Exhibit 4
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EXECUTION COPY
REVOLVING CREDIT AND GUARANTY AGREEMENT
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Among
BETHLEHEM STEEL CORPORATION AND CERTAIN OF ITS SUBSIDIARIES,
Debtors and Debtors-in-Possession under Chapter 11 of the Bankruptcy Code
as Borrowers
and
THE SUBSIDIARIES OF BETHLEHEM STEEL CORPORATION NAMED HEREIN,
as Guarantors
and
THE LENDERS PARTY HERETO,
and
GENERAL ELECTRIC CAPITAL CORPORATION,
as Administrative Agent
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Dated as of October 15, 2001
REVOLVING CREDIT AND GUARANTY AGREEMENT
TABLE OF CONTENTS
Page No.
SECTION 1. DEFINITIONS .............................................2
SECTION 1.1 Defined Terms.....................................2
SECTION 1.2 Terms Generally..................................16
SECTION 2. AMOUNT AND TERMS OF CREDIT. 16
SECTION 2.1 Commitment of the Lenders........................16
SECTION 2.2 Availability of Commitment; Borrowing Base.......17
SECTION 2.3 Letters of Credit................................17
SECTION 2.4 Issuance.........................................19
SECTION 2.5 Nature of Letter of Credit Obligations Absolute..19
SECTION 2.6 Making of Loans..................................20
SECTION 2.7 Repayment of Loans and Unreimbursed Draws;
Evidence of Debt.................................20
SECTION 2.8 Interest on Loans................................21
SECTION 2.9 Default Interest.................................22
SECTION 2.10 Optional Termination or Reduction of Commitment.22
SECTION 2.11 Alternate Rate of Interest......................22
SECTION 2.12 Refinancing of Loans............................22
SECTION 2.13 Mandatory Prepayment; Commitment Termination....23
SECTION 2.14 Optional Prepayment of Loans;
Reimbursement of Lenders........................24
SECTION 2.15 Reserve Requirements; Change in Circumstances...25
SECTION 2.16 Change in Legality..............................27
SECTION 2.17 Pro Rata Treatment, etc.........................27
SECTION 2.18 Taxes...........................................27
SECTION 2.19 Certain Fees....................................30
SECTION 2.20 Commitment Fee..................................30
SECTION 2.21 Letter of Credit Fees...........................30
SECTION 2.22 Nature of Fees..................................31
SECTION 2.23 Priority and Liens..............................31
SECTION 2.24 Use of Cash Collateral..........................33
SECTION 2.25 Right of Set-Off................................33
SECTION 2.26 Security Interest in Letter of Credit Account...33
SECTION 2.27 Payment of Obligations..........................33
SECTION 2.28 No Discharge; Survival of Claims................34
SECTION 2.29 Replacement of Certain Lenders..................34
SECTION 3. REPRESENTATIONS AND WARRANTIES.........................35
SECTION 3.1 Organization and Authority.......................35
SECTION 3.2 Due Execution....................................35
SECTION 3.3 Statements Made..................................36
SECTION 3.4 Financial Statements.............................36
SECTION 3.5 Ownership........................................36
SECTION 3.6 Liens............................................36
SECTION 3.7 Compliance with Environmental Laws...............36
SECTION 3.8 Insurance........................................37
SECTION 3.9 The Orders.......................................37
SECTION 3.10 Use of Proceeds.................................37
SECTION 3.11 Litigation......................................38
SECTION 3.12 Intellectual Property...........................38
SECTION 4. CONDITIONS OF LENDING..................................38
SECTION 4.1 Conditions Precedent to Initial Loan and
Initial Letter of Credit.........................38
SECTION 4.2 Conditions Precedent to Each Loan and Each
Letter of Credit.................................40
SECTION 5. AFFIRMATIVE COVENANTS..................................41
SECTION 5.1 Financial Statements, Reports, etc...............41
SECTION 5.2 Existence........................................44
SECTION 5.3 Insurance........................................44
SECTION 5.4 Obligations and Taxes............................44
SECTION 5.5 Notice of Event of Default, etc..................45
SECTION 5.6 Access to Books and Records......................45
SECTION 5.7 Maintenance of Concentration Account.............46
SECTION 5.8 Borrowing Base Certificate.......................46
SECTION 5.9 Budget...........................................46
SECTION 5.10 Security and Pledge Agreement...................47
SECTION 6. NEGATIVE COVENANTS.....................................47
SECTION 6.1 Liens............................................47
SECTION 6.2 Merger, etc......................................47
SECTION 6.3 Indebtedness.....................................47
SECTION 6.4 Capital Expenditures.............................48
SECTION 6.5 EBITDAPO.........................................48
SECTION 6.6 Guarantees and Other Liabilities.................49
SECTION 6.7 Chapter 11 Claims................................49
SECTION 6.8 Dividends; Capital Stock.........................49
SECTION 6.9 Transactions with Affiliates.....................49
SECTION 6.10 Investments, Loans and Advances.................49
SECTION 6.11 Disposition of Assets...........................50
SECTION 6.12 Nature of Business..............................50
SECTION 6.13 Transactions among Borrowers....................50
SECTION 6.14 Right of Subrogation among Borrowers............50
SECTION 7. EVENTS OF DEFAULT......................................50
SECTION 7.1 Events of Default................................50
ii
SECTION 8. THE ADMINISTRATIVE AGENT...............................54
SECTION 8.1 Administration by Administrative Agent...........54
SECTION 8.2 Advances and Payments............................54
SECTION 8.3 Sharing of Setoffs...............................55
SECTION 8.4 Agreement of Required Lenders....................55
SECTION 8.5 Liability of Administrative Agent................55
SECTION 8.6 Reimbursement and Indemnification................56
SECTION 8.7 Rights of Administrative Agent...................56
SECTION 8.8 Independent Lenders..............................57
SECTION 8.9 Notice of Transfer...............................57
SECTION 8.10 Successor Administrative Agent..................57
SECTION 9. GUARANTY...............................................57
SECTION 9.1 Guaranty.........................................57
SECTION 9.2 No Impairment of Guaranty........................58
SECTION 9.3 Subrogation......................................59
SECTION 9.4 Limitation on Guaranteed Obligations.............59
SECTION 9.5 Contribution with Respect to Guaranteed
Obligations......................................59
SECTION 10. MISCELLANEOUS.........................................60
SECTION 10.1 Notices.........................................60
SECTION 10.2 Survival of Agreement, Representations
and Warranties, etc.............................60
SECTION 10.3 Successors and Assigns..........................60
SECTION 10.4 Confidentiality.................................63
SECTION 10.5 Expenses........................................63
SECTION 10.6 Indemnity.......................................64
SECTION 10.7 Choice of Law...................................64
SECTION 10.8 No Waiver.......................................64
SECTION 10.9 Extension of Maturity...........................64
SECTION 10.10 Amendments, etc................................64
SECTION 10.11 Severability...................................65
SECTION 10.12 Headings.......................................66
SECTION 10.13 Execution in Counterparts......................66
SECTION 10.14 Prior Agreements...............................66
SECTION 10.15 Further Assurances.............................66
SECTION 10.16 Waiver of Jury Trial...........................66
SECTION 10.17 Foreign Subsidiaries...........................66
SECTION 10.18 Subordination of Intercompany Indebtedness.....67
SECTION 10.19 Conflict with Orders...........................68
iii
Annexes, Exhibits and Schedules
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Annex A - Commitment Amounts
Annex B - Eligible Accounts
Annex C - Lenders' Wire Transfer Information
Exhibit A-1 - Form of Interim Order
Exhibit A-2 - Form of Final Order
Exhibit B - Form of Security and Pledge Agreement
Exhibit C - Form of Opinion of Counsel
Exhibit D - Form of Assignment and Acceptance
Schedule 2.23 - Excluded Guarantor Assets
Schedule 3.5 - Subsidiaries
Schedule 3.6 - Liens
Schedule 3.7 - Environmental Matters
Schedule 3.12 - Intellectual Property
Schedule 6.3 - Existing Secured Indebtedness
Schedule 6.10 - Intercompany Indebtedness and Joint Ventures
Schedule 6.13 - Borrower Transaction Restrictions
Schedule 9.1 - Guarantors
iv
REVOLVING CREDIT AND GUARANTY AGREEMENT
Dated as of October 15, 2001
REVOLVING CREDIT AND GUARANTY AGREEMENT, dated as of October 15, 2001,
among BETHLEHEM STEEL CORPORATION, a Delaware corporation ("Parent"), and each
of the direct and indirect subsidiaries of the Parent named herein as borrowers
(each individually a "Borrower" and collectively the "Borrowers"), each of
which is a debtor and debtor-in-possession in a case pending under Chapter 11
of the Bankruptcy Code (the cases of the Borrowers, each a "Case" and
collectively, the "Cases"), each of the direct and indirect Subsidiaries of the
Parent named herein as guarantors (the "Guarantors"), GENERAL ELECTRIC CAPITAL
CORPORATION, a Delaware corporation ("GECC"), and each of the other commercial
banks, finance companies, insurance companies or other financial institutions
or funds from time to time party hereto (together with GECC, the "Lenders") and
GENERAL ELECTRIC CAPITAL CORPORATION, as administrative agent (in such
capacity, the "Administrative Agent") for the Lenders.
INTRODUCTORY STATEMENT
WHEREAS, on October 15, 2001, the Borrowers filed voluntary petitions
with the Bankruptcy Court initiating the Cases and have continued in the
possession of their assets and in the management of their businesses pursuant
to Sections 1107 and 1108 of the Bankruptcy Code; and
WHEREAS, the Borrowers have applied to the Lenders for a revolving
credit and letter of credit facility in an aggregate principal amount not to
exceed $450,000,000, with a sublimit of $75,000,000 for standby Letters of
Credit for purposes that are satisfactory to the Administrative Agent, and
initially not to exceed $400,000,000 (subject to the terms and conditions of
this Agreement), all of the Borrowers' obligations under which are to be
guaranteed by the Guarantors; and
WHEREAS, the proceeds of the Loans will be used for (i) working
capital, (ii) other general corporate purposes of the Borrowers, (iii) payment
of any related transaction costs, fees, expenses and (iv) as may be necessary,
repurchase of accounts receivable in connection with the termination of the
Prepetition Securitization Facility; and
WHEREAS, to provide for the repayment of the Loans, the reimbursement
of any draft drawn under a Letter of Credit and the payment of the other
obligations of the Borrowers and the Guarantors hereunder and under the other
Loan Documents, the Borrowers and the Guarantors will provide to the
Administrative Agent and the Lenders the following (each as more fully
described herein):
(a) a guaranty from the Guarantors of the due and punctual payment and
performance of the obligations of the Borrowers hereunder;
(b) an allowed Superpriority Claim;
(c) a perfected first priority Lien, pursuant to Section 364(c)(2) of
the Bankruptcy Code, upon all unencumbered property of the Borrowers and on all
cash and cash
equivalents in the Letter of Credit Account, provided that amounts in the
Letter of Credit Account shall not be subject to the Carve-Out hereinafter
referred to;
(d) a perfected junior Lien, pursuant to Section 364(c)(3) of the
Bankruptcy Code, upon inventory of the Parent and all other property of the
Borrowers that is subject to valid and perfected Permitted Liens in existence
on the Filing Date or that is subject to valid Permitted Liens in existence on
the Filing Date that are perfected subsequent to the Filing Date as permitted
by Section 546(b) of the Bankruptcy Code;
(e) a perfected first priority priming Lien, pursuant to Section
364(d)(1) of the Bankruptcy Code, upon all property of the Borrowers
(including, without limitation, inventory, accounts receivable, rights under
license agreements, property, plant and equipment, interests in leaseholds, and
the capital stock of the direct and indirect Subsidiaries of the Borrowers,
limited, in the case of an entity that is a controlled foreign corporation
under Section 957 of the Code, to 66% of the voting stock of such entity) other
than inventory of the Parent that is subject to any existing Liens which secure
obligations or indebtedness of the Borrowers under the Existing Credit
Agreement, which first priority Priming Liens in favor of the Administrative
Agent and the Lenders shall be senior in all respects to all of the Primed
Liens;
(f) in the case of the Guarantors, a perfected first priority Lien
upon all property of the Guarantors (including, without limitation, inventory,
accounts receivable, rights under license agreements, property, plant and
equipment, interests in leaseholds, and the capital stock of the direct and
indirect Subsidiaries of the Guarantors, limited, in the case of an entity that
is a controlled foreign corporation under Section 957 of the Code, to 66% of
the voting stock of such entity); and
WHEREAS, all of the claims granted hereunder in the Cases to the
Administrative Agent and the Lenders shall be subject to the Carve-Out to the
extent provided in Section 2.23.
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Accordingly, the parties hereto hereby agree as follows:
SECTION 1. DEFINITIONS
SECTION 1.1 Defined Terms.
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As used in this Agreement, the following terms shall have the meanings
specified below:
"Accounts" shall mean all "accounts" or "chattel paper" as such terms
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are defined in the Uniform Commercial Code in effect from time to time under
the laws of the State of New York.
"Account Debtor" shall mean any Person who is or may become obligated
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to Parent under, with respect to, or on account of, an Account.
"Additional Credit" shall have the meaning given such term in Section
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4.2(d).
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2
"Administrative Agent" shall have the meaning set forth in the
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Introduction.
"Affected Lender" shall have the meaning given such term in Section
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2.29.
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"Affiliate" shall mean, as to any Person, any other Person which,
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directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person. For purposes of this definition, a Person (a
"Controlled Person") shall be deemed to be "controlled by" another Person (a
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"Controlling Person") if the Controlling Person possesses, directly or
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indirectly, power to direct or cause the direction of the management and
policies of the Controlled Person whether by contract or otherwise; provided,
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however, that notwithstanding the foregoing, the term "Affiliate" shall be
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deemed to include any joint ventures of which such Person is the "beneficial
owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of
10% or more of the voting securities or other voting interests.
"Agreement" shall mean this Revolving Credit and Guaranty Agreement,
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as the same may from time to time be amended, restated, modified or
supplemented.
"Amounts" shall have the meaning given such term in Section 2.18(a).
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"Assignment and Acceptance" shall mean an assignment and acceptance
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entered into by a Lender and an Eligible Assignee, and accepted by the
Administrative Agent, substantially in the form of Exhibit D.
"Bankruptcy Code" shall mean The Bankruptcy Reform Act of 1978, as
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heretofore and hereafter amended, and codified as 11 U.S.C. Section 101 et
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seq.
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"Bankruptcy Court" shall mean the United States Bankruptcy Court for
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the Southern District of New York or any other court having jurisdiction over
the Cases, pursuant to a Chapter 11 filing by the Borrowers, from time to time.
"Board" shall mean the Board of Governors of the Federal Reserve
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System of the United States.
"Borrower" and "Borrowers" shall have the respective meanings set
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forth in the Introduction.
"Borrowing" shall mean the incurrence of Loans of a single Type made
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from all the Lenders on a single date and having, in the case of Eurodollar
Loans, a single Interest Period (with any Index Rate Loan made pursuant to
Section 2.16 being considered a part of the related Borrowing of Eurodollar
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Loans).
"Borrowing Availability" means as of any date of determination the
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lesser of (i) (x) prior to the expiration of the Initial Period, the Initial
Period Available Commitment and (y) from and after the expiration of the
Initial Period, the Total Commitment and (ii) the Borrowing Base, in each case,
less the sum of the Loans and Letter of Credit Outstandings as of such date and
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the Carve-Out.
3
"Borrowing Base" shall mean, on any date, the sum of (i) up to 85% of
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the Net Amount of the Parent's Eligible Accounts plus (ii) $200,000,000 (the
"PP&E Component") minus (iii) reserves established from time to time by the
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Administrative Agent in its reasonable credit judgment exercised in good faith
and in accordance with its customary credit policies, including, without
limitation, reserves with respect to anticipated adequate protection provided
for under paragraph 20 of the Interim Order, or any successor provision in the
Final Order, as the case may be. The sum of the aggregate outstanding amount
of direct Borrowings plus Letters of Credit issued for the account of the
Borrowers shall at no time exceed the Borrowing Base. The Borrowing Base at
any time shall be determined by reference to the most recent Borrowing Base
Certificate delivered on the Closing Date or to the Administrative Agent
pursuant to Section 5.8 of this Agreement. Subject to the limitations and
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requirements set forth in Section 10.10(a) of this Agreement, standards of
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eligibility and reserves and advance rates of the Borrowing Base may be revised
and adjusted from time to time by the Administrative Agent in its sole
discretion, with any changes in such standards to be effective three (3)
Business Days after delivery of notice thereof to the Borrowers.
"Borrowing Base Certificate" shall mean a certificate in a form
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satisfactory to the Administrative Agent (with such changes therein as may be
required by the Administrative Agent from time to time to reflect the
components of and reserves against the Borrowing Base as provided for hereunder
from time to time), executed and certified by a Financial Officer of the
Parent, which shall include appropriate exhibits and schedules as referred to
therein and as provided for in Section 5.8.
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"Budget" shall have the meaning set forth in Section 5.9.
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"Business Day" shall mean any day other than a Saturday, Sunday or
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other day on which banks in the States of New York and Illinois are required or
permitted to close (and, for a Letter of Credit, other than a day on which the
Fronting Bank issuing such Letter of Credit is closed); provided, however, that
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when used in connection with a Eurodollar Loan, the term "Business Day" shall
also exclude any day on which banks are not open for dealings in dollar
deposits on the London interbank market.
"Capital Expenditures" shall mean, for any period, the aggregate of
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all expenditures (whether paid in cash and not theretofore accrued subsequent
to the date of this Agreement or accrued as liabilities during such period and
including that portion of Capitalized Leases which is capitalized on the
consolidated balance sheet of the Borrowers and their Subsidiaries) by the
Borrowers and their Subsidiaries during such period that, in conformity with
GAAP, are required to be included in or reflected by the property, plant,
equipment or intangibles or similar fixed asset accounts reflected in the
consolidated balance sheet of the Borrowers and their Subsidiaries (including
equipment which is purchased simultaneously with the trade-in of existing
equipment owned by any of the Borrowers or their Subsidiaries to the extent of
the gross amount of such purchase price less the book value of the equipment
being traded in at such time), but excluding expenditures made in connection
with the replacement or restoration of assets, to the extent reimbursed or
financed from insurance proceeds paid on account of the loss of or the damage
to the assets being replaced or restored, or from awards of compensation
arising from the taking by condemnation or eminent domain of such assets being
replaced.
4
"Capitalized Lease" shall mean, as applied to any Person, any lease of
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property by such Person as lessee which would be capitalized on a balance sheet
of such Person prepared in accordance with GAAP.
"Carve-Out" shall have the meaning set forth in Section 2.23.
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"Cases" shall mean the Chapter 11 Cases of each of the Borrowers
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pending in the Bankruptcy Court.
"Change of Control" shall mean: (i) the acquisition of ownership,
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directly or indirectly, beneficially or of record, by any Person or group
(within the meaning of the Securities Exchange Act of 1934 and the rules of the
Securities and Exchange Commission thereunder as in effect on the date hereof),
of shares representing more than 25% of the aggregate ordinary voting power
represented by the issued and outstanding capital stock of Parent; or (ii) the
occupation of a majority of the seats (other than vacant seats) on the board of
directors of Parent, after the Filing Date, by Persons who were neither (A)
nominated by the board of directors of Parent nor (B) appointed by the
directors so nominated.
"Closing Date" shall mean the date on which this Agreement has been
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executed and delivered and the conditions precedent to the making of the
initial Loans set forth in Section 4.1 have been satisfied or waived, which
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date shall occur as promptly as is practicable after the date of this
Agreement, but in no event later than ten (10) days following the entry of the
Interim Order.
"Code" shall mean the Internal Revenue Code of 1986, as amended.
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"Collateral" shall mean the Collateral described in the Security and
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Pledge Agreement.
"Commitment" shall mean, with respect to each Lender, the commitment
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of each Lender hereunder in the amount set forth opposite its name on Annex A
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hereto or as may subsequently be set forth in the Register from time to time,
as the same may be reduced from time to time pursuant to this Agreement.
"Commitment Fee" shall have the meaning set forth in Section 2.20.
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"Commitment Percentage" shall mean at any time, with respect to each
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Lender, the percentage obtained by dividing its Commitment at such time by the
Total Commitment at such time.
"Consummation Date" shall mean the date of the substantial
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consummation (as defined in Section 1101 of the Bankruptcy Code and which for
purposes of this Agreement shall be no later than the effective date) of a
Reorganization Plan of the Borrowers that is confirmed pursuant to an order of
the Bankruptcy Court in the Cases.
"Critical Vendors" shall mean those vendors that provide materials or
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goods that are either actually or practically available only from such vendor,
as described in more detail in the Motion of Debtors and Debtors in Possession
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for an Order Authorizing Them to Pay
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5
Prepetition Claims of Certain Critical Vendors, to be filed with the Bankruptcy
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Court soon after the Filing Date.
"Dollars" and "$" shall mean lawful money of the United States of
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America.
"Domestic Subsidiary" shall mean any Subsidiary incorporated,
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organized or formed under the laws of any jurisdiction of the United States.
"EBITDAPO" shall mean, for any period, all as determined in accordance
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with GAAP, the consolidated net income (or net loss) of the Borrowers for such
period, plus (a) the sum of (i) depreciation expense, (ii) amortization
expense, (iii) other non-cash charges, (iv) provisions for LIFO adjustment for
inventory valuation, (v) net total Federal, state and local income tax expense,
(vi) gross interest expense for such period less gross interest income for such
period, (vii) extraordinary losses and non-recurring and restructuring charges,
(viii) losses with respect to asset sales, (ix) the cumulative effect of any
change in accounting principles, (x) non-cash pension expenses and non-cash
other post retirement benefits expenses, and (xi) "Chapter 11 expenses" (or
"administrative costs reflecting Chapter 11 expenses") as shown on the
Borrowers' consolidated statement of income for such period minus (b) the sum
of (i) extraordinary gains, (ii) gains on asset sales and (iii) the amount of
cash expended in respect of any amount which, under clause (vii) above, was
taken into account in determining EBITDAPO for such period or any prior period
after the Filing Date.
"Eligible Accounts" shall mean Accounts of the Parent of the type
described in Annex B.
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"Eligible Assignee" shall mean (i) a commercial bank having total
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assets in excess of $1,000,000,000; (ii) a finance company, insurance company
or other financial institution or fund, in each case acceptable to the
Administrative Agent, which in the ordinary course of business extends credit
of the type contemplated herein and has total assets in excess of $200,000,000
and whose becoming an assignee would not constitute a prohibited transaction
under Section 4975 of ERISA; and (iii) any other financial institution
satisfactory to the Administrative Agent.
"Environmental Lien" shall mean a Lien in favor of any Governmental
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Authority for (i) any liability under federal or state environmental laws or
regulations, or (ii) damages arising from or costs incurred by such
Governmental Authority in response to a release or threatened release of a
hazardous or toxic waste, substance or constituent, or other substance into the
environment.
"ERISA" shall mean the Employee Retirement Income Security Act of
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1974, as amended from time to time, and the regulations promulgated and rulings
issued thereunder.
"ERISA Affiliate" shall mean any trade or business (whether or not
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incorporated) which is a member of a group of which any of the Borrowers is a
member and which is under common control within the meaning of Section 414(b)
or (c) of the Code and the regulations promulgated and rulings issued
thereunder.
6
"Eurocurrency Liabilities" shall have the meaning assigned thereto in
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Regulation D issued by the Board, as in effect from time to time.
"Eurodollar Borrowing" shall mean a Borrowing comprised of Eurodollar
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Loans.
"Eurodollar Loan" shall mean any Loan bearing interest at a rate
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determined by reference to the LIBOR Rate in accordance with the provisions of
Section 2.
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"Event of Default" shall have the meaning given such term in Section
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7.
-
"Excess Availability" shall mean the sum of Borrowing Availability
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plus the amount of the Parent's cash on hand.
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"Existing Credit Agreement" shall mean that certain Inventory Credit
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Agreement, dated as of September 12, 1995, by and among Parent, as borrower,
the lenders listed therein, Xxxxxx Guaranty Trust Company of New York, as
administrative agent, and X. X. Xxxxxx Delaware, as structuring and
collateral agent, as amended, supplemented or otherwise modified from time to
time.
"Federal Funds Rate" means, for any day, a floating rate equal to the
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weighted average of the rates on overnight federal funds transactions among
members of the Federal Reserve System, as determined by the Administrative
Agent in its sole discretion with respect to all its loans generally, which
determination shall be final, binding and conclusive (absent manifest error).
"Fees" shall collectively mean the Commitment Fees, Letter of Credit
----
Fees and other fees referred to in Sections 2.19, 2.20 and 2.21.
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"Filing Date" shall mean October 15, 2001.
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"Final Order" shall have the meaning given such term in Section
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4.2(d).
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"Financial Officer" shall mean the Chief Financial Officer,
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Controller, Treasurer or Assistant Treasurer of a Borrower.
"First Day Orders" shall have the meaning given such term in Section
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4.1(c).
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"Foreign Subsidiary" shall have the meaning given such term in Section
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10.17.
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"Fronting Bank" shall mean GECC or a Subsidiary thereof, First Union
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National Bank or such other legally authorized Person acceptable to the
Administrative Agent (which other Person shall be reasonably satisfactory to
the Borrowers) as may agree with the Administrative Agent to act in such
capacity.
"GAAP" shall mean generally accepted accounting principles applied in
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accordance with Section 1.2.
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7
"GECC" shall have the meaning set forth in the Introduction.
----
"GECMG" shall mean GECC Capital Markets Group, Inc., in its capacity
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as the arranger of the facility evidenced by this Agreement.
"Governmental Authority" shall mean any Federal, state, municipal or
----------------------
other governmental department, commission, board, bureau, agency or
instrumentality or any court, in each case whether of the United States or a
subdivision thereof or foreign.
"Guarantors" shall mean each of the Subsidiaries of the Parent listed
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on Schedule 9.1.
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"Guarantor Payment" shall have the meaning set forth in Section
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9.5(a).
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"Indebtedness" shall mean, at any time and with respect to any Person
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and without duplication, (i) all indebtedness of such Person for borrowed
money, (ii) all indebtedness of such Person for the deferred purchase price of
property or services (other than property, including inventory, and services
purchased, and expense accruals and deferred compensation items arising, in the
ordinary course of business), (iii) all obligations of such Person evidenced by
notes, bonds, debentures or other similar instruments (other than performance,
surety and appeal bonds arising in the ordinary course of business), (iv) all
indebtedness of such Person created or arising under any conditional sale or
other title retention agreement with respect to property acquired by such
Person (even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such
property), (v) all obligations of such Person under leases which have been or
should be, in accordance with GAAP, recorded as capital leases, to the extent
required to be so recorded, (vi) all reimbursement, payment or similar
obligations of such Person, contingent or otherwise, under acceptance, letter
of credit or similar facilities and all obligations of such Person in respect
of (x) currency swap agreements, currency future or option contracts and other
similar agreements designed to hedge against fluctuations in foreign currency
exchange rates and (y) interest rate swap, cap or collar agreements and
interest rate future or option contracts and other similar agreements designed
to hedge against fluctuations in interest rates; (vii) all Indebtedness
referred to in clauses (i) through (vi) above guaranteed directly or indirectly
by such Person, or in effect guaranteed directly or indirectly by such Person
through an agreement (A) to pay or purchase such Indebtedness or to advance or
supply funds for the payment or purchase of such Indebtedness, (B) to purchase,
sell or lease (as lessee or lessor) property, or to purchase or sell services,
primarily for the purpose of enabling the debtor to make payment of such
Indebtedness or to assure the holder of such Indebtedness against loss in
respect of such Indebtedness, (C) to supply funds to or in any other manner
invest in the debtor (including any agreement to pay for property or services
irrespective of whether such property is received or such services are
rendered) or (D) otherwise to assure a creditor against loss in respect of such
Indebtedness, and (viii) all Indebtedness referred to in clauses (i) through
(vii) above secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien upon or in
property (including, without limitation, accounts and contract rights) owned by
such Person, even though such Person has not assumed or become liable for the
payment of such Indebtedness.
