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EXHIBIT 10.19
CREDIT AGREEMENT
THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT, dated as of April 21,
2000, is entered into by and among:
(1) LSI LOGIC CORPORATION, a Delaware corporation ("LSI");
(2) LSI LOGIC JAPAN SEMICONDUCTOR, INC., a Japanese corporation
("LLJS");
(3) Each of the financial institutions from time to time listed
in Schedule I hereto, as amended from time to time (such financial
institutions to be referred to herein collectively as "Lenders"); and
(4) ABN AMRO BANK N.V., as agent for Lenders (in such capacity,
"Agent").
RECITALS
A. LSI and LLJS (collectively, "Borrowers") and ABN AMRO Bank N.V., as a
Lender and as Agent, are parties to that certain Credit Agreement, dated as of
August 5, 1998 (the "Original Credit Agreement"), pursuant to which Lenders have
provided certain credit facilities to each of Borrowers severally, but not
jointly, upon the terms and subject to the conditions set forth therein.
B. The Original Credit Agreement was amended and restated at the time
additional parties became Lenders by that certain Amended and Restated Credit
Agreement, dated as of September 22, 1998, by and among Borrowers, Lenders and
Agent, which has been further amended by Amendment No. 1 to Credit Agreement,
dated as of March 4, 1999, Amendment No. 2 to Credit Agreement, dated as of
November 12, 1999, and Amendment No. 3 to Credit Agreement, dated as of February
15, 2000 (collectively, the "Existing Credit Agreement").
C. Borrowers have requested that the Existing Credit Agreement be
amended in certain respects to be consistent with the terms of a "synthetic"
lease of equipment by LSI in which certain parties that are Lenders hereunder
will be acquiring participation interests in the rental and certain other
payments to be made by LSI as lessee, and Borrowers, Lenders and Agent have
agreed to amend the Existing Credit Agreement upon the terms and subject to the
conditions set forth herein. For convenience of reference, the parties hereto
wish to restate the Existing Credit Agreement as so amended in its entirety.
AGREEMENT
NOW, THEREFORE, in consideration of the above Recitals and the mutual
covenants herein contained, the parties hereto hereby agree that the Existing
Credit Agreement shall be amended and restated as of the date hereof to read in
its entirety as follows:
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SECTION I. INTERPRETATION.
1.01. Definitions. Unless otherwise indicated in this Agreement or any
other Credit Document, each term set forth below, when used in this Agreement or
any other Credit Document, shall have the respective meaning given to that term
below or in the provision of this Agreement or other document, instrument or
agreement referenced below.
"ABN AMRO" shall mean ABN AMRO Bank N.V.
"Acquisition" shall mean any transaction or series of related
transactions for the purpose of or resulting in (a) the acquisition,
directly or indirectly, of all or substantially all of the assets of a
Person or of any business or division of a Person, (b) the acquisition,
directly or indirectly, of all or substantially all of the capital
stock, obligations or other securities of or interest in a Person, or
(c) a merger or consolidation or any other combination by either
Borrower or any of its Subsidiaries with another Person.
"Affiliate" shall mean any Person which, directly or indirectly,
controls, is controlled by or is under common control with another
Person. For purposes of the foregoing, "control" with respect to any
Person shall mean the possession, directly or indirectly, of the power
(a) to vote twenty-five percent (25%) or more of the securities having
ordinary voting power for the election of directors of such Person, or
(b) to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities or by
contract or otherwise.
"Agent" shall have the meaning given to that term in clause (4)
of the introductory paragraph hereof.
"Agent's Fee Letter" shall mean the letter agreement dated as of
July 17, 1998 between LSI and Agent.
"Agent's Syndication Letter" shall mean the letter agreement
dated as of August 5, 1998 between LSI and Agent.
"Agreement" shall mean this Amended and Restated Credit
Agreement.
"Applicable Lending Office" shall mean:
(a) With respect to any U.S. Lender and any U.S.
Borrowing, (i) in the case of any Base Rate Loan, such Lender's
Domestic Lending Office, and (ii) in the case of any LIBOR Loan,
such Lender's Euro-Dollar Lending Office; and
(b) With respect to any Japanese Lender and the Japanese
Borrowing, such Lender's Japanese Lending Office.
"Applicable Margin" shall mean, with respect to any Borrowing at
any time, the per annum margin which is determined pursuant to the
Pricing Grid and added to the Base Rate, LIBO Rate or TIBO Rate, as the
case may be, for such Borrowing; provided,
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however, that each Applicable Margin determined pursuant to the Pricing
Grid shall be increased by two percent (2.00%) per annum on the date an
Event of Default occurs and shall continue at such increased rate unless
and until such Event of Default is cured or waived in accordance with
this Agreement. The Applicable Margins shall be determined as provided
in the Pricing Grid and may change for each Pricing Period.
"Assignee Lender" shall have the meaning given to that term in
Subparagraph 8.05(c).
"Assignment" shall have the meaning given to that term in
Subparagraph 8.05(c).
"Assignment Agreement" shall have the meaning given to that term
in Subparagraph 8.05(c).
"Assignment Effective Date" shall have, with respect to each
Assignment Agreement, the meaning set forth therein.
"Assignor Lender" shall have the meaning given to that term in
Subparagraph 8.05(c).
"Bankruptcy Code" shall mean Title 11 of the United States Code
entitled "Bankruptcy."
"Base Rate" shall mean, on any day, the greater of (a) the Prime
Rate in effect on such date and (b) the Federal Funds Rate for such day
plus one-half percent (0.50%).
"Base Rate Loan" shall mean, at any time, a U.S. Loan which then
bears interest at a rate specified in clause (i) of Subparagraph
2.01(d).
"Borrowers" shall have the meaning given to that term in Recital
A.
"Borrowing" shall mean a U.S. Borrowing or the Japanese
Borrowing.
"Business Day" shall mean any day on which commercial banks are
not authorized or required to close in San Francisco, California,
Chicago, Illinois, or New York, New York and (a) if such Business Day is
related to a LIBOR Loan, dealings in Dollar deposits are carried out in
the London interbank market and commercial banks are open for business
in London or (b) if such Business Day is related to the Japanese
Borrowing, dealings in Yen deposits are carried out in the Tokyo
interbank market and commercial banks are open for business in Tokyo.
"Capital Adequacy Requirement" shall have the meaning given to
that term in Subparagraph 2.10(d).
"Capitalized Interest" shall mean interest that is incurred or
accrued in any period and added to the cost of the asset in connection
with which such interest is incurred.
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"Capital Lease" shall mean, for any Person, any lease of property
(whether real, personal or mixed) which, in accordance with GAAP, would,
at the time a determination is made, be required to be recorded as a
capital lease in respect of which such Person is liable as lessee.
"Change of Control" shall mean
(a) With respect to LSI, (i) the acquisition after the
date hereof by any person or group of persons (within the meaning
of Section 13 or 14 of the Securities Exchange Act of 1934 (as
amended, the "Exchange Act")) of (A) beneficial ownership (within
the meaning of Rule 13d-3 promulgated by the SEC under the
Exchange Act) of thirty percent (30%) or more of the outstanding
equity securities of LSI entitled to vote for members of the
Board of Directors of LSI, or (B) all or substantially all of the
assets of LSI; or (ii) during any period of twelve (12)
consecutive calendar months, individuals who are directors of LSI
on the first day of such period ("Initial Directors") and any
directors of LSI who are specifically approved by two-thirds of
the Initial Directors and previously-approved Directors shall
cease to constitute a majority of the Board of Directors of LSI
before the end of such period; or
(b) With respect to LLJS, LSI shall cease to own directly
or indirectly one hundred percent (100%) of the equity securities
of LLJS, except for any nominal amount of director stock
necessary to do business in Japan.
"Change of Law" shall have the meaning given to that term in
Subparagraph 2.10(b).
"Closing Date" shall mean the U.S. Closing Date or the Japanese
Closing Date.
"Commitment Fees" shall mean, collectively, the U.S. Revolving
Commitment Fees and the U.S. 364 Day Commitment Fees.
"Commitments" shall mean, collectively, the U.S. Revolving
Commitments, the U.S. 364 Day Commitments and the Japanese Commitments.
"Compliance Certificate" shall have the meaning given to that
term in clause (iii) of Subparagraph 5.01(a).
"Consolidated CMLTD" shall mean, as of any date of determination,
the portion of long-term indebtedness coming due in the current quarter
and the next succeeding three-quarter period as determined in accordance
with GAAP.
"Consolidated Current Liabilities" shall mean, as of any date of
determination, the sum of current liabilities of LSI and its
Subsidiaries on a consolidated basis, as determined in accordance with
GAAP, plus (without duplication) Guaranty Obligations with respect to
that portion of the underlying obligations which come due within one
year of such date of determination.
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"Consolidated EBITDA" shall mean, for any period, Consolidated
Net Income plus Consolidated Interest Expense plus income tax expense
plus depreciation expense and amortization expense, which were deducted
in determining Consolidated Net Income, of LSI and its Subsidiaries on a
consolidated basis, as determined in accordance with GAAP.
"Consolidated Interest Expense" shall mean, for any period,
interest expense (including interest expense attributable to Capital
Leases) of LSI and its Subsidiaries on a consolidated basis, as
determined in accordance with GAAP.
"Consolidated Net Income" shall mean, for any period, the net
income of LSI and its Subsidiaries on a consolidated basis for such
period taken as a single accounting period, as determined in accordance
with GAAP.
"Consolidated Quick Assets" shall mean, as of any date of
determination, the sum of all unencumbered and unrestricted (except
those encumbered or restricted in favor of Agent or Lenders as security
for the Obligations) cash, cash equivalents and net accounts receivable
classified as current assets according to GAAP, of LSI and its
Subsidiaries on a consolidated basis, as determined in accordance with
GAAP.
"Consolidated Tangible Net Worth" shall mean, as of any date of
determination, Consolidated Total Assets minus Consolidated Total
Liabilities, minus (a) all assets which would be classified in a
separate account as intangible assets in accordance with GAAP, including
goodwill, organizational expense, research and development expense,
capitalized software, patent applications, patents, trademarks, trade
names, brands, copyrights, trade secrets, customer lists, licenses,
franchises and covenants not to compete, (b) all unamortized debt
discount and expense and (c) all treasury stock; provided, however, that
to the extent otherwise included in the amount set forth in the
foregoing clause (a) of this definition, there shall be excluded from
such amount the sum of (i) all engineering costs incurred in connection
with the development of major production capabilities at new
manufacturing facilities or refurbishment of an existing facility or
with respect to introducing a new manufacturing process to existing or
new manufacturing facilities and which are classified as a fixed asset
and capitalized on the consolidated balance sheet of LSI in accordance
with GAAP and (ii) amounts representing the capitalized portion of the
acquisition and development costs of software necessary for the
operation of the business of LSI and its Subsidiaries, as shown on the
consolidated balance sheet of LSI.
"Consolidated Total Assets" shall mean, as of any date of
determination, the total assets of LSI and its Subsidiaries on a
consolidated basis, as determined in accordance with GAAP.
"Consolidated Total Debt" shall mean, as of any date of
determination, all Indebtedness of LSI and its Subsidiaries on a
consolidated basis, as determined in accordance with GAAP.
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"Consolidated Total Liabilities" shall mean, as of any date of
determination, the total liabilities of LSI and its Subsidiaries on a
consolidated basis, as determined in accordance with GAAP.
"Contractual Obligation" of any Person shall mean, any indenture,
note, lease, loan agreement, security, deed of trust, mortgage, security
agreement, guaranty, instrument, contract, agreement or other form of
contractual obligation or undertaking to which such Person is a party or
by which such Person or any of its property is bound.
"Credit Documents" shall mean and include this Agreement, the
Notes, the LSI Guaranty, the Lender Rate Contracts, the Agent's Fee
Letter and the Agent's Syndication Letter; all other documents,
instruments and agreements delivered to Agent or any Lender pursuant to
Section III; and all other documents, instruments and agreements
delivered to Agent or any Lender in connection with this Agreement on or
after the date of this Agreement.
"Credit Event" shall mean the making of any Loan; the conversion
of any U.S. Loan into a LIBOR Loan; the selection of a new Interest
Period for a LIBOR Loan; or the selection of a new Interest Period
exceeding one (1) month for the Japanese Borrowing.
"Default" shall mean an Event of Default or any event or
circumstance not yet constituting an Event of Default which, with the
giving of any notice or the lapse of any period of time or both, would
become an Event of Default.
"Defaulting Lender" shall mean a Lender which has failed to fund
its portion of any Borrowing which it is required to fund under this
Agreement and has continued in such failure for three (3) Business Days
after written notice from Agent.
"Dollar Equivalent" shall mean, as to any amount denominated in
Yen as of any date of determination, the equivalent amount in Dollars as
determined by Agent on the basis of the Telegraphic Transfer Mid Rate
quoted by Bank of Tokyo Mitsubishi at or about 10:00 a.m. (Tokyo time)
on such date.
"Dollars" and "$" shall mean the lawful currency of the United
States of America and, in relation to any payment under this Agreement,
same day or immediately available funds.
"Domestic Lending Office" shall mean, with respect to any U.S.
Lender and any U.S. Borrowing, (a) initially, its office designated as
such in Part B of Schedule I (or, in the case of any U.S. Lender which
becomes a U.S. Lender by an assignment pursuant to Subparagraph 8.05(c),
its office designated as such in the applicable Assignment Agreement)
and (b) subsequently, such other office or offices as such U.S. Lender
may designate to Agent as the office at which such Lender's Base Rate
Loans will thereafter be maintained and for the account of which all
payments of principal of, and interest on, such Lender's Base Rate Loans
will thereafter be made.
"Eligible Assignee" shall mean a commercial bank having a
combined capital and surplus of at least $100,000,000, or another
financial institution which is a qualified
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institutional buyer as defined in Rule 144A under the Securities Act of
1933, as amended, that is acting through a branch or agency or an office
located in (a) the United States, in the case of a potential Assignee
Lender that is to become a U.S. Lender or (b) Japan, in the case of a
potential Assignee Lender that is to become a Japanese Lender.
"Environmental Laws" shall mean all federal, state or local laws,
statutes, common law duties, rules, regulations, ordinances and codes,
together with all administrative orders, directives, requests, licenses,
authorizations and permits of, and agreements with (including consent
decrees), any Governmental Authorities, in each case relating to or
imposing liability or standards of conduct concerning public health,
safety and environmental protection matters, including the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, the
Clean Air Act, the Federal Water Pollution Control Act of 1972, the
Solid Waste Disposal Act, the Federal Resource Conservation and Recovery
Act, the Toxic Substances Control Act, the Emergency Planning and
Community Right-to-Know Act, the California Hazardous Waste Control Law,
the California Solid Waste Management, Resource Recovery and Recycling
Act, the California Water Code and the California Health and Safety
Code.
"Equity Capital" shall mean, as of any date of determination,
Consolidated Total Assets minus Consolidated Total Liabilities
(exclusive of the cumulative translation adjustment account as reported
in the consolidated balance sheet of LSI and its Subsidiaries as of such
date).
"ERISA" shall mean the Employee Retirement Income Security Act of
1974.
"ERISA Affiliate" shall mean any trade or business (whether or
not incorporated) which is under common control with LSI within the
meaning of Section 4001(a)(14) of ERISA and Sections 414(b), (c) and (m)
of the IRC.
"ERISA Event" shall mean (a) a Reportable Event with respect to a
Pension Plan; (b) a withdrawal by LSI or any ERISA Affiliate from a
Pension Plan subject to Section 4063 of ERISA during a plan year in
which it was a substantial employer (as defined in Section 4001(a)(2) of
ERISA) or a cessation of operations which is treated as such a
withdrawal under Section 4062(e) of ERISA; (c) the filing of a notice of
intent to terminate, the treatment of a plan amendment as a termination
under Section 4041 or 4041A of ERISA or the commencement of proceedings
by the PBGC to terminate a Pension Plan subject to Title IV of ERISA;
(d) a failure by LSI or any ERISA Affiliate to make required
contributions to a Pension Plan or other Plan subject to Section 412 of
the IRC; (e) an event or condition which might reasonably be expected to
constitute grounds under Section 4042 of ERISA for the termination of,
or the appointment of a trustee to administer, any Pension Plan; (f) the
imposition of any liability under Title IV of ERISA, other than PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon LSI or
any ERISA Affiliate; or (g) an application for a funding waiver or an
extension of any amortization period pursuant to Section 412 of the IRC
with respect to any Pension Plan.
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"Euro-Dollar Lending Office" shall mean, with respect to any U.S.
Lender and any U.S. Borrowing, (a) initially, such Lender's office
designated as such in Part B of Schedule I (or, in the case of any U.S.
Lender which becomes a U.S. Lender by an assignment pursuant to
Subparagraph 8.05(c), its office designated as such in the applicable
Assignment Agreement) and (b) subsequently, such other office or offices
as such Lender may designate to Agent as the office at which such
Lender's LIBOR Loans will thereafter be maintained and for the account
of which all payments of principal of, and interest on, such Lender's
LIBOR Loans will thereafter be made.
"Event of Default" shall have the meaning given to that term in
Paragraph 6.01.
"Existing Credit Agreement" shall have the meaning given to that
term in Recital B.
"Federal Funds Rate" shall mean, for any day, the rate per annum
set forth in the weekly statistical release designated as H.15 (519), or
any successor publication, published by the FRB (including any such
successor publication, "H.15 (519)") for such day opposite the caption
"Federal Funds (Effective)". If on any relevant day, such rate is not
yet published in H.15 (519), the rate for such day shall be the rate set
forth in the daily statistical release designated as the Composite 3:30
p.m. Quotations for U.S. Government Securities, or any successor
publication, published by the Federal Reserve Bank of New York
(including any such successor publication, the "Composite 3:30 p.m.
Quotations") for such day under the caption "Federal Funds Effective
Rate". If on any relevant day, such rate is not yet published in either
H.15 (519) or the Composite 3:30 p.m. Quotations, the rate for such day
shall be the arithmetic means, as determined by Agent, of the rates
quoted to Agent for such day by three (3) federal funds brokers of
recognized standing selected by Agent for overnight federal funds
transactions.
"Financial Statements" shall mean, with respect to any accounting
period for any Person, statements of income, shareholders' equity and
cash flows of such Person for such period, and a balance sheet of such
Person as of the end of such period, setting forth in each case in
comparative form figures for the corresponding period in the preceding
fiscal year if such period is less than a full fiscal year or, if such
period is a full fiscal year, corresponding figures from the preceding
annual audit, all prepared in reasonable detail and in accordance with
GAAP.
"Foreign Plan" shall mean any employee benefit plan maintained by
LSI, LLJS or any of their Subsidiaries which is mandated or governed by
any Governmental Rule of any Governmental Authority other than the
United States.
"FRB" shall mean the Board of Governors of the Federal Reserve
System, and any Governmental Authority succeeding to any of its
principal functions.
