EXHIBIT 10.8
AMENDED AND
RESTATED CREDIT AGREEMENT
AMONG
XXXXXX OCEANICS PACIFIC LIMITED
AS BORROWER
AND
BANK ONE, NA
AND THE FINANCIAL INSTITUTIONS NAMED HEREIN
AS BANKS
BANK ONE, NA
AS ADMINISTRATIVE AGENT
NORDEA
AS DOCUMENTATION AGENT
CREDIT LYONNAIS, NEW YORK BRANCH
AND FORTIS CAPITAL CORP., AS SYNDICATION AGENTS
BANC ONE CAPITAL MARKETS, INC.,
AS LEAD ARRANGER AND SOLE BOOK RUNNER
$100,000,000 REVOLVING CREDIT FACILITY
FEBRUARY 20, 2002
TABLE OF CONTENTS
Page No.
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1. Definitions..............................................................................................1
2. Commitments of the Bank.................................................................................11
(a) Terms of Revolving Commitment..................................................................11
(b) Procedure for Borrowing........................................................................11
(c) Voluntary Reduction of Revolving Commitment....................................................11
(d) Type and Number of Advances....................................................................12
(e) Status of Obligations..........................................................................12
(f) Mandatory Reduction of Revolving Commitment....................................................12
3. Notes Evidencing Loans..................................................................................12
(a) Form of Notes..................................................................................12
(b) Issuance of Additional Notes...................................................................12
(c) Interest Rates.................................................................................12
(d) Payment of Interest............................................................................12
(e) Payment of Principal...........................................................................12
(f) Payment to Banks...............................................................................13
(g) Sharing of Payments, Etc.......................................................................13
(h) Non-Receipt of Funds by the Agent..............................................................13
4. Interest Rates..........................................................................................13
(a) Options........................................................................................13
(b) Interest Rate Determination....................................................................14
(c) Conversion Option..............................................................................14
(d) Recoupment.....................................................................................14
5. Special Provisions Relating to Loans....................................................................15
(a) Unavailability of Funds or Inadequacy of Pricing...............................................15
(b) Change in Laws.................................................................................15
(c) Increased Cost or Reduced Return...............................................................15
(d) Discretion of Bank as to Manner of Funding.....................................................16
(e) Breakage Fees..................................................................................17
6. Collateral Security.....................................................................................17
7. Fees....................................................................................................17
(a) Unused Fee.....................................................................................17
(b) Agency Fees....................................................................................18
8. Prepayments.............................................................................................18
(a) Voluntary Prepayments..........................................................................18
(b) Mandatory Prepayment...........................................................................18
9. Representations and Warranties..........................................................................18
(a) Creation and Existence.........................................................................18
(b) Power and Authority............................................................................18
(c) Binding Obligations............................................................................19
(d) No Legal Bar or Resultant Lien.................................................................19
(e) No Consent.....................................................................................19
(f) Financial Condition............................................................................19
(g) Liabilities....................................................................................19
(h) Litigation.....................................................................................19
(i) Taxes; Governmental Charges....................................................................19
(j) Titles, Etc....................................................................................20
(k) Defaults.......................................................................................20
(l) Casualties; Taking of Properties...............................................................20
(m) Use of Proceeds; Margin Stock..................................................................20
(n) Location of Business and Offices...............................................................20
(o) Compliance with the Law........................................................................20
(p) No Material Misstatements......................................................................21
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(q) ERISA..........................................................................................21
(r) Public Utility Holding Company Act.............................................................21
(s) Environmental Matters..........................................................................21
(t) Liens..........................................................................................22
(u) Subsidiaries...................................................................................22
10. Conditions of Lending...................................................................................22
11. Affirmative Covenants...................................................................................24
(a) Financial Statements and Reports...............................................................24
(b) Annual Financial Statements....................................................................24
(c) Quarterly Financial Statements.................................................................24
(d) Fleet Employment Report........................................................................24
(e) Annual Appraisals..............................................................................24
(f) Additional Information.........................................................................25
(g) Certificates of Compliance.....................................................................25
(h) Taxes and Other Liens..........................................................................25
(i) Compliance with Laws...........................................................................25
(j) Further Assurances.............................................................................25
(k) Performance of Obligations.....................................................................25
(l) Insurance......................................................................................25
(m) Accounts and Records...........................................................................26
(n) Right of Inspection............................................................................26
(o) Notice of Certain Events.......................................................................26
(p) ERISA Information and Compliance...............................................................26
(q) Environmental Compliance.......................................................................27
(r) Environmental Notifications....................................................................27
(s) Environmental Indemnifications.................................................................28
(t) Change of Principal Place of Business..........................................................28
(u) Payables and Other Indebtedness................................................................28
(v) Collateral Maintenance.........................................................................28
(w) Maintenance of Rigs............................................................................28
(x) Rate Management Transactions...................................................................29
12. Negative Covenants......................................................................................29
(a) Negative Pledge................................................................................29
(b) Current Ratio..................................................................................29
(c) Funded Debt to EBITDA..........................................................................29
(d) Interest Coverage Ratio........................................................................29
(e) Funded Debt to Tangible Net Worth..............................................................29
(f) Tangible Net Worth.............................................................................29
(g) Consolidations and Mergers.....................................................................29
(h) Debts, Guaranties and Other Obligations........................................................30
(i) Dividends......................................................................................30
(j) Loans and Advances.............................................................................30
(k) Sale or Discount of Receivables................................................................31
(l) Nature of Business.............................................................................31
(m) Transactions with Affiliates...................................................................31
(n) Investments....................................................................................31
(o) Amendment to Charter Documents.................................................................31
(p) Management of Rigs.............................................................................31
(q) Charter of Rigs................................................................................31
(r) Modification of Rigs...........................................................................32
(s) Sale of Rigs, etc..............................................................................32
13. Events of Default.......................................................................................32
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Page No.
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14. The Agent and the Banks.................................................................................34
(a) Appointment and Authorization..................................................................34
(b) Note Holders...................................................................................34
(c) Consultation with Counsel......................................................................35
(d) Documents......................................................................................35
(e) Resignation or Removal of Agent................................................................35
(f) Responsibility of Agent........................................................................35
(g) Independent Investigation......................................................................36
(h) Indemnification................................................................................36
(i) Benefit of Section 14..........................................................................37
(j) Pro Rata Treatment.............................................................................37
(k) Assumption as to Payments......................................................................37
(l) Other Financings...............................................................................37
(m) Interests of Banks.............................................................................37
(n) Investments....................................................................................37
(o) Withholding Tax................................................................................38
15. Exercise of Rights......................................................................................38
16. Notices.................................................................................................38
17. Expenses................................................................................................38
18. Indemnity...............................................................................................39
19. Governing Law...........................................................................................39
20. Invalid Provisions......................................................................................40
21. Maximum Interest Rate...................................................................................40
22. Amendments or Waivers...................................................................................40
23. Multiple Counterparts...................................................................................41
24. Conflict................................................................................................41
25. Survival................................................................................................41
26. Parties Bound...........................................................................................41
27. Assignments and Participations..........................................................................41
28. Choice of Forum: Consent to Service of Process and Jurisdiction.........................................42
29. Waiver of Jury Trial....................................................................................43
30. Other Agreements........................................................................................43
31. Financial Terms.........................................................................................43
Exhibits
Exhibit "A"....... -- Notice of Borrowing
Exhibit "B"....... -- Note
Exhibit "C"....... -- Xxxxxx'x/Deep Seas' Guaranty
Exhibit "D"....... -- Australia's Guaranty
Exhibit "E"....... -- Certificate of Compliance
Exhibit "F"....... -- Assignment and Acceptance Agreement
Schedules
Schedule 1........ -- Liens
Schedule 2........ -- Financial Condition
Schedule 3........ -- Liabilities
Schedule 4........ -- Litigation
Schedule 5........ -- Subsidiaries
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Schedule 6........ -- Environmental Matters
Schedule 7........ -- Loans and Advances
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AMENDED AND RESTATED CREDIT AGREEMENT
THIS AMENDED AND RESTATED CREDIT AGREEMENT (hereinafter referred to as the
"Agreement") executed as of the 20th day of February, 2002 by and among XXXXXX
OCEANICS PACIFIC LIMITED, a Cayman Islands company ("Borrower"), XXXXXX
OCEANICS, INC., a Texas corporation ("Xxxxxx"), XXXXXX DEEP SEAS, LTD., a Texas
limited partnership ("Deep Seas") and XXXXXX OCEANICS AUSTRALIA PTY LIMITED, an
Australian corporation ("Australia") (Xxxxxx, Deep Seas and Australia shall
hereinafter be collectively referred to as "Guarantors" and, individually, as
"Guarantor"), Bank One, NA, a national banking association ("Bank One") and each
of the financial institutions which is a party hereto (as evidenced by the
signature pages to this Agreement) or which may from time to time become a party
hereto pursuant to the provisions of Section 27 hereof or any successor or
assignee thereof (hereinafter collectively referred to as "Banks", and
individually, "Bank") and Bank One, as Administrative Agent ("Agent") and
NORDEA, as Documentation Agent and Credit Lyonnais, New York Branch and Fortis
Capital Corp., as Syndication Agents.
W I T N E S S E T H:
WHEREAS, as of June 30, 2000, Borrower, Guarantors, the Banks and the Agent
entered into a Credit Agreement pursuant to which the Banks made available to
the Borrower a revolving credit facility of up to $50,000,000 (the "Original
Credit Agreement"); and
WHEREAS, the Borrower has requested that the Banks agree to make certain
amendments to the Original Credit Agreement and the Banks have agreed to amend
the Original Credit Agreement on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, the parties hereby agree as follows:
1. DEFINITIONS. When used herein the terms "Agent", "Agreement",
"Xxxxxx", "Bank", "Banks", "Bank One", "Borrower", "Deep Seas", "Guarantor" and
"Guarantors" shall have the meanings indicated above. When used herein the
following terms shall have the following meanings:
"Advance or Advances" shall mean a loan or loans hereunder.
"Affiliate" shall mean any Person which, directly or indirectly, controls,
is controlled by or is under common control with the relevant Person. For the
purposes of this definition, "control" (including, with correlative meanings,
the terms "controlled by" and "under common control with"), as used with respect
to any Person, shall mean a member of the board of directors, a partner or an
officer of such Person, or any other Person with possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, through the ownership (of record, as trustee, or by
proxy) of voting shares, partnership interests or voting rights, through a
management contract or otherwise. Any Person owning or controlling directly or
indirectly ten percent or more of the voting shares, partnership interests or
voting rights, or other equity interest of another Person shall be deemed to be
an Affiliate of such Person.
"Alternate Base Rate" shall mean, as of any date, a rate of interest per
annum equal to the higher of (i) the Prime Rate for such date, and (ii) the sum
of the Federal Funds Effective Rate for such date plus one-half of one percent
(.50%) per annum.
"Assignment and Acceptance" shall mean a document substantially in the form
of Exhibit "F" hereto.
"Assignment of Insurances" shall mean those certain Assignments of
Insurance dated of even date herewith from Borrower and Australia to Agent on
behalf of the Banks, assigning to the Banks all policies and
contracts of insurance in respect of the Rigs and all other claims, rights and
proceeds related thereto, said assignment secures the obligations of the
Borrower and Australia under this Agreement and under the Australian Guaranty.
"Assignment of Charter Hire, Drilling Contract, Revenues and Earnings"
shall mean those certain Assignments of Charter Hire, Drilling Contract,
Revenues and Earnings dated of even date herewith from Borrower and Australia to
Agent on behalf of the Banks, assigning to the Banks all of Borrower's and
Australia's interest in day rate payments, freights, charter hire and other
monies earned or to be earned arising out of any charter parties, drilling
contracts or as a result of the ownership, chartering and other operations of
any kind whatsoever relating to the Rigs and certain other rights and
obligations arising pursuant to such agreements. Said assignment secures the
obligations of the Borrower under this Agreement and Guarantor under its
Guaranty.
"Base Rate" shall mean, as of any date, the sum of the Alternate Base Rate
plus the Base Rate Margin.
"Base Rate Loans" shall mean any loan during any period which bears
interest based upon the Base Rate or which would bear interest based upon the
Base Rate if the Maximum Rate ceiling was not in effect at that particular time.
"Base Rate Margin" shall mean:
(i) three-fourths of one percent (.75%) per annum whenever Xxxxxx'x
ratio of Consolidated Funded Debt to Consolidated EBITDA is greater than
2.25 to 1.0; or
(ii) three-eighths of one percent (.375%) per annum whenever Xxxxxx'x
ratio of Consolidated Funded Debt to Consolidated EBITDA is equal to or
less than 2.25 to 1.0 but greater than 2.0 to 1.0; or
(iii) one-eighth of one percent (.125%) per annum whenever Xxxxxx'x
ratio of Consolidated Funded Debt to Consolidated EBITDA is equal to or
less than 2.0 to 1.0 but greater than 1.5 to 1.0; and
(iv) zero percent (0%) per annum whenever Xxxxxx'x ratio of
Consolidated Funded Debt to Consolidated EBITDA is equal to or less than
1.5 to 1.0.
For the purposes of calculating the Base Rate Margin for each new or existing
Tranche, Xxxxxx'x (i) Consolidated Funded Debt shall fluctuate from day to day,
and (ii) Consolidated EBITDA shall be calculated quarterly as of the end of each
fiscal quarter and annualized. The Base Rate Margin shall be recalculated by
Agent from time to time and be effective upon (a) the making of any Advance
hereunder, (b) the receipt by the Banks of any payment or prepayment or (c)
receipt by Agent of the Borrower's quarterly Certificate of Compliance provided
by Borrower pursuant to Section 11(b) hereof.
"Borrowing Date" is used herein as defined in Section 2(b) hereof.
"Business Day" means (i) with respect to any borrowing, payment or note
selection of LIBOR Loans, a day (other than Saturdays or Sundays) on which banks
generally are open in Chicago, Illinois and New York, New York for the conduct
of substantially all of their commercial lending activities, interbank wire
transfers can be made on the Fedwire systems and dealings in United States
dollars are carried on in the London interbank market, and (ii) for all other
purposes, a day (other than Saturdays and Sundays) on which banks generally are
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open in Chicago, Illinois for the conduct of substantially all of their
commercial lending activities and interbank wire transfers can be made on the
Fedwire system.
"Capital Leases" shall mean any lease in respect of which the obligations
thereunder constitute Capitalized Lease Obligations.
"Capitalized Lease Obligations" shall mean, without duplication, all
obligations of any Person to pay rent or amounts under any lease of, or other
arrangement conveying the right to use, real or personal property, or a
combination thereof, which obligations shall have been or should be, in
accordance with GAAP, capitalized on the books of such Person.
"Cash Equivalents" shall mean (i) securities issued or directly and fully
guaranteed or insured by the United States of America or any agency or
instrumentality thereof (provided that the full faith and credit of the United
States of America is pledged in support thereof) having maturities of not more
than six months from the date of acquisition, (ii) U.S. dollar denominated time
deposits, certificates of deposit and bankers' acceptances of (x) any Bank, (y)
any domestic commercial bank of recognized standing having capital and surplus
in excess of $100,000,000 or (z) any Bank (or the parent company of such bank)
whose short-term commercial paper rating from Standard & Poor's Corporation
("S&P") is at least A-1 or the equivalent thereof or from Xxxxx'x Investors
Service, Inc. ("Xxxxx'x") is at least P-1 or the equivalent thereof (any such
bank, an "Approved Bank"), in each case with maturities of not more than six
months from the date of acquisition, (iii) repurchase obligations with a term of
not more than seven days for underlying securities of the types described in
clause (i) above entered into with any bank meeting the qualifications specified
in clause (ii) above, (iv) commercial paper issued by any Bank or Approved Bank
or by the parent company of any Bank or Approved Bank and commercial paper
issued by, or guaranteed by, any industrial or financial company with a
short-term commercial paper rating of at least A-1 or the equivalent thereof by
S&P or at least P-1 or the equivalent thereof by Moody's (any such company, an
"Approved Company"), or guaranteed by any industrial company with a long term
unsecured debt rating of at least A or A2 or the equivalent of each thereof,
from S&P or Moody's, as the case may be, and in each case maturing within six
months after the date of acquisition and (v) investments in money market funds
substantially all of whose assets are comprised of securities of the type
described in clauses (i) through (iv) above.
"Change of Control" shall mean the acquisition by any Person or group of
Persons acting together of beneficial ownership (within the meaning of Rule
13(d)-3 of the Securities Exchange Commission under the Securities Exchange Act
of 1934) of thirty percent (30%) or more of the outstanding shares of voting
stock of Xxxxxx.
"Change of Management" shall occur if both (i) Xxxx X. Xxxxx ceases to act
as President and Chief Executive Officer, and (ii) Xxxxx X. Xxxxxxx ceases to
act as Senior Vice President and Secretary of Xxxxxx, other than as a result of
death, disability or normal retirement of either.
"Collateral" is used herein as defined in Section 6 hereof.
"Consolidated Current Assets" shall mean the current assets of Xxxxxx and
its Subsidiaries on a consolidated basis determined in accordance with GAAP and
in a manner consistent with prior periods.
"Consolidated Current Liabilities" shall mean the current liabilities of
Xxxxxx and its Subsidiaries on a consolidated basis as determined in accordance
with GAAP and in a manner consistent with prior periods.
"Consolidated EBITDA" shall mean for any period for Xxxxxx and its
Subsidiaries on a consolidated basis, (A) the sum of the amounts for such period
of (i) Consolidated Net Income, (ii) depreciation expense, (iii) provisions for
taxes based on income, (iv) Consolidated Interest Expense, (v) amortization and
write-off of
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deferred financing costs to the extent deducted in determining Consolidated Net
Income, and (vi) losses on sales of assets (excluding sales in the ordinary
course of business) and other extraordinary losses, less (B) extraordinary gains
for such period, all determined in accordance with GAAP and in a manner
consistent with prior periods.
"Consolidated Equity" shall mean, at any time, the shareholder's equity of
Xxxxxx and its Subsidiaries on a consolidated basis as determined in accordance
with GAAP and in a manner consistent with prior periods.
"Consolidated Funded Debt" shall mean all Debt of Xxxxxx and its
Subsidiaries calculated on a consolidated basis in accordance with GAAP and in a
manner consistent with prior periods.
"Consolidated Interest Expense" shall mean, for any period, total interest
expense (including that attributable to Capitalized Lease Obligations) of Xxxxxx
and its Subsidiaries on a consolidated basis in accordance with GAAP with
respect to all outstanding Debt of Xxxxxx and its Subsidiaries, including,
without limitation, all commissions, discounts and other fees and charges owed
with respect to Letters of Credit and bankers' acceptance financing.
"Consolidated Net Income" shall mean, for any period, the net income (or
loss) of Xxxxxx and its Subsidiaries on a consolidated basis for such period
taken as a single accounting period determined in accordance with GAAP and in a
manner consistent with prior periods.