8
"Indemnified Party" shall have the meaning given such term in Section
----------------- -------
10.6.
----
"Index Rate" means, for any day, a floating rate equal to the higher
----------
of (i) the rate publicly quoted from time to time by The Wall Street Journal as
-----------------------
the "base rate on corporate loans posted by at least 75% of the nation's 30
largest banks" (or, if The Wall Street Journal ceases quoting a base rate of
-----------------------
the type described, the highest per annum rate of interest published by the
Board in Federal Reserve statistical release H.15 (519) entitled "Selected
Interest Rates" as the Bank prime loan rate or its equivalent), and (ii) the
Federal Funds Rate plus 50 basis points per annum. Each change in any interest
rate provided for in the Agreement based upon the Index Rate shall take effect
at the time of such change in the Index Rate.
"Index Rate Loan" shall mean any Loan bearing interest at a rate
---------------
determined by reference to the Index Rate in accordance with the provisions of
Section 2.
---------
"Initial Period" shall have the meaning given such term in Section
-------------- -------
2.2.
---
"Initial Period Available Commitment" shall have the meaning given
-----------------------------------
such term in Section 2.2.
-----------
"Insufficiency" shall mean, with respect to any Plan, the amount, if
-------------
any, of its unfunded benefit liabilities within the meaning of Section
4001(a)(18) of ERISA.
"Intercompany Indebtedness" shall mean any claim of an Affiliate of
-------------------------
Parent with respect to Indebtedness owing by any other Affiliate of Parent, any
claim of Parent with respect to Indebtedness owing by any of its Affiliates,
and any claim of any Affiliate of Parent with respect to Indebtedness owing by
Parent.
"Interim Order" shall have the meaning given such term in Section
------------- -------
4.1(b).
------
"Interest Payment Date" shall mean (i) as to any Eurodollar Loan, the
---------------------
last day of each consecutive thirty (30) day period running from the
commencement of the applicable Interest Period, and (ii) as to all Index Rate
Loans, the first Business Day of each month to occur while such Loan is
outstanding and the date on which any Index Rate Loans are refinanced with
Eurodollar Loans pursuant to Section 2.12.
------------
"Interest Period" shall mean, as to any Borrowing of Eurodollar Loans,
---------------
the period commencing on the date of such Borrowing (including as a result of a
refinancing of Index Rate Loans) or on the last day of the preceding Interest
Period applicable to such Borrowing and ending on the numerically corresponding
day (or if there is no corresponding day, the last day) in the calendar month
that is one or three months thereafter, as the Parent may elect on behalf of
the Borrowers in the related notice delivered pursuant to Sections 2.6(b) or
---------------
2.12; provided, however, that (i) if any Interest Period would end on a day
---- -------- -------
which shall not be a Business Day, such Interest Period shall be extended to
the next succeeding Business Day unless such next succeeding Business Day would
fall in the next calendar month, in which case such Interest Period shall end
on the next preceding Business Day, (ii) no Interest Period shall end later
than the Termination Date, and (iii) any Interest Period that begins on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the
9
calendar month at the end of such Interest Period) shall end on the last
Business Day of a calendar month.
"Investments" shall have the meaning given such term in Section 6.10.
----------- ------------
"Lenders" shall have the meaning set forth in the Introduction.
-------
"Lender Affiliate" shall mean, (a) with respect to any Lender, (i) an
----------------
Affiliate of such Lender or (ii) any entity (whether a corporation,
partnership, trust or otherwise) that is engaged in making, purchasing, holding
or otherwise investing in loans and similar extensions of credit in the
ordinary course of its business and is administered or managed by a Lender or
an Affiliate of such Lender and (b) with respect to any Lender that is a fund
which invests in loans and similar extensions of credit, any other fund that
invests in loans and similar extensions of credit and is managed by the same
investment advisor as such Lender or by an Affiliate of such investment
advisor.
"Letter of Credit" shall mean any irrevocable letter of credit issued
----------------
pursuant to Section 2.3, which letter of credit shall be (i) a standby letter
of credit, (ii) issued for purposes that are consistent with the ordinary
course of business of the Borrowers or for such other purposes as are
reasonably acceptable to the Administrative Agent, (iii) denominated in Dollars
and (iv) otherwise in such form as may be reasonably approved from time to time
by the Administrative Agent and the applicable Fronting Bank.
"Letter of Credit Account" shall mean the account established by the
------------------------
Borrowers under the sole and exclusive control of the Administrative Agent
designated as the "Bethlehem Steel Corporation Letter of Credit Account" that
shall be used solely for the purposes set forth in Sections 2.3(b) and 2.13.
--------------- ----
"Letter of Credit Fees" shall mean the fees payable in respect of
---------------------
Letters of Credit pursuant to Section 2.21.
------------
"Letter of Credit Outstandings" shall mean, at any time, the sum of
-----------------------------
(i) the aggregate undrawn stated amount of all Letters of Credit then
outstanding plus (ii) all amounts theretofore drawn under Letters of Credit and
not then reimbursed.
"LIBOR Rate" means for each Interest Period, a rate of interest
----------
determined by Agent equal to:
(a) the offered rate for deposits in United States Dollars for the
applicable Interest Period that appears on Telerate Page 3750 as of 11:00
a.m. (London time), on the second full Business Day next preceding the
first day of such Interest Period (unless such date is not a Business Day,
in which event the next succeeding Business Day will be used); divided by
(b) a number equal to 1.0 minus the aggregate (but without
duplication) of the rates (expressed as a decimal fraction) of reserve
requirements in effect on the day that is two (2) Business Days prior to
the beginning of such Interest Period (including basic, supplemental,
marginal and emergency reserves under any regulations of the Board or
10
other Governmental Authority having jurisdiction with respect thereto, as
now and from time to time in effect) for Eurocurrency funding (currently
referred to as "Eurocurrency Liabilities" in Regulation D of the Board)
that are required to be maintained by a member bank of the Federal Reserve
System.
If such interest rates shall cease to be available from Telerate News
Service, the LIBOR Rate shall be determined from such financial reporting
service or other information as shall be mutually acceptable to the
Administrative Agent and the Borrowers.
"Lien" shall mean any mortgage, pledge, security interest,
----
encumbrance, lien or charge of any kind whatsoever (including any conditional
sale or other title retention agreement or any lease in the nature thereof).
"Loan" and "Loans" shall have the respective meanings given such terms
---- -----
in Section 2.1.
-----------
"Loan Documents" shall mean this Agreement, the Letters of Credit, the
--------------
Security and Pledge Agreement and any other instrument or agreement executed
and delivered in connection herewith or therewith.
"Maturity Date" shall initially mean the date 24 months after the
-------------
Filing Date.
"Minority Lenders" shall have the meaning given such term in Section
---------------- -------
10.10(b).
--------
"Multiemployer Plan" shall mean a "multiemployer plan" as defined in
------------------
Section 4001(a)(3) of ERISA to which any Borrower or any ERISA Affiliate is
making or accruing an obligation to make contributions, or has within any of
the preceding five plan years made or accrued an obligation to make
contributions.
"Multiple Employer Plan" shall mean a Single Employer Plan, which (i)
----------------------
is maintained for employees of a Borrower or an ERISA Affiliate and at least
one Person other than such Borrower and its ERISA Affiliates or (ii) was so
maintained and in respect of which a Borrower or an ERISA Affiliate could have
liability under Section 4064 or 4069 of ERISA in the event such Plan has been
or were to be terminated.
"Net Amount" means, as it applies to Parent's Accounts, the gross
----------
amount of Accounts at such time minus, without duplication, (i) sales, excise
-----
or similar taxes included in such Eligible Accounts and (ii) returns,
discounts, claims, credits and allowances of any nature at any time issued,
owing, granted, outstanding, available or claimed.
"Net Proceeds" shall mean, in respect of any sale of assets, the
------------
proceeds of such sale after the payment of or reservation for expenses that are
directly related to (or the need for which arises as a result of) the
transaction of sale, including, but not limited to, related severance costs,
taxes payable, brokerage commissions, professional expenses, other similar
costs that are directly related to the sale and the amount secured by valid and
perfected Liens, if any, that are senior to the Liens on such assets held by
the Administrative Agent on behalf of the Lenders.
11
"Obligations" shall mean (a) the due and punctual payment of principal
-----------
of and interest on the Loans and the reimbursement of all amounts drawn under
Letters of Credit, and (b) the due and punctual payment of the Fees and all
other present and future, fixed or contingent, monetary obligations of the
Borrowers to the Lenders and the Administrative Agent under the Loan Documents.
"Orders" shall mean the Interim Order and the Final Order.
------
"Organizational Documents" shall mean (i) with respect to any
------------------------
corporation, its certificate or articles of incorporation, as amended, and its
by-laws, as amended, (ii) with respect to any limited partnership, its
certificate of limited partnership or formation, as amended, and its
partnership agreement, as amended, (iii) with respect to any general
partnership, its partnership agreement, as amended, (iv) with respect to any
limited liability company, its certificate of formation or articles of
organization, as amended, and its operating agreement, as amended, and (v) with
respect to any unlimited liability company, its certificate of formation, as
amended, and its memorandum and articles of association, as amended. In the
event any term or condition of this Agreement or any other Loan Document
requires any Organizational Document to be certified by a secretary of state of
similar governmental official, the reference to any such "Organizational
Document" shall only be to a document of a type customarily certified by such
governmental official.
"Other Taxes" shall have the meaning given such term in Section 2.18.
----------- ------------
"Parent" shall mean have the meaning set forth in the Introduction.
------
"PBGC" shall mean the Pension Benefit Guaranty Corporation, or any
----
successor agency or entity performing substantially the same functions.
"Pension Plan" shall mean a defined benefit pension or retirement plan
------------
which meets and is subject to the requirements of Section 401(a) of the Code.
"Permitted Investments" shall mean:
---------------------
(a) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States of
America (or by any agency thereof to the extent such obligations are backed by
the full faith and credit of the United States of America), in each case
maturing within twelve months from the date of acquisition thereof;
(b) without limiting the provisions of paragraph (d) below,
investments in commercial paper maturing within six months from the date of
acquisition thereof and having, at such date of acquisition, a rating of at
least "A-2" or the equivalent thereof from Standard & Poor's Ratings Group or
of at least "P-2" or the equivalent thereof from Xxxxx'x Investors Service,
Inc.;
(c) investments in certificates of deposit, banker's acceptances and
time deposits (including Eurodollar time deposits) maturing within six months
from the date of acquisition thereof issued or guaranteed by or placed with (i)
any domestic office of the Administrative Agent or the bank with whom the
Borrowers maintain their cash management
12
system, provided, that if such bank is not a Lender hereunder, such bank shall
--------
have entered into an agreement with the Administrative Agent pursuant to which
such bank shall have waived all rights of setoff and confirmed that such bank
does not have, nor shall it claim, a security interest therein or (ii) any
domestic office of any other commercial bank of recognized standing organized
under the laws of the United States of America or any State thereof that has a
combined capital and surplus and undivided profits of not less than
$250,000,000 and is the principal banking Subsidiary of a bank holding company
having a long-term unsecured debt rating of at least "A-2" or the equivalent
thereof from Standard & Poor's Ratings Group or at least "P-2" or the
equivalent thereof from Xxxxx'x Investors Service, Inc.;
(d) investments in commercial paper maturing within six months from
the date of acquisition thereof and issued by the holding company of any other
commercial bank of recognized standing organized under the laws of the United
States of America or any State thereof that has (i) a combined capital and
surplus in excess of $250,000,000 and (ii) commercial paper rated at least
"A-2" or the equivalent thereof from Standard & Poor's Ratings Group or of at
least "P-2" or the equivalent thereof from Xxxxx'x Investors Service, Inc.;
(e) investments in repurchase obligations with a term of not more than
seven (7) days for underlying securities of the types described in clause (a)
above entered into with any office of a bank or trust company meeting the
qualifications specified in clause (c) above;
(f) investments in money market funds substantially all the assets of
which are comprised of securities of the types described in clauses (a) through
(e) above; and
(g) to the extent such stock is owned on the Filing Date, existing
investments in the capital stock of any direct or indirect Subsidiary of the
Borrowers or other Persons as disclosed in Schedule 3.5.
------------
"Permitted Liens" shall mean (i) Liens in favor of the Administrative
---------------
Agent and the Lenders; (ii) Liens imposed by law (other than Environmental
Liens and any Lien imposed under ERISA) for taxes, assessments or charges of
any Governmental Authority for claims not yet due or which are being contested
in good faith by appropriate proceedings and with respect to which adequate
reserves or other appropriate provisions are being maintained in accordance
with GAAP; (iii) statutory Liens of landlords and Liens of carriers,
warehousemen, mechanics, materialmen and other Liens (other than Environmental
Liens and any Lien imposed under ERISA) in existence on the Filing Date or
thereafter imposed by law and created in the ordinary course of business; (iv)
Liens (other than any Lien imposed under ERISA) incurred or deposits made
(including, without limitation, surety bonds and appeal bonds) in connection
with workers' compensation, unemployment insurance and other types of social
security benefits or to secure the performance of tenders, bids, leases,
contracts (other than for the repayment of Indebtedness), statutory obligations
and other similar obligations incurred in the ordinary course of business or
arising as a result of progress payments under government contracts; (v)
easements (including, without limitation, reciprocal easement agreements and
utility agreements), rights-of-way, covenants, consents, reservations,
encroachments, variations and zoning and other restrictions, charges or
encumbrances (whether or not recorded) and interest of ground lessors, which do
not interfere with the ordinary conduct of the business of any Borrower, and
which do not detract from the value of the property to which they attach or
13
materially impair the use thereof to any Borrower; (vi) purchase money Liens
(including Capitalized Leases) upon or in any property acquired or held in the
ordinary course of business to secure the purchase price of such property or to
secure Indebtedness permitted by Section 6.3(iii) solely for the purpose of
----------------
financing the acquisition of such property; (vii) Liens set forth on Schedule
--------
3.6; (viii) Liens junior to the senior liens contemplated hereby that are
---
granted by the Interim Order or the Final Order as adequate protection to the
parties primed by the Primed Liens, provided that the Interim Order and the
Final Order provide that the holders of such junior liens shall not be
permitted to take any action to enforce their rights with respect to such
junior liens as long as any amounts are outstanding under this Agreement or the
Lenders have any Commitment thereunder; (ix) Liens prior to the senior liens
contemplated hereby solely to the extent required to provide adequate
protection to certain prepetition creditors of the Borrowers as provided in
paragraph 20 of the Interim Order (or any successor provision in the Final
Order) or otherwise specifically provided for in the Interim Order or Final
Order, as the case may be; and (x) Liens created in connection with extensions,
renewals or replacements, including replacement Liens granted by the Bankruptcy
Court, of any Lien referred to in clauses (i) through (ix) above, provided that
the principal amount of the obligation secured thereby is not increased and
that any such extension, renewal or replacement is limited to the property
originally encumbered thereby.
"Person" shall mean any natural person, corporation, division of a
------
corporation, partnership, trust, joint venture, association, company, estate,
unincorporated organization or government or any agency or political
subdivision thereof.
"Plan" shall mean a Single Employer Plan or a Multiemployer Plan.
----
"Prepayment Date" shall mean thirty (30) days after the entry of the
---------------
Interim Order by the Bankruptcy Court if the Final Order has not been entered
by the Bankruptcy Court prior to the expiration of such thirty (30) day period.
"Prepetition Payment" shall mean a payment (by way of adequate
-------------------
protection or otherwise) of principal or interest or otherwise on account of
any prepetition Indebtedness or trade payables or other prepetition claims
against the Borrowers, including, without limitation, reclamation claims,
materialmen's liens and prepetition claims of Critical Vendors.
"Prepetition Securitization Facility" shall mean the receivables
-----------------------------------
purchase facility made available to Parent and certain of its Subsidiaries, as
evidenced by the Receivables Purchase Agreement, dated as of September 12,
1995, among the Parent, as Servicer, Bethlehem Steel Funding, LLC, Bethlehem
Steel Credit Affiliate One, Inc., Bethlehem Steel Credit Affiliate Two, Inc.,
Xxxxxx Guaranty Trust Company of New York, as Administrative, Structuring and
Collateral Agent, and the financial institutions party thereto as buyers, and
by other purchase and sale and related agreements, documents and instruments,
in each case, as amended, restated, supplemented or otherwise modified from
time to time.
"Primed Liens" shall have the meaning set forth in Section 2.23(a).
------------ ---------------
"Priming Liens" shall have the meaning set forth in Section 2.23(a).
------------- ---------------
"Register" shall have the meaning set forth in Section 10.3(d).
-------- ---------------
14
"Reorganization Plan" shall mean a plan of reorganization in any of
-------------------
the Cases.
"Replacement Lender" shall have the meaning given such term in Section
------------------ -------
2.29.
----
"Required Lenders" shall mean, at any time, Lenders holding Loans
----------------
representing in excess of 50% of the aggregate principal amount of such Loans
outstanding or, if no such Loans are outstanding, Lenders having Commitments
representing in excess of 50% of the Total Commitment.
"Security and Pledge Agreement" shall have the meaning given such term
-----------------------------
in Section 5.10.
------------
"Single Employer Plan" shall mean a single employer plan, as defined
--------------------
in Section 4001(a)(15) of ERISA, that (i) is maintained for employees of a
Borrower or an ERISA Affiliate or (ii) was so maintained and in respect of
which a Borrower could have liability under Section 4069 of ERISA in the event
such Plan has been or were to be terminated.
"Subsidiary" shall mean, with respect to any Person (herein referred
----------
to as the "parent"), any corporation, association or other business entity
(whether now existing or hereafter organized) of which at least a majority of
the securities or other ownership interests having ordinary voting power for
the election of directors is, at the time as of which any determination is
being made, owned or controlled by the parent or one or more subsidiaries of
the parent or by the parent and one or more subsidiaries of the parent;
provided, however, that notwithstanding the foregoing, when used with respect
-------- -------
to the Parent or any of its Subsidiaries, the term "Subsidiary" shall exclude
each of Hibbing Taconite Company, a Joint Venture, Hibbing Development Company
and Ontario Iron Company.
"Super-majority Lenders" shall have the meaning given such term in
----------------------
Section 10.10(b).
----------------
"Superpriority Claim" shall mean a claim against any Borrower in any
-------------------
of the Cases which is a superpriority administrative expense claim having
priority over any or all administrative expenses of the kind specified in
Sections 503(b) or 507(b) of the Bankruptcy Code.
"Taxes" shall have the meaning given such term in Section 2.18.
-----
"Termination Date" shall mean the earliest to occur of (i) the
----------------
Prepayment Date, (ii) the Maturity Date, (iii) the Consummation Date and (iv)
the acceleration of the Loans and the termination of the Total Commitment in
accordance with the terms hereof.
"Termination Event" shall mean (i) a "reportable event", as such term
-----------------
is described in Section 4043 of ERISA and the regulations issued thereunder
(other than a "reportable event" not subject to the provision for 30-day notice
to the PBGC under Section 4043 of ERISA or such regulations) or an event
described in Section 4068 of ERISA excluding events described in Section
4043(c)(9) of ERISA or 29 CFR Sections 2615.21 or 2615.23, or (ii) the
withdrawal of any Borrower or any ERISA Affiliate from a Multiple Employer Plan
during a plan year in which it was a "substantial employer", as such term is
defined in Section 4001(c) of ERISA, or the incurrence of liability by any
Borrower or any ERISA Affiliate under Section 4064 of ERISA upon the
termination of a Multiple Employer Plan, or (iii) providing notice of intent to
terminate a Plan pursuant to Section 4041(c) of
15
ERISA or the treatment of a Plan amendment as a termination under Section 4041
of ERISA, or (iv) the institution of proceedings to terminate a Plan by the
PBGC under Section 4042 of ERISA, or (v) any other event or condition (other
than the commencement of the Cases and the failure to have made any
contribution accrued as of the Filing Date but not paid) which would reasonably
be expected to constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or the
imposition of any liability under Title IV of ERISA (other than for the payment
of premiums to the PBGC).
"Total Commitment" shall mean, at any time, the sum of the Commitments
----------------
at such time. The initial Total Commitment hereunder shall be $450,000,000.
"Total Usage" shall mean, at any time, the sum of the outstanding
-----------
aggregate principal amount of the Loans plus the aggregate Letter of Credit
Outstandings.
"Transferee" shall have the meaning given such term in Section
---------- -------
2.18(a).
-------
"Type" when used in respect of any Loan or Borrowing shall refer to
----
the Rate of interest by reference to which interest on such Loan or on the
Loans comprising such Borrowing is determined. For purposes hereof, "Rate"
----
shall mean the LIBOR Rate or the Index Rate, as the case may be.
"Unused Total Commitment" shall mean, at any time, (i) the Total
-----------------------
Commitment less (ii) the Total Usage.
"Withdrawal Liability" shall have the meaning given such term under
--------------------
Part I of Subtitle E of Title IV of ERISA.
SECTION 1.2 Terms Generally. The definitions in Section 1.1 shall
--------------- -----------
apply equally to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. All references herein to Sections,
Exhibits and Schedules shall be deemed references to Sections of, and Exhibits
and Schedules to, this Agreement unless the context shall otherwise require.
Except as otherwise expressly provided herein, all terms of an accounting or
financial nature shall be construed in accordance with GAAP, as in effect from
time to time; provided, however, that for purposes of determining compliance
-------- -------
with any covenant set forth in Section 6, such terms shall be construed in
---------
accordance with GAAP as in effect on the date of this Agreement applied on a
basis consistent with the application used in the Borrowers' audited financial
statements referred to in Section 3.4.
SECTION 2. AMOUNT AND TERMS OF CREDIT.
SECTION 2.1 Commitment of the Lenders.
-------------------------
(a) Each Lender severally and not jointly with the other Lenders
agrees, upon the terms and subject to the conditions herein set forth
(including, without limitation, the
16
provisions of Section 2.29), to make revolving credit loans (each a "Loan" and
------------ ----
collectively, the "Loans") in U.S. Dollars to the Borrowers at any time and
-----
from time to time during the period commencing on the date hereof and ending on
the Termination Date in an aggregate principal amount not to exceed, when added
to such Lender's Commitment Percentage of the then aggregate Letter of Credit
Outstandings (in excess of the amount of cash then held in the Letter of Credit
Account pursuant to Section 2.3(b)), the Commitment of such Lender, which Loans
---------------
may be repaid and reborrowed in accordance with the provisions of this
Agreement. At no time shall the Total Usage exceed Borrowing Availability.
(b) Each Borrowing shall be made by the Lenders pro rata in accordance
with their respective Commitments; provided, however, that the failure of any
-------- -------
Lender to make any Loan shall not in itself relieve the other Lenders of their
obligations to lend.
SECTION 2.2 Availability of Commitment; Borrowing Base. Subject to
------------------------------------------
the terms and conditions hereof, from the Filing Date until the later of: (i)
the date which is thirty (30) days after the Filing Date, and (ii) the date of
the entry of the Final Order (the "Initial Period"), $400,000,000 of the Total
--------------
Commitment (the "Initial Period Available Commitment") shall be available to
-----------------------------------
the Borrowers, for (i) working capital, (ii) other general corporate purposes
of the Borrowers, (iii) payment of any related transaction costs, fees and
expenses, and (iv) refinancing of the Borrowers' then outstanding Prepetition
Securitization Facility.
SECTION 2.3 Letters of Credit.
-----------------
(a) Upon the terms and subject to the conditions herein set forth, the
Borrowers may request a Fronting Bank, at any time and from time to time after
the date hereof and prior to the Termination Date, to issue, and, subject to
the terms and conditions contained herein, such Fronting Bank shall issue, for
the account of the Borrowers one or more Letters of Credit in support of
obligations of the Borrowers that are acceptable to the Administrative Agent,
provided that no Letter of Credit shall be issued if after giving effect to
--------
such issuance (i) the aggregate Letter of Credit Outstandings would exceed
$75,000,000 or (ii) the Total Usage would exceed Borrowing Availability, and,
provided further that no Letter of Credit shall be issued if the Fronting Bank
-------- -------
shall have received notice from the Administrative Agent or the Required
Lenders that the conditions to such issuance have not been met.
(b) No Letter of Credit shall expire later than the earlier of (i) one
year from the issuance thereof, and (ii) thirty (30) days prior to the Maturity
Date, provided that if the Termination Date shall occur prior to the expiration
--------
of any Letter of Credit, the Borrowers shall, at or prior to the Termination
Date, except as the Administrative Agent may otherwise agree in writing, (i)
cause all Letters of Credit which expire after the Termination Date to be
returned to the Fronting Bank undrawn and marked "canceled" or (ii) if the
Borrowers are unable to do so in whole or in part, either (x) provide a
"back-to-back" letter of credit to one or more Fronting Banks in a form
satisfactory to such Fronting Bank and the Administrative Agent (in their sole
discretion), issued by a bank satisfactory to such Fronting Bank and the
Administrative Agent (in their sole discretion), in an amount equal to the
greater of (A) an amount, as determined by the Fronting Bank and the
Administrative Agent, equal to the face amount of all outstanding Letters of
Credit plus the sum of all projected contractual obligations to the
Administrative Agent, the Fronting Bank and the Lenders of the Borrowers
thereunder through the expiration date(s) of
17
such Letters of Credit, and (B) 105% of all Letter of Credit Outstandings at
such time and/or (y) deposit cash in the Letter of Credit Account in an amount
which, together with any amounts then held in the Letter of Credit Account, is
equal to the greater of (A) an amount, as determined by the Fronting Bank and
the Administrative Agent, equal to the face amount of all outstanding Letters
of Credit plus the sum of all projected contractual obligations to the
----
Administrative Agent, the Fronting Bank and the Lenders of the Borrowers
thereunder and (B) 105% of all Letter of Credit Outstandings at such time as
collateral security for the Borrowers' reimbursement obligations in connection
therewith, such cash to be remitted to the Borrowers upon the expiration,
cancellation or other termination or satisfaction of such reimbursement
obligations.
(c) The Borrowers shall pay to each Fronting Bank, in addition to such
other fees and charges as are specifically provided for in Section 2.21 hereof,
------------
such reasonable fees and charges in connection with the issuance and processing
of the Letters of Credit issued by such Fronting Bank as are customarily
imposed by such Fronting Bank from time to time in connection with letter of
credit transactions.
(d) Drafts drawn under each Letter of Credit shall be reimbursed by
the Borrowers in Dollars not later than the first Business Day following the
date of draw and shall bear interest from the date of draw until the first
Business Day following the date of draw at a rate per annum equal to the Index
Rate plus 2.50% and thereafter until reimbursed in full at a rate per annum
equal to the Index Rate plus 4.50% (computed on the basis of the actual number
of days elapsed over a year of 360 days). The Borrowers shall effect such
reimbursement (x) if such draw occurs prior to the Termination Date (or the
earlier date of termination of the Total Commitment), in cash or through a
Borrowing without the satisfaction of the conditions precedent set forth in
Section 4.2 or (y) if such draw occurs on or after the Termination Date (or the
-----------
earlier date of termination of the Total Commitment), in cash. Each Lender
agrees to make the Loans described in clause (x) of the preceding sentence
notwithstanding a failure to satisfy the applicable lending conditions thereto
or the provisions of Sections 2.2 or 2.29.
