable to U.S. dollar deposits in the London interbank market) at
approximately 11:00 A.M. (London time) two Business Days prior to the
commencement of such Interest Period, as the rate for U.S. dollar
deposits with a maturity comparable to such Interest Period, or in the
event that such rate is not available
6
at such time for any reason, the average (rounded upward to the nearest
whole multiple of 1/16 of 1% per annum, if such average is not such a
multiple) of the rate per annum at which deposits in U.S. dollars are
offered by the principal office of each of the Reference Banks in London,
England to prime banks in the London interbank market at 11:00 A.M.
(London time) two Business Days before the first day of such Interest
Period in an amount approximately equal to such Reference Bank's
Eurodollar Rate Advance comprising part of such Borrowing to be
outstanding during such Interest Period and for a period equal to such
Interest Period, by (b) a percentage equal to 100% minus the Eurodollar
Rate Reserve Percentage for such Interest Period, subject, however, to the
provisions of Section 2.07.
"Eurodollar Rate Advance" means a Revolving Credit Advance that
bears interest as provided in Section 2.06(a)(ii).
"Eurodollar Rate Reserve Percentage" for any Interest Period for
all Eurodollar Rate Advances comprising part of the same Borrowing means
the reserve percentage applicable two Business Days before the first day
of such Interest Period under regulations issued from time to time by the
Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including, without
limitation, any emergency, supplemental or other marginal reserve
requirement) for a member bank of the Federal Reserve System in New York
City with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities (or with respect to any other category of
liabilities that includes deposits by reference to which the interest
rate on Eurodollar Rate Advances is determined) having a term equal to
such Interest Period.
"Events of Default" has the meaning specified in Section 6.01.
"Excluded Hedging Debt" means all Debt arising under any Hedge
Agreement in respect of fluctuations in commodity prices.
"Existing Credit Agreement" means that certain 364-Day Credit
Agreement, dated as of October 24, 2003, among the Borrower, the lenders
parties thereto, Citibank, N.A., as administrative agent, and X.X. Xxxxxx
Securities Inc. (as successor by merger to Banc One Capital Markets,
Inc.) and Barclays Bank PLC, as co-syndication agents, as the same has
been amended, restated, supplemented or otherwise modified from time to
time.
"Facility Fee" has the meaning specified in Section 2.03(a).
"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 that 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.
7
"Financial Officer" of any Person means the chief executive
officer, president, chief financial officer, any vice president,
controller, assistant controller, treasurer or any assistant treasurer of
such Person.
"GAAP" has the meaning specified in Section 1.03.
"Hazardous Materials" means (a) petroleum and petroleum products,
by-products or breakdown products, radioactive materials,
asbestos-containing materials, polychlorinated biphenyls and radon gas
and (b) any other chemicals, materials or substances designated,
classified or regulated as hazardous or toxic or as a pollutant or
contaminant under any Environmental Law.
"Hedge Agreements" means interest rate swap, cap or collar
agreements, interest rate future or option contracts, currency swap
agreements, currency future or option contracts and other similar
agreements.
"Identified Reports on Form 8-K" means those certain reports of the
Borrower, DECO and MichCon on Form 8-K filed or furnished with the
Securities and Exchange Commission on (a) July 28, July 29, July 30 and
September 23, 2004 with respect to the Borrower, (b) July 28, July 29 and
July 30, 2004 with respect to DECO, and (c) July 28, July 29, July 30,
September 23, and September 27, 2004 with respect to MichCon.
"Insufficiency" means, with respect to any Plan, the amount, if
any, of its unfunded benefit liabilities, as defined in
Section 4001(a)(18) of ERISA.
"Interest Period" means, for each Eurodollar Rate Advance
comprising part of the same Borrowing, the period commencing on the date
of such Eurodollar Rate Advance or the date of the Conversion of any Base
Rate Advance into such Eurodollar Rate Advance and ending on the last day
of the period selected by the Borrower pursuant to the provisions below
and, thereafter, with respect to Eurodollar Rate Advances, each
subsequent period commencing on the last day of the immediately preceding
Interest Period and ending on the last day of the period selected by the
Borrower pursuant to the provisions below. The duration of each such
Interest Period shall be one, two, three or six months, as the Borrower
may, upon notice received by the Agent not later than 11:00 A.M.
(New York City time) on the third Business Day prior to the first day of
such Interest Period, select; provided, however, that:
(i) the Borrower may not select any Interest Period that ends
after the Revolver Termination Date then in effect;
(ii) Interest Periods commencing on the same date for
Eurodollar Rate Advances comprising part of the same Borrowing shall
be of the same duration;
(iii) whenever the last day of any Interest Period would
otherwise occur on a day other than a Business Day, the last day of
such Interest Period shall be extended to occur on the next
succeeding Business Day, provided, however, that, if such extension
would cause the last day of such Interest Period to occur in the
8
next following calendar month, the last day of such Interest Period
shall occur on the next preceding Business Day; and
(iv) whenever the first day of any Interest Period occurs on a
day of an initial calendar month for which there is no numerically
corresponding day in the calendar month that succeeds such initial
calendar month by the number of months equal to the number of months
in such Interest Period, such Interest Period shall end on the last
Business Day of such succeeding calendar month.
"Internal Revenue Code" means the Internal Revenue Code of 1986, as
amended from time to time, and the regulations promulgated and rulings
issued thereunder.
"Junior Subordinated Debt" means (a) subordinated junior deferrable
interest debentures of the Borrower, DECO, Enterprises or MichCon, (b)
the related preferred securities, if applicable, of Subsidiaries of the
Borrower and (c) the related subordinated guarantees, if applicable, of
the Borrower, DECO, Enterprises or MichCon, in each case, from time to
time outstanding.
"Lenders" means the Initial Lenders and each Person that shall
become a party hereto pursuant to Section 8.07(a), (b) and (c).
"Lien" means any lien, security interest or other charge or
encumbrance of any kind, or any other type of preferential arrangement,
including, without limitation, the lien or retained security title of a
conditional vendor and any easement, right of way or other encumbrance on
title to real property.
"Loan Documents" means this Agreement and the Notes.
"Material Adverse Change" means any material adverse change in the
business, condition (financial or otherwise), operations, performance,
properties or prospects of the Borrower and its Subsidiaries taken as a
whole.
"Material Adverse Effect" means a material adverse effect on
(a) the business, condition (financial or otherwise), operations,
performance, properties or prospects of the Borrower and its Subsidiaries
taken as a whole, or (b) the ability of the Borrower to perform its
obligations under any Loan Document to which it is a party.
"Maximum Facility Amount" means $525,000,000.
"MichCon" means Michigan Consolidated Gas Company, a Michigan
corporation, wholly owned (indirectly) by the Borrower.
"Moody's" means Xxxxx'x Investors Service, Inc.
"Xxxxx'x Rating" is defined in the Pricing Schedule.
"Multiemployer Plan" means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate
is making or
9
accruing an obligation to make contributions, or has within any of the
preceding five plan years made or accrued an obligation to make
contributions.
"Multiple Employer Plan" means a single employer plan, as defined
in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of
the Borrower or any ERISA Affiliate and at least one Person other than
the Borrower and the ERISA Affiliates or (b) was so maintained and in
respect of which the Borrower or any ERISA Affiliate could have liability
under Section 4064 or 4069 of ERISA in the event such plan has been or
were to be terminated.
"Nonrecourse Debt" means Debt of the Borrower or any of its
Subsidiaries in respect of which no recourse may be had by the creditors
under such Debt against the Borrower or such Subsidiary in its individual
capacity or against the assets of the Borrower or such Subsidiary, other
than assets which were purchased by the Borrower or such Subsidiary with
the proceeds of such Debt; it being understood that Securitization Bonds
shall constitute Nonrecourse Debt for all purposes of the Loan Documents,
except to the extent (and only to the extent) of any claims made against
DECO in respect of its indemnification obligations relating to such
Securitization Bonds.
"Note" has the meaning specified in Section 2.17.
"Notice of Borrowing" has the meaning specified in Section 2.02(a).
"PBGC" means the Pension Benefit Guaranty Corporation (or any
successor).
"Person" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association,
joint venture, limited liability company or other entity, or a government
or any political subdivision or agency thereof.
"Plan" means a Single Employer Plan or a Multiple Employer Plan.
"Pricing Schedule" means the Pricing Schedule identifying the
Applicable Margin, the Applicable Percentage and the Applicable
Utilization Fee Rate attached hereto identified as such.
"Reference Banks" means Citibank, N.A., Barclays Bank PLC, Bank
One, NA (Main Office - Chicago) and their respective successors.
"Register" has the meaning specified in Section 8.07(d).
"Required Lenders" means at any time Lenders owed more than fifty
percent (50%) of the then aggregate unpaid principal amount of the
Revolving Credit Advances owing to Lenders, or, if no such principal
amount is then outstanding, Lenders having more than fifty percent (50%)
of the Commitments.
"Revolver Termination Date" means the earlier of (a) October 15,
2009 and (b) the date of termination in whole of the Commitments pursuant
to Section 2.04 or 6.01.
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"Revolving Credit Advance" means an advance by a Lender to the
Borrower as part of a Borrowing, and refers to a Base Rate Advance or a
Eurodollar Rate Advance (each of which shall be a "Type" of Revolving
Credit Advance).
"S&P" means Standard & Poor's Ratings Services, a division of the
XxXxxx-Xxxx Companies, Inc.
"S&P Rating" is defined in the Pricing Schedule.
"SEC Reports" means the following reports and financial statements:
(i) the Borrower's, DECO's and MichCon's Annual Reports on Form 10-K
for the year ended December 31, 2003, as filed with or sent to the
Securities and Exchange Commission, including therein the Audited
Statements of the Borrower, DECO and MichCon, respectively; and
(ii) the Borrower's, DECO's and MichCon's Quarterly Reports on Form
10-Q for the quarter ended June 30, 2004, including therein the Unaudited
Statements of the Borrower, DECO and MichCon, respectively, and the
Identified Reports on Form 8-K.
"Service" has the meaning specified in the definition of
"Eurodollar Rate".
"SPV" has the meaning specified in Section 8.07(h).
"Securitization Bonds" means Debt of one or more Securitization
SPEs, issued pursuant to The Customer Choice and Electricity Reliability
Act, Act Xx. 000, Xxxxxx Xxxx xx Xxxxxxxx, 0000, as the same may be
amended from time to time.
"Securitization SPE" means an entity established or to be
established directly or indirectly by the Borrower for the purpose of
issuing Securitization Bonds and includes The Detroit Edison
Securitization Funding LLC, a limited liability company organized under
the laws of the State of Michigan.
"Significant Subsidiary" means (i) DECO, Enterprises and MichCon,
and (ii) any other Subsidiary of the Borrower (A) the total assets (after
intercompany eliminations) of which exceed 30% of the total assets of the
Borrower and its Subsidiaries or (B) the net worth of which exceeds 30%
of the Consolidated Net Worth, in each case as shown on the audited
Consolidated financial statements of the Borrower as of the end of the
fiscal year immediately preceding the date of determination.
"Single Employer Plan" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Borrower or any ERISA Affiliate and no Person other than the Borrower and
the ERISA Affiliates or (b) was so maintained and in respect of which the
Borrower or any ERISA Affiliate could have liability under Section 4069
of ERISA in the event such plan has been or were to be terminated.
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"Subsidiary" of any Person means any corporation, partnership,
joint venture, limited liability company, trust or estate of which (or in
which) more than 50% of (a) the issued and outstanding capital stock
having ordinary voting power to elect a majority of the Board of
Directors of such corporation (irrespective of whether at the time
capital stock of any other class or classes of such corporation shall or
might have voting power upon the occurrence of any contingency), (b) the
interest in the capital or profits of such limited liability company,
partnership or joint venture or (c) the beneficial interest in such trust
or estate is at the time directly owned or controlled by such Person, by
such Person and one or more of its other Subsidiaries or by one or more
of such Person's other Subsidiaries.
"Three-Year Agreement" means that certain Three-Year Credit
Agreement dated as of October 24, 2003, by and among the Borrower, the
lenders party thereto and the Agents, as the same may be amended,
restated, supplemented or otherwise modified from time to time.
"Unaudited Statements" means the unaudited condensed Consolidated
balance sheets of the Borrower, DECO and MichCon, as at June 30, 2004,
and the related condensed Consolidated statements of income and cash
flows of the Borrower, DECO and MichCon for the six-month period then
ended.
"Utilization Fee" has the meaning specified in Section 2.03(c).
"Voting Stock" means capital stock issued by a corporation, or
equivalent interests in any other Person, the holders of which are
ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or persons performing similar functions) of such
Person, even if the right so to vote has been suspended by the happening
of such a contingency.
"Withdrawal Liability" has the meaning specified in Part I of
Subtitle E of Title IV of ERISA.
SECTION 1.02. Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding".
SECTION 1.03. Accounting Terms. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles consistent with those applied in the preparation
of the financial statements referred to in Section 4.01(e) ("GAAP").
SECTION 1.04. Status Under Three-Year Agreement. This Agreement
shall constitute an amendment and restatement of the "364-Day Agreement" (as
defined in the Three-Year Agreement) for purposes of the Three-Year Agreement.
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ARTICLE II: AMOUNTS AND TERMS OF THE REVOLVING CREDIT ADVANCES
SECTION 2.01. The Revolving Credit Advances. Each Lender severally
agrees, on the terms and conditions hereinafter set forth, to make Revolving
Credit Advances to the Borrower from time to time on any Business Day during the
period from the Effective Date until the Revolver Termination Date in an
aggregate amount not to exceed at any time outstanding the amount set forth
opposite such Lender's name on Schedule I hereto or, if such Lender has entered
into any Assignment and Acceptance, set forth for such Lender in the Register
maintained by the Agent pursuant to Section 8.07(d), as such amount may be
reduced pursuant to Section 2.04 (such Lender's "Commitment"). Each Borrowing
shall be in an aggregate amount of $5,000,000 or an integral multiple of
$1,000,000 in excess thereof and shall consist of Revolving Credit Advances of
the same Type made on the same day by the Lenders ratably according to their
respective Commitments. Within the limits of each Lender's Commitment, the
Borrower may borrow under this Section 2.01, prepay pursuant to Section 2.09 and
reborrow under this Section 2.01.
SECTION 2.02. Making the Revolving Credit Advances. (a)Each
Borrowing shall be made on notice, given not later than 11:00 A.M. (New York
City time) on the third Business Day prior to the date of the proposed Borrowing
in the case of a Borrowing consisting of Eurodollar Rate Advances, or 10:00 A.M.
(New York City time) on the Business Day of the proposed Borrowing in the case
of a Borrowing consisting of Base Rate Advances, by the Borrower to the Agent,
which shall give to each Lender prompt notice thereof by telecopier or telex.
Each such notice of a Borrowing (a "Notice of Borrowing") shall be by telephone,
confirmed immediately in writing signed by a Financial Officer in substantially
the form of Exhibit B hereto, specifying therein the requested (i) date of such
Borrowing, (ii) Type of Revolving Credit Advances comprising such Borrowing,
(iii) aggregate amount of such Borrowing, (iv) in the case of a Borrowing
consisting of Eurodollar Rate Advances, initial Interest Period for each such
Revolving Credit Advance and (v) wire transfer instructions. Each Lender shall,
before 12:00 noon (New York City time) on the date of such Borrowing, make
available for the account of its Applicable Lending Office to the Agent at the
Agent's Account, in same day funds, such Lender's ratable portion of such
Borrowing. After the Agent's receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Agent will make such funds
available to the Borrower as specified in the Notice of Borrowing.
(b) Anything in subsection (a) above to the contrary notwithstanding, (i)
the Borrower may not select Eurodollar Rate Advances for any Borrowing if the
aggregate amount of such Borrowing is less than $5,000,000 or if the obligation
of the Lenders to make Eurodollar Rate Advances shall then be suspended pursuant
to Section 2.07 or 2.11 and (ii) at no time shall the sum of (x) all Borrowings
comprising Eurodollar Rate Advances outstanding hereunder and (y) all
"Borrowings" comprising "Eurodollar Rate Advances" outstanding under, and as
such terms are defined in, the Three-Year Agreement, be greater than ten.
(c) Each Notice of Borrowing shall be irrevocable and binding on the
Borrower. In the case of any Borrowing that the related Notice of Borrowing
specifies is to be comprised of Eurodollar Rate Advances, the Borrower shall
indemnify each Lender against any loss, cost or expense incurred by such Lender
as a result of any failure to fulfill on or before the date specified in such
Notice of Borrowing for such Borrowing the applicable conditions set forth in
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Article III, including, without limitation, any loss (excluding loss of
anticipated profits), cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to fund the
Revolving Credit Advance to be made by such Lender as part of such Borrowing
when such Revolving Credit Advance, as a result of such failure, is not made on
such date.
(d) Unless the Agent shall have received notice from a Lender prior to the
time of any Borrowing that such Lender will not make available to the Agent such
Lender's ratable portion of such Borrowing, the Agent may assume that such
Lender has made such portion available to the Agent on the date of such
Borrowing in accordance with subsection (a) of this Section 2.02 and the Agent
may, in reliance upon such assumption, make available to the Borrower on such
date a corresponding amount. If and to the extent that such Lender shall not
have so made such ratable portion available to the Agent, such Lender and the
Borrower severally agree to repay to the Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to the Borrower until the date such amount is
repaid to the Agent, at (i) in the case of the Borrower, the interest rate
applicable at the time to Revolving Credit Advances comprising such Borrowing
and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender
shall repay to the Agent such corresponding amount, such amount so repaid shall
constitute such Lender's Revolving Credit Advance as part of such Borrowing for
purposes of this Agreement.
(e) The failure of any Lender to make the Revolving Credit Advance to be
made by it as part of any Borrowing shall not relieve any other Lender of its
obligation, if any, hereunder to make its Revolving Credit Advance on the date
of such Borrowing, but no Lender shall be responsible for the failure of any
other Lender to make the Revolving Credit Advance to be made by such other
Lender on the date of any Borrowing.
SECTION 2.03. Fees. (a) Facility Fee. The Borrower agrees to pay to
the Agent for the account of each Lender a facility fee (the "Facility Fee") on
the aggregate amount of such Lender's Commitment from the date hereof in the
case of each Initial Lender and from effective date specified in the Assignment
and Acceptance pursuant to which it became a Lender in the case of each other
Lender until all of the Revolving Credit Advances have been paid in full and the
Commitments under this Agreement have been terminated at a rate per annum equal
to the Applicable Percentage in effect from time to time, payable in arrears
quarterly on the last day of each March, June, September and December, and on
the Revolver Termination Date.
