1
Exhibit 4.2
EXECUTION COPY
U.S. $1,000,000,000
CREDIT AGREEMENT
Dated as of May 10, 2000
Among
XXXXXX DODGE CORPORATION
as Borrower
and
THE INITIAL LENDERS NAMED HEREIN
as Initial Lenders
and
XXXXXXX XXXXX BARNEY INC.
as Sole Arranger and Book Manager
and
BANK OF TOKYO-MITSUBISHI TRUST COMPANY
as Syndication Agent
and
CITIBANK, N.A.
as Administrative Agent
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TABLE OF CONTENTS
PAGE
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms .............................................. 1
SECTION 1.02. Computation of Time Periods ........................................ 13
SECTION 1.03. Accounting Terms ................................................... 13
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The Revolving Credit Advances ...................................... 13
SECTION 2.02. Making the Revolving Credit Advances ............................... 13
SECTION 2.03. The Competitive Bid Advances ....................................... 14
SECTION 2.04. Fees ............................................................... 17
SECTION 2.05. Optional Termination or Reduction of the Commitments ............... 17
SECTION 2.06. Repayment of Revolving Credit Advances ............................. 17
SECTION 2.07. Interest on Revolving Credit Advances .............................. 17
SECTION 2.08. Interest Rate Determination ........................................ 18
SECTION 2.09. Optional Conversion of Revolving Credit Advances ................... 19
SECTION 2.10. Prepayments of Revolving Credit Advances ........................... 19
SECTION 2.11. Requirements of Law ................................................ 20
SECTION 2.12. Illegality ......................................................... 20
SECTION 2.13. Payments and Computations .......................................... 21
SECTION 2.14. Taxes .............................................................. 22
SECTION 2.15. Sharing of Payments, Etc ........................................... 23
SECTION 2.16. Evidence of Debt ................................................... 23
SECTION 2.17. Extension of Termination Date ...................................... 24
ARTICLE III
CONDITIONS TO EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03 .... 26
SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing ............. 27
SECTION 3.04. Determinations Under Section 3.01 .................................. 28
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Borrower ..................... 28
ARTICLE V
COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants .............................................. 31
SECTION 5.02. Negative Covenants ................................................. 34
ARTICLE VI
EVENTS OF DEFAULT
SECTION 6.01. Events of Default .................................................. 36
ARTICLE VII
THE AGENT
SECTION 7.01. Authorization and Action ............................................ 38
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SECTION 7.02. Agent's Reliance, Etc .............................................. 38
SECTION 7.03. Citibank and Affiliates ............................................ 39
SECTION 7.04. Lender Credit Decision ............................................. 39
SECTION 7.05. Indemnification .................................................... 39
SECTION 7.06. Successor Agent .................................................... 39
SECTION 7.07. Other Agents ....................................................... 40
ARTICLE VIII
MISCELLANEOUS
SECTION 8.01. Amendments, Etc .................................................... 40
SECTION 8.02. Notices, Etc ....................................................... 40
SECTION 8.03. No Waiver; Remedies ................................................ 40
SECTION 8.04. Costs and Expenses ................................................. 40
SECTION 8.05. Right of Set-off ................................................... 41
SECTION 8.06. Binding Effect ..................................................... 42
SECTION 8.07. Assignments and Participations ..................................... 42
SECTION 8.08. Confidentiality .................................................... 44
SECTION 8.09. Governing Law ...................................................... 44
SECTION 8.10. Execution in Counterparts .......................................... 44
SECTION 8.11. Jurisdiction, Etc .................................................. 44
SECTION 8.12. Waiver of Jury Trial ............................................... 45
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Schedules
---------
Schedule II - Principal Domestic Subsidiaries and other Subsidiaries
Schedule III - Environmental Representation
Schedule IV - Disclosed Litigation
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CREDIT AGREEMENT
Dated as of May 10, 2000
XXXXXX DODGE CORPORATION, a New York corporation (the
"Borrower"), the banks, financial institutions and other institutional lenders
(the "Initial Lenders") listed on the signature pages hereof, XXXXXXX XXXXX
BARNEY INC., as sole arranger and book manager, BANK OF TOKYO-MITSUBISHI TRUST
COMPANY, as syndication agent, and CITIBANK, N.A. ("Citibank"), as
administrative agent (the "Agent") for the Lenders (as hereinafter defined),
agree 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):
"Advance" means a Revolving Credit Advance or a Competitive
Bid Advance.
"Affiliate" means, as to any Person, any other Person (other
than a Subsidiary) which, directly or indirectly, is in control of, is
controlled by, or is under common control with, such Person. For
purposes of this definition,"control" of a Person means the power,
directly or indirectly, either to (a) vote 20% or more of the
securities having ordinary voting power for the election of directors
of such Person or (b) direct or cause the direction of the management
and policies of such Person, whether by contract or otherwise.
"Agent's Account" means the account of the Agent maintained by
the Agent at Citibank at its office at 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx
Xxxx 00000, Account No. 00000000, Attention: Bank Loan Syndications.
"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 and, in the case of a Competitive Bid
Advance, the office of such Lender notified by such Lender to the Agent
as its Applicable Lending Office with respect to such Competitive Bid
Advance.
"Applicable Margin" means as of any date, a percentage per
annum determined by reference to the Public Debt Rating in effect on
such date as set forth below:
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Public Debt Rating Applicable Margin for Applicable Margin for
S&P/Xxxxx'x Base Rate Advances Eurodollar Rate Advances
----------- ------------------ ------------------------
Xxxxx 0
X/X0 or above 0.000% 0.160%
Xxxxx 0
X-/X0 0.000% 0.240%
Xxxxx 0
XXXx/Xxx0 0.000% 0.300%
Xxxxx 0
BBB/Baa2 0.000% 0.450%
Xxxxx 0
XXX-/Xxx0 0.000% 0.775%
Xxxxx 0
Xxxxx xxxx Xxxxx 0 0.000% 0.850%
"Applicable Percentage" means, as of any date a percentage per
annum determined by reference to the Public Debt Rating in effect on
such date as set forth below:
Public Debt Rating Applicable
S&P/Xxxxx'x Percentage
----------- ----------
Level 1
A/A2 or above 0.090%
Xxxxx 0
X-/X0 0.000%
Xxxxx 0
XXXx/Xxx0 0.150%
Xxxxx 0
XXX/Xxx0 0.000%
Xxxxx 0
XXX-/Xxx0 0.225%
Xxxxx 0
Xxxxx xxxx Xxxxx 0 0.350%
"Applicable Utilization Fee" means, as of any date that the
aggregate principal amount of the Advances exceeds 33% of the aggregate
Commitments, a percentage per annum determined by reference to the
Public Debt Rating in effect on such date as set forth below:
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Public Debt Rating Applicable
S&P/Xxxxx'x Utilization Fee
----------- ---------------
Level 1
A/A2 or above 0.100%
Xxxxx 0
X-/X0 0.000%
Xxxxx 0
XXXx/Xxx0 0.100%
Xxxxx 0
XXX/Xxx0 0.000%
Xxxxx 0
XXX-/Xxx0 0.125%
Xxxxx 0
Xxxxx xxxx Xxxxx 0 0.300%
"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.
"Assuming Lender" has the meaning specified in Section
2.17(c).
"Assumption Agreement" has the meaning specified in Section
2.17(c).
"Attributable Debt" means, at any time, the present value,
discounted at a rate per annum equal to the weighted average of the
interest rates for any Advances outstanding under this Agreement, and
if no Advances are outstanding under this Agreement, the Base Rate at
such time, compounded quarterly, of the obligation of the lessee for
rental payments (not including amounts payable by the lessee for
maintenance, property taxes and insurance) during the remaining term of
any lease (including any period for which such lease has been extended
or may, at the option of the lessor, be extended).
"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 announced publicly by
Citibank in New York, New York, from time to time, as
Citibank's base rate;
(b) the sum (adjusted to the nearest 1/32 of 1% or,
if there is no nearest 1/32 of 1%, to the next higher 1/32 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
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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 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 2.07(a)(i).
"Board of Directors" means the Board of Directors of the
Borrower, or the Executive Committee of the Board of Directors of the
Borrower.
"Borrowing" means a Revolving Credit Borrowing or a
Competitive Bid Borrowing.
"Business Day" means a day of the year on which banks are not
required or authorized by law to close in New York City and, if the
applicable Business Day relates to any Eurodollar Rate Advances or LIBO
Rate Advances, on which dealings are carried on in the London interbank
market.
"Capital Stock" means any and all shares, interests,
participants or other equivalents (however designated) of capital stock
of a corporation, any and all equivalent ownership interests in a
Person (other than a corporation) and any and all warrants or options
to purchase any of the foregoing.
"Capitalized Lease" means any Lease of property, real,
personal or mixed, in respect of which the present value (or some other
computation) of the minimum rental commitment thereunder would, in
accordance with GAAP in effect on the date such Lease is executed, be
capitalized on a balance sheet of the lessee.
"Capitalized Lease Obligation" means at any time, the
aggregate amounts which, in accordance with GAAP, are shown as
liabilities on the balance sheet of the lessee with respect to the
minimum rental commitment under a Capitalized Lease of the lessee.
"Code" means the Internal Revenue Code of 1986, as amended
from time to time.
"Commitment" means as to any Lender (a) the amount set forth
opposite such Lender's name on the signature pages hereof, (b) if such
Lender has become a Lender hereunder pursuant to an Assumption
Agreement, the amount set forth in such Assumption Agreement or (c) if
such Lender has entered into any Assignment and Acceptance, the amount
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 2.05.
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"Commonly Controlled Entity" means an entity, whether or not
incorporated, which is under common control with the Borrower within
the meaning of Section 4001 of ERISA or is part of a group which
includes the Borrower and which is treated as a single employer under
Section 414 of the Code.
"Competitive Bid Advance" means an advance by a Lender to the
Borrower as part of a Competitive Bid Borrowing resulting from the
competitive bidding procedure described in Section 2.03 and refers to a
Fixed Rate Advance or a LIBO Rate Advance.
"Competitive Bid Borrowing" means a borrowing consisting of
simultaneous Competitive Bid Advances from each of the Lenders whose
offer to make one or more Competitive Bid Advances as part of such
borrowing has been accepted under the competitive bidding procedure
described in Section 2.03.
"Competitive Bid Note" means a promissory note of the Borrower
payable to the order of any Lender, in substantially the form of
Exhibit A-2 hereto, evidencing the indebtedness of the Borrower to such
Lender resulting from a Competitive Bid Advance made by such Lender.
"Competitive Bid Reduction" has the meaning specified in
Section 2.01.
"Confidential Information" means information that the Borrower
furnishes to the Agent or any Lender, 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.
"Consenting Lender" has the meaning specified in Section
2.17(b).
"Consolidated" refers to the consolidation of accounts in
accordance with GAAP.
"Consolidated Tangible Net Worth" means at any date, the
excess at such date of total assets over total liabilities of the
Borrower and its consolidated subsidiaries determined in accordance
with GAAP, on a consolidated basis, excluding, however, from the
determination of total assets (i) all intangible assets such as
goodwill, trade names, trademarks, patents, organization expenses,
unamortized debt discount and expense and other like intangibles, (ii)
to the extent not already deducted from total assets, reserves for
depreciation, depletion, obsolescence and/or amortization of properties
and all other reserves or appropriations of retained earnings which, in
accordance with GAAP, should be established in connection with the
business conducted by the relevant corporation, and (iii) any
revaluation or other write-up in book value of assets subsequent to
December 31, 1999 except in accordance with GAAP.
"Contractual Obligation" means as to any Person, any provision
of any security issued by such Person or of any agreement, instrument
or other undertaking to which such Person is a party or by which it or
any of its property is bound.
"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 2.08 or 2.09.
"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.
"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 Assumption Agreement
or 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.
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"Effective Date" has the meaning specified in Section 3.01.
"Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a
Lender; and (iii) any other bank or financial institution other than an
Affiliate of 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 health, safety or 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 Laws" means any and all applicable foreign,
Federal, state, local or municipal laws, rules, orders, regulations,
statutes, ordinances, codes, decrees, requirements of any Governmental
Authority or other Requirements of Law (including common law)
regulating, relating to or imposing liability or standards of conduct
concerning protection of human health or the environment.
"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.
"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 Assumption Agreement
or 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 Revolving Credit
Borrowing, an interest rate per annum equal to the rate per annum
obtained by dividing (a) the rate per annum (rounded upward to the
nearest whole multiple of 1/32 of 1% per annum) appearing on Telerate
Page 3750 (or any successor page) as the London interbank offered rate
for deposits in U.S. dollars at approximately 11:00 A.M. (London time)
two Business Days prior to the first day of such Interest Period for a
term comparable to such Interest Period or, if for any reason such rate
is not available, the average (rounded upward to the nearest whole
multiple of 1/32 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 substantially equal to such Reference
Bank's Eurodollar Rate Advance comprising part of such Revolving Credit
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.
If Telerate Page 3750 (or any successor page) is unavailable, the
Eurodollar Rate for any Interest Period for each Eurodollar Rate
Advance comprising part of the same Revolving Credit Borrowing shall be
determined by the Agent on the
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basis of applicable rates furnished to and received by the Agent from
the Reference Banks two Business Days before the first day of such
Interest Period, subject, however, to the provisions of Section 2.08.
"Eurodollar Rate Advance" means a Revolving Credit Advance
that bears interest as provided in Section 2.07(a)(ii).
"Eurodollar Rate Reserve Percentage" for any Interest Period
for all Eurodollar Rate Advances or LIBO 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 or LIBO Rate Advances is determined) having a term equal
to such Interest Period.
"Events of Default" has the meaning specified in Section 6.01.
"Extension Date" has the meaning specified in Section 2.17(b).
"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.
"Financing Lease" means any lease of property, real or
personal, the obligations of the lessee in respect of which are
required in accordance with GAAP to be capitalized on a balance sheet
of the lessee.
"Fixed Rate Advances" has the meaning specified in Section
2.03(a)(i).
"GAAP" means generally accepted accounting principles in the
United States of America in effect from time to time.
"Governmental Authority" means any nation or government, any
state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.
"Guarantee" of a Person, at a particular date, means the sum
(without duplication) of the following: (a) guarantees or endorsements
(other than for purposes of collection in the ordinary course of
business) of, or obligations to purchase goods or services for the
purpose of supplying funds for the purchase or payment of,
indebtedness, liabilities or obligations of others, and other
contingent liabilities in respect of, or to purchase or otherwise
acquire or service, indebtedness, liabilities or obligations of others,
provided that any such obligation to purchase goods or services shall
be treated as Indebtedness only to the extent that payment thereunder
will be required (after giving effect to any provision limiting such
payments) if such property or services are not delivered to such
Person, and (b) all indebtedness in effect guaranteed by an agreement,
contingent or otherwise, to make any loan, advance, capital
contribution or other investment in the debtor for the purpose of
assuring a minimum equity, asset base, working capital or other balance
sheet condition for any
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date, or to provide funds for the payment of any liability, dividend or
stock liquidation payment, or otherwise to supply funds to or in any
manner invest in the debtor, but only to the extent of the liability of
such Person thereunder.
"Hazardous Materials" means (a) petroleum and petroleum
products, by products or breakdown products, radioactive materials,
asbestos-containing materials, polychlorinated biphenyls,
ureaformaldehyde and radon gas and (b) any other chemicals, materials,
substances or wastes designated, classified or regulated as hazardous
or toxic or as a pollutant or contaminant under any Environmental Law.
"Indebtedness" of a Person, at a particular date, means the
sum (without duplication) of the following: (a) all items of
indebtedness which in accordance with GAAP would be included in
determining total liabilities as shown on the liability side of a
balance sheet of such Person as at such date, (b) indebtedness for the
repayment of borrowed money secured by any Mortgage existing on a
Principal Property owned subject to such Mortgage, whether or not the
indebtedness secured thereby shall have been assumed, (c) Guarantees,
(d) Capitalized Lease Obligations and (e) Production Payments,
provided, however, that the term "Indebtedness" shall not include
liabilities in respect of advance payments made under contracts for the
sale of goods and/or services, or lease obligations other than
Capitalized Lease Obligations, or guarantees of any such liabilities or
lease obligations.