------------ ----
(e) Immediately upon the issuance of any Letter of Credit by any
Fronting Bank, such Fronting Bank shall be deemed to have sold to each Lender
other than such Fronting Bank and each such other Lender shall be deemed
unconditionally and irrevocably to have purchased from such Fronting Bank,
without recourse or warranty, an undivided interest and participation, to the
extent of such Lender's Commitment Percentage, in such Letter of Credit, each
drawing thereunder and the obligations of the Borrowers under this Agreement
with respect thereto. Upon any change in the Commitments pursuant to Section
-------
10.3 or Section 10.10(b), it is hereby agreed that with respect to all Letter
---- ----------------
of Credit Outstandings, there shall be an automatic adjustment to the
participations hereby created to reflect the new Commitment Percentages of the
assigning and assignee Lenders. Any action taken or omitted by a Fronting Bank
under or in connection with a Letter of Credit, if taken or omitted in the
absence of gross negligence or willful misconduct, shall not create for such
Fronting Bank any resulting liability to any other Lender.
(f) In the event that a Fronting Bank makes any payment under any
Letter of Credit and the Borrowers shall not have reimbursed such amount in
full to such Fronting Bank pursuant to this Section, the Fronting Bank shall
promptly notify the Administrative Agent,
18
which shall promptly notify each Lender of such failure, and each Lender shall
promptly and unconditionally pay to the Administrative Agent for the account of
the Fronting Bank the amount of such Lender's Commitment Percentage of such
unreimbursed payment in Dollars and in same day funds. If the Fronting Bank so
notifies the Administrative Agent, and the Administrative Agent so notifies the
Lenders prior to 11:00 a.m. (New York City time) on any Business Day, such
Lenders shall make available to the Fronting Bank such Lender's Commitment
Percentage of the amount of such payment on such Business Day in same day
funds. If and to the extent such Lender shall not have so made its Commitment
Percentage of the amount of such payment available to the Fronting Bank, such
Lender agrees to pay to such Fronting Bank, forthwith on demand such amount,
together with interest thereon, for each day from such date until the date such
amount is paid to the Administrative Agent for the account of such Fronting
Bank at the Federal Funds Rate. The failure of any Lender to make available to
the Fronting Bank its Commitment Percentage of any payment under any Letter of
Credit shall not relieve any other Lender of its obligation hereunder to make
available to the Fronting Bank its Commitment Percentage of any payment under
any Letter of Credit on the date required, as specified above, but no Lender
shall be responsible for the failure of any other Lender to make available to
such Fronting Bank such other Lender's Commitment Percentage of any such
payment. Whenever a Fronting Bank receives a payment of a reimbursement
obligation as to which it has received any payments from the Lenders pursuant
to this paragraph, such Fronting Bank shall pay to each Lender which has paid
its Commitment Percentage thereof, in Dollars and in same day funds, an amount
equal to such Lender's Commitment Percentage thereof.
SECTION 2.4 Issuance. Whenever the Borrowers desire a Fronting Bank
--------
to issue a Letter of Credit, the Parent shall give to such Fronting Bank and
the Administrative Agent on behalf of the Borrowers at least two (2) Business
Days' prior written (including telegraphic, telex, facsimile or cable
communication) notice (or such shorter period as may be agreed upon by the
Administrative Agent, the Borrowers and the Fronting Bank) specifying the date
on which the proposed Letter of Credit is to be issued (which shall be a
Business Day), the stated amount of the Letter of Credit so requested, the
expiration date of such Letter of Credit and the name and address of the
beneficiary thereof. The notice shall be accompanied by the form of the Letter
of Credit (which shall be acceptable to the Fronting Bank) and a completed
application for such letter of credit which shall be provided by GECC in a form
acceptable to GECC. Notwithstanding anything contained herein to the contrary,
Letter of Credit applications by the Parent, on behalf of the Borrowers, and
approvals by the Administrative Agent and the Fronting Bank may be made and
transmitted pursuant to electronic codes and security measures mutually agreed
upon and established by and among the Parent, the Administrative Agent and the
Fronting Bank.
SECTION 2.5 Nature of Letter of Credit Obligations Absolute. The
-----------------------------------------------
obligations of the Borrowers to reimburse the Lenders for drawings made under
any Letter of Credit shall be joint and several, unconditional and irrevocable
and shall be paid strictly in accordance with the terms of this Agreement under
all circumstances, including, without limitation: (i) any lack of validity or
enforceability of any Letter of Credit; (ii) the existence of any claim,
setoff, defense or other right which any Borrower may have at any time against
a beneficiary of any Letter of Credit or against any of the Lenders, whether in
connection with this Agreement, the transactions contemplated herein or any
unrelated transaction; (iii) any draft, demand, certificate or other document
presented under any Letter of Credit proving to be forged, fraudulent, invalid
or
19
insufficient in any respect or any statement therein being untrue or inaccurate
in any respect; (iv) payment by a Fronting Bank of any Letter of Credit against
presentation of a demand, draft or certificate or other document which does not
comply with the terms of such Letter of Credit; (v) any other circumstance or
happening whatsoever, which is similar to any of the foregoing; or (vi) the
fact that any Event of Default shall have occurred and be continuing.
SECTION 2.6 Making of Loans.
---------------
(a) Except as contemplated by Section 2.11, Loans shall be either
------------
Index Rate Loans or Eurodollar Loans as the Borrowers may request subject to
and in accordance with this Section, provided that all Loans made pursuant to
the same Borrowing shall, unless otherwise specifically provided herein, be
Loans of the same Type. Each Lender may fulfill its Commitment with respect to
any Eurodollar Loan or Index Rate Loan by causing any lending office of such
Lender to make such Loan; provided that any such use of a lending office shall
--------
not affect the obligation of the Borrowers to repay such Loan in accordance
with the terms of this Agreement. Each Lender shall, subject to its overall
policy considerations, use reasonable efforts (but shall not be obligated) to
select a lending office which will not result in the payment of increased costs
by the Borrowers pursuant to Sections 2.15 or 2.18. Subject to the other
------------- ----
provisions of this Section and the provisions of Section 2.12, Borrowings of
------------
Loans of more than one Type may be incurred at the same time, provided that no
--------
more than ten (10) Borrowings of Eurodollar Loans may be outstanding at any
time.
(b) The Parent shall, on behalf of itself or any of the Borrowers,
give the Administrative Agent prior written, telex, facsimile or telephonic
(confirmed promptly in writing) notice of each Borrowing hereunder of at least
three (3) Business Days for Eurodollar Loans and on the same Business Day of
any Index Rate Loans; such notice shall be irrevocable and shall specify the
amount of the proposed Borrowing (which shall not be less than $1,000,000 or
any integral multiple of $1,000,000 in excess thereof) and the date thereof
(which shall be a Business Day) and shall contain disbursement instructions.
Such notice, to be effective, must be received by the Administrative Agent not
later than 12:00 noon, New York City time, on the third Business Day in the
case of Eurodollar Loans and the same Business Day in the case of Index Rate
Loans, preceding the date on which such Borrowing is to be made. Such notice
shall specify whether the Borrowing then being requested is to be a Borrowing
of Index Rate Loans or Eurodollar Loans. If no election is made as to the Type
of Loan, such notice shall be deemed a request for Borrowing of Index Rate
Loans. The Administrative Agent shall promptly notify each Lender of its
proportionate share of such Borrowing, the date of such Borrowing, the Type of
Borrowing or Loans being requested and the Interest Period or Interest Periods
applicable thereto, as appropriate. On the Borrowing date specified in such
notice, each Lender shall make its share of the Borrowing available by wire
transfer to Agent's account as set forth in Annex C, no later than 12:00 noon,
-------
New York City time, in immediately available funds. Upon receipt of the funds
made available by the Lenders to fund any Borrowing hereunder, the
Administrative Agent shall disburse such funds in the manner specified in the
notice of Borrowing delivered by the Borrowers.
SECTION 2.7 Repayment of Loans and Unreimbursed Draws; Evidence of Debt.
-----------------------------------------------------------
20
(a) The Borrowers hereby jointly and severally unconditionally promise
to pay to the Administrative Agent for the account of each Lender the then
unpaid principal amount of each Loan and each unreimbursed draw under all
Letters of Credit as set forth herein on the Termination Date.
(b) Each Lender shall maintain in accordance with its usual practice
an account or accounts evidencing the Indebtedness of the Borrowers to such
Lender resulting from each Loan made by such Lender, including the amounts of
principal and interest payable and paid to such Lender or participation in each
Letter of Credit in which such Lender is participating from time to time
hereunder.
(c) The Administrative Agent shall maintain accounts in which it shall
record (i) the amount of each Loan made hereunder, the Type thereof and the
Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrowers to
each Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent hereunder for the account of the Lenders and each Lender's
share thereof.
(d) The entries made in the accounts maintained pursuant to paragraph
(b) or (c) of this Section shall be prima facie evidence of the existence and
amounts of the obligations recorded therein; provided that the failure of any
--------
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrowers to repay
the Loans in accordance with the terms of this Agreement.
(e) Any Lender may request that Loans made by it be evidenced by a
promissory note. In such event, the Borrowers shall execute and deliver to
such Lender a promissory note payable to the order of such Lender (or, if
requested by such Lender, to such Lender and its registered assigns) in a form
furnished by the Administrative Agent. Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 10.3) be represented by one or more promissory
------------
notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered
assigns).
SECTION 2.8 Interest on Loans.
-----------------
(a) Subject to the provisions of Section 2.9, each Index Rate Loan
-----------
shall bear interest (computed on the basis of the actual number of days elapsed
over a year of 360 days) at a rate per annum equal to the Index Rate plus
2.50%.
(b) Subject to the provisions of Section 2.9, each Eurodollar Loan
-----------
shall bear interest (computed on the basis of the actual number of days elapsed
over a year of 360 days) at a rate per annum equal, during each Interest Period
applicable thereto, to the LIBOR Rate for such Interest Period in effect for
such Borrowing plus 3.50%.
(c) Accrued interest on all Loans shall be payable in arrears on each
Interest Payment Date applicable thereto, at maturity (whether by acceleration
or otherwise), after such maturity on demand and upon any repayment or
prepayment thereof (on the amount prepaid).
21
SECTION 2.9 Default Interest. If any Borrower shall default in the
----------------
payment of the principal of or interest on any Loan or in the payment of any
other amount becoming due hereunder (including, without limitation, the
reimbursement pursuant to Section 2.3(d) of any draft drawn under a Letter of
--------------
Credit), whether at stated maturity, by acceleration or otherwise, such
Borrower shall on demand from time to time pay interest, to the extent
permitted by law, on such defaulted amount up to (but not including) the date
of actual payment (after as well as before judgment) at a rate per annum
(computed on the basis of the actual number of days elapsed over a year of 360
days) equal to 2% above the then applicable rate.
SECTION 2.10 Optional Termination or Reduction of Commitment. Upon at
-----------------------------------------------
least two (2) Business Days' prior written notice from the Parent, on behalf of
the Borrowers, to the Administrative Agent, the Borrowers may at any time in
whole permanently terminate, or from time to time in part permanently reduce,
the Unused Total Commitment. Each such reduction or termination, as
applicable, of the Unused Total Commitment shall be in the principal amount of
$5,000,000 or any integral multiple of $1,000,000 in excess thereof. Any
reduction or termination, as applicable, of the Unused Total Commitment
pursuant to this Section shall be deemed to be a reduction or termination, as
applicable, in the amount of such reduction or termination of the Total
Commitment and shall be applied pro rata to reduce the Commitment of each
Lender. Simultaneously with each reduction or termination, as applicable, of
the Unused Total Commitment, the Borrowers shall pay to the Administrative
Agent for the account of each Lender the Commitment Fee accrued on the amount
of the Commitment of such Lender so terminated or reduced through the date
thereof.
SECTION 2.11 Alternate Rate of Interest. In the event, and on each
--------------------------
occasion, that on the day two (2) Business Days prior to the commencement of
any Interest Period for a Eurodollar Loan, the Administrative Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrowers absent manifest error) that reasonable means do not exist for
ascertaining the applicable LIBOR Rate, the Administrative Agent shall, as soon
as practicable thereafter, give written or telegraphic notice of such
determination to the Borrowers and the Lenders, and any request by the Parent,
on behalf of the Borrowers, for a Borrowing of Eurodollar Loans (including
pursuant to a refinancing with Eurodollar Loans) pursuant to Section 2.6 or
2.12 shall be deemed a request for a Borrowing of Index Rate Loans. After such
notice shall have been given and until the circumstances giving rise to such
notice no longer exist, each request for a Borrowing of Eurodollar Loans shall
be deemed to be a request for a Borrowing of Index Rate Loans.
SECTION 2.12 Refinancing of Loans. The Borrowers shall have the
--------------------
right, at any time, on three (3) Business Days' prior irrevocable notice from
the Parent, on behalf of the Borrowers, to the Administrative Agent (which
notice, to be effective, must be received by the Administrative Agent not later
than 1:00 p.m., New York City time, on the third Business Day preceding the
date of any refinancing), (x) to refinance (without the satisfaction of the
conditions set forth in Section 4 as a condition to such refinancing) any
---------
outstanding Borrowing or Borrowings of Loans of one Type (or a portion thereof)
with a Borrowing of Loans of the other Type or (y) to continue an outstanding
Borrowing of Eurodollar Loans for an additional Interest Period, subject to the
following:
22
(a) as a condition to the refinancing of Index Rate Loans with
Eurodollar Loans and to the continuation of Eurodollar Loans for an additional
Interest Period, no Event of Default shall have occurred and be continuing at
the time of such refinancing;
(b) if less than a full Borrowing of Loans shall be refinanced, such
refinancing shall be made pro rata among the Lenders in accordance with the
respective principal amounts of the Loans comprising such Borrowing held by the
Lenders immediately prior to such refinancing;
(c) the aggregate principal amount of Loans being refinanced shall be
at least $5,000,000 or any integral multiple of $1,000,000 in excess thereof,
provided that no partial refinancing of a Borrowing of Eurodollar Loans shall
result in the Eurodollar Loans remaining outstanding pursuant to such Borrowing
being less than $1,000,000 in aggregate principal amount;
(d) each Lender shall effect each refinancing by applying the proceeds
of its new Eurodollar Loan or Index Rate Loan, as the case may be, to its Loan
being refinanced;
(e) the Interest Period with respect to a Borrowing of Eurodollar
Loans effected by a refinancing or in respect to the Borrowing of Eurodollar
Loans being continued as Eurodollar Loans shall commence on the date of
refinancing or the expiration of the current Interest Period applicable to such
continuing Borrowing, as the case may be;
(f) a Borrowing of Eurodollar Loans may be refinanced only on the last
day of an Interest Period applicable thereto; and
(g) each request for a refinancing with a Borrowing of Eurodollar
Loans which fails to state an applicable Interest Period shall be deemed to be
a request for an Interest Period of one month.
In the event that the Parent shall not give any such notice, on behalf of the
Borrowers, to refinance any Borrowing of Eurodollar Loans, or to continue such
Borrowing as Eurodollar Loans, or shall not be entitled to refinance or
continue such Borrowing as Eurodollar Loans, in each case as provided above,
such Borrowing shall automatically be refinanced with a Borrowing of Index Rate
Loans at the expiration of the then-current Interest Period. The
Administrative Agent shall, after it receives notice from the Parent, on behalf
of the Borrowers, promptly give each Lender notice of any refinancing, in whole
or part, of any Loan made by such Lender.
SECTION 2.13 Mandatory Prepayment; Commitment Termination
--------------------------------------------
(a) If at any time the aggregate principal amount of the Total Usage
exceeds Borrowing Availability, the Borrowers will within one (1) Business Day
(i) prepay the Loans in an amount necessary to cause the aggregate principal
amount of the outstanding Loans plus the aggregate Letter of Credit
Outstandings, including unreimbursed draws, to be equal to or less than
Borrowing Availability, and (ii) if, after giving effect to the prepayment in
full of the Loans, the aggregate Letter of Credit Outstandings in excess of the
amount of cash held in the Letter of Credit Account exceeds Borrowing
Availability, deposit into the Letter of Credit Account an
23
amount equal to 105% of the amount by which the aggregate Letter of Credit
Outstandings in excess of the amount of cash held in the Letter of Credit
Account so exceeds Borrowing Availability.
(b) The Borrowers shall, within two (2) Business Days of the date of
receipt of the Net Proceeds by any Borrower or any of their Subsidiaries from
the sale, lease, transfer or other disposition of any assets of any Borrower or
any of its Subsidiaries (other than (i) sales of inventory in the ordinary
course of business and (ii) the first $100,000,000 of Net Proceeds arising
after the date hereof from any other sales, leases, transfers or other
dispositions of assets), jointly and severally, apply such Net Proceeds as
follows: first, to prepay the then outstanding Loans (with concurrent ratable
-----
reductions of each Lender's Commitment); second, if an Event of Default shall
------
have occurred and be continuing, deposit an amount in the Letter of Credit
Account (up to 105% of the aggregate Letter of Credit Outstandings); and
---
thereafter, such Net Proceeds may be retained by the Borrowers and invested in
----------
Permitted Investments or used for expenditures in the ordinary course of
business (subject to compliance with the terms and conditions of this
Agreement).
(c) Upon the Termination Date, the Total Commitment shall be
terminated in full and the Borrowers shall pay the Loans in full and, if any
Letter of Credit remains outstanding, comply with Section 2.3(b).
--------------
SECTION 2.14 Optional Prepayment of Loans; Reimbursement of Lenders.
------------------------------------------------------
(a) The Borrowers shall have the right at any time and from time to
time to prepay any Loans, in whole or in part, (x) with respect to Eurodollar
Loans, upon at least three (3) Business Days' prior written, telex, facsimile
or telephonic (confirmed promptly in writing) notice from the Parent, on behalf
of the Borrowers, to the Administrative Agent and (y) with respect to Index
Rate Loans on the same Business Day if written, telex, facsimile or telephonic
(confirmed promptly in writing) notice is received by the Administrative Agent
prior to 1:00 p.m., New York City time; provided, however, that (i) each such
-------- -------
partial prepayment shall be in integral multiples of $1,000,000, (ii) no
prepayment of Eurodollar Loans shall be permitted pursuant to this Section
-------
2.14(a) other than on the last day of an Interest Period applicable thereto
-------
unless such prepayment is accompanied by the payment of the amounts described
in clause (i) of the first sentence of Section 2.14(b), and (iii) no partial
prepayment of a Borrowing of Eurodollar Loans shall result in the aggregate
principal amount of the Eurodollar Loans remaining outstanding pursuant to such
Borrowing being less than $1,000,000. Each notice of prepayment shall specify
the prepayment date, the principal amount of the Loans to be prepaid and, in
the case of Eurodollar Loans, the Borrowing or Borrowings pursuant to which
made, shall be irrevocable and shall commit the Borrowers to prepay such Loan
by the amount and on the date stated therein. The Administrative Agent shall,
promptly after receiving notice from the Parent, on behalf of the Borrowers
hereunder, notify each Lender of the principal amount of the Loans held by such
Lender which are to be prepaid, the prepayment date and the manner of
application of the prepayment.
(b) The Borrowers shall reimburse each Lender on demand for any loss
incurred or to be incurred by it in the reemployment of the funds released (i)
resulting from any prepayment (for any reason whatsoever, including, without
limitation, refinancing with Index
24
Rate Loans) of any Eurodollar Loan required or permitted under this Agreement,
if such Loan is prepaid other than on the last day of the Interest Period for
such Loan (including, without limitation, any such prepayment in connection
with the syndication of the credit facility evidenced by this Agreement) or
(ii) in the event that after the Parent delivers a notice of Borrowing, on
behalf of the Borrowers, under Section 2.6 in respect of Eurodollar Loans, such
-----------
Loans are not made on the first day of the Interest Period specified in such
notice of Borrowing for any reason other than a breach by such Lender of its
obligations hereunder. Such loss shall be the amount as reasonably determined
by such Lender as the excess, if any, of (A) the amount of interest which would
have accrued to such Lender on the amount so paid or not borrowed at a rate of
interest equal to the LIBOR Rate for such Loan, for the period from the date of
such payment or failure to borrow to the last day (x) in the case of a payment
or refinancing with Index Rate Loans other than on the last day of the Interest
Period for such Loan, of the then current Interest Period for such Loan, or (y)
in the case of such failure to borrow, of the Interest Period for such Loan
which would have commenced on the date of such failure to borrow, over (B) the
amount of interest which would have accrued to such Lender on such amount by
placing such amount on deposit for a comparable period with leading banks in
the London interbank market. Each Lender shall deliver to the Borrowers from
time to time one or more certificates setting forth the amount of such loss as
determined by such Lender.
(c) In the event the Borrowers fail to prepay any Loan on the date
specified in any prepayment notice delivered pursuant to Section 2.14(a), the
---------------
Borrowers on demand by any Lender shall pay to the Administrative Agent for the
account of such Lender any amounts required to compensate such Lender for any
loss incurred by such Lender as a result of such failure to prepay, including,
without limitation, any loss, cost or expenses incurred by reason of the
acquisition of deposits or other funds by such Lender to fulfill deposit
obligations incurred in anticipation of such prepayment, but without
duplication of any amounts paid under Section 2.14(b). Each Lender shall
deliver to the Borrowers from time to time one or more certificates setting
forth the amount of such loss as determined by such Lender.
(d) Any partial prepayment of the Loans by the Borrowers pursuant to
Sections 2.13 or 2.14 shall be applied as specified by the Borrowers or, in the
------------- ----
absence of such specification, as determined by the Administrative Agent,
provided that in the latter case no Eurodollar Loans shall be prepaid pursuant
--------
to Section 2.13 to the extent that such Loan has an Interest Period ending
------------
after the required date of prepayment unless and until all outstanding Index
Rate Loans and Eurodollar Loans with Interest Periods ending on such date have
been repaid in full.
SECTION 2.15 Reserve Requirements; Change in Circumstances.
---------------------------------------------
(a) Notwithstanding any other provision herein, if after the date of
this Agreement any change in applicable law or regulation or in the
interpretation or administration thereof by any Governmental Authority charged
with the interpretation or administration thereof (whether or not having the
force of law) shall change the basis of taxation of payments to any Lender of
the principal of or interest on any Eurodollar Loan made by such Lender or any
fees or other amounts payable hereunder (other than changes in respect of
Taxes, Other Taxes and taxes imposed on, or measured by, the net income or
overall gross receipts or franchise taxes of such Lender by the jurisdiction in
which such Lender has its principal office or in which the
25
applicable lending office for such Eurodollar Loan is located or by any
political subdivision or taxing authority therein, or by any other jurisdiction
or by any political subdivision or taxing authority therein other than a
jurisdiction in which such Lender would not be subject to tax but for the
execution and performance of this Agreement), or shall impose, modify or deem
applicable any reserve, special deposit or similar requirement against assets
of, deposits with or for the account of or credit extended by such Lender
(except any such reserve requirement which is reflected in the LIBOR Rate) or
shall impose on such Lender or the London interbank market any other condition
affecting this Agreement or the Eurodollar Loans made by such Lender, and the
result of any of the foregoing shall be to increase the cost to such Lender of
making or maintaining any Eurodollar Loan or to reduce the amount of any sum
received or receivable by such Lender hereunder (whether of principal, interest
or otherwise) by an amount deemed by such Lender to be material, then the
Borrowers will pay to such Lender in accordance with paragraph (c) below such
additional amount or amounts as will compensate such Lender for such additional
costs incurred or reduction suffered.
(b) If any Lender shall have determined that the adoption or effectiveness
after the date hereof of any law, rule, regulation or guideline regarding
capital adequacy, or any change in any of the foregoing or in the
interpretation or administration of any of the foregoing by any governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender (or any lending office of
such Lender) or any Lender's holding company with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such
authority, central bank or comparable agency, has or would have the effect of
reducing the rate of return on such Lender's capital or on the capital of such
Lender's holding company, if any, as a consequence of this Agreement, the Loans
made by such Lender pursuant hereto, such Lender's Commitment hereunder or the
issuance of, or participation in, any Letter of Credit by such Lender to a
level below that which such Lender or such Lender's holding company could have
achieved but for such adoption, change or compliance (taking into account
Lender's policies and the policies of such Lender's holding company with
respect to capital adequacy) by an amount deemed by such Lender to be material,
then from time to time the Borrowers shall pay to such Lender such additional
amount or amounts as will compensate such Lender or such Lender's holding
company for any such reduction suffered.
(c) A certificate of each Lender setting forth such amount or amounts as shall
be necessary to compensate such Lender or its holding company as specified in
paragraph (a) or (b) above, as the case may be, shall be delivered to the
Borrowers and shall be conclusive absent manifest error. The Borrowers shall
pay each Lender the amount shown as due on any such certificate delivered to it
within ten (10) days after its receipt of the same. Any Lender receiving any
such payment shall promptly make a refund thereof to the Borrowers if the law,
regulation, guideline or change in circumstances giving rise to such payment is
subsequently deemed or held to be invalid or inapplicable.
(d) Failure on the part of any Lender to demand compensation for any increased
costs or reduction in amounts received or receivable or reduction in return on
capital with respect to any period shall not constitute a waiver of such
Lender's right to demand compensation with respect to such period or any other
period. The protection of this Section shall be available to each Lender
regardless of any possible contention of the invalidity or
26
inapplicability of the law, rule, regulation, guideline or other change or
condition which shall have occurred or been imposed.
SECTION 2.16 Change in Legality.
------------------
(a) Notwithstanding anything to the contrary contained elsewhere in
this Agreement, if (x) any change after the date of this Agreement in any law
or regulation or in the interpretation thereof by any Governmental Authority
charged with the administration thereof shall make it unlawful for a Lender to
make or maintain a Eurodollar Loan or to give effect to its obligations as
contemplated hereby with respect to a Eurodollar Loan or (y) at any time any
Lender determines that the making or continuance of any of its Eurodollar Loans
has become impracticable as a result of a contingency occurring after the date
hereof which adversely affects the London interbank market or the position of
such Lender in such market, then, by written notice to the Borrowers, such
Lender may (i) declare that Eurodollar Loans will not thereafter be made by
such Lender hereunder, whereupon any request by the Borrowers for a Eurodollar
Borrowing shall, as to such Lender only, be deemed a request for an Index Rate
Loan unless such declaration shall be subsequently withdrawn; and (ii) require
that all outstanding Eurodollar Loans made by it be converted to Index Rate
Loans, in which event all such Eurodollar Loans shall be automatically
converted to Index Rate Loans as of the effective date of such notice as
provided in paragraph (b) below. In the event any Lender shall exercise its
rights under clause (i) or (ii) of this paragraph (a), all payments and
prepayments of principal which would otherwise have been applied to repay the
Eurodollar Loans that would have been made by such Lender or the converted
Eurodollar Loans of such Lender shall instead be applied to repay the Index
Rate Loans made by such Lender in lieu of, or resulting from the conversion of,
such Eurodollar Loans.
(b) For purposes of this Section 2.16, a notice to the Borrowers by
------------
any Lender pursuant to paragraph (a) above shall be effective, if lawful, and
if any Eurodollar Loans shall then be outstanding, on the last day of the
then-current Interest Period, otherwise, such notice shall be effective on the
date of receipt by the Borrowers.
SECTION 2.17 Pro Rata Treatment, etc. All payments and repayments of
-----------------------
principal and interest in respect of the Loans (except as provided in Sections
--------
2.15 and 2.16) shall be made pro rata among the Lenders in accordance with the
-------------
then outstanding principal amount of the Loans and/or participations in Letter
of Credit Outstandings and all outstanding undrawn Letters of Credit (and the
unreimbursed amount of drawn Letters of Credit) hereunder and all payments of
Commitment Fees and Letter of Credit Fees (other than those payable to a
Fronting Bank) shall be made pro rata among the Lenders in accordance with
their Commitments. All payments by the Borrowers hereunder shall be (i) except
as otherwise provided in Section 2.18, net of any tax applicable to the
------------
Borrowers and (ii) made in Dollars in immediately available funds, without
defense, setoff or counterclaim and free of any restriction or condition, at
the office of the Administrative Agent by 12:00 noon, New York City time, on
the date on which such payment shall be due. Interest in respect of any Loan
hereunder shall accrue from and including the date of such Loan to but
excluding the date on which such Loan is paid in full or converted to a Loan of
a different Type.