(b) Agent's Fees. The Borrower shall pay to the Agent for its own account
such fees as may from time to time be agreed between the Borrower and the Agent.
(c) Utilization Fee. If the aggregate outstanding amount of (i) all
Revolving Credit Advances hereunder and (ii) the "Aggregate Outstanding Credit
Exposure" under (and as defined in) the Three-Year Agreement exceeds thirty-
three percent (33%) of the aggregate amount of (x) all Commitments hereunder and
(y) all "Commitments" under (and as defined in) the Three-Year Agreement then in
effect on such date (or, if any of the Commitments or "Commitments" have been
terminated, the aggregate amount of all Commitments and "Commitments" in effect
immediately prior to such termination), the Borrower will pay to the Agent for
the ratable benefit of the Lenders a utilization fee (the "Utilization Fee") at
a per annum rate equal to the Applicable
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Utilization Fee Rate in effect from time to time payable on the aggregate
outstanding amount of all Revolving Credit Advances on such date, payable in
arrears quarterly on the last day of each March, June, September and December,
and on the Revolver Termination Date.
SECTION 2.04. Termination or Reduction of the Commitments. (a)The
Commitments shall be automatically terminated on the Revolver Termination Date.
(b) The Borrower shall have the right, upon at least three Business
Days' notice to the Agent, to terminate in whole or reduce ratably in part the
unused portions of the respective Commitments of the Lenders, provided that
each partial reduction shall be in the aggregate amount of $5,000,000 or an
integral multiple of $1,000,000 in excess thereof. Once terminated, a
Commitment or portion thereof may not be reinstated.
SECTION 2.05. Repayment of Revolving Credit Advances. The Borrower
shall repay to the Agent for the ratable account of the Lenders on the Revolver
Termination Date the aggregate principal amount of the Revolving Credit Advances
then outstanding.
SECTION 2.06. Interest on Revolving Credit Advances. (a) Scheduled
Interest. The Borrower shall pay interest on the unpaid principal amount of each
Revolving Credit Advance owing to each Lender from the date of such Revolving
Credit Advance until such principal amount shall be paid in full, at the
following rates per annum:
(i) Base Rate Advances. During such periods as such Revolving Credit
Advance is a Base Rate Advance, a rate per annum equal at all times to the
sum of (x) the Base Rate in effect from time to time plus (y) the
Applicable Margin in effect from time to time, payable in arrears
quarterly on the last day of each March, June, September and December
during such periods and on the date such Base Rate Advance shall be
Converted or paid in full.
(ii) Eurodollar Rate Advances. During such periods as such Revolving
Credit Advance is a Eurodollar Rate Advance, a rate per annum equal at all
times during each Interest Period for such Revolving Credit Advance to the
sum of (x) the Eurodollar Rate for such Interest Period for such Revolving
Credit Advance plus (y) the Applicable Margin in effect from time to time,
payable in arrears on the last day of such Interest Period and, if such
Interest Period has a duration of more than three months, on each day that
occurs during such Interest Period every three months from the first day
of such Interest Period and on the date such Eurodollar Rate Advance shall
be Converted or paid in full.
(b) Default Interest. (i) Upon the occurrence and during the continuance
of an Event of Default, the Borrower shall pay interest on the unpaid principal
amount of each Revolving Credit Advance owing to each Lender, payable in arrears
on the dates referred to in clause (a)(i) or (a)(ii) above, at a rate per annum
equal at all times to 2% per annum above the rate per annum required to be paid
on such Revolving Credit Advance pursuant to clause (a)(i) or (a)(ii) above, and
(ii) the Borrower shall pay, to the fullest extent permitted by law, the amount
of any interest, fee or other amount payable hereunder that is not paid when
due, from the date such amount shall be due until such amount shall be paid in
full, payable in arrears on the date such amount
15
shall be paid in full and on demand, at a rate per annum equal at all times to
2% per annum above the rate per annum required to be paid on Base Rate Advances
pursuant to clause (a)(i) above.
SECTION 2.07. Interest Rate Determination. (a) If applicable, each
Reference Bank agrees to furnish to the Agent timely information for the purpose
of determining each Eurodollar Rate. If any one or more of the Reference Banks
shall not furnish such timely information to the Agent for the purpose of
determining any such interest rate, the Agent shall determine such interest rate
on the basis of timely information furnished by the remaining Reference Banks.
The Agent shall give prompt notice to the Borrower and the Lenders of the
applicable interest rate determined by the Agent for purposes of Section
2.06(a)(i) or (ii), and the rate, if any, furnished by each Reference Bank for
the purpose of determining the interest rate under Section 2.06(a)(ii).
(b) If, with respect to any Eurodollar Rate Advances, the Required Lenders
notify the Agent that the Eurodollar Rate for any Interest Period for such
Eurodollar Rate Advances will not adequately reflect the cost to such Required
Lenders of making, funding or maintaining their respective Eurodollar Rate
Advances for such Interest Period, the Agent shall forthwith so notify the
Borrower and the Lenders, whereupon (i) each Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance, and (ii) the obligation of the Lenders to
make, or to Convert Revolving Credit Advances into, Eurodollar Rate Advances
shall be suspended until the Agent shall notify the Borrower and the Lenders
that the circumstances causing such suspension no longer exist.
(c) If the Borrower shall fail to select the duration of any Interest
Period for any Eurodollar Rate Advances in accordance with the provisions
contained in the definition of "Interest Period" in Section 1.01, the Agent will
forthwith so notify the Borrower and the Lenders and such Eurodollar Rate
Advances will automatically, on the last day of the then existing Interest
Period therefor, Convert into Base Rate Advances.
(d) On the date on which the aggregate unpaid principal amount of
Eurodollar Rate Advances comprising any Borrowing shall be reduced, by payment
or prepayment or otherwise, to less than $5,000,000, such Eurodollar Rate
Advances shall automatically Convert into Base Rate Advances.
(e) Upon the occurrence and during the continuance of any Event of
Default, (i) each Eurodollar Rate Advance will automatically, on the last day of
the then existing Interest Period therefor, Convert into a Base Rate Advance and
(ii) the obligation of the Lenders to make, or to Convert Revolving Credit
Advances into, Eurodollar Rate Advances shall be suspended.
(f) If the Service is not available or a rate does not timely appear on
the Service and fewer than two Reference Banks furnish timely information to the
Agent for determining the Eurodollar Rate for any Eurodollar Rate Advances:
(i) the Agent shall forthwith notify the Borrower and the Lenders
that the interest rate cannot be determined for such Eurodollar Rate
Advances,
16
(ii) with respect to Eurodollar Rate Advances, each such Eurodollar
Rate Advance will automatically, on the last day of the then existing
Interest Period therefor, Convert into a Base Rate Advance (or if such
Advance is then a Base Rate Advance, will continue as a Base Rate
Advance), and
(iii) the obligation of the Lenders to make Eurodollar Rate Advances
or to Convert Revolving Credit Advances into Eurodollar Rate Advances
shall be suspended until the Agent shall notify the Borrower and the
Lenders that the circumstances causing such suspension no longer exist.
SECTION 2.08. Optional Conversion of Revolving Credit Advances. The
Borrower may on any Business Day, upon notice given to the Agent not later than
11:00 A.M. (New York City time) on the third Business Day prior to the date of
the proposed Conversion and subject to the provisions of Sections 2.07 and 2.11,
Convert all Revolving Credit Advances of one Type comprising the same Borrowing
into Revolving Credit Advances of the other Type (it being understood that such
Conversion of a Revolving Credit Advance or of its Interest Period does not
constitute a repayment or prepayment of such Revolving Credit Advance);
provided, however, that any Conversion of Eurodollar Rate Advances into Base
Rate Advances shall be made only on the last day of an Interest Period for such
Eurodollar Rate Advances, any Conversion of Base Rate Advances into Eurodollar
Rate Advances shall be in an amount not less than the minimum amount specified
in Section 2.02(b) and no Conversion of any Revolving Credit Advances shall
result in more separate Borrowings than permitted under Section 2.02(b). Each
such notice of a Conversion shall, within the restrictions specified above,
specify (i) the date of such Conversion, (ii) the Revolving Credit Advances to
be Converted, and (iii) if such Conversion is into Eurodollar Rate Advances, the
duration of the initial Interest Period for each such Eurodollar Rate Advance.
Each notice of Conversion shall be irrevocable and binding on the Borrower.
SECTION 2.09. Prepayments of Revolving Credit Advances. (a) Optional
Prepayment. The Borrower may on any Business Day, upon notice given to the Agent
not later than 11:00 A.M. (New York City time), (i) on the same day for Base
Rate Advances and (ii) on the second Business Day prior to the prepayment in the
case of Eurodollar Rate Advances stating the proposed date and aggregate
principal amount of the prepayment (and if such notice is given the Borrower
shall) prepay the outstanding principal amount of the Revolving Credit Advances
comprising part of the same Borrowing in whole or ratably in part, together with
accrued interest to the date of such prepayment on the principal amount prepaid;
provided, however, that (x) each partial prepayment shall be in an aggregate
principal amount of $5,000,000 or an integral multiple of $1,000,000 in excess
thereof and (y) in the event of any such prepayment of a Eurodollar Rate
Advance, the Borrower shall be obligated to reimburse the Lenders in respect
thereof pursuant to Section 8.04(c).
(b) Mandatory Prepayment. The Borrower shall, upon five Business Days
notice from the Agent given at the request or with the consent of the Required
Lenders, prepay the aggregate principal amount outstanding plus all interest
thereon and all other amounts payable hereunder or under the Notes, in the event
that any Person or two or more Persons acting in concert shall have acquired
beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
Exchange Commission under the Securities Exchange Act of 1934), directly or
17
indirectly, of Voting Stock of the Borrower (or other securities convertible
into such Voting Stock) representing 30% or more of the combined voting power of
all Voting Stock of the Borrower.
SECTION 2.10. Increased Costs. (a) If, due to either (i) the
introduction of or any change in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request from any central
bank or other governmental authority (whether or not having the force of law),
there shall be any increase in the cost to any Lender of agreeing to make or
making, funding or maintaining Eurodollar Rate Advances (excluding for purposes
of this Section 2.10 any such increased costs resulting from taxes (as to which
Section 2.13 shall govern), then the Borrower shall from time to time, upon
demand by such Lender (with a copy of such demand to the Agent), pay to the
Agent for the account of such Lender additional amounts sufficient to compensate
such Lender for such increased cost. A certificate as to the amount of such
increased cost, submitted to the Borrower and the Agent by such Lender, shall be
conclusive and binding for all purposes, absent manifest error.
(b) If any Lender determines that compliance with any law or regulation or
any guideline or request from any central bank or other governmental authority
(whether or not having the force of law) affects or would affect the amount of
capital required or expected to be maintained by such Lender or any corporation
controlling such Lender and that the amount of such capital is increased by or
based upon the existence of such Lender's commitment to lend hereunder and other
commitments of this type, then, upon demand by such Lender (with a copy of such
demand to the Agent), the Borrower shall pay to the Agent for the account of
such Lender, from time to time as specified by such Lender, additional amounts
sufficient to compensate such Lender or such corporation in the light of such
circumstances, to the extent that such Lender reasonably determines such
increase in capital to be allocable to the existence of such Lender's commitment
to lend hereunder. A certificate as to such amounts submitted to the Borrower
and the Agent by such Lender shall be conclusive and binding for all purposes,
absent manifest error.
(c) In the event that a Lender demands payment from the Borrower for
amounts owing pursuant to subsection (a) or (b) of this Section 2.10, the
Borrower may, upon payment of such amounts and subject to the requirements of
Sections 8.04 and 8.07, substitute for such Lender another financial
institution, which financial institution shall be an Eligible Assignee and shall
assume the Commitments of such Lender and purchase the Revolving Credit Advances
held by such Lender in accordance with Section 8.07, provided, however, that (i)
no Default shall have occurred and be continuing, (ii) the Borrower shall have
satisfied all of its obligations in connection with the Loan Documents with
respect to such Lender, and (iii) if such assignee is not a Lender, (A) such
assignee is acceptable to the Agent and (B) the Borrower shall have paid the
Agent a $3,000 administrative fee.
SECTION 2.11. Illegality. Notwithstanding any other provision of
this Agreement, if any Lender shall notify the Agent that the introduction of or
any change in or in the interpretation of any law or regulation makes it
unlawful, or any central bank or other governmental authority asserts that it is
unlawful, for any Lender or its Eurodollar Lending Office to perform its
obligations hereunder to make Eurodollar Rate Advances or to fund or maintain
Eurodollar Rate Advances hereunder, (i) each Eurodollar Rate Advance will
18
automatically, upon such demand, Convert into a Base Rate Advance or a Revolving
Credit Advance that bears interest at the rate set forth in Section 2.06(a)(i),
as the case may be, and (ii) the obligation of the Lenders to make Eurodollar
Rate Advances or to Convert Revolving Credit Advances into Eurodollar Rate
Advances shall be suspended until the Agent shall notify the Borrower and the
Lenders that the circumstances causing such suspension no longer exist.
SECTION 2.12. Payments and Computations. (a) The Borrower shall make
each payment hereunder and under the Notes not later than 11:00 A.M. (New York
City time) on the day when due in U.S. dollars to the Agent at the Agent's
Account in same day funds and without set off, deduction or counterclaim other
than deductions on account of taxes. The Agent will promptly thereafter cause to
be distributed like funds relating to the payment of principal or interest,
Facility Fees or the Utilization Fee ratably (other than amounts payable
pursuant to Section 2.10, 2.13 or 8.04(c)) to the Lenders for the account of
their respective Applicable Lending Offices, and like funds relating to the
payment of any other amount payable to any Lender to such Lender for the account
of its Applicable Lending Office, in each case to be applied in accordance with
the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance
and recording of the information contained therein in the Register pursuant to
Section 8.07(c), from and after the effective date specified in such Assignment
and Acceptance, the Agent shall make all payments hereunder and under the Notes
in respect of the interest assigned thereby to the Lender assignee thereunder,
and the parties to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective date directly
between themselves.
(b) The Borrower hereby authorizes each Lender, if and to the extent
payment owed to such Lender is not made when due hereunder or under the Note
held by such Lender, to charge from time to time against any or all of the
Borrower's accounts with such Lender any amount so due.
(c) All computations of interest based on the Base Rate shall be made by
the Agent on the basis of a year of 365 or 366 days, as the case may be, and all
computations of interest based on the Eurodollar Rate or the Federal Funds Rate
and of the Facility Fees and the Utilization Fee shall be made by the Agent on
the basis of a year of 360 days, in each case for the actual number of days
(including the first day but excluding the last day) occurring in the period for
which such interest, Facility Fees or Utilization Fee are payable. Each
determination by the Agent of an interest rate hereunder shall be conclusive and
binding for all purposes, absent manifest error.
(d) Whenever any payment hereunder or under the Notes shall be stated to
be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest, Facility Fee or the
Utilization Fee, as the case may be; provided, however, that, if such extension
would cause payment of interest on or principal of Eurodollar Rate Advances to
be made in the next following calendar month, such payment shall be made on the
next preceding Business Day.
(e) Unless the Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Lenders hereunder that the Borrower
will not make such
19
payment in full, the Agent may assume that the Borrower has made such payment in
full to the Agent on such date and the Agent may, in reliance upon such
assumption, cause to be distributed to each Lender on such due date an amount
equal to the amount then due such Lender. If and to the extent the Borrower
shall not have so made such payment in full to the Agent, each Lender shall
repay to the Agent forthwith on demand such amount distributed to such Lender
together with interest thereon, for each day from the date such amount is
distributed to such Lender until the date such Lender repays such amount to the
Agent, at the Federal Funds Rate.
SECTION 2.13. Taxes. (a) Subject to the exclusions set forth below
in this Section 2.13(a) and, if applicable, compliance with Section 2.13(e), any
and all payments by the Borrower hereunder or under the Notes shall be made, in
accordance with Section 2.12, free and clear of and without deduction for any
and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding, in the case
of each Lender and the Agent, any and all present or future taxes, levies,
imposts, deductions, charges or withholdings imposed on its income, and
franchise taxes imposed on it in lieu of income taxes, (i) by the jurisdiction
under the laws of which such Lender or the Agent (as the case may be) is
organized or any political subdivision thereof and (ii), in the case of each
Lender, by the jurisdiction of such Lender's Applicable Lending Office or any
political subdivision thereof (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities in respect of payments
hereunder or under the Notes being hereinafter referred to as "Taxes").
Notwithstanding the above, if the Borrower shall be required by law to deduct
any Taxes from or in respect of any sum payable hereunder or under any Note to
any Lender or the Agent, the Borrower will so deduct and (i) the sum payable
shall be increased as may be necessary so that after making all such deductions
on account of Taxes (including deductions on account of Taxes applicable to
additional sums payable under this Section 2.13) such Lender or the Agent (as
the case may be) receives an amount equal to the sum it would have received had
no such deductions been made, (ii) the Borrower shall make such deductions and
(iii) the Borrower shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law.
(b) The Borrower agrees to pay any present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies that
arise from any payment made hereunder or under the Notes or from the execution,
delivery or registration of this Agreement or the Notes (hereinafter referred to
as "Other Taxes").
(c) Without duplication of the Borrower's payment obligations on account
of Taxes or Other Taxes pursuant to Sections 2.13(a) and (b), the Borrower shall
indemnify each Lender and the Agent for the full amount of Taxes or Other Taxes
(including, without limitation, any Taxes imposed by any jurisdiction on amounts
payable under this Section 2.13) imposed on or paid by such Lender or the Agent
(as the case may be) and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto. This indemnification shall
be made within 30 days from the date such Lender or the Agent (as the case may
be) makes written demand therefor.
(d) Within 30 days after the date of any payment of Taxes, the Borrower
shall furnish to the Agent, at its address referred to in Section 8.02, the
original or a certified copy of a receipt evidencing payment thereof. In the
case of any payment hereunder or under the Notes by or on
20
behalf of the Borrower through an account or branch outside the United States or
by or on behalf of the Borrower by a payor that is not a United States person,
if the Borrower determines that no Taxes are payable in respect thereof, the
Borrower shall furnish, or shall cause such payor to furnish, to the Agent, at
such address, an opinion of counsel acceptable to the Agent stating that such
payment is exempt from Taxes. For purposes of this subsection (d) and subsection
(e), the terms "United States" and "United States person" shall have the
meanings specified in Section 7701 of the Internal Revenue Code.