"Indebtedness for Money Borrowed" of a Person, at a particular
date, means the sum (without duplication) of the following (a) all
Indebtedness, whether or not represented by bonds, debentures, notes,
commercial paper or other securities, for the repayment of borrowed
money, (b) all deferred obligations for the payment of the purchase
price of property or assets purchased and secured by a purchase money
mortgage, conditional sale agreement, security agreement or any title
retention agreement, (c) Indebtedness of the character described in
clauses (b) and (c) of the definition of "Indebtedness" if such
Indebtedness relates to Indebtedness for Money Borrowed of others, (d)
Capitalized Lease Obligations and (e) Production Payments.
"Information Memorandum" means the information memorandum
dated April 2000 used by the Agent in connection with the syndication
of the Commitments.
"Insolvency" means, with respect to any Multiemployer Plan,
the condition that such Plan is insolvent within the meaning of Section
4245 of ERISA.
"Insolvent" means pertaining to a condition of Insolvency.
"Interest Period" means, for each Eurodollar Rate Advance
comprising part of the same Revolving Credit Borrowing and each LIBO
Rate Advance comprising part of the same Competitive Bid Borrowing, the
period commencing on the date of such Eurodollar Rate Advance or LIBO
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 or if available
by all Lenders, nine or twelve months, as the Borrower may, upon notice
received by the Agent not later than 2:00 P.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 Termination Date;
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(ii) Interest Periods commencing on the same date for
Eurodollar Rate Advances comprising part of the same Revolving
Credit Borrowing or for LIBO Rate Advances comprising part of
the same Competitive Bid 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 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.
"Lease" or "lease" means any lease or other similar
arrangement for the use of property and "lessee" thereunder shall
include any lessee or user thereunder.
"Lenders" means the Initial Lenders, each Assuming Lender that
shall become a party hereto pursuant to Section 2.17 and each Person
that shall become a party hereto pursuant to Section 8.07.
"LIBO Rate" means, for any Interest Period for all LIBO Rate
Advances comprising part of the same Competitive Bid Borrowing, an
interest rate per annum equal to the rate per annum obtained by
dividing (a) the rate per annum (rounded upward to the nearest whole
multiple of 1/32 of 1% per annum) appearing on Telerate Page 3750 (or
any successor page) as the London interbank offered rate for deposits
in U.S. dollars at approximately 11:00 A.M. (London time) two Business
Days prior to the first day of such Interest Period for a term
comparable to such Interest Period or, if for any reason such rate is
not available, the average (rounded upward to the nearest whole
multiple of 1/32 of 1% per annum, if such average is not such a
multiple) of the rate per annum at which deposits in U.S. dollars
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 substantially equal to the amount that
would be the Reference Banks' respective ratable shares of such
Borrowing if such Borrowing were to be a Revolving Credit 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. If the
Telerate Page 3750 (or any successor page) is unavailable, the LIBO
Rate for any Interest Period for each LIBO Rate Advance comprising part
of the same Competitive Bid Borrowing shall be determined by the Agent
on the basis of applicable rates furnished to and received by the Agent
from the Reference Banks two Business Days before the first day of such
Interest Period, subject, however, to the provisions of Section 2.08.
"LIBO Rate Advances" means a Competitive Bid Advance bearing
interest based on the LIBO Rate.
"Lien" means any mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or other), charge or
other security interest or any preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title
retention agreement and any Financing Lease having substantially the
same economic effect as any of the foregoing).
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"Loan Documents" means this Agreement and the Notes.
"Material Adverse Change" means a material adverse change in
the financial condition of the Borrower and its Consolidated
Subsidiaries taken as a whole from that reflected in the Borrower's
consolidated balance sheet as at December 31, 1999 referred to in
Section 4.01(a).
"Mortgage" means any mortgage, pledge, lien or other security
interest.
"Moody's" means Xxxxx'x Investors Service, Inc.
"Multiemployer Plan" a Plan which is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.
"Non-Consenting Lender" has the meaning specified in Section
2.17(b).
"Note" means a Revolving Credit Note or a Competitive Bid
Note.
"Notice of Competitive Bid Borrowing" has the meaning
specified in Section 2.03(a).
"Notice of Revolving Credit Borrowing" has the meaning
specified in Section 2.02(a).
"PBGC" means the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA.
"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 at a particular time, any employee benefit plan
which is covered by ERISA and in respect of which the Borrower or a
Commonly Controlled Entity is (or, if such plan were terminated at such
time, would under Section 4069 of ERISA be deemed to be) an "employer"
as defined in Section 3(5) of ERISA.
"Principal Domestic Subsidiary" means each of the Subsidiaries
designated as a "Principal Domestic Subsidiary" on Schedule II attached
hereto.
"Principal Property" means (a) any mineral property, located
within the United States of America or its territories or possessions,
of the Borrower or any Principal Domestic Subsidiary which is in
production, under development or included in estimates of reserves
published by the Borrower, (b) any concentrator, smelter, refinery, rod
mill, metal fabricating plant or similar processing or manufacturing
facility, located within the United States of America or its
territories or possessions, of the Borrower or any Principal Domestic
Subsidiary, or (c) any Capital Stock of, or any Indebtedness for Money
Borrowed owing to the Borrower or any other Principal Domestic
Subsidiary of, any Principal Domestic Subsidiary which owns any
Principal Property; provided, that Principal Property shall in any
event not include any property, facility or Principal Domestic
Subsidiary determined by the Board of Directors not to be of material
importance to the operations of the Borrower and the Principal Domestic
Subsidiaries taken as a whole.
"Production Payment" means any arrangement providing for the
sale, transfer or other disposition of (a) minerals (including coal and
hydrocarbons) until the transferee thereof shall realize therefrom a
specified
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amount of money (however determined) or a specified amount of such
minerals (however determined) or (b) any interest in minerals
(including coal and hydrocarbons) of the character commonly referred to
as a "production payment."
"Public Debt Rating" means, as of any date, the rating that
has been most recently announced by either S&P or Moody's, as the case
may be, for any class of non-credit enhanced long-term senior unsecured
debt issued by the Borrower. For purposes of the foregoing, (a) if only
one of S&P and Moody's shall have in effect a Public Debt Rating, the
Applicable Margin, the Applicable Percentage and the Applicable
Utilization Fee shall be determined by reference to the available
rating; (b) if neither S&P nor Moody's shall have in effect a Public
Debt Rating, the Applicable Margin and the Applicable Percentage will
be set in accordance with Level 6 under the definition of "Applicable
Margin", "Applicable Percentage" or "Applicable Utilization Fee", as
the case may be; (c) if the ratings established by S&P and Moody's
shall fall within different levels, the Applicable Margin, the
Applicable Percentage and the Applicable Utilization Fee shall be based
upon the higher rating except if the lower of such ratings is more than
one level below the higher of such ratings, the Applicable Margin, the
Applicable Percentage and the Applicable Utilization Fee shall be set
at the level that is one level above the lower of such ratings; (d) if
any rating established by S&P or Moody's shall be changed, such change
shall be effective as of the date on which such change is first
announced publicly by the rating agency making such change; and (e) if
S&P or Moody's shall change the basis on which ratings are established,
each reference to the Public Debt Rating announced by S&P or Moody's,
as the case may be, shall refer to the then equivalent rating by S&P or
Moody's, as the case may be.
"Reference Banks" means Citibank, Bank of Tokyo-Mitsubishi
Trust Company and Xxxxxx Guaranty Trust Company of New York.
"Register" has the meaning specified in Section 8.07(d).
"Reorganization" means with respect to any Multiemployer Plan,
the condition that such plan is in reorganization within the meaning of
Section 4241 of ERISA.
"Reportable Event" means any of the events set forth in
Section 4043(c) of ERISA, other than those events as to which the
thirty day notice period is waived under subsections .12, .13, .14,
.16, .18, .19 or .20 of PBGC Reg. SS2615.
"Required Lenders" means at any time Lenders owed at least a
majority in interest 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 at least a
majority in interest of the Commitments or, if no Revolving Credit
Advances are outstanding and the Commitments have been terminated,
Lenders having at least a majority in interest of the Competitive Bid
Advances, if any, then outstanding.
"Requirement of Law" as to any Person, means any applicable
law, treaty, rule or regulation or determination of an arbitrator or a
court or other Governmental Authority, in each case applicable to or
binding upon such Person or any of its property or to which such Person
or any of its property is subject.
"Responsible Officer" means the chief executive officer, the
president or any vice-president of the Borrower or, with respect to
financial matters, the chief financial officer, any vice-president with
responsibility primarily for accounting or financial matters, the
treasurer or the controller of the Borrower.
"Revolving Credit Advance" means an advance by a Lender to the
Borrower as part of a Revolving Credit Borrowing and refers to a Base
Rate Advance or a Eurodollar Rate Advance (each of which shall be a
"Type" of Revolving Credit Advance).
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"Revolving Credit Borrowing" means a borrowing consisting of
simultaneous Revolving Credit Advances of the same Type made by each of
the Lenders pursuant to Section 2.01.
"Revolving Credit Note" means a promissory note of the
Borrower payable to the order of any Lender, delivered pursuant to a
request made under Section 2.16 in substantially the form of Exhibit
A-1 hereto, evidencing the aggregate indebtedness of the Borrower to
such Lender resulting from the Revolving Credit Advances made by such
Lender.
"S&P" means Standard & Poor's, a division of The XxXxxx-Xxxx
Companies, Inc.
"Sale and Lease-Back Transactions" means any arrangement with
any Person providing for the leasing by the Borrower or a Principal
Domestic Subsidiary of any Principal Property (except for temporary
leases for a term of not more than three years), title to which
property has been or is to be sold or transferred by the Borrower or
such Principal Domestic Subsidiary to such Person, except for
arrangements with any Governmental Authority of the United States of
America or any of its territories or possessions entered into for the
purpose of financing all or any part of the purchase price or the cost
of constructing or improving the property subject to such arrangement.
"Single Employer Plan" means any Plan which is covered by
Title IV of ERISA, but which is not a Multiemployer Plan.
"Subsidiary" of any Person means a corporation, partnership or
other entity of which shares of stock or other ownership interests
having ordinary voting power (other than stock or such other ownership
interests having such power only by reason of the happening of a
contingency) to elect a majority of the board of directors or other
managers of such corporation, partnership or other entity are at the
time owned, or the management of which is otherwise controlled,
directly or indirectly through one or more intermediaries, or both, by
such Person. Unless otherwise qualified, all references to a
"Subsidiary" or to "Subsidiaries" in this Agreement shall refer to a
Subsidiary or Subsidiaries of the Borrower.
"Termination Date" means the earlier of (a) May 10, 2005,
subject to the extension thereof pursuant to Section 2.17 and (b) the
date of termination in whole of the Commitments pursuant to Section
2.05 or 6.01; provided, however, that the Termination Date of any
Lender that is a Non-Consenting Lender to any requested extension
pursuant to Section 2.17 shall be the Termination Date in effect
immediately prior to the applicable Extension Date for all purposes of
this Agreement.
"Total Capitalization" means, at any date, the sum of
Consolidated Tangible Net Worth at such date and Indebtedness for Money
Borrowed of the Borrower and its Consolidated Subsidiaries determined
in accordance with GAAP, on a consolidated basis, at such date.
"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.
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".
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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(a).
ARTICLE II
AMOUNTS AND TERMS OF THE 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 Termination Date in an
aggregate amount not to exceed at any time outstanding such Lender's Commitment
provided that the aggregate amount of the Commitments of the Lenders shall be
deemed used from time to time to the extent of the aggregate amount of the
Competitive Bid Advances then outstanding and such deemed use of the aggregate
amount of the Commitments shall be allocated among the Lenders ratably according
to their respective Commitments (such deemed use of the aggregate amount of the
Commitments being a "Competitive Bid Reduction"). Each Revolving Credit
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 2.10 and
reborrow under this Section 2.01.
SECTION 2.02. Making the Revolving Credit Advances. (a) Each
Revolving Credit Borrowing shall be made on notice, given not later than (x)
2:00 P.M. (New York City time) on the third Business Day prior to the date of
the proposed Revolving Credit Borrowing in the case of a Revolving Credit
Borrowing consisting of Eurodollar Rate Advances or (y) 11:00 A.M. (New York
City time) on the date of the proposed Revolving Credit Borrowing in the case of
a Revolving Credit 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 Revolving Credit Borrowing (a "Notice
of Revolving Credit Borrowing") shall be by telephone, confirmed immediately in
writing, or telecopier or telex in substantially the form of Exhibit B-1 hereto,
specifying therein the requested (i) date of such Revolving Credit Borrowing,
(ii) Type of Advances comprising such Revolving Credit Borrowing, (iii)
aggregate amount of such Revolving Credit Borrowing, and (iv) in the case of a
Revolving Credit Borrowing consisting of Eurodollar Rate Advances, initial
Interest Period for each such Revolving Credit Advance. Each Lender shall,
before 1:00 P.M. (New York City time) on the date of such Revolving Credit
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 Revolving Credit 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 at the Agent's address
referred to in Section 8.02.
(b) Anything in subsection (a) above to the contrary
notwithstanding, (i) the Borrower may not select Eurodollar Rate Advances for
any Revolving Credit Borrowing if the aggregate amount of such Revolving Credit
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 2.08 or
2.12 and (ii) the Eurodollar Rate Advances may not be outstanding as part of
more than ten separate Revolving Credit Borrowings.
(c) Each Notice of Revolving Credit Borrowing shall be
irrevocable and binding on the Borrower. In the case of any Revolving Credit
Borrowing that the related Notice of Revolving Credit Borrowing specifies is to
be comprised of Eurodollar Rate Advances, the Borrower shall indemnify each
Lender against any loss, cost or expense actually incurred by such Lender as a
result of any failure to fulfill on or before the date specified in
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such Notice of Revolving Credit Borrowing for such Revolving Credit Borrowing
the applicable conditions set forth in 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 Revolving Credit 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 date of any Revolving Credit Borrowing that such Lender will not
make available to the Agent such Lender's ratable portion of such Revolving
Credit Borrowing, the Agent may assume that such Lender has made such portion
available to the Agent on the date of such Revolving Credit 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 Revolving Credit 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 Revolving
Credit 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 Revolving Credit Borrowing shall not
relieve any other Lender of its obligation, if any, hereunder to make its
Revolving Credit Advance on the date of such Revolving Credit 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
Revolving Credit Borrowing.
SECTION 2.03. The Competitive Bid Advances. (a) Each Lender
severally agrees that the Borrower may make Competitive Bid Borrowings under
this Section 2.03 from time to time on any Business Day during the period from
the date hereof until the date occurring 30 days prior to the Termination Date
in the manner set forth below; provided that, following the making of each
Competitive Bid Borrowing, the aggregate amount of the Advances then outstanding
shall not exceed the aggregate amount of the Commitments of the Lenders
(computed without regard to any Competitive Bid Reduction).
(i) The Borrower may request a Competitive Bid Borrowing under
this Section 2.03 by delivering to the Agent, by telecopier or telex, a
notice of a Competitive Bid Borrowing (a "Notice of Competitive Bid
Borrowing"), in substantially the form of Exhibit B-2 hereto,
specifying therein the requested (v) date of such proposed Competitive
Bid Borrowing, (w) aggregate amount of such proposed Competitive Bid
Borrowing, (x) in the case of a Competitive Bid Borrowing consisting of
LIBO Rate Advances, Interest Period, or in the case of a Competitive
Bid Borrowing consisting of Fixed Rate Advances, maturity date for
repayment of each Fixed Rate Advance to be made as part of such
Competitive Bid Borrowing (which maturity date may not be earlier than
the date occurring 7 days after the date of such Competitive Bid
Borrowing or later than the Termination Date), (y) interest payment
date or dates relating thereto, and (z) other terms (if any) to be
applicable to such Competitive Bid Borrowing, not later than 2:00 P.M.