SECTION 2.18 Taxes.
27
(a) Except as otherwise provided in this Section 2.18, any and all
------------
payments by the Borrowers hereunder shall be made free and clear of and without
deduction for any and all current or future taxes, levies, imposts, deductions,
charges or withholdings, and all liabilities with respect thereto, excluding
(i) taxes imposed on or measured by the net income, net profit or overall gross
receipts of the Administrative Agent or any Lender (or any transferee or
assignee thereof, including a participation holder (any such entity being
called a "Transferee")) and franchise taxes imposed on the Administrative Agent
----------
or any Lender (or Transferee) by the United States or any jurisdiction under
the laws of which the Administrative Agent or any such Lender (or Transferee)
is organized or in which the applicable lending office of any such Lender (or
Transferee) or applicable office of the Administrative Agent, is located or any
political subdivision thereof or by any other jurisdiction or by any political
subdivision or taxing authority therein other than a jurisdiction in which the
Administrative Agent or such Lender (or Transferee) would not be subject to tax
but for the execution and performance of this Agreement and (ii) taxes, levies,
imposts, deductions, charges or withholdings ("Amounts") with respect to
-------
payments hereunder to a Lender (or Transferee) or the Administrative Agent in
accordance with laws in effect on the later of the date of this Agreement and
the date such Lender (or Transferee) or the Administrative Agent becomes a
Lender (or Transferee or Administrative Agent, as the case may be) but not
excluding, with respect to such Lender (or Transferee) or the Administrative
Agent, any increase in such Amounts solely as a result of any change in such
laws occurring after such later date or any Amounts that would not have been
imposed but for actions (other than actions contemplated by this Agreement)
taken by the Borrowers after such later date (all such nonexcluded taxes,
levies, imposts, deductions, charges, withholdings and liabilities being
hereinafter referred to as "Taxes"). If the Borrowers shall be required by law
-----
to deduct any Taxes from or in respect of any sum payable hereunder to the
Lenders (or any Transferee) or the Administrative Agent, (i) the sum payable
shall be increased by the amount necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section) such Lender (or Transferee) or the Administrative Agent (as the
case may be) shall receive an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrowers shall make such deductions
and (iii) the Borrowers shall pay the full amount deducted to the relevant
taxing authority or other Governmental Authority in accordance with applicable
law.
(b) In addition, the Borrowers agree to pay any current or future
stamp or documentary taxes or any other excise or property taxes, charges,
assessments or similar levies that arise from any payment made hereunder or
from the execution, delivery or registration of, or otherwise with respect to,
this Agreement or any other Loan Document (hereinafter referred to as "Other
-----
Taxes").
-----
(c) The Borrowers will indemnify each Lender (or Transferee) and the
Administrative Agent for the full amount of Taxes and Other Taxes paid by such
Lender (or Transferee) or the Administrative Agent, as the case may be, and any
liability (including penalties, interest and expenses) arising therefrom or
with respect thereto, whether or not such Taxes or Other Taxes were correctly
or legally asserted by the relevant taxing authority or other Governmental
Authority. Such indemnification shall be made within thirty (30) days after
the date any Lender (or Transferee) or the Administrative Agent, as the case
may be, makes written demand therefor. If a Lender (or Transferee) or the
Administrative Agent shall become aware that it is entitled to receive a refund
in respect of Taxes or Other Taxes in an amount greater than
28
$50,000 as to which it has been indemnified by the Borrowers pursuant to this
Section, it shall promptly notify the Borrowers of the availability of such
refund and shall, within thirty (30) days after receipt of a request by the
Borrowers, apply for such refund at the Borrowers' expense. If any Lender (or
Transferee) or the Administrative Agent receives a refund in respect of any
Taxes or Other Taxes as to which it has been indemnified by the Borrowers
pursuant to this Section, it shall promptly notify the Borrowers of such refund
and shall, within thirty (30) days after receipt of a request by the Borrowers
(or promptly upon receipt, if the Borrowers have requested application for such
refund pursuant hereto), repay such refund to the Borrowers (to the extent of
amounts that have been paid by the Borrowers under this Section with respect to
such refund plus interest that is received by the Lender (or Transferee) or the
Administrative Agent as part of the refund), net of all out-of-pocket expenses
of such Lender (or Transferee) or the Administrative Agent and without
additional interest thereon; provided that the Borrowers, upon the request of
--------
such Lender (or Transferee) or the Administrative Agent, agree to return such
refund (plus penalties, interest or other charges) to such Lender (or
Transferee) or the Administrative Agent in the event such Lender (or
Transferee) or the Administrative Agent is required to repay such refund.
Nothing contained in this subsection (c) shall require any Lender (or
Transferee) or the Administrative Agent to make available any of its tax
returns (or any other information relating to its taxes that it deems to be
confidential).
(d) Within thirty (30) days after the date of any payment of Taxes or
Other Taxes withheld by the Borrowers in respect of any payment to any Lender
(or Transferee) or the Administrative Agent, the Borrowers will furnish to the
Administrative Agent, at its address referred to on the signature pages hereof,
the original or a certified copy of a receipt evidencing payment thereof.
(e) Without prejudice to the survival of any other agreement contained
herein, the agreements and obligations contained in this Section shall survive
the payment in full of the principal of and interest on all Loans made
hereunder.
(f) Each Lender (and Transferee) and the Administrative Agent shall,
if not a United States Person (as such term is defined in Section 7701(a)(30)
of the Code), on or prior to the Closing Date (in the case of each Lender
listed on the signature pages hereof on the Closing Date) or on or prior to the
date of the Assignment and Acceptance pursuant to which it becomes a Lender (in
the case of each other Lender), deliver to the Borrowers and the Administrative
Agent such certificates, documents and other evidence, as required by the Code
or Treasury Regulations issued pursuant thereto, including two original copies
of (A) Internal Revenue Service Form W-9 (unless such Lender (or Transferee) or
the Administrative Agent is an "exempt recipient" as defined in Treasury
Regulations Section 1.6049-4(c) for which no withholding is required) and two
original copies of (B) Internal Revenue Service Forms 1001, 4224, W-8BEN or
W-8ECI and any other certificate or statement of exemption required by Treasury
Regulation Section 1.1441-1, 1.1441-4 or 1.1441-6(c) or any subsequent version
thereof or successors thereto, properly completed and duly executed by such
Lender (or Transferee) or the Administrative Agent to establish that such
payment is (i) not subject to United States Federal withholding tax under the
Code because such payment is effectively connected with the conduct by such
Lender (or Transferee) or the Administrative Agent of a trade or business in
the United States or (ii) totally exempt from United States Federal withholding
tax or subject to a reduced rate of such tax under a provision of an applicable
tax
29
treaty. Unless the Borrowers and the Administrative Agent have received forms
or other documents satisfactory to them indicating that such payments hereunder
are not subject to United States Federal withholding tax or are subject to such
tax at a rate reduced by an applicable tax treaty, the Borrowers or the
Administrative Agent shall withhold taxes from such payments at the applicable
statutory rate.
(g) The Borrowers shall not be required to pay any additional amounts
to any Lender (or Transferee) or the Administrative Agent in respect of United
States Federal withholding tax pursuant to subsection (a) above if the
obligation to pay such additional amounts would not have arisen but for a
failure by such Lender (or Transferee) or the Administrative Agent to comply
with the provisions of subsection (f) above.
(h) Any Lender (or Transferee) or the Administrative Agent claiming
any additional amounts payable pursuant to this Section 2.18 shall use
------------
reasonable efforts (consistent with legal and regulatory restrictions) to file
any certificate or document requested by the Borrowers or to change the
jurisdiction of its applicable lending office if the making of such a filing or
change would avoid the need for or reduce the amount of any such additional
amounts that may thereafter accrue and would not, in the sole determination of
such Lender (or Transferee) or the Administrative Agent, be otherwise
materially disadvantageous to such Lender (or Transferee) or the Administrative
Agent.
SECTION 2.19 Certain Fees. The Borrowers shall pay to the
------------
Administrative Agent, for the respective accounts of the Administrative Agent
and the Lenders, the fees set forth in that certain letter dated October 14,
2001 between the Administrative Agent and the Parent at the times set forth
therein.
SECTION 2.20 Commitment Fee. The Borrowers shall pay to the Lenders a
--------------
commitment fee (the "Commitment Fee") for the period commencing on the Filing
--------------
Date to the Termination Date or the earlier date of termination of the
Commitment calculated (on the basis of the actual number of days elapsed over a
year of 360 days) at a rate of 0.50% per annum on the average daily Unused
Total Commitment during the preceding month. The issuance of Letters of Credit
shall be treated as usage of the Commitment. Such Commitment Fee, to the
extent then accrued, shall be payable (x) monthly, in arrears, on the first
Business Day of the next succeeding month, (y) on the Termination Date and (z)
as provided in Section 2.10 hereof, upon any reduction or termination in whole
------------
or in part of the Total Commitment.
SECTION 2.21 Letter of Credit Fees. The Borrowers shall pay with
---------------------
respect to each Letter of Credit (i) to the Administrative Agent on behalf of
the Lenders a fee calculated (on the basis of the actual number of days elapsed
over a year of 360 days) at a rate equal to 3.50% per annum on the undrawn
stated amount thereof, and (ii) to the Fronting Bank such Fronting Bank's
customary fees for fronting, issuance, amendments and processing referred to in
Section 2.3. In addition, the Borrowers agree to pay each Fronting Bank for
-----------
its account a fronting fee in respect of each Letter of Credit issued by such
Fronting Bank, for the period from and including the date of issuance of such
Letter of Credit to and including the date of termination of such Letter of
Credit, computed at the rate set forth in the Fee Letter, and payable at times,
to be determined by such Fronting Bank, the Borrowers and the Administrative
Agent. Accrued fees described in clause (i) of the first sentence of this
paragraph in respect of each Letter of Credit shall be due
30
and payable monthly in arrears on the first Business Day of the next succeeding
month and on the Termination Date, or such earlier date as the Total Commitment
is terminated. Accrued fees described in clause (ii) of the first sentence of
this paragraph in respect of each Letter of Credit shall be payable at times to
be determined by the Fronting Bank, the Borrowers and the Administrative Agent.
SECTION 2.22 Nature of Fees. All Fees shall be paid on the dates due,
--------------
in immediately available funds, to the Administrative Agent for the respective
accounts of the Administrative Agent and the Lenders, as provided herein and in
the letter described in Section 2.19. Once paid, none of the Fees shall be
------------
refundable under any circumstances.
SECTION 2.23 Priority and Liens.
------------------
(a) The Borrowers hereby covenant, represent and warrant that, upon
entry of the Interim Order, the Obligations of the Borrowers hereunder and
under the Loan Documents: (i) pursuant to Section 364(c)(1) of the Bankruptcy
Code, shall at all times constitute an allowed Superpriority Claim; (ii)
pursuant to Section 364(c)(2) of the Bankruptcy Code, shall at all times be
secured by a perfected first priority Lien on all unencumbered property of the
Borrowers (other than interests of the Borrowers in the entities listed on
Schedule 2.23) and on all cash maintained in the Letter of Credit Account and
-------------
any direct investments of the funds contained therein, provided that amounts in
the Letter of Credit Account shall not be subject to the Carve- Out; (iii)
pursuant to Section 364(c)(3) of the Bankruptcy Code, shall be secured by a
perfected junior Lien upon the Parent's inventory and all other property of the
Borrowers that is subject to valid and perfected Liens in existence on the
Filing Date or that is subject to valid Liens in existence on the Filing Date
that are perfected subsequent to the Filing Date as permitted by Section 546(b)
of the Bankruptcy Code (other than property, other than the Parent's inventory,
that is subject to the existing Liens that secure obligations under the
Existing Credit Agreement or are otherwise not permitted to be primed pursuant
to the Interim Order or the Final Order, as the case may be, which Liens shall
be primed by the Liens to be granted to the Administrative Agent described in
the following clause (iv)); and (iv) pursuant to Section 364(d)(1) of the
Bankruptcy Code, shall be secured by a perfected first priority, senior priming
Lien (collectively, the "Priming Liens") on all of the property of the
-------------
Borrowers and the Guarantors (including, without limitation, inventory,
accounts receivable, rights under license agreements, property, plant and
equipment, interests in leaseholds and capital stock of Subsidiaries of the
Parent, limited, in the case of an entity that is a controlled foreign
corporation under Section 957 of the Code, to 66% of the voting stock of such
entity) that is subject to any existing Liens (the "Primed Liens"), which
------------
secure the Borrowers' prepetition Indebtedness under the Existing Credit
Agreement (but subject to Permitted Liens in existence on the Filing Date to
which the Priming Liens are subject or become subject subsequent to the Filing
Date as permitted by Section 546(b) of the Bankruptcy Code), all of which
Primed Liens shall be primed by and made subject and subordinate to the
perfected first priority senior Liens to be granted to the Administrative
Agent, which senior Priming Liens in favor of the Administrative Agent shall
also prime any Liens granted after the commencement of the Cases to provide
adequate protection Liens in respect of any of the Primed Liens but shall not
prime Liens, if any, to the extent such Liens secure obligations listed as
secured obligations on Schedule 6.3, subject in each case only to (x) in the
------------
event of the occurrence and during the continuance of an Event of Default, the
payment of allowed and unpaid professional fees and disbursements incurred by
the
31
the Cases in an aggregate amount not in excess of $3,500,000 (plus professional
fees and disbursements incurred prior to the occurrence of such Event of
Default to the extent (i) subsequently allowed, and (ii) in the amount(s)
specifically set forth in the immediately preceding Borrowing Base Certificate
with respect to such incurred fees and disbursements) and (y) the payment of
fees pursuant to 28 U.S.C. Section 1930 and to the Clerk of the Bankruptcy
Court
(collectively, the "Carve-Out"), provided that no portion of the Carve-Out
shall be utilized for the payment of professional fees and disbursements
incurred in connection with any challenge to the amount, extent, priority,
validity, perfection or enforcement of the Indebtedness of the Borrowers owed
with respect to the parties primed by the Priming Liens or to the collateral
securing such Indebtedness or any other action against such parties. Amounts
in the Letter of Credit Account shall not be subject to the Carve-Out.
Notwithstanding the foregoing, so long as no Event of Default shall have
occurred and be continuing, the Borrowers shall be permitted to pay
compensation and reimbursement of expenses allowed and payable under 11 U.S.C.
Section 330 and 11 U.S.C. Section 331, as the same may be due and payable, and
any compensation and expenses previously paid, or accrued but unpaid, prior to
the occurrence of such Event of Default shall not reduce the Carve- Out.
Notwithstanding the foregoing or any provision of the Security and Pledge
Agreement to the contrary, Collateral shall not include any of the Borrowers'
avoidance actions under Sections 544 through 549 of the Bankruptcy Code.
(b) The obligations of the Guarantors under the Loan Documents shall
be secured by a perfected first priority Lien on all of the property of the
Guarantors (including, without limitation, inventory, accounts receivable,
rights under license agreements, property, plant and equipment, interests in
leaseholds and capital stock of Subsidiaries of the Guarantors, limited, in the
case of an entity that is a controlled foreign corporation under Section 957 of
the Code, to 66% of the voting stock of such entity) other than property
subject to Permitted Liens and interests of the Guarantors in the entities
listed on Schedule 2.23.
-------------
(c) As to all real property the title to which is held by a Borrower
or the Guarantors, or the possession of which is held by a Borrower or the
Guarantors pursuant to a leasehold interest, the Borrowers and the Guarantors
hereby assign and convey as security, grant a security interest in,
hypothecate, mortgage, pledge and set over unto the Administrative Agent on
behalf of the Lenders all of the right, title and interest of the Borrowers or
the Guarantors, as applicable, in all of such owned real property and in all
such leasehold interests, together in each case with all of the right, title
and interest of the Borrowers and the Guarantors in and to all buildings,
improvements, and fixtures related thereto, any lease or sublease thereof, all
general intangibles relating thereto and all proceeds thereof. The Borrowers
acknowledge that, pursuant to the Interim Order (or the Final Order, as
applicable), the Liens in favor of the Administrative Agent on behalf of the
Lenders in all of such real property and leasehold instruments of the Borrowers
shall be perfected without the recordation of any instruments of mortgage or
assignment. The Borrowers and the Guarantors further agree that, upon the
request of the Administrative Agent, in the exercise of its business judgment,
the Borrowers and the Guarantors shall enter into separate fee and leasehold
mortgages in recordable form with respect to such properties on terms
satisfactory to the Administrative Agent.
(d) To the extent any Borrower makes aggregate payments to the Lenders
in excess of the aggregate amount of all Loans received by such Borrower from
the Lenders after
32
the commencement of the Cases, then such Borrower, after the payment in full of
all obligations of the Borrowers in respect of the Commitment and the
termination of the Commitment, shall be entitled to a claim under Section
364(c)(1) of the Bankruptcy Code against each other Borrower, in such amount as
may be determined by the Bankruptcy Court taking into account the relative
benefits received by each such person, and such claims shall be deemed to be
subordinate and junior in all respects to the superpriority claims of the
Lenders and the superpriority claims granted as adequate protection to the
parties primed by the Primed Liens.
SECTION 2.24 Use of Cash Collateral. Notwithstanding anything to the
----------------------
contrary contained herein, the Borrowers shall not be permitted (i) to request
a Borrowing under Section 2.6 or request the issuance of a Letter of Credit
under Section 2.3 unless the Bankruptcy Court shall have entered the Interim
-----------
Order or (ii) to request a Borrowing under Section 2.6 unless the Borrowers
-----------
shall at that time have the use of all cash collateral subject to the Orders
for the purposes described in Section 3.10.
------------
SECTION 2.25 Right of Set-Off. Subject to the provisions of Section
---------------- -------
7.1, upon the occurrence and during the continuance of any Event of Default,
---
the Administrative Agent and each Lender is hereby authorized at any time and
from time to time, to the fullest extent permitted by law and without further
order of or application to the Bankruptcy Court, 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 the Administrative Agent
and each such Lender to or for the credit or the account of any Borrower
against any and all of the obligations of such Borrower now or hereafter
existing under the Loan Documents, irrespective of whether or not such Lender
shall have made any demand under any Loan Document and although such
obligations may not have been accelerated. Each Lender and the Administrative
Agent agrees promptly to notify the Borrowers after any such set-off and
application made by such Lender or by the Administrative Agent, as the case may
be, 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 the
Administrative Agent under this Section are in addition to other rights and
remedies which such Lender and the Administrative Agent may have upon the
occurrence and during the continuance of any Event of Default.
SECTION 2.26 Security Interest in Letter of Credit Account. Pursuant
---------------------------------------------
to Section 364(c)(2) of the Bankruptcy Code, the Borrowers hereby assign and
pledge to the Administrative Agent, for its benefit and for the ratable benefit
of the Lenders, and hereby grant to the Administrative Agent, for its benefit
and for the ratable benefit of the Lenders, a first priority security interest,
senior to all other Liens, if any, in all of the Borrowers' right, title and
interest in and to the Letter of Credit Account and any direct investment of
the funds contained therein. Cash held in the Letter of Credit Account shall
not be available for use by the Borrowers, whether pursuant to Section 363 of
the Bankruptcy Code or otherwise.
SECTION 2.27 Payment of Obligations. Subject to the provisions of
----------------------
Section 7.1, upon the maturity (whether by acceleration or otherwise) of any of
-----------
the Obligations under this Agreement or any of the other Loan Documents of the
Borrowers, the Lenders shall be entitled to immediate payment of such
Obligations without further application to or order of the Bankruptcy Court.
33
SECTION 2.28 No Discharge; Survival of Claims. Each of the Borrowers
--------------------------------
agrees that (i) its obligations hereunder shall not be discharged by the entry
of an order confirming a Reorganization Plan (and each of the Borrowers,
pursuant to Section 1141(d)(4) of the Bankruptcy Code, hereby waives any such
discharge) and (ii) the Superpriority Claim granted to the Administrative Agent
and the Lenders pursuant to the Order and described in Section 2.23 shall not
------------
be affected in any manner by the entry of an order confirming a Plan of
Reorganization.
SECTION 2.29 Replacement of Certain Lenders. In the event a Lender
------------------------------
("Affected Lender") shall have: (i) failed to fund its Commitment Percentage
of any Loan requested by the Borrowers or to fund its Commitment Percentage of
any unreimbursed payment made by the Fronting Bank, which such Lender is
obligated to fund under the terms of this Agreement and which failure has not
been cured, (ii) requested compensation from the Borrowers under Section 2.15
with respect to increased costs or capital or under Section 2.18 to recover
------------
Taxes, Other Taxes or other additional costs incurred by such Lender which, in
any case, are not being incurred generally by the other Lenders, or (iii)
delivered a notice pursuant to Section 2.16 claiming that such Lender is unable
------------
to extend Eurodollar Loans to the Borrowers for reasons not generally
applicable to the other Lenders, then, in any case, the Borrowers or the
Administrative Agent may make written demand on such Affected Lender (with a
copy to the Administrative Agent in the case of a demand by the Borrowers and a
copy to the Borrowers in the case of a demand by the Administrative Agent) for
the Affected Lender to assign, and such Affected Lender shall use commercially
reasonable efforts to assign pursuant to one or more duly executed Assignments
and Acceptances five (5) Business Days after the date of such demand, to one or
more financial institutions that comply with the provisions of Section 10.3
------------
which the Borrowers or the Administrative Agent, as the case may be, shall have
engaged for such purpose ("Replacement Lender"), all of such Affected Lender's
------------------
rights and obligations under this Agreement and the other Loan Documents
(including, without limitation, its Commitment, all Loans owing to it, all of
its participation interests in existing Letters of Credit, and its obligation
to participate in additional Letters of Credit hereunder) in accordance with
Section 10.3. The Administrative Agent agrees, upon the occurrence of such
------------
events with respect to an Affected Lender and upon the written request of the
Borrowers, to use its reasonable efforts to obtain the commitments from one or
more financial institutions to act as a Replacement Lender. The Administrative
Agent is authorized to execute one or more of such Assignments and Acceptances
as attorney-in-fact for any Affected Lender failing to execute and deliver the
same within five (5) Business Days after the date of such demand. Further,
with respect to such assignment the Affected Lender shall have concurrently
received, in cash, all amounts due and owing to the Affected Lender hereunder
or under any other Loan Document, including, without limitation, the aggregate
outstanding principal amount of the Loans owed to such Lender, together with
accrued interest thereon through the date of such assignment, amounts payable
under Section 2.15 with respect to such Affected Lender and compensation
------------
payable under Section 2.20 in the event of any replacement of any Affected
------------
Lender under clause (ii) or clause (iii) of this Section 2.29; provided that
------------ --------
upon such Affected Lender's replacement, such Affected Lender shall cease to be
a party hereto but shall continue to be entitled to the benefits of Sections
--------
2.15, 10.5 and 10.6, as well as to any fees accrued for its account hereunder
---- ---- ----
and not yet paid, and shall continue to be obligated under Section 8.6 with
-----------
respect to losses, obligations, liabilities, damages, penalties, actions,
judgments, costs, expenses or disbursements for matters which occurred prior to
the date the Affected Lender is replaced.
34
SECTION 3. REPRESENTATIONS AND WARRANTIES
In order to induce the Lenders to make Loans and issue and/or
participate in Letters of Credit hereunder, each of the Borrowers, jointly and
severally, and the Guarantors (as applicable) represent and warrant as follows:
SECTION 3.1 Organization and Authority. Each of the Borrowers and the
--------------------------
Guarantors (i) is duly organized, validly existing and in good standing under
the law of its jurisdiction of organization; (ii) is duly qualified to do
business and in good standing in each jurisdiction in which the failure to so
qualify would have a material adverse effect on the financial condition,
operations, business, properties, prospects or assets of the Borrowers and the
Guarantors taken as a whole; (iii) subject to the entry by the Bankruptcy Court
of the Interim Order (or the Final Order, as applicable), has the requisite
power and authority to effect the transactions contemplated hereby, and by the
other Loan Documents to which it is a party, and (iv) subject to the entry by
the Bankruptcy Court of the Interim Order (or the Final Order, as applicable),
has all requisite power and authority and the legal right to own and operate
its properties, and to conduct its business as now or currently proposed to be
conducted.
SECTION 3.2 Due Execution. Upon the entry by the Bankruptcy Court of
-------------
the Interim Order (or the Final Order, as applicable), the execution, delivery
and performance by each of the Borrowers and the Guarantors of each of the Loan
Documents to which it is a party, including, without limitation, the grant and
pledge by the Borrowers of the security interests granted by the Security and
Pledge Agreement, (i) are within the respective powers of each of the Borrowers
and the Guarantors, have been duly authorized by all necessary action,
including the consent of shareholders, partners or members, where required, and
do not (A) contravene the Organizational Documents of any of the Borrowers, (B)
violate any law (including, without limitation, the Securities Exchange Act of
1934) or regulation (including, without limitation, Regulations T, U or X of
the Board), or any order or decree of any court or Governmental Authority, (C)
conflict with or result in a breach of, or constitute a default under, any
indenture, mortgage or deed of trust entered into after the Filing Date or any
lease, agreement or other instrument entered into after the Filing Date binding
on the Borrowers, the Guarantors or any of their respective properties, or (D)
result in or require the creation or imposition of any Lien upon any of the
property of any of the Borrowers other than Liens granted pursuant to this
Agreement (or otherwise contemplated by Section 2.23); and (ii) do not require
------------
the consent, authorization by or approval of or notice to or filing or
registration with any Governmental Authority other than the entry of the
Interim Order (or the Final Order, as applicable). Except for the entry of the
Interim Order (or the Final Order, as applicable), no authorization, approval
or other action by, and no notice to or filing with, any Governmental Authority
or regulatory body is required for the perfection of the security interests or
the exercise by the Administrative Agent or the Lenders of their respective
rights and remedies under the Loan Documents. Upon the entry by the Bankruptcy
Court of the Interim Order (or the Final Order, as applicable), this Agreement
shall have been duly executed and delivered by each of the Borrowers and the
Guarantors. Upon the entry by the Bankruptcy Court of the Interim Order (or
the Final Order, as applicable), this Agreement, and each of the other Loan
Documents to which the Borrowers and/or the Guarantors are or will be a party,
when delivered hereunder or thereunder, will be, a legal, valid and binding
obligation of each Borrower and the Guarantors, enforceable against the
Borrowers and the Guarantors in accordance with its terms and the Orders.
35
SECTION 3.3 Statements Made. The information that has been delivered
---------------
in writing by any of the Borrowers or the Guarantors to the Administrative
Agent or to the Bankruptcy Court in connection with any Loan Document, and any
financial statement delivered pursuant hereto or thereto (other than to the
extent that any such statements constitute projections), taken as a whole and
in light of the circumstances in which made, contains no untrue statement of a
material fact and does not omit to state a material fact necessary to make such
statements not misleading; and, to the extent that any such information
constitutes projections, such projections were prepared in good faith on the
basis of assumptions, methods, data, tests and information believed by such
Borrower or the Guarantors to be reasonable at the time such projections were
furnished.
SECTION 3.4 Financial Statements. The Parent has furnished the
--------------------
Lenders with copies of (i) the audited consolidated financial statement and
schedules of the Parent and its Subsidiaries for the fiscal year ended December
31, 2000 and (ii) the unaudited consolidated financial statement and schedules
of the Parent and its Subsidiaries for each fiscal quarter ending thereafter.