(e) Each Lender organized under the laws of a jurisdiction outside the
United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Initial Lender and on the date of the Assignment
and Acceptance pursuant to which it becomes a Lender in the case of each other
Lender, and from time to time thereafter as requested in writing by the Borrower
(but only so long as such Lender remains lawfully able to do so), shall provide
each of the Agent and the Borrower with two original Internal Revenue Service
Form W-8BEN or W-8ECI, as appropriate, or any successor or other form prescribed
by the Internal Revenue Service, certifying that such Lender is exempt from
United States withholding tax on payments pursuant to this Agreement or the
Notes. If any form or document referred to in this subsection (e) requires the
disclosure of information, other than information necessary to compute the tax
payable and information required on the date hereof by Internal Revenue Service
Form W-8BEN or W-8ECI, that the Lender reasonably considers to be confidential,
the Lender shall give notice thereof to the Borrower and shall not be obligated
to include in such form or document such confidential information, however, such
a Lender will not be entitled to any payment or indemnification on account of
any Taxes imposed by the United States.
(f) Notwithstanding any provision to the contrary in this Agreement, the
Borrower will not be obligated to make payments on account of or indemnify the
Lenders or the Agents for any present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto,
or any present or future stamp or other documentary taxes or property taxes,
charges or similar levies that are neither Taxes nor Other Taxes.
(g) For any period with respect to which a Lender has failed to provide
the Borrower with the appropriate form described in Section 2.13(e) (other than
if such failure is due to a change in law occurring subsequent to the date on
which a form originally was required to be provided, or if such form otherwise
is not required under the first sentence of subsection (e) above), such Lender
shall not be entitled to indemnification under Section 2.13(a) or (c) with
respect to Taxes imposed by the United States by reason of such failure;
provided, however, that should a Lender become subject to Taxes because of its
failure to deliver a form required hereunder, the Borrower shall take such steps
as the Lender shall reasonably request to assist the Lender to recover such
Taxes.
(h) In the event that a Lender demands payment from the Borrower for
amounts owing pursuant to subsection (a) or (b) of this Section 2.13, the
Borrower may, upon payment of such amounts and subject to the requirements of
Sections 8.04 and 8.07, substitute for such Lender another financial
institution, which financial institution shall be an Eligible Assignee and shall
assume the Commitments of such Lender and purchase the Revolving Credit Advances
held by such Lender in accordance with Section 8.07, provided, however, that (i)
no Default shall have occurred and be continuing, (ii) the Borrower shall have
satisfied all of its obligations in
21
connection with the Loan Documents with respect to such Lender, and (iii) if
such assignee is not a Lender, (A) such assignee is acceptable to the Agent and
(B) the Borrower shall have paid the Agent a $3,000 administrative fee.
(i) Notwithstanding any provision to the contrary in this Agreement, in
the event that a Lender that is not an Initial Lender and who purchased its
interest in this Agreement without the consent of the Borrower pursuant to
Section 8.07(a), seeks (i) payment of additional amounts pursuant to Section
2.13(a), (ii) payment of Other Taxes pursuant to Section 2.13(b), or (iii)
indemnification for Taxes or Other Taxes pursuant to Section 2.13(c), the amount
of any such payment or indemnification will be no greater than what it would
have been had the Initial Lender not transferred, assigned or sold its interest
in this Agreement.
SECTION 2.14. Sharing of Payments, Etc. If any Lender shall obtain
any payment (whether voluntary, involuntary, through the exercise of any right
of set-off, or otherwise) on account of the Revolving Credit Advances owing to
it (other than pursuant to Section 2.10, 2.13 or 8.04(c)) in excess of its
ratable share of payments on account of the Revolving Credit Advances obtained
by all the Lenders, such Lender shall forthwith purchase from the other Lenders
such participations in the Revolving Credit Advances owing to them as shall be
necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided, however, that if all or any portion of such excess
payment is thereafter recovered from such purchasing Lender, such purchase from
each Lender shall be rescinded and such Lender shall repay to the purchasing
Lender the purchase price to the extent of such recovery together with an amount
equal to such Lender's ratable share (according to the proportion of (i) the
amount of such Lender's required repayment to (ii) the total amount so recovered
from the purchasing Lender) of any interest or other amount paid or payable by
the purchasing Lender in respect of the total amount so recovered. The Borrower
agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section 2.14 may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off) with respect
to such participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation.
SECTION 2.15. Use of Proceeds. The proceeds of the Revolving Credit
Advances shall be available (and the Borrower agrees that it shall use such
proceeds) solely for general corporate purposes, including commercial paper
liquidity, of the Borrower and its Subsidiaries.
SECTION 2.16. Reserved.
SECTION 2.17. Noteless Agreement; Evidence of Indebtedness.
(a) Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Revolving Credit Advance made by such Lender from time to
time, including the amounts of principal and interest payable and paid to such
Lender from time to time hereunder.
22
(b) The Agent shall also maintain accounts in which it will record (i) the
date and the amount of each Revolving Credit Advance made hereunder and the
Interest Period, if any, applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder, (iii) the effective date and amount of each Assignment and
Acceptance delivered to and accepted by it and the parties thereto pursuant to
Section 8.07, (iv) the amount of any sum received by the Agent hereunder from
the Borrower and each Lender's share thereof, and (v) all other appropriate
debits and credits as provided in this Agreement, including, without limitation,
all fees, charges, expenses and interest.
(c) The entries maintained in the accounts maintained pursuant to clauses
(a) and (b) above shall be prima facie evidence of the existence and amounts of
the obligations hereunder and under the Notes therein recorded; provided,
however, that the failure of the Agent or any Lender to maintain such accounts
or any error therein shall not in any manner affect the obligation of the
Borrower to repay such obligations in accordance with their terms.
(d) Any Lender may request that its Revolving Credit Advances be evidenced
by a promissory note representing its Revolving Credit Advances substantially in
the form of Exhibit A (each, a "Note"). In such event, the Borrower shall
prepare, execute and deliver to such Lender such Note payable to the order of
such Lender. Thereafter, the Revolving Credit Advances evidenced by each such
Note and interest thereon shall at all times (including after any assignment
pursuant to Section 8.07) be represented by one or more Notes payable to the
order of the payee named therein or any assignee pursuant to Section 8.07,
except to the extent that any such Lender or assignee subsequently returns any
such Note for cancellation and requests that such Revolving Credit Advances once
again be evidenced as described in clauses (a) and (b) above.
ARTICLE III: CONDITIONS TO EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to Effectiveness of this
Agreement. This Agreement shall become effective on and as of the date hereof
(the "Effective Date"), provided that the following conditions precedent have
been satisfied on such date:
(a) There shall have occurred no Material Adverse Change since June 30,
2004, except as shall have been disclosed or contemplated in the SEC Reports.
(b) The Lenders shall have been given such access, as such Lenders have
reasonably requested, to the management, records, books of account, contracts
and properties of the Borrower and its Significant Subsidiaries as they shall
have requested.
(c) All governmental and third party consents, authorizations and
approvals necessary in connection with the transactions contemplated hereby
shall have been obtained (without the imposition of any conditions that are not
acceptable to the Lenders) and shall remain in effect, and no law or regulation
shall be applicable in the reasonable judgment of the Agents that restrains,
prevents or imposes materially adverse conditions upon the transactions
contemplated by the Loan Documents.
23
(d) The Borrower shall have notified each Lender and the Agent in writing
as to the proposed Effective Date.
(e) The Borrower shall have paid all accrued fees and reasonable expenses
of the Agent and the Lenders with respect to this Agreement for which the Agent
shall have made reasonable demand in accordance with Section 8.04 on or prior to
the Effective Date.
(f) On the Effective Date, the following statements shall be true and the
Agent shall have received for the account of each Lender a certificate signed by
a duly authorized officer of the Borrower, dated the Effective Date, stating
that:
(i) The representations and warranties contained in Section 4.01 are
correct on and as of the Effective Date, and
(ii) No event has occurred and is continuing that constitutes a
Default.
(iii) The Borrower shall have delivered a certificate, substantially
in the form of Exhibit D hereto, signed on behalf of the Borrower by a
Financial Officer of the Borrower.
(g) The Agent shall have received on or before the Effective Date the
following, each dated such day, in form and substance satisfactory to the Agent
and (except for any Notes requested by the Lenders) in sufficient copies for
each Lender:
(i) Notes, if any, to the order of each Lender requesting the
issuance of a Note as of the Closing Date pursuant to Section 2.17.
(ii) Certified copies of the resolutions of the Board of Directors
of the Borrower approving each Loan Document to which it is a party, and
of all documents evidencing other necessary corporate action and
governmental approvals, if any, with respect to each Loan Document to
which it is a party.
(iii) A certificate of the Corporate Secretary or an Assistant
Corporate Secretary of the Borrower certifying the names and true
signatures of the officers of the Borrower authorized to sign each Loan
Document to which it is a party and the other documents to be delivered
hereunder or thereunder.
(iv) Copies of the Identified Reports on Form 8-K.
(v) Favorable opinion letters of X. X. Xxxxxx, the Associate General
Counsel of the Borrower and Hunton & Xxxxxxxx LLP, counsel to the
Borrower, substantially in the form of Exhibits E-1 and E-2, respectively,
hereto and as to such other matters as any Lender through the Agent may
reasonably request.
(vi) Evidence satisfactory to the Agent that all loans outstanding
and other fees and amounts owed to the lenders or agents under the
Existing Credit Agreement have been paid in full.
24
SECTION 3.02. Conditions Precedent to Each Borrowing. The obligation
of each Lender to make a Revolving Credit Advance on the occasion of each
Borrowing shall be subject to the conditions precedent that the Effective Date
shall have occurred and on the date of such Borrowing: (a) the following
statements shall be true (and each of the giving of the applicable Notice of
Borrowing and the acceptance by the Borrower of the proceeds of such Borrowing
shall constitute a representation and warranty by the Borrower that on the date
of such Borrowing such statements are true):
(i) the representations and warranties contained in Section 4.01 are
correct on and as of the date of such Borrowing, before and after giving
effect to such Borrowing and to the application of the proceeds therefrom,
as though made on and as of such date; provided, that such condition shall
not apply to the last sentence of Section 4.01(e) in connection with any
Borrowing made to pay maturing commercial paper issued under Borrower's
commercial paper program, and
(ii) no event has occurred and is continuing, or would result from
such Borrowing or from the application of the proceeds therefrom, that
constitutes a Default;
and (b) the Agent shall have received such other approvals, opinions or
documents as any Lender through the Agent may reasonably request.
SECTION 3.03. Determinations Under Section 3.01. For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Agent responsible for the transactions contemplated by this Agreement
shall have received notice from such Lender prior to the date that the Borrower,
by notice to the Lenders, designates as the proposed Effective Date, specifying
its objection thereto. The Agent shall promptly notify the Lenders of the
occurrence of the Effective Date.
ARTICLE IV: REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Borrower. The
Borrower represents and warrants as follows:
(a) The Borrower is a corporation duly organized, validly existing and in
good standing under the laws of the jurisdiction of its incorporation.
(b) The execution, delivery and performance by the Borrower of the Loan
Documents to which it is a party, and the consummation of the transactions
contemplated hereby and thereby, are within the Borrower's corporate powers,
have been duly authorized by all necessary corporate action, and do not
contravene (i) the Borrower's charter or by-laws or (ii) law or any contractual
restriction binding on or affecting the Borrower.
(c) No consent, authorization or approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body or any
other third party is required for the
25
due execution, delivery and performance by the Borrower of any Loan Document to
which it is a party.
(d) This Agreement has been, and each of the Notes when delivered
hereunder will have been, duly executed and delivered by the Borrower. This
Agreement is, and each of the Notes when delivered hereunder will be, the legal,
valid and binding obligation of the Borrower enforceable against the Borrower in
accordance with their respective terms, subject to the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar law affecting
creditors rights generally.
(e) The Audited Statements of the Borrower, DECO and MichCon and the
Unaudited Statements of the Borrower, DECO and MichCon, copies of each of which
have been furnished to each Lender, fairly present, subject in the case of
Unaudited Statements to normal year-end audit adjustments, the Consolidated
financial condition, results of operations and cash flows of the relevant
Persons and entities, as at the dates and for the periods therein indicated, all
in accordance with generally accepted accounting principles consistently
applied. Since June 30, 2004, there has been no Material Adverse Change, except
as shall have been disclosed or contemplated in the SEC Reports.
(f) There is no pending or threatened action, suit, investigation,
litigation or proceeding, including, without limitation, any Environmental
Action, affecting the Borrower or any of its Significant Subsidiaries before any
court, governmental agency or arbitrator that (i) could be reasonably likely to
have a Material Adverse Effect other than the matters disclosed or contemplated
in the SEC Reports (the "Disclosed Litigation") or (ii) purports to affect the
legality, validity or enforceability of any Loan Document or the consummation of
the transactions contemplated hereby, and there has been no adverse change in
the status or financial effect on the Borrower or any of its Significant
Subsidiaries, of the Disclosed Litigation from that disclosed or contemplated in
the SEC Reports that could be reasonably likely to have a Material Adverse
Effect.
(g) The operations and properties of the Borrower and each of the
Significant Subsidiaries comply in all material respects with all applicable
Environmental Laws and Environmental Permits, all past non-compliance with such
Environmental Laws and Environmental Permits has been resolved without ongoing
material obligations or costs, except as disclosed or contemplated in the SEC
Reports, and no circumstances exist that could be reasonably likely to (i) form
the basis of an Environmental Action against the Borrower or any of the
Significant Subsidiaries or any of their properties that could have a Material
Adverse Effect or (ii) cause any such property to be subject to any restrictions
on ownership, occupancy, use or transferability under any Environmental Law that
could have a Material Adverse Effect.
(h) No ERISA Event has occurred or is reasonably expected to occur with
respect to any Plan.
(i) Schedule B (Actuarial Information) to the most recent annual report
(Form 5500 Series) for each Plan, copies of which have been filed with the
Internal Revenue Service, is complete and accurate and fairly presents the
funding status of such Plan, and since the date of such Schedule B there has
been no material adverse change in such funding status.
26
(j) Neither the Borrower nor any ERISA Affiliate has incurred or is
reasonably expected to incur any Withdrawal Liability to any Multiemployer Plan.
(k) Neither the Borrower nor any ERISA Affiliate has been notified by the
sponsor of a Multiemployer Plan that such Multiemployer Plan is in
reorganization or has been terminated, within the meaning of Title IV of ERISA,
and no such Multiemployer Plan is reasonably expected to be in reorganization or
to be terminated, within the meaning of Title IV of ERISA.
(l) Except as set forth in the financial statements referred to in
subsection (e) above, the Borrower and its Subsidiaries have no material
liability with respect to "expected post retirement benefit obligations" within
the meaning of Statement of Financial Accounting Standards No. 106.
(m) The Borrower is not engaged in the business of extending credit for
the purpose of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the Board of Governors of the Federal Reserve System),
and no proceeds of any Revolving Credit Advance will be used to purchase or
carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock; and after applying the proceeds of each
Revolving Credit Advance hereunder, margin stock (within the meaning of
Regulation U issued by the Board of Governors of the Federal Reserve System)
constitutes less than twenty-five percent (25%) of the value of those assets of
the Borrower and its Subsidiaries which are subject to any limitation on sale or
pledge, or any other restriction hereunder.
(n) Neither the Borrower nor any of its Subsidiaries is, or after the
making of any Revolving Credit Advance or the application of the proceeds or
repayment thereof, or the consummation of any of the other transactions
contemplated hereby, will be, an "investment company", or an "affiliated person"
of, or "promoter" or "principal underwriter" for, an "investment company"
(within the meaning of the Investment Company Act of 1940, as amended).
(o) At all times the Borrower is exempt from being required to seek
approval to perform its obligations under the Loan Documents pursuant to Rule 2
of the Rules and Regulations promulgated pursuant to the Public Utility Holding
Company Act of 1935, as amended.
ARTICLE V: COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants. So long as any Revolving Credit
Advance shall remain unpaid or any Lender shall have any Commitment hereunder,
the Borrower will:
(a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries
to comply with all applicable laws, rules, regulations and orders, such
compliance to include, without limitation, compliance with ERISA and
Environmental Laws, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.
27
(b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become delinquent, all
taxes, assessments and governmental charges or levies imposed upon it or upon
its property that, if not paid, could be reasonably expected to result in a
Material Adverse Effect; provided, however, that neither the Borrower nor any of
its Subsidiaries shall be required to pay or discharge any such tax, assessment,
charge or claim that is being contested in good faith and by proper proceedings
and as to which appropriate reserves are being maintained, unless and until any
Lien resulting therefrom attaches to its property and becomes enforceable
against its other creditors.
(c) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries
to maintain, insurance with responsible and reputable insurance companies or
associations in such amounts and covering such risks as is usually carried by
companies engaged in similar businesses and owning similar properties (including
customary self-insurance) in the same general areas in which the Borrower or
such Subsidiary operates.
(d) Preservation of Corporate Existence, Etc. Preserve and maintain its
corporate existence, rights (charter and statutory) and franchises; provided,
however, that the Borrower shall not be required to preserve any right or
franchise if the Board of Directors of the Borrower or such Subsidiary shall
determine that the preservation thereof is no longer desirable in the conduct of
the business of the Borrower and that the loss thereof is not disadvantageous in
any material respect to the Borrower and its Subsidiaries taken as a whole or
the ability of the Borrower to meet its obligations hereunder.
(e) Visitation Rights. At any reasonable time and from time to time,
permit the Agent or any of the Lenders or any agents or representatives thereof,
to examine and make copies of and abstracts from the records and books of
account of, and visit the properties of, the Borrower and any of its Significant
Subsidiaries, and to discuss the affairs, finances and accounts of the Borrower
and any of its Significant Subsidiaries with any of their officers or directors
and with their independent certified public accountants.
(f) Keeping of Books. Keep, and cause each of its Significant Subsidiaries
to keep, proper books of record and account, in which full and correct entries
shall be made of all financial transactions and the assets and business of the
Borrower and each such Subsidiary in accordance with generally accepted
accounting principles in effect from time to time.
(g) Maintenance of Properties, Etc. Subject to clause (d) above, maintain
and preserve, and cause each of its Significant Subsidiaries to maintain and
preserve, all of their respective properties that are used or useful in the
conduct of their respective businesses in good working order and condition,
ordinary wear and tear excepted.