(New York City time) (A) at least one Business Day prior to the date of
the proposed Competitive Bid Borrowing, if the Borrower shall specify
in the Notice of Competitive Bid Borrowing that the rates of interest
to be offered by the Lenders shall be fixed rates per annum (the
Advances comprising any such Competitive Bid Borrowing being referred
to herein as "Fixed Rate Advances") and (B) at least four Business Days
prior to the date of the proposed Competitive Bid Borrowing, if the
Borrower shall instead specify in the Notice of Competitive Bid
Borrowing that the Advances comprising such Competitive Bid Borrowing
shall be LIBO Rate Advances. Each Notice of Competitive Bid Borrowing
shall be irrevocable and binding on the Borrower. The Agent shall in
turn promptly notify each
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Lender of each request for a Competitive Bid Borrowing received by it
from the Borrower by sending such Lender a copy of the related Notice
of Competitive Bid Borrowing.
(ii) Each Lender may, if, in its sole discretion, it elects to
do so, irrevocably offer to make one or more Competitive Bid Advances
to the Borrower as part of such proposed Competitive Bid Borrowing at a
rate or rates of interest specified by such Lender in its sole
discretion, by notifying the Agent (which shall give prompt notice
thereof to the Borrower), (A) before 9:30 A.M. (New York City time) on
the date of such proposed Competitive Bid Borrowing, in the case of a
Competitive Bid Borrowing consisting of Fixed Rate Advances and (B)
before 10:00 A.M. (New York City time) three Business Days before the
date of such proposed Competitive Bid Borrowing, in the case of a
Competitive Bid Borrowing consisting of LIBO Rate Advances of the
minimum amount and maximum amount of each Competitive Bid Advance which
such Lender would be willing to make as part of such proposed
Competitive Bid Borrowing (which amounts of such proposed Competitive
Bid may, subject to the proviso to the first sentence of this Section
2.03(a), exceed such Lender's Commitment, if any), the rate or rates of
interest therefor and such Lender's Applicable Lending Office with
respect to such Competitive Bid Advance; provided that if the Agent in
its capacity as a Lender shall, in its sole discretion, elect to make
any such offer, it shall notify the Borrower of such offer at least 30
minutes before the time and on the date on which notice of such
election is to be given to the Agent, by the other Lenders. If any
Lender shall elect not to make such an offer, such Lender shall so
notify the Agent before 10:00 A.M. (New York City time), and such
Lender shall not be obligated to, and shall not, make any Competitive
Bid Advance as part of such Competitive Bid Borrowing; provided that
the failure by any Lender to give such notice shall be deemed a refusal
by such Lender to make any Competitive Bid Advance as part of such
proposed Competitive Bid Borrowing.
(iii) The Borrower shall, in turn, (A) before 11:00 A.M. (New
York City time) on the date of such proposed Competitive Bid Borrowing,
in the case of a Competitive Bid Borrowing consisting of Fixed Rate
Advances and (B) before 2:00 P.M. (New York City time) three Business
Days before the date of such proposed Competitive Bid Borrowing, in the
case of a Competitive Bid Borrowing consisting of LIBO Rate Advances,
either:
(x) cancel such Competitive Bid Borrowing by giving
the Agent notice to that effect, or
(y) accept one or more of the offers made by any
Lender or Lenders pursuant to paragraph (ii) above, in its
sole discretion, by giving notice to the Agent of the amount
of each Competitive Bid Advance (which amount shall be equal
to or greater than the minimum amount, and equal to or less
than the maximum amount, notified to the Borrower by the Agent
on behalf of such Lender for such Competitive Bid Advance
pursuant to paragraph (ii) above) to be made by each Lender as
part of such Competitive Bid Borrowing, and reject any
remaining offers made by Lenders pursuant to paragraph (ii)
above by giving the Agent notice to that effect. The Borrower
shall accept the offers made by any Lender or Lenders to make
Competitive Bid Advances in order of the lowest to the highest
rates of interest offered by such Lenders. If two or more
Lenders have offered the same interest rate, the amount to be
borrowed at such interest rate will be allocated among such
Lenders in proportion to the largest amount that each such
Lender offered at such interest rate.
(iv) If the Borrower notifies the Agent that such Competitive
Bid Borrowing is cancelled pursuant to paragraph (iii)(x) above, the
Agent shall give prompt notice thereof to the Lenders and such
Competitive Bid Borrowing shall not be made.
(v) If the Borrower accepts one or more of the offers made by
any Lender or Lenders pursuant to paragraph (iii)(y) above, the Agent
shall in turn promptly notify (A) each Lender that has made an offer as
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described in paragraph (ii) above, of the date and aggregate amount of
such Competitive Bid Borrowing and whether or not any offer or offers
made by such Lender pursuant to paragraph (ii) above have been accepted
by the Borrower, (B) each Lender that is to make a Competitive Bid
Advance as part of such Competitive Bid Borrowing, of the amount of
each Competitive Bid Advance to be made by such Lender as part of such
Competitive Bid Borrowing, and (C) each Lender that is to make a
Competitive Bid Advance as part of such Competitive Bid Borrowing, upon
receipt, that the Agent has received forms of documents appearing to
fulfill the applicable conditions set forth in Article III. Each Lender
that is to make a Competitive Bid Advance as part of such Competitive
Bid Borrowing shall, before 12:00 noon (New York City time) on the date
of such Competitive Bid Borrowing specified in the notice received from
the Agent pursuant to clause (A) of the preceding sentence or any later
time when such Lender shall have received notice from the Agent
pursuant to clause (C) of the preceding sentence, make available for
the account of its Applicable Lending Office to the Agent at its
address referred to in Section 8.02, in same day funds, such Lender's
portion of such Competitive Bid Borrowing. Upon fulfillment of the
applicable conditions set forth in Article III and after receipt by the
Agent of such funds, the Agent will make such funds available to the
Borrower at the location specified by the Borrower in its Notice of
Competitive Bid Borrowing. Promptly after each Competitive Bid
Borrowing the Agent will notify each Lender of the amount of the
Competitive Bid Borrowing, the consequent Competitive Bid Reduction and
the dates upon which such Competitive Bid Reduction commenced and will
terminate.
(vi) If the Borrower notifies the Agent that it accepts one or
more of the offers made by any Lender or Lenders pursuant to paragraph
(iii)(y) above, such notice of acceptance shall be irrevocable and
binding on the Borrower. The Borrower shall indemnify each Lender
against any loss, cost or expense actually incurred by such Lender as a
result of any failure to fulfill on or before the date specified in the
related Notice of Competitive Bid Borrowing for such Competitive Bid
Borrowing the applicable conditions set forth in 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 Competitive Bid Advance to be made by such Lender as part of such
Competitive Bid Borrowing when such Competitive Bid Advance, as a
result of such failure, is not made on such date.
(b) Each Competitive Bid Borrowing shall be in an aggregate
amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof
and, following the making of each Competitive Bid Borrowing, the Borrower shall
be in compliance with the limitation set forth in the proviso to the first
sentence of subsection (a) above.
(c) Within the limits and on the conditions set forth in this
Section 2.03, the Borrower may from time to time borrow under this Section 2.03,
repay or prepay pursuant to subsection (d) below, and reborrow under this
Section 2.03, provided that a Competitive Bid Borrowing shall not be made within
three Business Days of the date of any other Competitive Bid Borrowing.
(d) The Borrower shall repay to the Agent for the account of
each Lender that has made a Competitive Bid Advance, on the maturity date of
each Competitive Bid Advance (such maturity date being that specified by the
Borrower for repayment of such Competitive Bid Advance in the related Notice of
Competitive Bid Borrowing delivered pursuant to subsection (a)(i) above and
provided in the Competitive Bid Note evidencing such Competitive Bid Advance),
the then unpaid principal amount of such Competitive Bid Advance. The Borrower
shall have no right to prepay any principal amount of any Competitive Bid
Advance unless, and then only on the terms, specified by the Borrower for such
Competitive Bid Advance in the related Notice of Competitive Bid Borrowing
delivered pursuant to subsection (a)(i) above and set forth in the Competitive
Bid Note evidencing such Competitive Bid Advance.
(e) The Borrower shall pay interest on the unpaid principal
amount of each Competitive Bid Advance from the date of such Competitive Bid
Advance to the date the principal amount of such Competitive Bid Advance is
repaid in full, at the rate of interest for such Competitive Bid Advance
specified by the Lender making such
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Competitive Bid Advance in its notice with respect thereto delivered pursuant to
subsection (a)(ii) above, payable on the interest payment date or dates
specified by the Borrower for such Competitive Bid Advance in the related Notice
of Competitive Bid Borrowing delivered pursuant to subsection (a)(i) above, as
provided in the Competitive Bid Note evidencing such Competitive Bid Advance.
Upon the occurrence and during the continuance of an Event of Default under
Section 6.01(a), the Borrower shall pay interest on the amount of unpaid
principal of and interest on each Competitive Bid Advance owing to a Lender that
is not paid when due, payable in arrears on the date or dates interest is
payable thereon, at a rate per annum equal at all times to 2% per annum above
the rate per annum required to be paid on such Competitive Bid Advance under the
terms of the Competitive Bid Note evidencing such Competitive Bid Advance unless
otherwise agreed in such Competitive Bid Note.
(f) The indebtedness of the Borrower resulting from each
Competitive Bid Advance made to the Borrower as part of a Competitive Bid
Borrowing shall be evidenced by a separate Competitive Bid Note of the Borrower
payable to the order of the Lender making such Competitive Bid Advance.
SECTION 2.04. Fees. (a) Facility Fee. The Borrower agrees to pay to the
Agent for the account of each Lender a facility fee on the aggregate amount of
such Lender's Commitment from the Effective Date in the case of each Initial
Lender and from the effective date specified in the Assumption Agreement or in
the Assignment and Acceptance pursuant to which it became a Lender in the case
of each other Lender until the Termination Date 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, commencing June 30,
2000, and on the 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.
SECTION 2.05. Optional Termination or Reduction of the
Commitments. The Borrower shall have the right, upon at least one Business Day's
notice to the Agent, to permanently 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 and provided further that the
aggregate amount of the Commitments of the Lenders shall not be reduced to an
amount that is less than the aggregate principal amount of the Competitive Bid
Advances then outstanding.
SECTION 2.06. Repayment of Revolving Credit Advances. The
Borrower shall repay to the Agent for the ratable account of the Lenders on the
Termination Date the aggregate principal amount of the Revolving Credit Advances
then outstanding.
SECTION 2.07. 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 plus (z) the
Applicable Utilization Fee, if any, 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 plus (z) the Applicable Utilization Fee, if
any, in effect from time to time, payable in arrears on the last day of
such Interest Period and, if such Interest
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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. Upon the occurrence and during the
continuance of an Event of Default under Section 6.01(a), the Borrower shall pay
interest on (i) the unpaid principal amount of each Revolving Credit Advance
owing to each Lender that is not paid when due, 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) 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 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 2.08. Interest Rate Determination. (a) Each Reference
Bank agrees to furnish to the Agent timely information for the purpose of
determining each Eurodollar Rate and each LIBO 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 2.07(a)(i) or (ii), and the rate, if any, furnished by each Reference
Bank for the purpose of determining the interest rate under Section 2.07(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 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 Advances
will automatically, on the last day of the then existing Interest Period
therefor, be Converted 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 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 Advances
into, Eurodollar Rate Advances shall be suspended.
(f) If Telerate Page 3750 is unavailable and fewer than two
Reference Banks furnish timely information to the Agent for determining the
Eurodollar Rate or LIBO Rate for any Eurodollar Rate Advances or LIBO Rate
Advances, as the case may be,
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(i) the Agent shall forthwith notify the Borrower and the
Lenders that the interest rate cannot be determined for such Eurodollar
Rate Advances or LIBO Rate Advances, as the case may be,
(ii) with respect to Eurodollar Rate Advances, each such
Advance will automatically, on the last day of the then existing
Interest Period therefor, be prepaid by the Borrower or be
automatically Converted 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 LIBO 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 2.09. Optional Conversion of Revolving Credit
Advances. The Borrower may on any Business Day, upon notice given to the Agent
not later than 2:00 P.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
2.08 and 2.12, Convert all Revolving Credit Advances of one Type comprising the
same Borrowing into Revolving Credit Advances of the other Type; 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 Revolving Credit 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
Advance. Each notice of Conversion shall be irrevocable and binding on the
Borrower.
SECTION 2.10. Prepayments of Revolving Credit Advances. The
Borrower may, upon notice at least two Business Days' prior to the date of such
prepayment, in the case of Eurodollar Rate Advances, and not later than 2:00
P.M. (New York City time) on the date of such prepayment, in the case of Base
Rate Advances, to the Agent 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 Revolving Credit 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).
SECTION 2.11. Requirements of Law. (a) If the adoption of or
any change in any Requirement of Law or in the interpretation or application
thereof or compliance by any Lender with any request or directive (whether or
not having the force of law) from any central bank or other Governmental
Authority made subsequent to the date hereof:
(i) shall subject any Lender to any tax of any kind whatsoever
with respect to any Eurodollar Rate Advance made by it, or change the
basis of taxation of payments to such Lender of principal, interest,
fees or any other amount payable in respect thereof (except for
Non-Excluded Taxes covered by Section 2.14 and changes in taxes imposed
on or measured by the overall net income of such Lender or its lending
office for such Advance);
(ii) shall impose, modify or hold applicable any reserve,
special deposit, compulsory loan or similar requirement against assets
held by, deposits or other liabilities in or for the account of,
advances,
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loans or other extensions of credit by, or any other acquisition of
funds by, any office of such Lender which is not otherwise included in
the determination of the Eurodollar Rate hereunder; or
(iii) shall impose on such Lender any other condition (except
for any condition covered by clauses (i) or (ii) above and not
specifically excluded from the coverage of such clauses by the terms
thereof);
and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making, converting into,
continuing or maintaining Eurodollar Rate Advances or to reduce any amount
receivable hereunder in respect thereof, then, in any such case, the Borrower
shall promptly pay such Lender, upon its demand, any additional amounts
necessary to compensate such Lender for such increased cost or reduced amount
receivable. If any Lender becomes entitled to claim any additional amounts
pursuant to this subsection, it shall promptly notify the Borrower in writing,
through the Agent, of the event by reason of which it has become so entitled;
provided, that the Borrower shall not be required to compensate a Lender for
costs in respect of any period beginning before the date which is 120 days prior
to the date on which the Borrower receives notice that such costs have been
imposed, or if such costs have been imposed retroactively, the period beginning
on such earlier date on which such costs shall have become effective (excluding,
however, any portion of such period which is after the date of adoption of or
change in the relevant Requirement of Law and more than 120 days prior to the
date on which the Borrower had received notice that such costs had been
imposed). A certificate as to any additional amounts payable pursuant to this
subsection submitted by such Lender, through the Agent, to the Borrower shall be
conclusive in the absence of manifest error.
(b) If any Lender shall have determined that the adoption
of or any change in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof does or shall have the effect of
reducing the rate of return on such Lender's or such corporation's capital as a
consequence of its obligations hereunder to a level below that which such Lender
or such corporation could have achieved but for such change or compliance
(taking into consideration such Lender's or such corporation's policies with
respect to capital adequacy) by an amount deemed by such Lender to be material,
then from time to time, after submission by such Lender to the Borrower (with a
copy to the Agent) of a written request therefor, the Borrower shall pay to such
Lender such additional amount or amounts as will compensate such Lender for such
reduction.