Such financial statements present fairly the financial condition and results of
operations of the Parent and its Subsidiaries on a consolidated basis as of
such dates and for such periods; such balance sheets and the notes thereto
disclose all liabilities, direct or contingent, of the Parent and its
Subsidiaries as of the dates thereof required to be disclosed by GAAP and such
financial statements were prepared in a manner consistent with GAAP (except,
with respect to such fiscal quarter statements, for the absence of footnotes),
subject (in the case of such fiscal quarter statements) to normal year end
adjustments. No material adverse change in the operations, businesses,
properties, assets, prospects or condition (financial or otherwise) of the
Parent and its Subsidiaries, taken as a whole, has occurred from that set forth
in the Borrowers' consolidated financial statements for the fiscal year ended
December 31, 2000 and the fiscal quarter ended June 30, 2001 other than those
which customarily occur as a result of events leading up to and following the
commencement of a proceeding under Chapter 11 of the Bankruptcy Code and the
commencement of the Cases (including, without limitation, those reflected in
the financial projections heretofore made available to the Administrative
Agent).
SECTION 3.5 Ownership. Each of the Persons listed on Schedule 3.5 is
--------- ------------
a direct or indirect Subsidiary of the Parent and Schedule 3.5 correctly sets
------------
forth the ownership interest of each of the Parent and its Subsidiaries, in
each case as of the Closing Date. As of the Closing Date, none of the
Borrowers nor the Guarantors owns any other Subsidiaries, whether directly or
indirectly, other than as set forth on Schedule 3.5.
------------
SECTION 3.6 Liens. There are no Liens of any nature whatsoever on any
-----
assets of any of the Borrowers or the Guarantors or their Subsidiaries other
than Permitted Liens. Neither the Parent nor its Subsidiaries are parties to
any contract, agreement, lease or instrument the performance of which, either
unconditionally or upon the happening of an event, will result in or require
the creation of a Lien on any assets of the Parent or any of its Subsidiaries
or otherwise result in a violation of this Agreement other than the Liens
granted to the Administrative Agent and the Lenders as provided for in this
Agreement (or as otherwise contemplated by Section 2.23).
------------
SECTION 3.7 Compliance with Environmental Laws.
----------------------------------
36
(a) Except as set forth in Schedule 3.7, (i) The operations of the
------------
Parent and its Subsidiaries comply with all applicable environmental, health
and safety statutes and regulations, including, without limitation, regulations
promulgated under the Resource Conservation and Recovery Act (42 U.S.C.
Sections 6901 et seq.), except for such noncompliance that would not result in
aggregate environmental liabilities that could reasonably be expected to exceed
$5,000,000; (ii) none of the operations of the Parent or its Subsidiaries is
the subject of any Federal or state investigation evaluating whether any
remedial action involving an expenditure (including damages, penalties, fines,
costs or expenses) in excess of $5,000,000 by the Parent or its Subsidiaries is
needed to respond to a release of any Hazardous Waste or Hazardous Substance
(as such terms are defined in any applicable state or Federal environmental law
or regulations) into the environment; and (iii) the Parent and its Subsidiaries
do not have any contingent liability in connection with any release of any
Hazardous Waste or Hazardous Substance into the environment that could
reasonably be expected to result in liability in excess of $5,000,000.
(b) Excepts as disclosed on Schedule 3.7, None of the Parent or its
------------
Subsidiaries is in violation of any law, rule or regulation, or in default with
respect to any judgment, writ, injunction or decree of any Governmental
Authority the violation of which, or a default with respect to which, would
have a material adverse effect on the financial condition, operations,
businesses, properties, prospects or assets of the Parent and its Subsidiaries
taken as a whole.
SECTION 3.8 Insurance. All policies of insurance of any kind or
---------
nature owned by or issued to the Parent and its Subsidiaries, including,
without limitation, policies of life, fire, theft, product liability, public
liability, property damage, other casualty, employee fidelity, workers'
compensation, employee health and welfare, title, property and liability
insurance, are in full force and effect and are of a nature and provide such
coverage as is customarily carried by companies of the size and character of
the Parent and its Subsidiaries.
SECTION 3.9 The Orders. On the date of the making of the initial
----------
Loans or the issuance of the initial Letters of Credit hereunder, whichever
first occurs, the Interim Order will have been entered and will not have been
stayed, amended, vacated, reversed or rescinded. On the date of the making of
any Loan or the issuance of any Letter of Credit, the Interim Order or the
Final Order, as the case may be, shall have been entered and shall not have
been amended, stayed, vacated, reversed or rescinded. Upon the maturity
(whether by the acceleration or otherwise) of any of the obligations of the
Borrower and the Guarantors hereunder and under the other Loan Documents, the
Lenders shall, subject to the provisions of Section 7.1, be entitled to
-----------
immediate payment of such obligations, and to enforce the remedies provided for
hereunder, without further application to or order by the Bankruptcy Court.
SECTION 3.10 Use of Proceeds. The proceeds of the Loans shall be used
---------------
in accordance with Section 2.2 for (i) working capital; (ii) other general
-----------
corporate purposes of the Borrowers; (iii) payment of any related transaction
costs, fees and expenses; and (iv) as may be necessary, the repurchase of
accounts receivable in connection with the termination of the Prepetition
Securitization Facility. The Letters of Credit shall be issued in support of
obligations of the Borrowers that are consistent with past practices of the
Borrowers, as disclosed to the Administrative Agent, and that are acceptable to
the Administrative Agent.
37
SECTION 3.11 Litigation. There are no unstayed actions, suits or
----------
proceedings pending or, to the best knowledge of the Borrowers or the
Guarantors, threatened against or affecting the Borrowers or the Guarantors or
its Subsidiaries or any of their respective properties, before any court or
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, that are reasonably likely to have a material adverse
effect on the operations, businesses, properties, assets, prospects or
financial condition of the Parent and its Subsidiaries taken as a whole.
SECTION 3.12 Intellectual Property. Set forth on Schedule 3.12 hereto
--------------------- -------------
is a complete and accurate list of all material patents, trademarks, trade
names, service marks and material copyrights, and all applications therefor and
licenses thereof, of each Borrower or any of its Subsidiaries, showing as of
the date hereof the jurisdiction in which registered, the registration number
and the date of registration.
SECTION 4. CONDITIONS OF LENDING
---------------------
SECTION 4.1 Conditions Precedent to Initial Loan and Initial Letter of
----------------------------------------------------------
Credit. The obligation of the Lenders to make the initial Loan or the Fronting
------
Bank to issue the initial Letter of Credit, whichever may occur first, is
subject to the following conditions precedent:
(a) Supporting Documents. The Administrative Agent shall have
--------------------
received for each Borrower and Guarantor:
(i) a copy of each Organizational Document originally executed and
delivered by each Borrower and each Guarantor, as applicable, and, to the
extent applicable, certified as of a recent date by the applicable
Governmental Authority, each dated the Closing Date or a recent date prior
thereto;
(ii) signature and incumbency certificates of the officers of such
Person executing the Loan Documents to which it is a party, dated as of the
Closing Date;
(iii) duly adopted resolutions of the board of directors or similar
governing body of each Borrower and each Guarantor approving and
authorizing the execution, delivery and performance of this Agreement and
the other Loan Documents to which it is a party or by which it or its
assets may be bound as of the Closing Date, certified as of the Closing
Date by its secretary, assistant secretary or other authorized officer as
being in full force and effect without modification or amendment;
(iv) a good standing certificate from the applicable Governmental
Authority of each Borrower's and each Guarantor's jurisdiction of
incorporation, organization or formation each dated a recent date prior to
the Closing Date; and
(v) such other documents as the Administrative Agent may reasonably
request.
(b) Interim Order. Not later than ten (10) days following the Filing
-------------
Date, the Administrative Agent and the Lenders shall have received a certified
copy of an order of the Bankruptcy Court in substantially the form of Exhibit
-------
A-1 (the "Interim Order") approving the
--- -------------
38
Loan Documents and granting the Superpriority Claim status and senior Priming
Liens and other Liens described in Section 2.23 which Interim Order (i) shall
------------
have been entered upon an application or motion of the Borrowers reasonably
satisfactory in form and substance to the Administrative Agent and shall have
been entered on such prior notice to such parties as may be satisfactory to the
Administrative Agent, (ii) shall authorize extensions of credit in amounts
satisfactory to the Administrative Agent, (iii) shall approve the payment by
the Borrowers of all of the Fees set forth in Sections 2.19, 2.20 and 2.21,
------------- ---- ----
(iv) shall be in full force and effect, (v) shall not have been stayed,
reversed, modified or amended in any respect, and (vi) shall be entered with
the consent or non-objection of a preponderance (as determined by the
Administrative Agent in its sole discretion) of the secured creditors of any of
the Borrowers under the Existing Credit Agreement; and, if the Interim Order is
the subject of a pending appeal in any respect, neither the making of such Loan
nor the issuance of such Letter of Credit nor the performance by any of the
Borrowers or the Guarantors of any of their obligations hereunder or under the
Loan Documents or under any other instrument or agreement referred to herein
shall be the subject of a presently effective stay pending appeal.
(c) First Day Orders. All of the "first day orders" entered by the
----------------
Bankruptcy Court at the time of the commencement of the Cases, including any
orders authorizing the use of cash collateral and/or adequate protection (as
provided in paragraph 20 of the Interim Order) (the "First Day Orders"), shall
----------------
be reasonably satisfactory in form and substance to the Administrative Agent.
(d) Opinion of Counsel. The Administrative Agent and the Lenders
------------------
shall have received the favorable written opinions of Weil, Gotshal & Xxxxxx
LLP and Xxxxxxx X. Xxxxxx, Senior Vice President, General Counsel and
Secretary of the Borrowers and the Guarantors, substantially in the form of
Exhibit C.
---------
(e) Payment of Fees. The Borrowers shall have paid to the
---------------
Administrative Agent the then unpaid balance of all accrued and unpaid Fees due
under and pursuant to this Agreement and the letter referred to in Section
-------
2.19.
----
(f) Corporate and Judicial Proceedings. All corporate and judicial
----------------------------------
proceedings and all instruments and agreements in connection with the
transactions among the Borrowers, the Guarantors, the Administrative Agent and
the Lenders contemplated by this Agreement shall be reasonably satisfactory in
form and substance to the Administrative Agent, and the Administrative Agent
shall have received all information and copies of all documents and papers,
including records of corporate and judicial proceedings, which the
Administrative Agent may have requested in connection therewith, such documents
and papers where appropriate to be certified by proper corporate, governmental
or judicial authorities.
(g) Information. The Administrative Agent shall have received such
-----------
information (financial or otherwise) as may be reasonably requested by the
Administrative Agent and shall have discussed such information with the
Borrowers' management and shall be satisfied with the nature and substance of
such discussions.
(h) Forecast. The Administrative Agent and the Lenders shall have
--------
received from the Borrowers a forecast of the Borrowers' cash flows for the
3-month period ending
39
December 31, 2001 on a monthly basis and thereafter through the Maturity Date
on a quarterly basis and setting forth the anticipated uses of the Loans under
this Agreement and such forecast shall be reasonably satisfactory in form and
substance to them.
(i) UCC-11 Searches. The Administrative Agent shall have received
---------------
UCC-11 searches conducted in the jurisdictions of organization or formation of
each Borrower and Guarantor and the jurisdictions in which the Borrowers and
the Guarantors conduct business, satisfactory to the Administrative Agent
(dated as of a date reasonably satisfactory to the Administrative Agent),
reflecting the absence of Liens and encumbrances on the assets of the Borrowers
other than Permitted Liens.
(j) Prepetition Securitization Facility. The Bankruptcy Court shall
-----------------------------------
have entered an order authorizing the Borrowers to repurchase the accounts
receivable subject to the Prepetition Securitization Facility with the proceeds
of a Borrowing and such repurchase shall have been consummated in a manner
acceptable to the Administrative Agent. In addition to the foregoing, all
letters of credit issued under the Prepetition Securitization Facility shall
have been backstopped or cash collateralized.
(k) Other Conditions. Such other conditions as are satisfactory to
----------------
the Administrative Agent.
SECTION 4.2 Conditions Precedent to Each Loan and Each Letter of
----------------------------------------------------
Credit. The obligation of the Lenders to make each Loan and of the Fronting
------
Bank to issue each Letter of Credit, including the initial Loan and the initial
Letter of Credit, is subject to the following conditions precedent:
(a) Notice. The Administrative Agent shall have received a notice
------
with respect to each Borrowing or the issuance of each Letter of Credit, as the
case may be, as required by Section 2.
---------
(b) Representations and Warranties. All representations and
------------------------------
warranties contained in this Agreement and the other Loan Documents shall be
true and correct in all material respects on and as of the date of each
Borrowing or the issuance of each Letter of Credit hereunder with the same
effect as if made on and as of such date except to the extent such
representations and warranties expressly relate to an earlier date.
(c) No Default. On the date of each Borrowing or the issuance of each
----------
Letter of Credit hereunder, no Event of Default or event which upon notice or
lapse of time or both would constitute an Event of Default shall have occurred
and be continuing.
(d) Orders. The Interim Order shall be in full force and effect and
------
shall not have been stayed, reversed, modified or amended in any respect
without the prior written consent of the Administrative Agent and the Required
Lenders, provided that if at the time of the making of any Loan or the issuance
--------
of any Letter of Credit the aggregate amount of either of which, when added to
the sum of the principal amount of all Loans then outstanding and the Letter of
Credit Outstandings, would exceed the lesser of (i) the Initial Period
Available Commitment or (ii) the amount authorized by the Interim Order
(collectively, the "Additional Credit"), the Administrative Agent and each of
-----------------
the Lenders shall have received a certified copy of an order of
40
the Bankruptcy Court in substantially the form of Exhibit A-2 (the "Final
----------- -----
Order"), which, in any event, shall have been entered by the Bankruptcy Court
-----
no later than thirty (30) days after the entry of the Interim Order, and at the
time of the extension of any Additional Credit the Final Order shall be in full
force and effect, and shall not have been stayed, reversed, modified or amended
in any respect without the prior written consent of the Administrative Agent
and the Required Lenders; and, if either the Interim Order or the Final Order
is the subject of a pending appeal in any respect, neither the making of the
Loans nor the issuance of any Letter of Credit nor the performance by any
Borrower or the Guarantors of any of their obligations under any of the Loan
Documents or under any other instrument or agreement referred to herein shall
be the subject of a presently effective stay pending appeal.
(e) Payment of Fees. The Borrowers shall have paid to the
---------------
Administrative Agent the then unpaid balance of all accrued and unpaid Fees
then due and payable under and pursuant to this Agreement and the letter
referred to in Section 2.19.
------------
(f) Borrowing Base Certificate. The Administrative Agent shall have
--------------------------
received the most recent Borrowing Base Certificate required to be delivered on
the Closing Date or in accordance with Section 5.8, which Borrowing Base
-----------
Certificate shall include supporting schedules as reasonably required by the
Administrative Agent.
(g) Usage. The uses of such Borrowing or such Letter of Credit shall
-----
be substantially consistent with the forecast described in Section 4.1(i) (as
updated from time to time), as applicable.
(h) Field Examinations. The Administrative Agent shall have conducted
------------------
and be satisfied with the results of field examinations of the Borrowers'
accounts receivable, equipment and real property.
(i) Other Conditions. Such other conditions as are reasonably
----------------
requested by the Administrative Agent.
SECTION 5. AFFIRMATIVE COVENANTS
From the date hereof and for so long as any Commitment shall be in
effect or any Letter of Credit shall remain outstanding (in a face amount in
excess of the amount of cash then held in the Letter of Credit Account, or in
excess of the face amount of back-to-back letters of credit delivered, in each
case pursuant to Section 2.3(b)), or any amount shall remain outstanding or
--------------
unpaid under this Agreement, the Parent agrees, with respect to itself and its
Subsidiaries (including the other Borrowers and the Guarantors), that, unless
the Required Lenders shall otherwise consent in writing, the Parent will:
SECTION 5.1 Financial Statements, Reports, etc. Deliver to the
----------------------------------
Administrative Agent and each of the Lenders:
(a) within ninety (90) days after the end of each fiscal year, the
Parent's and its Subsidiaries' consolidated balance sheets and related
statements of income, stockholders' equity and cash flows, showing the
financial condition of the Parent and its Subsidiaries on a consolidated basis
as of the close of such fiscal year and the results of their respective
operations
41
during such year, the consolidated statements of the Parent to be audited for
the Parent and its Subsidiaries by their current independent auditors or other
independent public accountants of recognized national standing acceptable to
the Required Lenders and accompanied by an opinion of such accountants (which
shall not be qualified other than with respect to the Cases or a going concern
qualification) and to be certified by a Financial Officer of Parent to the
effect that such consolidated financial statements fairly present the financial
condition and results of operations of the Parent and its Subsidiaries on a
consolidated basis in accordance with GAAP;
(b) within forty-five (45) days after the end of each fiscal quarter
(including the fourth fiscal quarter) of each fiscal year, the Parent's and its
Subsidiaries consolidated balance sheets and related statements of income,
stockholders' equity and cash flows, showing the financial condition of the
Parent and its Subsidiaries on a consolidated basis as of the close of such
fiscal quarter and the results of their operations during such fiscal quarter
and the then elapsed portion of the fiscal year, each certified by a Financial
Officer of Parent as fairly presenting the financial condition and results of
operations of the Parent and its Subsidiaries on a consolidated basis in
accordance with GAAP, subject to normal year-end audit adjustments;
(c) concurrently with any delivery of financial statements under
paragraph (a) or (b) above as applicable, (i) a certificate of a Financial
Officer of the Parent certifying such statements and (A) certifying that no
Event of Default or event which upon notice or lapse of time or both would
constitute an Event of Default has occurred and is continuing, or, if such an
Event of Default or event has occurred and is continuing, specifying the nature
and extent thereof and any corrective action taken or proposed to be taken with
respect thereto and (B) setting forth computations in reasonable detail
satisfactory to the Administrative Agent demonstrating compliance with the
provisions of Sections 6.3, 6.4, 6.5 and 6.10 and (ii) a certificate of the
------------ --- --- ----
Parent's accountants accompanying the audited consolidated financial statements
delivered under paragraph (a) above certifying that, in the course of the
regular audit of the business of the Parent and its Subsidiaries, such
accountants have obtained no knowledge that an Event of Default has occurred
and is continuing, or if, in the opinion of such accountants, an Event of
Default has occurred and is continuing, specifying the nature thereof and all
relevant facts with respect thereto;
(d) as soon as available, but no more than thirty (30) days after the
end of each month (other than the last month of a fiscal quarter): (i) the
unaudited monthly balance sheets and related statements of income and cash
flows, showing the financial condition of the Parent and its Subsidiaries on a
consolidated basis as of the close of such fiscal month and the results of
their operations during such fiscal period and the then elapsed portion of the
fiscal year, each certified by a Financial Officer of Parent as fairly
presenting the financial condition and results of operations of the Parent and
its Subsidiaries on a consolidated basis in accordance with GAAP, subject to
normal year-end audit adjustments, together with a certificate of a Financial
Officer of the Parent setting forth computations in reasonable detail
satisfactory to the Administrative Agent demonstrating compliance with Section
-------
6.5; and (ii) a reconciliation of the results of the Borrowers' business
---
operations for the preceding month as compared to the corresponding period in
the forecast;
42
(e) as soon as possible, and in any event within thirty (30) days of
the Closing Date, a consolidated pro forma balance sheet of the Borrowers'
financial condition as of October 15, 2001;
(f) concurrently with any delivery of financial statements under
paragraph (b) above, updates, if any, of the forecast delivered to the
Administrative Agent pursuant to Section 4.1(i), satisfactory in form and
--------------
substance to the Administrative Agent;
(g) promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements and other materials filed by it
with the Securities and Exchange Commission, or any governmental authority
succeeding to any of or all the functions of said commission, or with any
national securities exchange, as the case may be;
(h) as soon as available and in any event (A) within thirty (30) days
after any Borrower or the Guarantors or any of their ERISA Affiliates knows or
has reason to know that any Termination Event described in clause (i) of the
definition of Termination Event with respect to any Single Employer Plan of any
of the Borrowers or the Guarantors or such ERISA Affiliate has occurred and (B)
within ten (10) days after any of the Borrowers or the Guarantors or any of
their ERISA Affiliates knows or has reason to know that any other Termination
Event with respect to any such Plan has occurred, a statement of a Financial
Officer of such Borrower or the Guarantors describing such Termination Event
and the action, if any, which such Borrower or the Guarantors or such ERISA
Affiliate proposes to take with respect thereto;
(i) promptly and in any event within ten (10) days after receipt
thereof by any of the Borrowers or the Guarantors or any of their ERISA
Affiliates from the PBGC copies of each notice received by such Borrower or the
Guarantors or any such ERISA Affiliate of the PBGC's intention to terminate any
Single Employer Plan of such Borrower or the Guarantors or such ERISA Affiliate
or to have a trustee appointed to administer any such Plan;
(j) if requested by the Administrative Agent, promptly and in any
event within thirty (30) days after the filing thereof with the Internal
Revenue Service, copies of each Schedule B (Actuarial Information) to the
annual report (Form 5500 Series) with respect to each Single Employer Plan of
any of the Borrowers, the Guarantors or any of their ERISA Affiliates;
(k) within ten (10) days after notice is given or required to be given
to the PBGC under Section 302(f)(4)(A) of ERISA of the failure of any of the
Borrowers or the Guarantors or any of their ERISA Affiliates to make timely
payments to a Plan, a copy of any such notice filed and a statement of a
Financial Officer of such Borrower or the Guarantors setting forth (A)
sufficient information necessary to determine the amount of the Lien under
Section 302(f)(3), (B) the reason for the failure to make the required payments
and (C) the action, if any, which the Borrowers or the Guarantors or any of
their ERISA Affiliates proposed to take with respect thereto;
(l) promptly and in any event within ten (10) days after receipt
thereof by any of the Borrowers or the Guarantors or any ERISA Affiliate from a
Multiemployer Plan sponsor, a copy of each notice received by such Borrower or
the Guarantors or any ERISA Affiliate concerning (A) the imposition of
Withdrawal Liability by a Multiemployer Plan, (B) the
43
determination that a Multiemployer Plan is, or is expected to be, in
reorganization within the meaning of Title IV of ERISA, (C) the termination of
a Multiemployer Plan within the meaning of Title IV of ERISA, or (D) the amount
of liability incurred, or which may be incurred, by the Borrowers or the
Guarantors or any ERISA Affiliate in connection with any event described in
clause (A), (B) or (C) above;
(m) promptly, from time to time, such other information (including,
without limitation, projections) regarding the operations, business affairs and
financial condition of any Borrower or the Guarantors, or compliance with the
terms of any material loan or financing agreements as the Administrative Agent,
at the request of any Lender, may reasonably request; and
(n) promptly after the same is available, copies of all pleadings,
motions, applications, judicial information, financial information and other
documents filed by or on behalf of any of the Borrowers with the Bankruptcy
Court in the Cases, or distributed by or on behalf of any of the Borrowers to
any official committee appointed in any of the Cases, providing copies of same
to counsel for the Administrative Agent; and
(o) as soon as possible and in no event later than January 31 of each
year during the term of this Agreement, an updated forecast of the Borrowers'
cash flows for the period from January 1 of such year through December 31 of
such year, on a monthly basis and setting forth the anticipated uses of the
Commitment and such forecast shall be satisfactory in form and substance to
Administrative Agent and Lenders.
SECTION 5.2 Existence. Preserve and maintain in full force and effect
---------
all governmental rights, privileges, qualifications, permits, licenses and
franchises necessary or desirable in the normal conduct of its businesses
except (i) (A) if in the reasonable business judgment of such Borrower or the
Guarantors it is in its best economic interest not to preserve and maintain
such rights, privileges, qualifications, permits, licenses and franchises, and
(B) such failure to preserve the same could not, in the aggregate, reasonably
be expected to have a material adverse effect on the operations, business,
properties, assets, prospects or condition (financial or otherwise) of the
Parent and its Subsidiaries, taken as a whole, and (ii) as otherwise permitted
in connection with a disposition of assets permitted by Section 6.11.
SECTION 5.3 Insurance. (a) Keep its insurable properties insured at
---------
all times, against such risks, including fire and other risks insured against
by extended coverage, as is customary with companies of the same or similar
size in the same or similar businesses; and maintain in full force and effect
public liability insurance against claims for personal injury or death or
property damage occurring upon, in, about or in connection with the use of any
properties owned, occupied or controlled by any Borrower or the Guarantors in
such amounts and with such deductibles as are customary with companies of the
same or similar size in the same or similar businesses and in the same
geographic area; and (b) maintain such other insurance or self insurance as may
be required by law.
SECTION 5.4 Obligations and Taxes. With respect to each Borrower, pay
---------------------
all its material obligations arising after the Filing Date promptly and in
accordance with their terms and pay and discharge promptly all material taxes,
assessments and governmental charges or levies
44
imposed upon it or upon its income or profits or in respect of its property
arising after the Filing Date, before the same shall become in default, as well
as all material lawful claims for labor, materials and supplies or otherwise
arising after the Filing Date which, if unpaid, would become a Lien or charge
upon such properties or any part thereof; provided, however, that none of the
-------- -------
Borrowers or the Guarantors shall be required to pay and discharge or to cause
to be paid and discharged any such tax, assessment, charge, levy or claim so
long as the validity or amount thereof shall be contested in good faith by
appropriate proceedings (if the Borrowers or the Guarantors, as the case shall
be, shall have set aside on their books adequate reserves therefor).
SECTION 5.5 Notice of Event of Default, etc. Promptly give to the
--------------------------------
Administrative Agent notice in writing of:
(a) any Event of Default or the occurrence of any event or
circumstance which with the passage of time or giving of notice or both would
constitute an Event of Default; and
(b) any litigation, proceedings or investigations which may exist at
any time between any Borrower or the Guarantors and any Governmental Authority
and could reasonably be expected to result in liability to any Borrower or
Guarantor in excess of $1,000,000.
SECTION 5.6 Access to Books and Records.
---------------------------
(a) Maintain or cause to be maintained at all times true and complete
books and records in accordance with GAAP of the financial operations of the
Borrowers, the Guarantors and their respective Subsidiaries; and provide the
Administrative Agent and its representatives access to all such books and
records during regular business hours, in order that the Administrative Agent
may examine and make abstracts from such books, accounts, records and other
papers for the purpose of verifying the accuracy of the various reports
delivered by the Parent to the Administrative Agent or the Lenders pursuant to
this Agreement or for otherwise ascertaining compliance with this Agreement.
The Parent will permit (and will cause its Subsidiaries to permit) any
representatives designated by the Administrative Agent to discuss its affairs,
finances and condition with its officers and independent accountants, all at
such reasonable times and as often as reasonably requested.
(b) The Parent will permit any representatives designated by the
Administrative Agent (including any consultants, accountants, lawyers and
appraisers retained by the Administrative Agent) to conduct evaluations and
appraisals of the Borrowers' computation of the Borrowing Base and the assets
included in the Borrowing Base, all at such reasonable times and as often as
reasonably requested. The Borrowers shall pay fees with respect to the
Administrative Agent's field examinations as provided in the fee letter dated
October 14, 2001 between the Parent and GECC and the Borrowers shall pay all
other reasonable fees (including reasonable and customary internally allocated
fees of employees of the Administrative Agent as to which invoices have been
furnished) and expenses of any such representatives retained by the
Administrative Agent as to which invoices have been furnished to conduct any
other evaluation or appraisal, including the reasonable fees and expenses
associated with collateral monitoring services performed by the Administrative
Agent. To the extent required by the Administrative Agent as a result of any
such evaluation, appraisal or monitoring,
45
the Borrowers also agree to modify or adjust the computation of the Borrowing
Base (which may include maintaining additional reserves, modifying the advance
rates or modifying the eligibility criteria for the components of the Borrowing
Base).