(h) Reporting Requirements. Furnish to the Lenders:
(i) as soon as available and in any event within 65 days after the
end of each of the first three quarters of each fiscal year of the
Borrower, Consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries as of the end of such quarter and Consolidated statements of
income and cash flows of the Borrower and its Subsidiaries
28
for the period commencing at the end of the previous fiscal year and
ending with the end of such quarter;
(ii) as soon as available and in any event within 115 days after
the end of each fiscal year of the Borrower, a copy of the annual report
to Shareholders for such year for the Borrower and its Consolidated
Subsidiaries, containing the Consolidated balance sheet of the Borrower
and its Consolidated Subsidiaries as of the end of such fiscal year and
Consolidated statements of income and cash flows of the Borrower and its
Subsidiaries for such fiscal year, in each case accompanied by an opinion
by Deloitte & Touche LLP or other independent public accountants
acceptable to the Required Lenders;
(iii) together with the financial statements required under clauses
(i) or (ii) above, a compliance certificate in substantially the form of
Exhibit F signed by a Financial Officer of the Borrower showing the then
current information and calculations necessary to determine the Applicable
Margin, the Applicable Percentage and the Applicable Utilization Fee Rate
and compliance with this Agreement and stating that no Event of Default or
Default exists, or if any Event of Default or Default exists, stating the
nature and status thereof;
(iv) as soon as possible and in any event within five days after the
occurrence of each Default continuing on the date of such statement, a
statement of a Financial Officer of the Borrower setting forth details of
such Default and the action that the Borrower has taken and proposes to
take with respect thereto;
(v) as soon as possible and in any event within five days after any
change in the Borrower's Xxxxx'x Rating or S&P Rating, notice thereof;
(vi) reasonably promptly after the sending or filing thereof copies
of all reports and registration statements that the Borrower or any
Subsidiary filed with the Securities and Exchange Commission or any
national securities exchange;
(vii) promptly after the commencement thereof, notice of all actions
and proceedings before any court, governmental agency or arbitrator
affecting the Borrower or any of its Subsidiaries of the type described in
Section 4.01(f); and
(viii)such other information respecting the Borrower or any of its
Subsidiaries as any Lender through the Agent may from time to time
reasonably request.
Information required to be delivered pursuant to clauses (i), (ii) or (vi)
above shall be deemed to have been delivered on the date on which the Borrower
has posted such information on the Borrower's website on the Internet at
xxx.xxxxxxxxx.xxx (or any successor or replacement website thereof), which
website includes an option to subscribe to a free service alerting subscribers
by email of new Securities and Exchange Commission filings at
xxxx://xxx.xxxxxxxxx-xx.xxx/xxxxx/xx_xxxx.xxxxx?xxxxxxxXXX&xxxxxxx0000, or at
xxx.xxx.xxx or at another website identified in a notice to the Lenders and
accessible by the Lenders without charge.
29
SECTION 5.02. Negative Covenants. At all times on and after the
Effective Date so long as any Revolving Credit Advance shall remain unpaid or
any Lender shall have any Commitment hereunder, the Borrower will not:
(a) Liens, Etc. Create or suffer to exist, or permit any Significant
Subsidiary to create or suffer to exist, any Lien on or with respect to any
shares of any class of equity securities (including, without limitation, Voting
Stock) of any Significant Subsidiary, whether such shares are now owned or
hereafter acquired.
(b) Debt. Create, incur, assume or suffer to exist any Debt except (i)
Debt that is expressly or effectively pari passu with or expressly subordinated
to the Debt of the Borrower hereunder or (ii) Nonrecourse Debt.
(c) Mergers, Etc. Merge or consolidate with or into, or convey, transfer,
lease or otherwise dispose of (whether in one transaction or in a series of
transactions) all or substantially all of its assets (whether now owned or
hereafter acquired) to, any Person, or permit any Significant Subsidiary to do
so, except that (i) any Significant Subsidiary may merge or consolidate with or
into any other Significant Subsidiary, (ii) any Significant Subsidiary may merge
into or dispose of assets to the Borrower, and (iii) the Borrower may merge or
consolidate with or into any other Person so long as the Borrower shall be the
surviving entity and has, after giving effect to such merger or consolidation,
senior unsecured Debt outstanding rated at least BBB- by S&P and Baa3 by
Xxxxx'x; provided, in each case, that no Default shall have occurred and be
continuing at the time of such proposed transaction or would result therefrom.
(d) Change in Nature of Business. Make, or permit any of its Significant
Subsidiaries (including Enterprises and MichCon) to make, any material change in
the nature of its business as carried on the date hereof, other than as
disclosed or contemplated in the SEC Reports.
(e) Accounting Changes. Make or permit any change in accounting policies
or reporting practices, except as required or permitted by generally accepted
accounting principles; or permit any of its Subsidiaries to make or permit any
change in accounting policies or reporting practices if, as a result of such
change, the Borrower shall fail to maintain a system of accounting established
and administered in accordance with generally accepted accounting principles.
ARTICLE VI: EVENTS OF DEFAULT
SECTION 6.01. Events of Default. If any of the following events
("Events of Default") shall occur and be continuing:
(a) The Borrower shall fail to pay any principal of any Revolving Credit
Advance when the same becomes due and payable; or the Borrower shall fail to pay
any interest on any Revolving Credit Advance or make any other payment of fees
or other amounts payable under this Agreement or any Note within three Business
Days after the same becomes due and payable; or
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(b) Any representation or warranty made by the Borrower herein, by the
Borrower (or any of its officers) in connection with this Agreement shall prove
to have been incorrect in any material respect when made; or
(c) (i) The Borrower shall fail to perform or observe any term, covenant
or agreement contained in Section 2.09(b), 5.01(d), (e) or (h) or 5.02, or (ii)
the Borrower shall fail to perform or observe any other term, covenant or
agreement contained in any Loan Document on its part to be performed or observed
if such failure shall remain unremedied for 30 days after written notice thereof
shall have been given to the Borrower by the Agent or any Lender; or
(d) The Borrower or any of its Significant Subsidiaries shall fail to pay
any principal of or premium or interest on any Debt that is outstanding in a
principal or notional amount of at least $25,000,000 in the aggregate (but
excluding Debt outstanding hereunder and Nonrecourse Debt) of the Borrower or
such Significant Subsidiary (as the case may be), when the same becomes due and
payable (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure shall continue after the applicable grace
period, if any, specified in the agreement or instrument relating to such Debt;
or any other event shall occur or condition shall exist under any agreement or
instrument relating to any such Debt and shall continue after the applicable
grace period, if any, specified in such agreement or instrument, if the effect
of such event or condition is to accelerate, or to permit the acceleration of,
the maturity of such Debt; or any such Debt shall be declared to be due and
payable, or required to be prepaid or redeemed (other than by a regularly
scheduled required prepayment or redemption), purchased or defeased, or an offer
to prepay, redeem, purchase or defease such Debt shall be required to be made,
in each case prior to the stated maturity thereof; or
(e) The Borrower or any of its Significant Subsidiaries shall generally
not pay its debts as such debts become due, or shall admit in writing its
inability to pay its debts generally, or shall make a general assignment for the
benefit of creditors; or any proceeding shall be instituted by or against the
Borrower or any of its Significant Subsidiaries seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, custodian or other similar official for it or for any
substantial part of its property and, in the case of any such proceeding
instituted against it (but not instituted by it), either such proceeding shall
remain undismissed or unstayed for a period of 60 days, or any of the actions
sought in such proceeding (including, without limitation, the entry of an order
for relief against, or the appointment of a receiver, trustee, custodian or
other similar official for, it or for any substantial part of its property)
shall occur; or the Borrower or any of its Significant Subsidiaries shall take
any corporate action to authorize any of the actions set forth above in this
subsection (e); or
(f) Any judgment or order for the payment of money, individually or in the
aggregate, in excess of $25,000,000 shall be rendered against the Borrower or
any of its Significant Subsidiaries and either (i) enforcement proceedings shall
have been commenced by any creditor upon such judgment or order or (ii) there
shall be any period of 30 consecutive days during which a stay of enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall not be
in effect; or
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(g) Any non-monetary judgment or order shall be rendered against the
Borrower or any of its Significant Subsidiaries that could be reasonably
expected to have a Material Adverse Effect, and there shall be any period of 30
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect; or
(h) The Borrower shall at any time cease to hold directly or indirectly
100% of the Voting Stock of DECO and MichCon; or
(i) The Borrower or any of its ERISA Affiliates shall incur, or, in the
reasonable opinion of the Required Lenders, shall be reasonably likely to incur
liability in excess of $25,000,000 individually or in the aggregate as a result
of one or more of the following: (i) the occurrence of any ERISA Event; (ii) the
partial or complete withdrawal of the Borrower or any of its ERISA Affiliates
from a Multiemployer Plan; or (iii) the reorganization or termination of a
Multiemployer Plan; or
(j) The Borrower and its Subsidiaries, on a Consolidated basis, shall at
any time cease to:
(i) Maintain a ratio of Consolidated EBITDA to interest expense on
all Debt (excluding (A) all Nonrecourse Debt of the Borrower and its
Subsidiaries, (B) Excluded Hedging Debt and (C) the Junior Subordinated
Debt) of not less than 2:1 for each twelve-month period ending on the last
day of September, December, March and June of each year, or
(ii) Maintain a ratio of Consolidated Debt (excluding (A) all
Nonrecourse Debt of the Borrower and its Subsidiaries, (B) Excluded
Hedging Debt and (C) the Junior Subordinated Debt) to Capitalization
(excluding all Nonrecourse Debt) of not greater than .65:1; or
(k) any provision of any of the Loan Documents after delivery thereof
pursuant to Section 3.01 shall for any reason cease to be valid and binding on
or enforceable against the Borrower, or the Borrower shall so state in writing;
then, and in any such event, the Agent (i) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrower, declare the
obligation of each Lender to make Revolving Credit Advances to be terminated,
whereupon the same shall forthwith terminate, and (ii) shall at the request, or
may with the consent, of the Required Lenders, by notice to the Borrower,
declare the Revolving Credit Advances, all interest thereon and all other
amounts payable under this Agreement to be forthwith due and payable, whereupon
the Revolving Credit Advances, all such interest and all such amounts shall
become and be forthwith due and payable, without presentment, demand, protest or
further notice of any kind, all of which are hereby expressly waived by the
Borrower; provided, however, that in the event of an actual or deemed entry of
an order for relief with respect to the Borrower under the Federal Bankruptcy
Code, (A) the obligation of each Lender to make Revolving Credit Advances shall
automatically be terminated and (B) the Revolving Credit Advances, all such
interest and all such amounts shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by the Borrower.
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ARTICLE VII: THE AGENT
SECTION 7.01. Authorization and Action. Each Lender hereby appoints
and authorizes the Agent to take such action as agent on its behalf and to
exercise such powers and discretion under this Agreement as are delegated to the
Agent by the terms hereof, together with such powers and discretion as are
reasonably incidental thereto. As to any matters not expressly provided for by
this Agreement (including, without limitation, enforcement or collection of the
Revolving Credit Advances), the Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from
acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Required Lenders (or all of the Lenders to the
extent required by the terms of this Agreement), and such instructions shall be
binding upon all Lenders and all holders of Revolving Credit Advances; provided,
however, that the Agent shall not be required to take any action that exposes
the Agent to personal liability or that is contrary to this Agreement or
applicable law. The Agent agrees to give to each Lender prompt notice of each
notice given to it by the Borrower pursuant to the terms of this Agreement.
SECTION 7.02. Agent's Reliance, Etc. Neither the Agent nor any of
its directors, officers, agents or employees shall be liable for any action
taken or omitted to be taken by it or them under or in connection with this
Agreement, except for its or their own gross negligence or willful misconduct.
Without limitation of the generality of the foregoing, the Agent: (i) may treat
the payee in respect of any Revolving Credit Advance as the owner thereof until
the Agent receives and accepts an Assignment and Acceptance entered into by the
Lender that is the payee in respect of such Revolving Credit Advance, as
assignor, and an Eligible Assignee, as assignee, as provided in Section 8.07;
(ii) may consult with legal counsel (including counsel for the Borrower),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (iii) makes
no warranty or representation to any Lender and shall not be responsible to any
Lender for any statements, warranties or representations (whether written or
oral) made in or in connection with this Agreement; (iv) shall not have any duty
to ascertain or to inquire as to the performance or observance of any of the
terms, covenants or conditions of this Agreement on the part of the Borrower or
to inspect the property (including the books and records) of the Borrower; (v)
shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security interest created or purported to
be created under or in connection with, any Loan Document or any other
instrument or document furnished pursuant hereto; and (vi) shall incur no
liability under or in respect of this Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telecopier,
telegram or telex) believed by it to be genuine and signed or sent by the proper
party or parties.
SECTION 7.03. Citibank and Affiliates. With respect to its
Commitment, the Revolving Credit Advances made by it and any Note issued to it,
Citibank shall have the same rights and powers under this Agreement as any other
Lender and may exercise the same as though it were not the Agent; and the term
"Lender" or "Lenders" shall, unless otherwise expressly indicated, include
Citibank in its individual capacity. Citibank and its Affiliates may accept
deposits from, lend money to, act as trustee under indentures of, accept
investment banking engagements from and generally engage in any kind of business
with, the Borrower, any
33
of its Subsidiaries and any Person who may do business with or own securities of
the Borrower or any such Subsidiary, all as if Citibank were not the Agent and
without any duty to account therefor to the Lenders.
SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that
it has, independently and without reliance upon the Agent or any other Lender
and based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the Agent or
any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.
SECTION 7.05. Indemnification. The Lenders agree to indemnify the
Agent (to the extent not reimbursed by the Borrower), ratably according to the
respective principal amounts of their respective Revolving Credit Advances (or
if no Revolving Credit Advances are at the time outstanding or if any Revolving
Credit Advances are owing to Persons that are not Lenders, ratably according to
the respective amounts of their Commitments), from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever that may be
imposed on, incurred by, or asserted against the Agent in any way relating to or
arising out of any Loan Document or any action taken or omitted by the Agent
under any Loan Document, provided that no Lender shall be liable for any portion
of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the Agent's
gross negligence or willful misconduct. Without limitation of the foregoing,
each Lender agrees to reimburse the Agent promptly upon demand for its ratable
share of any out-of-pocket expenses (including counsel fees) incurred by the
Agent in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, any Loan Document, to the extent that the Agent is not
reimbursed for such expenses by the Borrower.
SECTION 7.06. Successor Agent. The Agent may resign at any time by
giving written notice thereof to the Lenders and the Borrower and may be removed
at any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Agent. If no successor Agent shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days after
the retiring Agent's giving of notice of resignation or the Required Lenders'
removal of the retiring Agent, then the retiring Agent may, on behalf of the
Lenders, appoint a successor Agent, which shall be a commercial bank organized
under the laws of the United States of America or of any State thereof and
having a combined capital and surplus of at least $50,000,000. 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, discretion, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations under this
Agreement. After any retiring Agent's resignation or removal hereunder as Agent,
the provisions of this Article VII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent under this Agreement.
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SECTION 7.07. Co-Documentation Agents. None of the Lenders
identified in this Agreement as a Co-Documentation Agent shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than those applicable to all Lenders as such. Without limiting the foregoing,
none of such Lenders shall have or be deemed to have a fiduciary relationship
with any Lender. Each Lender hereby makes the same acknowledgments with respect
to such Lenders as it makes with respect to the Agent in Section 7.04.
ARTICLE VIII: MISCELLANEOUS
SECTION 8.01. Amendments, Etc. No amendment or waiver of any
provision of this Agreement or the Notes, nor consent to any departure by the
Borrower therefrom, shall in any event be effective unless the same shall be in
writing and signed by the Required Lenders, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no amendment, waiver or consent shall,
unless in writing and signed by all the Lenders affected thereby, do any of the
following: (a) waive any of the conditions specified in Section 3.01, (b)
increase the Commitments of the Lenders or subject the Lenders to any additional
obligations, (c) reduce the principal of, or interest on, the Revolving Credit
Advances or any fees or other amounts payable hereunder, (d) postpone any date
fixed for any payment of principal of, or interest on, the Revolving Credit
Advances or any fees or other amounts payable hereunder, (e) change the
percentage of the Commitments or of the aggregate unpaid principal amount of the
Revolving Credit Advances, or the number of Lenders, that shall be required for
the Lenders or any of them to take any action hereunder or (f) amend this
Section 8.01; and provided further that no amendment, waiver or consent shall,
unless in writing and signed by the Agent in addition to the Lenders required
above to take such action, affect the rights or duties of the Agent under this
Agreement or any Note.
SECTION 8.02. Notices, Etc.
(a) All notices and other communications provided for
hereunder shall be in writing or confirmed in writing (including
telecopier communication) and mailed, telecopied or delivered, if to
the Borrower, at its address at 0000 0xx Xxxxxx, Xxxxxxx, XX 00000,
Attention: Treasurer; if to any Initial Lender, at its Domestic
Lending Office specified opposite its name on Schedule I hereto; if
to any other Lender, at its Domestic Lending Office specified in the
Assignment and Acceptance pursuant to which it became a Lender; and
if to the Agent, at its address at Xxx Xxxxx Xxx, Xxxxx 000, Xxx
Xxxxxx, Xxxxxxxx 00000 Attention: Xxxx Xxxxxxxxx, with a copy to J.
Xxxxxxxx XxXxx, 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000; or,
as to the Borrower or the Agent, at such other address as shall be
designated by such party in a written notice to the other parties
and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Borrower and the
Agent. All such notices and communications shall, when mailed or
telecopied be effective when deposited in the mails or telecopied,
respectively, except that notices and communications to the Agent
pursuant to Article II, III or VII shall not be effective until
received by the Agent. Delivery by telecopier of an executed
counterpart of any amendment or waiver of any provision of this
Agreement or the Notes or of any Exhibit hereto
35
to be executed and delivered hereunder shall be effective as
delivery of a manually executed counterpart thereof.
(b) (i) Except as otherwise provided in Section 5.01(h), the
Borrower shall provide to the Agent all information, documents and
other materials that such Person is obligated to furnish to the
Agent pursuant to this Agreement and the other Loan Documents,
including, without limitation, all notices, requests, financial
statements, financial and other reports, certificates and other
information materials, but excluding any such communication that (i)
relates to a Notice of Borrowing or other request for a new, or a
conversion of an existing, Borrowing or other extension of credit
(including any election of an interest rate or Interest Period
relating thereto), (ii) relates to the payment of any principal or
other amount due hereunder prior to the scheduled date therefor,
(iii) provides notice of any Default or Event of Default hereunder
or (iv) is required to be delivered to satisfy any condition
precedent to the effectiveness of this Agreement and/or any
Borrowing or other extension of credit hereunder (all such non-
excluded communications being referred to herein collectively as
"Communications"), by transmitting the Communications in an
electronic/soft medium in a format acceptable to the Agent to
xxxxxxxx.x.xxxxxxxxxxxxx@xxxxxxxxx.xxx, or such other electronic
mail address as the Agent shall identify to the Borrower. In
addition, the Borrower shall continue to provide the Communications
to the Agent in the manner specified in this Agreement but only to
the extent requested by the Agent. The Borrower further agrees that
the Agent may make the Communications available to the Lenders by
posting the Communications on Intralinks, or a substantially similar
electronic transmission system mutually agreeable to the Agent and
the Borrower (the "Platform"). Nothing in this Section 8.02(b) shall
prejudice the right of the Agent to give any notice or other
communication pursuant hereto or to any other Loan Document in any
other manner specified herein or therein.