"GAAP" shall mean generally accepted accounting principles set
forth from time to time in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified
Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board (or agencies with similar functions of
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comparable stature and authority within the U.S. accounting profession),
which are applicable to the circumstances as of the date of
determination.
"Governmental Authority" shall mean any domestic or foreign
national, state or local government, any political subdivision thereof,
any department, agency, authority or bureau of any of the foregoing, or
any other entity exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to government, including,
without limitation, the Federal Deposit Insurance Corporation, the FRB,
the Comptroller of the Currency, any central bank or any comparable
authority.
"Governmental Charges" shall mean, with respect to any Person,
all levies, assessments, fees, claims or other charges imposed by any
Governmental Authority upon such Person or any of its property or
otherwise payable by such Person.
"Governmental Rule" shall mean any law, rule, regulation,
ordinance, order, code interpretation, judgment, decree, directive,
guidelines, policy or similar form of decision of any Governmental
Authority.
"Guaranty Obligation" shall mean, as applied to any Person, any
direct or indirect liability, contingent or otherwise, of that Person:
(a) With respect to any Indebtedness, lease (other than an
operating lease), dividend, or other obligation (the "primary
obligations") of another Person (the "primary obligor"),
including any obligation of that Person (i) to purchase,
repurchase or otherwise acquire such primary obligations or any
property constituting direct or indirect security therefor, or
(ii) to advance or provide funds (A) for the payment or discharge
of any such primary obligation, or (B) to maintain working
capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency or any balance sheet item,
level of income or financial condition of the primary obligor, or
(iii) to purchase property, securities or services primarily for
the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor to make payment of such
primary obligation, or (iv) otherwise to assure or hold harmless
the holder of any such primary obligation against loss in respect
thereof;
(b) (i) With respect to letters of credit, acceptances,
bank guaranties, surety bonds or similar instruments issued for
the account of that Person or as to which that Person is
otherwise liable for reimbursement of drawings, or (ii) as a
partner or joint venturer in any partnership or joint venture;
(c) With respect to "synthetic" leases; or
(d) Net obligations with respect to Rate Contracts, other
than Rate Contracts entered into in connection with a bona fide
hedging operation that provides offsetting benefits to such
Person.
"Hazardous Substances" shall mean any toxic or hazardous
substances, materials, wastes, contaminants or pollutants, including
asbestos, PCBs, petroleum products and
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byproducts, and any substances defined or listed as "hazardous
substances," "hazardous materials," "hazardous wastes" or "toxic
substances" (or similarly identified), regulated under or forming the
basis for liability under any applicable Environmental Law.
"Indebtedness" shall mean, for any Person, without duplication:
(a) All indebtedness or other obligations of such Person
for borrowed money;
(b) All obligations of such Person for the deferred
purchase price of property or services (including obligations
under credit facilities which secure or finance such purchase
price and obligations under "synthetic" leases), other than trade
payables incurred by such Person in the ordinary course of its
business on ordinary terms;
(c) All obligations evidenced by notes, bonds, debentures
or similar instruments, including obligations so evidenced
incurred in connection with the acquisition of property, assets
or businesses;
(d) All indebtedness created or arising under any
conditional sale or other title retention agreement with respect
to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such
property);
(e) All obligations under Capital Leases;
(f) All Guaranty Obligations other than Guaranty
Obligations described in clauses (a)(iii) and (a)(iv) of the
definition of "Guaranty Obligation" where the primary obligor is
a Subsidiary; and
(g) All indebtedness of another Person secured by any Lien
upon or in property owned by the Person for whom Indebtedness is
being determined, whether or not such Person has assumed or
become liable for the payment of such indebtedness of such other
Person; provided, that if such indebtedness is not assumed and
recourse is limited solely to such property, the Indebtedness
incurred hereunder shall be valued at the lesser of the principal
amount of the obligation so secured or the fair market value of
the property subject to such Lien.
"Initial Closing Date" shall mean the earlier of the U.S. Closing
Date and the Japanese Closing Date. (If the U.S. Closing Date and the
Japanese Closing Date are the same date, the Initial Closing Date and
the Second Closing Date shall be the same date.)
"Interest Period" shall mean:
(a) With respect to any LIBOR Loan, the time period
selected by LSI pursuant to Subparagraph 2.01(c) or Subparagraph
2.01(e) which commences on the first day of such U.S. Borrowing
or the effective date of any conversion and ends on the last day
of such time period, and thereafter, each subsequent time
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period selected by LSI pursuant to Subparagraph 2.01(f) which
commences on the last day of the immediately preceding time
period and ends on the last day of that time period; and
(b) With respect to the Japanese Borrowing, the time
period selected by LLJS pursuant to Subparagraph 2.02(b) which
commences on the first day of the Japanese Borrowing and ends on
the last day of such time period, and thereafter, each subsequent
time period selected by LLJS pursuant to Subparagraph 2.02(d)
which commences on the last day of the immediately preceding time
period and ends on the last day of that time period.
"IRC" shall mean the Internal Revenue Code of 1986.
"IRS" shall mean the Internal Revenue Service, or any successor
thereto.
"Japanese Borrowing" shall mean the borrowing by LLJS consisting
of Japanese Loans made by the Japanese Lenders on the Japanese Closing
Date. Any reference to the Japanese Borrowing shall include the Japanese
Loans.
"Japanese Closing Date" shall mean the date, not later than
August 31, 1998, designated by LLJS in the Notice of Japanese Borrowing
as the date of the Japanese Borrowing.
"Japanese Commitment" shall mean, with respect to each Lender,
the Yen amount set forth under the caption "Japanese Commitment"
opposite such Lender's name on Part A of Schedule I, or, if changed,
such Yen amount as may be set forth for such Lender in the Register.
"Japanese Lender" shall mean (a) prior to the Japanese Closing
Date, a Lender having a Japanese Commitment or (b) thereafter, a Lender
having a Japanese Loan.
"Japanese Lending Office" shall mean, with respect to any
Japanese Lender and the Japanese Borrowing, (a) initially, such Lender's
office designated as such in Part B of Schedule I (or, in the case of
any Japanese Lender which becomes a Japanese Lender by an assignment
pursuant to Subparagraph 8.05(c), its office designated as such in the
applicable Assignment Agreement) and (b) subsequently, such other office
or offices as such Lender may designate to Agent as the office at which
such Lender's Japanese Loans will thereafter be maintained and for the
account of which all payments of principal of, and interest on, such
Lender's Japanese Loans will thereafter be made.
"Japanese Loan" shall have the meaning given to that term in
Subparagraph 2.02(a).
"Lender Rate Contract" shall mean any Rate Contract entered into
by either Borrower or any of its Subsidiaries with a Lender or its
Affiliates as permitted by this Agreement of which Agent will be given
written notice upon the occurrence and during the continuance of an
Event of Default.
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"Lenders" shall have the meaning given to that term in clause (3)
of the introductory paragraph hereof.
"LIBO Rate" shall mean, with respect to any Interest Period for
the LIBOR Loans in any U.S. Borrowing, a rate per annum equal to the
quotient (rounded upward if necessary to the nearest 1/100 of one
percent) of (a) the arithmetic mean (rounded upward if necessary to the
nearest 1/16 of one percent) of the rates per annum appearing on
Telerate Page 3750 (or any successor publication) on the second Business
Day prior to the first day of such Interest Period at or about 11:00
A.M. (London time) (for delivery on the first day of such Interest
Period) for a term comparable to such Interest Period, divided by (b)
one minus the Reserve Requirement for such LIBOR Loans in effect from
time to time. If for any reason rates are not available as provided in
clause (a) of the preceding sentence, the rate to be used in clause (a)
shall be, at the Agent's discretion, (i) the rate per annum at which
Dollar deposits are offered to Agent in the London interbank market or
(ii) the rate at which Dollar deposits are offered to Agent in, or by
Agent to major banks in, any offshore interbank market selected by
Agent, in each case on the second Business Day prior to the commencement
of such Interest Period at or about 10:00 A.M. (New York time) (for
delivery on the first day of such Interest Period) for a term comparable
to such Interest Period and in an amount approximately equal to the
amount of the LIBOR Loan to be made or funded by Agent as part of such
U.S. Borrowing. The LIBO Rate shall be adjusted automatically as to all
LIBOR Loans then outstanding as of the effective date of any change in
the Reserve Requirement.
"LIBOR Loan" shall mean, at any time, a U.S. Loan which then
bears interest at a rate specified in clause (ii) of Subparagraph
2.01(d).
"Lien" shall mean any mortgage, deed of trust, pledge, security
interest, assignment, deposit arrangement, charge or encumbrance, lien
(statutory or other), or other preferential arrangement (including any
conditional sale or other title retention agreement, or any financing
lease having substantially the same economic effect as any of the
foregoing or any agreement to give any security interest, but excluding
any operating lease, regardless of whether precautionary filings are
made in respect thereof under Section 9408 of the California Uniform
Commercial Code).
"LLJS" shall have the meaning given to that term in clause (2) of
the introductory paragraph hereof.
"Loan" shall mean a U.S. Revolving Loan, a U.S. 364 Day Loan or a
Japanese Loan.
"Loan Account" shall have the meaning given to that term in
Subparagraph 2.07(a).
"LSI" shall have the meaning given to that term in clause (1) of
the introductory paragraph hereof.
"LSI Guaranty" shall have the meaning given to that term in
Subparagraph 2.13(a).
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"Material Adverse Effect" shall mean (a) a material adverse
change in, or a material adverse effect upon, the operations, business,
properties, condition (financial or otherwise) or prospects of either
Borrower or either Borrower and its Subsidiaries taken as a whole; (b) a
material impairment of the ability of either Borrower to perform its
Obligations or to pay any Indebtedness described in Subparagraph
6.01(e); or (c) a material adverse effect upon the legality, validity,
binding effect or enforceability of any Credit Document.
"Maturity" shall mean, with respect to any Loan, interest, fee or
other amount payable by either Borrower under this Agreement or the
other Credit Documents, the date such Loan, interest, fee or other
amount becomes due, whether upon the stated maturity or due date, upon
acceleration or otherwise.
"Multiemployer Plan" shall mean a "multiemployer plan" as defined
in Sections 3(37) and 4001(a)(3) of ERISA.
"Net Proceeds" shall mean, with respect to any sale of any asset
(including any sale of assets to be leased back in connection with a
"synthetic" lease of such assets) or any sale or issuance of any
Indebtedness or equity securities by any Person, the aggregate
consideration received by such Person from such sale or issuance less
the sum of the actual amount of the reasonable fees and commissions
payable to Persons other than such Person or any Affiliate of such
Person, the reasonable legal expenses and other costs and expenses
directly related to such sale or issuance that are to be paid by such
Person.
"Note" shall have the meaning given to that term in Subparagraph
2.07(b).
"Notice of Borrowing" shall mean a Notice of U.S. Borrowing or
the Notice of Japanese Borrowing.
"Notice of Interest Period Selection" shall mean a Notice of U.S.
Borrowing Interest Period Selection or a Notice of Japanese Borrowing
Interest Period Selection
"Notice of Japanese Borrowing" shall have the meaning given to
that term in Subparagraph 2.02(b).
"Notice of Japanese Borrowing Interest Period Selection" shall
have the meaning given to that term in Subparagraph 2.02(d).
"Notice of U.S. Borrowing" shall have the meaning given to that
term in Subparagraph 2.01(c).
"Notice of U.S. Borrowing Conversion" shall have the meaning
given to that term in Subparagraph 2.01(e).
"Notice of U.S. Borrowing Interest Period Selection" shall have
the meaning given to that term in Subparagraph 2.01(f).
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"Obligations" shall mean and include all loans, advances, debts,
liabilities, and obligations, howsoever arising, owed by either Borrower
individually to Agent or any Lender of every kind and description
(whether or not evidenced by any note or instrument and whether or not
for the payment of money), direct or indirect, absolute or contingent,
due or to become due, now existing or hereafter arising pursuant to the
terms of this Agreement or any of the other Credit Documents, including
all interest, fees, charges, expenses, attorneys' fees and accountants'
fees chargeable to Borrowers or payable by Borrowers thereunder.
"Original Credit Agreement" shall have the meaning given to that
term in Recital A.
"Outstanding Japanese Loan Facility" shall mean the Yen credit
facility provided pursuant to the Agreement for "25,000,000,000 Floating
Rate Guaranteed Credit Facility, dated December 27, 1995, as amended,
among LLJS, as borrower, LSI, as guarantor, the banks and financial
institutions parties thereto, as lenders, ABN AMRO, as agent for such
lenders, and The Industrial Bank of Japan, Limited, as co-agent for such
lenders.
"Outstanding Japanese Lease Facility" shall mean the Yen
"synthetic" lease provided pursuant to the Master Lease Agreement, dated
June 16, 1995, as amended, among LLJS, as lessee, and certain financial
institutions parties thereto, as lessors, including IBJ Leasing Co.,
Ltd., as lead lessor.
"Outstanding U.S. Loan Facility" shall mean the Dollar credit
facility provided pursuant to the Credit Agreement, dated as of December
20, 1996, as amended, among LSI, as borrower, the financial institutions
parties thereto, as lenders, and ABN AMRO, as agent for such lenders.
"Overnight Rate" shall mean, for any amount payable in Yen on any
day, the per annum interest rate at which overnight deposits in Yen in
an amount approximately equal to such amount would be offered for such
day by ABN AMRO's Japanese Lending Office to major banks in the Tokyo
interbank market.
"Participant" shall have the meaning given to that term in
Subparagraph 8.05(b).
"PBGC" shall mean the Pension Benefit Guaranty Corporation, or
any successor thereto.
"Pension Plan" shall mean any employee pension benefit plan
covered by Title IV of ERISA (other than a Multiemployer Plan) that is
maintained for employees of LSI or any ERISA Affiliate or with regard to
which LSI or an ERISA Affiliate is a contributing sponsor within the
meaning of Section 4001(a)(13) or 4069 of ERISA.
"Permitted Investments" shall mean any investments selected by LSI in
accordance with its Corporate Cash Investment Policy as adopted by LSI
on August 16, 1996 (as the same may be amended from time to time with
the approval of Agent); provided that any investments not meeting the
standards set forth in such Corporate Cash Investment Policy shall
nevertheless be deemed to be "Permitted Investments" if they do
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not exceed at any time, in the aggregate, ten percent (10%) of all
Permitted Investments at such time.
"Permitted Liens" shall mean:
(a) Liens which may at any time be granted in favor of
Agent or any Lender to secure the Obligations;
(b) Liens in existence as of the date of this Agreement
listed on Schedule 5.02(a), and any substitutions or renewals
thereof, provided that (i) any substitute or renewal Lien is
limited to the property encumbered by the existing Lien, and (ii)
the principal amount of the obligations secured thereby is not
increased;
(c) Liens for current taxes, assessments or other
Governmental Charges which are not delinquent or remain payable
without any penalty or which are being contested in good faith
via appropriate proceedings, with appropriate reserves
established therefor in accordance with GAAP;
(d) Liens in connection with workers' compensation,
unemployment insurance or other social security obligations;
(e) Mechanics', workers', materialmen's, landlords',
carriers' or other like Liens arising in the ordinary and normal
course of business with respect to obligations which are not past
due or which are being contested in good faith via appropriate
proceedings, with appropriate reserves established therefor in
accordance with GAAP;
(f) Purchase money security interests (including by way of
installment sales and title retention agreements) in personal or
real property hereafter acquired when the security interest is
granted contemporaneously with such acquisition (or within nine
months thereafter), Liens created to secure the cost of
construction or improvement of property and Liens created to
secure Indebtedness incurred to finance such purchase price or
cost (including Liens in favor of the United States or any state
thereof, or any department, agency, instrumentality or political
subdivision thereof, securing any real property or other assets
in connection with the financing of industrial revenue bond
facilities or of any equipment or other property designed
primarily for the purpose of air or water pollution control);
provided that (i) any such Lien shall attach only to the property
so purchased. constructed or improved, together with attachments
and accessions thereto, and rents, proceeds, products,
substitutions, replacements and profits thereof and attachments
and accessories thereto, and (ii) the amount of Indebtedness
secured by any such Lien shall not exceed the purchase or
construction price of such property plus transaction costs and
financing charges relating to the acquisition or construction
thereof;
(g) Liens arising from attachments or similar
proceedings, pending litigation, judgments or taxes or
assessments in any such event whose validity or
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amount is being contested in good faith by appropriate
proceedings and for which adequate reserves have been
established and are maintained in accordance with GAAP;
(h) Liens arising in the ordinary course of business or by
operation of law, not securing Indebtedness, but securing such
obligations as (i) judgments or awards, which (A) are covered by
applicable insurance or (B) have been outstanding less than
thirty (30) consecutive days, (ii) interests of landlords or
lessors under leases of real or personal property entered into in
the ordinary course of business arising by contract or operation
of law, (iii) Liens in favor of customs and revenue authorities
which secure payment of customs in connection with the
importation of goods, (iv) Liens which constitute rights of
set-off of a customary nature or bankers' liens on amounts on
deposit, whether arising by contract or by operation of law, in
connection with arrangements entered into with depository
institutions in the ordinary course of business, (v) such minor
defects, irregularities, encumbrances, easements, rights of way,
and clouds on title as normally exist with respect to similar
properties which do not, individually or in the aggregate,
materially impair the property affected thereby or the use
thereof and (vi) subleases, licenses, and sublicenses granted to
third parties, the granting of which does not result in a
Material Adverse Effect;
(i) Liens securing reimbursement obligations of either
Borrower or any of its Subsidiaries under documentary letters of
credit; provided that such Liens shall attach only to documents
relating to such letters of credit, goods covered thereby and
products and proceeds thereof;
(j) Liens on insurance policies or the proceeds of
insurance policies incurred solely to secure the financing of
premiums owing with respect thereto;
(k) Liens existing on property (including the proceeds and
accessions thereto) acquired by either Borrower or any of its
Subsidiaries (including Liens on assets of any corporation at the
time it becomes a Subsidiary), but excluding any Liens created in
contemplation of any such acquisition;
(l) Liens encumbering customary initial deposits and
margin deposits, and other Liens that are within the general
parameters customary in the industry and incurred in the ordinary
course of business in connection with Rate Contracts or portfolio
investments maintained with financial intermediaries; and
(m) Liens related to a "synthetic" lease financing of
equipment, provided that (i) such Liens cover only the equipment
and related property and (ii) the "principal" amount of such
financing does not exceed $250,000,000.
"Person" shall mean and include an individual, a partnership, a
corporation (including a business trust), a joint stock company, an
unincorporated association, a limited liability company, a joint
venture, a trust or other entity or a Governmental Authority.
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"Plan" shall mean an employee benefit plan (as defined in Section
3(3) of ERISA) which LSI or any ERISA Affiliate sponsors or maintains,
or to which LSI or any ERISA Affiliate makes, is making, or is obligated
to make contributions, and includes any Pension Plan.
"Pricing Grid" shall mean Schedule II.