"Consolidated Tangible Net Worth" shall mean, at any time, the Consolidated
Equity of Xxxxxx and its Subsidiaries on a consolidated basis determined in
accordance with GAAP and in a manner consistent with prior periods, less all
unamortized debt discount and expense, unamortized deferred charges, goodwill,
patents, trademarks, service marks, trade names, copyrights and organization
expense.
"Debt" shall mean as to Xxxxxx, the Borrower or any Subsidiary of Xxxxxx or
the Borrower, all obligations and liabilities of the Borrower or such
Subsidiaries to any other person, including, without limitation, all debts,
claims and indebtedness, heretofore, now and/or from time to time hereafter
owing, due or payable, however evidenced, created, incurred, acquired or owing
and however arising, whether under written or oral agreement, operation of law,
or otherwise. Debt includes, without limiting the foregoing, (i) indebtedness
for borrowed money (including without duplication obligations to reimburse the
issuer of any letter of credit or any guarantor or surety), (ii) indebtedness
for the deferred purchase price of property or services, excluding trade
accounts payable within ninety (90) days and arising in the ordinary course of
business, (ii) indebtedness evidenced by bonds, debentures, notes or other
similar instruments, (iv) obligations and liabilities secured by a Lien on
property owned by Xxxxxx, Borrower or any Subsidiary of the Borrower or Xxxxxx,
whether or not Xxxxxx, Borrower or any such Subsidiary has assumed such
obligations and liabilities and the amount of which Debt shall not exceed the
fair market value of the property subject to the Lien if Xxxxxx, Borrower or any
such Subsidiary has not assumed such obligations and liabilities, (v)
obligations or liabilities created or arising under any Capitalized Lease, (vi)
all net payments or amounts owing by Xxxxxx, Borrower or any Subsidiary of the
Borrower or Xxxxxx in respect of interest rate protection agreements, foreign
currency exchange agreements, commodity swap agreements or other interests,
exchange rate or commodity hedging arrangements and (vii) liabilities in respect
of unfunded vested benefits under any Plan. The Debt of the Borrower, Xxxxxx or
any Subsidiary of the Borrower or Xxxxxx shall include the Debt of any
partnership or joint venture in which the Borrower, Xxxxxx or any Subsidiary of
the Borrower or Xxxxxx is a general or venture partner. The Debt of the
Borrower, Xxxxxx or any Subsidiary of the Borrower or Xxxxxx shall not include
trade payables and expense accruals incurred or assumed in the ordinary course
of the Borrower's, Xxxxxx'x or such Subsidiary's business (including trade
payables and expense accruals of any partnership or joint venture in which the
Borrower, Xxxxxx or any Subsidiary of the Borrower or Xxxxxx is a general or
venture partner; provided, such payables
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have not remained unpaid for a period of ninety (90) days after the same became
due unless the Borrower, Xxxxxx or such Subsidiary is diligently contesting same
in good faith).
"Default" shall mean any Event of Default and the occurrence of an event or
condition which would with the giving of any requisite notice and/or passage of
time or both constitute an Event of Default.
"Default Rate" shall mean the Alternate Base Rate plus 2.75% per annum.
"Defaulting Bank" is used herein as defined in Section 3(f) hereof.
"Effective Date" shall mean the date upon which all of the conditions
precedent set forth in Section 10(a) hereof are met.
"Eligible Assignee" shall mean any of (i) a Bank or any Affiliate of a
Bank; (ii) a commercial bank organized under the laws of the United States, or
any state thereof, and having a combined capital and surplus of at least
$100,000,000; (iii) a commercial bank organized under the laws of any other
country which is a member of the Organization for Economic Cooperation and
Development, or a political subdivision of any such country, and having a
combined capital and surplus of at least $100,000,000, provided that such bank
is acting through a branch or agency located in the United States; and (iv) a
Person that is primarily engaged in the business of commercial banking and that
(A) is a subsidiary of a Bank, (B) a subsidiary of a Person of which a Bank is a
subsidiary, or (C) a Person of which a Bank is a subsidiary; provided, however,
that as a condition precedent to any bank organized under the laws of any other
country other than the United States qualifying as an "Eligible Assignee" shall
be the providing by such bank of the U.S. Internal Revenue Service forms
required by Section 14(o) of this Agreement;
"Environmental Laws" means the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 U.S.C.A. Section 9601, et seq., the Resource
Conservation and Recovery Act, as amended by the Hazardous Solid Waste Amendment
of 1984, 42 U.S.C.A. Section 6901, et seq., the Clean Water Act, 33 U.S.C.A.
Section 1251, et seq., the Clean Air Act, 42 U.S.C.A. Section 1251, et seq., the
Toxic Substances Control Act, 15 U.S.C.A. Section 2601, et seq., The Oil
Pollution Act of 1990, 33 U.S.G. Section 2701, et seq., and all other laws,
statutes, codes, acts, ordinances, orders, judgments, decrees, injunctions,
rules, regulations, orders, permits and restrictions of any federal, state,
county, municipal and other governments, departments, commissions, boards,
agencies, courts, authorities, officials and officers, domestic or foreign,
relating to oil pollution, air pollution, water pollution, noise control and/or
the handling, discharge, disposal or recovery of on-site or off-site asbestos,
radioactive materials, spilled or leaked petroleum products, distillates or
fractions and industrial solid waste or "hazardous substances" as defined by 42
U.S.C. Section 9601, et seq., as amended, as each of the foregoing may be
amended from time to time.
"Environmental Liability" means any claim, demand, obligation, cause of
action, order, violation, damage, injury, judgment, penalty or fine, cost of
enforcement, cost of remedial action or any other costs or expense whatsoever,
including reasonable attorneys' fees and disbursements, resulting from the
violation or alleged violation of any Environmental Law or the release of any
substance into the environment which is required to be remediated by a
regulatory agency or governmental authority or the imposition of any
Environmental Lien (as hereinafter defined) which could reasonably be expected
to individually or in the aggregate have a Material Adverse Effect.
"Environmental Lien" means a Lien in favor of any court, governmental
agency or instrumentality or any other Person (i) for any Environmental
Liability or (ii) for damages arising from or cost incurred by such court or
governmental agency or instrumentality or other person in response to a release
or threatened release of
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asbestos or "hazardous substance" into the environment, the imposition of which
Lien could reasonably be expected to have a Material Adverse Effect.
"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended.
"Event of Default" is used herein as defined in Section 13 hereof.
"Federal Funds Effective Rate" shall mean, for any day, an interest rate
per annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations at approximately 10:00 a.m.
(Chicago, Illinois time) on such day on such transactions received by the Agent
from three (3) Federal funds brokers of recognized standing selected by the
Agent in its sole discretion.
"Financial Statements" shall mean balance sheets, income statements,
statements of cash flow and appropriate footnotes and schedules, prepared in
accordance with GAAP and in a manner consistent with prior periods.
"First Naval Mortgage" shall mean that certain First Naval Mortgage,
recorded at the Office of the Public Registry the Republic of Panama at Micro
jacket 18403, Document 166156 as of October 27, 2000, as the same may be amended
from time to time, on the vessel XXXXXX FALCON executed by Borrower to Agent on
behalf of the Banks pursuant to which Borrower mortgages the XXXXXX FALCON to
the Banks to secure its obligations under this Agreement and under any Rate
Management Transaction.
"First Ship Mortgage" shall mean that certain Ship Mortgage dated of even
date herewith on the vessel VICKSBURG executed by Australia to Agent on behalf
of the Banks pursuant to which Australia mortgages the VICKSBURG to the Banks to
secure its obligations under its Guaranty.
"GAAP" shall mean generally accepted accounting principles, consistently
applied in the United States of America.
"Governmental Authority" shall mean any nation or government, any federal,
state, province, city, town, municipality, county, local or other political
subdivision thereof or thereto and any department, commission, board, bureau,
instrumentality, agency or other entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government.
"Guarantors' Credit Agreement" shall mean that certain Restated Credit
Agreement among Xxxxxx, Deep Seas, the Banks, the Agent dated of even date
herewith pursuant to which the Banks made available to the Guarantors a
$75,000,000 revolving credit facility.
"Guaranties" shall mean the unconditional guaranties of Xxxxxx and Deep
Seas of all obligations owed the Banks by Borrower in the form of (i) Exhibit
"C" hereto for Xxxxxx and Deep Seas and (ii) the Guarantee and Indemnity
Agreement of Australia substantially in the form of Exhibit "D" hereto.
"Hazardous Substances" shall mean petroleum and used oil, or any other
pollutant or contaminant, hazardous, dangerous or toxic waste, substance or
material as defined in the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended, 42 U.S.C. Sec. 9601, et seq. (hereinafter
called "CERCLA"); the Resource Conversation and Recovery Act, as amended, 42
U.S.C. 6901, et seq. (hereinafter called "RCRA"); the Toxic Substances Control
Act, as amended, 15 U.S.C. Sec. 2601 et seq. (hereinafter called
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"TSCA"); the Hazardous Materials Transportation Act, as amended, 49 U.S.C. Sec.
1801, et seq (hereinafter called "HMTA"); the Oil Pollution Act of 1990, Pub. L.
No. 101-380, 104 Stat. 484 (1990) (hereinafter called "OPA"); or any other
statute, law, ordinance, code or regulation of any Governmental Agency relating
to or imposing liability or standards of conduct concerning the use, production,
generation, treatment, storage, recycling, handling, transportation, release,
threatened release or disposal of any hazardous, dangerous or toxic waste,
substance or material, currently in effect or at any time hereafter adopted.
"Interest Payment Date" shall mean in the case of Base Rate Loans, the last
day of each calendar quarter, and in the case of LIBOR Loans with an Interest
Period of three (3) months or less, the last day of the applicable Interest
Period, and in the case of LIBOR Loans with an Interest Period of six (6)
months, the earlier of (i) the last day of each Interest Period or (ii) the last
day of each calendar quarter.
"Interest Period" shall mean with respect to any LIBOR Loan (i) initially,
the period commencing on the date such LIBOR Loan is made and ending one (1),
two (2), three (3), or six (6) months thereafter as selected by the Borrower
pursuant to Section 4(a)(ii), and (ii) thereafter, each period commencing on the
day following the last day of the next preceding Interest Period applicable to
such LIBOR Loan and ending one (1), two (2), three (3) or six (6) months
thereafter, as selected by the Borrower pursuant to Section 4(a)(ii); provided,
however, that (i) if any Interest Period would otherwise expire on a day which
is not a Business Day, such Interest Period shall expire on the next succeeding
Business Day unless the result of such extension would be to extend such
Interest Period into the next calendar month, in which case such Interest Period
shall end on the immediately preceding Business Day, (ii) if any Interest Period
begins on the last Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at the end of such
Interest Period) such Interest Period shall end on the last Business Day of a
calendar month, and (iii) any Interest Period which would otherwise expire after
the Maturity Date shall end on such Maturity Date.
"LIBOR Base Rate" shall mean the offered rate for the period equal to or
next greater than the Interest Period for U.S. dollar deposits of not less than
$1,000,000 as of 11:00 a.m., City of London, England time two (2) Business Days
prior to the first day of the Interest Period as shown on the display designate
as "British Bankers' Association Interest Settlement Rates" on Xxxxxx'x for the
purpose of displaying such rate. In the event that such rate is not available on
Xxxxxx'x then such offered rate shall be otherwise independently determined by
Agent from an alternate, substantially similar independent source available to
Agent or shall be calculated by Agent by substantially similar methodology as
that theretofore used to determine such offered rate.
"LIBOR Loan" means any loan during any period which bears interest at the
LIBOR Rate, or which would bear interest at such rate if the Maximum Rate
ceiling was not in effect at a particular time.
"LIBOR Margin" shall be:
(i) two and one-quarter percent (2.25%) per annum whenever Xxxxxx'x ratio
of Consolidated Funded Debt to Consolidated EBITDA is greater than
2.25 to 1.0: or
(ii) one and seven-eighths of one percent (1.875%) per annum whenever
Xxxxxx'x ratio of Consolidated Funded Debt to Consolidated EBITDA is
equal to or less than 2.25 to 1.0 but greater than 2.0 to 1.0; or
(iii) one and five-eighths percent (1.625%) per annum whenever Xxxxxx'x
ratio of Consolidated Funded Debt to Consolidated EBITDA is equal to
or less than 2.0 to 1.0 but greater than to 1.50 to 1.0; or
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(iv) one and one-quarter percent (1.25%) per annum whenever Xxxxxx'x ratio
of Consolidated Funded Debt to Consolidated EBITDA is equal to or
less than 1.50 to 1.0 but greater than 1.0 to 1.0; or
(v) one percent (1%) per annum whenever Xxxxxx'x ratio of Consolidated
Funded Debt to Consolidated EBITDA is equal to or less than 1.0 to
1.0.
For purposes of calculating the LIBOR Margin for each new or existing
Tranche, Xxxxxx'x (i) Consolidated Funded Debt shall fluctuate from day to
day, and (ii) Consolidated EBITDA shall be calculated quarterly as of the
end of each fiscal quarter and annualized. The LIBOR Margin shall be
recalculated by Agent from time to time and be effective upon (a) the
making of any Advance hereunder, (b) the receipt by the Banks of any
payment or prepayment or (c) receipt by Agent of the Borrower's quarterly
Certificate of Compliance provided by Borrower pursuant to Section 11(b)
hereof.
"LIBOR Rate" means, with respect to a LIBOR Loan for the relevant Interest
Period, the sum of (i) the quotient of (A) the LIBOR Base Rate applicable to
such Interest Period, divided by (B) one minus the Reserve Requirement
(expressed as a decimal) applicable to such Interest Period, plus the (ii) LIBOR
Margin. The LIBOR Rate shall be rounded to the next higher multiple of 1/16th of
one percent if the rate is not such a multiple.
"Lien" shall mean any mortgage, deed of trust, pledge, security interest,
assignment, encumbrance or lien (statutory or otherwise) of every kind and
character.
"Loan Documents" shall mean this Agreement, the Notes, the Security
Instruments and all other documents executed in connection with the transaction
described in this Agreement.
"Majority Banks" shall mean Banks holding 66-2/3% or more of the Revolving
Commitments.
"Material Adverse Effect" shall mean any circumstance or event which could
have a material adverse effect on (i) the assets or properties, liabilities,
financial condition, business, operations, or prospects of the Borrower and its
Subsidiaries, taken as a whole, or (ii) the ability of the Borrower and its
Subsidiaries, taken as a whole, to carry out its businesses as of the date of
this Agreement or as proposed at the date of this Agreement to be conducted, or
(iii) the ability of Borrower to meet its obligations under the Note, this
Agreement or the other Loan Documents on a timely basis, or (iv) the validity or
enforceability of any Loan Document against Borrower.
"Maturity Date" shall mean June 30, 2005.
"Maximum Rate" is used herein as defined in Section 21 hereof.
"Notes" shall mean the revolving notes substantially in the form of Exhibit
"B" hereto issued or to be issued hereunder to each Bank, respectively, to
evidence the indebtedness to such Bank arising by reason of the Advances on the
Revolving Loans, together with all modifications, renewals and extensions
thereof or any part thereof.
"Notice of Borrowing" is used herein as defined in Section 2(b) hereof.
"Other Financings" is used herein as defined in Section 14(l) hereof.
"Payor" is used herein as defined in Section 3(h) hereof.
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"Permitted Liens" shall mean (i) Liens for taxes, governmental charges,
levies or other assessments that are not yet delinquent (or that, if delinquent,
are being contested in good faith by appropriate proceedings, levy and execution
thereon having been stayed and continue to be stayed and for which Borrower has
set aside on its books adequate reserves in accordance with GAAP); (ii) maritime
(including, without limitation, Liens for insurance premiums or calls and Liens
arising under charters), materialmen's, mechanic's, repairmen's, employee's,
warehousemen's, landlord's, carrier's, contractor's, sub-contractor's and other
Liens (including any financing statements filed in respect thereof) incidental
to obligations incurred by Borrower in connection with the construction,
maintenance, transportation, storage or operation of Borrower's assets, Rigs or
properties to the extent not delinquent (or which, if delinquent, are being
contested in good faith by appropriate proceedings and for which Borrower has
set aside on its books adequate reserves in accordance with GAAP); (iii) all
contracts, agreements and instruments, any interest or title of a lessor or
charterer under any lease permitted by this Agreement and all defects and
irregularities and other matters affecting Borrower's assets and properties
which were in existence or arose at the time Borrower's assets and properties
were originally acquired by Borrower and all routine operational agreements
entered into in the ordinary course of business, which contracts, agreements,
instruments, defects, irregularities and other matters and routine operational
agreements are not such as to, individually or in the aggregate, interfere
materially with the operation, value or use of Borrower's assets and properties,
considered in the aggregate; (iv) liens in connection with workmen's
compensation, unemployment insurance or other social security, old age pension
or public liability obligations; (v) legal or equitable encumbrances deemed to
exist by reason of the existence of any litigation or other legal proceeding or
arising out of a judgment or award with respect to which an appeal is being
prosecuted in good faith and levy and execution thereon have been stayed and
continue to be stayed; (vi) Liens incurred pursuant to the Security Instruments;
and (vii) Liens existing at the date of this Agreement which have been disclosed
to Banks in Borrower's September 30, 1999 Financial Statements or identified in
Schedule "1" hereto and which are either released by the Effective Date or
consented to by the Banks.
"Person" shall mean an individual, a corporation, a partnership, an
association, a trust or any other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.
"Plan" shall mean any plan subject to Title IV of ERISA and maintained by
Borrower, or its Subsidiaries, or any such plan to which Borrower or its
Subsidiaries are required to contribute on behalf of its employees.
"Prime Rate" shall mean a rate per annum equal to the prime rate of
interest announced from time to time by Agent or its parent (which is not
necessarily the lowest rate of interest charged to any customer), changing when
and as said prime rate changes.
"Pro Rata or Pro Rata Part" shall mean for each Bank, (i) for all purposes
where no Revolving Loan is outstanding, such Bank's Revolving Commitment
Percentage and (ii) otherwise, the proportion which the portion of the
outstanding Revolving Loans owed to such Bank bears to the aggregate outstanding
Revolving Loans owed to all Banks at the time in question.
"Rate Management Transactions" shall mean any transaction (including an
agreement with respect thereto) now existing or hereafter entered into by either
Borrower which is a rate swap, basis swap, forward rate transaction, commodity
swap, commodity option, equity or equity index swap, equity or equity index
option, bond option, interest rate option, forward exchange transaction, cap
transaction, floor transaction, collar transaction, forward transaction,
currency swap transaction, cross-currency rate swap transaction, currency option
or any other similar transaction (including any option with respect to any of
these transactions) or any combination thereof, whether linked to one or more
interest rates, foreign currencies, commodity prices, equity prices or other
financial measures.