(c) In the event that historical accounting practices, systems or
reserves relating to the components of the Borrowing Base are modified in a
manner that is adverse to the Lenders in any material respect, the Borrowers
will agree to maintain such additional reserves (for purposes of computing the
Borrowing Base) in respect to the components of the Borrowing Base and make
such other adjustments to its parameters for including the components of the
Borrowing Base as the Administrative Agent shall reasonably require based upon
such modifications.
(d) The Parent will grant the Administrative Agent access to and the
right to inspect all reports, audits and other internal information of the
Parent relating to environmental matters upon reasonable notice, and obtain any
third party verification of matters relating to compliance with environmental
laws and regulations requested by the Administrative Agent at any time and from
time to time.
SECTION 5.7 Maintenance of Concentration Account. Within thirty (30)
------------------------------------
days after the demand therefor by the Administrative Agent following the
occurrence and during the continuance of any Event of Default, the Borrowers
shall establish and maintain lockbox and blocked account agreements with
respect to their lockbox accounts and concentration accounts in form and
substance acceptable to the Administrative Agent and in, in any event,
providing the Administrative Agent with full dominion and control over such
accounts.
SECTION 5.8 Borrowing Base Certificate. Furnish to the Administrative
--------------------------
Agent, no later than (i) three (3) Business Days after each of the weeks ended,
a completed Borrowing Base Certificate as of the last day of the immediately
preceding one week period, (ii) twelve (12) Business Days following the
immediately preceding fiscal month ended, a completed Borrowing Base
Certificate showing the Borrowing Base as of the close of business on the last
day of such fiscal month, and (iii) if requested by the Administrative Agent,
at any other time when the Administrative Agent reasonably believes that the
then existing Borrowing Base Certificate is materially inaccurate, as soon as
reasonably available but in no event later than five (5) Business Days after
such request, a completed Borrowing Base Certificate showing the Borrowing Base
as of the date so requested, in each case with supporting documentation and
additional reports with respect to the Borrowing Base as the Administrative
Agent may reasonably request. The PP&E Component of the Borrowing Base shall
be updated (i) from time to time upon receipt of periodic valuation updates
received from the Administrative Agent's asset valuation experts, (ii)
concurrent with the sale of any assets constituting part of the PP&E Component,
(iii) in the event such assets are idled for any reason other than routine
maintenance or repairs for a period in excess of ten (10) consecutive days, or
(iv) the value of such assets is otherwise impaired, in the Administrative
Agent's sole discretion.
SECTION 5.9 Budget. As soon as possible, and in any event not later
------
than January 31 of each year that any Commitment shall be in effect, furnish to
the Administrative Agent a budget detailing the Borrowers' anticipated cash
receipts and disbursements for their fiscal year ending December 31 of such
year and setting forth the anticipated uses of the Total Commitment
46
(the "Budget"), all on a monthly basis and satisfactory in form and substance
------
to the Administrative Agent. The Borrowers shall make their senior management
available to discuss the Budget with the Administrative Agent upon the
Administrative Agent's reasonable request.
SECTION 5.10 Security and Pledge Agreement. On or before ten (10)
-----------------------------
days after the Closing Date, the Borrowers and Guarantors shall have duly
executed and delivered to the Administrative Agent a Security and Pledge
Agreement in form and substance reasonably acceptable to the Administrative
Agent, the Borrowers and the Guarantors (the "Security and Pledge Agreement"),
-----------------------------
which shall provide the Administrative Agent, for the benefit of itself and the
Lenders, a perfected Lien with respect to substantially all of the assets of
the Borrowers and the Guarantors (other than assets subject to Permitted Liens
and assets set forth on Schedule 2.23(b)), together with appropriate opinions
----------------
and other documentation reasonably requested by the Administrative Agent in
form and substance reasonably satisfactory to the Administrative Agent to
provide the Administrative Agent with a first priority perfected security
interest on the collateral granted thereby and Lien thereon. Upon execution
thereof, the Security and Pledge Agreement shall become attached hereto as
Exhibit B.
---------
SECTION 6. NEGATIVE COVENANTS
From the date hereof and for so long as any Commitment shall be in
effect or any Letter of Credit shall remain outstanding (in a face amount in
excess of the amount of cash then held in the Letter of Credit Account, or in
excess of the face amount of back-to-back letters of credit delivered, in each
case pursuant to Section 2.3(b)) or any amount shall remain outstanding or
--------------
unpaid under this Agreement, unless the Required Lenders shall otherwise
consent in writing, the Borrowers and the Guarantors will not (and, in the case
of the Borrowers, will not apply to the Bankruptcy Court for authority to), and
will cause each of their respective Subsidiaries not to:
SECTION 6.1 Liens. Incur, create, assume or suffer to exist any Lien
-----
on any asset of the Borrowers or the Guarantors now owned or hereafter acquired
by any Borrower or the Guarantors other than Permitted Liens.
SECTION 6.2 Merger, etc. Consolidate or merge with or into another
-----------
Person; provided, however, that (a) a Subsidiary may consolidate or merge with
or into the Parent, with the Parent being the surviving Person, (b) a
Subsidiary (other than a Borrower or a Guarantor) may consolidate or merge with
or into another Subsidiary (other than a Borrower or a Guarantor), (c) a
Subsidiary (other than a Borrower or a Guarantor) may consolidate or merge with
or into a Borrower or Guarantor that is a Domestic Subsidiary, with the
Borrower or Guarantor Subsidiary being the surviving Person, (d) a Borrower or
Guarantor that is a Subsidiary may consolidate or merger with or into another
Borrower or Guarantor that is a Domestic Subsidiary and (e) a Borrower or a
Guarantor that is a Subsidiary may be converted into a limited liability
company that is a Domestic Subsidiary.
SECTION 6.3 Indebtedness. Contract, create, incur, assume or suffer
------------
to exist any Indebtedness, except for (i) Indebtedness under this Agreement;
(ii) Indebtedness incurred prior to the Filing Date (including existing
Capitalized Leases) including, without limitation, the secured Indebtedness
listed on Schedule 6.3); (iii) Indebtedness incurred subsequent to the Filing
------------
47
Date secured by purchase money Liens or Capitalized Leases) in an aggregate
amount not in excess of $5,000,000 to the extent permitted by Section 6.4; and
-----------
(iv) Indebtedness allowed under Sections 6.6 and 6.10.
---------------------
SECTION 6.4 Capital Expenditures. For any fiscal quarter after the
--------------------
Closing Date during which (i) average daily Excess Availability for any
trailing 30-day period after the Closing Date is less than $100,000,000 or (ii)
Excess Availability is at any time after the Closing Date less than
$80,000,000, and for each fiscal quarter thereafter, make Capital Expenditures
during each fiscal quarter listed below in an aggregate amount in excess of the
amount specified opposite such fiscal quarter below, provided that if the
--------
amount of Capital Expenditures that are made during any fiscal quarter is less
than the amount thereof that is permitted to be made during such fiscal
quarter, the unused portion thereof may be carried forward to and made during
the immediately following two fiscal quarters:
Fiscal Quarter Ending Maximum Capital Expenditures
--------------------- ----------------------------
12/31/2001 $30,000,000
03/31/2002 $50,000,000
06/30/2002 $50,000,000
09/30/2002 $50,000,000
12/31/2002 $50,000,000
03/31/2003 $60,000,000
06/30/2003 $60,000,000
09/30/2003 $60,000,000
SECTION 6.5 EBITDAPO. For any fiscal quarter after the Closing Date
--------
during which (i) average daily Excess Availability for any trailing 30-day
period after the Closing Date is less than $100,000,000 or (ii) Excess
Availability is at any time after the Closing Date less than $80,000,000, and
for each fiscal quarter thereafter, as of the end of each fiscal month of the
Borrowers, permit EBITDAPO for such month to be less than the amount specified
opposite such fiscal quarter below:
Fiscal Quarter Ending Minimum EBITDAPO
--------------------- ----------------
12/31/2001 $25,000,000
03/31/2002 $25,000,000
06/30/2002 $25,000,000
09/30/2002 $25,000,000
12/31/2002 $50,000,000
03/31/2003 $50,000,000
06/30/2003 $50,000,000
09/30/2003 $50,000,000
48
SECTION 6.6 Guarantees and Other Liabilities. Purchase or repurchase
--------------------------------
(or agree, contingently or otherwise, so to do) the Indebtedness of, or assume,
guarantee (directly or indirectly or by an instrument having the effect of
assuring another's payment or performance of any obligation or capability of so
doing, or otherwise), endorse or otherwise become liable, directly or
indirectly, for the obligations, stock or dividends of any Person, except (i)
for any guaranty of Indebtedness or other obligations (or otherwise becoming
liable for any of the obligations) of any of the Borrowers or any of the
Guarantors in the ordinary course of business and consistent with the past
business practices with trade vendors if such Indebtedness or the obligations
are permitted by this Agreement, and (ii) by endorsement of negotiable
instruments for deposit or collection in the ordinary course of business.
SECTION 6.7 Chapter 11 Claims. Incur, create, assume, suffer to exist
-----------------
or permit any other Superpriority Claim or Lien which is pari passu with or
senior to the claims or the Liens of the Administrative Agent and the Lenders
against the Parent hereunder, except for the Carve-Out and Liens permitted
pursuant to Section 6.1.
SECTION 6.8 Dividends; Capital Stock. Except for distributions or
------------------------
payments from one Borrower to another Borrower, from one Guarantor to another
Guarantor, from one non- Borrower Subsidiary to any Guarantor, or from any
Subsidiaries to any Borrower (whether directly or through one or more other
parent Subsidiaries), declare or pay, directly or indirectly, any dividends or
make any other distribution or payment, whether in cash, property, securities
or a combination thereof, with respect to (whether by reduction of capital or
otherwise) any shares of capital stock (or any options, warrants, rights or
other equity securities or agreements relating to any capital stock), or set
apart any sum for the aforesaid purposes on anything other than an arm's-length
basis.
SECTION 6.9 Transactions with Affiliates. Sell or transfer any
----------------------------
property or assets to, or otherwise engage in or permit to exist any other
material transactions with, any of its non- Borrower Affiliates other than in
the ordinary course of the Borrowers' businesses in good faith and at
commercially reasonable prices and on commercially reasonable terms and
conditions not less favorable to the Borrowers than could be obtained on an
arm's-length basis from a non- Affiliate.
SECTION 6.10 Investments, Loans and Advances. Purchase, hold or
-------------------------------
acquire any capital stock, evidences of Indebtedness or other securities of,
make or permit to exist any loans or advances to, or make or permit to exist
any investment in, any other Person other than purchases and sales of products
and services to and from joint ventures in the ordinary course of business and
consistent with past practices (all of the foregoing, "Investments"), except
-----------
for (i) Permitted Investments, (ii) existing Intercompany Indebtedness,
including, without limitation, Intercompany Indebtedness listed on Schedule
--------
6.10 (which describes all obligations for borrowed money which constitute
----
Intercompany Indebtedness as of the date hereof), (iii) additional Investments
in joint ventures, Hibbing Taconite Company and other minority-owned Persons
made after the Filing Date in an aggregate amount not to exceed $50,000,000 and
(iv) Intercompany Indebtedness and other Investments incurred in the ordinary
course of business consistent with past practice; provided that (x) any such
-------------
Intercompany Indebtedness with respect to which the obligor is Borrower or a
Guarantor shall be subordinated to the Obligations of the Borrowers and the
Guarantors hereunder and (y) the aggregate amount of all such Intercompany
49
Indebtedness arising from loans, advances and other Investments made after the
Filing Date by the Borrowers and the Guarantors to any Person who is not a
Borrower or a Guarantor shall not exceed $2,500,000 at any time outstanding.
SECTION 6.11 Disposition of Assets. Sell or otherwise dispose of any
---------------------
assets (including, without limitation, the capital stock of any Subsidiary of
the Borrowers) except for (i) sales of inventory, fixtures and equipment in the
ordinary course of business and (ii) sales or other dispositions of surplus
assets no longer used or required in the Borrowers' and their Subsidiaries'
business operations.
SECTION 6.12 Nature of Business. Modify or alter in any material
------------------
manner the nature and type of its business as conducted at or prior to the
Filing Date or the manner in which such business is conducted (except as
required by the Bankruptcy Code).
SECTION 6.13 Transactions among Borrowers. Except to the extent
----------------------------
existing on the date the Cases were filed and disclosed on Schedule 6.13,
-------------
permit, place or agree to permit or place any restrictions on the payment of
dividends or other distributions among the Borrowers or their Subsidiaries or
the making of advances or any other cash payments among the Borrowers or their
Subsidiaries.
SECTION 6.14 Right of Subrogation among Borrowers. Assert any right
------------------------------------
of subrogation against any other Borrower or Guarantor until all Borrowings and
all Letters of Credit are paid in full and the Total Commitment is terminated.
SECTION 7. EVENTS OF DEFAULT
SECTION 7.1 Events of Default. In the case of the happening of any of
-----------------
the following events and the continuance thereof beyond the applicable period
of grace (if any) set forth below (each, an "Event of Default"):
----------------
(a) any representation or warranty made by any Borrower or the
Guarantors in this Agreement or in any Loan Document or in connection with this
Agreement or the credit extensions hereunder or any statement or representation
made in any report, financial statement, certificate or other document
furnished by any Borrower or the Guarantors to the Lenders under or in
connection with this Agreement, shall prove to have been false or misleading in
any material respect when made or delivered; or
(b) default shall be made in the payment of any (i) fees or interest
on the Loans, principal of the Loans or other amounts payable by the Borrowers
or the Guarantors hereunder (including, without limitation, reimbursement
obligations or cash collateralization in respect of Letters of Credit), when
and as the same shall become due and payable, whether at the due date thereof
or at a date fixed for prepayment thereof or by acceleration thereof or
otherwise (including the Prepayment Date); or
(c) default shall be made by any Borrower, the Guarantors or any of
their respective Subsidiaries in the due observance or performance of any
covenants, conditions or agreements contained in Section 6 hereof; or
---------
50
(d) (i) default shall be made by any Borrower, the Guarantors or any
of their respective Subsidiaries in the due observance or performance of any
covenant, condition or agreement contained in Section 5 hereof and such default
---------
shall continue unremedied for more than seven (7) days or (ii) default shall be
made by any Borrower, the Guarantors or any of their respective Subsidiaries in
the due observance or performance of any covenant, condition or agreement
(other than the covenants, conditions or agreements contained in Section 5 or 6
--------------
hereof) to be observed or performed pursuant to the terms of this Agreement or
any of the other Loan Documents and such default shall continue unremedied for
more than twenty (20) days; or
(e) any of the Cases shall be dismissed or converted to a case under
Chapter 7 of the Bankruptcy Code or any Borrower shall file a motion or other
pleading seeking the dismissal of any of the Cases under Section 1112 of the
Bankruptcy Code or otherwise; a trustee under Chapter 7 or Chapter 11 of the
Bankruptcy Code, a responsible officer or an examiner with enlarged powers
relating to the operation of the business (powers beyond those set forth in
Section 1106(a)(3) and (4) of the Bankruptcy Code) under Section 1106(b) of the
Bankruptcy Code shall be appointed in any of the Cases and the order appointing
such trustee, responsible officer or examiner shall not be reversed or vacated
within thirty (30) days after the entry thereof; or an application shall be
filed by any Borrower for the approval of any other Superpriority Claim (other
than the Carve-Out or as otherwise contemplated by Section 2.23) in any of the
------------
Cases which is pari passu with or senior to the claims of the Administrative
Agent and the Lenders against any Borrower or the Guarantors hereunder, or
there shall arise or be granted any such pari passu or senior Superpriority
----------
Claim; or
(f) the Bankruptcy Court shall enter an order terminating the use of
cash collateral for the purposes described in Section 3.10; or
------------
(g) the Bankruptcy Court shall enter an order or orders granting
relief from the automatic stay applicable under Section 362 of the Bankruptcy
Code to the holder or holders of any security interest to permit foreclosure
(or the granting of a deed in lieu of foreclosure or the like) on any assets of
any of the Borrowers or the Guarantors which have a value in excess of
$1,000,000 in the aggregate; or
(h) a Change of Control shall occur; or
(i) the Borrowers shall fail to deliver a certified Borrowing Base
Certificate when due and such default shall continue unremedied for more than
three (3) Business Days; or
(j) any provision of any Loan Document shall, for any reason, cease to
be valid and binding on any of the Borrowers or the Guarantors, or any of the
Borrowers or the Guarantors shall so assert in any pleading filed in any court;
or
(k) an order of the Bankruptcy Court shall be entered reversing,
amending, supplementing or staying for a period in excess of ten (10) days or
vacating or otherwise modifying either of the Orders without the written
consent of the Administrative Agent; or
(l) any judgment or order as to a post-petition liability or debt for
the payment of money in excess of $1,000,000 shall be rendered against any of
the Borrowers or the Guarantors or any of its Subsidiaries and the enforcement
thereof shall not have been stayed (by
51
court-ordered stay or by consent of the party litigants), it being understood
that Federal Rule of Civil Procedure 62(a) provides for a ten-day stay of
enforcement of money judgments; or
(m) any non-monetary judgment or order with respect to a post-petition
event shall be rendered against any Borrower or the Guarantors or any of their
Subsidiaries which does or would reasonably be expected to (i) cause a material
adverse change in the financial condition, business, prospects, operations or
assets of the Parent and its Subsidiaries taken as a whole on a consolidated
basis, (ii) have a material adverse effect on the ability of any of the
Borrowers or the Guarantors to perform their respective obligations under any
Loan Document, or (iii) have a material adverse effect on the rights and
remedies of the Administrative Agent or any Lender under any Loan Document, and
there shall be any period of ten (10) consecutive days during which a stay of
enforcement of such judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect; or
(n) except as permitted by the Orders, the Borrowers or the Guarantors
or any of their respective Subsidiaries shall make any Prepetition Payment
other than Prepetition Payments authorized by the Bankruptcy Court in the First
Day Orders, including in respect of Critical Trade Vendors, accrued payroll and
related expenses and employee benefits as of the Filing Date, or adequate
protection payments to holders of the Permitted Liens; or
(o) any Termination Event described in clauses (iii) or (iv) of the
definition of such term shall have occurred and shall continue unremedied for
more than ten (10) days and the sum (determined as of the date of occurrence of
such Termination Event) of the Insufficiency of the Plan in respect of which
such Termination Event shall have occurred and be continuing and the
Insufficiency of any and all other Plans with respect to which such a
Termination Event (described in such clauses (iii) or (iv)) shall have occurred
and then exist is equal to or greater than $1,000,000; or
(p) (i) any Borrower, the Guarantors or any ERISA Affiliate thereof
shall have been notified by the sponsor of a Multiemployer Plan that it has
incurred Withdrawal Liability to such Multiemployer Plan, (ii) such Borrower,
the Guarantors or such ERISA Affiliate does not have reasonable grounds to
contest such Withdrawal Liability and is not in fact contesting such Withdrawal
Liability in a timely and appropriate manner, and (iii) the amount of such
Withdrawal Liability specified in such notice, when aggregated with all other
amounts required to be paid to Multiemployer Plans in connection with
Withdrawal Liabilities (determined as of the date of such notification),
exceeds $500,000 allocable to post-petition obligations or requires payments
exceeding $100,000 per annum in excess of the annual payments made with respect
to such Multiemployer Plans by such Borrower, the Guarantors or such ERISA
Affiliate for the plan year immediately preceding the plan year in which such
notification is received; or
(q) any Borrower, the Guarantors or any ERISA Affiliate thereof shall
have been notified by the sponsor of a Multiemployer Plan that such
Multiemployer Plan is in reorganization or is being terminated, within the
meaning of Title IV of ERISA, if as a result of such reorganization or
termination the aggregate annual contributions of such Borrower, the Guarantors
and their ERISA Affiliates to all Multiemployer Plans that are then in
reorganization or being terminated have been or will be increased over the
amounts contributed to such
52
Multiemployer Plans for the plan years that include the date hereof by an
amount exceeding $500,000; or
(r) any Borrower, the Guarantors or any ERISA Affiliate shall have
committed a failure described in Section 302(f)(1) of ERISA (other than the
failure to make any contribution accrued and unpaid as of the Filing Date) and
the amount determined under Section 302(f)(3) of ERISA is equal to or greater
than $1,000,000; or
(s) it shall be determined (whether by the Bankruptcy Court or by any
other judicial or administrative forum) that any Borrower or the Guarantors is
liable for the payment of claims arising out of any failure to comply (or to
have complied) with applicable environmental laws or regulations the payment of
which will have a material adverse effect on the financial condition, business,
properties, operations, prospects or assets of the Parent and its Subsidiaries,
taken as a whole, and the enforcement thereof shall not have been stayed; or
(t) the Guarantors, other than a Guarantor that becomes a Borrower
hereunder by becoming a party to this Agreement as a Borrower, shall (i)
voluntarily commence any proceeding or file any petition seeking relief under
Title 11 of the United States Code or any other Federal, state or foreign
bankruptcy, insolvency, receivership, liquidation or similar law, (ii) consent
to the institution of, or fail to contravene in a timely and appropriate
manner, any such proceeding or the filing of any such petition, (iii) apply for
or consent to the appointment of a receiver, trustee, custodian, sequestrator
or similar official of itself or of a substantial part of its assets, (iv) file
an answer admitting the material allegations of a petition filed against itself
in any such proceeding, (v) make a general assignment for the benefit of
creditors, (vi) become unable, admit in writing its inability or fail generally
to pay its debts as they become due or (vii) take any corporate or other action
for the purpose of effecting any of the foregoing;
(u) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed in a court of competent jurisdiction seeking (i) relief
in respect of the Guarantors, or of a substantial part of the assets of the
Guarantors, other than any Guarantor that becomes a Borrower hereunder by
becoming a party to this Agreement as a Borrower, under Title 11 of the United
States Code or any other Federal, state or foreign bankruptcy, insolvency,
receivership, liquidation or similar law, (ii) the appointment of a receiver,
trustee, custodian, sequestrator or similar official of the Guarantors or of a
substantial part of the assets of the Guarantors other than any Guarantor that
becomes a Borrower hereunder by becoming a party to this Agreement as a
Borrower, or (iii) the winding-up or liquidation of the Guarantors; and such
proceeding or petition shall continue undismissed for sixty (60) consecutive
days or an order or decree approving or ordering any of the foregoing shall
continue unstayed and in effect for sixty (60) consecutive days; or
(v) the Borrowers shall at any time fail to maintain the "Inventory
Threshold" (as defined in paragraph 20 of the Interim Order, or in any
successor section in the Final Order, as the case may be) at any time that
Excess Availability is less than $200,000,000;
then, and in every such event and at any time thereafter during the continuance
of such event, and without further order of or application to the Bankruptcy
Court, the Administrative Agent may, and at the request of the Required
Lenders, shall, take one or more of the following actions
53
without further order of or application to the Court, provided that with
respect to item (iv) below and the enforcement of liens or other remedies with
respect to collateral referred to in item (v) below, the Administrative Agent
shall provide the Borrowers (with a copy to counsel for the Official Creditors'
Committee appointed in any of the Cases and to the United States Trustee for
the Bankruptcy Court's District) with five (5) business days' prior written
notice (the "Default Notice"): (i) terminate forthwith the Total Commitment;
--------------
(ii) declare the Loans then outstanding to be forthwith due and payable,
whereupon the principal of the Loans together with accrued interest thereon and
any unpaid accrued Fees and all other liabilities of the Borrowers accrued
hereunder and under any other Loan Document, shall become forthwith due and
payable, without presentment, demand, protest or any other notice of any kind,
all of which are hereby expressly waived by the Parent, anything contained
herein or in any other Loan Document to the contrary notwithstanding; (iii)
require the Parent upon demand to forthwith deposit in the Letter of Credit
Account cash in an amount which, together with any amounts then held in the
Letter of Credit Account, is equal to the sum of 105% of the then Letter of
Credit Outstandings (and to the extent the Borrowers shall fail to furnish such
funds as demanded by the Administrative Agent, the Administrative Agent shall
be authorized to debit the accounts of the Borrowers under the control of the
Administrative Agent in such amount five (5) Business Days after the giving of
the notice referred to above (the "Default Notice")); (iv) set-off amounts in
----------------
the Letter of Credit Account or any other accounts under the control of the
Administrative Agent and apply such amounts to the obligations of the Parent
hereunder and in the other Loan Documents; and/or (v) exercise any and all
remedies under the Loan Documents and under applicable law available to the
Administrative Agent and the Lenders.
SECTION 8. THE ADMINISTRATIVE AGENT
SECTION 8.1 Administration by Administrative Agent. The general
--------------------------------------
administration of the Loan Documents shall be performed by the Administrative
Agent. Each Lender hereby irrevocably authorizes the Administrative Agent, at
its discretion, to take or refrain from taking such actions as agent on its
behalf and to exercise or refrain from exercising such powers under the Loan
Documents as are delegated by the terms hereof or thereof, as appropriate,
together with all powers reasonably incidental thereto (including the release
of Collateral in connection with any transaction that is expressly permitted by
the Loan Documents). The Administrative Agent shall have no duties or
responsibilities except as set forth in this Agreement and the remaining Loan
Documents.
SECTION 8.2 Advances and Payments
---------------------
(a) On the date of each Loan, the Administrative Agent shall be
authorized (but not obligated) to advance, for the account of each of the
Lenders, the amount of the Loan to be made by it in accordance with its
Commitment hereunder. Should the Administrative Agent do so, each of the
Lenders agrees forthwith to reimburse the Administrative Agent in immediately
available funds for the amount so advanced on its behalf by the Administrative
Agent, together with interest at the Federal Funds Rate if not so reimbursed on
the date due from and including such date but not including the date of
reimbursement.
(b) Any amounts received by the Administrative Agent in connection
with this Agreement (other than amounts to which the Administrative Agent is
entitled pursuant to
54
Sections 2.19, 8.6, 10.5 and 10.6), the application of which is not otherwise
------------- --- ---- ----
provided for in this Agreement, shall be applied, first, in accordance with
each Lender's Commitment Percentage to pay accrued but unpaid Commitment Fees
or Letter of Credit Fees, and second, in accordance with each Lender's
Commitment Percentage to pay accrued but unpaid interest and the principal
balance outstanding and all unreimbursed Letter of Credit drawings. All
amounts to be paid to a Lender by the Administrative Agent shall be credited to
that Lender, after collection by the Administrative Agent, in immediately
available funds either by wire transfer or deposit in that Lender's
correspondent account with the Administrative Agent, as such Lender and the
Administrative Agent shall from time to time agree.
SECTION 8.3 Sharing of Setoffs. Each Lender agrees that if it shall,
------------------
through the exercise of a right of banker's lien, setoff or counterclaim
against the Borrowers, including, but not limited to, a secured claim or other
security or interest arising from, or in lieu of, such secured claim and
received by such Lender under any applicable bankruptcy, insolvency or other
similar law, or otherwise, obtain payment in respect of its Loans as a result
of which the unpaid portion of its Loans is proportionately less than the
unpaid portion of the Loans of any other Lender (a) it shall promptly purchase
at par (and shall be deemed to have thereupon purchased) from such other Lender
a participation in the Loans of such other Lender, so that the aggregate unpaid
principal amount of each Lender's Loans and its participation in Loans of the
other Lenders shall be in the same proportion to the aggregate unpaid principal
amount of all Loans then outstanding as the principal amount of its Loans prior
to the obtaining of such payment was to the principal amount of all Loans
outstanding prior to the obtaining of such payment and (b) such other
adjustments shall be made from time to time as shall be equitable to ensure
that the Lenders share such payment pro-rata, provided that if any such
--------
non-pro-rata payment is thereafter recovered or otherwise set aside such
purchase of participations shall be rescinded (without interest). Each of the
Borrowers expressly consents to the foregoing arrangements and agrees that any
Lender holding (or deemed to be holding) a participation in a Loan may exercise
any and all rights of banker's lien, setoff (in each case, subject to the same
notice requirements as pertain to clause (iv) of the remedial provisions of
Section 7.1) or counterclaim with respect to any and all moneys owing by the
-----------
Borrowers to such Lender as fully as if such Lender held a Note and was the
original obligee thereon, in the amount of such participation.