SECTION 2.12. Illegality. Notwithstanding any other
provision herein, if the adoption of or any change in any Requirement of Law or
in the interpretation or application thereof shall make it unlawful for any
Lender to make or maintain Eurodollar Rate Advances as contemplated by this
Agreement, (a) the commitment of such Lender hereunder to make Eurodollar Rate
Advances, continue Eurodollar Rate Advances as such and convert Base Rate
Advances to Eurodollar Rate Advances shall forthwith be canceled and (b) such
Lender's Revolving Credit Advances then outstanding as Eurodollar Rate Advances,
if any, shall be converted automatically to Base Rate Advances on the respective
last days of the then current Interest Periods with respect to such Revolving
Credit Advances or within such earlier period as required by law. If any such
conversion of a Eurodollar Rate Advance occurs on a day which is not the last
day of the then current Interest Period with respect thereto, the Borrower shall
pay to such Lender such amounts, if any, as may be required pursuant to Section
8.04(c).
SECTION 2.13. Payments and Computations. (a) The Borrower
shall make each payment hereunder not later than 2:00 P.M. (New York City time)
on the day when due to the Agent at the Agent's Account in same day funds. The
Agent will promptly thereafter cause to be distributed like funds relating to
the payment of principal or interest or fees ratably (other than amounts payable
pursuant to Section 2.03, 2.11, 2.14 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 any Assuming Lender becoming a Lender
hereunder
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as a result of an extension of the Termination Date pursuant to Section 2.17,
and upon the Agent's receipt of such Lender's Assumption Agreement and recording
of the information contained therein in the Register, from and after the
applicable Extension Date, the Agent shall make all payments hereunder and under
any Notes issued in connection therewith in respect of the interest assumed
thereby to the Assuming Lender. 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, the
LIBO Rate or the Federal Funds Rate or in respect of Fixed Rate Advances and of
fees 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 or fees 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 or fee, as the
case may be; provided, however, that, if such extension would cause payment of
interest on or principal of Eurodollar Rate Advances or LIBO 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 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 2.14. Taxes. (a) All payments made by the Borrower
under this Agreement and the Notes shall be made free and clear of, and without
deduction or withholding for or on account of, any present or future income,
stamp or other taxes, levies, imposts, duties, charges, fees, deductions or
withholdings, now or hereafter imposed, levied, collected, withheld or assessed
by any Governmental Authority ("Taxes"), excluding (i) Taxes imposed on the
Agent or any Lender as a result of a present or former connection between the
Agent or such Lender and the jurisdiction of the Governmental Authority imposing
such Tax or any political subdivision or taxing authority thereof or therein
(other than any such connection arising solely from the Agent or such Lender
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement or the Notes) and (ii) Taxes imposed by the
United States on any Lender other than as a result of a Change in Law relating
to such Lender (any such non-excluded Taxes, "Non-Excluded Taxes"). If any Taxes
are required to be withheld from any amounts payable to the Agent or any Lender
hereunder or under the Notes, (A) the Borrower or the Agent shall withhold and
deduct any such Taxes from such amounts, (B) the Borrower or the Agent shall pay
to or deposit with the appropriate taxing authority in a timely manner the full
amount of Taxes so withheld or deducted, (C) the Borrower or the Agent
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shall reasonably promptly send to the Agent or such Lender a certified copy of
an original official receipt received by the Borrower (or other documentation
reasonably acceptable to the Agent or such Lender) showing payment thereof, and
(D) if such Taxes are Non-Excluded Taxes, the amounts so payable to the Agent or
such Lender shall be increased to the extent necessary to yield to the Agent or
such Lender (after payment of all Non-Excluded Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts specified in this
Agreement and the Notes, provided, however, that the Borrower shall not be
required to increase any such amounts payable to any Lender that is not
organized under the laws of the United States of America or a state thereof if
such Lender fails to comply with the requirements of paragraph (b) of this
subsection. If the Borrower fails to pay any Non-Excluded Taxes when due to the
appropriate taxing authority or fails to remit to the Agent the required
documentary evidence set forth in clause (C) above, the Borrower shall indemnify
the Agent and the Lenders for any incremental Taxes, interest or penalties that
may become payable by the Agent or any Lender as a result of any such failure.
The agreements in this subsection shall survive the termination of this
Agreement and the payment of the Notes and all other amounts payable hereunder.
(b) Each Lender that is not incorporated under the laws
of the United States of America or a state thereof shall:
(i) on or prior to the date such Lender becomes a Lender
hereunder deliver to the Borrower and the Agent two duly completed and
accurate copies of United States Internal Revenue Service Form W-8BEN
or W-8ECI, or successor applicable form, as the case may be;
(ii) deliver to the Borrower and the Agent two further
duly completed and accurate copies of any such form or certification on
or before the date that any such form or certification expires or
becomes obsolete and after the occurrence of any event requiring a
change in the most recent form previously delivered by it to the
Borrower; and
(iii) obtain such extensions of time for filing and
complete such forms or certifications as may reasonably be requested by
the Borrower or the Agent;
unless in any such case an event (including, without limitation, any change in
treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Lender from duly completing and delivering any such
form with respect to it and such Lender so advises the Borrower and the Agent.
Such Lender shall make the certifications set forth in Form W-8BEN or W-8ECI, as
the case may be, in order to establish that it is entitled to receive payments
under this Agreement without deduction or withholding of any United States
federal income taxes and that it is entitled to an exemption from United States
backup withholding tax. As provided in subsection 8.07, each Person that shall
become a Lender pursuant to Section 8.07 and that is not incorporated under the
laws of the United States of America or any state thereof shall, upon the
effectiveness of the related transfer, be required to provide all of the forms
and statements required pursuant to this subsection. In addition, each Lender
shall, upon the written request of the Borrower, provide the Borrower with such
other forms, certificates or documentation as may be reasonably necessary to
claim any exemption from, or reduced rate of, Taxes for which the Borrower is
liable under this Section 2.14; provided that such action shall not cause the
imposition on such Lender of any material additional costs or legal, regulatory
or administrative burdens. If an event occurs after the date on which any form,
certificate or documentation is submitted by a Lender that renders such item or
the information set forth therein incorrect, such Lender shall promptly notify
the Borrower and the Agent in writing of such incorrectness.
(c) For purposes of this Section 2.14, "Change in Law"
shall mean, with respect to any Lender, a change in the Code, the Treasury
Regulations thereunder or any official interpretation thereof (or any officially
proposed changes in the interpretation thereof) or an amendment or revocation of
an applicable United States income tax treaty after the date such Lender
acquired its Notes.
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SECTION 2.15. 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 2.11, 2.14 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 2.15 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 2.16. Evidence of Debt. (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 owing to such Lender from time to time, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder in respect of Revolving Credit Advances. The Borrower agrees that upon
notice by any Lender to the Borrower (with a copy of such notice to the Agent)
to the effect that a Revolving Credit Note is required or appropriate in order
for such Lender to evidence (whether for purposes of pledge, enforcement or
otherwise) the Revolving Credit Advances owing to, or to be made by, such
Lender, the Borrower shall promptly execute and deliver to such Lender a
Revolving Credit Note payable to the order of such Lender in a principal amount
up to the Commitment of such Lender.
(b) The Register maintained by the Agent pursuant to
Section 8.07(d) shall include a control account, and a subsidiary account for
each Lender, in which accounts (taken together) shall be recorded (i) the date
and amount of each Borrowing made hereunder, the Type of Advances comprising
such Borrowing and, if appropriate, the Interest Period applicable thereto, (ii)
the terms of each Assumption Agreement and each Assignment and Acceptance
delivered to and accepted by it, (iii) the amount of any principal or interest
due and payable or to become due and payable from the Borrower to each Lender
hereunder and (iv) the amount of any sum received by the Agent from the Borrower
hereunder and each Lender's share thereof.
(c) Entries made in good faith by the Agent in the
Register pursuant to subsection (b) above, and by each Lender in its account or
accounts pursuant to subsection (a) above, shall be prima facie evidence of the
amount of principal and interest due and payable or to become due and payable
from the Borrower to, in the case of the Register, each Lender and, in the case
of such account or accounts, such Lender, under this Agreement, absent manifest
error; provided, however, that the failure of the Agent or such Lender to make
an entry, or any finding that an entry is incorrect, in the Register or such
account or accounts shall not limit or otherwise affect the obligations of the
Borrower under this Agreement.
SECTION 2.17. Extension of Termination Date. (a) At least 45
days but not more than 60 days prior to any anniversary of the Effective Date,
the Borrower, by written notice to the Agent, may request an extension of the
Termination Date in effect at such time by one year from its then scheduled
expiration. The Agent shall promptly notify each Lender of such request, and
each Lender shall in turn, in its sole discretion, not earlier than 30 days
prior to such anniversary date (and not later than 20 days prior to such
anniversary date), notify the Borrower and the Agent in writing as to whether
such Lender will consent to such extension. If any Lender shall fail to notify
the Agent and the Borrower in writing of its consent to any such request for
extension of the Termination Date at least 15 days prior to such anniversary
date, such Lender shall be deemed to be a Non-Consenting Lender with respect to
such request. The Agent shall notify the Borrower not later than 15 days prior
to such anniversary date of the decision of the Lenders regarding the Borrower's
request for an extension of the Termination Date.
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(b) If all the Lenders consent in writing to any such
request in accordance with subsection (a) of this Section 2.17, the Termination
Date in effect at such time shall, effective as at the applicable anniversary
date (the "Extension Date"), be extended for one year; provided that on each
Extension Date the applicable conditions set forth in Article III shall be
satisfied. If less than all of the Lenders consent in writing to any such
request in accordance with subsection (a) of this Section 2.17, the Termination
Date in effect at such time shall, effective as at the applicable Extension Date
and subject to subsection (d) of this Section 2.17, be extended as to those
Lenders that so consented (each a "Consenting Lender") but shall not be extended
as to any other Lender (each a "Non-Consenting Lender"). To the extent that the
Termination Date is not extended as to any Lender pursuant to this Section 2.17
and the Commitment of such Lender is not assumed in accordance with subsection
(c) of this Section 2.17 on or prior to the applicable Extension Date, the
Commitment of such Non-Consenting Lender shall automatically terminate in whole
on such unextended Termination Date without any further notice or other action
by the Borrower, such Lender or any other Person; provided that such
Non-Consenting Lender's rights under Sections 2.11, 2.14 and 8.04, and its
obligations under Section 7.05, shall survive the Termination Date for such
Lender as to matters occurring prior to such date. It is understood and agreed
that no Lender shall have any obligation whatsoever to agree to any request made
by the Borrower for any requested extension of the Termination Date.
(c) If less than all of the Lenders consent to any such
request pursuant to subsection (a) of this Section 2.17, the Agent shall
promptly so notify the Consenting Lenders, and each Consenting Lender may, in
its sole discretion, give written notice to the Agent not later than 10 days
prior to the Termination Date of the amount of the Non-Consenting Lenders'
Commitments for which it is willing to accept an assignment. If the Consenting
Lenders notify the Agent that they are willing to accept assignments of
Commitments in an aggregate amount that exceeds the amount of the Commitments of
the Non-Consenting Lenders, such Commitments shall be allocated among the
Consenting Lenders willing to accept such assignments in such amounts as are
agreed between the Borrower and the Agent. If after giving effect to the
assignments of Commitments described above there remains any Commitments of
Non-Consenting Lenders, the Borrower may arrange for one or more Consenting
Lenders or other Eligible Assignees (each, an "Assuming Lender") to assume,
effective as of the Extension Date, any Non-Consenting Lender's Commitment and
all of the obligations of such Non-Consenting Lender under this Agreement
thereafter arising, without recourse to or warranty by, or expense to, such
Non-Consenting Lender; provided, however, that the amount of the Commitment of
any such Assuming Lender as a result of such substitution shall in no event be
less than $25,000,000 unless the amount of the Commitment of such Non-Consenting
Lender is less than $25,000,000, in which case such Assuming Lender shall assume
all of such lesser amount; and provided further that:
(i) any such Consenting Lender or Assuming Lender shall
have paid to such Non-Consenting Lender (A) the aggregate principal
amount of, and any interest accrued and unpaid to the effective date of
the assignment on, the outstanding Advances, if any, of such
Non-Consenting Lender plus (B) any accrued but unpaid fees owing to
such Non-Consenting Lender as of the effective date of such assignment;
(ii) all additional costs reimbursements, expense
reimbursements and indemnities payable to such Non-Consenting Lender,
and all other accrued and unpaid amounts owing to such Non-Consenting
Lender hereunder, as of the effective date of such assignment shall
have been paid to such Non-Consenting Lender; and
(iii) with respect to any such Assuming Lender, the
applicable processing and recordation fee required under Section
8.07(a) for such assignment shall have been paid;
provided further that such Non-Consenting Lender's rights under Sections 2.11,
2.14 and 8.04, and its obligations under Section 7.05, shall survive such
substitution as to matters occurring prior to the date of substitution. At least
three Business Days prior to any Extension Date, (A) each such Assuming Lender,
if any, shall have delivered to the Borrower
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and the Agent agreement (an "Assumption Agreement"), duly executed by such
Assuming Lender, such Non-Consenting Lender, the Borrower and the Agent, (B) any
such Consenting Lender shall have delivered confirmation in writing satisfactory
to the Borrower and the Agent as to the increase in the amount of its Commitment
and (C) each Non-Consenting Lender being replaced pursuant to this Section 2.17
shall have delivered to the Agent any Note or Notes held by such Non-Consenting
Lender. Upon the payment or prepayment of all amounts referred to in clauses
(i), (ii) and (iii) of the immediately preceding sentence, each such Consenting
Lender or Assuming Lender, as of the Extension Date, will be substituted for
such Non-Consenting Lender under this Agreement and shall be a Lender for all
purposes of this Agreement, without any further acknowledgment by or the consent
of the other Lenders, and the obligations of each such Non-Consenting Lender
hereunder shall, by the provisions hereof, be released and discharged.
(d) If (after giving effect to any assignments or
assumptions pursuant to subsection (c) of this Section 2.17) all of the Lenders
having Commitments equal to at least 50% of the Commitments in effect
immediately prior to the Extension Date consent in writing to a requested
extension (whether by execution or delivery of an Assumption Agreement or
otherwise) as promptly as practicable, and in any event not later than one
Business Day prior to such Extension Date, the Agent shall so notify the
Borrower, and, subject to the satisfaction to the applicable conditions in
Article III, the Termination Date then in effect shall be extended for the
additional one-year period as described in subsection (a) of this Section 2.17,
and all references in this Agreement, and in the Notes, if any, to the
"Termination Date" shall, with respect to each Consenting Lender and each
Assuming Lender for such Extension Date, refer to the Termination Date as so
extended. Promptly following each Extension Date, the Agent shall notify the
Lenders (including, without limitation, each Assuming Lender) of the extension
of the scheduled Termination Date in effect immediately prior thereto and shall
thereupon record in the Register the relevant information with respect to each
such Consenting Lender and each such Assuming Lender.
ARTICLE III
CONDITIONS TO EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to Effectiveness of
Sections 2.01 and 2.03. Sections 2.01 and 2.03 of this Agreement shall become
effective on and as of the first date (the "Effective Date") on which the
following conditions precedent have been satisfied:
(a) There shall have occurred no Material Adverse Change
since December 31, 1999.
(b) Except as set forth on Schedule IV, there shall exist
no action, suit, investigation, litigation or proceeding affecting the
Borrower or any of its Subsidiaries pending or threatened before any
court, governmental agency or arbitrator that could reasonably be
expected to result in a Material Adverse Change.
(c) Nothing shall have come to the attention of the
Lenders during the course of their due diligence investigation to lead
them to believe that the Information Memorandum was or has become
misleading, incorrect or incomplete in any material respect; without
limiting the generality of the foregoing, the Lenders shall have been
given such access to the management, records, books of account,
contracts and properties of the Borrower and its Subsidiaries as they
shall have reasonably requested.