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"Regulation D" shall mean Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor thereto
and other regulation or official interpretation of said Board of Governors
relating to reserve requirements applicable to member banks of the Federal
Reserve System.
"Required Payment" is used herein as defined in Section 3(h) hereof.
"Reserve Requirement" means, with respect to any Interest Period, the
maximum aggregate reserve requirement (including all basic, supplemental,
marginal and other reserves) which is imposed under Regulation D on Eurocurrency
liabilities.
"Revolving Commitment" shall mean (A) for all Banks, $100,000,000 as
reduced from time to time pursuant to Section 2(c) and Section 2(f) hereof and
(B) as to any Bank, its obligation to make Advances hereunder on the Revolving
Loans in amounts not exceeding, in the aggregate, the amount set forth opposite
the name of such Bank on Schedule 8 or in its Assignment and Acceptance.
"Revolving Commitment Percentage" shall mean for each Bank the percentage
derived by dividing its Revolving Commitment at the time of determination by
Revolving Commitments of all Banks at the time of determination.
"Revolving Loans" shall mean loans made under the Revolving Commitment
pursuant to Section 2 hereof.
"Rigs" shall mean the XXXXXX FALCON, the VICKSBURG and any other offshore
drilling rigs acceptable to the Banks which may be mortgaged to the Banks by
Borrower from time to time.
"Security Instruments" shall mean this Agreement, the First Naval Mortgage,
the Assignments of Insurance, the Assignments of Charter Hire, Drilling
Contracts, Revenues and Earnings, the Guaranties and other collateral documents
covering all such documents to be in form and substance satisfactory to Agent.
"Subsidiary" shall mean any corporation or other entity of which securities
or other ownership interests having ordinary voting power to elect a majority of
the board of directors or other persons performing similar functions are at the
time directly or indirectly owned by Borrower or another subsidiary.
"Total Outstandings" shall mean as of any date, the total principal balance
outstanding on the Notes.
"Tranche" means a set of LIBOR Loans made by the Banks at the same time and
for the same Interest Period.
"Unused Commitment Fee Rate" shall be:
(i) one-half of one percent (.50%) per annum whenever Xxxxxx'x ratio of
Consolidated Funded Debt to Consolidated EBITDA is greater than 2.0 to
1.0: or
(ii) three-eighths of one percent (.375%) per annum whenever Xxxxxx'x ratio
of Consolidated Funded Debt to Consolidated EBITDA is equal to or less
than 2.0 to 1.0.
For the purpose of calculating the Unused Commitment Fee Rate, Xxxxxx'x (i)
Consolidated Funded Debt shall fluctuate from day to day, and (ii)
Consolidated EBITDA shall be calculated quarterly as of the end of each
fiscal quarter and annualized. The Unused Commitment Fee
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Rate shall be recalculated by Agent from time to time and be effective upon
(a) the making of any Advance hereunder, (b) the receipt by the Banks of
any payment or prepayment or (c) receipt by Agent of the Borrower's
quarterly Certificate of Compliance provided by Borrower pursuant to
Section 11(b) hereof.
2. COMMITMENTS OF THE BANK.
(a) Terms of Revolving Commitment. On the terms and conditions
hereinafter set forth, each Bank agrees severally to make Advances to
Borrower from time to time during the period beginning on the Effective
Date and ending on the Maturity Date in such amounts as Borrower may
request up to an amount not to exceed, in the aggregate principal amount
outstanding at any time, the Revolving Commitment. Subject to the terms
hereof, the Borrower may borrow, repay and reborrow hereunder. The
obligation of Borrower hereunder shall be evidenced by this Agreement and
the Note or Notes issued in connection herewith, said Note or Notes to be
as described in Section 3 hereof. Notwithstanding any other provision of
this Agreement, no Advance shall be required to be made hereunder if any
Default or Event of Default (as hereinafter defined) has occurred and is
continuing. Each Advance under the Revolving Commitment shall be an amount
of at least $1,000,000 or a whole number multiple thereof. Irrespective of
the face amount of the Note or Notes, the Banks shall never have the
obligation to Advance any amount or amounts in excess of the Revolving
Commitment or to increase the Revolving Commitment.
(b) Procedure for Borrowing. Whenever Borrower desires an Advance
hereunder, it shall give Agent telegraphic, telex, facsimile or telephonic
notice ("Notice of Borrowing") of such requested Advance, which in the case
of telephonic notice, shall be promptly confirmed in writing. Each Notice
of Borrowing shall be in the form of Exhibit "A" attached hereto and shall
be received by Agent not later than 11:00 a.m. Chicago, Illinois time, (i)
one Business Day prior to the date upon which any such Advance is requested
to be funded (the "Borrowing Date") in the case of the Base Rate Loan, or
(ii) three (3) Business Days prior to any proposed Borrowing Date in the
case of LIBOR Loans. Upon receipt of such Notice, Agent shall immediately
advise each Bank thereof; provided, that if the Banks have received at
least one (1) Business Day's notice of such Advance prior to funding of a
Base Rate Loan, or at least three (3) Business Days' notice of each Advance
prior to funding in the case of a LIBOR Loan, each Bank shall provide Agent
at its office at 1 Bank Xxx Xxxxx, 00xx Xxxxx, Xxxxxxx, Xxxxxxxx 00000, not
later than 1:00 p.m., Chicago, Illinois time, on the Borrowing Date, in
immediately available funds, its pro rata share of the requested Advance,
but the aggregate of all such fundings by each Bank shall never exceed such
Bank's Revolving Commitment. Not later than 2:00 p.m., Chicago, Illinois
time, on the Borrowing Date, Agent shall make available to Borrower at the
same office, in like funds, the aggregate amount of such requested Advance.
Neither Agent nor any Bank shall incur any liability to Borrower in acting
upon any Notice referred to above which Agent or such Bank believes in good
faith to have been given by a duly authorized officer or other person
authorized to borrow on behalf of Borrower or for otherwise acting in good
faith under this Section 2(b). Upon funding of Advances by Banks in
accordance with this Agreement, pursuant to any such Notice of Borrowing,
Borrower shall have effected Advances hereunder.
(c) Voluntary Reduction of Revolving Commitment. Borrower may at any
time, or from time to time, upon not less than three (3) Business Days
prior written notice to Agent, reduce or terminate the Revolving
Commitment; provided, however, that (i) each reduction in the Revolving
Commitment must be in the amount of at least $1,000,000 or in increments of
$1,000,000 and (ii) each reduction must be accompanied by a prepayment of
the Notes in the amount by which the outstanding principal balance of the
Notes exceeds the Revolving Commitment as reduced pursuant to this Section
2(c).
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(d) Type and Number of Advances. Any Advance under the Revolving
Commitment may be a Base Rate Loan or a LIBOR Loan, or any combination
thereof, as selected by Borrower pursuant to Section 4 hereof. The total
number of LIBOR Loans that may be outstanding at any time may never exceed
six (6).
(e) Status of Obligations. The obligations of the Banks under the
Revolving Commitment are several and not joint. The failure of any Bank to
make an Advance required to be made by it shall not relieve any other Bank
of its obligation to make its Advance, and no Bank shall be responsible for
the failure of any other Bank to make the Advance to be made by such other
Bank.
(f) Mandatory Reduction of Revolving Commitment. Notwithstanding
anything to the contrary herein, (i) on December 31, 2003, the Revolving
Commitment shall be reduced to $85,714,285, and (ii) on December 31, 2004,
the Revolving Commitment shall automatically be reduced to $71,428,570.
Provided, however, that if on either such date, the then outstanding
principal balance of the Notes exceeds the Revolving Commitment, as reduced
pursuant to this Section 2(f), then, in such event, the Borrower shall
immediately prepay to the Agent for the pro rata benefit of the Banks, an
amount equal to such excess.
3. NOTES EVIDENCING LOANS. The loans described above in Section 2 shall
be evidenced by notes of the Borrower as follows:
(a) Form of Notes. The Revolving Loans shall be evidenced by Notes in
the aggregate face amount of $100,000,000, and shall be in the form of
Exhibit "B" hereto with appropriate insertions. Notwithstanding the face
amount of the Notes, the actual principal amount due from Borrower to Banks
on account of the Notes, as of any date of computation, shall be the sum of
Advances then and theretofore made on account thereof, plus outstanding
Reimbursement Obligations less all principal payments actually received by
Banks in collected funds with respect thereto. Although the Notes may be
dated as of the Effective Date, interest in respect thereof shall be
payable only for the period during which the loans evidenced thereby are
outstanding and, although the stated amount of the Notes may be higher, the
Notes shall be enforceable, with respect to Borrower's obligation to pay
the principal amount thereof, only to the extent of the unpaid principal
amount of the loans.
(b) Issuance of Additional Notes. At the Effective Date there shall
be outstanding Notes in the aggregate face amount of $100,000,000 payable
to the order of the Banks for each such Bank's Pro Rata Part of the
Revolving Commitment. From time to time new Notes may be issued to other
Banks as such Banks become parties to this Agreement. Upon request from
Agent, Borrower shall execute and deliver to Agent any such new or
additional Notes. From time to time as new Notes are issued the Agent shall
require that each Bank exchange their Notes for newly issued Notes to
reflect the extent of each Bank's Revolving Commitments hereunder.
(c) Interest Rates. The unpaid principal balance of all outstanding
Advances under the Notes shall bear interest from time to time as set forth
in Section 4 hereof.
(d) Payment of Interest. Interest on the Notes shall be payable to
the Agent for the ratable benefit of the Banks on each Interest Payment
Date.
(e) Payment of Principal. Principal of the Notes shall be due and
payable to the Agent for the ratable benefit of the Banks on the Maturity
Date unless earlier due in whole or in part as a result
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of an acceleration of the amount due or pursuant to the mandatory
prepayment provisions of Sections 8(b) hereof.
(f) Payment to Banks. Each Bank's Pro Rata Part of payment or
prepayment of the Revolving Loans shall be directed by wire transfer to
such Bank by the Agent at the address provided to the Agent for such Bank
for payments no later than 2:00 p.m., Chicago, Illinois, time on the
Business Day such payments or prepayments are deemed hereunder to have been
received by Agent; provided, however, in the event that any Bank shall have
failed to make an Advance as contemplated under Section 2 hereof (a
"Defaulting Bank") and the Agent or another Bank or Banks shall have made
such Advance, payment received by Agent for the account of such Defaulting
Bank or Banks shall not be distributed to such Defaulting Bank or Banks
until such Advance or Advances shall have been repaid in full to the Bank
or Banks who funded such Advance or Advances. Any payment or prepayment
received by Agent at any time after 12:00 noon, Chicago, Illinois, time on
a Business Day shall be deemed to have been received on the next Business
Day. Interest shall cease to accrue on any principal as of the end of the
day preceding the Business Day on which any such payment or prepayment is
deemed hereunder to have been received by Agent. Payment by the Borrower of
any principal, interest or other fees or expenses due hereunder to the
Agent shall extinguish the obligations of Borrower to each Bank for such
principal, interest or other fees or expenses actually paid.
(g) Sharing of Payments, Etc. If any Bank shall obtain any payment
(whether voluntary, involuntary, or otherwise) on account of the Revolving
Loans, (including, without limitation, any set-off) which is in excess of
its Pro Rata Part of payments on the Revolving Loans such Bank shall
purchase from the other Banks such participation as shall be necessary to
cause such purchasing Bank to share the excess payment pro rata with each
of them; provided that, if all or any portion of such excess payment is
thereafter recovered from such purchasing Bank, the purchase shall be
rescinded and the purchase price restored to the extent of the recovery.
Borrower agrees that any Bank so purchasing a participation from another
Bank pursuant to this Section may, to the fullest extent permitted by law,
exercise all of its rights of payment (including the right of offset) with
respect to such participation as fully as if such Bank were the direct
creditor of Borrower in the amount of such participation.
(h) Non-Receipt of Funds by the Agent. Unless the Agent shall have
been notified by a Bank or Borrower (the "Payor") prior to the date on
which such Bank is to make payment to the Agent of the proceeds of a
Revolving Loans to be made by it hereunder or Borrower is to make a payment
to the Agent for the account of one or more of the Banks, as the case may
be (such payment being herein called the "Required Payment"), which notice
shall be effective upon receipt, that the Payor does not intend to make the
Required Payment to the Agent, the Agent may assume that the Required
Payment has been made and may, in reliance upon such assumption (but shall
not be required to), make the amount thereof available to the intended
recipient on such date and, if the Payor has not in fact made the Required
Payment to the Agent, the recipient of such payment shall, on demand, pay
to the Agent the amount made available to it together with interest thereon
in respect of the period commencing on the date such amount was made
available by the Agent until the date the Agent recovers such amount at the
rate applicable to such portion of the applicable Revolving Loan.
4. INTEREST RATES.
(a) Options.
(i) Base Rate Loans. On all Base Rate Loans, the Borrower agrees
to pay interest on the Revolving Loans calculated on the basis of the
actual days elapsed in a year consisting of 365 or, if appropriate 366
days, with respect to the unpaid principal amount of
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each Base Rate Loan from the date the proceeds thereof are made
available to Borrower until maturity (whether by acceleration or
otherwise), at a varying rate per annum equal to the lesser of (i) the
Maximum Rate (defined herein), or (ii) the Base Rate. Subject to the
provisions of this Agreement as to prepayment, the principal of the
Notes representing Base Rate Loans shall be payable as specified in
Section 3(e) hereof and the interest in respect of each Base Rate Loan
shall be payable on each Interest Payment Date. Past due principal
and, to the extent permitted by law, past due interest in respect to
each Base Rate Loan, shall bear interest, payable on demand, at a rate
per annum equal to the Default Rate.
(ii) LIBOR Loans. On all LIBOR Loans, the Borrower agrees to pay
interest calculated on the basis of a year consisting of 360 days with
respect to the unpaid principal amount of each LIBOR Loan from the
date the proceeds thereof are made available to Borrower until
maturity (whether by acceleration or otherwise), at a varying rate per
annum equal to the lesser of (i) the Maximum Rate, or (ii) the LIBOR
Rate. Subject to the provisions of this Agreement with respect to
prepayment, the principal of the Notes shall be payable as specified
in Section 3(e) hereof and the interest with respect to each LIBOR
Loan shall be payable on each Interest Payment Date. Past due
principal and, to the extent permitted by law, past due interest shall
bear interest, payable on demand, at a rate per annum equal to the
Default Rate. Upon three (3) Business Days' written notice prior to
the making by the Banks of any LIBOR Loan (in the case of the initial
Interest Period therefor) or the expiration date of each succeeding
Interest Period (in the case of subsequent Interest Periods therefor),
Borrower shall have the option, subject to compliance by Borrower with
all of the provisions of this Agreement, as long as no Event of
Default exists, to specify whether the Interest Period commencing on
any such date shall be a one (1), two (2), three (3) or six (6) month
period. If Agent shall not have received timely notice of a
designation of such Interest Period as herein provided, Borrower shall
be deemed to have elected to convert all maturing LIBOR Loans to Base
Rate Loans.
(b) Interest Rate Determination. The Agent shall determine each
interest rate applicable to the Revolving Loans hereunder pursuant to the
terms of this Agreement. The Agent shall give prompt notice to Borrower of
each rate of interest so determined and its determination thereof shall be
conclusive absent error.
(c) Conversion Option. Borrower may elect from time to time (i) to
convert all or any part of its LIBOR Loans to Base Rate Loans by giving
Agent irrevocable notice of such election in writing prior to 10:00 a.m.
(Chicago, Illinois time) on the conversion date and such conversion shall
be made on the requested conversion date, provided that any such conversion
of LIBOR Loan shall only be made on the last day of the Interest Period
with respect thereof, (ii) to convert all or any part of its Base Rate
Loans to LIBOR Loans by giving the Agent irrevocable written notice of such
election three (3) Business Days prior to the proposed conversion and such
conversion shall be made on the requested conversion date or, if such
requested conversion date is not a Business Day, on the next succeeding
Business Day. Any such conversion shall not be deemed to be a prepayment of
any of the loans for purposes of this Agreement on the Notes.
(d) Recoupment. If at any time the applicable rate of interest
selected pursuant to Sections 4(a)(i) or 4(a)(ii) above shall exceed the
Maximum Rate, thereby causing the interest on the Notes to be limited to
the Maximum Rate, then any subsequent reduction in the interest rate so
selected or subsequently selected shall not reduce the rate of interest on
the Notes below the Maximum Rate until the total amount of interest accrued
on the Note equals the amount of interest which would have
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accrued on the Notes if the rate or rates selected pursuant to Sections
4(a)(i) or (ii), as the case may be, had at all times been in effect.
5. SPECIAL PROVISIONS RELATING TO LOANS.
(a) Unavailability of Funds or Inadequacy of Pricing. In the event
that, in connection with any proposed LIBOR Loan, the Agent reasonably
determines, which determination shall, absent manifest error, be final,
conclusive and binding upon all parties, due to changes in circumstances
since the date hereof, adequate and fair means do not exist for determining
the LIBOR Rate or such rate will not accurately reflect the costs to the
Banks of funding LIBOR Loans for such Interest Period, the Agent shall give
notice of such determination to the Borrower and the Banks, whereupon,
until the Agent notifies the Borrower and the Banks that the circumstances
giving rise to such suspension no longer exist, the obligations of the
Banks to make, continue, or convert Loans into LIBOR Loans shall be
suspended, and all loans to Borrower shall be Base Rate Loans during the
period of suspension.
(b) Change in Laws. If at any time any new law or any change in
existing laws or in the interpretation of any new or existing laws shall
make it unlawful for any Bank to make or continue to maintain or fund LIBOR
Loans hereunder, then such Bank shall promptly notify Borrower in writing
and such Bank's obligation to make, continue, or convert Loans into, LIBOR
Loans under this Agreement shall be suspended until it is no longer
unlawful for such Bank to make or maintain LIBOR Loans. Upon receipt of
such notice, Borrower shall either repay the outstanding LIBOR Loans owed
to the Banks, without penalty, on the last day of the current Interest
Periods (or, if any Bank may not lawfully continue to maintain and fund
such LIBOR Loans, immediately), or Borrower may convert such LIBOR Loans at
such appropriate time to Base Rate Loans.
(c) Increased Cost or Reduced Return.