"Pricing Period" shall mean each consecutive calendar quarter
which commences on the day following the last day of the immediately
preceding calendar quarter and ends on the last day of that calendar
quarter.
"Pricing Ratio" shall mean, as of the last day of any fiscal
quarter, the ratio of (a) Senior Debt as of such date to (b) annualized
Consolidated EBITDA for such fiscal quarter and the immediately
preceding fiscal quarter.
"Pricing Ratio Certificate" shall have the meaning given to that
term in clause (iv) of Subparagraph 5.01(a).
"Prime Rate" shall mean the per annum rate publicly announced by
ABN AMRO from time to time at its Chicago office. The Prime Rate is
determined by ABN AMRO from time to time as a means of pricing credit
extensions to some customers and is neither directly tied to any
external rate of interest or index nor necessarily the lowest rate of
interest charged by ABN AMRO at any given time for any particular class
of customers or credit extensions. Any change in the Base Rate resulting
from a change in the Prime Rate shall become effective on the Business
Day on which each change in the Prime Rate occurs.
"Proportionate Share" shall mean:
(a) With respect to any U.S. Lender and its U.S. Revolving
Commitment or U.S. Revolving Loans, if any, the ratio (expressed
as a percentage rounded to the eighth digit to the right of the
decimal point) of (i) such Lender's U.S. Revolving Commitment to
the Total U.S. Revolving Commitment at any time on or prior to
the Revolving Termination Date or (ii) the aggregate principal
amount of such Lender's U.S. Revolving Loans to the aggregate
principal amount of the U.S. Revolving Borrowings outstanding at
any time after the Revolving Termination Date;
(b) With respect to any U.S. Lender and its U.S. 364 Day
Commitment or U.S. 364 Day Loans, if any, the ratio (expressed as
a percentage rounded to the eighth digit to the right of the
decimal point) of (i) such Lender's U.S. 364 Day Commitment to
the Total U.S. 364 Day Commitment at any time on or prior to the
U.S. 364 Day Termination Date or (ii) the aggregate principal
amount of such Lender's U.S. 364 Day Loans to the aggregate
principal amount of the U.S. 364 Day Borrowings outstanding at
any time after the U.S. 364 Day Termination Date;
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(c) With respect to any Japanese Lender and its Japanese
Commitment or Japanese Loans, if any, the ratio (expressed as a
percentage rounded to the eighth digit to the right of the
decimal point) of (i) such Lender's Japanese Commitment to the
Total Japanese Commitment at any time on or prior to the Japanese
Closing Date or (ii) the aggregate principal amount of such
Lender's Japanese Loans to the aggregate principal amount of the
Japanese Borrowing outstanding at any time after the Japanese
Closing Date; and
(d) With respect to any Lender without reference to a
particular type of Commitment or Loan, the ratio (expressed as a
percentage rounded to the eighth digit to the right of the
decimal point) of (i) the aggregate of such Lender's U.S.
Revolving Commitment, U.S. 364 Day Commitment and the Dollar
Equivalent of such Lender's Japanese Commitment to the sum of the
Total U.S. Revolving Commitment, the Total U.S. 364 Day
Commitment and the Dollar Equivalent of the Total Japanese
Commitment at any time on or prior to the Initial Closing Date or
(ii) the weighted average of the sums determined for such Lender
pursuant to clauses (a), (b) and (c) above at any time after the
Initial Closing Date.
"Rate Contracts" shall mean interest rate swaps, caps, floors and
collars, currency swaps, or other similar financial products designed to
provide protection against fluctuations in interest, currency or
exchange rates.
"Register" shall have the meaning given to that term in
Subparagraph 8.05(d).
"Reportable Event" shall mean any of the events set forth in
Section 4043(b) of ERISA or the regulations promulgated thereunder,
other than any such event for which the 30-day notice requirement under
ERISA has been waived in regulations issued by the PBGC.
"Required Lenders" shall mean, at any time, Lenders whose
Proportionate Shares equal or exceed fifty-one percent (51%).
"Reserve Requirement" shall mean (a) with respect to any day in
an Interest Period for a LIBOR Loan, the aggregate of the reserve
requirement rates (expressed as a decimal) in effect on such day for
eurodollar funding (currently referred to as "Eurocurrency liabilities"
in Regulation D of the FRB) maintained by a member bank of the Federal
Reserve System or (b) with respect to any day in an Interest Period for
a Japanese Loan, the aggregate of the reserve requirement rates, if any
(expressed as a decimal), in effect on such day for Yen funding in Tokyo
maintained by commercial banks in Tokyo. As used herein, the term
"reserve requirement" shall include, without limitation, any basic,
supplemental or emergency reserve requirements imposed on any Lender by
any Governmental Authority.
"Responsible Officer" shall mean, with respect to any Person,
the chief executive officer, the president, the chief financial officer
or the treasurer of such Person, or any other senior officer of such
Person having substantially the same authority and responsibility; or,
with respect to compliance with financial covenants, the chief financial
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officer or the treasurer of any such Person, or any other senior officer
of such Person involved principally in the financial administration or
controllership function of such Person and having substantially the same
authority and responsibility.
"Revolving Termination Date" shall mean August 4, 2002, or, with
respect to U.S. Revolving Borrowings, such earlier date as the Total
U.S. Revolving Commitment is cancelled pursuant to Subparagraph 2.03(c).
"Scheduled Reduction Date" means each of December 31, 1999, March
31, 2000 and June 30, 2000.
"SEC" shall mean the Securities and Exchange Commission, or any
successor thereto.
"Second Closing Date" shall mean the later of the U.S. Closing
Date and the Japanese Closing Date. (If the U.S. Closing Date and the
Japanese Closing Date are the same date, the Initial Closing Date and
the Second Closing Date shall be the same date.)
"Security Documents" shall mean and include the LSI Guaranty and
any other instruments, agreements, certificates, opinions and documents
(including Uniform Commercial Code financing statements and fixture
filings and landlord waivers) delivered to Agent or any Lender to secure
the Obligations.
"Senior Debt" shall mean all Indebtedness, other than
Subordinated Debt, of LSI and its Subsidiaries on a consolidated basis.
"Significant Subsidiary" shall mean, at any time, any Subsidiary
of LSI having at such time total assets, as of the last day of the
preceding fiscal quarter, having a net book value in excess of
$10,000,000 (exclusive of intercompany assets and liabilities), based
upon LSI's most recent annual or quarterly Financial Statements
delivered to Agent under Subparagraph 5.01(a).
"Solvent" shall mean, with respect to any Person, that as of the
date of determination, (a) the then fair saleable value of the property
of such Person is (ii) greater than the total amount of liabilities
(including reasonably anticipated liabilities with respect to contingent
obligations) of such Person and (ii) greater than the amount that will
be required to pay the probable liabilities on such Person's then
existing debts as they become absolute and matured considering all
financing alternatives and potential asset sales reasonably available to
such Person, and (b) such Person has not incurred and does not intend to
incur, or does not believe that it will incur, debts beyond its ability
to pay such debts as they become due.
"Subordinated Debt" shall mean any Indebtedness of LSI or any of
its Subsidiaries the stated maturity date of any scheduled principal
payment of which is not earlier than the first anniversary of the
Revolving Termination Date and which is subordinated on terms and
conditions reasonably acceptable to Required Lenders; provided, that any
Subordinated Debt having subordination provisions no more favorable to
the holder than those attached as Exhibit K hereto shall be deemed to be
reasonably
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acceptable to Required Lenders for the purposes hereof. Without limiting
the foregoing, the terms of such Subordinated Debt shall not include any
requirement that the holders thereof approve the issuance of the Senior
Debt or Designated Senior Debt (as defined in Exhibit K) entitled to the
benefit of such subordination provisions.
"Subsidiary" shall mean any corporation, association,
partnership, joint venture or other business entity of which more than
fifty percent (50%) of the voting stock or other equity interest is
owned directly or indirectly by any Person or one or more of the other
Subsidiaries of such Person or a combination thereof. (All references in
this Agreement and the other Credit Documents to Subsidiaries of LSI
shall, unless otherwise indicated, include LLJS and its Subsidiaries.)
"Swap Termination Value" shall mean, in respect of any one or
more Rate Contracts, after taking into account the effect of any legally
enforceable netting agreement relating to such Rate Contracts, (a) for
any date on or after the date such Rate Contracts have been closed out
and termination value(s) determined in accordance therewith, such
termination value(s), and (b) for any date prior to the date referenced
in clause (a) the amount(s) determined as the xxxx-to-market value(s)
for such Rate Contracts, as determined based upon one or more mid-
market or other readily available quotations provided by any recognized
dealer in such Rate Contracts (which may include any Lender).
"Symbios" shall mean Symbios, Inc., a Delaware corporation.
"Symbios Acquisition" shall mean the acquisition by LSI of the
capital stock of Symbios pursuant to the Symbios Acquisition Documents.
"Symbios Acquisition Documents" shall mean the Stock Purchase
Agreement, dated as of June 28, 1998, by and among LSI, Hyundai
Electronics America, a California corporation, and Hyundai Electronics
Industries Ltd., a legal entity under the laws of the Republic of Korea,
and all material documents, instruments and agreements delivered to or
by LSI in connection with the Symbios Acquisition.
"Taxes" shall have the meaning given to such term in
Subparagraph 2.11(a).
"TIBO Rate" shall mean, with respect to any Interest Period for
the Japanese Loans in the Japanese Borrowing, a rate per annum equal to
the quotient (rounded upward if necessary to the nearest 1/100 of one
percent) of (a) the rate per annum appearing on the Xxxxxx Screen TIBM
Page (All Banks Average) (or any successor publication) on the second
Business Day prior to the first day of such Interest Period at or about
11:00 A.M. (Tokyo time) (for delivery on the first day of such Interest
Period) in an amount substantially equal to Agent's Japanese Loan for
the Japanese Borrowing and for a term comparable to such Interest
Period, divided by (b) one minus the Reserve Requirement for such
Japanese Loan in effect from time to time. If for any reason rates are
not available as provided in clause (a) of the preceding sentence, the
rate to be used in clause (a) shall be the rate per annum at which Yen
deposits are offered to Agent (or if Agent does not have a Japanese Loan
at such time, another Japanese Lender selected by
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Agent) in the Tokyo interbank market or, if such rate is not available,
the rate at which Yen deposits are offered to Agent in, or by Agent to
major banks in, any offshore interbank market selected by Agent, in each
case on the second Business Day prior to the commencement of such
Interest Period at or about 11:00 A.M. (Tokyo time) (for delivery on the
first day of such Interest Period) for a term comparable to such
Interest Period and in an amount approximately equal to the amount of
the Japanese Loan to be made or funded by Agent (or such other Japanese
Lender selected by Agent) as part of the Japanese Borrowing. The TIBO
Rate shall be adjusted automatically as to all Japanese Loans then
outstanding as of the effective date of any change in the Reserve
Requirement.
"Total Capital" shall mean the sum of Equity Capital, Senior Debt
and Subordinated Debt.
"Total Japanese Commitment" shall mean Eight Billion Six Hundred
Million Yen ("8,600,000,000).
"Total U.S. Revolving Commitment" shall mean Two Hundred Forty
Million Dollars ($240,000,000), or such amount as reduced pursuant to
Subparagraph 2.03(b) or Subparagraph 2.03(c).
"Total U.S. 364 Day Commitment" shall mean One Hundred Fifty
Million Dollars ($150,000,000) , or such amount as reduced pursuant to
Subparagraph 2.03(b) or Subparagraph 2.03(c).
"Type" shall mean, with respect to any U.S. Loan or U.S.
Borrowing at any time, the classification of such Loan or Borrowing by
the type of interest rate it then bears, whether an interest rate based
upon the Base Rate or the LIBO Rate.
"Unfunded Pension Liability" shall mean the excess of a Plan's
benefit liabilities under Section 4001(a)(16) of ERISA, over the current
value of that Plan's assets, determined in accordance with the
assumptions used for funding the Plan pursuant to Section 412 of the IRC
for the applicable plan year.
"United States" and "U.S." each shall mean the United States of
America.
"U.S. Borrowing" shall mean a U.S. Revolving Borrowing or a U.S.
364 Day Borrowing.
"U.S. Closing Date" shall mean the date, not later than August
31, 1998, designated by LSI in the initial Notice of U.S. Borrowing as
the date on which the initial U.S. Borrowing is to occur.
"U.S. Lender" shall mean a Lender having a U.S. Revolving
Commitment or a U.S. 364 Day Commitment or, after the U.S. 364 Day
Termination Date, a Lender having a U.S. Loan or a U.S. Revolving
Commitment.
"U.S. Loan" shall mean a U.S. Revolving Loan or a U.S. 364 Day
Loan.
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"U.S. Revolving Borrowing" shall mean a borrowing by LSI
consisting of U.S. Revolving Loans made by U.S. Lenders on the same date
and of the same Type pursuant to a single Notice of U.S. Borrowing. Any
reference to a U.S. Revolving Borrowing shall include the U.S. Revolving
Loans made pursuant to such U.S. Revolving Borrowing.
"U.S. Revolving Commitment" shall mean, with respect to each
Lender, the Dollar amount set forth under the caption "U.S. Revolving
Commitment" opposite such Lender's name on Part A of Schedule I, or, if
changed, such Dollar amount as may be set forth for such Lender in the
Register.
"U.S. Revolving Commitment Fees" shall have the meaning given to
that term in Subparagraph 2.04(b).
"U.S. Revolving Loan" has the meaning given to that term in
Subparagraph 2.01(a).
"U.S. 364 Day Borrowing" shall mean a borrowing by LSI consisting
of U.S. 364 Day Loans made by U.S. Lenders on the same date and of the
same Type pursuant to a single Notice of U.S. Borrowing. Any reference
to a U.S. 364 Day Borrowing shall include the U.S. 364 Day Loans made
pursuant to such U.S. 364 Day Borrowing.
"U.S. 364 Day Commitment" shall mean, with respect to each
Lender, the Dollar amount set forth under the caption "U.S. 364 Day
Commitment" opposite such Lender's name on Part A of Schedule I, or, if
changed, such Dollar amount as may be set forth for such Lender in the
Register.
"U.S. 364 Day Commitment Fees" shall have the meaning given to
that term in Subparagraph 2.04(b).
"U.S. 364 Day Loan" has the meaning given to that term in
Subparagraph 2.01(b).
"U.S. 364 Day Termination Date" shall mean August 3, 1999, or
such earlier date as the Total U.S. 364 Day Commitment is cancelled
pursuant to Subparagraph 2.03(c).
"Yen" and "Yen (Symbol)" shall mean the lawful currency of Japan
and, in relation to any payment under this Agreement, same day or
immediately available funds.
"Yen Equivalent" shall mean, as to any amount denominated in
Dollars as of any date of determination, the equivalent amount in Yen as
determined by Agent on the basis of the Telegraphic Transfer Mid Rate
quoted by Bank of Tokyo Mitsubishi at or about 10:00 a.m. (Tokyo time)
on such date.
1.02. GAAP. Unless otherwise expressly provided in this Agreement or any
other Credit Document, all accounting terms used in this Agreement or any other
Credit Document shall be construed, and all accounting and financial
computations hereunder or thereunder shall be computed, in accordance with GAAP.
If GAAP changes during the term of this Agreement such that any covenants
contained herein would then be calculated in a different manner or with
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different components, Borrowers, Lenders and Agent agree to negotiate in good
faith to amend this Agreement in such respects as are necessary to conform those
covenants as criteria for evaluating Borrowers' financial condition to
substantially the same criteria as were effective prior to such change in GAAP;
provided, however, that, until Borrowers, Lenders and Agent so amend this
Agreement, all such covenants shall be calculated in accordance with GAAP as in
effect immediately prior to such change.
1.03. Headings. Headings in this Agreement and each of the other Credit
Documents are for convenience of reference only and are not part of the
substance hereof or thereof.
1.04. Plural Terms. All terms defined in this Agreement or any other
Credit Document in the singular form shall have comparable meanings when used in
the plural form and vice versa.
1.05. Governing Law. Unless otherwise expressly provided in any Credit
Document, this Agreement and each of the other Credit Documents shall be
governed by and construed in accordance with the laws of the State of California
without reference to conflicts of law rules.
1.06. English Language. This Agreement and the other Credit Documents
are executed and shall be construed in the English language. All instruments,
agreements, certificates, opinions and other documents to be furnished or
communications to be given or made under this Agreement or any other Credit
Document shall be in the English language, except that LLJS may deliver the
Japanese language version of (a) any LLJS corporate document initially prepared
in the ordinary course of its business in the Japanese language or (b) any
certificate or other document prepared by a Japanese Governmental Authority in
the Japanese language, provided that, in each such case, the Japanese language
version of such document is delivered along with an English language translation
thereof which shall be binding upon Borrowers.
1.07. Construction. This Agreement is the result of negotiations among,
and has been reviewed by, Borrowers, each Lender, Agent and their respective
counsel. Accordingly, this Agreement shall be deemed to be the product of all
parties hereto, and no ambiguity shall be construed in favor of or against
either Borrower, any Lender or Agent.
1.08. Entire Agreement. This Agreement and each of the other Credit
Documents, taken together, constitute and contain the entire agreement of
Borrowers, Lenders and Agent and supersede any and all prior agreements,
negotiations, correspondence, understandings and communications among the
parties, whether written or oral, respecting the subject matter hereof
(excluding the Agent's Fee Letter and the Agent's Syndication Letter but
including the commitment letter dated as of July 17, 1998 between LSI and ABN
AMRO).
1.09. Calculation of Interest and Fees. All calculations of interest and
fees under this Agreement and the other Credit Documents for any period (a)
shall include the first day of such period and exclude the last day of such
period and (b) shall be calculated on the basis of a year of 360 days for actual
days elapsed, except that during any period any Loan bears interest based upon
the Prime Rate, such interest shall be calculated on the basis of a year of 365
or 366 days, as appropriate, for actual days elapsed.
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1.10. References.
(a) References in this Agreement to "Recitals," "Sections,"
"Paragraphs," "Subparagraphs," "Exhibits" and "Schedules" are to
recitals, sections, paragraphs, subparagraphs, exhibits and schedules
therein and thereto unless otherwise indicated.
(b) References in this Agreement or any other Credit Document to
any document, instrument or agreement (i) shall include all exhibits,
schedules and other attachments thereto, (ii) shall include all
documents, instruments or agreements issued or executed in replacement
thereof if such replacement is permitted hereby, and (iii) shall mean
such document, instrument or agreement, or replacement or predecessor
thereto, as amended, modified and supplemented from time to time and in
effect at any given time if such amendment, modification or supplement
is permitted hereby.
(c) References in this Agreement or any other Credit Document to
any Governmental Rule (i) shall include any successor Governmental Rule,
(ii) shall include all rules and regulations promulgated under such
Governmental Rule (or any successor Governmental Rule), and (iii) shall
mean such Governmental Rule (or successor Governmental Rule) and such
rules and regulations, as amended, modified, codified or reenacted from
time to time and in effect at any given time.