(ii) The Agent agrees that the receipt of the Communications
by the Agent at its e-mail address set forth in clause (i) above
shall constitute effective delivery of the Communications to the
Agent for purposes of each Loan Document. The Borrower agrees that
e-mail notice to it (at the address provided pursuant to the next
sentence and deemed delivered as provided in subclause (iii) below)
specifying that Communications have been posted to the Platform
shall constitute effective delivery of such Communications to such
Person under the Loan Documents. The Borrower agrees (A) to notify
the Agent in writing (including by electronic communication) from
time to time to ensure that the Agent has on record an effective e-
mail address for such Person to which the foregoing notices may be
sent by electronic transmission and (B) that the foregoing notices
may be sent to such e-mail address.
(iii) Each party hereto agrees that any electronic
communication referred to in this clause (b) shall be deemed
delivered upon the posting of a record of such Communication as
"sent" in the e-mail system of the sending party or, in the case of
any such Communication to the Agent, upon the posting of a record of
such
36
Communication as "received" in the e-mail system of the Agent;
provided, however, that if such Communication is received by the
Agent after the normal business hours of the Agent, such
Communication shall be deemed delivered at the opening of business
on the next Business Day for the Agent; provided, further, that in
the event that the Agent's e-mail system shall be unavailable for
receipt of any Communication, Borrower may deliver such
Communication to the Agent in a manner mutually agreeable to the
Agent and the Borrower.
(iv) The Borrower acknowledges and agrees that the
distribution of the Communications and other material through an
electronic medium is not necessarily secure and that there are
confidentiality and other risks associated with such distribution.
THE BORROWER FURTHER ACKNOWLEDGES AND AGREES AS FOLLOWS: (A) THE
PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE"; (B) CITIBANK DOES
NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR
THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR
ERRORS OR OMISSIONS IN THE COMMUNICATIONS; AND (C) NO WARRANTY OF
ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT
LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY CITIBANK IN
CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM.
(v) This clause (b) shall terminate on the date that neither
Citibank or any of its affiliates is the Agent under this Agreement.
SECTION 8.03. No Waiver; Remedies. No failure on the part of any
Lender or the Agent to exercise, and no delay in exercising, any right hereunder
or under any Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.
SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay on
demand, upon presentation of a statement of account and absent manifest error,
all reasonable costs and reasonable expenses of the Agent in connection with the
preparation, execution, delivery, administration, modification and amendment of
the Loan Document and the other documents to be delivered hereunder and
thereunder, including, without limitation, (A) all due diligence, syndication
(including printing, distribution and bank meetings), transportation, computer,
duplication, appraisal, consultant, and audit expenses and (B) the reasonable
fees and reasonable expenses of counsel for the Agent with respect thereto and
with respect to advising the Agent as to its rights and responsibilities under
the Loan Documents. The Borrower further agrees to pay on demand all reasonable
costs and reasonable expenses of the Agent and the Lenders, if any (including,
without limitation, reasonable internal and external counsel fees and expenses,
provided such fees and expenses are not duplicative), in connection with the
"workout", restructuring or enforcement (whether through negotiations, legal
proceedings or otherwise) of the Loan Documents and the other documents to be
delivered hereunder, including,
37
without limitation, reasonable fees and expenses of counsel for the Agent and
each Lender in connection with the enforcement of rights under this Section
8.04(a).
(b) The Borrower agrees to indemnify, to the extent legally permissible,
and hold harmless the Agent and each Lender and each of their Affiliates and
their officers, directors, employees, agents and advisors (each, an "Indemnified
Party") from and against any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of
counsel) that may be incurred by or asserted or awarded against any Indemnified
Party, in each case arising out of or in connection with or by reason of, or in
connection with the preparation for a defense of, any investigation, litigation
or proceeding arising out of, related to or in connection with (i) the Loan
Documents, any of the transactions contemplated herein or therein or the actual
or proposed use of the proceeds of the Revolving Credit Advances or (ii) the
actual or alleged presence of Hazardous Materials on any property of the
Borrower or any of its Subsidiaries or any Environmental Action relating in any
way to the Borrower or any of its Subsidiaries, in each case whether or not such
investigation, litigation or proceeding is brought by the Borrower, its
directors, shareholders or creditors or an Indemnified Party or any other Person
or any Indemnified Party is otherwise a party thereto and whether or not the
transactions contemplated hereby are consummated, except to the extent such
claim, damage, loss, liability or expense is found in a final, non-appealable
judgment by a court of competent jurisdiction to have resulted from such
Indemnified Party's gross negligence or willful misconduct. The Borrower also
agrees not to assert any claim against the Agent, any Lender, any of their
Affiliates, or any of their respective directors, officers, employees, attorneys
and agents, on any theory of liability, for special, indirect, consequential or
punitive damages arising out of or otherwise relating to the Loan Documents any
of the transactions contemplated herein or therein or the actual or proposed use
of the proceeds of the Revolving Credit Advances.
(c) If any payment of principal of, or Conversion of, any Eurodollar Rate
Advance is made by the Borrower to or for the account of a Lender other than on
the last day of the Interest Period for such Revolving Credit Advance, as a
result of a payment or Conversion pursuant to Section 2.07(d) or (e), 2.09 or
2.11, acceleration of the maturity of the Revolving Credit Advances pursuant to
Section 6.01, or for any other reason, the Borrower shall, upon demand by such
Lender (with a copy of such demand to the Agent), pay to the Agent for the
account of such Lender any amounts required to compensate such Lender for any
additional losses, costs or expenses that it may reasonably incur as a result of
such payment or Conversion, including, without limitation, any loss (including
loss of anticipated profits), cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by any Lender to
fund or maintain such Revolving Credit Advance.
(d) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
Sections 2.10, 2.13 and 8.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the Notes.
SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during
the continuance of any Event of Default and (ii) the making of the request or
the granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Revolving Credit Advances due and payable pursuant to the provisions
of Section 6.01, each Lender and each of
38
its Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Lender or such Affiliate to or for
the credit or the account of the Borrower against any and all of the obligations
of the Borrower now or hereafter existing under the Loan Documents and any Note
held by such Lender, whether or not such Lender shall have made any demand under
this Agreement or such Note and although such obligations may be unmatured. Each
Lender agrees promptly to notify the Borrower after any such set-off and
application, provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Lender and its
Affiliates under this Section are in addition to other rights and remedies
(including, without limitation, other rights of set-off) that such Lender and
its Affiliates may have.
SECTION 8.06. Binding Effect. This Agreement shall become effective
(other than Section 2.01, which shall only become effective upon satisfaction of
the conditions precedent set forth in Section 3.01) when it shall have been
executed by the Borrower and the Agent and when the Agent shall have been
notified by each Initial Lender that such Initial Lender has executed it and
thereafter shall be binding upon and inure to the benefit of the Borrower, the
Agent and each Lender and their respective successors and assigns, except that
the Borrower shall not have the right to assign its rights hereunder or any
interest herein without the prior written consent of the Lenders to any Person.
SECTION 8.07. Assignments, Designations and Participations. (a) Each
Lender may, with the prior consent of the Agent (which consent shall not be
unreasonably withheld and which consent shall not be required in the event of an
assignment or grant pursuant to Sections 8.07(g) or (h)) and (for so long as no
Default has occurred and is continuing) the Borrower (which consent shall not be
unreasonably withheld and which consent shall not be required in the event of an
assignment or grant pursuant to Sections 8.07(g) or (h)) assign to one or more
Persons all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitment, the
Revolving Credit Advances owed to it and any Note or Notes held by it);
provided, however, that (i) each such assignment shall be of a constant, and not
a varying, percentage of all rights and obligations under this Agreement and,
for so long as no Default has occurred and is continuing, shall be made
concurrently with an assignment in a ratable amount of such Lender's rights and
obligations (if any) under the Three-Year Agreement (including, without
limitation, all or a portion of its "Commitment", "Outstanding Credit Exposures"
owed to it and any "Note" or "Notes" held by it under (and as each such term is
defined in) the Three-Year Agreement), (ii) except in the case of an assignment
to a Person that, immediately prior to such assignment, was a Lender or an
assignment of all of a Lender's rights and obligations under this Agreement, the
amount of the Commitment of the assigning Lender being assigned pursuant to each
such assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $10,000,000 or an
integral multiple of $1,000,000 in excess thereof, (iii) each such assignment
shall be to an Eligible Assignee, and (iv) the parties to each such assignment
shall execute and deliver to the Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance, together with any Note subject to such
assignment and a processing and recordation fee of $3,000. Upon such execution,
delivery, acceptance and recording, from and after the
39
effective date specified in each Assignment and Acceptance, (x) the assignee
thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (y) the
Lender assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights and be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all or the remaining
portion of an assigning Lender's rights and obligations under this Agreement,
such Lender shall cease to be a party hereto).
(b) By executing and delivering an Assignment and Acceptance, the Lender
assignor thereunder and the assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (i) other than as provided in
such Assignment and Acceptance, such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of, or the perfection or priority of any lien or security interest created
or purported to be created under or in connection with, this Agreement or any
other instrument or document furnished pursuant hereto; (ii) such assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower or the performance or
observance by the Borrower of any of its obligations under this Agreement or any
other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement, together with copies of
the financial statements referred to in Section 4.01 and such other documents
and information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Acceptance; (iv) such assignee will,
independently and without reliance upon the Agent, such assigning Lender or any
other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement; (v) such assignee confirms that it is an
Eligible Assignee; (vi) such assignee appoints and authorizes the Agent to take
such action as agent on its behalf and to exercise such powers and discretion
under this Agreement as are delegated to the Agent by the terms hereof, together
with such powers and discretion as are reasonably incidental thereto; and (vii)
such assignee agrees that it will perform in accordance with their terms all of
the obligations that by the terms of this Agreement are required to be performed
by it as a Lender.
(c) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee,
together with any Note or Notes subject to such assignment, the Agent shall, if
such Assignment and Acceptance has been completed and is in substantially the
form of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii) record
the information contained therein in the Register and (iii) give prompt notice
thereof to the Borrower. Within five Business Days after the Borrower's receipt
of such notice, if requested by the applicable Lender, the Borrower, at its own
expense, shall execute and deliver to the Agent in exchange for the surrendered
Note a new Note to the order of such Eligible Assignee in an amount equal to the
Commitment assumed by it pursuant to such Assignment and Acceptance and, if the
assigning Lender has retained a Commitment hereunder, if requested by such
assigning Lender, a new Note to the order of the assigning Lender in an amount
equal to the Commitment retained by it hereunder. Such new Note or Notes shall
be in
40
an aggregate principal amount equal to the aggregate principal amount of such
surrendered Note or Notes, shall be dated the effective date of such Assignment
and Acceptance and shall otherwise be in substantially the form of Exhibit A
hereto.
(d) The Agent shall maintain at its address referred to in Section 8.02 a
copy of each Assignment and Acceptance delivered to and accepted by it and a
register for the recordation of the names and addresses and Commitment of, and
principal amount of Revolving Credit Advances owing to, each Lender from time to
time (the "Register"). The entries in the Register shall be conclusive and
binding for all purposes, absent manifest error, and the Borrower, the Agent and
the Lenders may treat each Person whose name is recorded in the Register as a
Lender hereunder for all purposes of this Agreement. The Register shall be
available for inspection by the Borrower or any Lender at any reasonable time
and from time to time upon reasonable prior notice.
(e) Each Lender may sell participations to one or more banks or other
entities (other than the Borrower or any of its Affiliates) in or to all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment, the Revolving Credit Advances
owing to it and any Note or Notes held by it); provided, however, that (i) such
Lender's obligations under this Agreement (including, without limitation, its
Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations, (iii) such Lender shall remain the owner of such Revolving
Credit Advances for all purposes of this Agreement, (iv) the Borrower, the Agent
and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement and (v) no participant under any such participation shall have any
right to approve any amendment or waiver of any provision of this Agreement or
any Note, or any consent to any departure by the Borrower therefrom, except to
the extent that such amendment, waiver or consent would (A) reduce the principal
of, or interest on, the Revolving Credit Advances or any fees or other amounts
payable hereunder, or (B) increase the Commitments, in each case to the extent
subject to such participation, or postpone any date fixed for any payment of
principal of, or interest on, the Revolving Credit Advances or any fees or other
amounts payable hereunder, in each case to the extent subject to such
participation. Each participant shall be entitled to the benefits and subject to
the exclusions, in each case, as if it were a Lender, of Sections 2.10, 2.11 and
2.13 to the same extent as if it were a Lender and had acquired its interest
under this Agreement by an assignment made pursuant to this Section 8.07,
provided, however, that (i) such participant complies with the requirements of
Section 2.13(e) and (ii) in no event shall the Borrower be obligated to make any
payment with respect to such Sections that is greater than the amount that the
Borrower would have otherwise made had no participations been sold under this
Section 8.07(e).
(f) Any Lender may, in connection with any assignment, designation or
participation or proposed assignment, designation or participation pursuant to
this Section 8.07, disclose to the assignee, designee or participant or proposed
assignee, designee or participant, any information relating to the Borrower
furnished to such Lender by or on behalf of the Borrower; provided that, prior
to any such disclosure, the assignee, designee or participant or proposed
assignee, designee or participant shall agree to preserve the confidentiality of
any Confidential Information relating to the Borrower received by it from such
Lender.
41
(g) Notwithstanding any other provision set forth in this Agreement, any
Lender may at any time (i) create a security interest in all or a portion of its
rights under this Agreement (including, without limitation, the Revolving Credit
Advances owing to it and the Note or Notes held by it) in favor of any Federal
Reserve Bank in accordance with Regulation A of the Board of Governors of the
Federal Reserve System or (ii) with notice to the Agent and the Borrower, assign
all or a portion of its rights and obligations under this Agreement (including,
without limitation, all or a portion of its Commitment, the Revolving Credit
Advances owed to it and the Note or Notes held by it) to any Lender or any
Affiliate of any Lender.
(h) Notwithstanding anything to the contrary contained herein, any Lender
(a "Designating Lender") may grant to one or more special purpose funding
vehicles (each an "SPV"), identified as such in writing from time to time by the
Designating Lender to the Agent and the Borrower, the option to provide to the
Borrower all or any part of any Revolving Credit Advance that such Designating
Lender would otherwise be obligated to make to the Borrower pursuant to this
Agreement; provided that (i) nothing herein shall constitute a commitment by any
SPV to make any Revolving Credit Advance, (ii) if an SPV elects not to exercise
such option or otherwise fails to provide all or any part of such Revolving
Credit Advance, the Designating Lender shall be obligated to make such Revolving
Credit Advance pursuant to the terms hereof, (iii) the Designating Lender shall
remain liable for any indemnity or other payment obligation with respect to its
Commitment hereunder and (iv) no SPV or Designating Lender shall be entitled to
receive any greater amount under this Agreement than the Designating Lender
would have been entitled to receive had the Designating Lender not otherwise
granted such SPV the option to provide any Revolving Credit Advance to the
Borrower. The making of a Revolving Credit Advance by an SPV hereunder shall
utilize the Commitment of the Designating Lender to the same extent, and as if,
such Revolving Credit Advance were made by such Designating Lender.
(i) Each party hereto hereby acknowledges and agrees that no SPV shall
have the rights of a Lender hereunder, such rights being retained by the
applicable Designating Lender. Accordingly, and without limiting the foregoing,
each party hereby further acknowledges and agrees that no SPV shall have any
voting rights hereunder and that the voting rights attributable to any Revolving
Credit Advance made by an SPV shall be exercised only by the relevant
Designating Lender and that each Designating Lender shall serve as the
administrative agent and attorney-in-fact for its SPV and shall on behalf of its
SPV receive any and all payments made for the benefit of such SPV and take all
actions hereunder to the extent, if any, such SPV shall have any rights
hereunder. No additional Note shall be required to evidence the Revolving Credit
Advances or portion thereof made by an SPV; and the related Designating Lender
shall be deemed to hold its Note or Notes, if any, as administrative agent for
such SPV to the extent of the Revolving Credit Advances or portion thereof
funded by such SPV. In addition, any payments for the account of any SPV shall
be paid to its Designating Lender as administrative agent for such SPV.
(j) Each party hereto hereby agrees that no SPV shall be liable for any
indemnity or payment under this Agreement for which a Lender would otherwise be
liable so long as, and to the extent that, the related Designating Lender
provides such indemnity or makes such payment; provided, with respect to such
agreement by the Borrower that the related Designating Lender shall not be in
breach of its obligation to make Revolving Credit Advances to the Borrower
42
hereunder. In furtherance of the foregoing, each party hereto hereby agrees
(which agreements shall survive the termination of this Agreement) that prior to
the date that is one year and one day after the payment in full of all
outstanding commercial paper or other senior indebtedness of any SPV, it will
not institute against, or join any other person in instituting against, such SPV
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under the laws of the United States or any State thereof; provided,
with respect to such agreement by the Borrower that the related Designating
Lender shall not be in breach of its obligation to make Revolving Credit
Advances to the Borrower hereunder. Notwithstanding the foregoing, the
Designating Lender unconditionally agrees to indemnify the Borrower, the Agent
and each Lender against all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may be incurred by or asserted against the
Borrower, the Agent or such Lender, as the case may be, in any way relating to
or arising as a consequence of any such forbearance or delay in the initiation
of any such proceeding against its SPV.
(k) In addition, notwithstanding anything to the contrary contained in
subsection 8.07(h), (i), (j) or (k) or otherwise in this Agreement, any SPV may
(i) at any time and without paying any processing fee therefor, assign or
participate all or a portion of its interest in any Revolving Credit Advances to
the Designating Lender or to any financial institutions providing liquidity
and/or credit support to or for the account of such SPV to support the funding
or maintenance of Revolving Credit Advances and (ii) disclose on a confidential
basis any non-public information relating to its Revolving Credit Advances to
any rating agency, commercial paper dealer or provider of any surety, guarantee
or credit or liquidity enhancements to such SPV. Subsection 8.07(h), (i), (j) or
(k) may not be amended without the written consent of any Designating Lender
affected thereby.