SECTION 8.4 Agreement of Required Lenders. Upon any occasion
-----------------------------
requiring or permitting an approval, consent, waiver, election or other action
on the part of the Required Lenders, action shall be taken by the
Administrative Agent for and on behalf or for the benefit of all Lenders upon
the direction of the Required Lenders, and any such action shall be binding on
all Lenders. No amendment, modification, consent, or waiver shall be effective
except in accordance with the provisions of Section 10.10.
-------------
SECTION 8.5 Liability of Administrative Agent.
---------------------------------
(a) The Administrative Agent, when acting on behalf of the Lenders,
may execute any of its respective duties under this Agreement by or through any
of its respective officers, agents, and employees, and neither the
Administrative Agent nor its directors, officers, agents, employees or
Affiliates shall be liable to the Lenders or any of them for any action taken
or omitted to be taken in good faith, or be responsible to the Lenders or to
any of them for the consequences of any oversight or error of judgment, or for
any loss, unless the same shall happen
55
through its gross negligence or willful misconduct. The Administrative Agent
and its respective directors, officers, agents, employees and Affiliates shall
in no event be liable to the Lenders or to any of them for any action taken or
omitted to be taken by them pursuant to instructions received by them from the
Required Lenders or in reliance upon the advice of counsel selected by it.
Without limiting the foregoing, neither the Administrative Agent, nor any of
its respective directors, officers, employees, agents or Affiliates shall be
responsible to any Lender for the due execution, validity, genuineness,
effectiveness, sufficiency, or enforceability of, or for any statement,
warranty, or representation in, this Agreement, any Loan Document or any
related agreement, document or order, or shall be required to ascertain or to
make any inquiry concerning the performance or observance by the Borrowers or
the Guarantors of any of the terms, conditions, covenants, or agreements of
this Agreement or any of the Loan Documents.
(b) Neither the Administrative Agent nor any of its respective
directors, officers, employees, agents or Affiliates shall have any
responsibility to the Borrowers on account of the failure or delay in
performance or breach by any Lender or by the Borrowers or the Guarantors of
any of their obligations under this Agreement or any of the Loan Documents or
in connection herewith or therewith.
(c) The Administrative Agent, in its capacity as Administrative Agent
hereunder, shall be entitled to rely on any communication, instrument, or
document reasonably believed by such person to be genuine or correct and to
have been signed or sent by a person or persons believed by such person to be
the proper person or persons, and such person shall be entitled to rely on
advice of legal counsel, independent public accountants, and other professional
advisers and experts selected by such person.
SECTION 8.6 Reimbursement and Indemnification. Each Lender agrees (i)
---------------------------------
to reimburse (x) the Administrative Agent for such Lender's Commitment
Percentage of any expenses and fees incurred for the benefit of the Lenders
under this Agreement and any of the Loan Documents, including, without
limitation, counsel fees and compensation of agents and employees paid for
services rendered on behalf of the Lenders, and any other expense incurred in
connection with the operations or enforcement thereof not reimbursed by the
Borrowers or the Guarantors and (y) the Administrative Agent for such Lender's
Commitment Percentage of any expenses of the Administrative Agent incurred for
the benefit of the Lenders that the Borrowers and/or the Guarantors have agreed
to reimburse pursuant to Section 10.5 and has failed to so reimburse and (ii)
------------
to indemnify and hold harmless the Administrative Agent and any of its
directors, officers, employees, agents or Affiliates, on demand, in the amount
of its proportionate share, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses, or disbursements of any kind or nature whatsoever which may be
imposed on, incurred by, or asserted against it or any of them in any way
relating to or arising out of this Agreement or any of the Loan Documents or
any action taken or omitted by it or any of them under this Agreement or any of
the Loan Documents to the extent not reimbursed by the Borrowers or the
Guarantors (except such as shall result from their respective gross negligence
or willful misconduct).
SECTION 8.7 Rights of Administrative Agent. It is understood and
------------------------------
agreed that GECC shall have the same rights and powers hereunder (including the
right to give such instructions) as the other Lenders and may exercise such
rights and powers, as well as its rights and powers
56
under other agreements and instruments to which it is or may be party, and
engage in other transactions with any Borrower or the Guarantors, as though it
were not the Administrative Agent of the Lenders under this Agreement.
SECTION 8.8 Independent Lenders. Each Lender acknowledges that it has
-------------------
decided to enter into this Agreement and to make the Loans hereunder based on
its own analysis of the transactions contemplated hereby and of the
creditworthiness of the Parent and agrees that the Administrative Agent shall
bear no responsibility therefor.
SECTION 8.9 Notice of Transfer. The Administrative Agent may deem and
------------------
treat a Lender party to this Agreement as the owner of such Lender's portion of
the Loans for all purposes, unless and until a written notice of the assignment
or transfer thereof executed by such Lender shall have been received by the
Administrative Agent.
SECTION 8.10 Successor Administrative Agent. The Administrative Agent
------------------------------
may resign at any time by giving written notice thereof to the Lenders and the
Borrowers. Upon any such resignation, the Required Lenders shall have the
right to appoint a successor Administrative Agent, which shall be reasonably
satisfactory to the Borrowers. If no successor Administrative Agent shall have
been so appointed by the Required Lenders and shall have accepted such
appointment, within thirty (30) days after the retiring Administrative Agent's
giving of notice of resignation, the retiring Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative 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 a least
$100,000,000, which shall be reasonably satisfactory to the Borrowers. Upon
the acceptance of any appointment as Administrative Agent hereunder by a
successor Administrative Agent, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations under
this Agreement. After any retiring Administrative Agent's resignation
hereunder as Administrative Agent, the provisions of this Section 8 shall inure
to its benefit as to any actions taken or omitted to be taken by it while it
was Administrative Agent under this Agreement.
SECTION 9. GUARANTY
SECTION 9.1 Guaranty
--------
(a) The Guarantors unconditionally and irrevocably guaranty the due
and punctual payment and performance by the Borrowers of the Obligations. The
Guarantors further agree that the Obligations may be extended or renewed, in
whole or in part, without notice to or further assent from them, and they will
remain bound upon this guaranty notwithstanding any extension or renewal of any
of the Obligations.
(b) The Guarantors waive presentation to, demand for payment from and
protest to the Borrowers or the Guarantors, and also waives notice of protest
for nonpayment. The Obligations of the Guarantors hereunder shall not be
affected by (i) the failure of the Administrative Agent or a Lender to assert
any claim or demand or to enforce any right or remedy against the Borrowers or
any other Guarantors of the Obligations under the provisions of
57
this Agreement or any other Loan Document or otherwise; (ii) any extension or
renewal of any provision hereof or thereof; (iii) any rescission, waiver,
compromise, acceleration, amendment or modification of any of the terms or
provisions of any of the Loan Documents; (iv) the release, exchange, waiver or
foreclosure of any security held by the Administrative Agent for the
Obligations or any of them; (v) the failure of the Administrative Agent or a
Lender to exercise any right or remedy against any other Guarantors of the
Obligations; or (vi) the release or substitution of any other Guarantors of the
Obligations.
(c) The Guarantors further agree that this guaranty constitutes a
guaranty of performance and of payment when due and not just of collection, and
waive any right to require that any resort be had by the Administrative Agent
or a Lender to any security held for payment of the Obligations or to any
balance of any deposit, account or credit on the books of the Administrative
Agent or a Lender in favor of any Borrower or the Guarantors, or to any other
Person.
(d) The Guarantors hereby waive any defense that they might have based
on a failure to remain informed of the financial condition of the Borrowers and
of the Guarantors and any circumstances affecting the ability of the Borrowers
to perform under this Agreement.
(e) The Guarantors' guaranty shall not be affected by the genuineness,
validity, regularity or enforceability of the Obligations or any other
instrument evidencing any Obligations, or by the existence, validity,
enforceability, perfection, or extent of any collateral therefor or by any
other circumstance relating to the Obligations which might otherwise constitute
a defense to this guaranty. Neither of the Administrative Agent, nor any of
the Lenders makes any representation or warranty in respect to any such
circumstances or shall have any duty or responsibility whatsoever to the
Guarantors in respect of the management and maintenance of the Obligations.
(f) Subject to the provisions of Section 7.1, upon the Obligations
-----------
becoming due and payable (by acceleration or otherwise), the Lenders shall be
entitled to immediate payment of such Obligations by the Guarantors upon
written demand by the Administrative Agent, without further application to or
order of the Bankruptcy Court.
SECTION 9.2 No Impairment of Guaranty. The obligations of the
-------------------------
Guarantors hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason, including, without limitation, any
claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense or set-off, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality or unenforceability of the
Obligations. Without limiting the generality of the foregoing, the obligations
of the Guarantors hereunder shall not be discharged or impaired or otherwise
affected by the failure of the Administrative Agent or a Lender to assert any
claim or demand or to enforce any remedy under this Agreement or any other
agreement, by any waiver or modification of any provision thereof, by any
default, failure or delay, willful or otherwise, in the performance of the
Obligations, or by any other act or thing or omission or delay to do any other
act or thing which may or might in any manner or to any extent vary the risk of
the Guarantors or would otherwise operate as a discharge of the Guarantors as a
matter of law, unless and until the Obligations are paid in full.
58
SECTION 9.3 Subrogation. Upon payment by the Guarantors of any sums
-----------
to the Administrative Agent or a Lender hereunder, all rights of the Guarantors
against any Borrower arising as a result thereof by way of right of subrogation
or otherwise, shall in all respects be subordinate and junior in right of
payment to the prior final and indefeasible payment in full of all the
Obligations. If any amount shall be paid to the Guarantors for the account of
any Borrower, such amount shall be held in trust for the benefit of the
Administrative Agent and the Lenders and shall forthwith be paid to the
Administrative Agent and the Lenders to be credited and applied to the
Obligations, whether matured or unmatured.
SECTION 9.4 Limitation on Guaranteed Obligations. Notwithstanding any
------------------------------------
provision herein contained to the contrary, each Guarantor's liability
hereunder shall be limited to an amount not to exceed as of any date of
determination the greater of:
(a) the net amount of all Loans and other extensions of credit
(including Letters of Credit) advanced under this Agreement and directly or
indirectly re-loaned or otherwise transferred to, or incurred for the benefit
of, such Guarantor, plus interest thereon at the applicable rate specified in
this Agreement; or
(b) the amount which could be claimed by the Administrative Agent and
the Lenders from such Guarantor under this Section 9 without rendering such
---------
claim voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy
Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform
Fraudulent Conveyance Act or similar statute or common law after taking into
account, among other things, such Guarantor's right of contribution and
indemnification from each other Guarantor under Section 9.5.
-----------
SECTION 9.5 Contribution with Respect to Guaranteed Obligations.
---------------------------------------------------
(a) To the extent that any Guarantor shall make a payment under this
Section 9 of all or any of the Obligations (a "Guarantor Payment") which,
-----------------
taking into account all other Guarantor Payments then previously or
concurrently made by the other Guarantors, exceeds the amount which such
Guarantor would otherwise have paid if each Guarantor had paid the aggregate
Obligations satisfied by such Guarantor Payment in the same proportion that
such Guarantor's "Allocable Amount" (as defined below) (in effect immediately
prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of all
of Guarantors in effect immediately prior to the making of such Guarantor
Payment, then, following indefeasible payment in full in cash of the
----
Obligations and termination of the Commitments, such Guarantor shall be
entitled to receive contribution and indemnification payments from, and be
reimbursed by, each of the other Guarantors for the amount of such excess, pro
---
rata based upon their respective Allocable Amounts in effect immediately prior
----
to such Guarantor Payment.
(b) As of any date of determination, the "Allocable Amount" of any
----------------
Guarantor shall be equal to the maximum amount of the claim which could then be
recovered from such Guarantor under this Section 9 without rendering such claim
---------
voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or
under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent
Conveyance Act or similar statute or common law.
59
(c) This Section 9.5 is intended only to define the relative rights of
-----------
Guarantors and nothing set forth in this Section 9.5 is intended to or shall
-----------
impair the obligations of Guarantors, jointly and severally, to pay any amounts
as and when the same shall become due and payable in accordance with the terms
of this Guaranty.
(d) The rights of the parties under this Section 9.5 shall be
-----------
exercisable upon the full and indefeasible payment of the Obligations and the
termination of this Agreement and the other Loan Documents.
(e) The parties hereto acknowledge that the rights of contribution and
indemnification hereunder shall constitute assets of any Guarantor to which
such contribution and indemnification is owing.
SECTION 10. MISCELLANEOUS
SECTION 10.1 Notices. Notices and other communications provided for
-------
herein shall be in writing (including telegraphic, telex, facsimile or cable
communication) and shall be mailed, telegraphed, telexed, transmitted, cabled
or delivered to any Borrower or the Guarantors at c/o Bethlehem Steel
Corporation, 0000 Xxxxxx Xxxxxx, Xxxxxxxxx, XX 00000 Attention: Chief
Financial Officer, and to a Lender or the Administrative Agent to it at its
address set forth on Annex A, or such other address as such party may from time
to time designate by giving written notice to the other parties hereunder. All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the
earlier of actual receipt or the third Business Day after the date when sent by
registered or certified mail, postage prepaid, return receipt requested, if by
mail; or when delivered to the telegraph company, charges prepaid, if by
telegram; or when receipt is acknowledged, if by any telegraphic communications
or facsimile equipment of the sender; in each case addressed to such party as
provided in this Section 10.1 or in accordance with the latest unrevoked
------------
written direction from such party; provided, however, that in the case of
-------- -------
notices to the Administrative Agent notices pursuant to the preceding sentence
with respect to change of address and pursuant to Section 2 shall be effective
only when received by the Administrative Agent.
SECTION 10.2 Survival of Agreement, Representations and Warranties,
------------------------------------------------------
etc. All warranties, representations and covenants made by any Borrower or the
---
Guarantors herein or in any certificate or other instrument delivered by it or
on its behalf in connection with this Agreement shall be considered to have
been relied upon by the Lenders and shall survive the making of the Loans
herein contemplated regardless of any investigation made by any Lender or on
its behalf and shall continue in full force and effect so long as any amount
due or to become due hereunder is outstanding and unpaid and so long as the
Commitments have not been terminated. All statements in any such certificate
or other instrument shall constitute representations and warranties by the
Parent hereunder with respect to the Borrowers.
SECTION 10.3 Successors and Assigns.
----------------------
(a) This Agreement shall be binding upon and inure to the benefit of
the Borrowers, the Guarantors, the Administrative Agent and the Lenders and
their respective
60
successors and assigns. Neither the Borrowers nor the Guarantors may assign or
transfer any of their rights or obligations hereunder without the prior written
consent of all of the Lenders. Each Lender may sell participations to any
Person in all or part of any Loan, or all or part of its Commitment, in which
event, without limiting the foregoing, the provisions of Section 2.15 shall
------------
inure to the benefit of each purchaser of a participation (provided that such
participant shall look solely to the seller of such participation for such
benefits and the Borrowers' and the Guarantors' liability, if any, under
Sections 2.15 and 2.18 shall not be increased as a result of the sale of any
------------- ----
such participation) and the pro rata treatment of payments, as described in
Section 2.17, shall be determined as if such Lender had not sold such
------------
participation. In the event any Lender shall sell any participation, such
Lender shall retain the sole right and responsibility to enforce the
obligations of each of the Borrowers relating to the Loans, including, without
limitation, the right to approve any amendment, modification or waiver of any
provision of this Agreement (provided that such Lender may grant its
--------
participant the right to consent to such Lender's execution of amendments,
modifications or waivers which (i) reduce any Fees payable hereunder to the
Lenders, (ii) reduce the amount of any scheduled principal payment on any Loan
or reduce the principal amount of any Loan or the rate of interest payable
hereunder or (iii) extend the maturity of the Borrowers' obligations
hereunder). The sale of any such participation shall not alter the rights and
obligations of the Lender selling such participation hereunder with respect to
the Borrowers.
(b) Each Lender may assign to one or more Lenders or Eligible
Assignees all or a portion of its interests, rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment
and the same portion of the related Loans at the time owing to it), provided,
--------
however, that (i) other than in the case of an assignment to any Lender
-------
Affiliate or to a Person at least 50% owned by the assignor Lender, or by a
common parent of both, or to another Lender, the Administrative Agent and the
Fronting Bank must give their respective prior written consent to such
assignment, which consent will not be unreasonably withheld, (ii) the aggregate
amount of the Commitment and/or Loans of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Acceptance with
respect to such assignment is delivered to the Administrative Agent) shall,
unless otherwise agreed to in writing by the Borrowers and the Administrative
Agent, in no event be less than $1,000,000 or the remaining portion of such
Lender's Commitment and/or Loans, if less and (iii) the parties to each such
assignment shall execute and deliver to the Administrative Agent, for its
acceptance and recording in the Register (as defined below), an Assignment and
Acceptance with blanks appropriately completed, together with a processing and
recordation fee of $3,500 (for which the Borrowers shall have no liability).
Upon such execution, delivery, acceptance and recording, from and after the
effective date specified in each Assignment and Acceptance, which effective
date shall be within ten (10) Business Days after the execution thereof (unless
otherwise agreed to in writing by the Administrative Agent), (A) the assignee
thereunder shall be a party hereto and, to the extent provided in such
Assignment and Acceptance, have the rights and obligations of a Lender
hereunder and (B) the Lender thereunder shall, to the extent provided in such
Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all or the
remaining portion of an assigning Lender's rights and obligations under this
Agreement, such Lender shall cease to be a party hereto).
61
(c) 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 the
representation and warranty that it is the legal and beneficial owner of the
interest being assigned thereby free and clear of any adverse claim, such
Lender assignor 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 any of the other Loan Documents
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of this Agreement or any of the other Loan Documents; (ii) such Lender
assignor makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrowers or the Guarantors or the
performance or observance by the Borrowers or the Guarantors of any of its
obligations under this Agreement or any of the other Loan Documents or any
other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement and the other Loan
Documents, together with copies of the financial statements referred to in
Section 3.4 and such other documents and information as it has deemed
-----------
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Administrative Agent, such Lender assignor or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement; (v) such assignee appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under this Agreement as are delegated to the Administrative Agent
by the terms thereto, together with such powers as are reasonably incidental
hereof; and (vi) such assignee agrees that it will perform in accordance with
their terms all obligations that by the terms of this Agreement are required to
be performed by it as a Lender.
(d) The Administrative Agent shall maintain at its office a copy of
each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders and the Commitments of,
and principal amount of the Loans owing to, each Lender from time to time (the
"Register"). The entries in the Register shall be conclusive, in the absence
--------
of manifest error, and the Borrowers, the Guarantors, the Administrative Agent
and the Lenders shall treat each Person the name of which is recorded in the
Register as a Lender hereunder for all purposes of this Agreement. The
Register shall be available for inspection by the Borrowers or any Lender at
any reasonable time and from time to time upon reasonable prior notice.
(e) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and the assignee thereunder together with the fee payable in
respect thereto, the Administrative Agent shall, if such Assignment and
Acceptance has been completed with blanks appropriately filled and consented to
by the Administrative Agent and the Fronting Bank (to the extent such consent
is required hereunder), (i) accept such Assignment and Acceptance, (ii) record
the information contained therein in the Register and (iii) give prompt written
notice thereof to the Borrowers (together with a copy thereof). No assignment
shall be effective for purposes of this Agreement unless it has been recorded
in the Register as provided in this paragraph.
62
(f) Any Lender may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section 10.3, disclose
------------
to the assignee or participant or proposed assignee or participant, any
information relating to the Borrowers or the Guarantors furnished to such
Lender by or on behalf of any of the Borrowers or the Guarantors; provided that
prior to any such disclosure, each such assignee or participant or proposed
assignee or participant shall agree in writing to be bound by the provisions of
Section 10.4.
------------
(g) Each of the Borrowers hereby agrees to actively assist and
cooperate with the Administrative Agent in the Administrative Agent's efforts
to sell participations herein (as described in Section 10.3(a)) and assign to
---------------
one or more Lenders or Eligible Assignees a portion of its interests, rights
and obligations under this Agreement (as set forth in Section 10.3(b)).
---------------
SECTION 10.4 Confidentiality. Each Lender agrees to keep any
---------------
information delivered or made available by any of the Borrowers or the
Guarantors to it confidential from anyone other than persons employed or
retained by such Lender who are or are expected to become engaged in
evaluating, approving, structuring or administering the Loans; provided that
--------
nothing herein shall prevent any Lender from disclosing such information (i) to
any of its Affiliates or to any other Lender, provided such Affiliate agrees to
--------
keep such information confidential to the same extent required by the Lenders
hereunder, (ii) upon the order of any court or administrative agency, (iii)
upon the request or demand of any regulatory agency or authority, (iv) which
has been publicly disclosed other than as a result of a disclosure by the
Administrative Agent or any Lender which is not permitted by this Agreement,
(v) in connection with any litigation to which the Administrative Agent, any
Lender, or their respective Affiliates may be a party to the extent reasonably
required, (vi) to the extent reasonably required in connection with the
exercise of any remedy hereunder, (vii) to such Lender's legal counsel and
independent auditors, and (viii) to any actual or proposed participant or
assignee of all or part of its rights hereunder subject to the proviso in
Section 10.3(f). Each Lender shall notify the Borrowers or the Guarantors, as
---------------
the case may be, of any required disclosure under clause (ii) of this Section;
provided, however, that the failure of any such Lender to provide such
-------- -------
notification shall not limit, alter or otherwise affect any of the Borrowers'
or the Guarantors' obligations under this Agreement.
SECTION 10.5 Expenses. Whether or not the transactions hereby
--------
contemplated shall be consummated, the Parent agree to pay all expenses
incurred by the Administrative Agent and GECMG (including, without limitation,
the reasonable fees and disbursements of Sidley Xxxxxx Xxxxx & Xxxx, counsel
for the Administrative Agent, any other counsel that the Administrative Agent
shall retain and any internal or third-party appraisers, consultants and
auditors advising the Administrative Agent and GECMG and their counsel) in
connection with the preparation, execution, delivery and administration of this
Agreement and the other Loan Documents, the making of the Loans and the
issuance of the Letters of Credit, the perfection of the Liens contemplated
hereby, the syndication of the transactions contemplated hereby, the costs,
fees and expenses of the Administrative Agent and GECMG in connection with
monthly and other periodic field audits, monitoring of assets (including
reasonable and customary internal collateral monitoring fees) and publicity
expenses, and, following the occurrence of an Event of Default, all expenses
incurred by the Lenders and the Administrative Agent in the enforcement or
protection of the rights of any one or more of the Lenders or the
Administrative Agent in connection with this Agreement or the other Loan
Documents, including but not limited to the fees and disbursements of any
counsel for the Lenders or the Administrative Agent. Such
63
payments by the Parent shall be made upon delivery of a statement setting forth
such costs and expenses. Whether or not the transactions hereby contemplated
shall be consummated, the Parent agree to reimburse the Administrative Agent
and GECMG for the expenses set forth in any prior commitment letter entered
into between GECC and the Parent and the reimbursement provisions thereof are
hereby incorporated herein by reference. The obligations of the Parent under
this Section shall survive the termination of this Agreement and/or the payment
of the Loans.
SECTION 10.6 Indemnity. Each of the Parent agrees to indemnify and
---------
hold harmless the Administrative Agent, GECMG and the Lenders and their
directors, officers, employees, agents and Affiliates (each an "Indemnified
-----------
Party") from and against any and all expenses, losses, claims, damages and
-----
liabilities incurred by such Indemnified Party arising out of claims made by
any Person in any way relating to the transactions contemplated hereby, but
excluding therefrom all expenses, losses, claims, damages, and liabilities to
the extent that they are determined by the final judgment of a court of
competent jurisdiction to have resulted from the gross negligence or willful
misconduct of such Indemnified Party. The obligations of the Parent under this
Section shall survive the termination of this Agreement and/or the payment of
the Loans.
SECTION 10.7 Choice of Law. THIS AGREEMENT AND THE OTHER LOAN
-------------
DOCUMENTS SHALL IN ALL RESPECTS BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED WHOLLY WITHIN SUCH STATE AND THE BANKRUPTCY CODE.
SECTION 10.8 No Waiver. No failure on the part of the Administrative
---------
Agent or any of the Lenders to exercise, and no delay in exercising, any right,
power or remedy hereunder or any of the other Loan Documents shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise
of any other right, power or remedy. All remedies hereunder are cumulative and
are not exclusive of any other remedies provided by law.
SECTION 10.9 Extension of Maturity. Should any payment of principal
---------------------
of or interest or any other amount due hereunder become due and payable on a
day other than a Business Day, the maturity thereof shall be extended to the
next succeeding Business Day and, in the case of principal, interest shall be
payable thereon at the rate herein specified during such extension.
SECTION 10.10 Amendments, etc.
---------------
(a) No modification, amendment or waiver of any provision of this
Agreement or the Security and Pledge Agreement, and no consent to any departure
by the Borrowers or the Guarantors 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 purpose for which given; provided, however, that no such
-------- -------
modification or amendment shall without the written consent of the Lender
affected thereby (x) increase the Commitment of a Lender (it being understood
that a waiver of an Event of Default shall not constitute an increase in the
Commitment of a Lender), or (y) reduce the
64
principal amount of any Loan or the rate of interest payable thereon, or extend
any date for the payment of interest hereunder or reduce any Fees payable
hereunder or extend the final maturity of the Borrowers' obligations hereunder;
and, provided, further, that no such modification or amendment shall without
-------- -------
the written consent of (A) all of the Lenders (i) amend or modify any provision
of this Agreement which provides for the unanimous consent or approval of the
Lenders, (ii) amend this Section 10.10 or the definition of "Required Lenders"
-------------
or "Super-majority Lenders" or (iii) amend or modify the Superpriority Claim
status of the Lenders contemplated by Section 2.23 or (B) the Super-majority
------------
Lenders (i) release any material portion of the Collateral from the Liens
created under the Security and Pledge Agreement, (ii) release the Guarantors or
(iii) alter the eligibility standards used in determining the Borrowing Base in
a manner which would increase the amount of the Borrowing Base, or (iv)
increase the advance rates in calculation of the Borrowing Base. No such
amendment or modification may adversely affect the rights and obligations of
the Administrative Agent or any Fronting Bank hereunder without its prior
written consent. No notice to or demand on any Borrower or the Guarantors
shall entitle any Borrower or the Guarantors to any other or further notice or
demand in the same, similar or other circumstances. Each assignee under
Section 10.3(b) shall be bound by any amendment, modification, waiver, or
---------------
consent authorized as provided herein, and any consent by a Lender shall bind
any Person subsequently acquiring an interest on the Loans held by such Lender.
No amendment to this Agreement shall be effective against any Borrower or the
Guarantors unless signed by such Borrower or the Guarantors, as the case may
be.
(b) Notwithstanding anything to the contrary contained in Section
-------
10.10(a), in the event that any Borrower requests that this Agreement be
--------
modified or amended in a manner which would require the unanimous consent of
all of the Lenders and such modification or amendment is agreed to by the
Super-majority Lenders (as hereinafter defined), then with the consent of the
Borrowers and the Super-majority Lenders, the Borrowers and the Super-majority
Lenders shall be permitted to amend this Agreement without the consent of the
Lender or Lenders which did not agree to the modification or amendment
requested by such Borrower (such Lender or Lenders, collectively the "Minority
--------
Lenders") to provide for (w) the termination of the Commitment of each of the
--------
Minority Lenders, (x) the addition to this Agreement of one or more other
financial institutions (each of which shall be an Eligible Assignee), or an
increase in the Commitment of one or more of the Super-majority Lenders, so
that the Total Commitment after giving effect to such amendment shall be in the
same amount as the Total Commitment immediately before giving effect to such
amendment, (y) if any Loans are outstanding at the time of such amendment, the
making of such additional Loans by such new financial institutions or
Super-majority Lender or Lenders, as the case may be, as may be necessary to
repay in full the outstanding Loans of the Minority Lenders immediately before
giving effect to such amendment and (z) such other modifications to this
Agreement as may be appropriate. As used herein, the term "Super-majority
--------------
Lenders" shall mean, at any time, Lenders holding Loans representing at least
-------
66-2/3% of the aggregate principal amount of the Loans outstanding, or if no
Loans are outstanding, Lenders having Commitments representing at least 66-2/3%
of the Total Commitment.