(d) References in this Agreement or any other Credit Document to
any Person in a particular capacity (i) shall include any permitted
successors to and assigns of such Person in that capacity and (ii) shall
exclude such Person individually or in any other capacity.
1.11. Other Interpretive Provisions. The words "hereof," "herein" and
"hereunder" and words of similar import when used in this Agreement or any other
Credit Document shall refer to this Agreement or such other Credit Document, as
the case may be, as a whole and not to any particular provision of this
Agreement or such other Credit Document, as the case may be. The words "include"
and "including" and words of similar import when used in this Agreement or any
other Credit Document shall not be construed to be limiting or exclusive. In the
event of any inconsistency between the terms of this Agreement and the terms of
any other Credit Document, the terms of this Agreement shall govern.
SECTION II. CREDIT FACILITIES.
2.01. U.S. Borrowings.
(a) U.S. Revolving Borrowing Availability. Subject to the terms
and conditions of this Agreement (including the amount limitations set
forth in Paragraph 2.03), each U.S. Lender with a U.S. Revolving
Commitment severally agrees to advance to LSI from time to time during
the period beginning on the U.S. Closing Date and ending on the
Revolving Termination Date such loans in Dollars as LSI may request
under this Subparagraph 2.01(a) (individually, a "U.S. Revolving Loan");
provided, however, that
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(i) the aggregate principal amount of all U.S. Revolving
Loans made by such Lender at any time outstanding shall not
exceed such Lender's U.S. Revolving Commitment at such time; and
(ii) the aggregate principal amount of all U.S. Revolving
Loans made by all Lenders at any time outstanding shall not
exceed the Total U.S. Revolving Commitment at such time.
All U.S. Revolving Loans shall be made on a pro rata basis by all U.S.
Lenders with U.S. Revolving Commitments in accordance with their
respective Proportionate Shares of the Total U.S. Revolving Commitment,
with each U.S. Revolving Borrowing to be comprised of a U.S. Revolving
Loan by each U.S. Lender with a U.S. Revolving Commitment equal to such
Lender's Proportionate Share of such U.S. Revolving Borrowing. Except as
otherwise provided herein, LSI may borrow, repay and reborrow U.S.
Revolving Loans until the Revolving Termination Date.
(b) U.S. 364 Day Borrowing Availability. Subject to the terms
and conditions of this Agreement (including the amount limitations set
forth in Paragraph 2.03), each U.S. Lender with a U.S. 364 Day
Commitment severally agrees to advance to LSI from time to time during
the period beginning on the U.S. Closing Date and ending on the U.S. 364
Day Termination Date such loans in Dollars as LSI may request under this
Subparagraph 2.01(b) (individually, a "U.S. 364 Day Loan"); provided,
however, that
(i) the aggregate principal amount of all U.S. 364 Day
Loans made by such Lender at any time outstanding shall not
exceed such Lender's U.S. 364 Day Commitment at such time; and
(ii) the aggregate principal amount of all U.S. 364 Day
Loans made by all Lenders at any time outstanding shall not
exceed the Total U.S. 364 Day Commitment at such time.
All U.S. 364 Day Loans shall be made on a pro rata basis by all U.S.
Lenders with U.S. 364 Day Commitments in accordance with their
respective Proportionate Shares of the Total U.S. 364 Day Commitment,
with each U.S. 364 Day Borrowing to be comprised of a U.S. 364 Day Loan
by each U.S. Lender with a U.S. 364 Day Commitment equal to such
Lender's Proportionate Share of such U.S. 364 Day Borrowing. Except as
otherwise provided herein, LSI may borrow, repay and reborrow U.S. 364
Day Loans until the U.S. 364 Day Termination Date.
(c) Notice of Borrowing. LSI shall request each U.S. Borrowing by
delivering to Agent an irrevocable written notice in the form of Exhibit
A, appropriately completed (a "Notice of U.S. Borrowing"), which
specifies, among other things:
(i) Whether the requested U.S. Borrowing is a U.S.
Revolving Borrowing or a U.S. 364 Day Borrowing;
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(ii) The principal amount of the requested U.S. Borrowing,
which shall be in the minimum amount of $15,000,000 or an
integral multiple of $5,000,000 in excess thereof;
(iii) Whether the requested U.S. Borrowing is to consist
of Base Rate Loans or LIBOR Loans;
(iv) If the requested U.S. Borrowing is to consist of
LIBOR Loans, the initial Interest Period selected by LSI for such
LIBOR Loans in accordance with Subparagraph 2.01(f); and
(v) The date of the requested U.S. Borrowing, which (A) in
the case of a U.S. Revolving Borrowing, shall be a Business Day
not later than the Revolving Termination Date, and (B) in the
case of a U.S. 364 Day Borrowing, shall be a Business Day not
later than the U.S. 364 Day Termination Date;
LSI shall give each Notice of U.S. Borrowing to Agent at least three (3)
Business Days before the date of the requested U.S. Borrowing in the
case of a U.S. Borrowing consisting of LIBOR Loans and at least one (1)
Business Day before the date of the requested U.S. Borrowing in the case
of a U.S. Borrowing consisting of Base Rate Loans. Each Notice of U.S.
Borrowing shall be delivered by first-class mail or facsimile to Agent
at the office or facsimile number and during the hours specified in
Paragraph 8.01; provided, however, that LSI shall promptly deliver to
Agent the original of any Notice of U.S. Borrowing initially delivered
by facsimile. Agent shall promptly notify each U.S. Lender with a U.S.
Revolving Commitment of each Notice of U.S. Borrowing requesting a U.S.
Revolving Borrowing and of the amount and Type of (and, if applicable,
the Interest Period for) each U.S. Revolving Loan to be made by such
Lender as part of the requested U.S. Revolving Borrowing, and Agent
shall promptly notify each U.S. Lender with a U.S. 364 Day Commitment of
each Notice of U.S. Borrowing requesting a U.S. 364 Day Borrowing and of
the amount and Type of (and, if applicable, the Interest Period for)
each U.S. 364 Day Loan to be made by such Lender as part of the
requested U.S. 364 Day Borrowing.
(d) Interest Rates. LSI shall pay interest on the unpaid
principal amount of each U.S. Loan from the date of such U.S. Loan until
the Maturity thereof, at one of the following rates per annum:
(i) During such periods as such U.S. Loan is a Base Rate
Loan, at a rate per annum equal to the Base Rate plus the
Applicable Margin therefor, such rate to change from time to time
as the Applicable Margin or Base Rate shall change; and
(ii) During such periods as such U.S. Loan is a LIBOR
Loan, at a rate per annum equal at all times during each Interest
Period for such LIBOR Loan to the LIBO Rate for such Interest
Period plus the Applicable Margin therefor, such rate to change
from time to time as the Applicable Margin shall change.
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All U.S. Loans in each U.S. Borrowing shall, at any given time prior to
Maturity, bear interest at one, and only one, of the above rates. The
number of U.S. Borrowings consisting of LIBOR Loans shall not exceed
four (4) at any time.
(e) Conversion of U.S. Loans. LSI may convert any U.S. Borrowing
from one Type of U.S. Borrowing to the other Type; provided, however,
that any conversion of a U.S. Borrowing consisting of LIBOR Loans into a
U.S. Borrowing consisting of Base Rate Loans shall be made on, and only
on, the last day of an Interest Period for such LIBOR Loans. LSI shall
request such a conversion by an irrevocable written notice to Agent in
the form of Exhibit B, appropriately completed (a "Notice of U.S.
Borrowing Conversion"), which specifies, among other things:
(i) The U.S. Borrowing which is to be converted;
(ii) The Type of U.S. Borrowing into which it is to be
converted;
(iii) If any U.S. Borrowing is to be converted into a U.S.
Borrowing consisting of LIBOR Loans, the initial Interest Period
selected by LSI for such LIBOR Loans in accordance with
Subparagraph 2.01(f); provided, that no such conversion shall be
made if a Default has occurred and is continuing; and
(iv) The date of the requested conversion, which shall be
a Business Day.
LSI shall give each Notice of U.S. Borrowing Conversion to Agent at
least three (3) Business Days before the date of the requested
conversion. Each Notice of U.S. Borrowing Conversion shall be delivered
by first-class mail or facsimile to Agent at the office or to the
facsimile number and during the hours specified in Paragraph 8.01;
provided, however, that LSI shall promptly deliver to Agent the original
of any Notice of U.S. Borrowing Conversion initially delivered by
facsimile. Agent shall promptly notify each U.S. Lender with U.S.
Revolving Loans of the contents of each Notice of U.S. Borrowing
Conversion relating to such U.S. Revolving Loans, and Agent shall
promptly notify each U.S. Lender with U.S. 364 Day Loans of the contents
of each Notice of U.S. Borrowing Conversion relating to such U.S. 364
Day Loans.
(f) LIBOR Loan Interest Periods.
(i) The initial and each subsequent Interest Period
selected by LSI for a U.S. Borrowing consisting of LIBOR Loans
shall be one (1), two (2), three (3) or six (6) months; provided,
however, that (A) any Interest Period which would otherwise end
on a day which is not a Business Day shall be extended to the
next succeeding Business Day unless such next Business Day falls
in another calendar month, in which case such Interest Period
shall end on the immediately preceding Business Day; (B) any
Interest Period which 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) shall end on the last Business Day of a calendar
month; (C) with respect to any U.S. 364 Day Borrowing, no
Interest Period shall end after the U.S. 364 Day Termination
Date;
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and (D) with respect to any U.S. Revolving Borrowing, no Interest
Period shall end after a Scheduled Reduction Date unless, after
giving effect to such Interest Period, the aggregate principal
amount of all U.S. Revolving Borrowings consisting of Base Rate
Loans and LIBOR Loans having Interest Periods ending on or prior
to such Scheduled Reduction Date equals or exceeds the amount of
the Total U.S. Revolving Commitment on such Scheduled Reduction
Date, and no Interest Period shall end after the Revolving
Termination Date.
(ii) LSI shall notify Agent by an irrevocable written
notice in the form of Exhibit C, appropriately completed (a
"Notice of U.S. Borrowing Interest Period Selection"), at least
three (3) Business Days prior to the last day of each Interest
Period for a U.S. Borrowing consisting of LIBOR Loans of the
Interest Period selected by LSI for the next succeeding Interest
Period for such LIBOR Loans. Each Notice of U.S. Borrowing
Interest Period Selection shall be given to Agent by first-class
mail or facsimile to the office or the facsimile number and
during the hours specified in Paragraph 8.01; provided, however,
that LSI shall promptly deliver to Agent the original of any
Notice of U.S. Borrowing Interest Period Selection initially
delivered by facsimile. If LSI fails to notify Agent of the next
Interest Period for a U.S. Borrowing consisting of LIBOR Loans in
accordance with this Subparagraph 2.01(f), such LIBOR Loans shall
automatically convert to Base Rate Loans on the last day of the
current Interest Period therefor.
(g) Scheduled Payments. Unless earlier repayment is required by
Subparagraph 2.05(c), LSI shall repay the principal amount of the U.S.
Revolving Loans on the Revolving Termination Date. LSI shall repay the
principal amount of the U.S. 364 Day Loans on the U.S. 364 Day
Termination Date. LSI shall pay accrued interest on the unpaid principal
amount of each U.S. Loan in arrears (i) in the case of a Base Rate Loan,
on the last day in each March, June, September and December (commencing
with the first such day after the U.S. Closing Date), (ii) in the case
of a LIBOR Loan, on the last day of each Interest Period (and if any
such Interest Period is equal to or longer than three (3) months, every
three (3) months); and (iii) in the case of all U.S. Loans, upon
prepayment (to the extent thereof) and at Maturity.
(h) Purpose. LSI shall use the proceeds of the U.S. Borrowings
to consummate the Symbios Acquisition, repay in full all amounts owing
under the Outstanding U.S. Loan Facility and for general corporate
purposes.
2.02. Japanese Borrowing.
(a) Availability. Subject to the terms and conditions of this
Agreement (including the amount limitations set forth in Paragraph
2.03), each Japanese Lender severally agrees to advance to LLJS in a
single advance on the Japanese Closing Date a term loan in Yen under
this Paragraph 2.02 (individually, a "Japanese Loan"); provided,
however, that
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(i) the aggregate principal amount of all Japanese Loans
made by such Lender shall not exceed such Lender's Japanese
Commitment on such date; and
(ii) the aggregate principal amount of the Japanese
Borrowing shall not exceed the Total Japanese Commitment.
All Japanese Loans shall be made on a pro rata basis by all Japanese
Lenders in accordance with their respective Proportionate Shares of the
Total Japanese Commitment. LLJS may not reborrow the principal amount of
any Japanese Loan after repayment or prepayment thereof.
(b) Notice of Borrowing. LLJS shall request the Japanese
Borrowing by delivering to Agent an irrevocable written notice in the
form of Exhibit D, appropriately completed (the "Notice of Japanese
Borrowing"), which specifies, among other things:
(i) The principal amount of the Japanese Borrowing, which
shall be in the minimum amount of (Yen)1,000,000,000 or an
integral multiple of (Yen)100,000,000 in excess thereof;
(ii) The initial Interest Period selected by LLJS for the
Japanese Borrowing in accordance with Subparagraph 2.02(d); and
(iii) The date of the Japanese Borrowing, which shall be a
Business Day not later than August 31, 1998.
LLJS shall give the Notice of Japanese Borrowing to Agent at least four
(4) Business Days before the Japanese Closing Date. The Notice of
Japanese Borrowing shall be delivered by first-class mail or facsimile
to Agent at the office or facsimile number and during the hours
specified in Paragraph 8.01; provided, however, that LLJS shall promptly
deliver to Agent the original of the Notice of Japanese Borrowing if
initially delivered by facsimile. Agent shall promptly notify each
Japanese Lender of the amount of and Interest Period for each Japanese
Loan to be made by such Lender as part of the Japanese Borrowing.
(c) Interest Rates. LLJS shall pay interest on the unpaid
principal amount of each Japanese Loan from the date of such Japanese
Loan until the Maturity thereof, at a rate per annum equal at all times
during each Interest Period to the TIBO Rate for such Interest Period
plus the Applicable Margin therefor, such rate to change from time to
time as the Applicable Margin shall change.
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(d) Japanese Borrowing Interest Periods.
(i) The initial and each subsequent Interest Period
selected by LLJS for the Japanese Borrowing shall be one (1), two
(2), three (3) or six (6) months; provided, however, that (A) any
Interest Period which would otherwise end on a day which is not a
Business Day shall be extended to the next succeeding Business
Day unless such next Business Day falls in another calendar
month, in which case such Interest Period shall end on the
immediately preceding Business Day; (B) any Interest Period which
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) shall end on
the last Business Day of a calendar month; and (C) no Interest
Period shall end after the Revolving Termination Date.
(ii) LLJS shall notify Agent by an irrevocable written
notice in the form of Exhibit E, appropriately completed (a
"Notice of Japanese Borrowing Interest Period Selection"), at
least four (4) Business Days prior to the last day of each
Interest Period for the Japanese Borrowing of the Interest Period
selected by LLJS for the next succeeding Interest Period for the
Japanese Borrowing. Each Notice of Japanese Borrowing Interest
Period Selection shall be given to Agent by first-class mail or
facsimile to the office or the facsimile number and during the
hours specified in Paragraph 8.01; provided, however, that LLJS
shall promptly deliver to Agent the original of any Notice of
Japanese Borrowing Interest Period Selection initially delivered
by facsimile. If LLJS fails to notify Agent of the next Interest
Period for the Japanese Borrowing in accordance with this
Subparagraph 2.02(d), the Japanese Borrowing shall automatically
have an Interest Period of one (1) month following the current
Interest Period.
(e) Scheduled Payments. Unless earlier repayment is required by
Subparagraph 2.05(c), LLJS shall repay the principal amount of the
Japanese Borrowing on the Revolving Termination Date. LLJS shall pay
accrued interest on the unpaid principal amount of each Japanese Loan in
arrears on the last day of each Interest Period (and if any such
Interest Period is equal to or longer than three (3) months, every three
(3) months), upon prepayment (to the extent thereof) and at Maturity.
(f) Purpose. LLJS shall use the proceeds of the Japanese
Borrowing to repay in full the Outstanding Japanese Loan Facility and
for its general corporate purposes.
2.03. Amount Limitations, Commitment Reductions, Etc.
(a) Total Commitments. The aggregate principal amount of all
U.S. Revolving Loans outstanding at any time shall not exceed the Total
U.S. Revolving Commitment at such time, and the aggregate principal
amount of all U.S. 364 Day Loans outstanding at any time shall not
exceed the Total U.S. 364 Day Commitment. Until the Outstanding Japanese
Loan Facility is terminated and repaid in full, the unused amount of the
Commitments (including the Yen Equivalent of the U.S. Revolving
Commitments
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and the U.S. 364 Day Commitments) shall not be less than the aggregate
amount outstanding under the Outstanding Japanese Loan Facility.
(b) Mandatory Reduction of Commitments. The Commitments shall be
reduced as follows:
(i) On each Scheduled Reduction Date, the Total U.S.
Revolving Commitment shall be permanently reduced by an amount
equal to Thirty-Four Million Three Hundred Seventy-Five Thousand
Dollars ($34,375,000); provided, that LSI's obligation under this
provision to reduce the Total U.S. Revolving Commitment shall not
exceed the amount necessary to reduce the Total U.S. Revolving
Commitment to $240,000,000, after taking into account any
mandatory reduction pursuant to clause (ii) of this Subparagraph
2.03(b) and any voluntary reduction pursuant to Subparagraph
2.03(c)..
(ii) If at any time after the Initial Closing Date LSI or
any of its Subsidiaries sells assets other than in the ordinary
course of business (including any sale of assets to be leased
back in connection with a "synthetic" lease of such assets), or
sells or issues any Indebtedness for borrowed money (including
Indebtedness evidenced by notes, bonds, debentures or other
similar instruments), yielding Net Proceeds which exceed
$50,000,000 for any single transaction or series of related
transactions, immediately after such sale or issuance the Total
U.S. 364 Day Commitment shall be permanently reduced by an
aggregate amount equal to the Net Proceeds of such sale or
issuance and, if such Net Proceeds exceed the Total U.S. 364 Day
Commitment, the Total U.S. Revolving Commitment shall be
permanently reduced by an aggregate amount equal to such excess
Net Proceeds; provided, that with respect to the Net Proceeds
from "synthetic" leases or Indebtedness for borrowed money, LSI's
obligation under this provision to reduce the Total U.S.
Revolving Commitment shall not exceed the amount necessary to
reduce the Total U.S. Revolving Commitment to $240,000,000, after
taking into account any mandatory reduction pursuant to clause
(i) of this Subparagraph 2.03(b) and any voluntary reduction
pursuant to Subparagraph 2.03(c).