If, after the date hereof, the adoption of any applicable law, rule,
or regulation, or any change in any applicable law, rule, or regulation, or
any change in the interpretation or administration thereof by any
governmental authority, central bank, or comparable agency charged with the
interpretation or administration thereof, or compliance by any Bank with
any request or directive (whether or not having the force of law) of any
such governmental authority, central bank, or comparable agency:
(A) shall subject such Bank to any tax, duty, or other charge
with respect to any LIBOR Loan, its Notes, or its obligation to make
LIBOR Loans, or change the basis of taxation of any amounts payable to
such Bank under this Agreement or its Notes in respect of any LIBOR
Loan (other than franchise taxes and taxes imposed on the overall net
income of such Bank);
(B) shall impose, modify, or deem applicable any reserve,
special deposit, assessment, or similar requirement (other than
reserve requirements, if any, taken into account in the determination
of the LIBOR Rate) relating to any extensions of credit or other
assets of, or any deposits with or other liabilities or commitments
of, such Bank, including the Commitment of such Bank hereunder; or
(C) shall impose on such Bank or on the London interbank market
any other condition affecting this Agreement or its Notes or any of
such extensions of credit or liabilities or commitments;
-15-
and the result of any of the foregoing is to increase the cost to such Bank
of making, converting into, continuing, or maintaining any LIBOR Loan or to
reduce any sum received or receivable by such Bank under this Agreement or
its Notes with respect to any LIBOR Loan, then Borrower shall pay to such
Bank on demand such amount or amounts as will reasonably compensate such
Bank for such increased cost or reduction.
If, after the date hereof, any Bank shall have determined that the
adoption of any applicable law, rule, or regulation regarding capital
adequacy or any change therein or in the interpretation or administration
thereof by any governmental authority, central bank, or comparable agency
charged with the interpretation or administration thereof, or any request
or directive regarding capital adequacy (whether or not having the force of
law) of any such governmental authority, central bank, or comparable
agency, has or would have the effect of reducing the rate of return on the
capital of such Bank or any corporation controlling such Bank as a
consequence of such Bank's obligations hereunder to a level below that
which such Bank or such corporation could have achieved but for such
adoption, change, request, or directive (taking into consideration its
policies with respect to capital adequacy), then from time to time upon
demand Borrower shall pay to such Bank such additional amount or amounts as
will reasonably compensate such Bank for such reduction.
Each Bank shall promptly notify Borrower and Agent of any event of
which it has knowledge, occurring after the date hereof, which will entitle
such Bank to compensation pursuant to this Section 5(c) and will designate
a separate lending office, if applicable, if such designation will avoid
the need for, or reduce the amount of, such compensation and will not, in
the judgment of such Bank, be otherwise disadvantageous to it. Any Bank
claiming compensation under this Section 5(c) shall furnish to Borrower and
Agent a statement setting forth the additional amount or amounts to be paid
to it hereunder which shall be conclusive in the absence of manifest error.
In determining such amount, such Bank may use any reasonable averaging and
attribution methods.
Any Bank giving notice to the Borrower through the Agent, pursuant to
Section 5(c) shall give to the Borrower a statement signed by an officer of
such Bank setting forth in reasonable detail the basis for, and the
calculation of such additional cost, reduced payments or capital
requirements, as the case may be, and the additional amounts required to
compensate such Bank therefor.
Within five (5) Business Days after receipt by the Borrower of any
notice referred to in Section 5(c), the Borrower shall pay to the Agent for
the account of the Bank issuing such notice such additional amounts as are
required to compensate such Bank for the increased cost, reduce payments or
increase capital requirements identified therein, as the case may be. If
any Bank requests compensation by Borrower under this Section 5(c),
Borrower may, by notice to such Bank (with a copy to Agent), suspend the
obligation of such Bank to make or continue LIBOR Loans, or to convert all
or part of the Base Rate Loans owing to such Bank to LIBOR Loans, until the
event or condition giving rise to such request ceases to be in effect (in
which case the provisions of Section 5(c) shall be applicable); provided
that such suspension shall not affect the right of such Bank to receive the
compensation so requested.
(d) Discretion of Bank as to Manner of Funding. Notwithstanding any
provisions of this Agreement to the contrary, each Bank shall be entitled
to fund and maintain its funding of all or any part of its Loan in any
manner it sees fit, it being understood, however, that for the purposes of
this Agreement all determinations hereunder shall be made as if each Bank
had actually funded and maintained each LIBOR Loan through the purchase of
deposits having a maturity corresponding to the last day of the Interest
Period applicable to such LIBOR Loan and bearing an interest rate to the
applicable interest rate for such LIBOR Period.
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(e) Breakage Fees. Without duplication under any other provision
hereof, if any Bank incurs any loss, cost or expense including, without
limitation, any loss of profit and loss, cost, expense or premium
reasonably incurred by reason of the liquidation or re-employment of
deposits or other funds acquired by such Bank to fund or maintain any LIBOR
Loan or the relending or reinvesting of such deposits or amounts paid or
prepaid to the Banks as a result of any of the following events other than
any such occurrence as a result in the change of circumstances described in
Sections 5(a) and (b):
(i) any payment, prepayment or conversion of a LIBOR Loan on a
date other than the last day of its Interest Period
(whether by acceleration, prepayment or otherwise);
(ii) any failure to make a principal payment of a LIBOR Loan on
the due date thereof; or
(iii) (any failure by the Borrower to borrow, continue, prepay or
convert to a LIBOR Loan on the dates specified in a notice
given pursuant to Section 2(b) or 4(c) hereof;
then the Borrower shall pay to such Bank such amount as will reimburse such
Bank for such loss, cost or expense. If any Bank makes such a claim for
compensation, it shall furnish to Borrower and Agent a statement setting
forth the amount of such loss, cost or expense in reasonable detail
(including an explanation of the basis for and the computation of such
loss, cost or expense) and the amounts shown on such statement shall be
conclusive and binding absent manifest error.
6. COLLATERAL SECURITY. To secure the performance by Borrower and the
Guarantors of their obligations hereunder, and under the Note and Security
Instruments, whether now or hereafter incurred, matured or unmatured, direct or
contingent, joint or several, or joint and several, including extensions,
modifications, renewals and increases thereof, and substitutions therefore,
Borrower and the Guarantors shall contemporaneously with or prior to the
execution of this Agreement and the Notes, grant and assign to Agent for the
ratable benefit of the Banks a first and prior Lien on the Rigs, together with
an assignment of the insurance covering such Rigs, the charter hire, drilling
contract earnings and revenues of the Rigs. All agreements and obligations
arising out of Rate Management Transactions between Borrower and the Banks or
their Affiliates shall be secured by the Collateral and paid on a pari passu
basis with the indebtedness and obligations of Borrower under this Agreement and
the other Loan Documents. The Rigs and other collateral in which Borrower and
the Guarantors have herewith granted or hereafter grant to Agent for the ratable
benefit of the Banks a first and prior Lien (to the satisfaction of the Agent)
in accordance with this Section 6, as such properties and interests are from
time to time constituted, are hereinafter collectively called the "Collateral."
The granting and assigning of such security interests and Liens by Borrower and
the Guarantors shall be pursuant to Security Instruments in form and substance
reasonably satisfactory to the Agent. Borrower and the Guarantors will cause to
be executed and delivered to the Agent, in the future, additional Security
Instruments if the Agent reasonably deems such are necessary to insure
perfection or maintenance of Banks' Liens in the Collateral or any part thereof.
In addition to the granting of the first and prior Liens referred to above,
Borrower shall also (i) grant to the Banks a negative pledge on all of its other
assets and (ii) provide the Guaranties.
7. FEES.
(a) Unused Fee. Borrower shall pay to Agent for the ratable benefit
of the Banks an unused commitment fee (the "Unused Commitment Fee")
equivalent to the Unused Commitment Fee Rate times the daily average of the
unadvanced portion of the Revolving Commitment. The Unused
-17-
Commitment Fee shall be payable in arrears on the last Business Day of each
calendar quarter beginning March 29, 2002 with the final fee payment due on
the Maturity Date for any period then ending for which the Unused
Commitment Fee shall not have been theretofore paid. In the event the
Revolving Commitment terminates on any date prior to the end of any such
monthly period, Borrower shall pay to the Agent for the ratable benefit of
the Banks, on the date of such termination, the total Unused Commitment Fee
due for the period in which such termination occurs.
(b) Agency Fees. Borrower shall pay to the Agent certain fees for
acting as Agent hereunder in the amounts previously agreed between Borrower
and the Agent.
8. PREPAYMENTS.
(a) Voluntary Prepayments. Subject to the provisions of Section 5(e)
hereof, the Borrower may at any time and from time to time, without penalty
or premium, prepay the Notes, in whole or in part. Each such prepayment
shall be made on at least three (3) Business Days' notice to Agent in the
case of LIBOR Loan Tranches and on one (1) Business Day's notice in the
case of Base Rate Loans and shall be in a minimum amount of (i) $500,000 or
any integral multiples thereof (or the unpaid balance of the Notes,
whichever is less), for Base Rate Loans, plus accrued interest thereon and
(ii) $1,000,000 or any integral multiples thereof (or the unpaid balance on
the Notes, whichever is less) for LIBOR Loans, plus accrued interest
thereon to the date of prepayment.
(b) Mandatory Prepayment. In the event the Total Outstandings ever
exceed the Revolving Commitment, the Borrower shall immediately prepay,
without premium or penalty, subject to the provisions of Section 5(e)
hereof with respect to LIBOR Loans, the principal amount of the Notes in an
amount at least equal to such excess plus accrued but unpaid interest
thereon to the date of such prepayment.
9. REPRESENTATIONS AND WARRANTIES. In order to induce the Banks to enter
into this Agreement, Borrower hereby represents and warrants to the Banks (which
representations and warranties will survive the delivery of the Notes) that:
(a) Creation and Existence. Borrower is a company duly organized,
validly existing and in good standing under the laws of the jurisdiction in
which it was formed and is duly qualified in all jurisdictions wherein
failure to qualify may result in a Material Adverse Effect. Xxxxxx and
Australia are corporations duly organized, validly existing and in good
standing under the laws of the jurisdiction in which they were each formed
and are duly qualified in all jurisdictions wherein failure to qualify may
result in a Material Adverse Effect. Deep Seas is a limited partnership
duly formed, validly existing and in good standing under the laws of the
state of its formation and is duly qualified in all jurisdictions wherein
failure to qualify may result in a Material Adverse Effect. The Borrower
and the Guarantors each have all power and authority to own their
respective properties and assets and to transact the business in which it
is engaged.
(b) Power and Authority. Borrower is duly authorized and empowered to
create and issue the Notes; and Borrower is duly authorized and empowered
to execute, deliver and perform its obligations under the Loan Documents to
which it is a party, including this Agreement; and all corporate action on
Borrower's part requisite for the due creation and issuance of the Notes
and on Borrower's part requisite for the due execution, delivery and
performance of the Loan Documents, including this Agreement, has been duly
and effectively taken. Each Guarantor is duly authorized and empowered to
execute, deliver and perform its obligations under the Loan Documents to
which it is a party, including this Agreement and its Guaranty; all
corporate action on each Guarantor's part requisite
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for the due execution, delivery and performance of the Loan Documents to
which it is a party, including this Agreement and the Guaranty, has been
duly and effectively taken.
(c) Binding Obligations. This Agreement does, and the Notes and other
Loan Documents upon their creation, issuance, execution and delivery will,
constitute valid and binding obligations of Borrower, enforceable in
accordance with its respective terms (except that enforcement may be
subject to any applicable bankruptcy, insolvency, or similar debtor relief
laws now or hereafter in effect and relating to or affecting the
enforcement of creditors rights generally). This Agreement does and the
Guaranty and other Loan Documents upon its creation, issuance, execution
and delivery will, constitute valid and binding obligations of each
Guarantor enforceable in accordance with its respective terms (except that
enforcement may be subject to any applicable bankruptcy, insolvency, or
similar debtor relief laws now or hereafter in effect and relating to or
affecting the enforcement of creditors rights generally).
(d) No Legal Bar or Resultant Lien. The Notes and the Loan Documents,
including this Agreement and the Guaranties, do not and will not, to the
best of Borrower's and each Guarantor's knowledge, violate any provisions
of any material contract, agreement, law, regulation, order, injunction,
judgment, decree or writ to which Borrower or either Guarantor is subject,
or result in the creation or imposition of any lien or other encumbrance
upon any assets or properties of Borrower or either Guarantor, other than
those contemplated by this Agreement.
(e) No Consent. Neither the execution, delivery and performance by
Borrower of the Notes and the Loan Documents, including this Agreement nor
the execution, delivery and performance by the Guarantors of this Agreement
and the Guaranties, requires the consent or approval of any other person or
entity, including without limitation any regulatory authority or
governmental body of the United States or any state thereof or any
political subdivision of the United States or any state thereof.
(f) Financial Condition. The audited Financial Statements of Xxxxxx
dated September 30, 2001, which have been delivered to the Agent are
complete and correct in all material respects, and fairly and accurately
reflect in all material respects the financial condition and results of the
operations of Xxxxxx as of the date or dates and for the period or periods
stated. No change has since occurred in the condition, financial or
otherwise, of Borrower which is reasonably expected to have a Material
Adverse Effect, except as disclosed to the Banks in Schedule "2" attached
hereto.
(g) Liabilities. Neither Borrower nor any Subsidiary has any material
(individually or in the aggregate) liability, direct or contingent, except
as disclosed to the Banks in the Financial Statements and on Schedule "3"
attached hereto. No unusual or unduly burdensome restrictions, restraint,
or hazard exists by contract, law or governmental regulation or otherwise
relative to the business, assets or properties of Borrower or any
Subsidiary which is reasonably expected to have a Material Adverse Effect.
(h) Litigation. Except as described in the Financial Statements, or
as otherwise disclosed to the Banks in Schedule "4" attached hereto, there
is no litigation, legal or administrative proceeding, investigation or
other action of any nature pending or, to the knowledge of the officers of
Borrower or any Subsidiary threatened against or affecting Borrower or any
Subsidiary which involves the possibility of any judgment or liability not
fully covered by insurance, and which is reasonably expected to have a
Material Adverse Effect.
(i) Taxes; Governmental Charges. Borrower and each of its
Subsidiaries have filed all tax returns and reports required to be filed
and has paid all taxes, assessments, fees and other
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governmental charges levied upon it or its assets, properties or income
which are due and payable, including interest and penalties, the failure of
which to pay could reasonably be expected to have a Material Adverse
Effect, except such as are being contested in good faith by appropriate
proceedings and for which adequate reserves for the payment thereof as
required by GAAP has been provided and levy and execution thereon have been
stayed and continue to be stayed.
(j) Titles, Etc. Borrower and each of its Subsidiaries have good and
defensible title to all of their respective assets, including without
limitation, the Rigs, free and clear of all liens or other encumbrances
except Permitted Liens.
(k) Defaults. Neither Borrower nor any Subsidiary is in default and
no event or circumstance has occurred which, but for the passage of time or
the giving of notice, or both, would constitute a default under any loan or
credit agreement, indenture, mortgage, deed of trust, security agreement or
other agreement or instrument to which Borrower or any Subsidiary are a
party in any respect that would be reasonably expected to have a Material
Adverse Effect. No Event of Default hereunder has occurred and is
continuing.
(l) Casualties; Taking of Properties. Since the dates of the latest
Consolidated Financial Statements of Xxxxxx delivered to Banks, neither the
business nor the assets or properties of Borrower or any Subsidiary have
been affected (to the extent it is reasonably likely to cause a Material
Adverse Effect) as a result of any fire, explosion, earthquake, flood,
drought, windstorm, accident, strike or other labor disturbance, embargo,
requisition or taking of property or cancellation of contracts, permits or
concessions by any domestic or foreign government or any agency thereof,
riot, activities of armed forces or acts of God or of any public enemy.
(m) Use of Proceeds; Margin Stock. The availability under the
Revolving Commitment will be used by Borrower for general corporate
purposes other than hostile acquisitions including, but not limited to, the
purchase of offshore drilling rigs and the stock and/or assets of companies
which own or operate offshore rigs. Borrower is not engaged principally or
as one of its important activities in the business of extending credit for
the purpose of purchasing or carrying any "margin stock" as defined in
Regulation U of the Board of Governors of the Federal Reserve System (12
C.F.R. Part 221), or for the purpose of reducing or retiring any
indebtedness which was originally incurred to purchase or carry a margin
stock or for any other purpose which might constitute this transaction a
"purpose credit" within the meaning of said Regulation U.
Neither Borrower nor any person or entity acting on behalf of Borrower has
taken or will take any action which might cause the loans hereunder or any
of the Loan Documents, including this Agreement, to violate Regulation U or
any other regulation of the Board of Governors of the Federal Reserve
System or to violate the Securities Exchange Act of 1934 or any rule or
regulation thereunder, in each case as now in effect or as the same may
hereafter be in effect.
(n) Location of Business and Offices. The principal place of business
and chief executive offices of Borrower is located at the address stated in
Section 16 hereof.
(o) Compliance with the Law. To the best of Borrower's knowledge,
neither Borrower nor any Subsidiary:
(i) is in violation of any law, judgment, decree, order,
ordinance, or governmental rule or regulation to which Borrower, or
any of its assets or properties are subject; or
-20-
(ii) has failed to obtain any license, permit, franchise or other
governmental authorization necessary to the ownership of any of its
assets or properties or the conduct of its business;
which violation or failure is reasonably expected to have a Material
Adverse Effect.
(p) No Material Misstatements. No information, exhibit or report
furnished by Borrower to the Banks in connection with the negotiation of
this Agreement contained any material misstatement of fact or omitted to
state a material fact or any fact necessary to make the statement contained
therein not materially misleading.
(q) ERISA. Borrower and each Subsidiary is in compliance in all
material respects with the applicable provisions of ERISA, and no
"reportable event", as such term is defined in Section 403 of ERISA, has
occurred with respect to any Plan of Borrower.
(r) Public Utility Holding Company Act. Borrower is not a "holding
company", or "subsidiary company" of a "holding company", or an "affiliate"
of a "holding company" or of a "subsidiary company" of a "holding company",
or a "public utility" within the meaning of the Public Utility Holding
Company Act of 1935, as amended.
(s) Environmental Matters.
The Borrower and each Guarantor has duly complied in all material
respects with, and the Rigs and other properties and operations are in
compliance in all material respects with, the provisions of all applicable
environmental, health and safety laws, codes and ordinances and all rules
and regulations promulgated thereunder of all Governmental Authorities
unless such compliance would violate the laws or regulations of the
jurisdiction in which the Rigs is operating.
As of the date of this Agreement, except as disclosed to the Agent in
writing or Schedule "6" hereto, neither the Borrower nor any Guarantor has
received notice from any Governmental Authority, and has no knowledge, of
any fact(s) which constitute a violation of any applicable environmental,
health or safety laws, codes or ordinances, and any rules or regulations
promulgated thereunder of all Governmental Authorities, which relate to the
use or ownership of the Rigs or other properties owned or operated by the
Borrower or any Guarantor.
The Borrower and each Guarantor have been issued all required permits,
licenses, certificates and approvals of all Governmental Authorities
relating to (i) air emissions, (ii) discharges to surface water or ground
water, (iii) noise emissions, (iv) solid or liquid waste disposal, (v) the
use, operation, storage, transportation, treatment, recycling or disposal
of Hazardous Substances or (vi) other environmental, health or safety
matters necessary for the ownership or operation of the Rigs or other
properties owned or operated by the Borrower or any Guarantor and such
permits, licenses, certificates and approvals are in full force and effect
on the date of this Agreement.