SECTION 8.08. Confidentiality. Neither the Agent nor any Lender
shall disclose any Confidential Information to any other Person without the
consent of the Borrower, other than (a) to the Agent's or such Lender's
Affiliates and their officers, directors, employees, agents and advisors and, as
contemplated by Section 8.07(f), to actual or prospective assignees and
participants, and then only on a confidential basis, (b) as required by any law,
rule or regulation or judicial process, (c) to any rating agency when required
by it, provided that, prior to any such disclosure, such rating agency shall
undertake to preserve the confidentiality of any Confidential Information
relating to the Borrower received by it from such Lender, (d) as requested or
required by any state, federal or foreign authority or examiner regulating
banks, other financial institutions or banking, (e) in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating to
this Agreement or the enforcement of rights hereunder and (f) on a confidential
basis to any Lender's direct or indirect contractual counterparties in swap
agreements or to legal counsel, accountants and other professional advisors to
such counterparties.
SECTION 8.09. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.
SECTION 8.10. Execution in Counterparts; Integration. This Agreement
may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which
43
taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of a signature page to this Agreement by telecopier shall
be effective as delivery of a manually executed counterpart of this Agreement.
This Agreement and any separate letter agreement with respect to fees payable to
the Agent or confidential information (the latter of which shall apply solely to
information provided prior to the date hereof) constitute the entire contract
among the parties relating to the subject matter hereof and supersede any and
all previous agreements and understandings, oral or written, relating to the
subject matter hereof.
SECTION 8.11. Jurisdiction, Etc. (a) Each of the parties hereto
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any New York State court or federal court of
the United States of America sitting in New York City, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in any such New York State court or, to the extent permitted by law,
in such federal court. Each of the parties hereto agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by
law. Nothing in this Agreement shall affect any right that any party may
otherwise have to bring any action or proceeding relating to this Agreement or
the Notes in the courts of any jurisdiction.
(b) Each of the parties hereto irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection that it
may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or the Notes in any New
York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.
SECTION 8.12. Waiver of Jury Trial. Each of the Borrower, the Agent
and the Lenders hereby irrevocably waives all right to trial by jury in any
action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to this Agreement or the Notes or the
actions of the Agent or any Lender in the negotiation, administration,
performance or enforcement thereof.
SECTION 8.13. Consent.
(a) The Borrower has requested that, notwithstanding anything
to the contrary in the Existing Credit Agreement, the Agent and the
requisite number of Lenders (as defined in the Existing Credit
Agreement) under Section 8.01 of the Existing Credit Agreement
permit the Borrower and certain of the Lenders (as defined in the
Existing Credit Agreement) to amend and restate the Existing Credit
Agreement as this Agreement; provided that concurrently with the
effectiveness of this Agreement each Lender (as defined in the
Existing Credit Agreement) that is not party to this Agreement (each
an "Exiting Lender") shall be released from all of its respective
rights (other than contingent indemnity rights) and obligations
under the Existing Credit Agreement as of the Effective Date (which
rights and obligations shall, without any representation or warranty
44
from any Exiting Lender and without recourse to any Exiting Lender,
thereafter be re-evidenced by the rights and obligations of the
Lenders party to this Agreement) and each Exiting Lender shall have
received an amount equal to its respective Loans outstanding under
the Existing Credit Agreement from the Lenders party to this
Agreement. Subject to the provisions of the preceding sentence, the
Agent and the requisite number of Lenders (as defined in the
Existing Credit Agreement) under Section 8.01 of the Existing Credit
Agreement hereby consent to the amendment and restatement of the
Existing Credit Agreement as this Agreement.
(b) The Borrower, the Lenders (as defined in the Three-Year
Credit Agreement) and the Agent agree that, upon (i) the execution
and delivery of this Agreement by each of the parties hereto and
(ii) the satisfaction (or waiver by the aforementioned parties) of
the conditions precedent set forth in Section 3.01, the unused
portions of the respective Commitments of the Lenders (as such terms
are defined in the Three-Year Credit Agreement) under the Three-Year
Credit Agreement shall be and hereby are terminated ratably in part
in the aggregate amount of $175,000,000.00 and to the extent any
such termination of the Commitments of the Lenders (as such terms
are defined in the Three-Year Credit Agreement) shall require that
prior written notice be received within a specified period of days
prior to such termination pursuant to the terms of Section 2.04 of
the Three-Year Credit Agreement, any such requirement is hereby
waived.
SECTION 8.14. USA Patriot Act Notification. The following
notification is provided to the Borrower pursuant to Section 326 of the USA
Patriot Act of 2001, 31 U.S.C. Section 5318:
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the
government fight the funding of terrorism and money laundering activities,
Federal law requires all financial institutions to obtain, verify, and record
information that identifies each person or entity that opens an account,
including any deposit account, treasury management account, loan, other
extension of credit, or other financial services product. What this means for
the Borrower: When the Borrower opens an account, the Agent and the Lenders will
ask for the Borrower's name, tax identification number, business address, and
other information that will allow the Agent and the Lenders to identify the
Borrower. The Agent and the Lenders may also ask to see the Borrower's legal
organizational documents or other identifying documents.
REMAINDER OF PAGE INTENTIONALLY BLANK
45
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their respective officers thereunto duly authorized, as of the
date first above written.
DTE ENERGY COMPANY
By /s/ X. X. Xxxxxx
--------------------------------
Name: X. X. Xxxxxx
Title: Assistant Treasurer
Borrower's FEIN: 00-0000000
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
Lenders
CITIBANK, N.A., Individually and as Administrative
Agent
By /s/ Xxxxx X. Xxxxxxxx
-----------------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Vice President
X.X. XXXXXX SECURITIES INC., as Co-Syndication
Agent
By /s/ Xxxxx X. Xxxxxx
-----------------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
BARCLAYS BANK PLC, as Co-Syndication Agent and as
a Lender
By /s/ Sydney X. Xxxxxx
-----------------------------------------------
Name: Sydney X. Xxxxxx
Title: Director
BANK ONE, NA (MAIN OFFICE - CHICAGO), as a Lender
By /s/ Xxxx Xxx Xxxx
-----------------------------------------------
Name: Xxxx Xxx Xxxx
Title: Director
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
BNP PARIBAS, as a Lender
By /s/ Xxxxxxx XxXxxxx
-----------------------------------------------
Name: Xxxxxxx XxXxxxx
Title: Managing Director
By /s/ Xxxx Xxxxxx
-----------------------------------------------
Name: Xxxx Xxxxxx
Title: Managing Director
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
COMERICA BANK, as a Lender
By /s/ Xxxxx X. Xxxx
-----------------------------------------------
Name: Xxxxx X. Xxxx
Title: Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
KEYBANK NATIONAL ASSOCIATION,
as Co-Documentation Agent and as a Lender
By /s/ Xxxxxxx X. Xxxxxx
-----------------------------------------------
Name: Xxxxxxx X. Xxxxxx
Title: Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
THE BANK OF NOVA SCOTIA, as a Lender
By /s/ Xxxxxxx Xxxxxxxx
-----------------------------------------------
Name: Xxxxxxx Xxxxxxxx
Title: Managing Director
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
THE BANK OF NEW YORK, as a Lender
By /s/ Xxxxxxx X. Xxxxxxx
-----------------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
UBS LOAN FINANCE LLC, as a Lender
By /s/ Xxxxxxx X. Saint
-----------------------------------------------
Name: Xxxxxxx X. Saint
Title: Director
By /s/ Xxxxxxx Xxxxxxxxx
-----------------------------------------------
Name: Xxxxxxx Xxxxxxxxx
Title: Associate Director
UBS SECURITIES LLC, as Co-Documentation Agent
By /s/ Xxxxxxx X. Saint
-----------------------------------------------
Name: Xxxxxxx X. Saint
Title: Director
By /s/ Xxxxxxx Xxxxxxxxx
-----------------------------------------------
Name: Xxxxxxx Xxxxxxxxx
Title: Associate Director
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
FIFTH THIRD BANK, EASTERN MICHIGAN, as a Lender
By /s/ Xxxxxx Xxxxxxx
-----------------------------------------------
Name: Xxxxxx Xxxxxxx
Title: Director
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
SUMITOMO MITSUI BANKING CORPORATION,
as a Lender
By /s/ Xxxxxxx X. Xxxx
-----------------------------------------------
Name: Xxxxxxx X. Xxxx
Title: General Manager
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
THE ROYAL BANK OF SCOTLAND plc, as a Lender
By /s/ Xxxxx Xxxxxxxx
-----------------------------------------------
Name: Xxxxx Xxxxxxxx
Title: Senior Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
UNION BANK OF CALIFORNIA N.A., as a Lender
By /s/ Xxxxxx X. Xxxxx
-----------------------------------------------
Name: Xxxxxx X. Xxxxx
Title: Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
COMMERZBANK AG, NEW YORK AND GRAND CAYMAN
BRANCHES, as a Lender
By /s/ Xxxxxxx Xxxx
-----------------------------------------------
Name: Xxxxxxx Xxxx
Title: Vice President
By /s/ Xxxxxx Xxxxxxx
-----------------------------------------------
Name: Xxxxxx Xxxxxxx
Title: Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS
CAYMAN ISLANDS BRANCH, as a Lender
By /s/ Xxxxx Xx
-----------------------------------------------
Name: Xxxxx Xx
Title: Vice President
By /s/ Xxxxxx Xxxxxxx
-----------------------------------------------
Name: Xxxxxx Xxxxxxx
Title: Associate
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender
By /s/ Xxxx Xxxxxxxx
-----------------------------------------------
Name: Xxxx Xxxxxxxx
Title: Director
By /s/ Xxxxxxx Xxxxxxxx
-----------------------------------------------
Name: Xxxxxxx Xxxxxxxx
Title: Director
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
BANK HAPOALIM B.M., as a Lender
By /s/ Xxxx Xxxx
-----------------------------------------------
Name: Xxxx Xxxx
Title: Vice President
By /s/ Xxxxxx Xxxxxxx
-----------------------------------------------
Name: Xxxxxx Xxxxxxx
Title: First Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
XXXXXXX STREET COMMITMENT CORPORATION, as a Lender
(Recourse only to assets of Xxxxxxx Street
Commitment Corporation)
By /s/ Xxxxxxxx X. Xxxx
-----------------------------------------------
Name: Xxxxxxxx X. Xxxx
Title: Chief Financial Officer
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
XXXXXX BROTHERS BANK, FSB, as a Lender
By /s/ Xxxx Xxxxxx
-----------------------------------------------
Name: Xxxx Xxxxxx
Title: Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
MELLON BANK, N.A., as a Lender
By /s/ Xxxx X. Xxxxxx
-----------------------------------------------
Name: Xxxx X. Xxxxxx
Title: Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
XXXXXX XXXXXXX BANK, as a Lender
By /s/ Xxxxxx Xxxxxx
-----------------------------------------------
Name: Xxxxxx Xxxxxx
Title: Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
UFJ BANK LIMITED, as a Lender
By /s/ Xxxxxxx X. Small
-----------------------------------------------
Name: Xxxxxxx X. Small
Title: Senior Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
STANDARD FEDERAL BANK, N.A., as a Lender
By /s/ Xxxxxxx X. Xxxxxxxx, III
-----------------------------------------------
Name: Xxxxxxx X. Xxxxxxxx, III
Title: First Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
THE NORTHERN TRUST COMPANY, as a Lender
By /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Title: Vice President
SIGNATURE PAGE TO DTE ENERGY COMPANY FIVE-YEAR CREDIT AGREEMENT
SCHEDULE I
DTE ENERGY COMPANY
APPLICABLE LENDING OFFICES
EURODOLLAR LENDING
NAME OF INITIAL LENDER DOMESTIC LENDING OFFICE OFFICE COMMITMENT
---------------------------- ------------------------------ ------------------ --------------
Citibank, N.A. Two Penns Way, Suite 200 Same as Domestic $32,846,153.86
Xxx Xxxxxx, Xxxxxxxx 00000 Lending Office
Attention: Xxxx Xxxxxxxxx
Telecopier: (000) 000-0000
Barclays Bank PLC 000 Xxxx Xxxxxx Same as Domestic $32,846,153.86
Xxx Xxxx, XX 00000 Lending Office
Attention: Xxxxxx Xxxxxx/
Xxxxx Xxxxxx
Telecopier: (000) 000-0000
Bank One, NA One Bank One Plaza Same as Domestic $32,846,153.85
Mail-Code IL 0-0000 Xxxxxxx Xxxxxx
Xxxxxxx, XX 00000
Attention: Xxxxxx X. Xxxxxx
Telecopier: (000) 000-0000
BNP Paribas 000 Xxxxxxx Xxxxxx Same as Domestic $26,923,076.92
Xxx Xxxx, XX 00000 Lending Office
Attention: Xxxxxxxxxx Xxxxxxx
Telecopier: (000) 000-0000
Comerica Bank 000 Xxxxxxxx Xxxxxx Same as Domestic $26,923,076.92
MC 0000 Xxxxxxx Xxxxxx
Xxxxxxx, XX 00000
Attention: Xxxxx X. Xxxx
Telecopier: (000) 000-0000
KeyBank National Association 000 Xxxxxx Xxxxxx Same as Domestic $26,923,076.92
Xxxxxxxxx, XX 0000 Lending Office
Attention: Xxxxxxxx Xxxxxx
Telecopier: (000) 000-0000
The Bank of Nova Scotia 000 Xxxxxxxxx Xxxxxx XX Same as Domestic $26,923,076.92
Xxxxx 0000 Xxxxxxx Xxxxxx
Xxxxxxx, XX 00000
Attention: Mystro Xxxxxxx
Telecopier: (000) 000-0000
The Bank of Xxx Xxxx Xxx Xxxx Xxxxxx Same as Domestic $26,923,076.92
Xxx Xxxx, XX 00000 Lending Office
Attention: Xxxxx D'Xxxxx
Telecopier: (000) 000-0000
UBS Loan Finance LLC 000 Xxxxxxxxxx Xxxxxxxxx Same as Domestic $26,923,076.92
Xxxxxxxx, XX 00000 Lending Office
Attention: Xxxxxx Xxxxx
Telecopier: (000) 000-0000
EURODOLLAR LENDING
NAME OF INITIAL LENDER DOMESTIC LENDING OFFICE OFFICE COMMITMENT
----------------------------------------------------- ------------------------------ ------------------ --------------
Fifth Third Bank, Eastern Michigan c/o Madisonville Operations Same as Domestic $26,923,076.92
Center Lending Office
MD 1M0C2B
Xxxxxxxxxx, XX 00000-0000
Attention: Xxxx Xxxxxxx
Telecopier: (000) 000-0000
Sumitomo Mitsui Banking Corporation 000 Xxxx Xxxxxx Same as Domestic $26,923,076.92
Xxx Xxxx, XX 00000 Lending Office
Attention: Xxxxx Xxxxxxxxxx
Telecopier: (000) 000-0000
The Royal Bank of Scotland plc 000 Xxxx Xxxxxx Same as Domestic $26,923,076.92
Xxx Xxxx, XX 00000 Lending Office
Attention: Xxxxxx Xxxx
Telecopier: (000) 000-0000
Union Bank of California N.A. Energy Capital Services Same as Domestic $26,923,076.92
000 X. Xxxxxxxx Xxxxxx, Xxxxxxx Xxxxxx
00xx Xxxxx
Xxx Xxxxxxx, XX 00000
Attention: Xxxxxx Xxxxx
Telecopier: (000) 000-0000
Commerzbank AG, New York and Grand Cayman Branches 2 World Financial Center Same as Domestic $21,538,461.54
Xxx Xxxx, XX 00000 Lending Office
Attention: Xxxxxxx Xxxx
Telecopier: (000) 000-0000
Credit Suisse First Boston, Acting through its Cayman 00 Xxxxxxx Xxxxxx Same as Domestic $21,538,461.54
Islands Branch Xxx Xxxx, XX 00000 Lending Office
Attention: Xxxxx Xx
Telecopier: (000) 000-0000
Deutsche Bank AG New York Branch 00 Xxxx Xxxxxx, 00xx Xxxxx Same as Domestic $21,538,461.54
Xxx Xxxx, XX 00000 Lending Office
Attention: Xxxx Xxxxxxxx
Telecopier: (000) 000-0000
Bank Hapoalim B.M. 117 Avenue of the Americas Same as Domestic $13,461,538.46
Xxx Xxxx, XX 00000 Lending Office
Attention: Xxxx Xxxx
Telecopier: (000) 000-0000
Xxxxxxx Street Commitment Corporation 00 Xxxxx Xxxxxx - 0xx Xxxxx Same as Domestic $13,461,538.46
Xxx Xxxx, XX 00000 Lending Office
Attention: Xxxxxx X. Xxxxx
Telecopier: (000) 000-0000
Xxxxxx Brothers Bank, FSB 000 Xxxxxxx Xxxxxx, 00xx Xxxxx Same as Domestic $13,461,538.46
Xxx Xxxx, XX 00000 Lending Office
Attention: Xxxxxxx Xxxx
Telecopier: (000) 000-0000
Mellon Bank, N.A. 3 Mellon Center - Room 1203 Same as Domestic $13,461,538.46
Xxxxxxxxxx, XX 00000 Lending Office
Attention: Xxxxx Xxxxx
Telecopier: (000) 000-0000
EURODOLLAR LENDING
NAME OF INITIAL LENDER DOMESTIC LENDING OFFICE OFFICE COMMITMENT
----------------------------------------------------- ------------------------------ ------------------ ---------------
Xxxxxx Xxxxxxx Bank 0000 Xxxx Xxxx Xxxxxxxxx Same as Domestic $ 13,461,538.46
Xxxxx 000 X Xxxxxxx Xxxxxx
Xxxx Xxxxxx Xxxx, XX 00000
Attention: Xxxxx Xxxxxxx
Telecopier: (000) 000-0000
UFJ Bank Limited 00 Xxxx 00xx Xxxxxx Same as Domestic $ 13,461,538.46
Xxx Xxxx, XX 00000 Lending Office
Attention: Xx. Xxxxxx Xxxx
Telecopier: (000) 000-0000
Standard Federal Bank, N.A. 2600 W. Big Beaver Same as Domestic $ 8,076,923.08
Xxxx, XX 00000 Lending Office
Attention: Xxxxxx Xxxxx
Telecopier: (000) 000-0000
The Northern Trust Company 00 X. XxXxxxx Xxxxxx Same as Domestic $ 3,769,230.77
Xxxxxxx, XX 00000 Lending Office
Attention: Funding Contact
Telecopier: (000) 000-0000
Total $525,000,000.00
PRICING SCHEDULE
LEVEL I STATUS LEVEL II STATUS LEVEL III STATUS LEVEL IV STATUS LEVEL V STATUS LEVEL VI STATUS
-------------- --------------- ---------------- --------------- -------------- ---------------
Applicable
Percentage 0.125% 0.150% 0.175% 0.250% 0.300% 0.425%
Applicable Margin
(Eurodollar Rate) 0.500% 0.600% 0.700% 0.875% 0.950% 1.075%
Applicable
Utilization
Fee 0.125% 0.125% 0.125% 0.125% 0.250% 0.250%
Applicable Margin 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
(Base Rate)
For the purposes of this Schedule, the following terms have the
following meanings, subject to the final paragraph of this Schedule:
"Level I Status" exists at any date if, on such date, the Borrower's
Xxxxx'x Rating is A3 or better or the Borrower's S&P Rating is A- or better.