(c) Voluntary Reduction or Cancellation of Commitments. LSI may,
upon three (3) Business Days written notice to Agent, permanently reduce
or cancel in their entirety either of the Total U.S. Revolving
Commitment or the Total 364 Day Commitment; provided, however, that:
(i) Any reduction of the Total U.S. Revolving Commitment
shall be in the amount of $15,000,000 or an integral multiple of
$5,000,000 in excess thereof and LSI shall not reduce or cancel
the Total U.S. Revolving Commitment prior to the Revolving
Termination Date, if, after giving effect to such reduction, the
aggregate principal amount of all U.S. Revolving Loans then
outstanding would exceed the Total U.S. Revolving Commitment as
so reduced or, after giving effect to such cancellation, any U.S.
Revolving Loan would then remain outstanding; and
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(ii) Any reduction of the Total U.S. 364 Day Commitment
shall be in the amount of $15,000,000 or an integral multiple of
$5,000,000 in excess thereof and LSI shall not reduce or cancel
the Total U.S. 364 Day Commitment prior to the U.S. 364 Day
Termination Date, if, after giving effect to such reduction, the
aggregate principal amount of all U.S. 364 Day Loans then
outstanding would exceed the Total U.S. 364 Day Commitment as so
reduced or, after giving effect to such cancellation, any U.S.
364 Day Loan would then remain outstanding.
(d) Effect of Commitment Reductions. From the effective date of
any reduction of any of the Commitments, the Commitment Fees payable
with respect to such Commitments pursuant to Subparagraph 2.04(b) shall
be computed on the basis of the Commitments as so reduced. Once reduced
or cancelled, Commitments may not be increased or reinstated without the
prior written consent of all Lenders holding Loans of the type covered
by such Commitments. Any reduction of the Total U.S. Revolving
Commitment or the Total U.S. 364 Day Commitment pursuant to Subparagraph
2.03(b) shall be applied ratably to reduce each Lender's U.S. Revolving
Commitment or U.S. 364 Day Commitment, as the case may be, in accordance
with clause (i) of Subparagraph 2.09(a). Any reduction of the Total U.S.
Revolving Commitment pursuant to clause (ii) of Subparagraph 2.03(b) or
Subparagraph 2.03(c) shall be in addition to, and not in substitution
for, the reduction of the Total U.S. Revolving Commitment required by
clause (i) of Subparagraph 2.03(b).
2.04. Fees.
(a) Agent's Fee. LSI shall pay to Agent, for its own account,
agent's fees and other compensation in the amounts and at the times set
forth in the Agent's Fee Letter and the Agent's Syndication Letter.
(b) Commitment Fees.
(i) LSI shall pay to Agent, for the ratable benefit of
U.S. Lenders with U.S. Revolving Commitments as provided in
clause (iv) of Subparagraph 2.09(a), commitment fees (the "U.S.
Revolving Commitment Fees") equal to the per annum percentage
which is determined pursuant to the Pricing Grid of the daily
average difference between the Total U.S. Revolving Commitment
and the aggregate principal amount of all U.S. Revolving Loans
outstanding for each day during the period beginning on the date
of this Agreement and ending on the Revolving Termination Date.
LSI shall pay the U.S. Revolving Commitment Fees in arrears on
the last day in each March, June, September and December
(commencing with the first such day after the U.S. Closing Date)
and the Revolving Termination Date.
(ii) LSI shall pay to Agent, for the ratable benefit of
U.S. Lenders with U.S. 364 Day Commitments as provided in clause
(v) of Subparagraph 2.09(a), commitment fees (the "U.S. 364 Day
Commitment Fees") of twenty-two and one-half hundredths of one
percent (0.225%) of the daily average difference between the
Total U.S. 364 Day Commitment and the aggregate principal amount
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of all U.S. 364 Day Loans outstanding for each day during the
period beginning on the date of this Agreement and ending on the
U.S. 364 Day Termination Date. LSI shall pay the U.S. 364 Day
Commitment Fees in arrears on the last day in each March, June,
September and December (commencing with the first such day after
the U.S. Closing Date) and the U.S. 364 Day Termination Date.
2.05. Prepayments.
(a) Terms of all Prepayments. Upon the prepayment of any
Borrowing (whether such prepayment is an optional prepayment under
Subparagraph 2.05(b) or a mandatory prepayment required by any provision
of this Agreement or the other Credit Documents, including a prepayment
upon acceleration), the Borrower making such prepayment shall pay to the
applicable Lenders (i) all accrued interest to the date of such
prepayment on the amount prepaid and (ii) if such prepayment is the
prepayment of LIBOR Loans or the prepayment of Japanese Loans on a day
other than the last day of an Interest Period for such Loans, all
amounts payable to such Lenders pursuant to Paragraph 2.12.
(b) Optional Prepayments. At its option, LSI may, upon one (1)
Business Day notice to Agent in the case of Base Rate Loans or three (3)
Business Days notice to Agent in the case of LIBOR Loans, prepay any
U.S. Borrowing in part, in an aggregate principal amount of $15,000,000
or more, or in whole. At its option, LLJS may, upon four (4) Business
Days notice to Agent, prepay the Japanese Borrowing in part, in an
aggregate principal amount of (Yen)1,000,000,000 or more, or in whole.
(c) Mandatory Prepayments. Borrowers shall prepay the Loans as
follows:
(i) If at any time the aggregate principal amount of all
U.S. Revolving Loans then outstanding exceeds the Total U.S.
Revolving Commitment at such time, LSI shall immediately prepay
U.S. Revolving Loans in an aggregate principal amount equal to
such excess.
(ii) If at any time the aggregate principal amount of all
U.S. 364 Day Loans then outstanding exceeds the Total U.S. 364
Day Commitment at such time, LSI shall immediately prepay U.S.
364 Day Loans in an aggregate principal amount equal to such
excess.
(iii) If at any time after the U.S. Closing Date LSI or
any of its Subsidiaries sells assets other than in the ordinary
course of business (including any sale of assets to be leased
back in connection with a "synthetic" lease of such assets), or
sells or issues any Indebtedness for borrowed money (including
Indebtedness evidenced by notes, bonds, debentures or other
similar instruments), yielding Net Proceeds which exceed
$50,000,000 for any single transaction or series of related
transactions, LSI shall, immediately after such sale or issuance,
prepay the U.S. 364 Day Loans in an aggregate amount equal to the
Net Proceeds of such sale or issuance and, if such Net Proceeds
exceed the total amount payable with respect to the U.S. 364 Day
Loans, LSI shall prepay the U.S.
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Revolving Loans in an aggregate amount equal to such
excess Net Proceeds; provided, that with respect to the Net
Proceeds from "synthetic" leases or Indebtedness for borrowed
money, LSI's obligation under this provision to prepay such U.S.
Loans shall not exceed the amount necessary to reduce the
aggregate outstanding principal amount of the U.S. Loans to
$240,000,000, after taking into account any optional prepayment
pursuant to Subparagraph 2.05(b).
(d) Application of Prepayments. All prepayments of the U.S.
Borrowings shall, to the extent possible, be first applied to prepay
Base Rate Loans, if any, and then if any funds remain, to prepay LIBOR
Loans.
2.06. Other Payment Terms.
(a) Place and Manner.
(i) LSI shall make all payments due to each U.S. Lender or
Agent related to U.S. Borrowings by payments to Agent at Agent's
U.S. office located at the address specified in Paragraph 8.01,
with each such payment due to a U.S. Lender to be for the account
of such Lender and such Lender's applicable Domestic Lending
Office or Euro-Dollar Lending Office.
(ii) LLJS shall make all payments due to each Japanese
Lender or Agent related to the Japanese Borrowing by payments to
Agent at Agent's Tokyo office located at the address specified in
Paragraph 8.01, with each such payment due to a Japanese Lender
to be for the account of such Lender and such Lender's Japanese
Lending Office.
(iii) Each Borrower shall, unless otherwise directed by
Agent, make all other payments due to each Lender or Agent
hereunder by payments to Agent's U.S. office located at the
address specified in Paragraph 8.01, with each such payment due
to a Lender to be for the account of such Lender and such
Lender's Applicable Lending Office.
(iv) Borrowers shall make all payments hereunder in the
lawful currency required by Subparagraph 2.06(c) and in same day
or immediately available funds and without deduction or offset
not later than 11:00 a.m. (Chicago time, in the case of any
payment to be made to Agent's U.S. office located at the address
specified in Paragraph 8.01, or Tokyo time, in the case of any
payment to be made to Agent's Tokyo office located at the address
specified in Paragraph 8.01) and on the date due. Agent shall
promptly disburse to each Lender each payment received by Agent
for the account of such Lender.
(b) Date. Whenever any payment due hereunder shall fall due on a
day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall be included in
the computation of interest or fees, as the case may be, unless such
next Business Day falls in another calendar month, in which case such
payment shall be due on the immediately preceding Business Day.
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(c) Currency of Payment.
(i) LSI shall pay principal of, interest on and all other
amounts related to U.S. Borrowings in Dollars, and LLJS shall pay
principal of, interest on and all other amounts related to the
Japanese Borrowing in Yen. Borrowers shall pay all other amounts
payable under this Agreement and the other Credit Documents in
Dollars. If, for any reason, LLJS is prohibited by any
Governmental Rule from making any required Yen payment hereunder
in Yen, LLJS shall make such payment in Dollars in the Dollar
Equivalent of such Yen amount.
(ii) If any amounts required to be paid by either Borrower
under this Agreement, any other Credit Document or any order,
judgment or award given or rendered in relation hereto or thereto
has to be converted from the currency (the "first currency") in
which the same is payable hereunder or thereunder into another
currency (the "second currency") for the purpose of (A) making or
filing a claim or proof against such Borrower with any
Governmental Authority, (B) obtaining an order or judgment in any
court or other tribunal or (C) enforcing any order or judgment
given or made in relation hereto, such Borrower shall, to the
fullest extent permitted by law, indemnify and hold harmless each
of the Persons to whom such amounts are payable from and against
any loss suffered as a result of any discrepancy between (1) the
rate of exchange used for such purpose to convert the amounts in
question from the first currency into the second currency and (2)
the rate or rates of exchange at which such Person may, using
reasonable efforts in the ordinary course of business, purchase
the first currency with the second currency upon receipt of a sum
paid to it in satisfaction, in whole or in part, of any such
order, judgment, claim or proof. The foregoing indemnity shall
constitute a separate obligation of each Borrower distinct from
their other respective obligations hereunder and shall survive
the giving or making of any judgment or order in relation to all
or any of such obligations. The respective obligations of
Borrowers under this Subparagraph 2.06(c) shall survive the
payment and performance of their respective Obligations and the
termination of this Agreement.
(d) Late Payments. If any amount required to be paid by either
Borrower under this Agreement or the other Credit Documents (including,
without limitation, principal or interest payable on any Loan, any fees
or any other amount) remains unpaid after such amount is due and after
the expiration of any applicable grace period, such Borrower shall pay
interest on the aggregate, outstanding balance of such amount from the
date due until such amount is paid in full at a per annum rate equal to
(i) in the case any amount payable in Dollars, the Base Rate plus two
percent (2.00%), such rate to change from time to time as the Base Rate
shall change, and (ii) in the case of any amount payable in Yen, the
Overnight Rate for such amount plus three percent (3.00%), such rate to
change from time to time as the Overnight Rate shall change.
(e) Application of Payments. Unless an Event of Default has
occurred and is continuing, each Borrower may specify that any payment
made by such Borrower be applied to any amount then due and owing under
this Agreement or the other Credit
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Documents in a written notice given to Agent at the time such payment is
made. Upon an Event of Default or if the applicable Borrower does not so
specify the application of any payment, (i) all payments hereunder shall
be applied first to unpaid fees, costs and expenses then due and payable
under this Agreement or the other Credit Documents, second to accrued
interest then due and payable under this Agreement or the other Credit
Documents and finally to reduce the principal amount of outstanding
Loans, and (ii) a payment in Dollars to be applied to accrued interest
or principal shall be applied to all accrued interest or principal then
due and payable on all outstanding U.S. Loans and a payment in Yen to be
applied to accrued interest or principal shall be applied to all accrued
interest or principal then due and payable on all outstanding Japanese
Loans.
(f) Failure to Pay Agent. Unless Agent shall have received notice
from a Borrower at least one (1) Business Day prior to the date on which
any payment is due to Lenders hereunder that such Borrower will not make
such payment in full, Agent shall be entitled to assume that such
Borrower has made or will make such payment in full to Agent on such
date and Agent may, in reliance upon such assumption, cause to be paid
to the applicable Lenders on such due date an amount equal to the amount
then due such Lenders. If and to the extent such Borrower shall not have
so made such payment in full to Agent, each such Lender shall repay to
Agent forthwith on demand such amount distributed to such Lender
together with interest thereon, for each day from the date such amount
is distributed to such Lender until the date such Lender repays such
amount to Agent, at a per annum rate equal to (i) the Federal Funds Rate
for the first three (3) days and the Base Rate thereafter for any amount
in Dollars or (ii) the Overnight Rate plus one percent (1%) for any
amount in Yen. A certificate of Agent submitted to any Lender with
respect to any amount owing by such Lender under this Subparagraph
2.06(f) shall constitute prima facie evidence of such amount.
2.07. Loan Accounts; Notes.
(a) Loan Accounts. The obligation of each Borrower to repay the
Loans made to it by each Lender and to pay interest thereon at the rates
provided herein shall be evidenced by an account or accounts maintained
by such Lender on its books (individually, a "Loan Account"), except
that any Lender may request that its U.S. Loans be evidenced by a note
or notes pursuant to Subparagraph 2.07(b). Each Lender shall record in
its Loan Accounts (i) the date and amount of each Loan made by such
Lender, (ii) the interest rates applicable to each such Loan and the
effective dates of all changes thereto, (iii) the Interest Period for
each LIBOR Loan and each Japanese Loan, (iv) the date and amount of each
principal and interest payment on each Loan and (v) such other
information as such Lender may determine is necessary for the
computation of principal and interest payable to it by each Borrower
hereunder; provided, however, that any failure by a Lender to make, or
any error by any Lender in making, any such notation shall not affect
Borrowers' Obligations hereunder. The Loan Accounts shall constitute
prima facie evidence of the matters noted therein.
(b) Notes. If any Lender so requests, such Lender's U.S. Loans
shall be evidenced by one or more promissory notes in the form of
Exhibit F (individually, a "Note"), each of which shall be (i) payable
to the order of such Lender, (ii) in the amount
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of such Lender's U.S. Revolving Commitment or U.S. 364 Day Commitment,
as the case may be, (iii) dated the U.S. Closing Date, and (iv)
otherwise appropriately completed.
2.08. Loan Funding.
(a) Lender Funding and Disbursements to Borrowers.
(i) Each U.S. Lender shall, before 12:00 noon (Chicago
time) on the date of each U.S. Borrowing, make available to Agent
at Agent's U.S. office specified in Paragraph 8.01, in
immediately available funds, such Lender's Proportionate Share of
such U.S. Borrowing. After Agent's receipt of such funds and upon
satisfaction of the applicable conditions set forth in Section
III, Agent shall promptly disburse such funds to LSI no later
than 2:00 p.m. (Chicago time) in immediately available funds.
Agent shall disburse the proceeds of such U.S. Borrowing to the
account or accounts specified by LSI in the applicable Notice of
U.S. Borrowing.
(ii) Each Japanese Lender shall, before 10:00 a.m. (Tokyo
time) on the date of the Japanese Borrowing, make available to
Agent at Agent's Tokyo office specified in Paragraph 8.01, in
immediately available funds, such Lender's Proportionate Share of
the Japanese Borrowing. After Agent's receipt of such funds and
upon satisfaction of the applicable conditions set forth in
Section III, Agent shall promptly disburse such funds to LLJS no
later than 1:00 p.m. (Tokyo time) in immediately available funds.
Agent shall disburse the proceeds of the Japanese Borrowing to
the account or accounts specified by LLJS in the Notice of
Japanese Borrowing.
(b) Lender Failure to Fund. Unless Agent shall have received
notice from a Lender prior to the date of any Borrowing that such Lender
will not make available to Agent such Lender's Proportionate Share of
such Borrowing, Agent shall be entitled to assume that such Lender has
made or will make such portion available to Agent on the date of such
Borrowing in accordance with Subparagraph 2.08(a), and Agent may on such
date, in reliance upon such assumption, disburse or otherwise credit to
the applicable Borrower a corresponding amount. If any Lender does not
make the amount of its Proportionate Share of such Borrowing available
to Agent on or prior to the date of such Borrowing, such Lender shall
pay to Agent, on demand, interest which shall accrue on such amount from
the date of such Borrowing until such amount is paid to Agent at rates
equal to (i) the Federal Funds Rate for the first three (3) days and the
Base Rate thereafter for any amount in Dollars or (ii) the Overnight
Rate plus one percent (1%) for any amount in Yen. A certificate of Agent
submitted to any Lender with respect to any amount owing by such Lender
under this Subparagraph 2.08(b) shall constitute prima facie evidence of
such amount. If the amount of any Lender's Proportionate Share of any
Borrowing is not paid to Agent by such Lender within three (3) Business
Days after the date of such Borrowing, the applicable Borrower shall
repay such amount to Agent, on demand, together with interest thereon,
for each day from the date such amount was disbursed to such Borrower
until the date such amount is repaid to Agent, at the interest rate
applicable at the time to the Loans comprising such Borrowing.
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(c) Lenders' Obligations Several. The failure of any Lender to
make a Loan to be made by it as part of any Borrowing shall not relieve
any other Lender of its obligation hereunder to make its Loan as part of
such Borrowing, but no Lender shall be obligated in any way to make any
Loan which another Lender has failed or refused to make or otherwise be
in any way responsible for the failure or refusal of any other Lender to
make any Loan required to be made by such other Lender.
2.09. Pro Rata Treatment.
(a) Borrowings, Commitment Reductions, Etc. Except as otherwise
provided herein:
(i) Each U.S. Revolving Borrowing and reduction in the
Total U.S. Revolving Commitment shall be made or shared by U.S.
Lenders with U.S. Revolving Commitments pro rata according to
their applicable respective U.S. Revolving Commitments, each U.S.
364 Day Borrowing and reduction in the Total U.S. 364 Day
Commitment shall be made or shared by U.S. Lenders with U.S. 364
Day Commitments pro rata according to their applicable respective
U.S. 364 Day Commitments, and the Japanese Borrowing shall be
made by Japanese Lenders pro rata according to their applicable
respective Japanese Commitments;
(ii) Each payment of principal on Loans in any Borrowing
shall be shared among Lenders which made or funded the Loans in
such Borrowing pro rata according to the respective unpaid
principal amounts of such Loans then owed to such Lenders;
(iii) Each payment of interest on Loans in any Borrowing
shall be shared among Lenders which made or funded the Loans in
such Borrowing pro rata according to (A) the respective unpaid
principal amounts of such Loans so made or funded by such Lenders
and (B) the dates on which such Lenders so made or funded such
Loans;
(iv) Each payment of U.S. Revolving Commitment Fees shall
be shared among U.S. Lenders with U.S. Revolving Commitments
(except for Defaulting Lenders) pro rata according to (A) their
respective Proportionate Shares of the Total U.S. Revolving
Commitment and (B) in the case of each U.S. Lender which becomes
a U.S. Lender with a U.S. Revolving Commitment hereunder after
the date hereof and before the Revolving Termination Date, the
date upon which such U.S. Lender so became a U.S. Lender with a
U.S. Revolving Commitment;
(v) Each payment of U.S. 364 Day Commitment Fees shall be
shared among U.S. Lenders with U.S. 364 Day Commitments (except
for Defaulting Lenders) pro rata according to (A) their
respective Proportionate Shares of the Total U.S. 364 Day
Commitment and (B) in the case of each U.S. Lender which becomes
a U.S. Lender with a U.S. 364 Day Commitment hereunder after the
date
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hereof and before the U.S. 364 Day Termination Date, the date
upon which such U.S. Lender so became a U.S. Lender with a U.S.