SECTION 10.11 Severability. Any provision of this Agreement which is
------------
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any
65
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.
SECTION 10.12 Headings. Section headings used herein are for
--------
convenience only and are not to affect the construction of or be taken into
consideration in interpreting this Agreement.
SECTION 10.13 Execution in Counterparts. This Agreement may be
-------------------------
executed in any number of counterparts, each of which shall constitute an
original, but all of which taken together shall constitute one and the same
instrument.
SECTION 10.14 Prior Agreements. This Agreement represents the entire
----------------
agreement of the parties with regard to the subject matter hereof and the terms
of any commitment, fee or other letters and other documentation entered into
between any Borrower or the Guarantors and any Lender or the Administrative
Agent prior to the execution of this Agreement which relate to Loans to be made
hereunder shall be replaced by the terms of this Agreement (except as otherwise
expressly provided herein with respect to any commitment or fee letter referred
to herein, including without limitation the Borrowers' and the Guarantors'
agreement to actively assist the Administrative Agent in the syndication of the
transactions contemplated hereby referred to in Section 10.3(g) and including
---------------
also the provisions of Section 2.19).
------------
SECTION 10.15 Further Assurances. Whenever and so often as reasonably
------------------
requested by the Administrative Agent, the Borrowers and the Guarantors will,
and shall cause their respective Subsidiaries to, promptly execute and deliver
or cause to be executed and delivered all such other and further instruments,
documents or assurances, and promptly do or cause to be done all such other and
further things as may be necessary and reasonably required in order to further
and more fully vest in the Administrative Agent all rights, interests, powers,
benefits, privileges and advantages conferred or intended to be conferred by
this Agreement and the other Loan Documents.
SECTION 10.16 Waiver of Jury Trial. EACH PARTY HERETO HEREBY
--------------------
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED THEREBY.
SECTION 10.17 Foreign Subsidiaries. Notwithstanding any provision of
--------------------
any Loan Document to the contrary, (i) no more than 66% of the capital stock in
or of any Subsidiary of any Borrower or the Guarantors, which Subsidiary is
incorporated under the laws of a jurisdiction outside the United States and
which is a "controlled foreign corporation" within the meaning of Section
957(a) of the Code (each, a "Foreign Subsidiary"), shall be pledged or
------------------
similarly hypothecated to guaranty or support any Obligations of any Borrower
or the Guarantors, (ii) no Foreign Subsidiary shall guaranty or support any
Obligation of any Borrower or the Guarantors, and (iii) no security or similar
interest shall be granted in the assets of any Foreign Subsidiary, which
security or similar interest guarantees or supports any Obligation of any
Borrower or the Guarantors. The parties agree that any pledge, guaranty or
security or similar interest made or granted in contravention of this Section
-------
10.17 shall be void ab initio. Neither the Borrowers nor the Guarantors shall
----- ---------
(x) make any Investments in their Foreign
66
Subsidiaries except as permitted hereunder or (y) transfer any assets or the
proceeds of any Loans to any jurisdiction outside of the United States of
America except as permitted hereunder.
SECTION 10.18 Subordination of Intercompany Indebtedness. Each
------------------------------------------
Borrower and each Guarantor agrees that any and all claims of such Borrower or
Guarantor against any Borrower or Guarantor with respect to any Intercompany
Indebtedness owing to such Borrower or Guarantor shall be subordinate and
subject in right of payment to the prior payment, in full and in cash, of all
Obligations. Notwithstanding any right of any Borrower and the Guarantors to
ask, demand, xxx for, take or receive any payment in respect of any
Intercompany Indebtedness owed to any Borrower or Guarantor, any and all
rights, liens and security interests of any Borrower or Guarantor, whether now
or hereafter arising and howsoever existing, in any assets of any other
Borrower or Guarantor (whether constituting part of Collateral given to the
Administrative Agent for the benefit of the Lenders to secure payment of all or
any part of the Obligations or otherwise) shall be and are subordinated to the
rights of the Administrative Agent and the Lenders in those assets. No
Borrower or Guarantor shall have any right to possession of any such asset or
to foreclose upon any such asset, whether by judicial action or otherwise,
unless and until all of the Obligations (other than contingent indemnity
obligations) shall have been fully paid and satisfied and all financing
arrangements among the Borrowers, the Guarantors and the Lenders have been
terminated. So long as any Event of Default shall have occurred and be
continuing, then, any payment or distribution of any kind or character, either
in cash, securities or other property, which shall be payable or deliverable to
any Borrower or Guarantor upon or with respect to any Intercompany Indebtedness
shall be paid or delivered directly to the Administrative Agent for application
on any of the Obligations, due or to become due, until such Obligations (other
than contingent indemnity obligations) shall have first been fully paid and
satisfied. Each Borrower and each Guarantor irrevocably authorizes and
empowers the Administrative Agent to demand, xxx for, collect and receive every
such payment or distribution and give acquittance therefor and to make and
present for and on behalf of any Borrower or Guarantor (as applicable) such
proofs of claim and take such other action, in the Administrative Agent's own
name or in the name of the applicable Borrower or Guarantor (as applicable) or
otherwise, as the Administrative Agent may deem necessary or advisable for the
enforcement of this Section 10.18. The Administrative Agent may vote such
-------------
proofs of claim in any such proceeding, receive and collect any and all
dividends or other payments or disbursements made thereon in whatever form the
same may be paid or issued and apply the same on account of any of the
Obligations. Should any payment, distribution, security or instrument or
proceeds thereof be received by any Borrower or Guarantor upon or with respect
to such Intercompany Indebtedness at any time an Event of Default shall have
occurred and be continuing and prior to the satisfaction of all of the
Obligations and the termination of all financing arrangements among the
Borrowers, the Guarantors and the Lenders, the applicable Borrower or Guarantor
(as applicable) shall receive and hold the same in trust, as trustee, for the
benefit of the Lenders and shall so long as any Event of Default shall have
occurred and be continuing promptly deliver the same to the Administrative
Agent, for the benefit of the Lenders, in precisely the form received (except
for the endorsement or assignment of the applicable Borrower or the Guarantor
where necessary), for application to any of the Obligations, due or not due,
and, until so delivered, the same shall be held in trust by the applicable
Borrower or Guarantor as the property of the Lenders. If any Borrower or
Guarantor (as applicable) fails to make any such endorsement or assignment to
the Administrative Agent, the Administrative Agent or any of its officers or
employees are irrevocably authorized to make the same. So long
67
as any Event of Default shall have occurred and be continuing, the each
Borrower and each Guarantor agrees that until the Obligations have been paid in
full (in cash) and satisfied and all financing arrangements among the
Borrowers, the Guarantors and the Lenders have been terminated, neither the
Borrowers nor the Guarantors will assign or transfer to any Person (other than
the Administrative Agent) any claim the Borrowers or the Guarantors have or may
have against any other Borrower or Guarantor.
SECTION 10.19 Conflict with Orders. In the event that any term or
--------------------
provision hereof that summarizes or otherwise references the Orders or any
terms contained therein (including, without limitation, the Liens created
thereunder, the priority assigned to such Liens or the provisions relating to
adequate protection or the Carve-Out) is in conflict with the terms and
provisions of the Orders, the terms and provisions of the Orders shall control.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
68
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and the year first written.
BORROWERS:
BETHLEHEM STEEL CORPORATION
By: /s/ Xxxxxxx X. Xxxxxxx
-------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Senior Vice President, Chief
Financial Officer and Treasurer
BETHLEHEM COLD ROLLED CORPORATION
MISSISSIPPI COATINGS LINE CORPORATION
MISSISSIPPI COATINGS LTD. CORPORATION
BETHLEHEM DEVELOPMENT CORPORATION
BETHLEHEM RAIL CORPORATION
ENCOAT-NORTH ARLINGTON, INC.
KENACRE LAND CORPORATION
PRIMEACRE LAND CORPORATION
BETHLEHEM STEEL EXPORT COMPANY OF
CANADA, LIMITED
BETHLEHEM STEEL EXPORT CORPORATION
BETHLEHEM STEEL DE MEXICO, S.A. DE C.V.
BETHENERGY MINES INC.
EAGLE NEST INC.
HPM CORPORATION
ENERGY COATINGS COMPANY
GREENWOOD MINING CORPORATION
MARMORATON MINING COMPANY, LTD.
BETHPLAN CORPORATION
LI SERVICE COMPANY
In each case:
By: /s/ Xxxxxxx X. Xxxxxxx
-------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Authorized Agent
CHICAGO COLD ROLLING, L.L.C.
BY: Bethlehem Cold Rolled Corp,
Sole Member
By: /s/ Xxxxxxx X. Xxxxxxx
-------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Authorized Agent
ALLIANCE COATINGS COMPANY, LLC
OHIO STEEL SERVICE COMPANY, LLC
In each case:
BY: Bethlehem Steel Corporation
Sole Member
By: /s/ Xxxxxxx X. Xxxxxxx
-------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Senior Vice President, Chief
Financial Officer and Treasurer
GUARANTORS:
CAMBRIA AND INDIANA RAILROAD COMPANY
CONEMAUGH & BLACK LICK RAILROAD
COMPANY
PATAPSCO & BACK RIVERS RAILROAD
COMPANY
BRANDYWINE VALLEY RAILROAD COMPANY
UPPER MERION & PLYMOUTH RAILROAD
COMPANY
KEYSTONE RAILROAD INC.
BETHTRAN, INC.
CARRIER EXPRESS, INC.
BETHINTERMODAL, INC.
STEELTON & HIGHSPIRE RAILROAD COMPANY
BETHLEHEM HIBBING CORPORATION
HIBBING LAND CORPORATION
IPV INC.
BETHLEHEM BLANK WELDING, INC.
BETHLEHEM STEEL INTERNATIONAL
CORPORATION
INTEROCEAN SHIPPING COMPANY
BETHLEHEM ENERGY SERVICES, INC.
BETHLEHEM INDUSTRIES CORPORATION
PENNSYLVANIA STEEL TECHNOLOGIES, INC.
TWINCAST PROPERTY LEASING, INC.
BETHLEHEM STEEL FOUNDATION
In each case:
By: /s/ Xxxxxxx X. Xxxxxxx
-------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Authorized Agent
LAKE MICHIGAN & INDIANA RAILROAD
COMPANY LLC
EGL STEEL COMPANY, LLC
BETHLEHEM ROOFING COMPANY LLC
In each case:
BY: Bethlehem Steel Corporation,
Sole Member
By: /s/ Xxxxxxx X. Xxxxxxx
-------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Senior Vice President, Chief
Financial Officer and Treasurer
RAILQUEST, LLC
BY: Keystone Railroad Inc.,
Sole Member
By: /s/ Xxxxxxx X. Xxxxxxx
-------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Authorized Agent
LENDERS:
GENERAL ELECTRIC CAPITAL CORPORATION,
Individually and as Administrative Agent
By: /s/ Xxxxxxx X. Xxxxx
-------------------------
Name: Xxxxxxx X. Xxxxx
Title: Managing Director
Annex A to the
Revolving Credit and Guaranty Agreement
COMMITMENT AMOUNTS
Dated as of October 15, 2001
COMMITMENT COMMITMENT
BANK AMOUNT PERCENTAGE
General Electric Capital Corporation $ 450,000,000 100,0000%
00 Xxxxx XxXxxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
Attention: Bethlehem Steel Account
Manager
Telecopier No.: (000) 000-0000
Telephone No.: (000) 000-0000
Total $ 450,000,000 100.0000%
--------------------------------------------------------------------------
Annex B to the
Revolving Credit and Guaranty Agreement
ELIGIBLE ACCOUNTS
All of the Accounts owned by Parent (and not by any Subsidiary of
Parent or any other Person) in the ordinary course of business, which are and
at all times shall continue to be acceptable to the Administrative Agent in all
respects in the exercise of its reasonable judgment and Administrative Agent's
customary credit policies and which are reflected in the most recent Borrowing
Base Certificate delivered by Parent to the Administrative Agent shall be
"Eligible Accounts" for purposes of this Agreement, except any Account to which
any of the exclusionary criteria set forth below applies. Administrative Agent
shall have the right, in Administrative Agent's reasonable judgment exercised
in good faith and in accordance with its customary credit policies and upon one
Business Day's notice to Parent, at any time and from time to time after the
Closing Date, to adjust any of the criteria set forth below and to establish
new criteria, subject to the approval of Super-majority Lenders in the case of
adjustments or new criteria which have the effect of making more credit
available as compared to availability on the Closing Date. Eligible Accounts
shall not include any Account of Parent:
(i) with respect to which all payments due on the Account have not
been evidenced by an invoice indicating that Parent is the payee or remittance
party (which invoice shall not indicate any other Person as the payee or
remittance party, other than, in the case of certain invoices for foreign
Accounts, Bethlehem Steel Export Corporation, as agent for Parent) and the
underlying goods have been shipped or services performed, as the case may be;
(ii) with respect to which the payment due on the Account is more than
60 days past due or more than 90 days past the original, initial invoice date;
(iii) with respect to which the payments due on more than 50% of all
Accounts from the same Account Debtor are not less than 60 days past due or
less than 90 days past the original, initial invoice date;
(iv) that did not arise from a completed and bona fide transaction
with respect to the sale of goods or the provision of services (and with
respect to a sale of goods, a transaction in which title has passed to the
Account Debtor) which requires no further act under any circumstances on the
part of Parent in order to cause such Account to be payable in full by the
Account Debtor;
(v) that is not in full conformity in all material respects with the
representations and warranties made by Parent to the Administrative Agent in
the Loan Documents with respect thereto, or is not free and clear of all
security interests and Liens of any nature whatsoever, other than Permitted
Liens (excluding Permitted Liens of the type described in clause (ix) of the
definition of "Permitted Liens" and extensions, renewals or replacements of
such Permitted Liens in accordance with clause (x) of the definition of
"Permitted Liens");
(vi) that does not constitute an "account" or "chattel paper" (of
which the Administrative Agent shall have physical possession) within the
meaning of the Uniform Commercial Code of the state in which the Account is
located;
(vii) to the extent that the Account Debtor with respect thereto has
asserted that the Account, or to the extent that Parent is aware that the
Account, arises out of a xxxx and hold, consignment or progress billing
arrangement or is subject to any setoff, contras, net- out contract, offset,
deduction, dispute, credit, counterclaim or other defense arising out of the
transactions represented by the Account or independently thereof; or with
respect to which the Account Debtor has finally accepted the goods from the
sale out of which the Account arose and has objected to its liability thereon
or returned, rejected or repossessed any of such goods, except for complaints
made or goods returned in the ordinary course of business for which, in the
case of goods returned, goods of equal or greater value have been shipped in
return;
(viii) that has not arisen in the ordinary course of business of
Parent;
(ix) with respect to which the Account Debtor is (x) the United States
government or the government of any state or political subdivision thereof or
therein, or any agency or department of any thereof (unless there has been full
compliance to the satisfaction of the Administrative Agent with any applicable
assignment of claims statutes), (y) an Affiliate of Parent or any Subsidiary
thereof, or any director, officer or other employee thereof (or any entity that
has any common officer or director with Parent or its Subsidiaries), or a
supplier or creditor of Parent or any Subsidiary thereof (provided that such
Account shall only be ineligible to the extent of amounts owing by Parent or
Subsidiary to such supplier or outstanding to such creditor) or (z) a natural
person;
(x) With respect to which the Account Debtor is (i) on credit hold and
is a United States person or an obligor in the United States or (ii) an obligor
located in another jurisdiction other than Canada (excluding the province of
Newfoundland, the Northwest Territories and the Territory of Nunavit) unless,
in the case of either clause (j)(i) or (j)(ii) the applicable Account is
covered by a letter of credit, or other credit assurance satisfactory to the
Administrative Agent in its sole discretion, assigned to Administrative Agent
in form and substance satisfactory to the Administrative Agent;
(xi) that does not comply with all material requirements of all
applicable laws and regulations, whether Federal, state or local (including,
without limitation, usury laws and laws, rules and regulations relating to
truth in lending, fair credit billing, fair credit reporting, equal credit
opportunity, fair debt collection practices and privacy);
(xii) that is not in full force and effect or does not constitute a
legal, valid and binding obligation of the Account Debtor enforceable in
accordance with its terms, except as the enforceability thereof may be limited
by bankruptcy, insolvency, moratorium and other similar laws affecting the
enforcement of creditors' rights generally and by general equity principles;
(xiii) that is not denominated in or does not provide for payment by
the Account Debtor in Dollars (unless a currency swap or similar hedging
arrangement approved by Administrative Agent has been entered into with respect
to such Account the effect of which is to cause payment to be denominated in
Dollars); and is payable within the United States;
(xiv) that has been or is required to be charged off or written off as
uncollectible in accordance with GAAP or the customary business practices of
Parent or provides for COD terms;
(xv) with respect to which the Administrative Agent, on behalf of the
Lenders, does not possess a valid, perfected first priority and exclusive
security interest, other than Permitted Liens (excluding Permitted Liens of the
type described in clause (ix) of the definition of "Permitted Liens" and
extensions, renewals or replacements of such Permitted Liens in accordance with
clause (x) of the definition of "Permitted Liens");
(xvi) with respect to which the Account Debtor is located in New
Jersey, Minnesota, Indiana or any other state denying creditors access to its
courts in the absence of a Notice of Business Activities Report or other
similar filing, unless the Parent has either qualified as a foreign corporation
authorized to transact business in such state or has filed a Notice of Business
Activities Report or similar filing with the applicable state agency for the
then current year;
(xvii) with respect to which an event as described in Section 7.1(t)
or (u) has occurred with respect to the Account Debtor;
(xviii) with respect to which the Administrative Agent is not
satisfied with the credit standing of the Account Debtor in relation to the
amount of credit extended based on its good faith judgment in accordance with
its customary credit policies after discussion with Parent; (xix) that is not
for merchandise sold to or services rendered and accepted by the applicable
Account Debtor;
(xx) to the extent that such Account, together with all other Accounts
owing to such Account Debtor and its Affiliates as of any date of determination
exceed 5% of all Accounts of Parent, or in the case of General Motors
Corporation, 12.5%; or
(xxi) that is otherwise categorized as an ineligible Account on the
form of Borrowing Base Certificate.
Annex C to the
Revolving Credit and Guaranty Agreement
LENDERS' WIRE TRANSFER INFORMATION
Name: General Electric Capital Corporation
Bank: Bankers Trust Company
New York, New York
ABA #: 000000000
Account #: 00000000
Account Name: GECC/CAF Depository
Reference: CFC 4282
Exhibit A-1 to the
Revolving Credit and Guaranty Agreement
FORM OF INTERIM ORDER
Exhibit A-2 to the
Revolving Credit and Guaranty Agreement
FORM OF FINAL ORDER
Exhibit B to the
Revolving Credit and Guaranty Agreement
FORM OF SECURITY AND PLEDGE AGREEMENT
[To be executed within 10 days of the Closing Date.
Exhibit C to the
Revolving Credit and Guaranty Agreement
FORM OF OPINION OF COUNSEL
Exhibit D to the
Revolving Credit and Guaranty Agreement
FORM OF ASSIGNMENT AND ACCEPTANCE
Dated: _____________, 200_
Reference is made to the Revolving Credit and Guaranty Agreement,
dated as of October 15, 2001 (as restated, amended, modified, supplemented and
in effect from time to time, the "Credit Agreement"), among Bethlehem Steel
----------------
Corporation and each of its Subsidiaries party thereto, each a debtor and
debtor-in-possession under Chapter 11 of the Bankruptcy Code (collectively, the
"Borrowers"), the Subsidiaries party thereto as guarantors (the "Guarantors")
--------- ----------
and General Electric Capital Corporation, as agent (in such capacity, the
"Administrative Agent") for the lenders (the "Lenders") party to the Credit
-------------------- -------
Agreement. Capitalized terms used herein and not otherwise defined shall have
the meanings assigned to such terms in the Credit Agreement. This Assignment
and Acceptance between the Assignor (as set forth on Schedule I hereto and made
a part hereof) and the Assignee (as set forth on Schedule I hereto and made a
part hereof) is dated as of the Effective Date (as set forth on Schedule I
hereto and made a part hereof).
1. The Assignor hereby irrevocably sells and assigns to the Assignee
without recourse to the Assignor, and the Assignee hereby irrevocably purchases
and assumes from the Assignor without recourse to the Assignor, as of the
Effective Date, an undivided interest (the "Assigned Interest") in and to all
-----------------
the Assignor's rights and obligations under the Credit Agreement in a principal
amount as set forth on Schedule I.
2. The Assignor (i) makes no representation or warranty and assumes
no responsibility with respect to any statements, warranties or representations
made in or in connection with the Credit Agreement or any other of the Loan
Documents or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement, any other of the Loan Documents
or any other instrument or document furnished pursuant thereto, other than that
it is the legal and beneficial owner of the interest being assigned by it
hereunder and that such interest is free and clear of any adverse claim; (ii)
makes no representation or warranty and assumes no responsibility with respect
to the financial condition of the Borrowers or the Guarantors or the
performance or observance by the Borrowers or the Guarantors of any of their
respective obligations under the Credit Agreement, any of the other Loan
Documents or any other instrument or document furnished pursuant thereto; and
(iii) requests that the Administrative Agent evidence the Assigned Interest by
recording the information contained on Schedule I in the Register which
reflects the assignment being made hereby (and after giving effect to any other
assignments which have become effective on the Effective Date).
3. The Assignee (i) represents and warrants that it is legally
authorized to enter into this Assignment and Acceptance and that it is an
Eligible Assignee; (ii) confirms that it has received a copy of the Credit
Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 5.1 thereof, and such other documents and
information as it has deemed appropriate to make its own credit analysis; (iii)
agrees that it will,
independently and without reliance upon the Administrative Agent, the Assignor
or any other Lender and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement; (iv) appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers under the Credit Agreement and the other Loan
Documents as are delegated to the Administrative Agent by the terms thereof,
together with such powers as are reasonably incidental thereto; (v) agrees that
it will be bound by the provisions of the Credit Agreement and will perform in
accordance with its terms all the obligations which by the terms of the Credit
Agreement are required to be performed by it as a Lender; (vi) if the Assignee
is organized under the laws of a jurisdiction outside the United States,
attaches the forms prescribed by the Internal Revenue Service of the United
States certifying as to the Assignee's exemption from United States withholding
taxes with respect to all payments to be made to the Assignee under the Credit
Agreement or such other documents as are necessary to indicate that all such
payments are subject to such tax at a rate reduced by an applicable tax treaty;
and (vii) has supplied the information requested on the administrative
questionnaire heretofore supplied by the Administrative Agent.
4. Following the execution of this Assignment and Acceptance, it will
be delivered to the Administrative Agent, together with a processing and
recordation fee of $3,500, for acceptance by it and recording by the
Administrative Agent pursuant to Section 10.3 of the Credit Agreement,
------------
effective as of the Effective Date (which Effective Date shall, unless
otherwise agreed to by the Administrative Agent, be within ten Business Days
after the execution of this Assignment and Acceptance).
5. Upon such acceptance and recording, from and after the Effective
Date, the Administrative Agent shall make all payments in respect of the
Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignee, whether such amounts have accrued prior to the
Effective Date or accrue subsequent to the Effective Date. The Assignor and
Assignee shall make all appropriate adjustments in payments for periods prior
to the Effective Date by the Administrative Agent or with respect to the making
of this assignment directly between themselves.
6. From and after the Effective Date, (i) the Assignee shall be a
party to the Credit Agreement and, to the extent provided in this Assignment
and Acceptance, have the rights and obligations of a Lender thereunder, and
(ii) the Assignor shall, to the extent provided in this Assignment and
Acceptance, relinquish its rights and be released from its obligations under
the Credit Agreement provided that Assignor hereby represents and warrants that
the restrictions set forth in Section 10.3 of the Credit Agreement pertaining
to the minimum amount of assignments have been satisfied.
7. This Assignment and Acceptance shall be governed by, and construed
in accordance with, the laws of the State of New York.
IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Acceptance to be executed by their respective duly authorized officers on
Schedule I hereto.
Schedule I to Assignment and Acceptance
Respecting the Revolving Credit and Guaranty Agreement,
dated as of October 15, 2001, among
Bethlehem Steel Corporation and its Subsidiaries party thereto,
the Guarantors named therein,
the Lenders named therein, and
General Electric Capital Corporation, as Administrative Agent
Legal Name of Assignor:
Legal Name of Assignee:
Effective Date of Assignment:
Principal Percentage Assigned (to at least 8 decimals)
Amount shown as a percentage of aggregate
Assigned principal amount of all Lenders
--------- -------------------------------
$________ ________%
CONSENTED TO AND ACCEPTED:
GENERAL ELECTRIC CAPITAL ------------------------------------,
CORPORATION, as Assignor
as Administrative Agent
By By
--------------------- -------------------------
Name: Name:
Title: Title:
------------------------ ---------------------------
as Fronting Bank as Assignee
By By
--------------------- -------------------------
Name: Name:
Title: Title:
Schedule 3.5 to the
Revolving Credit and Guaranty Agreement
SUBSIDIARIES
[TO BE SATISFACTORY TO THE ADMINISTRATIVE AGENT]
Schedule 3.6 to the
Revolving Credit and Guaranty Agreement
LIENS
[TO BE SATISFACTORY TO THE ADMINISTRATIVE AGENT]
Schedule 3.12 to the
Revolving Credit and Guaranty Agreement
INTELLECTUAL PROPERTY
[TO BE SATISFACTORY TO THE ADMINISTRATIVE AGENT]
Schedule 6.3 to the
Revolving Credit and Guaranty Agreement
EXISTING SECURED INDEBTEDNESS
[TO BE SATISFACTORY TO THE ADMINISTRATIVE AGENT]
Schedule 6.10 to the
Revolving Credit and Guaranty Agreement
INTERCOMPANY INDEBTEDNESS AND JOINT VENTURES
[TO BE SATISFACTORY TO THE ADMINISTRATIVE AGENT]
Schedule 6.13 to the
Revolving Credit and Guaranty Agreement
BORROWER TRANSACTION RESTRICTIONS
[TO BE SATISFACTORY TO THE ADMINISTRATIVE AGENT]
Schedule 9.1 to the
Revolving Credit and Guaranty Agreement
GUARANTORS
Cambria and Indiana Railroad Company IPV Inc.
Conemaugh & Black Lick Railroad Company Bethlehem Blank Welding, Inc
Patapsco & Back Rivers Railroad Company EGL Steel Company, LLC
Brandywine Valley Railroad Company Bethlehem Steel International
Corporation
Upper Merion & Plymouth Railroad Company Bethlehem Roofing Company LLC
Keystone Railroad Inc. Interocean Shipping Company
BETHTRAN, Inc. Bethlehem Energy Services, Inc.
CARRIER EXPRESS, INC. Bethlehem Industries Corporation
BethIntermermodal, Inc. Pennsylvania Steel Technologies,
Inc.
RailQuest, LLC Lake Michigan & Indiana Railroad
Co., LLC
Steelton & Highspire Railroad Company
Bethlehem Hibbing Corporation
Hibbing Land Corporation
Twincast Property Leasing, Inc.
Bethlehem Steel Foundation