"Level II Status" exists at any date if, on such date, (i) the
Borrower has not qualified for Level I Status and (ii) the Borrower's Xxxxx'x
Rating is Baa1 or better or the Borrower's S&P Rating is BBB+ or better.
"Level III Status" exists at any date if, on such date, (i) the
Borrower has not qualified for Level I Status or Level II Status and (ii) the
Borrower's Xxxxx'x Rating is Baa2 or better or the Borrower's S&P Rating is BBB
or better.
"Level IV Status" exists at any date if, on such date, (i) the
Borrower has not qualified for Level I Status, Level II Status or Level III
Status and (ii) the Borrower's Xxxxx'x Rating is Baa3 or better and the
Borrower's S&P Rating is BBB- or better.
"Level V Status" exists at any date if, on such date, (i) the
Borrower has not qualified for Level I Status, Level II Status, Level III
Status or Level IV Status and (ii)(a) the Borrower's Xxxxx'x Rating is Baa3 or
better and the Borrower's S&P Rating is BB+ or better or (b) the Borrower's
Xxxxx'x Rating is Bal or better and the Borrower's S&P Rating is BBB- or
better.
"Level VI Status" exists at any date if, on such date, the Borrower
has not qualified for Level I Status, Level II Status, Level III Status, Level
IV Status or Level V Status.
"Xxxxx'x Rating" means, at any time, the rating issued by Xxxxx'x
and then in effect with respect to the Borrower's senior unsecured long-term
debt securities without third-party credit enhancement.
"S&P Rating" means, at any time, the rating issued by S&P and then
in effect with respect to the Borrower's senior unsecured long-term debt
securities without third-party credit enhancement.
"Status" means Level I Status, Level II Status, Level III Status,
Level IV Status, Level V Status or Level VI Status.
The Applicable Margin, Applicable Utilization Fee and Applicable
Percentage shall be determined in accordance with the foregoing table based on
the Borrower's Status as determined from its then-current Xxxxx'x and S&P
Ratings. The credit rating in effect on any date for the purposes of this
Schedule is that in effect at the close of business on such date. If at any
time the Borrower does not have both a Xxxxx'x Rating and an S&P Rating, Level
VI Status shall exist.
Except as specifically provided above in this Schedule, in the
event that a split occurs between the two ratings, then the rating
corresponding to the higher of the two ratings shall apply. However, if the
split is greater than one level, then the pricing shall be based upon the
rating one level above the lower of the two ratings.
EXHIBIT A - FORM OF
REVOLVING CREDIT
PROMISSORY NOTE
U.S.$_______________________________Dated: ______________________, 200_
FOR VALUE RECEIVED, the undersigned, DTE ENERGY COMPANY, a Michigan
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
_________________________ (the "Lender") for the account of its Applicable
Lending Office on the Revolver Termination Date (each as defined in the Credit
Agreement referred to below), the principal sum of U.S.$ [amount of the Lender's
Commitment in figures] or, if less, the aggregate principal amount of the
Revolving Credit Advances made by the Lender to the Borrower pursuant to the
Amended and Restated Five-Year Credit Agreement dated as of October 15, 2004 (as
amended or modified from time to time, the "Credit Agreement"; the terms defined
therein being used herein as therein defined) among the Borrower, the Lender and
certain other lenders parties thereto, and Citibank, N.A., as Agent for the
Lender and such other lenders outstanding on the Revolver Termination Date.
The Borrower promises to pay interest on the unpaid principal amount
of each Revolving Credit Advance from the date of such Revolving Credit Advance
until such principal amount is paid in full, at such interest rates, and payable
at such times, as are specified in the Credit Agreement.
Both principal and interest are payable in lawful money of the
United States of America to Citibank, N.A., as Agent, at Xxx Xxxxx Xxx, Xxxxx
000, Xxx Xxxxxx, Xxxxxxxx 00000, Account No. 00000000, Attention: Xxxx
Xxxxxxxxx, in same day funds. Each Revolving Credit Advance owing to the Lender
by the Borrower pursuant to the Credit Agreement, and all payments made on
account of principal thereof, shall be recorded by the Lender and, prior to any
transfer hereof, endorsed on the grid attached hereto which is part of this
Promissory Note.
This Promissory Note is one of the Notes referred to in, and is
entitled to the benefits of, the Credit Agreement. The Credit Agreement, among
other things, (i) provides for the making of Revolving Credit Advances by the
Lender to the Borrower from time to time in an aggregate amount not to exceed at
any time outstanding the U.S. dollar amount first above mentioned, the
indebtedness of the Borrower resulting from each such Revolving Credit Advance
being evidenced by this Promissory Note, and (ii) contains provisions for
acceleration of the maturity hereof upon the happening of certain stated events
and also for prepayments on account of principal hereof prior to the maturity
hereof upon the terms and conditions therein specified.
DTE ENERGY COMPANY
By _____________________________
Title:
ADVANCES AND PAYMENTS OF PRINCIPAL
UNPAID
AMOUNT OF AMOUNT OF PRINCIPAL PRINCIPAL
DATE ADVANCE PAID OR PREPAID BALANCE NOTATION MADE BY
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EXHIBIT B - FORM OF NOTICE OF
REVOLVING CREDIT BORROWING
Citibank, N.A., as Agent for the Lenders parties
to the Credit Agreement referred to below
Xxx Xxxxx Xxx, Xxxxx 000
Xxx Xxxxxx, Xxxxxxxx 00000
Attention: Xxxxxxxx Xxxxx-Xxxxxxxx
[Date]
Ladies and Gentlemen:
The undersigned, DTE ENERGY COMPANY, refers to the Amended and
Restated Five-Year Credit Agreement dated as of October 15, 2004 (as amended or
modified from time to time, the "Credit Agreement"; the terms defined therein
being used herein as therein defined), among the undersigned, certain Lenders
parties thereto and Citibank, N.A., as Agent for said Lenders, and hereby gives
you notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement that
the undersigned hereby requests a Borrowing under the Credit Agreement, and in
that connection sets forth below the information relating to such Borrowing (the
"Proposed Borrowing") as required by Section 2.02(a) of the Credit Agreement:
(i) The Business Day of the Proposed Borrowing is _______________,
____.
(ii) The Type of Advances comprising the Proposed Borrowing is [Base
Rate Advances] [Eurodollar Rate Advances].
(iii) The aggregate amount of the Proposed Borrowing is
$_______________.
(iv) [The initial Interest Period for each Eurodollar Rate Advance
made as part of the Proposed Borrowing is _____ month[s].]
(v) [Wire transfer instructions].
The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the date of the Proposed
Borrowing:
(A) the representations and warranties contained in Section 4.01 of
the Credit Agreement are correct, before and after giving effect to the
Proposed Borrowing and to the application of the proceeds therefrom, as
though made on and as of such date; and
(B) no event has occurred and is continuing, or would result from
such Proposed Borrowing or from the application of the proceeds therefrom,
that constitutes a Default.
Very truly yours,
By ________________________________
Title: [Financial Officer]
EXHIBIT C - FORM OF
ASSIGNMENT AND ACCEPTANCE
Reference is made to the Amended and Restated Five-Year Credit
Agreement dated as of October 15, 2004 (as amended or modified from time to
time, the "Five-Year Credit Agreement") and to the Three-Year Credit Agreement
dated October 24, 2003 (as amended or modified from time to time, the "Three-
Year Credit Agreement", and together with the Five-Year Credit Agreement, the
"Credit Agreements") each among DTE Energy Company, a Michigan corporation (the
"Borrower"), the Lenders (as defined in each of the Credit Agreements) and
Citibank, N.A., as agent for the Lenders (the "Agent"). Terms defined in each of
the Credit Agreements are used herein with the same meaning.
The "Assignor" and the "Assignee" referred to on Schedule 1 hereto
agree as follows:
1. The Assignor hereby sells and assigns to the Assignee, and the
Assignee hereby purchases and assumes from the Assignor, (a) an interest in and
to the Assignor's rights and obligations under the Five-Year Credit Agreement as
of the date hereof (if any) equal to the percentage interest specified on
Schedule 1 hereto of all outstanding rights and obligations under the Five-Year
Credit Agreement, and (b) an interest in and to the Assignor's rights and
obligations under the Three-Year Credit Agreement as of the date hereof (if any)
equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Three-Year Credit Agreement. After
giving effect to such sale and assignment, the Assignee's Commitment and the
amount of the Revolving Credit Advances owing to the Assignee under each of the
Credit Agreements will be as set forth on Schedule 1 hereto.
2. The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with either of the Credit
Agreements or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of either of the Credit Agreements or any other instrument
or document furnished pursuant thereto; (iii) makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of the Borrower or the performance or observance by the Borrower of any of its
obligations under either of the Credit Agreements or any other instrument or
document furnished pursuant thereto; and (iv) attaches the Note or Notes held by
the Assignor, if any, and requests that the Agent exchange such Note or Notes
for a new Note or Notes payable to the order of the Assignee in an amount equal
to the Commitment assumed by the Assignee pursuant hereto and the applicable
Credit Agreement or new Notes payable to the order of the Assignee in an amount
equal to the Commitment assumed by the Assignee pursuant hereto and
the applicable Credit Agreement and the Assignor in an amount equal to the
Commitment retained by the Assignor under the applicable Credit Agreement,
respectively, as specified on Schedule 1 hereto.
3. The Assignee (i) confirms that it has received a copy of each of
the Credit Agreements, as applicable, together with copies of the financial
statements referred to in each Section 4.01 thereof and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Acceptance; (ii) agrees that it will,
independently and without reliance upon the Agent, the Assignor or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under each of the Credit Agreements ,as applicable; (iii) confirms that
it is an Eligible Assignee; (iv) appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers and discretion under
each of the Credit Agreements, as applicable, as are delegated to the Agent by
the terms thereof, together with such powers and discretion as are reasonably
incidental thereto; (v) agrees that it will perform in accordance with their
terms all of the obligations that by the terms of each of the Credit Agreements,
as applicable, are required to be performed by it as a Lender; and (vi) attaches
any U.S. Internal Revenue Service forms required under Section 2.13 of each of
the Credit Agreements.
4. Following the execution of this Assignment and Acceptance, it
will be delivered to the Agent for acceptance and recording by the Agent. The
effective date for this Assignment and Acceptance (the "Effective Date") shall
be the date of acceptance hereof by the Agent, unless otherwise specified on
Schedule 1 hereto.
5. Upon such acceptance and recording by the Agent, as of the
Effective Date, (i) the Assignee shall be a party to each of the Credit
Agreements, as applicable, and, to the extent provided in this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder and (ii) the
Assignor shall, to the extent provided in this Assignment and Acceptance,
relinquish its rights and be released from its obligations under each of the
Credit Agreements, as applicable.
6. Upon such acceptance and recording by the Agent, from and after
the Effective Date, the Agent shall make all payments under each of the Credit
Agreements ,as applicable, and the Notes in respect of the interest assigned
hereby (including, without limitation, all payments of principal, interest,
Facility Fees and the Utilization Fee with respect thereto) to the Assignee. The
Assignor and Assignee shall make all appropriate adjustments in payments under
each of the Credit Agreements, as applicable, and the Notes for periods prior to
the Effective Date directly between themselves.
7. This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of New York.
8. This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.
IN WITNESS WHEREOF, the Assignor and the Assignee have caused
Schedule 1 to this Assignment and Acceptance to be executed by their officers
thereunto duly authorized as of the date specified thereon.
Schedule 1
to
Assignment and Acceptance
Five-Year
Credit
Agreement
Percentage interest assigned: ___________%
Assignee's Commitment: $__________
Aggregate outstanding principal amount of Revolving Credit Advances assigned: $__________
Principal amount of Revolving Credit Advances payable to Assignee: $__________
Principal amount of Revolving Credit Advances payable to Assignor: $__________
Effective Date(1): $__________
Three-Year
Credit
Agreement
Percentage interest assigned: __________%
Assignee's Commitment: $__________
Aggregate Outstanding Credit Exposures assigned: $__________
Principal amount of Outstanding Credit Exposures payable to Assignee: $__________
Principal amount of Outstanding Credit Exposures payable to Assignor: $__________
Effective Date(2): $__________
[NAME OF ASSIGNOR], as Assignor
By __________________________________
--------------
(1) This date should be no earlier than five Business Days after the delivery
of this Assignment and Acceptance to the Agent.
(2) This date should be no earlier than five Business Days after the delivery
of this Assignment and Acceptance to the Agent.
Title:
Dated:
[NAME OF ASSIGNEE], as Assignee
By ________________________________
Title:
Dated:
Domestic Lending Office:
[Address]
Eurodollar Lending Office:
[Address]
Accepted [and Approved](3) this
day of
__________________________, As Agent
By ________________________________
Title:
[Approved this [ ] day of ________
DTE ENERGY COMPANY
By ________________________________
Title: ](4)
-----------------------
(3) Required if the Assignee is an Eligible Assignee solely by reason of
clause (viii) of the definition of "Eligible Assignee".
(4) To be added only if the consent of the Borrower is required by the terms
of the Credit Agreement.
EXHIBIT D - FORM OF CERTIFICATE
DTE ENERGY COMPANY
THE DETROIT EDISON COMPANY
MICHIGAN CONSOLIDATED GAS COMPANY
OFFICER'S CERTIFICATE
I, X. X. Xxxxxx, Assistant Treasurer of DTE ENERGY COMPANY ("DTE"),
THE DETROIT EDISON COMPANY ("DECO") and MICHIGAN CONSOLIDATED GAS COMPANY
("MichCon"), each a Michigan corporation (each a "Borrower" and collectively the
"Borrowers"), DO HEREBY CERTIFY, pursuant to Section 3.01 of each of (i) the
Amended and Restated Five-Year Credit Agreement, dated as of October 15, 2004,
among DTE, the financial institutions from time to time parties thereto (the
"DTE Lenders"), and Citibank, N.A., as agent for said DTE Lenders (the "DTE
Credit Agreement"), (ii) the Amended and Restated Five-Year Credit Agreement,
dated as of October 15, 2004, among DECO, the financial institutions from time
to time parties thereto (the "DECO Lenders") and Barclays Bank PLC, as agent for
said DECO Lenders (the "DECO Credit Agreement"), and (iii) the Amended and
Restated Five-Year Credit Agreement, dated as of October 15, 2004, among
MichCon, the financial institutions from time to time parties thereto (the
"MichCon Lenders", and, together with the DTE Lenders and the DECO Lenders, the
"Lenders") and Bank One, NA, as agent for said Lenders (the "MichCon Credit
Agreement", and together with the DTE Credit Agreement and the DECO Credit
Agreement, the "Credit Agreements"), that the terms defined in the Credit
Agreements are used herein as herein defined and, further, that:
1. The Effective Date shall be October 15, 2004.
2. The representation and warranties contained in Section 4.01 of
each of the Credit Agreements are true and current on and as of the date hereof.
3. No event has occurred and is continuing that constitutes a
Default.
4. No law or regulation is applicable that restrains, prevents or
imposes materially adverse conditions upon each Borrower with respect to the
transactions contemplated by the Loan Documents to which it is a party.
5. None of the Borrowers is a party to an indenture, loan or credit
agreement, lease, guarantee, mortgage, security agreement, bond, note or other
agreement or instrument, and there are no orders, writs, judgments, awards,
injunctions or decrees, that affect or purport to affect each Borrower's right
to borrow money or each Borrower's obligations under the Loan Documents to which
it is a party.
6. As of the date hereof, there are no loans outstanding under any
Existing Credit Agreement and all fees and amounts owed to the lender or agents
thereunder have been paid in full.
Dated as of the 15th day of October, 2004.
DTE ENERGY COMPANY
THE DETROIT EDISON COMPANY
MICHIGAN CONSOLIDATED GAS COMPANY
By _______________________________
Name: X. X. Xxxxxx
Title: Assistant Treasurer
EXHIBIT E-1 - FORM OF
OPINION OF ASSOCIATE GENERAL COUNSEL TO THE BORROWER
October 15, 2004
To each of the Lenders set forth
in Schedule A hereto
DTE Energy Company
The Detroit Edison Company
Michigan Consolidated Gas Company
Ladies and Gentlemen:
This opinion is furnished to you pursuant to (i) Section 3.01(g)(v)
of the Amended and Restated Five-Year Credit Agreement, dated as of October 15,
2004, among DTE Energy Company ("DTE"), the financial institutions from time to
time parties thereto (the "DTE Lenders"), and Citibank, N.A., as agent for said
DTE Lenders (the "DTE Credit Agreement"), (ii) Section 3.01(g)(v) of the Amended
and Restated Five-Year Credit Agreement, dated as of October 15, 2004, among The
Detroit Edison Company ("DECO"), the financial institutions parties thereto (the
"DECO Lenders") and Barclays Bank PLC, as agent for said DECO Lenders (the "DECO
Credit Agreement"), and (iii) Section 3.01(g)(v) of the Amended and Restated
Five-Year Credit Agreement, dated as of October 15, 2004, among Michigan
Consolidated Gas Company ("MichCon"), the financial institutions parties thereto
(the "MichCon Lenders", and together with the DTE Lenders and the DECO Lenders,
the "Lenders") and Bank One, NA (Main Office - Chicago), as agent for said
MichCon Lenders (the "MichCon Credit Agreement", and together with the DTE
Credit Agreement and the DECO Credit Agreement, the "Credit Agreements"). Terms
defined in each Credit Agreement are used herein as therein defined.
I am the Associate General Counsel of DTE, and the Vice President
and General Counsel of both DECO and MichCon, and have acted as counsel for each
of the Borrowers in connection with the preparation, execution and delivery of
the Loan Documents.
In that connection, I, in conjunction with the members of my staff,
have examined:
(i) Each Loan Document, executed by each of the parties thereto.