364 Day Commitment;
(vi) Each payment of interest (other than interest on
Loans) shall be shared among Lenders and Agent owed the amount
upon which such interest accrues pro rata according to (A) the
respective amounts so owed such Lenders and Agent and (B) the
dates on which such amounts became owing to such Lenders and
Agent; and
(vii) All other payments under this Agreement and the
other Credit Documents shall be for the benefit of the Person or
Persons specified.
(b) Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any
right of setoff, or otherwise) on account of Loans owed to it as part of
any Borrowing in excess of its ratable share of payments on account of
all Loans in such Borrowing obtained by all applicable Lenders entitled
to such payments, such Lender shall forthwith purchase from such other
Lenders such participations in their Loans as shall be necessary to
cause such purchasing Lender to share the excess payment ratably with
each of them; provided, however, that if all or any portion of such
excess payment is thereafter recovered from such purchasing Lender, such
purchase shall be rescinded and each other applicable Lender shall repay
to the purchasing Lender the purchase price to the extent of such
recovery together with an amount equal to such other Lender's ratable
share (according to the proportion of (i) the amount of such other
Lender's required repayment to (ii) the total amount so recovered from
the purchasing Lender) of any interest or other amount paid or payable
by the purchasing Lender in respect of the total amount so recovered.
Each Borrower agrees that any Lender so purchasing a participation from
another Lender pursuant to this Subparagraph 2.09(b) may, to the fullest
extent permitted by law, exercise all its rights of payment (including
the right of setoff) with respect to such participation as fully as if
such Lender were the direct creditor of such Borrower in the amount of
such participation.
2.10. Change of Circumstances.
(a) Inability to Determine Rates. If, on or before the first day
of any Interest Period for any LIBOR Loan or any Japanese Loan, (i) any
U.S. Lender or Japanese Lender, as the case may be, shall advise Agent
that the LIBO Rate or TIBO Rate, as the case may be, for such Interest
Period cannot be adequately and reasonably determined due to the
unavailability of funds in or other circumstances affecting the London
interbank market or the Tokyo interbank market, as the case may be, or
(ii) any U.S. Lender or Japanese Lender, as the case may be, shall
advise Agent that the rate of interest for such Loan does not adequately
and fairly reflect the cost to such Lender of making or maintaining such
Loan, Agent shall immediately give notice of such condition to the
applicable Borrower and the other U.S. Lenders or Japanese Lenders, as
the case may be. After the giving of any such notice and until Agent
shall otherwise notify the applicable Borrower that the circumstances
giving rise to such condition no longer exist, such Borrower's right to
obtain, continue or convert to LIBOR Loans or Japanese Loans, as the
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case may be, shall be suspended. Any LIBOR Loans outstanding at the
commencement of any such suspension affecting the LIBO Rate shall be
converted at the end of the then current Interest Period for such LIBOR
Loans into Base Rate Loans unless such suspension has then ended. All
Japanese Loans outstanding at the commencement of any such suspension
affecting the TIBO Rate shall after the end of the then current Interest
Period for such Japanese Loans bear interest at the Overnight Rate plus
one percent (1.0%), such rate to change from time to time as the
Overnight Rate shall change, until such suspension has ended.
(b) Illegality. If, after the date of this Agreement, the
adoption of any Governmental Rule, any change in any Governmental Rule
or the application or requirements thereof (whether such change occurs
in accordance with the terms of such Governmental Rule as enacted, as a
result of amendment or otherwise), any change in the interpretation or
administration of any Governmental Rule by any Governmental Authority,
or compliance by any Lender with any request or directive (whether or
not having the force of law) of any Governmental Authority (a "Change of
Law") shall make it unlawful or impossible for any U.S. Lender to make
or maintain any LIBOR Loans or any Japanese Lender to make or maintain
any Japanese Loans, such Lender shall immediately notify Agent and the
applicable Borrower of such Change of Law. Upon receipt of such notice,
(i) such Borrower's right to obtain, continue or convert to LIBOR Loans
or Japanese Loans, as the case may be, shall be suspended until such
time as Agent shall notify such Borrower and the applicable Lenders that
the circumstances giving rise to such suspension no longer exist, and
(ii) such Borrower shall, if so requested by such Lender, immediately
repay such Loans if such Lender shall notify such Borrower that such
Lender may not lawfully continue to fund and maintain such Loans. Any
conversion or prepayment of LIBOR Loans or Japanese Loans made pursuant
to the preceding sentence prior to the last day of an Interest Period
for such Loans shall be deemed a prepayment thereof for purposes of
Paragraph 2.12. After any Lender notifies Agent and the applicable
Borrower of such a Change in Law and until such Lender notifies Agent
and such Borrower that it is no longer unlawful or impossible for such
Lender to make or maintain a LIBOR Loan, all U.S. Loans of such Lender
shall be Base Rate Loans.
(c) Increased Costs. If, after the date of this Agreement, any
Change of Law:
(i) Shall subject any U.S. Lender or Japanese Lender to
any tax, duty or other charge with respect to any LIBOR Loan or
Japanese Loan, as the case may be, or shall change the basis of
taxation of payments by either Borrower to any such Lender on or
in respect to such LIBOR Loan or Japanese Loan, as the case may
be, under this Agreement (except for changes in the rate of
taxation on the overall net income of such Lender imposed by its
jurisdiction of incorporation or the jurisdiction of its
Applicable Lending Office); or
(ii) Shall impose, modify or hold applicable any reserve
(excluding any Reserve Requirement or other reserve to the extent
included in the calculation of the LIBO Rate or TIBO Rate for any
Loans), special deposit or similar requirement against assets
held by, deposits or other liabilities in or for the
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account of, advances or loans by, or any other acquisition of
funds by any Lender for any LIBOR Loans or Japanese Loans, as
the case may be; or
(iii) Shall impose on any Lender any other condition
related to any LIBOR Loans or Japanese Loans or such Lender's
Commitments;
And the effect of any of the foregoing is to increase the cost to such
Lender of making, continuing or maintaining any such LIBOR Loans,
Japanese Loans or its Commitments or to reduce any amount receivable by
such Lender hereunder; then the applicable Borrower shall from time to
time, within twenty (20) days after written demand by such Lender, pay
to such Lender additional amounts sufficient to reimburse such Lender
for such increased costs or to compensate such Lender for such reduced
amounts; provided, however, that such Borrower shall have no obligation
to make any payment to any demanding party under this Subparagraph
2.10(c) on account of any such increased costs or reduced amounts unless
such Borrower receives notice of such increased costs or reduced amounts
from the demanding party within six (6) months after they are incurred
or realized. A certificate setting forth in reasonable detail the amount
of such increased costs or reduced amounts, submitted by such Lender to
such Borrower, shall constitute prima facie evidence of such costs or
amounts. The obligations of Borrowers under this Subparagraph 2.10(c)
shall survive the payment and performance of the Obligations and the
termination of this Agreement.
(d) Capital Requirements. If, after the date of this Agreement,
any Lender determines that (i) any Change of Law affects the amount of
capital required or expected to be maintained by such Lender or any
Person controlling such Lender (a "Capital Adequacy Requirement") and
(ii) the amount of capital maintained by such Lender or such Person
which is attributable to or based upon the Loans, the Commitments or
this Agreement must be increased as a result of such Capital Adequacy
Requirement (taking into account such Lender's or such Person's policies
with respect to capital adequacy), the applicable Borrower shall pay to
such Lender or such Person, within twenty (20) days after written demand
of such Lender, such amounts as such Lender or such Person shall
determine are necessary to compensate such Lender or such Person for the
increased costs to such Lender or such Person of such increased capital;
provided, however, that such Borrower shall have no obligation to make
any payment to any demanding party under this Subparagraph 2.10(d) on
account of any such increased costs unless such Borrower receives notice
of such increased costs from the demanding party within twelve (12)
months after they are incurred or realized. A certificate setting forth
in reasonable detail the amount of such increased costs, submitted by
any Lender to such Borrower, shall constitute prima facie evidence of
such costs. The obligations of Borrowers under this Subparagraph 2.10(d)
shall survive the payment and performance of the Obligations and the
termination of this Agreement.
(e) Mitigation. Any Lender which becomes aware of (i) any Change
of Law which will make it unlawful or impossible for such Lender to make
or maintain any LIBOR Loan or Japanese Loan or (ii) any Change of Law or
other event or condition which will obligate either Borrower to pay any
amount pursuant to Subparagraph 2.10(c) or Subparagraph 2.10(d) shall
notify such Borrower and Agent thereof as promptly as
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practical. If any Lender has given notice of any such Change of Law or
other event or condition and thereafter becomes aware that such Change
of Law or other event or condition has ceased to exist, such Lender
shall notify such Borrower and Agent thereof as promptly as practical.
Each Lender affected by any Change of Law which makes it unlawful or
impossible for such Lender to make or maintain any LIBOR Loan or
Japanese Loan or to which either Borrower is obligated to pay any amount
pursuant to Subparagraph 2.10(c) or Subparagraph 2.10(d) shall use
reasonable commercial efforts (including changing the jurisdiction of
its Applicable Lending Offices) to avoid the effect of such Change of
Law or to avoid or materially reduce any amounts which either Borrower
is obligated to pay pursuant to Subparagraph 2.10(c) or Subparagraph
2.10(d) if, in the reasonable opinion of such Lender, such efforts would
not be disadvantageous to such Lender or contrary to such Lender's
normal banking practices.
2.11. Taxes on Payments.
(a) Payments Free of Taxes. All payments made by Borrowers under
this Agreement and the other Credit Documents shall be made free and
clear of, and without deduction or withholding for or on account of, all
present and future income, stamp, documentary and other taxes and
duties, and all other levies, imposts, charges, fees, deductions and
withholdings, now or hereafter imposed, levied, collected, withheld or
assessed by any Governmental Authority (except net income taxes and
franchise taxes in lieu of net income taxes imposed on Agent or any
Lender by its jurisdiction of incorporation or the jurisdiction in which
its Applicable Lending Office is located) (all such non-excluded taxes,
duties, levies, imposts, duties, charges, fees, deductions and
withholdings being hereinafter called "Taxes"). If any Taxes are
required to be withheld from any amounts payable to Agent or any Lender
hereunder or under the other Credit Documents, the amounts so payable to
Agent or such Lender shall be increased to the extent necessary to yield
to Agent or such Lender (after payment of all Taxes) interest or any
such other amounts payable hereunder at the rates or in the amounts
specified in this Agreement and the other Credit Documents. Whenever any
Taxes are payable by either Borrower, as promptly as possible
thereafter, such Borrower shall send to Agent for its own account or for
the account of such Lender, as the case may be, a certified copy of an
original official receipt received by such Borrower showing payment
thereof. If either Borrower fails to pay any Taxes when due to the
appropriate taxing authority or fails to remit to Agent the required
receipts or other required documentary evidence, such Borrower shall
indemnify Agent and Lenders for any Taxes (including interest or
penalties) that may become payable by Agent or any Lender as a result of
any such failure. The obligations of Borrowers under this Subparagraph
2.11(a) shall survive the payment and performance of the Obligations and
the termination of this Agreement.
(b) Withholding Exemption Certificates. On or prior to the
applicable Closing Date, each U.S. Lender which is not organized under
the laws of the United States of America or a state thereof and each
Japanese Lender which is not organized under the laws of Japan shall
deliver to LSI or LLJS, respectively, and Agent such certificates and
other evidence as such Borrower or Agent may reasonably request to
establish that such Lender is entitled to receive payments under this
Agreement on account of any U.S. Borrowing or the Japanese Borrowing, as
the case may be, without
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deduction or withholding of any United States federal income taxes or
Japanese income taxes, respectively. Each such Lender further agrees (i)
promptly to notify the applicable Borrower and Agent of any change of
circumstances (including any change in any treaty, law or regulation)
which would prevent such Lender from receiving payments hereunder
without any deduction or withholding of such taxes and (ii) on or before
the date that any certificate or other form delivered by such Lender
under this Subparagraph 2.11(b) expires or becomes obsolete or after the
occurrence of any event requiring a change in the most recent such
certificate or form previously delivered by such Lender, to deliver to
the applicable Borrower and Agent a new certificate or form, certifying
that such Lender is entitled to receive payments under this Agreement
without deduction or withholding of such taxes. If any Lender fails to
provide to Borrowers or Agent pursuant to this Subparagraph 2.11(b) (or,
in the case of an Assignee Lender, Subparagraph 8.05(c)) any
certificates or other evidence required by such provision to establish
that such Lender is, at the time it becomes a Lender hereunder, entitled
to receive payments under this Agreement on account of any U.S.
Borrowing or the Japanese Borrowing, as the case may be, without
deduction or withholding of any United States federal income taxes or
Japanese income taxes, respectively, such Lender shall not be entitled
to any indemnification under Subparagraph 2.11(a) for any Taxes imposed
on such Lender primarily as a result of such failure.
(c) Mitigation. If Agent or any Lender claims any additional
amounts to be payable to it pursuant to this Paragraph 2.11, such Person
shall use reasonable commercial efforts to file any certificate or
document requested in writing by the applicable Borrower reflecting a
reduced rate of withholding or to change the jurisdiction of its
Applicable Lending Office if the making of such a filing or such change
in the jurisdiction of its Applicable Lending Office would avoid the
need for or materially reduce the amount of any such additional amounts
which may thereafter accrue and if, in the reasonable opinion of such
Person, in the case of a change in the jurisdiction of its Applicable
Lending Office, such change would not be disadvantageous to such Person
or contrary to such Person's normal banking practices.
(d) Tax Returns. Nothing contained in this Paragraph 2.11 shall
require Agent or any Lender to make available any of its tax returns (or
any other information relating to its taxes which it deems to be
confidential).
(e) Lender Rate Contracts. Nothing contained in this Paragraph
2.11 shall override or supercede any term or provision of any Lender
Rate Contract regarding withholding taxes relating to Rate Contracts.
2.12. Funding Loss Indemnification. If either Borrower shall (a) repay
or prepay any LIBOR Loan or Japanese Loan, or convert any LIBOR Loan, on any day
other than the last day of an Interest Period therefor (whether a scheduled
payment, an optional prepayment or conversion, a mandatory prepayment or
conversion, a payment upon acceleration or otherwise), (b) fail to borrow any
LIBOR Loan or Japanese Loan after delivering the applicable Notice of Borrowing
therefor to Agent (whether as a result of the failure to satisfy any applicable
conditions or otherwise) or (c) fail to convert any U.S. Borrowing into LIBOR
Loans in accordance with a Notice of U.S. Borrowing Conversion delivered to
Agent (whether as a result
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of the failure to satisfy any applicable conditions or otherwise), such Borrower
shall, within twenty (20) days after written demand of such Lender, reimburse
such Lender for and hold such Lender harmless from all reasonable costs and
losses incurred by such Lender as a result of such repayment, prepayment,
conversion or failure; provided, however, that such Borrower shall have no
obligation to make any payment to any demanding party under this Paragraph 2.12
on account of any such costs or losses unless such Borrower receives notice of
such costs or losses from the demanding party within six (6) months after they
are incurred or realized. Borrowers understand that such costs and losses may
include, without limitation, losses incurred by a Lender as a result of funding
and other contracts entered into by such Lender to fund a LIBOR Loan or Japanese
Loan. Each Lender demanding payment under this Paragraph 2.12 shall deliver to
the applicable Borrower, with a copy to Agent, a certificate setting forth the
amount of costs and losses for which demand is made, which certificate shall set
forth in reasonable detail the calculation of the amount demanded. Such a
certificate so delivered to such Borrower shall constitute prima facie evidence
of such costs and losses. The obligations of Borrowers under this Paragraph 2.12
shall survive the payment and performance of the Obligations and the termination
of this Agreement.
2.13. Security.
(a) The Obligations of LLJS shall be secured by a guaranty duly
executed by LSI in the form of Exhibit G (the "LSI Guaranty").
(b) Further Assurances. Each Borrower shall deliver to Agent such
other instruments, agreements, certificates, opinions and documents
(including Uniform Commercial Code financing statements) as Agent may
reasonably request to implement the provisions of Subparagraph 2.13(a)
and otherwise to establish, maintain, protect and evidence the rights
provided to Agent, for the benefit of Agents and Lenders, pursuant to
the Security Documents. Each Borrower shall fully cooperate with Agent
and Lenders and perform all additional acts reasonably requested by
Agent or any Lender to effect the purposes of this Paragraph 2.13.
2.14. Replacement of Lenders. If any Lender shall (a) become a
Defaulting Lender more than one (1) time in a period of twelve (12) consecutive
months, (b) continue as a Defaulting Lender for more than five (5) Business Days
at any time, (c) suspend its obligation to make or maintain LIBOR Loans or
Japanese Loans pursuant to Subparagraph 2.10(b) for a reason which is not
applicable to any other Lender or (d) demand any payment under Subparagraph
2.10(c), 2.10(d) or 2.11(a) for a reason which is not applicable to any other
Lender, then Agent may (or upon the written request of Borrowers, shall) replace
such Lender (the "affected Lender"), or cause such affected Lender to be
replaced, with another lender (the "replacement Lender") satisfying the
requirements of an Assignee Lender under Subparagraph 8.05(c), by having the
affected Lender sell and assign all of its rights and obligations under this
Agreement and the other Credit Documents to the replacement Lender pursuant to
Subparagraph 8.05(c); provided, however, that if Borrowers seek to exercise such
right, they must do so within sixty (60) days after either Borrower first knows
or should have known of the occurrence of the event or events giving rise to
such right, and neither Agent nor any Lender shall have any obligation to
identify or locate a replacement Lender for Borrowers. Upon receipt by any
affected Lender of a written notice from Agent stating that Agent is exercising
the replacement right set forth in this Paragraph 2.14, such affected Lender
shall sell and assign all of its rights
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and obligations under this Agreement and the other Credit Documents to the
replacement Lender pursuant to an Assignment Agreement and Subparagraph 8.05(c)
for a purchase price equal to the sum of the principal amount of the affected
Lender's Loans so sold and assigned, all accrued and unpaid interest thereon and
its ratable share of all fees to which it is entitled.