Except as disclosed to the Agent in writing or Schedule "6" hereto, to
the best of the Borrower's and each Guarantor's knowledge, except in
accordance with a valid governmental permit, license, certificate or
approval, there has been no spill or unauthorized discharge or release of
any Hazardous Substance to the environment at, from, or as a result of any
operations on the Rigs or other properties and operations owned or operated
by the Borrower or any Guarantor required to be reported to any
Governmental Authority.
-21-
Except as disclosed to the Agent in writing or Schedule "6" hereto,
there has been no material complaint, compliance order, compliance
schedule, notice letter, notice of citation or other similar notice from
any environmental agency which concerns the operations of the Rigs or other
properties owned or operated by the Borrower or any Guarantor.
(t) Liens. Except (i) as disclosed on Schedule "1" hereto and (ii)
for Permitted Liens, the assets and properties of Borrower are free and
clear of all liens and encumbrances.
(u) Subsidiaries. All of Borrower's Subsidiaries are listed on
Schedule "5" hereto.
10. CONDITIONS OF LENDING.
(a) The effectiveness of this Agreement, and the obligation to make
the initial Advance under the Revolving Commitment shall be subject to
satisfaction of the following conditions precedent:
(i) Execution and Delivery. Borrower shall have executed and
delivered the Agreement, the Notes, the Amendment to First Naval
Mortgage, the Assignments of Insurance, the Assignments of Charter
Hire, Drilling Contracts and Revenue and Earnings and other required
documents, all in form and substance satisfactory to the Agent;
(ii) Guarantors' Execution and Delivery. The Guarantors shall
have executed and delivered to Agent this Agreement, their respective
Guaranties, the Amendment to First Naval Mortgage, the First Ship
Mortgage, the Assignments of Insurance, the Assignments of Charter
Hire, Drilling Contracts and Revenues and Earnings, the Restated
Pledge Agreement for Stock and the Restated Pledge Agreements for
Notes and other required documents, all in form and substance
satisfactory to Agent;
(iii) Legal Opinion. The Agent and the Banks shall have received
from Borrower's U.S., Cayman, Panamanian and Australian legal counsel
a favorable legal opinion in form and substance satisfactory to Agent;
(iv) Corporate Resolutions. The Agent shall have received
appropriate certified corporate resolutions of the Borrower, Xxxxxx,
Australia and the general partner of Deep Seas;
(v) Good Standing. The Agent shall have received evidence of
existence and good standing for Borrower and the Guarantors;
(vi) Incumbency. The Agent shall have received a signed
certificate of Borrower and each Guarantor certifying the names of the
officers of Borrower and the Guarantors (or, in the case of Deep Seas,
its general partner) authorized to sign loan documents on behalf of
Borrower and the Guarantors, together with the true signatures of each
such officer. The Agent may conclusively rely on such certificate
until the Agent receives a further certificate of Borrower or the
Guarantors canceling or amending the prior certificate and submitting
signatures of the officers, named in such further certificate;
(vii) Memorandum and Articles of Association. The Agent shall
have received copies of any amendment to the Memorandum and Articles
of Association of Borrower, certified by the appropriate Governmental
Authority of the jurisdiction of its incorporation,
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and a copy of any amendment to the bylaws, if any, of Borrower
certified by Borrower as being true, correct and complete;
(viii) Confirmation of Class. The Agent shall have received
satisfactory confirmation of class certificate for the Rigs from the
American Bureau of Shipping dated within thirty (30) days of the
Effective Date showing the Rigs to be classified as Maltese Cross A1
Column Stabilized Drilling Units dated within thirty (30) days of the
Effective Date;
(ix) Payment of Fees. The Agent shall have received payment in
full of all fees due at the Effective Date;
(x) Insurance. Agent shall have received copies of all of
Borrower's and Australia's insurance on the Rigs, including but not
limited to hull and machinery insurance, protection and indemnity
insurance and pollution insurance, all in form and substance
satisfactory to the Agent and its insurance consultant;
(xi) Appraisal. The Agent shall have received an initial desk top
appraisal of the Rigs prepared by an independent appraisal firm or
offshore drilling rig brokerage firm acceptable to the Agent, said
appraisal to be satisfactory to the Agent, provided, however, the Rigs
shall have an appraised fair market value of at least $150,000,000 and
an orderly liquidation appraisal value of at least $121,000,000;
(xii) Mortgages. The Agent shall have received evidence of the
filing of (A) the First Naval Mortgage with the appropriate
authorities in the necessary filing jurisdictions in Panama and (B)
the First Ship Mortgage with appropriate authorities in the necessary
filing jurisdictions of Australia;
(xiii) Required Bank Approval. The Agent shall have received the
consents of Majority Banks to this amendment and restatement as
required by the Original Credit Agreement, said consent being
evidenced by execution by Majority Banks of this Agreement;
(xiv) Representation and Warranties. The representations and
warranties of Borrower under this Agreement are true and correct in
all material respects as of such date, as if then made (except to the
extent that such representations and warranties related solely to an
earlier date);
(xv) No Event of Default. No Default or Event of Default shall
have occurred and be continuing;
(xvi) Other Documents. Agent shall have received such other
instruments and documents incidental and appropriate to the
transaction provided for herein as Bank or its counsel may reasonably
request, and all such documents shall be in form and substance
reasonably satisfactory to the Agent; and
(xvii) Legal Matters Satisfactory. All legal matters incident to
the consummation of the transactions contemplated hereby shall be
reasonably satisfactory to special counsel for Agent retained at the
expense of Borrower.
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(b) The obligation of the Banks to make any Advance on the Revolving
Commitment (including the initial Advance) shall be subject to the
following additional conditions precedent that, at the date of making each
such Advance and after giving effect thereto:
(i) Representation and Warranties. The representations and
warranties of Borrower under this Agreement are true and correct in
all material respects as of such date, as if then made (except to the
extent that such representations and warranties related solely to an
earlier date);
(ii) No Event of Default. No Default or Event of Default shall
have occurred and be continuing;
(iii) Other Documents. Agent shall have received such other
instruments and documents incidental and appropriate to the
transaction provided for herein as Agent or its counsel may reasonably
request, and all such documents shall be in form and substance
reasonably satisfactory to the Agent; and
(iv) Legal Matters Satisfactory. All legal matters incident to
the consummation of the transactions contemplated hereby shall be
reasonably satisfactory to special counsel for Agent retained at the
expense of Borrower.
11. AFFIRMATIVE COVENANTS. The Borrower covenants and agrees with the
Banks and the Agent that, so long as any Revolving Commitment, Revolving Loan or
any fee, expense, or any other amount payable under any Loan Document shall
remain unpaid and outstanding:
(a) Financial Statements and Reports. Borrower shall promptly furnish
to the Agent for delivery to the Banks from time to time upon request such
information regarding the business and affairs and financial condition of
Borrower, as the Banks may reasonably request, and will furnish, or cause
Xxxxxx to furnish, to the Agent for delivery to the Banks:
(b) Annual Financial Statements. As soon as available, and in any
event within one hundred twenty (120) days after the close of each fiscal
year, the annual audited consolidated Financial Statements and unaudited
consolidating Financial Statements of Xxxxxx, prepared in accordance with
GAAP and in a manner consistent with prior years;
(c) Quarterly Financial Statements. As soon as available, and in any
event within sixty (60) days after the end of each calendar quarter of each
year (except the last calendar quarter of any fiscal year), the quarterly
unaudited consolidated and consolidating Financial Statements of Xxxxxx
prepared in accordance with GAAP and in a manner consistent with prior
periods;
(d) Fleet Employment Report. As soon as available, and in any event
within sixty (60) days of the end of each calendar quarter of each year, a
quarterly fleet employment report setting forth the location, charter,
term, and rate for all offshore drilling rigs owned and operated by Xxxxxx
or its Subsidiaries (including, without limitation, the XXXXXX FALCON and
the VICKSBURG) as of the date of such report, such reports to be in form
and substance satisfactory to Agent; and
(e) Annual Appraisals. As soon as available, and in any event within
ninety (90) days after the close of each fiscal year of Borrower, an annual
desk top appraisal on the Rigs prepared by an independent appraisal firm or
offshore drilling brokerage firm chosen by the Agent and reasonably
acceptable to Borrower;
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(f) Additional Information. Promptly upon request of the Agent from
time to time any additional financial information or other information that
the Agent may reasonably request.
All such reports, information, balance sheets and Financial Statements
referred to in Subsection 11(a) above shall be in such detail as the Agent
may reasonably request.
(g) Certificates of Compliance. Concurrently with the furnishing of
the annual Financial Statements pursuant to Subsection 11(a)(i) hereof and
the quarterly unaudited Financial Statements pursuant to Subsection
11(a)(ii) hereof, Borrower will furnish or cause to be furnished to the
Agent a certificate in the form of Exhibit "E" attached hereto, signed by
the President or Chief Financial Officer of Borrower, which certificate may
be combined with the certificate furnished by the Guarantors pursuant to
Section 11(b) of the Guarantor's Credit Agreement.
(h) Taxes and Other Liens. Borrower shall and shall cause each
Subsidiary to pay and discharge promptly all lawful taxes, assessments and
governmental charges or levies imposed upon Borrower or any Subsidiary or
upon the income or any assets or property of Borrower or any Subsidiary as
well as all claims of any kind (including claims for labor, materials,
supplies and rent) which, if unpaid, might become a Lien or other
encumbrance upon any or all of the assets or property of Borrower or any
Subsidiary and which could reasonably be expected to result in a Material
Adverse Effect; provided, however, that the Borrower and its Subsidiaries
shall not be required to pay any such tax, assessment, charge, levy or
claim if the amount, applicability or validity thereof shall currently be
contested in good faith by appropriate proceedings diligently conducted,
levy and execution thereon have been stayed and continue to be stayed and
if Borrower or Subsidiary shall have set up adequate reserves therefor, if
required, under GAAP.
(i) Compliance with Laws. Borrower shall and shall cause each
Subsidiary to observe and comply with all applicable laws, statutes, codes,
acts, ordinances, orders, judgments, decrees, injunctions, rules,
regulations, orders and restrictions relating to environmental standards or
controls or to energy regulations of all federal, state, county, municipal
and other governments, departments, commissions, boards, agencies, courts,
authorities, officials and officers, domestic or foreign, where the failure
to so observe and comply is reasonably expected to have a Material Adverse
Effect.
(j) Further Assurances. Borrower will cure promptly any defects in
the creation and issuance of the Note and the execution and delivery of the
Notes and the Loan Documents, including this Agreement. Borrower at its
sole expense will promptly execute and deliver to Agent upon its reasonable
request all such other and further documents, agreements and instruments in
compliance with or accomplishment of the covenants and agreements in this
Agreement, or to correct any omissions in the Note or more fully to state
the obligations set out herein.
(k) Performance of Obligations. Borrower will pay the Notes and other
obligations incurred by it hereunder according to the reading, tenor and
effect thereof and hereof.
(l) Insurance. The Borrower and Australia and each of their
Subsidiaries is now maintaining and will continue to maintain insurance
with financially sound and reputable insurers with respect to their
respective assets against such liabilities, fires, casualties, risks and
contingencies and at such types and amounts as is customary in the case of
persons engaged in the same or similar businesses or similarly situated and
in amounts which are consistent with prudent business practices. Upon the
request of the Agent, the Borrower and Australia will furnish or cause to
be furnished to the Agent from time to time a summary of each respective
insurance company of the Borrower and
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Australia, and each of their Subsidiaries, will provide the Agent with
copies of all policies covering the Rigs, and, if requested, will furnish
the Agent with copies of the applicable policies covering their other
material assets. In addition, the Borrower and Australia shall maintain the
following insurance on the Rigs:
The Borrower and Australia shall insure, or cause to be insured, the
Rigs pursuant to the terms of Article I, Section 15 of the First Naval
Mortgage in the case of Borrower, and Clause 7.3 of the First Ship Mortgage
in the case of Australia. The Borrower and Australia will promptly notify
the Agent of any material changes in such insurances or any change in the
underwriters or clubs providing such insurances. The Borrower and Australia
shall annually but no later than the anniversary date of this Agreement
furnish the Agent with evidence of all such insurance policies currently in
force.
If no Default or Event of Default has occurred and is continuing, the
Borrower or Australia, as the case may be, shall be entitled to the
proceeds of any hull or machinery insurance to restore, rebuild or repair a
Rigs in the event of less than a total, constructive total or compromised
total loss of a Rigs as determined by Borrower's or Australia's insurers to
the reasonable satisfaction of the Agent. If a Default or Event of Default
has occurred and is continuing at the date of any such loss or if the loss
is a total, constructive total or compromised total loss, then, in such
event, the proceeds shall be paid to the Banks and applied ratably as a
prepayment on the principal amount of the Notes.
(m) Accounts and Records. Borrower and each Subsidiary will keep
books, records and accounts in which full, true and correct entries will be
made of all dealings or transactions in relation to its business and
activities, prepared in a manner consistent with prior years, subject to
changes suggested by Borrower's or any Subsidiary's auditors.
(n) Right of Inspection. Borrower and Australia and each of their
respective Subsidiaries will permit any officer, employee or agent of the
Agent, at its expense, to (A) examine Borrower's, Australia's and each of
their respective Subsidiary's books, records and accounts, and take copies
and extracts therefrom, and (B) inspect the Rigs, all at such reasonable
times during normal business hours and as often as the Agent may reasonably
request.
(o) Notice of Certain Events. Borrower shall promptly notify the
Agent if Borrower learns of the occurrence of (i) any event which
constitutes an Event of Default together with a detailed statement by
Borrower of the steps being taken to cure the Event of Default; or (ii) any
legal, judicial or regulatory proceedings affecting Borrower, any
Subsidiary, or any of the material assets or properties of Borrower or any
Subsidiary which, if adversely determined, could reasonably be expected to
have a Material Adverse Effect; or (iii) any dispute between Borrower or
any Subsidiary and any governmental or regulatory body or any other person
or entity which, if adversely determined, might reasonably be expected to
cause a Material Adverse Effect; or (iv) any other matter which in
Borrower's opinion is reasonably expected to have a Material Adverse
Effect.
(p) ERISA Information and Compliance. Borrower shall and shall cause
each Subsidiary to promptly furnish to the Agent immediately upon becoming
aware of the occurrence of any "reportable event", as such term is defined
in Section 4043 of ERISA, or of any "prohibited transaction", as such term
is defined in Section 4975 of the Internal Revenue Code of 1954, as
amended, in connection with any Plan or any trust created thereunder, a
written notice signed by the chief financial officer of Borrower or such
Subsidiary specifying the nature thereof, what action Borrower or such
Subsidiary is taking or proposes to take with respect thereto, and, when
known, any action taken by the Internal Revenue Service with respect
thereto.
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(q) Environmental Compliance.
The Borrower, Australia and each of their Subsidiaries will comply
with and will use their best efforts to cause their agents, contractors and
sub-contractors (while such Persons are acting within the scope of their
contractual relationship with the Borrower, Australia and each of their
respective Subsidiaries) to so comply with (A) all applicable
environmental, health and safety laws, codes and ordinances, and all rules
and regulations promulgated thereunder of all Governmental Authorities and
(B) the terms and conditions of all applicable permits, licenses,
certificates and approvals of all Governmental Authorities now or hereafter
granted or obtained with respect to the Rigs or other properties owned or
operated by the Borrower, Australia or their respective Subsidiaries unless
such compliance would violate the laws or regulations of the jurisdictions
in which the Rigs are operating.
The Borrower, Australia and their respective Subsidiaries will use
their best efforts and safety practices to prevent the unauthorized
release, discharge, disposal, escape or spill of Hazardous Substances on or
about the Rigs or other properties owned or operated by the Borrower,
Australia or the Subsidiaries.
(r) Environmental Notifications. The Borrower shall notify the Agent,
in writing, within five (5) Business Days of any of the following events
occurring after the date of this Agreement:
Any written notification made by Borrower, Australia or any of their
respective Subsidiaries to any federal, state or local environmental agency
required under any federal, state or local environmental statute,
regulation or ordinance relating to a spill or unauthorized discharge or
release of any Hazardous Substance to the environment at, from, or as a
result of any operations on, the Rigs or other properties and operations
owned or operated by the Borrower or any Subsidiary.
Knowledge by an officer of the Borrower or Australia or any Subsidiary
of receipt of service by Borrower or Australia or any Subsidiary of any
complaint, compliance order, compliance schedule, notice letter, notice of
violation, citation or other similar notice or any judicial demand by any
court, federal, state or local environmental agency, alleging (A) any
spill, unauthorized discharge or release of any Hazardous Substance to the
environment from, or as a result of the operations on, the Rigs or other
properties owned or operated by the Borrower or Australia or any Subsidiary
or (B) violations of applicable laws, regulations or permits regarding the
generation, storage, handling, treatment, transportation, recycling,
release or disposal of Hazardous Substances on or as a result of operations
on the Rigs or other properties and operations owned or operated by the
Borrower or Australia or their respective Subsidiaries.
It is understood by the parties hereto that the aforementioned notices
are solely for the Agent's information, may not otherwise be required by
any federal, state or local environmental laws, regulations or ordinances,
and are to be considered confidential information by the Banks and the
Agent.
The term "environmental agency" as used herein shall include, but not
be limited to, the United States Environmental Protection Agency, the
United States Coast Guard, the United States Mineral Management Service,
the United States Department of Transportation (in its administration of
the Hazardous Materials Transportation Act, 49 U.S.C. Sec. 1801, et seq.)
and other analogous or similar Governmental Authorities regulating or
administering statutes, regulations or ordinances relating to or imposing
liability or standards of conduct concerning the generation, storage, use,
production, transportation, handling, treatment, recycling, release or
disposal of any Hazardous Substance.
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(s) Environmental Indemnifications.
The Borrower and each Guarantor hereby agrees to indemnify and hold
the Agent and the Banks jointly and severally harmless from and against any
and all claims, losses, liability, damages and injuries of any kind
whatsoever asserted against the Agent and the Banks with respect to or as a
direct result of the presence, escape, seepage, spillage, release, leaking,
discharge or migration from any Rigs or other properties owned or operated
by the Borrower, any Guarantor or any Subsidiary of any Hazardous
Substance, including without limitation, any claims asserted or arising
under any applicable environmental, health and safety laws, codes and
ordinances, and all rules and regulations promulgated thereunder of all
Governmental Authorities, regardless of whether or not caused by or within
the control of the Borrower, any Guarantor or any Subsidiary.
It is the parties' understanding that the Agent and the Banks do not
now, have never and do not intend in the future to exercise any operational
control or maintenance over the Rigs or any other properties and operations
owned or operated by the Borrower, any Guarantor or any Subsidiary, nor
have they in the past, presently, or intend in the future to, maintain an
ownership interest in the Rigs or any other properties owned or operated by
the Borrower, any Guarantor or any Subsidiary except as may arise upon
enforcement of the Agent's rights under the First Naval Mortgage and the
First Ship Mortgage.