(d) All governmental and material third party consents
and approvals necessary in connection with the transactions
contemplated hereby shall have been obtained (without the imposition of
any conditions that are not reasonably acceptable to the Lenders) and
shall remain in effect, and no law or regulation shall be applicable in
the reasonable judgment of the Lenders that restrains, prevents or
imposes materially adverse conditions upon the transactions
contemplated hereby.
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(e) The Borrower shall have notified each Lender and the
Agent in writing as to the proposed Effective Date.
(f) The Borrower shall have paid all accrued fees and
expenses of the Agent and the Lenders (including the reasonable fees
and expenses of a single firm of counsel to the Agent) to the extent
invoiced to the Borrower at least one Business Day prior to the
Effective Date.
(g) 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.
(h) 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 the Revolving
Credit Notes) in sufficient copies for each Lender:
(i) The Revolving Credit Notes to the order of
the Lenders to the extent requested by any Lender pursuant to
Section 2.16.
(ii) Certified copies of the resolutions of the
Board of Directors of the Borrower approving this Agreement
and the Notes, and of all documents evidencing other necessary
corporate action and governmental approvals, if any, with
respect to this Agreement and the Notes.
(iii) A certificate of the Secretary or an
Assistant Secretary of the Borrower certifying the names and
true signatures of the officers of the Borrower authorized to
sign this Agreement and the Notes and the other documents to
be delivered hereunder.
(iv) Favorable opinions of (A) Assistant General
Counsel and Assistant Secretary to the Borrower substantially
in the form of Exhibit E-1 hereto and (B) Debevoise and
Xxxxxxxx, counsel to the Borrower, substantially in the form
of Exhibit E-2 hereto, and as to such other matters as any
Lender through the Agent may reasonably request.
(v) A favorable opinion of Shearman & Sterling,
counsel for the Agent, in form and substance satisfactory to
the Agent.
(i) The Borrower shall have terminated the commitments of
the lenders and repaid or prepaid all of the Indebtedness under, the
Second Amended and Restated Credit Agreement dated as of June 25, 1997
among the Borrower, the lenders parties thereto and The Chase Manhattan
Bank, as administrative agent.
SECTION 3.02. Conditions Precedent to Each Revolving Credit
Borrowing and Extension Date. The obligation of each Lender to make a Revolving
Credit Advance on the occasion of each Revolving Credit Borrowing and each
extension of Commitments pursuant to Section 2.17 shall be subject to the
conditions precedent that the Effective Date shall have occurred and on the date
of such Revolving Credit Borrowing or the applicable
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Extension Date (a) the following statements shall be true (and each of the
giving of the applicable Notice of Revolving Credit Borrowing, request for
Commitment Extension and the acceptance by the Borrower of the proceeds of such
Revolving Credit Borrowing shall constitute a representation and warranty by the
Borrower that on the date of such Borrowing or such Extension Date such
statements are true):
(i) the representations and warranties contained in
Section 4.01 (except, in the case of Revolving Credit Borrowings, the
representations set forth in subsection (b) or (f)(ii) thereof) are
correct on and as of such date, before and after giving effect to such
Revolving Credit Borrowing or such Extension Date and to the
application of the proceeds therefrom, as though made on and as of such
date, and
(ii) no event has occurred and is continuing, or would
result from such Revolving Credit Borrowing, such Extension Date 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. Conditions Precedent to Each Competitive Bid
Borrowing. The obligation of each Lender that is to make a Competitive Bid
Advance on the occasion of a Competitive Bid Borrowing to make such Competitive
Bid Advance as part of such Competitive Bid Borrowing is subject to the
conditions precedent that (i) the Agent shall have received the written
confirmatory Notice of Competitive Bid Borrowing with respect thereto, (ii) on
or before the date of such Competitive Bid Borrowing, but prior to such
Competitive Bid Borrowing, the Agent shall have received a Competitive Bid Note
payable to the order of such Lender for each of the one or more Competitive Bid
Advances to be made by such Lender as part of such Competitive Bid Borrowing, in
a principal amount equal to the principal amount of the Competitive Bid Advance
to be evidenced thereby and otherwise on such terms as were agreed to for such
Competitive Bid Advance in accordance with Section 2.03, and (iii) on the date
of such Competitive Bid Borrowing the following statements shall be true (and
each of the giving of the applicable Notice of Competitive Bid Borrowing and the
acceptance by the Borrower of the proceeds of such Competitive Bid Borrowing
shall constitute a representation and warranty by the Borrower that on the date
of such Competitive Bid Borrowing such statements are true):
(a) the representations and warranties contained in
Section 4.01 (except, in the case of Revolving Credit Borrowings, the
representations set forth in subsection (b) or (f)(ii) thereof) are
correct on and as of the date of such Competitive Bid Borrowing, before
and after giving effect to such Competitive Bid 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 Competitive Bid Borrowing or from the application of
the proceeds therefrom, that constitutes a Default.
SECTION 3.04. 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.
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ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Borrower.
The Borrower represents and warrants as follows:
(a) Financial Condition. The consolidated balance sheet
of the Borrower and its consolidated subsidiaries as at December 31, 1999 and
the related consolidated statements of income and of cash flows for the fiscal
year ended on such date, reported on by PricewaterhouseCoopers LLP, copies of
which have heretofore been furnished to each Lender, are complete and correct
and present fairly the consolidated financial condition of the Borrower and its
consolidated subsidiaries as at such date, and the consolidated results of their
operations and their consolidated cash flows for the fiscal years then ended.
All such financial statements, including the related schedules and notes
thereto, have been prepared in accordance with GAAP applied consistently
throughout the periods involved (except as approved by such accountants or
Responsible Officer, as the case may be, and as disclosed therein).
(b) No Change. No event or circumstance since December
31, 1999 has occurred or is existing which has resulted in, or after giving
effect to the reasonably projected outcome or effect thereof will result in, a
Material Adverse Change.
(c) Corporate Existence. The Borrower (i) is a
corporation duly organized, validly existing and in good standing under the laws
of the State of New York, (ii) has the corporate power and authority, and the
legal right, to own and operate its property, to lease the property it operates
as lessee and to conduct the business in which it is currently engaged and (iii)
is duly qualified as a foreign corporation and in good standing under the laws
of each jurisdiction where its ownership, lease or operation of property or the
conduct of its business requires such qualification except to the extent that
the failure to be so qualified would not reasonably be expected to result in a
Material Adverse Change.
(d) Corporate Power; Authorization; Enforceable
Obligations. The Borrower has the corporate power and authority, and the legal
right, to make, deliver and perform the Loan Documents and to borrow hereunder
and has taken all necessary corporate action to authorize the Borrowings on the
terms and conditions of this Agreement and the Notes and to authorize the
execution, delivery and performance of the Loan Documents. No consent or
authorization of, filing with, notice to or other act by or in respect of, any
Governmental Authority or any other Person is required in connection with the
Borrowings hereunder or the transactions contemplated hereby or with the
execution, delivery, performance, validity or enforceability of the Loan
Documents except such as have been obtained or made and are in full force and
effect. This Agreement has been, and each Note will be, duly executed and
delivered on behalf of the Borrower. This Agreement constitutes, and each Note
when executed and delivered will constitute, a legal, valid and binding
obligation of the Borrower enforceable against the Borrower in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).
(e) No Legal Bar. The execution, delivery and performance
of the Loan Documents, the borrowings hereunder and the use of the proceeds
thereof will not violate the certificate of incorporation, charter or by-laws of
the Borrower or any Requirement of Law or Contractual Obligation of the Borrower
or of any of its Principal Domestic Subsidiaries and will not result in, or
require, the creation or imposition of any Lien on any of its or their
respective properties or revenues pursuant to any provision of its certificate
of incorporation, charter or by-laws or any such Requirement of Law or
Contractual Obligation.
(f) No Material Litigation. No litigation, investigation
or proceeding (including any Environmental Action) of or before any arbitrator
or Governmental Authority is pending or, to the knowledge of the Borrower,
overtly
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threatened by or against the Borrower or any of its Principal Domestic
Subsidiaries or against any of its or their respective properties or revenues
(i) with respect to any of the Loan Documents or any of the transactions
contemplated hereby or thereby, or (ii) except as set forth on Schedule IV,
which after giving effect to the reasonably projected outcome or effect thereof,
will result in a Material Adverse Change.
(g) No Default. Neither the Borrower nor any of its
Principal Domestic Subsidiaries is in default under or with respect to any of
its Contractual Obligations in any respect which has resulted in or, after
giving effect to the reasonably projected outcome or effect thereof, will result
in, a Material Adverse Change. No Default has occurred and is continuing.
(h) Ownership of Property; Liens. Each of the Borrower
and its Principal Domestic Subsidiaries has good record and marketable title in
fee simple to, or a valid leasehold interest in, all its real property, and good
title to, or a valid leasehold interest in, all its other property, and none of
such property is subject to any Lien except as permitted by Section 5.02(b)
except to the extent that the absence of such title or leasehold interest has
not resulted in, and after giving effect to the reasonably projected outcome or
effect thereof, will not result in, a Material Adverse Change.
(i) Compliance with Law. The Borrower and each of its
Principal Domestic Subsidiaries is in compliance with all Requirements of Law
and Contractual Obligations except to the extent that the failure to comply
therewith has not resulted in, and, after giving effect to the reasonably
projected outcome or effect thereof, will not result in, a Material Adverse
Change.
(j) Taxes. Each of the Borrower and its Principal
Domestic Subsidiaries has filed or caused to be filed all tax returns which, to
the knowledge of the Borrower, are required to be filed and has paid all taxes
shown to be due and payable on said returns or on any assessments made against
it or any of its property and all other taxes, fees or other charges imposed on
it or any of its property by any Governmental Authority (other than any the
amount or validity of which are currently being contested in good faith by
appropriate proceedings and with respect to which reserves in conformity with
GAAP have been provided on the books of the Borrower or its Principal Domestic
Subsidiaries, as the case may be) and, to the knowledge of the Borrower, no tax
Lien (other than a Lien for taxes that are not yet due and payable) has been
filed, with respect to any such tax, fee or other charge which, in any case, has
resulted in, or after giving effect to the reasonably projected outcome or
effect thereof will result in, a Material Adverse Change.
(k) Federal Regulations. The Borrower is not engaged in
the business of extending credit for the purpose of "purchasing" or "carrying"
any "margin stock" within the respective meanings of each of the quoted terms
under Regulation U of the Board of Governors of the Federal Reserve System as
now and from time to time hereafter in effect and no proceeds of an Advance have
been or will be used for any purpose which violates the provisions of the
Regulations of such Board of Governors. At no time would the obligations of the
Borrower hereunder or under the Notes be directly or "indirectly secured" by
assets of the Borrower and its consolidated Subsidiaries that are "margin stock"
(pursuant to, and as such captioned terms are defined in, Section 221.2(g) of
Regulation U), provided that in any event not more than 25% of the value of the
assets of the Borrower and its consolidated Subsidiaries subject to such
arrangements shall be represented by such margin stock. If requested by any
Lender or the Agent, the Borrower will furnish to the Agent and each Lender a
statement to the foregoing effect in conformity with the requirements of FR Form
U-1 referred to in said Regulation U.
(l) ERISA. Neither a Reportable Event nor an "accumulated
funding deficiency" (within the meaning of Section 412 of the Code or Section
302 of ERISA) nor any other event has occurred during the five-year period prior
to the date on which this representation is made or deemed made with respect to
any Plan which has resulted in or, after giving effect to the reasonably
projected outcome or effect thereof, will result in, a Material Adverse Change.
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(m) Investment Company Act; Other Regulations. The
Borrower is not an "investment company", or a company "controlled" by an
"investment company", within the meaning of the Investment Company Act of 1940,
as amended. The Borrower is not subject to regulation under any Federal or state
statute or regulation which limits its ability to incur indebtedness of the type
being incurred by it pursuant to this Agreement.
(n) Subsidiaries. Set forth in Schedule II is a complete
and accurate list showing all Subsidiaries (other than inactive Subsidiaries)
existing as of the date of this Agreement, designating certain Subsidiaries as
Principal Domestic Subsidiaries and showing the jurisdiction of incorporation of
each Principal Domestic Subsidiary and the percentage of the outstanding shares
of Capital Stock of such Subsidiaries owned (directly or indirectly) by the
Borrower or any Subsidiary. All of the outstanding Capital Stock of each
Principal Domestic Subsidiary has been validly issued, is fully paid and
non-assessable and is owned by the Borrower or one or more of the Principal
Domestic Subsidiaries free and clear of all Liens. Each Principal Domestic
Subsidiary is duly incorporated, validly existing and in good standing under the
laws of the jurisdiction of its incorporation.
(o) Purpose of Advances. The proceeds of the Advances
shall be used by the Borrower for its general corporate purposes, including,
without limitation, working capital and acquisitions.
(p) Environmental Matters. Except as disclosed in the
Borrower's Annual Report on Form 10-K for fiscal year 1999, to the best
knowledge of the Borrower, the Borrower and each Principal Domestic Subsidiary
has complied with all applicable Environmental Laws, except for failures to
comply which have not resulted in, and after giving effect to the reasonably
projected outcome or effect thereof will not result in, a Material Adverse
Change. Except as disclosed in the Borrower's Annual Report on Form 10-K for
fiscal year 1999 or on Schedule III, to the best knowledge of the Borrower,
there are no events, conditions or circumstances involving the Borrower, any of
its Principal Domestic Subsidiaries or any Subsidiaries of such Principal
Domestic Subsidiaries with respect to management of any Hazardous Materials,
environmental pollution or contamination or employee health or safety which have
resulted in, or after giving effect to the reasonably projected outcome or
effect thereof will result in, a Material Adverse Change.
(q) Information. All written information provided by the
Borrower to the Agent or any Lender in connection with this Agreement or the
Loan Documents and the transactions contemplated hereby and thereby, at the date
hereof or (if provided after the date hereof) at the date it was provided (i) in
the case of any factual matter (excluding any such information referred to in
paragraph (ii)), is true and accurate in all material respects and (ii) in the
case of financial and business projections, budgets, pro forma data and
forecasts (all of the foregoing being, together, "Projections"), contained
therein, were prepared in good faith and on reasonable grounds (it being
understood by the parties hereto that such Projections are subject to
significant uncertainties and contingencies, many of which are beyond the
control of the Borrower and that no assurance can be given (without limiting any
other provision of this Agreement or the Loan Documents) that any such
Projections will be realized).
ARTICLE V
COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants. So long as any Advance
shall remain unpaid or any Lender shall have any Commitment hereunder, the
Borrower will:
(a) Financial Statements. Furnish to each Lender:
(i) as soon as available, but in any event
within 100 days after the end of each fiscal year of the Borrower, a
copy of the consolidated balance sheet of the Borrower and its
consolidated subsidiaries as at the end of such year and the related
consolidated statements of income and retained earnings and of cash
flows for such year, setting forth in each case in comparative form the
figures for the previous year,
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reported on without a "going concern" or like qualification or
exception, or qualification arising out of the scope of the audit, by
PricewaterhouseCoopers LLP or other independent certified public
accountants of nationally recognized standing; and
(ii) as soon as available, but in any event not
later than 55 days after the end of each of the first three quarterly
periods of each fiscal year of the Borrower, the unaudited consolidated
balance sheet of the Borrower and its consolidated subsidiaries as at
the end of such quarter and the related unaudited consolidated
statements of income and retained earnings and of cash flows of the
Borrower and its consolidated subsidiaries for such quarter and the
portion of the fiscal year through the end of such quarter, setting
forth in each case in comparative form the figures for the previous
year, certified by a Responsible Officer as being fairly stated in all
material respects (subject to normal year-end audit adjustments);
all such financial statements shall be complete and correct in all
material respects and shall be prepared in reasonable detail and in
accordance with GAAP applied consistently throughout the periods
reflected therein and with prior periods (except as approved by such
accountants or officer, as the case may be, and disclosed therein).