SECTION III. CONDITIONS.
3.01. Initial Closing Date Conditions. The obligations of the applicable
Lenders to make the Loans to be made on the Initial Closing Date are subject to
(a) receipt by Agent, on or prior to the Initial Closing Date, of each item
listed in Part I of Schedule 3.01, each in form and substance satisfactory to
Agent and each Lender, and with sufficient copies for, Agent and each Lender,
(b) the termination of the Outstanding U.S. Loan Facility and payment by LSI in
full of all amounts payable thereunder, (c) either confirmation in form and
substance satisfactory to Agent and each Lender that the transactions
contemplated by this Agreement do not contravene the provisions of the
Outstanding Japanese Loan Facility, if the Initial Closing Date is the U.S.
Closing Date, or the termination of the Outstanding Japanese Loan Facility and
payment by LLJS in full of all amounts payable thereunder, if the Initial
Closing Date is the Japanese Closing Date, and (d) confirmation in form and
substance satisfactory to Agent and each Lender that the transactions
contemplated by this Agreement do not contravene the provisions of the
Outstanding Japanese Lease Facility. The obligations of the applicable Lenders
to maintain the Loans made on the Initial Closing Date are subject to receipt by
Agent within ten (10) Business Days after the Initial Closing Date of each item
listed in Part II of Schedule 3.01, each in form and substance satisfactory to
Agent and each Lender, and with sufficient copies for, Agent and each Lender.
3.02. Second Closing Date Conditions Precedent. The obligations of the
applicable Lenders to make the Loans to be made on the Second Closing Date are
subject to (a) the satisfaction of the conditions set forth in Paragraph 3.01,
(b) if such Loans are U.S. Loans, the receipt by Agent, on or prior to the
Second Closing Date, of each Note requested by a U.S. Lender, each duly executed
by LSI, and (c) if such Loans are Japanese Loans, the receipt by Agent of the
LSI Guaranty duly executed by LSI and the termination of the Outstanding
Japanese Loan Facility and payment by LLJS in full of all amounts payable
thereunder on or prior to the Second Closing Date.
3.03. Conditions Precedent to Each Credit Event. The occurrence of each
Credit Event (including the initial Borrowing) is subject to the further
conditions that:
(a) Borrowers shall have delivered to Agent the Notice of
Borrowing, Notice of U.S. Borrowing Conversion or Notice of Interest
Period Selection, as the case may be, for such Credit Event in
accordance with this Agreement; and
(b) On the date such Credit Event is to occur and after giving
effect to such Credit Event, the following shall be true and correct:
(i) The representations and warranties of Borrowers and
their Subsidiaries set forth in Paragraph 4.01 and in the other
Credit Documents are
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true and correct in all material respects as if made on such date
(except for representations and warranties expressly made as of a
specified date, which shall be true in all material respects as
of such date); and
(ii) No Default has occurred and is continuing or will
result from such Credit Event.
The submission by either Borrower to Agent of each Notice of Borrowing, each
Notice of U.S. Borrowing Conversion (other than a notice for a conversion to
Base Rate Loans) and each Notice of Interest Period Selection (other than a
notice selecting an Interest Period of one (1) month for the Japanese Borrowing)
shall be deemed to be a representation and warranty by such Borrower that each
of the statements set forth above in this Subparagraph 3.03(b) is true and
correct as of the date of such notice.
3.04. Covenant to Deliver. Unless a condition is waived by Agent,
Borrowers agree (not as a condition but as a covenant) to deliver to Agent each
item required to be delivered to Agent as a condition to the occurrence of any
Credit Event if such Credit Event occurs. Borrowers expressly agree that the
occurrence of any such Credit Event prior to the receipt by Agent of any such
item shall not constitute a waiver by Agent or any Lender of Borrowers'
obligation to deliver such item, unless expressly waived in writing by Agent.
SECTION IV. REPRESENTATIONS AND WARRANTIES.
4.01. Borrowers' Representations and Warranties. In order to induce
Agent and Lenders to enter into this Agreement, Borrowers hereby represent and
warrant to Agent and Lenders as follows:
(a) Organization and Powers. Each of Borrowers and the
Significant Subsidiaries is a corporation or partnership duly organized
or formed, as the case may be, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation, is
qualified to do business and is in good standing in each jurisdiction in
which the failure so to qualify or be in good standing would result in a
Material Adverse Effect and has all requisite power and authority to own
its assets and carry on its business and, with respect to each Borrower,
to execute, deliver and perform its obligations under the Credit
Documents and the Symbios Acquisition Documents to which it is a party.
(b) Authorization; No Conflict. The execution, delivery and
performance by each Borrower of the Credit Documents and the Symbios
Acquisition Documents to which it is a party have been duly authorized
by all necessary corporate action of each Borrower and do not and will
not (i) contravene the terms of the certificate or articles, as the case
may be, of incorporation and the bylaws of either Borrower or result in
a breach of or constitute a material default under any material
Contractual Obligation to which either Borrower is a party or by which
it or its properties may be bound or affected; or (ii) violate in any
material respect any provision of Governmental Rule binding on or
affecting either Borrower.
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(c) Binding Obligation. The Credit Documents and the Symbios
Acquisition Documents constitute, or when delivered will constitute,
legal, valid and binding obligations of each Borrower which is a party
thereto, enforceable against such Borrower in accordance with their
respective terms, except to the extent the enforceability thereof would
be subject to bankruptcy, insolvency, receivership or similar laws
providing relief from creditors, or principles of equity generally.
(d) Governmental Consents. No authorization, consent, approval,
license, exemption of, or filing or registration with, any Governmental
Authority, or approval or consent of any other Person, is required for
the due execution, delivery or performance by either Borrower of any of
the Credit Documents or the Symbios Acquisition Documents except those
set forth on Schedule 4.01(d) which have been obtained or made and are
in full force and effect.
(e) No Defaults. None of Borrowers and their Significant
Subsidiaries is in default under any material Contractual Obligation or
Governmental Rule to which it is a party or by which it or its
properties may be bound which, individually or together with all such
defaults, could reasonably be expected to have a Material Adverse
Effect.
(f) Title to Properties. Each Borrower and each Significant
Subsidiary has good record and marketable title in fee simple to, or
valid leasehold interests in, all real property necessary or used in the
ordinary conduct of their respective businesses, except for such defects
in title as could not, individually or in the aggregate, have a Material
Adverse Effect. The property of Borrowers and their Significant
Subsidiaries is subject to no Liens, other than Liens permitted under
Subparagraph 5.02(a).
(g) Litigation. Except as set forth in Schedule 4.01(g), there
are no actions, suits or proceedings pending or, to the best of either
Borrower's knowledge, threatened against or affecting such Borrower or
any of its Significant Subsidiaries or the properties of such Borrower
or any of its Significant Subsidiaries before any Governmental Authority
or arbitrator which is likely to be determined adversely to such
Borrower or any such Significant Subsidiary and would be reasonably
likely to result in a Material Adverse Effect.
(h) Compliance with Consents and Licenses. Every consent required
by either Borrower or any of its Significant Subsidiaries (including
those required under or pursuant to any Environmental Law) in connection
with the conduct of its business and the ownership, use, exploitation or
occupation of its property and assets has been obtained and is in full
force and effect and there has not been any default in the observance of
the conditions and restrictions (if any) imposed in, or in connection
with, any of the same, except where the failure to obtain any of the
foregoing would not reasonably be expected to have a Material Adverse
Effect.
(i) Compliance with Environmental Law. Except as set forth in
Schedule 4.01(i), to the best of each Borrower's knowledge after due
investigation, (i) the properties of each Borrower and its Subsidiaries
do not contain and have not previously contained (at, under, or about
any such property) any Hazardous Substances or other
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contamination (A) in amounts or concentrations that constitute or
constituted a violation of, or could give rise to liability under, any
Environmental Laws, in either case where such violation or liability
could reasonably be expected to result in a Material Adverse Effect, (B)
which could interfere with the continued operation of such property, or
(C) which could materially impair the fair market value thereof; and
(ii) there has been no transportation or disposal of Hazardous
Substances from, nor any release or threatened release of Hazardous
Substances at or from, any property of either Borrower or any of its
Subsidiaries in violation of or in any manner which could give rise to
liability under any Environmental Laws, where such violation or
liability, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect.
(j) Governmental Regulation. None of Borrowers and their
Significant Subsidiaries is subject to regulation under the Public
Utility Holding Company Act of 1935, the Federal Power Act, the
Investment Company Act of 1940, the Interstate Commerce Act, any state
public utilities code or any other Governmental Rule limiting its
ability to incur Indebtedness.
(k) Employment Benefit Plans.
(i) Except as specifically disclosed to Agent and Lenders
in writing prior to the date of this Agreement: (A) each Plan is
in compliance in all material respects with the applicable
provisions of ERISA, the IRC and other Governmental Rules; (B)
there are no pending, or to the best knowledge of either
Borrower, threatened, claims, actions or lawsuits, or action by
any Governmental Authority, with respect to any Plan which has
resulted or could reasonably be expected to result in a Material
Adverse Effect; (C) there has been no prohibited transaction or
other violation of the fiduciary responsibility rule with respect
to any Plan which could reasonably result in a Material Adverse
Effect; (D) no ERISA Event has occurred or is reasonably expected
to occur with respect to any Pension Plan; (E) no Pension Plan
has any Unfunded Pension Liability; (F) neither Borrower has
incurred, nor does it reasonably expect to incur, any liability
under Title IV of ERISA with respect to any Pension Plan (other
than premiums due and not delinquent under Section 4007 of
ERISA); (G) no trade or business (whether or not incorporated
under common control with either Borrower within the meaning of
Section 414(b), (c), (m) or (a) of the IRC) maintains or
contributes to any Pension Plan or other Plan subject to Section
412 of the IRC; and (H) none of Borrowers and any entity under
common control with either Borrower in the preceding sentence has
ever contributed to any Multiemployer Plan.
(ii) All employer and employee contributions required by
any applicable Governmental Rule in connection with all Foreign
Plans have been made, or, if applicable, accrued, in accordance
with the country-specific accounting practices. The fair market
value of the assets of each funded Foreign Plan, the liability of
each insurer for any Foreign Plan funded through insurance or the
book reserve established for any Foreign Plan, together with any
accrued contributions, is sufficient to procure or provide for
the accrued benefit
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obligations, as of the date hereof, with respect to all
current and former participants in such Foreign Plan according to
the actuarial assumptions and valuations most recently used to
determine employer contributions to such Foreign Plan, which
actuarial assumptions are commercially reasonable. Each Foreign
Plan required to be registered has been registered and has been
maintained in good standing with applicable Governmental
Authorities. Each Foreign Plan reasonably complies in all
material respects with all applicable Governmental Rules.
(l) Significant Subsidiaries. The name and ownership of each
Significant Subsidiary on the date of this Agreement is as set forth in
Schedule 4.01(l). All of the outstanding capital stock of, or any other
interest in, each such Significant Subsidiary has been validly issued,
and is fully paid and nonassessable.
(m) Margin Regulations. Neither Borrower is engaged in the
business of extending credit for the purpose of purchasing or carrying
"margin stock" (within the meaning of Regulation U of the FRB). No part
of the proceeds of the Loans will be used to purchase or carry any
margin stock or to extend credit to others for the purpose of purchasing
or carrying any margin stock, except in compliance with said Regulation
U.
(n) Taxes. Borrowers and their Significant Subsidiaries have
filed all federal and other material tax returns and reports required to
be filed, and have paid all federal and other material taxes,
assessments, fees and other Governmental Charges levied or imposed upon
them or their properties, income or assets otherwise due and payable,
except those which are being contested in good faith by appropriate
proceedings and for which adequate reserves have been provided in
accordance with GAAP. There is no proposed tax assessment against either
Borrower or any of its Significant Subsidiaries except those for which
adequate reserves have been provided in accordance with GAAP.
(o) Patents and Other Rights. Each Borrower and each Significant
Subsidiary possesses all permits, franchises, licenses, patents,
trademarks, trade names, service marks, copyrights and all rights with
respect thereto, free from maintenance and operation of its business,
except where the failure to obtain any of the foregoing would not
reasonably be expected to have a Material Adverse Effect.
(p) Insurance. The properties of each Borrower and its
Significant Subsidiaries are insured against losses and damages of the
kinds and in amounts which are deemed prudent by such Borrower in its
reasonable business judgment and within the general parameters customary
among similarly situated businesses in the industry, and such insurance
is maintained with financially sound and reputable insurance companies
or pursuant to a plan or plans of self-insurance to such extent as is
usual for companies of similar size engaged in the same or similar
businesses and owning similar properties.
(q) Financial Statements. The audited Financial Statements of
LSI and its Subsidiaries for the fiscal year ended December 31, 1997 and
the unaudited Financial Statements of LSI and its Subsidiaries for the
fiscal quarter ended March 31, 1998 are complete and correct and fairly
present the financial condition of LSI and its Subsidiaries
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as at such dates and the results of operations of LSI and its
Subsidiaries for the periods covered by such statements, in each case in
accordance with GAAP consistently applied, subject, in the case of the
March 31, 1998 Financial Statements, to normal year-end adjustments and
the absence of notes. Since December 31, 1997, there has been no
Material Adverse Effect.
(r) Liabilities. None of Borrowers and their Significant
Subsidiaries has any material liabilities, fixed or contingent, that are
not reflected in the Financial Statements referred to in Subparagraph
4.01(q), in the notes thereto or otherwise disclosed in writing to the
Agent and Lenders, other than liabilities arising in the ordinary course
of business since March 31, 1998.
(s) Labor Disputes. Etc. There are no strikes, lockouts or other
labor disputes against either Borrower or any of its Significant
Subsidiaries, or, to the best of either Borrower's knowledge, threatened
against or affecting either Borrower or any of its Significant
Subsidiaries, which may result in a Material Adverse Effect.
(t) Solvency. Each Borrower and its Subsidiaries on a
consolidated basis are Solvent.
(u) Disclosure. None of the representations or warranties made by
either Borrower in the Credit Documents as of the date of such
representations and warranties, and none of the statements contained in
any exhibit, report, statement or certificate furnished by or on behalf
of either Borrower or any of its Significant Subsidiaries to Agent or
any Lender in connection with the Credit Documents, contains any untrue
statement of a material fact or omits any material fact required to be
stated therein or necessary to make the statements made therein, in
light of the circumstances under which they are made, not misleading in
any material respect as of the time when made or delivered.
4.02. Reaffirmation. Each Borrower shall be deemed to have reaffirmed,
for the benefit of Lenders and Agent, each representation and warranty contained
in Paragraph 4.01 on and as of the date of each Credit Event (except for
representations and warranties expressly made as of a specified date, which
shall be true in all material respects as of such date).
SECTION V. COVENANTS.
5.01. Affirmative Covenants. Until the termination of this Agreement and
the satisfaction in full by each Borrower of all of their respective
Obligations, each Borrower will comply, and will cause compliance, with the
following affirmative covenants, unless Required Lenders shall otherwise consent
in writing:
(a) Financial Statements and Other Reports. LSI, on behalf of
Borrowers, will furnish to Agent in sufficient copies for distribution
to Lenders:
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(i) As soon as available and in any event within fifty
(50) days after the end of each of the first three fiscal
quarters of each fiscal year, the consolidated Financial
Statements of LSI and its Subsidiaries for such fiscal quarter,
prepared in accordance with GAAP consistently applied, all in
reasonable detail;
(ii) As soon as available and in any event within one
hundred (100) days after the end of each fiscal year, the
consolidated Financial Statements of LSI and its Subsidiaries for
such fiscal year, prepared in accordance with GAAP consistently
applied, all in reasonable detail, and accompanied by a report
thereon of PricewaterhouseCoopers LLP or another firm of
independent certified public accountants of recognized national
standing, which report shall be unqualified as to scope of audit
or the status of LSI and its Subsidiaries as a going concern;
(iii) Together with the Financial Statements required
pursuant to clauses (i) and (ii) of this Subparagraph 5.01(a), a
compliance certificate of a Responsible Officer of LSI (a
"Compliance Certificate") which (A) states that such Financial
Statements fairly present the financial condition of LSI and its
Subsidiaries as at the last day of the fiscal quarter or fiscal
year covered by such Financial Statements and the results of
operations of LSI and its Subsidiaries for such quarter or year
and have been prepared in accordance with GAAP consistently
applied, subject to normal, year-end audit adjustments in the
case of the Financial Statements for any fiscal quarter; (B)
states that no Default has occurred and is continuing, or, if any
such Default has occurred and is continuing, a statement as to
the nature thereof and what action LSI or LLJS proposes to take
with respect thereto; and (C) sets forth, for the fiscal quarter
or fiscal year covered by such Financial Statements or as of the
last day of such quarter or year, the calculation of the
financial ratios and tests provided in Paragraph 5.03;
(iv) As soon as available and in any event within fifty
(50) days after the end of each fiscal quarter, a certificate of
a Responsible Officer of LSI (a "Pricing Ratio Certificate")
which sets forth the calculation of the Pricing Ratio as of the
last day of such quarter;
(v) Promptly after the giving, sending or filing thereof,
copies of all reports, if any, which each Borrower or any of its
Subsidiaries sends generally to any class of holders of its
respective capital stock or other securities and of all reports
or filings, if any, by each Borrower or any of its Subsidiaries
with the SEC or any national securities exchange;
(vi) Promptly after either Borrower has knowledge or
becomes aware thereof, notice of the occurrence or existence of
any Default;
(vii) Prompt written notice of any action, event or
occurrence that could reasonably be expected to result in a
Material Adverse Effect due to environmental liability under
Environmental Laws;
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(viii) Prompt written notice of all actions, suits and
proceedings before any Governmental Authority or arbitrator
pending, or to the best of either Borrower's knowledge,
threatened against or affecting either Borrower or any of its
Subsidiaries which (A) if adversely determined would involve an
aggregate liability of $25,000,000 or more in excess of amounts
covered by third-party insurance, or (B) otherwise may have a
Material Adverse Effect;
(ix) Promptly after either Borrower has knowledge or
becomes aware thereof, (A) notice of the occurrence of any ERISA
Event, together with a copy of any notice of such ERISA Event to
the PBGC, and (B) the details concerning any action taken or
proposed to be taken by the IRS, PBGC, Department of Labor or
other Person with respect thereto;
(x) Promptly upon the commencement or increase of
contributions to, the adoption of, or an amendment to, a Plan by
LSI or an ERISA Affiliate, if such commencement or increase of
contributions, adoption, or amendment could reasonably be
expected to result in a net increase in unfunded liability to LSI
or an ERISA Affiliate in excess of $10,000,000, a calculation of
the net increase in unfunded liability;
(xi) Promptly after filing or receipt thereof by LSI or
any ERISA Affiliate, copies of the following:
(A) Any notice received from the PBGC of intent to
terminate or have a trustee appointed to administer any
Pension Plan;
(B) Any notice received from the sponsor of a
Multiemployer Plan concerning the imposition, delinquent
payment, or amount of withdrawal liability;
(C) Any demand by the PBGC under Subtitle D of
Title IV of ERISA; and
(D) Any notice received from the IRS regarding the
disqualification of a Plan intended to qualify under
Section 401(a) of the IRC;
(xii) Within forty-five (45) days of the date thereof, or,
if earlier, on the date of delivery of any Financial Statements
pursuant to clause (i) or (ii) of this Subparagraph 5.01(a),
notice of any change in accounting policies or financial
reporting practices by either Borrower or any of the Significant
Subsidiaries that is expected to affect (or has affected)
materially under U.S. GAAP the consolidated financial condition
of LSI and its Subsidiaries;
(xiii) Promptly after the occurrence thereof, notice of
any labor controversy resulting in or threatening to result in
any strike, work stoppage, boycott, shutdown or other material
labor disruption against or involving either
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Borrower or any of its Subsidiaries which could result in
a Material Adverse Effect;
(xiv) Upon the request from time to time of Agent or any
Lender (through Agent), the Swap Termination Values, together
with a description of the method by which such values were
determined, relating to any then-outstanding Rate Contracts to
which either Borrower or any of its Subsidiaries is party;
(xv) Prompt written notice of any change in either
Borrower's fiscal year;
(xvi) Prompt written notice of any Person or Subsidiary
not identified on Schedule 4.01(l) that becomes a Significant
Subsidiary after the date of this Agreement;
(xvii) Prompt written notice of any other condition or
event which has resulted, or that could reasonably be expected to
result, in a Material Adverse Effect;
(xviii) Prior written notice of any sale of assets other
than in the ordinary course of business (including any sale of
assets to be leased back in connection with a "synthetic" lease
of such assets) or any sale or issuance of Indebtedness for
borrowed money (including Indebtedness evidenced by notes, bonds,
debentures or other similar instruments) for Net Proceeds which
exceed $50,000,000 for any single transaction or series of
related transactions; and
(xix) Such other information respecting the operations,
properties, business or condition (financial or otherwise) of
either Borrower or the Significant Subsidiaries as Agent or any
Lender (through Agent) may from time to time reasonably request.