Should, however, the Agent or the Banks hereafter exercise any
ownership interest in or operational control over the Rigs or any other
properties owned or operated by the Borrower, any Guarantor or any
Subsidiary, e.g., including but not limited to, through foreclosure, then
the above stated indemnity and hold harmless shall be limited with respect
to any actions or failures to act by the Agent or the Banks subsequent to
exercising such interest or operational control, to the extent such action
or inaction by the Agent or the Banks is admitted by the Agent or the Banks
is found by a court of competent jurisdiction to have caused or made worse
any condition for which liability is asserted, including but not limited
to, the presence, escape, seepage, spillage, leaking, discharge or
migration on or from the Rigs or other properties owned or operated by the
Borrower, any Guarantor or any Subsidiary of any Hazardous Substance.
(t) Change of Principal Place of Business. Borrower shall give Agent
at least thirty (30) days prior written notice of its intention to move its
principal place of business from the address set forth in Section 16
hereof.
(u) Payables and Other Indebtedness. Borrower and each Subsidiary
shall pay their trade payables and other Debt that arise in the ordinary
course of business promptly as they become due except to the extent any
such trade payables or Debt are being contested in good faith.
(v) Collateral Maintenance. The Borrower or Australia, as
appropriate, shall maintain as Collateral at all times the Rigs with (i) an
aggregate fair market appraised value of at least 125% of the Revolving
Commitment, and (ii) a liquidation appraised value of at least 100% of the
Revolving Commitment. In the event the foregoing required Collateral
maintenance is not met, the Borrower will either reduce the Revolving
Commitment to a level supported by the Collateral (as required above) or
pledge additional Collateral acceptable to Agent within thirty (30) days.
(w) Maintenance of Rigs. The Borrower or Australia, as appropriate,
will maintain, or cause to be maintained, the Rigs in the highest
classification for such drilling rigs with the American Bureau of Shipping
or such other classification society as the Agent may approve.
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(x) Rate Management Transactions. The Borrower shall promptly perform
all obligations and promptly pay all amounts due any Lender under any Rate
Management Transaction.
12. NEGATIVE COVENANTS. The Borrower covenants and agrees, and with
respect to Subsections 12(b), (c), (d), (e), (f), (p), (q), (r) and (s), the
Guarantors covenant and agree, with the Banks, the Agent that, so long as any
Revolving Commitment, Revolving Loan or any fee, expense, or any other amount
payable under any Loan Document shall remain unpaid and outstanding:
(a) Negative Pledge. Neither the Borrower nor any of its Subsidiaries
shall without the prior written consent of the Banks:
(i) create, incur, assume or permit to exist any Lien, security
interest or other encumbrance on any of its assets or properties now
owned or hereafter acquired, except Permitted Liens; or
(ii) sell, lease, transfer or otherwise dispose of, in any fiscal
year, any of its material assets or properties, except for (1) sales,
leases, transfers, charters (including drilling contracts) or other
dispositions made in the ordinary course of the Borrower's business
and (2) sales, leases, transfers, charters (including drilling
contracts) or other dispositions between Borrower and a Subsidiary or
as otherwise permitted under subparagraph (p), (q) and (s) of this
Section 12, and (3) sales, leases, transfers, charters (including
drilling contracts) or other dispositions of its assets (other than
Collateral) which, on a pro forma basis after giving effect thereto,
do not result in a violation of Subsections 12(b), (c), (d), (e) or
(f).
(b) Current Ratio. Guarantors will not allow the ratio of
Consolidated Current Assets to Consolidated Current Liabilities to be less
than 1.25 to 1.0 as of the end of any fiscal quarter.
(c) Funded Debt to EBITDA. Guarantors will not allow their ratio of
(i) Consolidated Funded Debt to (ii) Consolidated EBITDA to be greater than
(A) 2.75 to 1.0 as of the end of any fiscal quarter from December 31, 2001
to March 31, 2003, and (B) 2.5 to 1.0 as of the end of any fiscal quarter.
(d) Interest Coverage Ratio. Guarantors will not allow the ratio of
Consolidated EBITDA to Consolidated Interest Expense to be less than 3.0 to
1.0 as of the end of each fiscal quarter.
(e) Funded Debt to Tangible Net Worth. Guarantors will not allow the
ratio of Consolidated Funded Debt to Consolidated Tangible Net Worth to be
more than .9 to 1.0 as of the end of any fiscal quarter.
(f) Tangible Net Worth. Guarantors will not allow the Consolidated
Tangible Net Worth to be less than $210,000,000 plus fifty percent (50%) of
Consolidated Net Income, if positive, for each fiscal quarter beginning
with the fiscal quarter ended December 31, 2001, plus 75% of the proceeds
of any sale of equity after September 30, 2001, tested at the end of each
fiscal quarter.
(g) Consolidations and Mergers. Neither the Borrower nor any
Subsidiary will consolidate or merge with or into any other Person, except
that the Borrower or any Subsidiary may merge with another Person if
Borrower or such Subsidiary is the surviving entity in such merger, and any
Subsidiary may merge with any Subsidiary, if, after giving effect to any
such merger or consolidation, no Default or Event of Default shall have
occurred and be continuing.
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(h) Debts, Guaranties and Other Obligations. Neither the Borrower nor
any of the Subsidiaries will incur, create, assume or in any manner become
or be liable in respect of any Debt, nor will Borrower or any Subsidiary
guarantee or otherwise in any manner become or be liable in respect of any
indebtedness, liabilities or other obligations of any other person or
entity, whether by agreement to purchase the indebtedness of any other
person or entity or agreement for the furnishing of funds to any other
person or entity through the purchase or lease of goods, supplies or
services (or by way of stock purchase, capital contribution, advance or
loan) for the purpose of paying or discharging the indebtedness of any
other person or entity, or otherwise, except that the foregoing
restrictions shall not apply to:
(i) the Notes and any renewal or increase thereof; or
(ii) taxes, assessments or other government charges which are not
yet due or are being contested in good faith by appropriate action
promptly initiated and diligently conducted, if such reserve as shall
be required by GAAP shall have been made therefor and levy and
execution thereon have been stayed and continue to be stayed; or
(iii) additional indebtedness for borrowed money which, together
with the indebtedness permitted by Section 12(h)(iii) of the
Guarantors' Credit Agreement, does not exceed $10,000,000 in the
aggregate outstanding at any time; or
(iv) intercompany indebtedness between Borrower and Guarantors
permitted by Guarantors' Credit Agreement; or
(v) intercompany indebtedness between Borrower or any Subsidiary
of Borrower and Xxxxxx or any subsidiary of Xxxxxx in an amount not
greater than the principal amount outstanding as of March 31, 2000; or
(vi) additional intercompany indebtedness payable by Borrower or
any Subsidiary of Borrower to Xxxxxx or any Subsidiary of Xxxxxx
which, together with the indebtedness permitted by Section 12(h)(vii)
of the Guarantors' Credit Agreement, does not exceed $5,000,000 in the
aggregate; or
(vii) indebtedness for insurance premiums incurred in the
ordinary course of business; or
(viii) renewals or extensions (but not increases in) of any or
all of the foregoing.
(i) Dividends. Borrower will not declare or pay any dividend,
purchase, redeem or otherwise acquire for value any of its stock now or
hereafter outstanding, return any capital to its stockholders, or make any
distribution of its assets to its stockholders as such, except the
foregoing shall not apply to dividends from Borrower to Xxxxxx.
(j) Loans and Advances. Neither Borrower nor any of its Subsidiaries
shall make or permit to remain outstanding any loans or advances to or in
any person or entity, except that the foregoing restriction shall not apply
to:
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(i) loans or advances to any person, the material details of
which have been set forth in the Financial Statements of Xxxxxx
heretofore furnished to Banks or on Schedule "7" hereto; or
(ii) inter-company loans or advances between the Borrower and the
Guarantors permitted by the Guarantors' Credit Agreement; or
(iii) additional loans and advances to Subsidiaries of Xxxxxx or
Borrower which together with the loans and advances permitted by
Section 12(j)(iii) of the Guarantors' Credit Agreement, do not exceed
$5,000,000 in the aggregate; or
(iv) loans or advances to employees incurred in the ordinary
course of business not to exceed $50,000 in the aggregate outstanding
at any time.
(k) Sale or Discount of Receivables. Neither Borrower nor any
Subsidiary will discount or sell with recourse, or sell for less than the
greater of the face or market value thereof, any of its notes receivable or
accounts receivable.
(l) Nature of Business. Neither Borrower nor any Subsidiary will
permit any material change to be made in the character of its business as
carried on at the date hereof.
(m) Transactions with Affiliates. Neither Borrower nor any Subsidiary
will enter into any transaction with any Affiliate, except transactions
upon terms that are no less favorable to it than would be obtained in a
transaction negotiated at arm's length with an unrelated third party.
(n) Investments. Neither Borrower nor any Subsidiary shall make any
investment in any person or entity, except such restriction shall not apply
to:
(i) investments existing at the Effective Date as disclosed in
the Financial Statements;
(ii) investments in Subsidiaries; and
(iii) investments consisting of Cash Equivalents.
(o) Amendment to Charter Documents. Neither Borrower nor any
Subsidiary will permit any amendment to its Memorandum and Articles of
Association or equivalent charter document.
(p) Management of Rigs. Except for a sale, transfer or assignment of
ownership of a Rig to the Borrower or a Guarantor, Borrower will not change
nor will it allow Australia to change, the flag, class, ownership,
management or control of the Rigs without the prior written consent of the
Agent.
(q) Charter of Rigs.
(i) Neither Borrower nor Australia shall cause or allow the any
of the Rigs to be bareboat chartered to any party other than a
Subsidiary or a Guarantor without the prior written consent of the
Agent, which consent shall not be unreasonably withheld.
(ii) In the case of any bareboat or time charter of any Rig to
any Subsidiary or Guarantor, Borrower shall or shall cause Australia
to, execute and deliver to the Agent an
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assignment of drilling contract revenues and earnings similar in form
and substance to the Assignment of Charter Hire, Drilling Contract
Revenues and Earnings entered into by the Borrower and dated of even
date herewith.
(r) Modification of Rigs. Neither Borrower nor Australia shall cause
or allow any change in the physical characteristics of the Rigs that would,
in the reasonable judgment of the Agent, materially interfere with the
suitability of the Rigs for normal commercial offshore drilling operations,
the consent of the Agent to any such modification not to be unreasonably
withheld.
(s) Sale of Rigs, etc. Except for a sale, transfer or assignment to
the Borrower or Guarantor, neither Borrower nor Australia shall sell,
transfer or assign any of the Rigs, any right to receive the revenue from
the Rigs or any property serving as collateral for the Revolving
Commitment; provided, however, that the Borrower or Australia may sell,
transfer or assign any surplus or scrap equipment from the Rigs.
13. EVENTS OF DEFAULT. Any one or more of the following events shall be
considered an "Event of Default" as that term is used herein:
(a) Borrower shall fail to pay when due or declared due the principal
of, and the interest on, the Notes, or any fee or any other material
indebtedness of Borrower incurred pursuant to this Agreement or any other
Loan Document; or
(b) Any representation or warranty made under this Agreement, or in
any certificate or statement furnished or made to the Banks pursuant
hereto, or in connection herewith, or in connection with any document
furnished hereunder, shall prove to be untrue in any material respect as of
the date on which such representation or warranty is made (or deemed made),
or any representation, statement (including financial statements),
certificate, report or other data furnished or to be furnished or made
under any Loan Document, including this Agreement, proves to have been
untrue in any material respect, as of the date as of which the facts
therein set forth were stated or certified; or
(c) Default shall be made in the due observance or performance of any
of the covenants or agreements contained in the Loan Documents, including
this Agreement (excluding covenants contained in Section 12 of the
Agreement for which there is no cure period), and such default shall
continue for more than thirty (30) days after the giving of written notice
thereof by the Agent to the Borrower; or
(d) Default shall be made in the due observance or performance of the
covenants contained in Section 12 of this Agreement; or
(e) Default shall be made in respect of any obligation for borrowed
money, other than the Notes, for which Borrower or any Subsidiary is liable
(directly, by assumption, as guarantor or otherwise), or any obligations
secured by any mortgage, pledge or other security interest, lien, charge or
encumbrance with respect thereto, on any asset or property of Borrower or
any Subsidiary or in respect of any agreement relating to any such
obligations unless neither Borrower nor any Subsidiary is liable for same
(i.e., unless remedies or recourse for failure to pay such obligations is
limited to foreclosure of the collateral security therefor), and if such
default shall continue beyond the applicable grace period, if any; or
(f) Borrower or any Subsidiary shall commence a voluntary case or
other proceedings seeking liquidation, reorganization or other relief with
respect to itself or its debts under any
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bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking an appointment of a trustee, receiver, liquidator, custodian or
other similar official of it or any substantial part of its property, or
shall consent to any such relief or to the appointment of or taking
possession by any such official in an involuntary case or other proceeding
commenced against it, or shall make a general assignment for the benefit of
creditors, or shall fail generally to pay its debts as they become due, or
shall take any corporate action authorizing the foregoing; or
(g) An involuntary case or other proceeding, shall be commenced
against Borrower or any Subsidiary seeking liquidation, reorganization or
other relief with respect to it or its debts under any bankruptcy,
insolvency or similar law now or hereafter in effect or seeking the
appointment of a trustee, receiver, liquidator, custodian or other similar
official of it or any substantial part of its property, and such
involuntary case or other proceeding shall remain undismissed and unstayed
for a period of thirty (30) days; or an order for relief shall be entered
against Borrower or any Subsidiary under the federal bankruptcy laws as now
or hereinafter in effect; or
(h) A final judgment or order for the payment of money in excess of
$1,000,000 (or judgments or orders aggregating in excess of $1,000,000)
shall be rendered against Borrower or any Subsidiary and such judgments or
orders shall continue unsatisfied and unstayed for a period of thirty (30)
days unless such judgment or orders are fully covered by insurance or
supersedeas bond; or
(i) In the event the aggregate principal amount outstanding under the
Notes shall at any time exceed the Revolving Commitment established for the
Notes, and Borrower shall fail to comply with the provisions of Section
8(b) hereof; or
(j) A Change of Control shall occur; or
(k) A Change of Management shall occur; or
(l) Default shall occur under Guarantors' Credit Agreement; or
(m) Default shall occur on a Rate Management Transaction.
Upon occurrence of any Event of Default specified in Subsections 13(f) and
(g) hereof, the entire principal amount due under the Notes and all interest
then accrued thereon, and any other liabilities of Borrower hereunder, shall
become immediately due and payable all without notice and without presentment,
demand, protest, notice of protest or dishonor or any other notice of default of
any kind, all of which are hereby expressly waived by Borrower. In any other
Event of Default, the Agent, upon request of Majority Banks, shall by notice in
writing to Borrower declare the principal of, and all interest then accrued on,
the Notes and any other liabilities hereunder to be forthwith due and payable,
whereupon the same shall forthwith become due and payable without presentment,
demand, protest, notice of intent to accelerate, notice of acceleration or other
notice of any kind, all of which Borrower hereby expressly waives, anything
contained herein or in the Notes to the contrary notwithstanding. Nothing
contained in this Section 13 shall be construed to limit or amend in any way the
Events of Default enumerated in the Notes, or any other document executed in
connection with the transaction contemplated herein.
Upon the occurrence and during the continuance of any Event of Default, the
Banks are hereby authorized at any time and from time to time and to the extent
permitted by applicable law, without notice to Borrower (any such notice being
expressly waived by Borrower), 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 any of the Banks to or for the credit or
the account of Borrower against any and all of the indebtedness
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of Borrower under the Notes and the Loan Documents, including this Agreement,
irrespective of whether or not the Banks shall have made any demand under the
Loan Documents, including this Agreement or the Notes and although such
indebtedness may be unmatured. Any amount set-off by any of the Banks shall be
applied against the indebtedness owed the Banks by Borrower pursuant to this
Agreement and the Notes. The Banks agree promptly to notify Borrower after any
such setoff and application, provided that the failure to give such notice shall
not affect the validity of such set-off and application. The rights of the Bank
under this Section are in addition to other rights and remedies (including,
without limitation, other rights of set-off) which the Banks may have.
14. THE AGENT AND THE BANKS.
(a) Appointment and Authorization. Each Bank hereby appoints Agent as
its nominee and agent, in its name and on its behalf: (i) to act as nominee
for and on behalf of such Bank in and under all Loan Documents; (ii) to
arrange the means whereby the funds of Banks are to be made available to
Borrower under the Loan Documents; (iii) to take such action as may be
requested by any Bank under the Loan Documents (when such Bank is entitled
to make such request under the Loan Documents); (iv) to receive all
documents and items to be furnished to Banks under the Loan Documents; (v)
to be the secured party, mortgagee, beneficiary, and similar party in
respect of, and to receive, as the case may be, any collateral for the
benefit of Banks; (vi) to promptly distribute to each Bank all material
information, requests, documents and items received from Borrower under the
Loan Documents; (vii) to promptly distribute to each Bank such Bank's Pro
Rata Part of each payment or prepayment (whether voluntary, as proceeds of
insurance thereon, or otherwise) in accordance with the terms of the Loan
Documents and (viii) to deliver to the appropriate Persons requests,
demands, approvals and consents received from Banks. Each Bank hereby
authorizes Agent to take all actions and to exercise such powers under the
Loan Documents as are specifically delegated to such Agent by the terms
hereof or thereof, together with all other powers reasonably incidental
thereto. With respect to its commitments hereunder and the Notes issued to
it, Agent and any successor Agent shall have the same rights under the Loan
Documents as any other Bank and may exercise the same as though it were not
the Agent; and the term "Bank" or "Banks" shall, unless otherwise expressly
indicated, include Agent and any successor Agent in its capacity as a Bank.
Agent and any successor Agent and its Affiliates may accept deposits from,
lend money to, act as trustee under indentures of and generally engage in
any kind of business with Borrower, and any person which may do business
with Borrower, all as if Agent and any successor Agent were not Agent
hereunder and without any duty to account therefor to the Banks; provided
that, if any payments in respect of any property (or the proceeds thereof)
now or hereafter in the possession or control of Agent which may be or
become security for the obligations of Borrower arising under the Loan
Documents by reason of the general description of indebtedness secured or
of property contained in any other agreements, documents or instruments
related to any such other business shall be applied to reduction of the
obligations of Borrower arising under the Loan Documents, then each Bank
shall be entitled to share in such application according to its pro rata
part thereof. Each Bank, upon request of any other Bank, shall disclose to
all other Banks all indebtedness and liabilities, direct and contingent, of
Borrower to such Bank as of the time of such request.