(b) Certificates; Other Information. Furnish to each
Lender:
(i) concurrently with the delivery of the
financial statements referred to in Section 5.01(a)(i), a certificate
of the independent certified public accountants reporting on such
financial statements stating that in making the examination necessary
therefor no knowledge was obtained of any Default (including
calculations demonstrating compliance with Section 5.02), except as
specified in such certificate;
(ii) concurrently with the delivery of the
financial statements referred to in Sections 5.01(a)(i) and (ii), a
certificate of a Responsible Officer stating that, to the best of such
Officer's knowledge, the Borrower during such period has observed or
performed all of its covenants and other agreements, and satisfied
every condition, contained in this Agreement and in the Notes to be
observed, performed or satisfied by it (including calculations
demonstrating compliance with Section 5.02), and that such Officer has
obtained no knowledge of any Default except as specified in such
certificate;
(iii) within ten days after the same are sent,
copies of all financial statements and reports which the Borrower sends
to its stockholders, and within ten days after the same are filed,
copies of all financial statements and periodic financial reports which
the Borrower may make to, or file with, the Securities and Exchange
Commission or any successor or analogous Governmental Authority; and
(iv) promptly, such additional financial and
other information as any Lender may from time to time reasonably
request.
(c) Payment of Taxes and Other Obligations. Pay,
discharge or otherwise satisfy, in all material respects, and cause its
Principal Domestic Subsidiaries to pay, discharge or otherwise satisfy, in all
material respects (i) all material taxes, assessments and governmental changes
or levies imposed on its property when due by it and (ii) at or before maturity
or otherwise in accordance with reasonable business practices, all its material
obligations of whatever nature; provided, that the Borrower or its Principal
Domestic Subsidiaries, as the case may be, may contest its obligations in good
faith by appropriate proceedings if it maintains reserves in conformity with
GAAP with respect thereto.
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(d) Conduct of Business and Maintenance of Existence.
Continue to engage in businesses of the same general types as now conducted by
it and preserve, renew and keep in full force and effect its corporate existence
and take all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of its business except that nothing
in this Section 5.01(d) shall prevent (i) the Borrower from discontinuing any
business if such discontinuance is, in the opinion of its Board of Directors, in
the best interests of the Borrower and is not disadvantageous in any material
respect to any Lender or the holder of any Note or (ii) the abandonment,
modification or termination of rights, privileges and franchises of the
Borrower, if such abandonment, modification or termination is, in the opinion of
the Board of Directors, in the best interests of the Borrower and is not
disadvantageous in any material respect to any Lender or the holder of any Note.
(e) Compliance With Laws, etc. Use commercially
reasonable efforts to comply, and to cause each Principal Domestic Subsidiary to
comply, in all material respects with all Requirements of Law and Contractual
Obligations except to the extent that failure to so comply would not, in the
reasonable judgment of the Borrower, be expected to result in a Material Adverse
Change, provided, however, that neither the Borrower nor any Principal Domestic
Subsidiary shall be required to comply with any Requirements of Law or
Contractual Obligations if the applicability or validity thereof shall currently
be contested in good faith by appropriate proceedings.
(f) Maintenance of Property; Insurance. Keep all
Principal Properties in good working order and condition except that nothing in
this Section 5.01(f) shall prevent the Borrower or any of its Principal Domestic
Subsidiaries from discontinuing the operation and maintenance of any of its
Principal Properties if such discontinuance is, in the opinion of the Board of
Directors of the Borrower, in the best interest of the Borrower and is not
disadvantageous in any material respect to any Lender or the holder of any Note;
maintain, and cause each Principal Domestic Subsidiary to maintain, with
financially sound and reputable insurance companies insurance on all its
property of a character usually insured by companies similarly situated and
operating like properties in at least such amounts and against at least such
risks as are usually insured against in the same general area by companies
engaged in the same or a similar business; and furnish to each Lender, upon
written request, full information as to the insurance carried. The Borrower and
any Principal Domestic Subsidiary may self-insure (which term shall include
insurance by an affiliated insurance company) against any of the risks required
to be insured against pursuant to this Section 5.01(f) so long as such
self-insurance is not excessive in the light of self-insurance by companies
similarly situated and operating like properties, provided, in the case of any
insurance required by law, that such risk is permitted to be self-insured under
applicable law and such self-insurance complies with applicable law.
(g) Inspection of Property; Books and Records;
Discussions. Keep, and cause each Principal Domestic Subsidiary to keep, proper
books of records and account in which full, true and correct entries in
conformity with GAAP and all Requirements of Law shall be made of all dealings
and transactions in relation to its business and activities; and permit, and
cause any Principal Domestic Subsidiary to permit, representatives of any
Lender, at such Lender's own expense, to visit and inspect any of its properties
and examine and make abstracts from any of its books and records at any
reasonable time and as often as may reasonably be desired and, after reasonable
notice to the Borrower, to discuss the business, operations, properties and
financial and other condition of the Borrower and its Principal Domestic
Subsidiaries with officers and employees of the Borrower and its Principal
Domestic Subsidiaries and with its independent certified public accountants.
(h) Notices. Promptly give notice to the Agent and each
Lender of:
(i) the occurrence of any Default;
(ii) any (A) default or event of default under
any Contractual Obligation of the Borrower or any of its
Subsidiaries or (B) litigation, investigation or proceeding
which may exist at any time between the Borrower or any of its
Subsidiaries and any Governmental Authority, unless in either
case,
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the Borrower has determined that such event has not resulted
in, or after giving effect to the reasonably projected outcome
or effect thereof will not result in, a Material Adverse
Change; and
(iii) the following events, as soon as possible
and in any event within 30 days after the Borrower knows or
has reason to know thereof: (A) the occurrence or reasonably
expected occurrence of any Reportable Event with respect to
any Plan, a failure to make any required contribution to a
Plan, the creation of any Lien in favor of the PBGC or a Plan
or any withdrawal from, or the termination, Reorganization or
Insolvency of, any Multiemployer Plan or (B) the institution
of proceedings or the taking of any other action by the PBGC
or the Borrower or any Commonly Controlled Entity or any
Multiemployer Plan with respect to the withdrawal from, or the
terminating, Reorganization or Insolvency of, any Plan which
with respect to the events in clause (A) or (B), individually
or in the aggregate, could reasonably be expected to involve
an amount of $15,000,000 or more.
Each notice pursuant to this subsection shall be accompanied
by a statement of a Responsible Officer setting forth details
of the occurrence referred to therein and stating what action
the Borrower proposes to take with respect thereto.
SECTION 5.02. Negative Covenants. So long as any Advance
shall remain unpaid or any Lender shall have any Commitment hereunder, the
Borrower will not:
(a) Financial Condition Covenants.
(i) Maintenance of Tangible Net Worth. Permit
Consolidated Tangible Net Worth at any time to be less than
$1,500,000,000.
(ii) Indebtedness for Money Borrowed to Total
Capitalization. Permit the ratio of Indebtedness for Money
Borrowed of the Borrower and its consolidated Subsidiaries
(determined on a consolidated basis in accordance with GAAP)
to Total Capitalization at any time to be greater than 0.6:1.
(b) Limitation on Mortgages, Sale and Leaseback, etc.
(i) The Borrower will not, nor will it permit
any Principal Domestic Subsidiary to, (i) issue, assume or
guarantee any Indebtedness for Money Borrowed, if such
Indebtedness for Money Borrowed is secured by a Lien upon, or
(ii) directly or indirectly secure any outstanding
Indebtedness for Money Borrowed by a mortgage upon, any
Principal Property now owned or hereinafter acquired;
provided, however, that the foregoing restriction shall not
apply to the following:
(A) Mortgages on any Principal Property
acquired, constructed or improved by the Borrower or
any Principal Domestic Subsidiary after the date of
this Agreement which are created or assumed
contemporaneously with, or within 90 days after, such
acquisition, construction or improvement to secure or
provide for the payment of any part of the purchase
price of such property or the cost of such
construction or improvement incurred after the date
of this Agreement, or, in addition to Mortgages
contemplated by clause (ii) below, Mortgages on any
Principal Property existing at the time of
acquisition thereof, provided, that in the case of
any such acquisition, construction or improvement the
Mortgage shall not apply to any property theretofore
owned by the Borrower or any Principal Domestic
Subsidiary, other than in the case of any such
construction or improvement, any theretofore
unimproved real property on which the property so
constructed, or the improvement, is located;
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(B) Mortgages on any Principal Property
owned by a corporation which is merged with or into,
or otherwise acquired by, the Borrower or a Principal
Domestic Subsidiary;
(C) Mortgages to secure Indebtedness
for Money Borrowed of a Principal Domestic Subsidiary
to the Borrower or to another Principal Domestic
Subsidiary;
(D) any extension, renewal or
replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Mortgage
referred to in the foregoing clauses (i) to (iii),
inclusive; provided, however, that the principal
amount of Indebtedness for Money Borrowed secured
thereby shall not exceed the principal amount of
Indebtedness for Money Borrowed so secured at the
time of such extension, renewal or replacement, and
that such extension, renewal or replacement shall be
limited to all or part of the property which secured
the mortgage so extended, renewed or replaced (plus
improvements on such property); and
(E) the issuance, assumption or
guarantee of secured Indebtedness for Money Borrowed
which would otherwise be subject to the foregoing
restrictions of this subsection 5.02(b) in an
aggregate amount which, together with all other such
Indebtedness for Money Borrowed of the Borrower and
its Principal Domestic Subsidiaries and the
Attributable Debt in respect of Sale and Lease-Back
Transactions (other than Sale and Lease-Back
Transactions permitted because the Borrower would be
entitled to incur Indebtedness for Money Borrowed
secured by a mortgage on the property to be leased
pursuant to the provisions of this Section 5.02(b)
and other than Sale and Lease-Back Transactions the
proceeds of which have been applied in accordance
with the limitations on Sale and Lease-Back
Transactions set forth in Section 5.02(b)(ii) below)
does not at the time exceed 10% of Consolidated
Tangible Net Worth.
For the purposes of this Section 5.02(b), the following types
of transactions, among others, shall not be deemed to create
Indebtedness for Money Borrowed secured by a mortgage:
(A) Production Payments; and
(B) Mortgages in favor of the United
States of America, any of its territories or
possessions, or any State thereof, or any department,
agency, instrumentality or political subdivision of
any thereof, or any department, agency or
instrumentality of any such political subdivision, to
secure partial progress, advance or other payments
pursuant to any contract or statute or to secure any
indebtedness incurred for the purpose of financing
all or any part of the purchase price or the cost of
constructing or improving the property subject to
such Mortgages.
(ii) The Borrower will not, nor will it permit
any Principal Domestic Subsidiary to, enter into any Sale and
Lease-Back Transaction, unless the proceeds of such sale or
transfer are at least equal to the fair value (as determined
by the Board of Directors) of such property and either (A) the
Borrower or such Principal Domestic Subsidiary would be
entitled to incur Indebtedness for Borrowed Money secured by a
mortgage on the property to be leased pursuant to this Section
5.02(b) or (B) the Borrower shall, and in any such case the
Borrower covenants that it will, apply an amount equal to the
fair value (as determined by the Board of Directors) of the
property so leased to the retirement (other than any mandatory
retirement), within 90 days of the effective date of any such
Sale and Lease-Back Transaction, of Indebtedness for Money
Borrowed of the Borrower or such Principal Domestic Subsidiary
which by its terms matures at, or is extendible or renewable
at the option of the obligor to, a date more than twelve
months after the date of the creation of such Indebtedness for
Money Borrowed and which ranks prior to or on a parity with
the Advances; provided, however that the Borrower or any
Principal Domestic Subsidiary may enter into any Sale and
Lease-Back Transaction which would otherwise be subject to the
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foregoing restrictions of this Section 5.02(b)(iii) if the
amount of the Attributable Debt in respect of such Sale and
Lease-Back Transactions for such transaction, together with
all secured Indebtedness for Money Borrowed of the Borrower
and its Principal Domestic Subsidiaries and all other
Attributable Debt in respect of Sale and Lease-Back
Transactions existing at such time (other than Sale and
Lease-Back Transactions permitted because the Borrower would
be entitled to incur Indebtedness for Money Borrowed secured
by a Lien on the property to be leased and other than Sale and
Lease-Back Transactions the proceeds of which have been
applied in accordance with the clause (B) of this subsection),
does not at the time exceed 10% of Consolidated Tangible Net
Worth.
(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 the assets (whether now
owned or thereafter acquired) of the Borrower and its Subsidiaries, taken as a
whole, to, any Person, or permit any of its Subsidiaries to do so, except that
(i) any Subsidiary of the Borrower may merge or consolidate with or into, or
dispose of substantially all of its assets to, one or more other Subsidiaries of
the Borrower, and any Subsidiary of the Borrower may merge into or dispose of
substantially all or substantially all of its assets to the Borrower and one or
more other Subsidiaries, (ii) the Borrower may merge with any other Person so
long as the Borrower is the surviving corporation and (iii) any Subsidiary of
the Borrower may merge or consolidate with or into, or dispose of all or
substantially all of its assets to, any Person so long as such merger or
disposition does not (whether in one transaction or in a series of transactions)
constitute a disposition of all or substantially all of the assets of the
Borrower and its Subsidiaries, taken as a whole, provided, that, in the case of
any merger or consolidation in accordance with clause (i) above in which a
Principal Domestic Subsidiary merges or consolidates with any Subsidiary (other
than another Principal Domestic Subsidiary) of the Borrower, such Principal
Domestic Subsidiary is the surviving corporation, and provided, further, in each
case, that no Default shall have occurred and be continuing at the time of such
proposed transaction or would result therefrom.