(ii) The other documents furnished by each of the Borrowers pursuant
to Article III of each of the Credit Agreements.
(iii) The Restated Articles of Incorporation of DTE, the Restated
Articles of Incorporation of DECO, and the Restated Articles of
Incorporation of MichCon and all amendments thereto (the "Charters").
(iv) The By-Laws of each of the Borrowers and all amendments thereto
(the "By-Laws").
(v) Certificates from the State of Michigan attesting to the
continued corporate existence and good standing of each of the Borrowers.
In addition, I have examined the originals, copies certified to my satisfaction,
of such other corporate records of each Borrower, certificates of public
officials and of officers of each Borrower, and agreements, instruments and
other documents, as I have deemed necessary as a basis for the opinions
expressed below. As to questions of fact material to such opinions, I have, when
relevant facts were not independently established by me, relied upon
certificates of public officials. I have assumed the due execution and delivery,
pursuant to due authorization, of each of the Credit Agreements by the Lenders
and the applicable Agent.
My opinions expressed below are limited to the law of the State of
Michigan and the federal law of the United States.
Based upon the foregoing and upon such investigation as I have
deemed necessary, I am of the following opinion:
1. Each of the Borrowers is a corporation duly organized, validly
existing and in good standing under the laws of the State of Michigan.
2. The execution, delivery and performance by each Borrower of the
Loan Documents to which it is party, and the consummation of the transactions
contemplated thereby, are within such Borrower's corporate powers, have been
duly authorized by all necessary corporate action, and do not contravene (i) the
Charters or the By-Laws of such Borrower or (ii) any law, rule or regulation
applicable to such Borrower, or (iii) any contractual restriction binding on or
affecting such Borrower.
3. No consent, authorization or approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body or any
other third party is required for the due execution, delivery, recordation,
filing or performance by each Borrower of the Loan Documents to which it is a
party, except in the case of DECO, the order of the Federal Energy Regulatory
Commission, which has been obtained.
4. Each respective Credit Agreement has been, and each of the
respective Notes when delivered will have been, duly executed and delivered on
behalf of the Borrower thereto.
5. Except as may have been disclosed to you in the SEC Reports, to
the best of my knowledge (after due inquiry) there are no pending or overtly
threatened actions or proceedings affecting any Borrower or any of its
respective Significant Subsidiaries before any court, governmental agency or
arbitrator that (i) could be reasonably likely to have a Material Adverse Effect
or (ii) purport to affect the legality, validity, or enforceability of any Loan
Documents to which such Borrower is a party or the consummation of the
transactions contemplated thereby.
6. In a properly presented case, a Michigan court or a federal court
sitting in the State of Michigan applying Michigan choice of law rules should
give effect to the choice of law provisions of the Loan Documents and should
hold that such Loan Documents are to be governed by the laws of the State of New
York rather than the laws of the State of Michigan. In rendering the foregoing
opinion, I note that by their terms the Loan Documents expressly select New York
law as the laws governing their interpretation and that the Loan Documents
governed by New York law were delivered by the parties thereto to the Agent in
New York. The choice of law provisions of the Loan Documents are not voidable
under the laws of the State of Michigan.
7. If, despite the provisions of Section 8.09 of each of the Credit
Agreements wherein the parties thereto agree that the Loan Documents shall be
governed by, and construed in accordance with, the laws of the State of New
York, a court of the State of Michigan or a federal court sitting in the State
of Michigan were to hold that the Loan Documents are governed by, and to be
construed in accordance with the laws of the State of Michigan, the respective
Loan Documents would be, under the laws of the State of Michigan, legal, valid
and binding obligations of the applicable Borrower, enforceable against such
Borrower in accordance with their respective terms.
8. Neither the Borrowers nor any of their Subsidiaries is an
"investment company," or an "affiliated person" of, or "promoter" or "principal
underwriter" for, an "investment company," as such terms are defined in the
Investment Company Act of 1940, as amended; DECO is a "public utility company"
and a "subsidiary company" of DTE, which is a "holding company" as such terms
are defined in the Public Utility Holding Company Act of 1935, as amended (the
"1935 Act"), and such "holding company" and DECO are currently exempt from the
provisions of the 1935 Act (except Section 9 thereof); and MichCon is a "public
utility company" and a "subsidiary company" of MichCon Holdings, Inc., which is
a "holding company" and a "subsidiary company" of DTE Enterprises, Inc., which
is a "holding company" and a "subsidiary company" of DTE, as such terms are
defined in the 1935 Act, and such
"holding companies" and MichCon are currently exempt from the provisions of the
1935 Act (except Section 9 thereof);
The opinions set forth above are subject to the following
qualifications:
(a)My opinion in paragraph 7 above as to enforceability is
subject to the effect of any applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or laws affecting
creditors' rights generally.
(b)My opinion in paragraph 7 above as to enforceability is
subject to the effect of general principles of equity, including,
without limitation, concepts of materiality, reasonableness, good
faith and fair dealing (regardless of whether considered in a
proceeding in equity or at law).
(c)I express no opinion as to participation and the effect of
the law of any jurisdiction other than the State of Michigan wherein
any Lender may be located or wherein enforcement of the Loan
Documents may be sought that limits the rates of interest legally
chargeable or collectible.
I am a member of the Bar of the State of Michigan, and do not
express any opinion concerning any law other than the law of the State of
Michigan and the federal laws of the United States of America.
This opinion letter is rendered to you in connection with the
above-described transaction. This opinion letter may not be relied upon by you
for any other purpose, or relied upon by any other person or entity without my
prior written consent (provided, that this opinion letter may be furnished to
and relied upon by a subsequent assignee of, or participant under, the Credit
Agreements and a Note, if any, solely for the purpose of such assignment or
participation, subject to the assumptions, limitations and qualifications, set
forth herein, without any prior written consent). I undertake no duty to
inform you or any assignee or participant of events occurring subsequent to the
date hereof.
Very truly yours,
Schedule A
Each of the Lenders party to the
Amended and Restated Five-Year
Credit Agreement, dated as of
October 15, 2004, among DTE,
Citibank, N.A., as Lender and
Agent, and X.X. Xxxxxx Securities
Inc. and Barclays Bank PLC, as
Co-Syndication Agents, and with
Citigroup Global Markets Inc., as
Lead Arranger and Sole Book
Runner.
Each of the Lenders party to the
Amended and Restated Five-Year
Credit Agreement, dated as of
October 15, 2004, among DECO,
Barclays Bank PLC, as Lender and
Agent, and Citigroup Global
Markets Inc. and X.X. Xxxxxx
Securities Inc., as Co-
Syndication Agents, and with
Barclays Capital and X.X. Xxxxxx
Securities Inc., as Co-Lead
Arrangers and Joint Book Runners.
Each of the Lenders party to the
Amended and Restated Five-Year
Credit Agreement, dated as of
October 15, 2004, among MichCon,
Bank One, NA, as Lender and
Agent, and Barclays Bank PLC and
Citigroup Global Markets Inc., as
Co-Syndication Agents, and with
X.X. Xxxxxx Securities Inc. and
Barclays Capital, as Co-Lead
Arrangers and Joint Book Runners.
EXHIBIT E-2 - FORM OF
OPINION OF HUNTON & XXXXXXXX LLP
HUNTON & XXXXXXXX LLP
000 XXXX XXXXXX
XXX XXXX, XXX XXXX 00000-0000
TEL 212 * 309 * 1000
FAX 212 * 309 * 1100
October 15, 2004
To each of the Lenders
listed on Schedule A hereto
DTE Energy Company
The Detroit Edison Company
Michigan Consolidated Gas Company
Ladies and Gentlemen:
This opinion is delivered to you pursuant to (i) Section 3.01(g)(v)
of the Amended and Restated Five-Year Credit Agreement, dated as of October 15,
2004, among DTE Energy Company ("DTE"), the financial institutions from time to
time parties thereto (the "DTE Lenders"), and Citibank, N.A., as agent for said
DTE Lenders (the "DTE Credit Agreement"), (ii) Section 3.01(g)(v) of the Amended
and Restated Five-Year Credit Agreement, dated as of October 15, 2004, among The
Detroit Edison Company ("DECO"), the financial institutions parties thereto (the
"DECO Lenders") and Barclays Bank PLC, as agent for said DECO Lenders (the "DECO
Credit Agreement"), and (iii) Section 3.01(g)(v) of the Amended and Restated
Five-Year Credit Agreement, dated as of October 15, 2004, among Michigan
Consolidated Gas Company ("MichCon", and together with DTE and DECO, the
"Borrowers"), the financial institutions parties thereto (the "MichCon Lenders",
and together with the DTE Lenders and the DECO Lenders, the "Lenders") and Bank
One, NA (Main Office - Chicago), as agent for said MichCon Lenders (the "MichCon
Credit Agreement", and together with the DTE Credit Agreement and the DECO
Credit Agreement, the "Credit Agreements"). Terms used herein which are defined
in each Credit Agreement shall have the respective meanings set forth in each
Credit Agreement, unless otherwise defined herein.
We have acted as special counsel to the Borrowers in connection with
the preparation, execution and delivery of the Credit Agreements.
In connection with this opinion we have examined a copy of each
Credit Agreement signed by each of the parties thereto. We have also examined
the originals, or duplicates or certified or conformed copies, of such records,
agreements, instruments and other documents and have made such other
investigations as we have deemed relevant and necessary in connection with the
opinions expressed herein. As to questions of fact material to this opinion, we
have relied upon certificates of public officials and of officers and
representatives of
the Borrowers. In addition, we have examined, and have relied as to matters of
fact upon, the representations made in the Credit Agreements.
In rendering the opinions set forth below, we have assumed the
genuineness of all signatures, the legal capacity of natural persons, the
authenticity of all documents submitted to us as originals, the conformity to
original documents of all documents submitted to us as duplicates or certified
or conformed copies, and the authenticity of the originals of such latter
documents. We have assumed without independent investigation that (a) the Loan
Documents have been duly authorized, executed and delivered by the Borrowers,
(b) the Borrowers have been duly incorporated and are validly existing and in
good standing under the laws of their jurisdictions of incorporation and have
the corporate power and authority to execute, deliver and perform their
obligations under the Loan Documents, (c) the execution, delivery and
performance of the Loan Documents by each of the Borrowers to which it is a
party (i) have been duly authorized by all necessary corporate action on their
part, (ii) do not contravene their certificates of incorporation or by-laws or,
except as set forth in paragraph 2 below, violate, or require any consent not
obtained under, any applicable law or regulation or any order, writ, injunction
or decree of any court or other governmental authority binding upon it and (iii)
do not violate, or require any consent not obtained under, any contractual
obligation applicable to or binding upon it, and (d) the Credit Agreements
constitute the valid and legally binding obligation of the applicable Agent and
the applicable Lenders.
Based upon and subject to the foregoing, and subject to the
assumptions, qualifications and comments set forth herein, we are of the
opinion that:
ARTICLE I: Each of the respective Credit Agreements is the legal, valid and
binding obligation of the applicable Borrower enforceable against such Borrower
in accordance with its respective terms. Each of the respective Notes issued
on the date hereof, if any, is the legal, valid and binding obligation of the
applicable Borrower, enforceable against such Borrower in accordance with its
respective terms.
ARTICLE II: The execution, delivery and performance by each of the Borrowers
of the Loan Documents to which it is a party will not violate any Federal or
New York statute or any rule or regulation issued pursuant to any Federal or
New York statute.
Our opinion in paragraph 1 above is subject to (i) the effect of any
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or laws affecting creditors' rights generally, (ii) general equitable
principles (regardless of whether enforcement is sought in a proceeding in
equity or at law) and (iii) an implied covenant of good faith and fair dealing.
We express no opinion with respect to: (a) the effect of any
provision of the Loan Documents that is intended (i) to establish any standard
as the measure of the performance by any party thereto of such party's
obligations of good faith, diligence, fair dealing, reasonableness or care or
(ii) to permit modification thereof only by means of an agreement in writing
signed by the parties thereto; (b) the effect of any provision of the Loan
Documents insofar as it provides that any Person purchasing a participation from
a Lender or other Person may exercise set-off or similar rights with respect to
such participation or that any Lender or other Person may exercise set-off or
similar rights other than in accordance with applicable law; (c) the effect of
any provision of the Loan Documents imposing penalties or forfeitures; (d) the
effect of any provision of the Loan Documents relating to indemnification or
exculpation in connection with violations of any securities laws or relating to
indemnification, contribution or exculpation in connection with willful,
reckless or criminal acts or gross negligence of the indemnified or exculpated
Person or the Person receiving contribution; (e) any provision of the Loan
Documents which purports to provide for a waiver by the Borrowers of any
immunity, defense or right which may be available to the Borrowers; and (f) any
provision of the Loan Documents which purports to establish an evidentiary
standard for determinations by any Person.
In connection with the provisions of the Credit Agreements whereby
the Borrowers submit to the jurisdiction of the courts of the United States of
America located in the State of New York, we note the limitations of 28 U.S.C.
{section}{section} 1331 and 1332 on subject matter jurisdiction of the Federal
courts. In connection with the provisions of the Credit Agreement that relate to
forum selection (including, without limitation, any waiver of any objection to
venue or any objection that a court is an inconvenient forum), we note that
under NYCPLR {section} 510, a New York State court may have discretion to
transfer the place of trial, and under 28 U.S.C. {section}1404(a), a United
States District Court has discretion to transfer an action from one Federal
court to another.
We are members of the Bar of the State of New York, and we do not
express any opinion concerning any law other than Federal law and the law of the
State of New York.
This opinion letter is rendered to you in connection with the
above-described transactions. This opinion letter may not be relied upon by you
for any other purpose, or relied upon by any other person or entity without our
prior written consent (provided, that this opinion Letter may be furnished to
and relied upon by a subsequent assignee of, or participant under, the Credit
Agreements and a Note, if any, solely for the purpose of such assignment or
participation, subject to the assumptions, limitations and qualifications set
forth herein without our prior written consent). We undertake no duty to inform
you or any assignee or participant of events occurring subsequent to the date
hereof.
Very truly yours,
Schedule A
Each of the Lenders party to the
Amended and Restated Five-Year
Credit Agreement, dated as of
October 15, 2004, among DTE,
Citibank, N.A., as Lender and
Agent, and X.X. Xxxxxx Securities
Inc. and Barclays Bank PLC, as
Co-Syndication Agents, and with
Citigroup Global Markets Inc., as
Lead Arranger and Sole Book
Runner.
Each of the Lenders party to the
Amended and Restated Five-Year
Credit Agreement, dated as of
October 15, 2004, among DECO,
Barclays Bank PLC, as Lender and
Agent, and Citigroup Global
Markets Inc. and X.X. Xxxxxx
Securities Inc., as Co-
Syndication Agents, and with
Barclays Capital and X.X. Xxxxxx
Securities Inc., as Co-Lead
Arrangers and Joint Book Runners.
Each of the Lenders party to the
Amended and Restated Five-Year
Credit Agreement, dated as of
October 15, 2004, among MichCon,
Bank One, NA, as Lender and
Agent, and Barclays Bank PLC and
Citigroup Global Markets Inc., as
Co-Syndication Agents, and with
X.X. Xxxxxx Securities Inc. and
Barclays Capital, as Co-Lead
Arrangers and Joint Book Runners.
EXHIBIT F - FORM OF
COMPLIANCE CERTIFICATE
COMPLIANCE CERTIFICATE
To: The Lenders parties to the
Credit Agreement Described Below
This Compliance Certificate is furnished pursuant to that certain
Amended and Restated Five-Year Credit Agreement, dated as of October 15, 2004
(as amended or modified from time to time, the "Agreement"; the terms defined
therein being used herein as therein defined) among DTE Energy Company, a
Michigan corporation (the "Borrower"), the lenders parties thereto, and
Citibank, N.A., as Agent for the lenders. Unless otherwise defined herein,
capitalized terms used in this Compliance Certificate have the meanings
ascribed thereto in the Agreement.
THE UNDERSIGNED HEREBY CERTIFIES THAT:
1. I am the duly elected _______________ of the Borrower;
2. I have reviewed the terms of the Agreement and I have made, or
have caused to be made under my supervision, a detailed review of the
transactions and conditions of the Borrower and its Subsidiaries during the
accounting period covered by the attached financial statements;
3. The examinations described in paragraph 2 did not disclose, and I
have no knowledge of, the existence of any condition or event which constitutes
an Event of Default or Default during or at the end of the accounting period
covered by the attached financial statements or as of the date of this
Certificate, except as set forth below; and
4. Schedule I attached hereto sets forth financial data and
computations evidencing the Borrower's compliance with certain covenants of the
Agreement, all of which data and computations are true, complete and correct.
Described below are the exceptions, if any, to paragraph 3 by
listing, in detail, the nature of the condition or event, the period during
which it has existed and the action which the Borrower has taken, is taking, or
proposes to take with respect to each such condition or event:
The foregoing certifications, together with the computations set
forth in Schedule I hereto and the financial statements delivered with this
Certificate in support hereof, are made and delivered this __ day of ____,___ .
DTE ENERGY COMPANY
By _________________________________
Name:
Title:
SCHEDULE 1 TO COMPLIANCE CERTIFICATE
Compliance as of _________, ____ with
Provisions of Section 5.01(h) of
the Agreement
FINANCIAL COVENANTS
Ratio of Consolidated EBITDA to Interest Expense on Debt (Section 6.01(j)(i)).
(A) Numerator: Consolidated EBITDA: $___________
(B) Denominator:
(i) Interest Expense on Debt: $___________
(ii) Minus: Interest Expense on all Nonrecourse Debt of $___________
the Borrower and its Subsidiaries:
(iii) Minus: Interest Expense on Excluded Hedging Debt: $___________
(iv) Minus: Interest Expense on Junior Subordinated $___________
Debt:
(v) Denominator: (B)(i) minus (B)(ii) through (B)(iv): $___________
(C) State whether the ratio of (A) to (B)(v) was not less than
2:1 for the twelve-month period ending on the last day
of __________: YES/NO
Ratio of Consolidated Debt to Capitalization (Section 6.01(j)(ii)).
(A) Numerator:
(i) Consolidated Debt: $___________
(ii) Minus: Nonrecourse Debt of the Borrower and its $___________
Subsidiaries:
(iii) Minus: Excluded Hedging Debt: $___________
(iv) Minus: Junior Subordinated Debt: $___________
(v) Numerator: (A)(i) minus A(ii) through A(iv): $___________
(B) Denominator: Capitalization (excluding all
Nonrecourse Debt): $___________
(C) State whether the ratio of (A)(v) to (B) was not greater
than .65:1: YES/NO