(b) Note Holders. From time to time as other Banks become a party to
this Agreement, Agent shall obtain execution by Borrower of additional
Notes, in the form of Exhibit B hereto, in amounts representing the
Revolving Commitment of each such new Bank, up to an aggregate face amount
of all Notes not exceeding $100,000,000. The obligation of such Bank shall
be governed by the provisions of this Agreement, including but not limited
to, the obligations specified in Section 2 hereof. From time to time, Agent
may require that the Banks exchange their Notes for newly issued Notes to
better reflect the Revolving Commitments of the Banks. Agent may treat the
payee of any Note as the
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holder thereof until written notice of transfer has been filed with it,
signed by such payee and in form satisfactory to Agent.
(c) Consultation with Counsel. Banks agree that Agent may consult
with legal counsel selected by Agent and shall not be liable for any action
taken or suffered in good faith by it in accordance with the advice of such
counsel. BANKS ACKNOWLEDGE THAT GARDERE XXXXX XXXXXX LLP IS COUNSEL FOR
BANK ONE, BOTH AS AGENT AND AS A BANK, AND THAT SUCH FIRM DOES NOT
REPRESENT ANY OF THE OTHER BANKS IN CONNECTION WITH THIS TRANSACTION.
(d) Documents. Agent shall not be under a duty to examine or pass
upon the validity, effectiveness, enforceability, genuineness or value of
any of the Loan Documents or any other instrument or document furnished
pursuant thereto or in connection therewith, and Agent shall be entitled to
assume that the same are valid, effective, enforceable and genuine and what
they purport to be.
(e) Resignation or Removal of Agent. Subject to the appointment and
acceptance of a successor Agent as provided below, Agent may resign at any
time by giving written notice thereof to Banks and Borrower, and Agent may
be removed at any time with or without cause by Majority Banks. If no
successor Agent has been so appointed by Majority Banks (and approved by
Borrower) and has accepted such appointment within 30 days after the
retiring Agent's giving of notice of resignation or removal of the retiring
Agent, then the retiring Agent may, on behalf of Banks, appoint a successor
Agent. Any successor Agent must be approved by Borrower, which approval
will not be unreasonably withheld. Upon the acceptance of any appointment
as Agent hereunder by a successor Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights and duties of
the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations hereunder. After any retiring Agent's resignation or
removal hereunder as Agent, the provisions of this Section 14 shall
continue in effect for its benefit in respect to any actions taken or
omitted to be taken by it while it was acting as Agent.
(f) Responsibility of Agent. It is expressly understood and agreed
that the obligations of Agent under the Loan Documents are only those
expressly set forth in the Loan Documents and that Agent, as the case may
be, shall be entitled to assume that no Default or Event of Default has
occurred and is continuing, unless Agent, as the case may be, has actual
knowledge of such fact or has received notice from a Bank or Borrower that
such Bank or Borrower consider that a Default or an Event of Default has
occurred and is continuing and specifying the nature thereof. Neither Agent
nor any of their directors, officers, attorneys or employees shall be
liable for any action taken or omitted to be taken by them under or in
connection with the Loan Documents, except for its or their own gross
negligence or willful misconduct. Agent shall incur no liability under or
in respect of any of the Loan Documents by acting upon any notice, consent,
certificate, warranty or other paper or instrument believed by it to be
genuine or authentic or to be signed by the proper party or parties, or
with respect to anything which it may do or refrain from doing in the
reasonable exercise of its judgment, or which may seem to it to be
necessary or desirable.
Agent shall not be responsible to Banks for any of Borrower's
recitals, statements, representations or warranties contained in any of the
Loan Documents, or in any certificate or other document referred to or
provided for in, or received by any Bank under, the Loan Documents, or for
the value, validity, effectiveness, genuineness, enforceability or
sufficiency of or any of the Loan Documents or for any failure by Borrower
to perform any of its obligations hereunder or thereunder. Agent may employ
agents and attorneys-in-fact and shall not be answerable, except as to
money or
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securities received by it or its authorized agents, for the negligence or
misconduct of any such agents or attorneys-in-fact selected by it with
reasonable care.
The relationship between Agent and each Bank is only that of agent and
principal and has no fiduciary aspects. Nothing in the Loan Documents or
elsewhere shall be construed to impose on Agent any duties or
responsibilities other than those for which express provision is therein
made. In performing its duties and functions hereunder, Agent does not
assume and shall not be deemed to have assumed, and hereby expressly
disclaims, any obligation or responsibility toward or any relationship of
agency or trust with or for Borrower or any of its beneficiaries or other
creditors. As to any matters not expressly provided for by the Loan
Documents, Agent shall not be required to exercise any discretion or take
any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the
instructions of all Banks and such instructions shall be binding upon all
Banks and all holders of the Notes; provided, however, that Agent shall not
be required to take any action which is contrary to the Loan Documents or
applicable law.
Subject to Section 22 hereof, Agent shall have the right to exercise
or refrain from exercising, without notice or liability to the Banks, any
and all rights afforded to Agent by the Loan Documents or which Agent may
have as a matter of law. Agent shall not have liability to Banks for
failure or delay in exercising any right or power possessed by Agent
pursuant to the Loan Documents or otherwise unless such failure or delay is
caused by the gross negligence of the Agent, in which case only the Agent
responsible for such gross negligence shall have liability therefor to the
Banks.
(g) Independent Investigation. Each Bank severally represents and
warrants to Agent that it has made its own independent investigation and
assessment of the financial condition and affairs of Borrower in connection
with the making and continuation of its participation hereunder and has not
relied exclusively on any information provided to such Bank by Agent in
connection herewith, and each Bank represents, warrants and undertakes to
Agent that it shall continue to make its own independent appraisal of the
credit worthiness of Borrower while the Notes are outstanding or its
commitments hereunder are in force. Agent shall not be required to keep
itself informed as to the performance or observance by Borrower of this
Agreement or any other document referred to or provided for herein or to
inspect the properties or books of Borrower. Other than as provided in this
Agreement, Agent shall not have any duty, responsibility or liability to
provide any Bank with any credit or other information concerning the
affairs, financial condition or business of Borrower which may come into
the possession of Agent.
(h) Indemnification. Banks agree to indemnify Agent, ratably
according to their respective Revolving Commitments on a Pro Rata basis,
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of
any proper and reasonable kind or nature whatsoever which may be imposed
on, incurred by or asserted against Agent in any way relating to or arising
out of the Loan Documents or any action taken or omitted by Agent under the
Loan Documents, provided that no Bank shall be liable for any portion of
such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from Agent's
gross negligence or willful misconduct. Each Bank shall be entitled to be
reimbursed by the Agent for any amount such Bank paid to Agent under this
Section 14(h) to the extent the Agent has been reimbursed for such payments
by Borrower or any other Person. THE PARTIES INTEND FOR THE PROVISIONS OF
THIS SECTION TO APPLY TO AND PROTECT THE AGENT FROM THE CONSEQUENCES OF ANY
LIABILITY INCLUDING STRICT LIABILITY IMPOSED OR THREATENED TO BE IMPOSED ON
AGENT AS WELL AS FROM THE CONSEQUENCES OF ITS OWN NEGLIGENCE, WHETHER OR
NOT THAT NEGLIGENCE IS THE SOLE, CONTRIBUTING OR CONCURRING CAUSE OF ANY
SUCH LIABILITY.
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(i) Benefit of Section 14. The agreements contained in this Section
14 are solely for the benefit of Agent and the Banks and are not for the
benefit of, or to be relied upon by, Borrower, any affiliate of Borrower or
any other person.
(j) Pro Rata Treatment. Subject to the provisions of this Agreement,
each payment (including each prepayment) by Borrower and collection by
Banks (including offsets) on account of the principal of and interest on
the Notes and fees provided for in this Agreement, shall be made Pro Rata;
provided, however, in the event that any Defaulting Bank shall have failed
to make an Advance as contemplated under Section 3 hereof and Agent or
another Bank or Banks shall have made such Advance, payment received by
Agent for the account of such Defaulting Bank or Banks shall not be
distributed to such Defaulting Bank or Banks until such Advance or Advances
shall have been repaid in full to the Bank or Banks who funded such Advance
or Advances.
(k) Assumption as to Payments. Except as specifically provided
herein, unless Agent shall have received notice from Borrower prior to the
date on which any payment is due to Banks hereunder that Borrower will not
make such payment in full, Agent may, but shall not be required to, assume
that Borrower has made such payment in full to Agent on such date and Agent
may, in reliance upon such assumption, cause to be distributed to each Bank
on such due date an amount equal to the amount then due such Bank. If and
to the extent Borrower shall not have so made such payment in full to
Agent, each Bank shall repay to Agent forthwith on demand such amount
distributed to such Bank together with interest thereon, for each day from
the date such amount is distributed to such Bank until the date such Bank
repays such amount to Agent, at the interest rate applicable to such
portion of the Revolving Loans.
(l) Other Financings. Without limiting the rights to which any Bank
otherwise is or may become entitled, such Bank shall have no interest, by
virtue of this Agreement or the Loan Documents, in (a) any present or
future loans from, letters of credit issued by, or leasing or other
financial transactions by, any other Bank to, on behalf of, or with
Borrower (collectively referred to herein as "Other Financings") other than
the obligations hereunder; (b) any present or future guarantees by or for
the account of Borrower which are not contemplated by the Loan Documents;
(c) any present or future property taken as security for any such Other
Financings; or (d) any property now or hereafter in the possession or
control of any other Bank which may be or become security for the
obligations of Borrower arising under any loan document by reason of the
general description of indebtedness secured or property contained in any
other agreements, documents or instruments relating to any such Other
Financings.
(m) Interests of Banks. Nothing in this Agreement shall be construed
to create a partnership or joint venture between Banks for any purpose.
Agent, Banks and Borrower recognize that the respective obligations of
Banks under the Revolving Commitments shall be several and not joint and
that neither Agent, nor any of Banks shall be responsible or liable to
perform any of the obligations of the other under this Agreement. Each Bank
is deemed to be the owner of an undivided interest in and to all rights,
titles, benefits and interests belonging and accruing to Agent under the
Security Instruments, including, without limitation, liens and security
interests in any collateral, fees and payments of principal and interest by
Borrower under the Revolving Commitments on a Pro Rata basis. Each Bank
shall perform all duties and obligations of Banks under this Agreement in
the same proportion as its ownership interest in the Loans outstanding at
the date of determination thereof.
(n) Investments. Whenever Agent in good faith determines that it is
uncertain about how to distribute to Banks any funds which it has received,
or whenever Agent in good faith determines that there is any dispute among
the Banks about how such funds should be distributed, Agent may choose to
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defer distribution of the funds which are the subject of such uncertainty
or dispute. If Agent in good faith believes that the uncertainty or dispute
will not be promptly resolved, or if Agent is otherwise required to invest
funds pending distribution to the Banks, Agent may invest such funds
pending distribution (at the risk of Borrower). All interest on any such
investment shall be distributed upon the distribution of such investment
and in the same proportions and to the same Persons as such investment. All
monies received by Agent for distribution to the Banks (other than to the
Person who is Agent in its separate capacity as a Bank) shall be held by
the Agent pending such distribution solely as Agent for such Banks, and
Agent shall have no equitable title to any portion thereof.
(o) Withholding Tax. Each Bank agrees to furnish (if it is organized
under the laws of any jurisdiction other than the United States or any
State thereof) to the Agent and the Borrower prior to the time that the
Borrower is required to make any payment of principal, interest or fees
hereunder, to such Bank, duplicate executed originals of either U.S.
Internal Revenue Service Form 4224 or U.S. Internal Revenue Service Form
1001 (wherein such Bank claims entitlement to the benefits of a tax treaty
that provides for a complete exemption from U.S. federal income withholding
tax on all payments hereunder) and a Form W-8 and agrees to provide new
Forms 4224 or 1001 and Form W-8, upon the expiration of any previously
delivered from or comparable statements in accordance with applicable U.S.
law and regulations and amendments thereto, and agrees to comply with all
applicable U.S. laws and regulations with regard to such withholding tax
exemption.
15. EXERCISE OF RIGHTS. No failure to exercise, and no delay in
exercising, on the part of the Agent or the Banks, any right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other
right. The rights of the Agent and the Banks hereunder shall be in addition to
all other rights provided by law. No modification or waiver of any provision of
the Loan Documents, including this Agreement, or the Note nor consent to
departure therefrom, shall be effective unless in writing, and no such consent
or waiver shall extend beyond the particular case and purpose involved. No
notice or demand given in any case shall constitute a waiver of the right to
take other action in the same, similar or other circumstances without such
notice or demand.
16. NOTICES. Any notices or other communications required or permitted to
be given by this Agreement or any other documents and instruments referred to
herein must be given in writing either by facsimile transmission or personally
delivered or couriered or mailed by prepaid certified or registered mail to the
party to whom such notice or communication is directed at the address of such
party as follows: (a) BORROWER: XXXXXX OCEANICS PACIFIC LIMITED, Xxxxxx &
Calder, P.O. Box 309, Upland House, Xxxxxx Town, Grand Cayman, B.W.I, Facsimile
No. (000) 000-0000; Attention: Xxx Xxxxxx, with a copy to Guarantors;
GUARANTORS: c/x XXXXXX OCEANICS, INC. and XXXXXX DEEP SEAS, LTD., 00000 Xxxx Xxx
Xxxxx Xxxxx, Xxxxxxx, Xxxxx 00000, Facsimile No. (000) 000-0000; Attention:
Xxxxx X. Xxxxxxx, Senior Vice President and Secretary; (b) AGENT: x/x XXXXX,
XXXX XXX, XX, 0 Bank Xxx Xxxxx, 00xx Xxxxx, XX0-0000, Xxxxxxx, Xxxxxxxx 00000,
Facsimile No. (000) 000-0000, Attention: Xxxxxxx X. Xxxxx, Director, Capital
Markets and (c) any Bank at its address shown on any addendum hereto. Any such
notice or other communication shall be deemed to have been given (whether
actually received or not) on the day it is personally delivered or delivered by
facsimile as aforesaid or, if mailed, on the third day after it is mailed as
aforesaid. Any party may change its address for purposes of this Agreement by
giving notice of such change to the other party pursuant to this Section 16.
17. EXPENSES. Borrower shall pay (i) all reasonable and necessary
out-of-pocket expenses of the Agent, including reasonable fees and disbursements
of special counsel for the Agent, in connection with the preparation of this
Agreement, the other Loan Documents, title and other due diligence and closing
of the transaction described in this Agreement, any waiver or consent hereunder
or any amendment hereof or any default or Event of Default or alleged default or
Event of Default hereunder, (ii) all reasonable and necessary
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out-of-pocket expenses of the Agent, including reasonable fees and disbursements
of special counsel for the Agent in connection with the preparation of any
participation agreement for a participant or participants requested by Borrower
or any amendment thereof and (iii) if a default or an Event of Default occurs,
all reasonable and necessary out-of-pocket expenses incurred by the Banks,
including fees and disbursements of counsel, in connection with such default and
Event of Default and collection and other enforcement proceedings resulting
therefrom. THE BORROWER HEREBY ACKNOWLEDGES THAT GARDERE XXXXX XXXXXX LLP IS
SPECIAL COUNSEL TO BANK ONE, AS AGENT AND AS A BANK, UNDER THIS AGREEMENT AND
THAT IT IS NOT COUNSEL TO, NOR DOES IT REPRESENT THE BORROWER IN CONNECTION WITH
THE TRANSACTIONS DESCRIBED IN THIS AGREEMENT. The Borrower is relying on
separate counsel in the transaction described herein. The Borrower shall
indemnify the Banks against any transfer taxes, document taxes, assessments or
charges made by any governmental authority by reason of the execution, delivery
and filing of the Loan Documents. The obligations of this Section 17 shall
survive any termination of this Agreement, the expiration of the Loans and the
payment of the indebtedness of the Borrower to the Banks hereunder and under the
Notes.
18. INDEMNITY. Borrower agrees to indemnify and hold harmless the Banks
and their respective officers, employees, agents, attorneys and representatives
(singularly, an "Indemnified Party", and collectively, the "Indemnified
Parties") from and against any loss, cost, liability, damage or expense
(including the reasonable fees and out-of-pocket expenses of counsel to the
Banks, including all local counsel hired by such counsel) ("Claim") incurred by
the Banks in investigating or preparing for, defending against, or providing
evidence, producing documents or taking any other action in respect of any
commenced or threatened litigation, administrative proceeding or investigation
under any federal securities law, federal or state environmental law, or any
other statute of any jurisdiction, or any regulation, or at common law or
otherwise, which is alleged to arise out of or is based upon any acts, practices
or omissions or alleged acts, practices or omissions of Borrower or its agents
or arises in connection with the duties, obligations or performance of the
Indemnified Parties in negotiating, preparing, executing, accepting, keeping,
completing, countersigning, issuing, selling, delivering, releasing, assigning,
handling, certifying, processing or receiving or taking any other action with
respect to the Loan Documents and all documents, items and materials
contemplated thereby even if any of the foregoing arises out of an Indemnified
Party's ordinary negligence. The indemnity set forth herein shall be in addition
to any other obligations or liabilities of Borrower to the Banks hereunder or at
common law or otherwise, and shall survive any termination of this Agreement,
the expiration of the Revolving Loans and the payment of all indebtedness of
Borrower to the Banks hereunder and under the Notes, provided that Borrower
shall have no obligation under this Section to the Bank with respect to any of
the foregoing arising out of the gross negligence or willful misconduct of any
Indemnified Party. If any Claim is asserted against any Indemnified Party, the
Indemnified Party shall endeavor to notify Borrower of such Claim (but failure
to do so shall not affect the indemnification herein made except to the extent
of the actual harm caused by such failure). The Indemnified Party shall have the
right to employ, at Borrower's expense, counsel of the Indemnified Parties'
choosing and to control the defense of the Claim. Borrower may at its own
expense also participate in the defense of any Claim. Each Indemnified Party may
employ separate counsel in connection with any Claim to the extent such
Indemnified Party believes it reasonably prudent to protect such Indemnified
Party. THE PARTIES INTEND FOR THE PROVISIONS OF THIS SECTION TO APPLY TO AND
PROTECT EACH INDEMNIFIED PARTY FROM THE CONSEQUENCES OF ANY LIABILITY INCLUDING
STRICT LIABILITY IMPOSED OR THREATENED TO BE IMPOSED ON AGENT AS WELL AS FROM
THE CONSEQUENCES OF ITS OWN ORDINARY NEGLIGENCE, WHETHER OR NOT THAT NEGLIGENCE
IS THE SOLE, CONTRIBUTING, OR CONCURRING CAUSE OF ANY CLAIM.