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 Advance
when due in accordance with the terms thereof or hereof; or the Borrower shall
fail to pay any interest on any Advance, or any other amount payable hereunder,
within five Business Days after any such interest or other amount becomes due in
accordance with the terms thereof or hereof; or
(b) Any representation or warranty made or deemed made by the
Borrower herein or which is contained in any certificate, document or financial
or other statement furnished by it at any time under or in connection with this
Agreement shall prove to have been incorrect in any material respect on or as of
the date made or deemed made; or
(c) The Borrower shall default in the observance or performance of
any agreement contained in Section 5.02 (a) through (c) or (unless such default
is capable of remedy and is remedied to the reasonable satisfaction of the
Required Lenders with 30 days of such default) Section 5.02(d); or
(d) The Borrower shall default in the observance or performance of
any other agreement contained in this Agreement (other than as provided in
paragraphs (a) through (c) of this Section), and such default shall continue
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unremedied for a period of 30 days after notice thereof has been given to the
Borrower in accordance with this Agreement; or
(e) The Borrower or any of its Principal Domestic Subsidiaries
shall (i) default in any payment of principal of or interest of any Indebtedness
for Money Borrowed (other than the Advances), beyond the period of grace (not to
exceed 30 days), if any, provided in the instrument or agreement under which
such Indebtedness for Money Borrowed was created (except for any such payments
on account of Indebtedness for Money Borrowed in an aggregate amount at any one
time of up to $20,000,000); or (ii) default in the observance or performance of
any other agreement or condition relating to any such Indebtedness for Money
Borrowed (except for any such Indebtedness in an aggregate principal amount at
any one time of up to $20,000,000) or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event shall occur or
condition exist, the effect of which default or other event or condition is to
cause, or to permit the holder or holders of such Indebtedness for Money
Borrowed (or a trustee or agent on behalf of such holder or holders) to cause,
with the giving of notice if required, such Indebtedness for Money Borrowed to
become due prior to its stated maturity; or
(f) (i) The Borrower or any of its Principal Domestic Subsidiaries
shall commence any case, proceeding or other action (A) under any existing or
future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator
or other similar official for it or for all or any substantial part of its
assets, or the Borrower or any of its Principal Domestic Subsidiaries shall make
a general assignment for the benefit of its creditors; or (ii) there shall be
commenced against the Borrower or any of its Principal Domestic Subsidiaries any
case, proceeding or other action of a nature referred to in clause (i) above
which (A) results in the entry of an order for relief or any such adjudication
or appointment or (B) remains undismissed, undischarged or unbonded for a period
of 60 days; or (iii) there shall be commenced against the Borrower or any of its
Principal Domestic Subsidiaries any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process
against all or any substantial part of its assets which results in the entry of
an order for any such relief which shall not have been vacated, discharged, or
stayed or bonded pending appeal within 60 days from the entry thereof; or (iv)
the Borrower or any of its Principal Domestic Subsidiaries shall take any action
in furtherance of, or indicating its consent to, approval of, or acquiescence
in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) the
Borrower or any of its Principal Domestic Subsidiaries shall generally not, or
shall be unable to, or shall admit in writing its inability to, pay its debts as
they become due; or
(g) (i) Any Person shall engage in any "prohibited transaction"
(as defined in Section 406 of ERISA or Section 4975 of the Code) involving any
Plan, (ii) any "accumulated funding deficiency" (as defined in Section 302 of
ERISA), whether or not waived, shall exist with respect to any Plan or any Lien
in favor of the PBGC or a Plan shall arise on the assets of the Borrower or any
Commonly Controlled Entity, (iii) a Reportable Event shall occur with respect
to, or proceedings shall commence to have a trustee appointed, or a trustee
shall be appointed, to administer or to terminate, any Single Employer Plan,
which Reportable Event or commencement of proceedings or appointment of a
trustee is, in the reasonable opinion of the Required Lenders, likely to result
in the termination of such Plan for purposes of Title IV of ERISA, (iv) any
Single Employer Plan shall terminate for purposes of Title IV of ERISA, (v) the
Borrower or any Commonly Controlled Entity shall, or in the reasonable opinion
of the Required Lenders is likely to, incur any liability in connection with a
withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan or
(vi) any other event or condition shall occur or exist with respect to a Plan;
and in each case in clauses (i) through (vi) above, such event or condition,
together with all other such events or conditions, if any, has resulted in, or
after giving effect to the reasonably projected outcome or effect thereof will
result in, a Material Adverse Change; or
(h) One or more judgments or decrees shall be entered against the
Borrower or any of its Principal Domestic Subsidiaries involving in the
aggregate a liability (not paid or fully covered by insurance) of $30,000,000 or
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more, and all such judgments or decrees shall not have been vacated, discharged,
stayed or bonded pending appeal within 60 days from the entry thereof; or
(i) This Agreement or any of the Notes shall, at any time while
any Advance shall remain unpaid or any Lender shall have any Commitment
hereunder, cease to be in full force and effect or shall be declared to be null
and void, or the validity or enforceability thereof shall be contested by the
Borrower, or the Borrower shall deny that it has any or further liability or
obligation under this Agreement or any of the Notes; or
(j) (i) any Person or group (within the meaning of Rule 13d-3 of
the Securities and Exchange Commission under the Securities Exchange Act of
1934) shall have acquired beneficial ownership, directly or indirectly, of
Voting Stock of the Borrower (or other securities convertible into such Voting
Stock) representing 35% or more of the combined voting power of all Voting Stock
of the Borrower; or (ii) during any period of up to 12 consecutive months,
commencing before or after the date of this Agreement, individuals who at the
beginning of such 12 month period were directors of the Borrower shall cease for
any reason (other than death or disability) to constitute a majority of the
Board of Directors of the Borrower (except to the extent that individuals who at
the beginning of such 12 month period were replaced by individuals (x) elected
by the remaining Board of Directors of the Borrower, or (y) nominated for
election by the remaining members of the Board of Directors of the Borrower and
thereafter elected as directors by shareholders of the Borrower), or (iii) any
Person or group (as so defined) shall have acquired by contract or otherwise, or
shall have entered into a contract or arrangement that, upon consummation, will
result in a Change of Control under clause (i) or (ii) above;
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 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
Advances, all interest thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the 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 Advances shall automatically be terminated and (B) the 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.
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
Notes), 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, and such instructions shall be binding upon all Lenders
and all holders of Notes; 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.
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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 Lender that made any Advance as the holder of the Indebtedness
resulting therefrom until the Agent receives and accepts an Assumption Agreement
entered into by an Assuming Lender as provided in Section 2.17 or an Assignment
and Acceptance entered into by such Lender, 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 this Agreement or any other instrument or document
furnished pursuant hereto; and (vi) shall incur no liability under or in respect
of this Agreement by acting upon any notice, consent, certificate or other
instrument or writing (which may be by 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 Advances made by it and the 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 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 the Revolving Credit Advances then owed to
each of them (or if no Revolving Credit Advances are at the time outstanding,
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 this Agreement or any action
taken or omitted by the Agent under this Agreement (collectively, the
"Indemnified Costs"), provided that no Lender shall be liable for any portion of
the Indemnified Costs 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 reasonable 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,
this Agreement, to the extent that the Agent is not reimbursed for such expenses
by the Borrower. In the case of any investigation, litigation or proceeding
giving rise to any Indemnified Costs, this Section 7.05 applies whether any such
investigation, litigation or proceeding is brought by the Agent, any Lender or a
third party.
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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 $500,000,000. 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.
SECTION 7.07. Other Agents. Each Lender hereby acknowledges
that neither the documentation agent nor any other Lender designated as any
"Agent" (other than Citibank, as Agent) on the signature pages hereof has any
liability hereunder other than in its capacity as a Lender.
ARTICLE VIII
MISCELLANEOUS
SECTION 8.01. Amendments, Etc. No amendment or waiver of any
provision of this Agreement or the Revolving Credit 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, 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. All notices and other
communications provided for hereunder shall be in writing (including telecopier,
telegraphic or telex communication) and mailed, telecopied, telegraphed, telexed
or delivered, if to the Borrower, at its address at 0000 Xxxxx Xxxxxxx Xxxxxx,
Xxxxxxx, Xxxxxxx 00000-0000 , 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 Assumption
Agreement or the Assignment and Acceptance pursuant to which it became a Lender;
and if to the Agent, at its address at Xxx Xxxxx Xxx, Xxx Xxxxxx, Xxxxxxxx
00000, Attention: Bank Loan Syndications Department; 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,
telecopied, telegraphed or telexed, be effective when deposited in the mails,
telecopied, delivered to the telegraph company or confirmed by telex answerback,
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
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Agreement or the Notes or of any Exhibit hereto to be executed and delivered
hereunder shall be effective as delivery of a manually executed counterpart
thereof.
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 all costs and expenses of the Agent in connection with the
preparation, execution, delivery, administration, modification and amendment of
this Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, (A) all due diligence, syndication (including
out-of-pocket printing, distribution and bank meetings), transportation,
computer and duplication expenses and (B) the reasonable fees and expenses of
counsel for the Agent with respect thereto and with respect to advising the
Agent as to its rights and responsibilities under this Agreement. The Borrower
further agrees to pay on demand all costs and expenses of the Agent and the
Lenders, if any (including, without limitation, reasonable counsel fees and
expenses), in connection with the enforcement (whether through negotiations,
legal proceedings or otherwise) of this Agreement, the Notes and the other
documents to be delivered hereunder, including, 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 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)
incurred by or asserted or awarded against any Indemnified Party, in each case
arising out of or in connection with or by reason of (including, without
limitation, in connection with any investigation, litigation or proceeding or
preparation of a defense in connection therewith) (i) the Notes, this Agreement,
any of the transactions contemplated herein or the actual or proposed use of the
proceeds of the 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, 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. In the case of an investigation, litigation or other
proceeding to which the indemnity in this Section 8.04(b) applies, such
indemnity shall be effective 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. The Borrower also agrees not to assert any claim for
special, indirect, consequential or punitive damages 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, arising out of or
otherwise relating to the Notes, this Agreement, any of the transactions
contemplated herein or the actual or proposed use of the proceeds of the
Advances.
(c) If any payment of principal of, or Conversion of, any
Eurodollar Rate Advance or LIBO 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 Advance, as a result of a payment or Conversion pursuant to Section 2.08(d)
or (e), 2.10 or 2.12, acceleration of the maturity of the Notes pursuant to
Section 6.01 or for any other reason, or by an Eligible Assignee to a Lender
other than on the last day of the Interest Period for such Advance upon an
assignment of rights and obligations under this Agreement pursuant to Section
8.07 as a result of a demand by the Borrower pursuant to Section 8.07(a), 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
shall actually incur as a result of such payment or Conversion, 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 any Lender to fund or maintain such Advance.
45
41
(d) Without prejudice to the survival of any other
agreement of the Borrower hereunder, the agreements and obligations of the
Borrower contained in Sections 2.11, 2.14 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 Notes due and payable pursuant to the provisions of
Section 6.01, each Lender and each of 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 this Agreement and the 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 Sections 2.01 and 2.03, 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.
SECTION 8.07. Assignments and Participations. (a) Each Lender
may with the consent of the Borrower and the Agent (which consent shall not be
unreasonably withheld or delayed) and, if demanded by the Borrower (following a
demand by such Lender pursuant to Section 2.11 or 2.14 and only so long as no
Default has occurred and is continuing) upon at least 5 Business Days' notice to
such Lender and the Agent, will 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
owing to it and the Revolving Credit 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 (other
than any right to make Competitive Bid Advances, Competitive Bid Advances owing
to it and Competitive Bid Notes), (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 $25,000,000 or an
integral multiple of $5,000,000 in excess thereof, (iii) each such assignment
shall be to an Eligible Assignee, (iv) each such assignment made as a result of
a demand by the Borrower pursuant to this Section 8.07(a) shall be arranged by
the Borrower after consultation with the Agent and shall be either an assignment
of all of the rights and obligations of the assigning Lender under this
Agreement or an assignment of a portion of such rights and obligations made
concurrently with another such assignment or other such assignments that
together cover all of the rights and obligations of the assigning Lender under
this Agreement, (v) no Lender shall be obligated to make any such assignment as
a result of a demand by the Borrower pursuant to this Section 8.07(a) unless and
until such Lender shall have received one or more payments from either the
Borrower or one or more Eligible Assignees in an aggregate amount at least equal
to the aggregate outstanding principal amount of the Advances owing to such
Lender, together with accrued interest thereon to the date of payment of such
principal amount and all other amounts payable to such Lender under this
Agreement, and (vi) 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 Revolving Credit
46
42
Note subject to such assignment and a processing and recordation fee of $3,500
payable by the parties to each such assignment, provided, however, that in the
case of each assignment made as a result of a demand by the Borrower, such
recordation fee shall be payable by the Borrower except that no such recordation
fee shall be payable in the case of an assignment made at the request of the
Borrower to an Eligible Assignee that is an existing Lender, and (vii) any
Lender may, without the approval of the Borrower and the Agent, assign all or a
portion of its rights to any of its Affiliates or any other Lender or its
Affiliates. Upon such execution, delivery, acceptance and recording, from and
after the 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 (other than its rights under Section 2.11, 2.14 and 8.04
to the extent any claim thereunder relates to an event arising prior such
assignment) 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 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 Revolving Credit 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.
(d) The Agent shall maintain at its address referred to
in Section 8.02 a copy of each Assumption Agreement and each Assignment and
Acceptance delivered to and accepted by it and a register for the recordation of
the names and addresses of the Lenders and the Commitment of, and principal
amount of the Advances owing to, each Lender from time to time (the "Register").
The entries in the Register shall be conclusive and binding for all purposes,
absent manifest error, and 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.
47
43
(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 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 holder of any such Note
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 reduce the principal of, or interest on,
the Notes or any fees or other amounts payable hereunder, 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 Notes or any fees or other amounts payable
hereunder, in each case to the extent subject to such participation.
(f) Any Lender may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
8.07, disclose to the assignee or participant or proposed assignee 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 or participant or proposed assignee or participant shall agree to
preserve the confidentiality of any Confidential Information relating to the
Borrower received by it from such Lender.
(g) Notwithstanding any other provision set forth in this
Agreement, any Lender may at any time create a security interest in all or any
portion of its rights under this Agreement (including, without limitation, the
Advances owing to it and any 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.
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 and (c) as requested or required by any
state, federal or foreign authority or examiner regulating banks or banking and
having jurisdiction over such Lender.
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. This Agreement may
be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery 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..
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. The Borrower hereby further
irrevocably consents to the service of process in any action or proceeding in
such courts by the mailing thereof by any parties hereto by registered or
certified mail, postage prepaid,
48
44
to the Borrower at its address specified pursuant to Section 8.02. 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.
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.
XXXXXX DODGE CORPORATION
By
-------------------------------------------
Title:
CITIBANK, N.A.,
as Agent
By
-------------------------------------------
Title:
Initial Lenders
Commitment
$160,000,000 CITIBANK, N.A.
By
-------------------------------------------
Title:
$125,000,000 BANK OF TOKYO-MITSUBISHI
TRUST COMPANY
By
-------------------------------------------
Title:
49
45
$85,000,000 BANK OF AMERICA, N.A.
By
-------------------------------------------
Title:
$85,000,000 XXXXXX GUARANTY TRUST COMPANY OF NEW YORK
By
-------------------------------------------
Title:
$85,000,000 THE INDUSTRIAL BANK OF JAPAN, LIMITED
By
-------------------------------------------
Title:
$85,000,000 WACHOVIA BANK, N.A.
By
-------------------------------------------
Title:
$85,000,000 XXXXX FARGO BANK, NATIONAL
ASSOCIATION
By
-------------------------------------------
Title:
$60,000,000 THE BANK OF NOVA SCOTIA
By
-------------------------------------------
Title:
50
46
$60,000,000 CIBC INC.
By
-------------------------------------------
Title:
$60,000,000 FIRST UNION NATIONAL BANK
By
-------------------------------------------
Title:
$60,000,000 WESTDEUTSCHE LANDESBANK
GIROZENTRALE, NEW YORK BRANCH
By
-------------------------------------------
Title:
$50,000,000 THE NORTHERN TRUST COMPANY
By
-------------------------------------------
Title:
$1,000,000,000 Total of the Commitments
51
SCHEDULE II
BORROWER AND ITS SUBSIDIARIES
PRINCIPAL DOMESTIC SUBSIDIARIES
PERCENTAGE OF VOTING STOCK
HELD BY BORROWER AND ITS JURISDICTION OF
NAME ASSOCIATED COMPANIES INCORPORATION
Climax Molybdenum Company 100% Delaware
Columbian Chemicals Company 100% Delaware
Xxxxxx Dodge Chino, Inc. 100% Delaware
Xxxxxx Dodge Industries, Inc. 100% Delaware
Xxxxxx Dodge Miami, Inc. 100% Delaware
Xxxxxx Dodge Morenci, Inc. 100% Delaware
Xxxxxx Dodge Refining Corporation 100% New York
Xxxxxx Dodge Sierrita, Inc. 100% Delaware
SUBSIDIARIES
(OTHER THAN PRINCIPAL DOMESTIC SUBSIDIARIES)
PERCENTAGE OF VOTING STOCK
HELD BY BORROWER AND ITS
ASSOCIATED COMPANIES
NAME
AAV Corporation 100.00%
Aislamientos Plasticos, C.A. (PLASTICA) 100.00%
Ajo Improvement Company 100.00%
Alambres y Cables de Panama, S.A. (ALCAP) 78.08%
Alambres y Cables Venezolanos, C.A. (ALCAVE) 89.96%
ALCAP Commercial, S.A. (ALCOMER) 100.00%
Alcave Trading 100.00%
Alcoa Fios e Cabos Electricos S.A. 60.00%
Amax Arizona, Inc. 100.00%
Amax Canada Development Limited 100.00%
Amax de Chile, Inc. 100.00%
Amax Energy Inc. 100.00%
Amax Exploration (Ireland), Inc. 100.00%
Amax Exploration, Inc. 100.00%
Amax Investment (France), Inc. 100.00%
Amax Metals Recovery, Inc. 100.00%
Amax Nickel Overseas Ventures, Inc. 100.00%
Amax Realty Development, Inc. 100.00%
52
Amax Research & Development, Inc. 100.00%
Amax Specialty Coppers Corporation 100.00%
Amax Specialty Metals (Canada) Limited 100.00%
Amax Specialty Metals (Driver), Inc. 100.00%
Amax Zinc (Newfoundland) Limited 100.00%
American Metal Climax, Inc. 100.00%
Ametalco (Toronto) Limited 100.00%
Ametalco (Vancouver) Limited 100.00%
Ametalco Limited 100.00%
Ametalco, Inc. 100.00%
Arizona Community Investment Corporation 100.00%
Ashfork Mines Limited 100.00%
Aurex International (Barbados) Ltd. 100.00%
Xxxxxx Queen Mining Company 65.90%
Xxxxxxxxx Zinc Company, Inc. 100.00%
Busa Mining Co., Inc. 100.00%
Byner Cattle Company 100.00%
Cables Electricos Ecuatorianos, C.A. (CABLEC) 67.10%
Cahosa, S.A. (Panama) 78.08%
CAM Receivables Corporation 100.00%
Canapian Mining Co., Inc. 100.00%
Capital Gestao de Negocios Ltda. 100.00%
Xxxxx Xxxxxxx Corporation 100.00%
Chino Mines Company 66.67%
CIS Venture Kazakstan, L.L.C. 60.00%
CIS Venture Kyrgystan, L.L.C. 60.00%
Climax Canada Ltd. 100.00%
Climax Molybdenum B.V. 100.00%
Climax Molybdenum GmbH 100.00%
Climax Molybdenum Marketing Corporation 100.00%
Climax Molybdenum S.R.L. 100.00%
Climax Molybdenum U.K. Limited 100.00%
Cobre Cerrillos S.A. (COCESA) 65.86%
Cobre del Xxxx, X.X. de C.V. 70.00%
Cobre Mining Company 100.00%
Cocesa Ingenieria y Construccion, S.A. (COCETEL) 100.00%
Cocetel del Plata, S.A. (Argentina) 95.00%
Cocetel El Salvador 100.00%
Cocetel Ingenieria y Construccion, C.A. (Venezuela) 100.00%
Columbian Carbon Deutschland G.M.B.H. 90.00%
Columbian Carbon Europa S.R.L. 100.00%
Columbian Carbon International (France) S.A. 100.00%
Columbian Carbon Japan Ltd. 68.00%
Columbian Carbon Philippines, Inc. 88.20%
Columbian Carbon Spain, S.A. 100.00%
Columbian Chemicals Brasil, S.A. 100.00%
Columbian Chemicals Canada, Ltd. 100.00%
53
Columbian Chemicals Europa, GMBH 100.00%
Columbian Chemicals Korea Co., Ltd. 85.00%
Columbian Holding Company 98.00%
Columbian International Chemicals Corporation (CICC) 100.00%
Columbian International Trading Company 100.00%
Columbian Technology Company 100.00%
Columbian Tiszai Carbon Ltd. 60.00%
Columbian (U.K.) Limited (CUKL) 100.00%
Compania Contractual Xxxxxx Xxxxxxxxxx 80.00%
Compania Contractual Minera Ojos del Salado 100.00%
Compania Mexicana de Exploracion Cyprus S.A. de C.V. 100.00%
CONDUCEN, S.A. 73.42%
CONDUCOMER, S.A. (formerly INDELEC) 100.00%
Conductores Electricos de Centro America, S.A. (CONELCA) 72.39%
Conductores y Aluminio, C.A. (CONAL) 100.00%
Copper Market, Inc. 100.00%
Corobong Mining Co., Inc. 100.00%
Cyprus Amax Australia Corporation 100.00%
Cyprus Amax Chile Holdings, Inc. 100.00%
Cyprus Amax China Corporation 100.00%
Cyprus Amax del Peru Corporation 100.00%
Cyprus Amax Finance Chile Corporation 100.00%
Cyprus Amax Finance Corporation 100.00%
Cyprus Amax Indonesia Corporation 100.00%
Cyprus Amax Kansanshi Holdings Limited 100.00%
Cyprus Amax Leasing Corporation 100.00%
Cyprus Amax Minerals Company (CAMC) 100.00%
Cyprus Amax Minerals Japan Corporation 100.00%
Cyprus Amax Philippines Corporation 100.00%
Cyprus Amax PNG Holdings, Inc. 100.00%
Cyprus Amax Zambia Corporation 100.00%
Cyprus Amax Zimbabwe Corporation 100.00%
Cyprus Canada Inc. 100.00%
Cyprus Climax Metals Company (CCMC) 100.00%
Cyprus Copper Marketing Corporation 100.00%
Cyprus Copperstone Gold Corporation 100.00%
Cyprus El Abra Corporation 100.00%
Cyprus El Xxxx Xxxxxx Limitada 100.00%
Cyprus Exploration and Development Corporation 100.00%
Cyprus Gold Company 100.00%
Cyprus Gold Exploration Corporation 100.00%
Cyprus Metals Company 100.00%
Cyprus Metals Exploration Corporation 100.00%
Cyprus Meullaboho Coal Mining Limited 100.00%
Cyprus Mexico Corporation 100.00%
Cyprus Minera de Chile, Inc. 100.00%
Cyprus Minera de Panama, S.A. 100.00%
54
Cyprus Mines Corporation 100.00%
Cyprus Pima Mining Company 75.01%
Cyprus Pinos Altos Corporation 100.00%
Cyprus Speciality Metals Company 100.00%
Cyprus Tohono Corporation 100.00%
Cyprus Tonopah Mining Corporation 100.00%
Cyprus Zinc Corporation 100.00%
Daguma Mining Co., Inc. 100.00%
Dodge & Xxxxx Insurance Company, Ltd. 100.00%
Dulugan Mining Co., Inc. 100.00%
Dumulag Mining Co., Inc. 100.00%
Electroconductores de Honduras, S.A. de C.V. (ECOHSA) 60.00%
Ferragudo Mining of Portugal, L.L.C. 70.00%
Geomining L.L.C. 51.00%
Grasshopper, L.L.C. 60.00%
Habirshaw Cable and Wire Corporation 100.00%
Industria de Conductores Electricos, C.A. (ICONEL) 100.00%
Inversiones de Cobre Chile Co., S.A. 100.00%
Iponan Mining Co., Inc. 100.00%
Isulan Mining Co., Inc. 100.00%
Xxxxx Xxxxxxx Insurance Company, Ltd. 100.00%
Kidapawan Mining Co., Inc. 100.00%
Kumakata Mining Co., Inc. 100.00%
Kyruso Mining Co., Inc. 100.00%
Lambunao Mining Co., Inc. 100.00%
Las Quintas Serenas Water Co. 59.00%
Lumintao Mining Co., Inc. 100.00%
Macote Mining Co., Inc. 100.00%
Makilala Mining Co., Inc. 100.00%
Malampay Mining Co., Inc. 100.00%
Malibato Mining Co., Inc. 100.00%
Mambalili Mining Co., Inc. 100.00%
Mambusao Mining Co., Inc. 100.00%
Metal Fabricators of Zambia Limited (ZAMEFA) 51.00%
Metallic Ventures, Inc. 100.00%
Minera Aurex (Chile) Limitada 99.00%
Minera Cobre Chile Co., S.A. 100.00%
Minera Cobre Chile Limitada 99.00%
Minera Cuicuilco S.A. de C.V. 100.00%
Minera Cyprus Amax Chile Limitada 100.00%
Minera Cyprus Antacori Corporation 100.00%
Minera Cyprus Chile Limitada 100.00%
Minera La Mesa, S.A. de C.V. 100.00%
Minera Las Clauditas, S.A. 85.00%
Minera Las Trancas, S.A. de C.V. 100.00%
Minera Papago, S.A. de C.V. 100.00%
Xxxxxx Xxxxxx Dodge del Peru S.A. 100.00%
55
Xxxxxx Xxxxxx Dodge Mexico, S de RL de CV 100.00%
Mineracao Serra do Sossego S.A. 50.00%
Missouri Lead Smelting Company 100.00%
Mt. Xxxxxx Mining Company 100.00%
Norala Mining Co., Inc. 100.00%
North-West Minerals (Zambia) Ltd. 100.00%
Oclaves Limited 100.00%
Pacific Western Land Company 100.00%
Palimbang Mining Co., Inc. 100.00%
XX Xxxxxxxxxx, Inc. 100.00%
PD Cobre del Mayo, Inc. 100.00%
PD Cobre, Inc. 100.00%
PD Colombia S.A. 100.00%
PD Explorations, Inc. 100.00%
PD Indonesia Corporation 100.00%
PD Las Xxxxxx Corporation 100.00%
PD Ojos del Salado, Inc. 100.00%
PD Peru, Inc. 100.00%
PD Rus, LLC 100.00%
PD Russia, Inc. 99.00%
PDEP Inc. 100.00%
Xxxxxx Dodge Africa Cable Corporation (PDACC) 100.00%
Xxxxxx Dodge Ajo, Inc. 100.00%
Xxxxxx Dodge Australasia, Inc. 100.00%
Xxxxxx Dodge Bagdad, Inc. 100.00%
Xxxxxx Dodge Chicago Rod, Inc. 100.00%
Xxxxxx Dodge Corporation of Canada, Limited 100.00%
Xxxxxx Dodge Development Corporation 100.00%
Xxxxxx Dodge do Brasil Mineracao Ltda 99.99%
Xxxxxx Dodge Dublin, Inc. 100.00%
Xxxxxx Dodge Energy Services, LLC 100.00%
Xxxxxx Dodge Enfield Corporation 100.00%
Xxxxxx Dodge Espanola Co. 100.00%
Xxxxxx Dodge Exploracion Mexico, S.A. de C.V. 100.00%
Xxxxxx Dodge Exploration Corporation 100.00%
Xxxxxx Dodge Exploration East, Inc. 100.00%
Xxxxxx Dodge Exploration India Private Limited 100.00%
Xxxxxx Dodge Foundation --
Xxxxxx Dodge Xxxxxxx, Inc. 100.00%
Xxxxxx Dodge High Performance Conductors Japan Co., Ltd. 100.00%
Xxxxxx Dodge High Performance Conductors of NJ, Inc. 100.00%
Xxxxxx Dodge High Performance Conductors of SC & GA, Inc. 100.00%
Xxxxxx Dodge Holdings Mexico, S.A. de C.V. 100.00%
Xxxxxx Dodge International Corporation 100.00%
Xxxxxx Dodge Madagascar S.A.R.L. 99.00%
Xxxxxx Dodge Magnet Wire (Austria) GmbH 100.00%
Xxxxxx Dodge Magnet Wire de Mexico, SA de CV 99.00%
56
Xxxxxx Dodge Mercantile Company 100.00%
Xxxxxx Dodge Mining (Zambia) Limited 100.00%
Xxxxxx Dodge Mining Services, Inc. 100.00%
Xxxxxx Dodge Molybdenum Corporation 100.00%
Xxxxxx Dodge of Africa, Ltd. 100.00%
Xxxxxx Dodge Overseas Capital Corporation 100.00%
Xxxxxx Dodge Overseas Marketing Corporation 100.00%
Xxxxxx Dodge Xxxxxxx, Inc. 100.00%
Xxxxxx Dodge Sales Company, Incorporated 100.00%
Xxxxxx Dodge Thailand Limited 75.47%
Xxxxxx Xxxxx Xxxxxx, Inc. 100.00%
Xxxxxx Dodge Wire & Cable Trading Company de Mexico, SA de CV 99.00%
Xxxxxx Dodge Wire and Cable Holding de Mexico SA de CV 99.00%
Xxxxxx Dodge Yantai China Holdings Inc. 66.67%
Philippine Carbon Black Distribution Company, Inc. 100.00%
Pietersburg Iron Company (Proprietary) Limited 50.00%
Pollac Mining Co., Inc. 100.00%
Proper Equipment Co. 80.00%
Pt Cyprus Amax Indonesia 100.00%
PT Kutaraja Tembaga Raya 55.00%
Representaciones de Industrias Venezolanas, C.A. (REDIVENCA) 100.00%
Rio Xxxxxx Exploration, LLC 50.00%
Sabang Mining Co., Inc. 100.00%
Savanna Development Co., Ltd. 100.00%
Servicios Cyprus, S.A. de C.V. 100.00%
Servicios Xxxxxx Dodge Mexico, S.A. de C.V. 100.00%
Sevalco (Trustee) Ltd. 100.00%
Sevalco Limited 100.00%
Silver Springs Ranch, Inc. 100.00%
Sociedad Contractual Minera El Abra 51.00%
Sociedad Minera Cerro Verde S.A. 82.49%
Sofia Mineral Ltd. (Somin) (partnership) 50.00%
Soner, Inc. 100.00%
T.I.E. (Trading Import Export) 100.00%
Tambali Mining Co., Inc. 100.00%
The Morenci Water & Electric Company 100.00%
Xxxx Xxxx Minerals 50.00%
Tucson, Xxxxxxxx and Gila Bend Railroad Co. 100.00%
United States Metals Refining Company 100.00%
Xxxxxx Company 100.00%
Western Nuclear Australia Limited 100.00%
Western Nuclear, Inc. 100.00%
57
SCHEDULE III - ENVIRONMENTAL REPRESENTATION
None
58
SCHEDULE IV - LITIGATION
1. In re the General Adjudication of All Rights to Use Water
in the Little Colorado River System and Source, No. 6417 (Superior
Court of Arizona, Apache County) (water rights litigation).
2. In re the General Adjudication of All Rights to Use Water
in the Gila River System and Source, Nos. W-1 (Salt River), W-2 (Verde
River), W-3 (Gila River) and W-4 (San Xxxxx River) (Superior Court of
Arizona, Maricopa County) (water rights litigation).
3. United States v. Gila Valley Irrigation District, et al.,
and Globe Equity No. 59 (D. Ariz.) (water rights litigation).
4. Prior to January 1, 1983, various Indian tribes filed
several suits in the U.S. District Court for the District of Arizona
claiming prior and paramount rights to use waters which are presently
being used by many water users, including Xxxxxx Dodge Corporation, and
claiming damages for prior use in derogation of their allegedly
paramount rights. These federal proceedings have been stayed pending
state court adjudication.
5. United States, et al. v. City of Tucson, et al., No. CIV
75-39 (D. Ariz.) (water rights litigation).
6. In 1999, the Pinal Creek Group, comprising Cyprus Miami
Mining Corporation (a wholly owned subsidiary of the Company) and other
companies, continued remediation and assessment of groundwater quality
in the shallow alluvial aquifers along Pinal Creek near Miami, Arizona.
The removal, remediation and assessment work is being conducted in
accordance with the requirements of the Arizona Department of
Environmental Quality's Water Quality Assurance Revolving Fund program.
In addition, the remedial and removal action is consistent with the
National Contingency Plan prepared by the EPA as required by CERCLA.
In November 0000, Xxxxxx Miami, as a member of the Pinal Creek Group,
joined with the State of Arizona in seeking approval of the District Court for
entry of a Consent Decree resolving all matters related to an enforcement action
contemplated by the State of Arizona with respect to the groundwater matter. On
August 13, 1998, the court approved the Decree that committed Cyprus Miami and
the other Pinal Creek Group members to complete the remediation work outlined in
the remedial action plan that was submitted to the State in May 1997.
Approximately $143 million remained in the Company's Pinal Creek remediation
reserve at December 31, 1999. Cyprus Miami has commenced contribution litigation
against other parties involved in this matter and has asserted claims against
certain of its past insurance carriers. While significant recoveries are
expected, the Company cannot reasonably estimate the amount and, therefore, has
not taken potential recoveries into consideration in the recorded reserve.