19. GOVERNING LAW. THIS AGREEMENT IS BEING EXECUTED IN PART AND DELIVERED,
AND IS INTENDED TO BE PERFORMED, IN HOUSTON, HARRIS, COUNTY, TEXAS, AND THE
SUBSTANTIVE LAWS OF TEXAS SHALL GOVERN THE VALIDITY, CONSTRUCTION, ENFORCEMENT
AND INTERPRETATION OF THIS AGREEMENT AND ALL OTHER DOCUMENTS AND INSTRUMENTS
REFERRED TO HEREIN, UNLESS OTHERWISE SPECIFIED THEREIN.
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20. INVALID PROVISIONS. If any provision of this Agreement is held to be
illegal, invalid, or unenforceable under present or future laws effective during
the term of this Agreement, such provisions shall be fully severable and this
Agreement shall be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a part of this Agreement, and the
remaining provisions of the Agreement shall remain in full force and effect and
shall not be affected by the illegal, invalid or unenforceable provision or by
its severance from this Agreement.
21. MAXIMUM INTEREST RATE. Regardless of any provisions contained in this
Agreement or in any other documents and instruments referred to herein, the
Banks shall never be deemed to have contracted for or be entitled to receive,
collect or apply as interest on the Notes any amount in excess of the Maximum
Rate, and in the event any Bank ever receives, collects or applies as interest
any such excess, or if an acceleration of the maturities of any Notes or if any
prepayment by Borrower result in Borrower having paid any interest in excess of
the Maximum Rate, such amount which would be excessive interest shall be applied
to the reduction of the unpaid principal balance of the Notes for which such
excess was received, collected or applied, and, if the principal balance of such
Note is paid in full, any remaining excess shall forthwith be paid to Borrower.
All sums paid or agreed to be paid to the Banks for the use, forbearance or
detention of the indebtedness evidenced by the Notes and/or this Agreement
shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full term of such indebtedness until payment
in full so that the rate or amount of interest on account of such indebtedness
does not exceed the Maximum Rate. In determining whether or not the interest
paid or payable under any specific contingency exceeds the Maximum Rate of
interest permitted by law, Borrower and the Banks shall, to the maximum extent
permitted under applicable law, (i) characterize any non-principal payment as an
expense, fee or premium, rather than as interest; and (ii) exclude voluntary
prepayments and the effect thereof; and (iii) compare the total amount of
interest contracted for, charged or received with the total amount of interest
which could be contracted for, charged or received throughout the entire
contemplated term of the Notes at the Maximum Rate.
For purposes of Section 303 of the Texas Finance Code, to the extent
applicable to any Lender or Agent, Borrowers agree that the Maximum Rate shall
be the "weekly ceiling" as defined in said Chapter, provided that such Lender or
Agent, as applicable, may also rely, to the extent permitted by applicable laws
of the State of Texas and the United States of America, on alternative maximum
rates of interest under the Texas Finance Code or other laws applicable to such
Lender or Agent from time to time if greater.
22. AMENDMENTS OR WAIVERS. Neither this Agreement nor any other Loan
Document nor any terms hereof or thereof may be changed, waived or discharged or
terminated unless such change, waiver, discharge or termination is in writing
signed by the Borrower and the Majority Banks, provided that no such change,
waiver, discharge or termination shall, without the consent of each Bank (other
than a Defaulting Bank) affected thereby, (i) extend the Maturity Date (it being
understood that any waiver of the application of any prepayment of the Revolving
Loans or the method of application of any prepayment shall not constitute any
such extension), to reduce the rate or extend the time of payment of interest
(other than as a result of waiving the applicability of any post-default
increase in interest rates) or fees thereon, or reduce the principal amount
thereof, (ii) increase the Revolving Commitment of any Bank over the amount
thereof then in effect (it being understood that a waiver of any condition,
covenant, Default or Event of Default shall not constitute a change in the terms
of any Revolving Commitment of any Bank), (iii) release or permit the release of
any Collateral from the Lien of the respective Security Instruments, except as
permitted by Sections 12(s) and 12(a)(ii), (iv) amend, modify or waive any
provision of this Section 22, (v) reduce the percentage specified in the
definition of Majority Banks (it being understood and agreed that, with the
consent of the Majority Banks, additional extensions of credit pursuant to this
Agreement may be included in the determination of Majority Banks on
substantially the same basis as the Revolving Commitments (and related
extensions of credit) are included on the Effective Date), (vi) consent to the
assignment or transfer by the Borrower of any of its rights and obligations
under this Agreement, (vii) waive, change the timing or amount of, or extend any
mandatory reduction in the Revolving
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Commitment, (viii) waive any of the conditions precedent to the Effective Date
or making of any Loan or Advance or (ix) amend this sentence. No provision of
Section 2, or any other provisions relating to the Administrative Agent may be
modified without the consent of the Administrative Agent.
23. MULTIPLE COUNTERPARTS. This Agreement may be executed in a number of
identical separate counterparts, each of which for all purposes is to be deemed
an original, but all of which shall constitute, collectively, one agreement. No
party to this Agreement shall be bound hereby until a counterpart of this
Agreement has been executed by all parties hereto.
24. CONFLICT. In the event any term or provision hereof is inconsistent
with or conflicts with any provision of the Loan Documents, the terms or
provisions contained in this Agreement shall be controlling.
25. SURVIVAL. All covenants, agreements, undertakings, representations and
warranties made in the Loan Documents, including this Agreement, the Notes or
other documents and instruments referred to herein shall survive all closings
hereunder and shall not be affected by any investigation made by any party.
26. PARTIES BOUND. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors, assigns, heirs,
legal representatives and estates, provided, however, that Borrower may not,
without the prior written consent of the Banks, assign any rights, powers,
duties or obligations hereunder.
27. ASSIGNMENTS AND PARTICIPATIONS.
(a) Each Bank shall have the right to sell, assign or transfer all or
any part of its Note or Notes, its Revolving Commitments and its rights and
obligations hereunder to an Eligible Assignee; provided, that with each
sale, assignment or transfer (other than to an Affiliate, a Bank or a
Federal Reserve Bank), shall require the consent of Borrower and Agent,
which consents will not be unreasonably withheld; provided, however, that
no consent of Borrower shall be required if an Event of Default has
occurred and is continuing. Any such assignee, transferee or recipient
shall have, to the extent of such sale, assignment, or transfer, the same
rights, benefits and obligations as it would if it were such Bank and a
holder of such Note, Revolving Commitment and rights and obligations,
including, without limitation, the right to vote on decisions requiring
consent or approval of all Banks or Majority Banks and the obligation to
fund its Revolving Commitment; provided, further, that (1) each such sale,
assignment, or transfer (other than to an Affiliate, a Bank or a Federal
Reserve Bank) shall be in an aggregate principal amount not less than
$5,000,000, (2) each remaining Bank shall at all times maintain Revolving
Commitments then outstanding in an aggregate principal amount at least
equal to $1,000,000; (3) no Bank may offer to sell its Note or Notes,
Revolving Commitment, rights and obligations or interests therein in
violation of any securities laws; and (4) no such assignments (other than
to a Federal Reserve Bank) shall become effective until the assigning Bank
and its assignees delivers to Agent and Borrower an Assignment and
Acceptance and the Note or Notes subject to such assignment and other
documents evidencing any such assignment. An assignment fee in the amount
of $3,000 for each such assignment (other than to an Affiliate, a Bank or
the Federal Reserve Bank) will be payable to Agent by assignor or assignee.
Within five (5) Business Days after its receipt of copies of the Assignment
and Acceptance and the other documents relating thereto and the Note or
Notes, Borrower shall execute and deliver to Agent (for delivery to the
relevant assignee) a new Note or Notes evidencing such assignee's assigned
Revolving Commitment, and within a reasonable time after delivery of such
new Note or Notes to Agent, Agent shall return the old or replaced Note or
Notes to Borrower, and if the assignor Bank has retained a portion of its
Revolving Commitment, a replacement Note in the principal amount of the
Revolving Commitment retained by the assignor (except as provided in the
last sentence of this paragraph (a) such Note or Notes, to be in exchange
for, but not in
-41-
payment of, the Note or Notes held by such Bank). On and after the
effective date of an assignment hereunder, the assignee shall for all
purposes be a Bank, party to this Agreement and any other Loan Document
executed by the Banks and shall have all the rights and obligations of a
Bank under the Loan Documents, to the same extent as if it were an original
party thereto, and no further consent or action by Borrower, Banks or the
Agent shall be required to release the transferor Bank with respect to its
Revolving Commitment assigned to such assignee and the transferor Bank
shall henceforth be so released.
(b) Each Bank shall have the right to grant participations in all or
any part of such Bank's Notes and Revolving Commitment hereunder to one or
more pension plans, investment funds, financial institutions or other
Persons, provided, that:
(i) each Bank granting a participation shall retain the right to
vote hereunder, and no participant shall be entitled to vote hereunder
on decisions requiring consent or approval of Bank or Majority Banks
(except as set forth in (iii) below);
(ii) in the event any Bank grants a participation hereunder, such
Bank's obligations under the Loan Documents shall remain unchanged,
such Bank shall remain solely responsible to the other parties hereto
for the performance of such obligations, such Bank shall remain the
holder of any such Note or Notes for all purposes under the Loan
Documents, and Agent, each Bank and Borrower shall be entitled to deal
with the Bank granting a participation in the same manner as if no
participation had been granted; and
(iii) no participant shall ever have any right by reason of its
participation to exercise any of the rights of Banks hereunder, except
that any Bank may agree with any participant that such Bank will not,
without the consent of such participant (which consent may not be
unreasonably withheld) consent to any amendment or waiver requiring
approval of all Banks.
(iv) It is understood and agreed that any Bank may provide to
assignees and participants and prospective assignees and participants
financial information and reports and data concerning Borrower's
properties and operations which was provided to such Bank pursuant to
this Agreement.
(v) Upon the reasonable request of either Agent or Borrower,
each Bank will identify those to whom it has assigned or participated
any part of its Notes and Revolving Commitment, and provide the
amounts so assigned or participated.
28. CHOICE OF FORUM: CONSENT TO SERVICE OF PROCESS AND JURISDICTION. THE
OBLIGATIONS OF BORROWER UNDER THE LOAN DOCUMENTS ARE PERFORMABLE IN XXXXXX
COUNTY, TEXAS. ANY SUIT, ACTION OR PROCEEDING AGAINST THE BORROWER WITH RESPECT
TO THE LOAN DOCUMENTS OR ANY JUDGMENT ENTERED BY ANY COURT IN RESPECT THEREOF,
MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS, COUNTY OF XXXXXX, OR IN THE
UNITED STATES COURTS LOCATED IN XXXXXX COUNTY, TEXAS AND THE BORROWER HEREBY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF SUCH COURTS FOR THE PURPOSE OF ANY
SUCH SUIT, ACTION OR PROCEEDING. THE BORROWER HEREBY IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN ANY SUIT, ACTION OR PROCEEDING IN SAID COURT BY THE
MAILING THEREOF BY BANK BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE
BORROWER, AS APPLICABLE, AT THE ADDRESS FOR NOTICES AS PROVIDED IN SECTION 16.
THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR
-42-
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO ANY LOAN DOCUMENT BROUGHT IN THE COURTS LOCATED IN THE
STATE OF TEXAS, COUNTY OF XXXXXX, AND HEREBY FURTHER IRREVOCABLY WAIVES ANY
CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM.
29. WAIVER OF JURY TRIAL. THE BORROWER HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.
30. OTHER AGREEMENTS. THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
31. FINANCIAL TERMS. All accounting terms used in this Agreement which are
not specifically defined herein shall be construed in accordance with GAAP.
REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK
-43-
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.
BORROWER:
XXXXXX OCEANICS PACIFIC LIMITED
a Cayman Islands company
By: /s/ XXXXXXX XXXXXXXX
--------------------------------
Xxxxxxx Xxxxxxxx, Director
GUARANTORS:
XXXXXX OCEANICS, INC.,
a Texas corporation
By: /s/ XXXX X. XXXXX
--------------------------------
Xxxx X. Xxxxx
President
By: /s/ XXXXX X. XXXXXXX
--------------------------------
Xxxxx X. Xxxxxxx
Senior Vice President
XXXXXX DEEP SEAS, LTD.,
a Texas limited partnership
By: Xxxxxx Xxxxxx Co.,
its general partner
By: /s/ XXXXX X. XXXXXXX
----------------------------
Xxxxx X. Xxxxxxx
Vice President
XXXXXX OCEANICS AUSTRALIA PTY
LIMITED, an Australian corporation
By: /s/ XXXXX XXXXX
--------------------------------
Name: Xxxxx Xxxxx
Title: Attorney
-44-
BANKS:
Revolving Commitment: BANK ONE, NA, a national
$16,000,001 banking association (Main Office Chicago)
as a Bank and as Administrative Agent
By: /s/ XXXXXXX X. XXXXX
--------------------------------
Xxxxxxx X. Xxxxx
Director, Capital Markets
Address for Notices for
operational matters:
1 Bank One Plaza, IL 1-0634
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxx Xxxx
Telephone No.: (000) 000-0000
Fax No.: (000) 000-0000
Address for Notices for
credit matters:
0000 Xxxx Xxxxxx
Xxxxxx, Xxxxx 00000
Attention: Xxxxxxx Xxxxxxx
Telephone No.: (000) 000-0000
Fax No.: (000) 000-0000
-45-
Revolving Commitment: CREDIT LYONNAIS, NEW YORK BRANCH
$12,857,143 as a Bank and as Syndication Agent
By: /s/ XXXXXXX XXXXXXXXX
--------------------------------
Name: Xxxxxxx Xxxxxxxxx
Title: Senior Vice President
Address for Notices for
operational matters:
Credit Lyonnais
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx Xxxxx
--------------------
Telephone No.: (000) 000-0000
Fax No.: (000) 000-0000
Address for Notices for credit matters:
Credit Lyonnais
0000 Xxxxxx Xxxxxx
Xxxxxxx, Xxxxx 00000
Attention: Xxxxxx Xxxxxxx
-----------------------
Telephone No.: (000) 000-0000
Fax No.: (000) 000-0000
-46-
Revolving Commitment: FORTIS CAPITAL CORP.
$13,142,857 as a Bank and as Syndication Agent
By: /s/ XXXXXXXXXXX XXXXXX
--------------------------------
Name: Xxxxxxxxxxx Xxxxxx
Title: Managing Director
By: /s/ CHR. XXXXXX XXXXXX
--------------------------------
Name: Chr. Xxxxxx Xxxxxx
Title: Assistant Vice President
Address for Notices for
operational matters:
Three Stanford Plaza
000 Xxxxxxx Xxxxxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
Attention: Xxxxxxx Xxxxxxx-Xxxxx
-----------------------
Telephone No.: (000) 000-0000
Fax No.: (000) 000-0000
Address for Notices for
credit matters:
Three Stanford Plaza
000 Xxxxxxx Xxxxxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
Attention: Chr. Xxxxxx Xxxxxx
------------------------
Telephone No.: (000) 000-0000
Fax No.: (000) 000-0000
-47-
Revolving Commitment: NORDEA, ACTING THROUGH NORDEA BANK
$15,714,286 FINLAND PLC, NEW YORK BRANCH, as a Bank
and as Documentation Agent
By: /s/ XXXXXX XXXXXX
--------------------------------
Name: Xxxxxx Xxxxxx
Title: Senior Vice President
By: /s/ HANS CHR. KJELSRUD
--------------------------------
Name: Hans Chr. Kjelsrud
Title: Senior Vice President
Address for Notices for
operational matters:
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Loan Administration
Telephone No.: (000) 000-0000
Fax No.: (000) 000-0000
Address for Notices for
credit matters:
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Shipping, Offshore & Oil
Services
Telephone No.: (000) 000-0000
Fax No.: (000) 000-0000
-48-
Revolving Commitment: THE BANK OF TOKYO-MITSUBISHI, LTD.
$5,714,286
By: /s/ XXXXXX XXXXX
--------------------------------
Name: Xxxxxx Xxxxx
Title: Deputy General Manager
Address for Notices for
operational matters:
0000 Xxxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxxxx Xxxxx
-------------------------
Telephone No.: (000) 000-0000
Fax No.: (000) 000-0000
Address for Notices for
credit matters:
0000 Xxxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxxxxx Xxxxxxxx
-------------------------
Telephone No.: (000) 000-0000
Fax No.: (000) 000-0000
-49-
Revolving Commitment: CREDIT AGRICOLE INDOSUEZ
$10,285,714
By: /s/ XXXXXXXX XXXXXXXXX
--------------------------------
Name: Xxxxxxxx Xxxxxxxxx
-------------------------
Title: Assistant Vice President
-------------------------
By: /s/ MARYVONNE DOURVER
--------------------------------
Name: Maryvonne Dourver
-------------------------
Title: Vice President
-------------------------
Address for Notices for
operational matters:
Credit Agricole Indosuez
0, Xxxx Xx Xxxxxxxxx Xxxx Xxxxxx
00000 Xx Defense Cedex
FRANCE
Attention: Xxxxxx Xxxxx-Xxxxxx/Sophie
Guittet
Telephone No.: x00 000 00 00 00
Fax No.: x00 000 00 00 00
Address for Notices for
credit matters:
Credit Agricole Indosuez
Representative Office Norway
X.X. Xxx 0000
0000 Xxxx Xxxxxx
Attention: Xxxxx Xxxxxx
Telephone No. x00 00 00 00 00
Fax No.: x00 00 00 00 00
-50-
Revolving Commitment: NATEXIS BANQUES POPULAIRES
$7,428,571
By: /s/ XXXXXXX X. XXXXXXX
--------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President and
Group Manager
By: /s/ XXXXXXX X. XXXXXXXXX
--------------------------------
Name: Xxxxxxx X. Xxxxxxxxx
Title: Vice President
-51-
Revolving Commitment: THE FUJI BANK, LIMITED,
$7,428,571 HOUSTON AGENCY
By: ________________________________
Name: ______________________________
Title: _____________________________
Address for Notices for
operational matters:
------------------------------------
------------------------------------
Attention: _____________________
Telephone No.: _____________________
Fax No.: _____________________
Address for Notices for
credit matters:
------------------------------------
------------------------------------
Attention: _____________________
Telephone No.: _____________________
Fax No.: _____________________
-52-
Revolving Commitment: WHITNEY NATIONAL BANK
$11,428,571
By: /s/ XXXXX X. XXXXXX
--------------------------------
Name: Xxxxx X. Xxxxxx
Title: Senior Vice President
By: ________________________________
Name: ______________________________
Title: _____________________________
Address for Notices for
operational matters:
------------------------------------
------------------------------------
Attention: Xxxxx Xxxxxxxxxx
-----------------------
Telephone No.: (000) 000-0000
-----------------------
Fax No.: (000) 000-0000
-----------------------
Address for Notices for
credit matters:
000 Xx. Xxxxxxx Xxxxxx
Xxx Xxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxx
-----------------------
Telephone No.: (000) 000-0000
-----------------------
Fax No.: (000) 000-0000
-----------------------
-53-