Each notice pursuant to clauses (vi) -- (xix) of this Subparagraph
5.01(a) shall be accompanied by a written statement by a Responsible
Officer of LSI setting forth details of the occurrence referred to
therein, and stating what action LSI or LLJS proposes to take with
respect thereto.
(b) Preservation of Corporate Existence. Etc. Each Borrower
shall and shall cause each of its Significant Subsidiaries to:
(i) Preserve and maintain in full force and effect its
corporate existence and good standing under the laws of its state
or jurisdiction of incorporation or formation, except in
connection with transactions permitted by Paragraph 5.02 and (B)
in the case of any Significant Subsidiary (other than LLJS) to
the extent that failure to obtain or maintain the foregoing would
not reasonably be expected to have a Material Adverse Effect;
(ii) Preserve and maintain in full force and effect all
governmental rights, privileges, qualifications, permits,
licenses and franchises necessary or
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desirable in the normal conduct of its business, except to
the extent that the failure to obtain or maintain the foregoing
would not reasonably be expected to have a Material Adverse
Effect;
(iii) Use reasonable efforts, in the ordinary course of
business, to preserve its business organization and goodwill,
except in the case of any Significant Subsidiary (other than
LLJS) to the extent that the failure to obtain or maintain the
foregoing would not reasonably be expected to have a Material
Adverse Effect; and
(iv) Preserve or renew all of its registered patents,
trademarks, trade names and service marks, the non-preservation
of which could reasonably be expected to have a Material Adverse
Effect.
(c) Payment of Taxes. Etc. Each Borrower will, and will cause
each of its Significant Subsidiaries to, pay and discharge all material
taxes, fees, assessments, levies and other Governmental Charges imposed
upon it or upon its properties or assets prior to the date on which
penalties attach thereto, and all lawful and material claims for labor,
materials and supplies which, if unpaid, might become a Lien upon any
properties or assets of such Borrower or any of its Significant
Subsidiaries, except to the extent such taxes, fees, assessments, levies
or other Governmental Charges, or such claims, are being contested in
good faith by appropriate proceedings and are adequately reserved
against in accordance with GAAP.
(d) Licenses. Each Borrower will, and will cause each of its
Significant Subsidiaries to, obtain and maintain all licenses,
authorizations, consents, filings, exemptions, registrations and other
governmental approvals necessary in connection with the execution,
delivery and performance of the Credit Documents, the consummation of
the transactions therein contemplated or the operation and conduct of
its business and ownership of its properties, except to the extent that
the failure to obtain or maintain the foregoing would not reasonably be
expected to have a Material Adverse Effect.
(e) Maintenance of Property. Except as otherwise permitted under
Subparagraph 5.02(c) or Subparagraph 5.02(d), each Borrower shall, and
shall cause each of its Subsidiaries to, maintain and preserve all its
property which is used in its business in good working order and
condition in all material respects, ordinary wear and tear excepted.
(f) Insurance. Each Borrower shall maintain, and shall cause each
of its Significant Subsidiaries to maintain, with financially sound and
reputable independent insurers, insurance with respect to its properties
and business against losses and damages of the kinds and in amounts
which are deemed prudent by such Borrower in its reasonable business
judgment and within the general parameters customary among similarly
situated businesses in the industry.
(g) Compliance with Laws. Each Borrower shall comply, and shall
cause each of its Significant Subsidiaries to comply, in all material
respects with the
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requirements of all Environmental Laws and all other Governmental Rules
applicable to it or its business.
(h) Employment Benefit Plans.
(i) LSI shall, and shall cause each of its ERISA
Affiliates to: (A) maintain each Plan in compliance in all
material respects with the applicable provisions of ERISA, the
IRC and other federal or state law; (B) cause each Plan which is
qualified under Section 401(a) of the IRC to maintain such
qualification; and (C) make all required contributions to any
Plan subject to Section 412 of the IRC.
(ii) None of Borrowers and their Significant Subsidiaries
shall (A) engage in any transaction prohibited by any
Governmental Rule applicable to any Foreign Plan, (B) fail to
make full payment when due of all amounts due as contributions to
any Foreign Plan or (C) otherwise fail to comply with the
requirements of any Governmental Rule applicable to any Foreign
Plan, where singly or cumulatively, the above would be reasonably
likely to have a Material Adverse Effect.
(i) Inspection of Property and Books and Records. Each Borrower
shall maintain and shall cause each of its Significant Subsidiaries to
maintain proper books of record and account, in which full, true and
correct entries in conformity with GAAP consistently applied shall be
made of all financial transactions and matters involving the assets and
business of such Borrower or such Significant Subsidiary. Each Borrower
shall permit, and shall cause each of its Significant Subsidiaries to
permit, representatives and independent contractors of Agent or any
Lender to visit and inspect any of their respective properties, to
examine its respective corporate, financial and operating records, and
make copies thereof or abstracts therefrom, and to discuss its
respective affairs, finances and accounts with its respective directors,
officers, and independent public accountants, all at the expense of such
Borrower and at such reasonable times during normal business hours and
as often as may be reasonably desired, upon reasonable advance notice to
such Borrower; provided, however, that (i) unless an Event of Default
shall have occurred and be continuing, (A) Borrowers shall be
responsible under this Subparagraph 5.01(i) for the reasonable costs and
expenses of Agent only, (B) all inspections, visits, examinations and
other actions permitted or authorized hereunder shall be coordinated
only through Borrowers, and (C) physical inspections of either
Borrower's or any such Significant Subsidiary's facilities in Japan
shall be made on two weeks' prior notice and shall occur no more
frequently than semiannually in the case of inspections by Agent and no
more frequently than annually otherwise, and (ii) when an Event of
Default exists Agent or any Lender may make any visit, inspection or
examination or take any other action authorized hereunder at the expense
of Borrowers at any time during normal business hours, without advance
notice and without being subject to any of the other restrictions
described in clause (i).
(j) Use of Proceeds. Except as otherwise expressly provided in
Subparagraph 2.01(h) or Subparagraph 2.02(f), each Borrower will use the
proceeds of the Loans solely
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for general corporate purposes, including for working capital, capital
expenditures, Permitted Investments and Acquisitions. If either Borrower
uses the proceeds of the Loans to purchase or carry "margin stock"
(within the meaning of Regulation U of the FRB) or extend credit to
others for the purpose of purchasing or carrying margin stock, such
Borrower will do so only in compliance with said Regulation U and only
if not more than twenty percent (20%) of the value of the assets of such
Borrower and its Subsidiaries on a consolidated basis consists of margin
stock.
(k) Further Assurances and Additional Acts. Each Borrower will
execute, acknowledge, deliver, file, notarize and register at its own
expense all such further agreements, instruments, certificates,
documents and assurances and perform such acts as Agent or Required
Lenders shall deem necessary or appropriate to effectuate the purposes
of the Credit Documents, and promptly provide Agent with evidence of the
foregoing satisfactory in form and substance to Agent or Required
Lenders.
5.02. Negative Covenants. Until the termination of this Agreement and
the satisfaction in full by each Borrower of all of their respective
Obligations, each Borrower will comply, and will cause compliance, with the
following negative covenants, unless Required Lenders shall otherwise consent in
writing:
(a) Liens. Neither Borrowers nor any of its Significant
Subsidiaries will create, incur, assume or suffer to exist any Lien upon
or with respect to any of their properties, revenues or assets, whether
now owned or hereafter acquired, other than (i) Permitted Liens and (ii)
other Liens that, in the aggregate at any time, secure obligations in an
amount not in excess of ten percent (10%) of Consolidated Total Assets
determined as of the last day of the immediately preceding fiscal
quarter (or fiscal year, as the case may be).
(b) Change in Nature of Business. None of Borrowers and their
Significant Subsidiaries will engage in any material line of business
other than the electronics business and other businesses incidental or
reasonably related thereto.
(c) Restrictions on Fundamental Changes. None of Borrowers and
their Significant Subsidiaries will merge with or consolidate into, or
acquire all or substantially all of the assets of, any Person, or sell,
transfer, lease or otherwise dispose of (whether in one transaction or
in a series of transactions) all or substantially all of its assets,
except that:
(i) Any of LSI's Significant Subsidiaries may merge with,
consolidate into or transfer all or substantially all of its
assets to another of LSI's Significant Subsidiaries or to LSI and
in connection therewith such Significant Subsidiary (other than
LSI) may be liquidated or dissolved, provided that (A) if the
transaction involves either Borrower, such Borrower shall be the
surviving Person, and (B) if any transaction shall be between a
non-wholly owned Significant Subsidiary and a wholly owned
Significant Subsidiary, the wholly owned Significant Subsidiary
shall be the continuing or surviving Person, and provided further
that no Material Adverse Effect or Default shall result
therefrom;
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(ii) Either Borrower or any of its Significant
Subsidiaries may sell or dispose of assets in accordance with the
provisions of Subparagraph 5.02(d);
(iii) Either Borrower or any of its Significant
Subsidiaries may make any investment or Acquisition permitted by
Subparagraph 5.02(e); and
(iv) Either Borrower may merge with or consolidate into
any other Person, provided that (A) such Borrower is the
surviving Person, and (B) no such merger or consolidation shall
be made while there exists a Default or if a Default or Material
Adverse Effect would occur as a result thereof.
(d) Sales of Assets. None of Borrowers and their Significant
Subsidiaries will convey, sell, lease, transfer, or otherwise dispose
of, or part with control of (whether in one transaction or a series of
transactions) any assets (including any shares of stock in any
Subsidiary or other Person), except:
(i) Sales or other dispositions of inventory in the
ordinary course of business;
(ii) Sales or other dispositions of assets in the ordinary
course of business which have become worn out or obsolete or
which are promptly being replaced;
(iii) Sales of accounts receivable to financial
institutions not affiliated with either Borrower; provided that
(A) the discount rate shall not at any time exceed ten percent
(10%), (B) the amount of all accounts receivable permitted to be
sold in any fiscal quarter shall not exceed twenty percent (20%)
of the consolidated accounts receivable of LSI and its
Subsidiaries, determined as of the last day of the immediately
preceding fiscal quarter (or fiscal year, as the case may be),
and (C) the sole consideration received for such sales shall be
cash;
(iv) Sales of equipment to be leased back to LSI in
conjunction with a "synthetic" lease financing of such equipment,
provided that the "principal" amount of such financing does not
exceed $250,000,000;
(v) Sales or other dispositions of assets outside the
ordinary course of business which do not constitute Substantial
Assets (as defined below);
(vi) Sales of assets which yield Net Proceeds which are
applied to prepay the U.S. Loans pursuant to clause (iv) of
Subparagraph 2.05(c); and
(vii) Sales or other dispositions of Permitted
Investments.
For purposes of clause (v) above, a sale, lease, transfer or other
disposition of assets shall be deemed to be of "Substantial Assets" if
such assets, when added to all other assets conveyed, sold, leased,
transferred or otherwise disposed of by LSI and its Subsidiaries in any
period of four consecutive fiscal quarters (other than assets sold in
the ordinary course of business or pursuant to clause (iii) above),
shall exceed ten percent (10%) of
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Consolidated Total Assets as determined as of the last day of the fiscal
quarter of LSI immediately preceding the date of determination.
(e) Loans and Investments. None of Borrowers and their
Significant Subsidiaries will enter into any Acquisition or otherwise
extend any credit to, guarantee the obligations of or make any
additional investments in or acquire any interest in, any Person, other
than in connection with:
(i) Extensions of credit in the nature of accounts
receivable or notes receivable arising from the sales of goods
or services in the ordinary course of business;
(ii) Permitted Investments;
(iii) Additional purchases of or investments in the
stock of, or guarantees of the obligations of, Subsidiaries;
(iv) Employee loans and guarantees in accordance with
LSI's usual and customary practices with respect thereto;
(v) Any Acquisition; or
(vi) Additional investments not exceeding, in the
aggregate with all such investments, $300,000,000 during the
period from the date of this Agreement through the Revolving
Termination Date;
provided that in the case of an Acquisition referred to in clause (v)
above or an investment referred to in clause (vi) above, no such
Acquisition or investment shall be made while there exists a Default or
if a Default or Material Adverse Effect would occur as a result thereof.
(f) Distributions. Neither Borrower will declare or pay any
dividends in respect of its capital stock, or purchase, redeem, retire
or otherwise acquire for value any of its capital stock now or hereafter
outstanding, return any capital to its shareholders as such, or make any
distribution of assets to its shareholders as such, or permit any of its
Subsidiaries to purchase, redeem, retire, or otherwise acquire for value
any stock of either Borrower, except that LLJS may declare and pay
dividends and distributions to LSI and either Borrower may:
(i) Declare and deliver dividends and distributions
payable only in common stock of such Borrower;
(ii) Purchase shares of its capital stock from time to
time in connection with the issuance of shares under such
Borrower's employee stock option plans;
(iii) Purchase, redeem, retire, or otherwise acquire
shares of its capital stock with the proceeds received from a
substantially concurrent issue of new shares of its capital
stock; and
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(iv) In addition to the dividends, purchases,
redemptions, retirements and other acquisitions permitted by the
foregoing clauses (i) through (iii) above, declare and deliver
dividends and distributions, and purchase, redeem, retire, or
otherwise acquire shares of its capital stock, in an aggregate
amount not exceeding $100,000,000 in any period of four
consecutive fiscal quarters.
(g) Transactions with Related Parties. None of Borrowers and
their Significant Subsidiaries will enter into any transaction,
including the purchase, sale or exchange of property or the rendering of
any services, with any Affiliate, any officer or director thereof or any
Person which beneficially owns or holds twenty percent (20%) or more of
the equity securities, or twenty percent (20%) or more of the equity
interest, thereof (a "Related Party"), or enter into, assume or suffer
to exist, or permit any such Significant Subsidiary to enter into,
assume or suffer to exist, any employment or consulting contract with
any Related Party, except (i) a transaction or contract which is in the
ordinary course of such Borrower's or Significant Subsidiary's business,
including a transaction in the ordinary course of business between or
among such Borrower and one or more of its Subsidiaries, and (ii) any
other transaction which is upon fair and reasonable terms not less
favorable to such Borrower or Significant Subsidiary than it would
obtain in a comparable arm's length transaction with a Person not a
Related Party. For purposes of this Subparagraph 5.02(g), the sale,
transfer or disposition of more than thirty percent (30%) of its assets
(in any transaction or a series of related transactions) by a Borrower
or any of its Significant Subsidiaries shall be deemed to be outside the
ordinary course of business.
(h) Accounting Changes. None of Borrowers and their Significant
Subsidiaries will make any significant change in accounting treatment or
reporting practices, except as required or permitted by GAAP (or, in the
case of any such Significant Subsidiary domiciled in a jurisdiction
other than the United States, in accordance with generally accepted
accounting principles and practices in such jurisdiction).
5.03. Financial Covenants. Until the termination of this Agreement and
the satisfaction in full by each Borrower of all of their respective
Obligations, LSI will comply, and will cause compliance, with the following
financial covenants, unless Required Lenders shall otherwise consent in writing:
(a) Consolidated Total Debt to Total Capital. LSI will maintain
a ratio of Consolidated Total Debt to Total Capital of not more than
0.50 to 1.0 as of the last day of each fiscal quarter.
(b) Quick Ratio. LSI will maintain a ratio of Consolidated Quick
Assets to Consolidated Current Liabilities of not less than 1.25 to 1.00
as of the last day of each fiscal quarter.
(c) Minimum Consolidated Tangible Net Worth. LSI will maintain
Consolidated Tangible Net Worth (exclusive of the cumulative translation
adjustment account as reported in the consolidated balance sheet of LSI
and its Subsidiaries as of
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such date) as of the end of each fiscal quarter of not less than (i)
$1,198,926,000 plus (ii) one hundred percent (100%) of the Net Proceeds
received by LSI or any of its Subsidiaries from the sale or issuance of
equity securities (including equity securities issued upon the
conversion of Subordinated Debt) to any Person other than LSI or any of
its Subsidiaries after December 31, 1999, plus (iii) eighty percent
(80%) of the sum of Consolidated Net Income, if such sum is positive,
for each fiscal quarter elapsed after December 31, 1999, minus (iv) the
net value of LSI stock not exceeding $250,000,000 in aggregate amount
repurchased by LSI pursuant to employee stock ownership and purchase
plans (provided that LSI shall not so repurchase stock in an aggregate
amount which exceeds five percent (5%) of its stock outstanding as of
the last day of such fiscal quarter).
(d) Debt Service Coverage Ratio. LSI will maintain a ratio of
(i) Consolidated EBITDA to (ii) the sum of Consolidated CMLTD, plus
Consolidated Interest Expense, plus Capitalized Interest, that is not
less than 2.00 to 1.00 for any period of four consecutive fiscal
quarters, calculated as of the end of such period.
(e) Subordinated Debt. LSI will not, and will not permit any of
its Subsidiaries to, make any voluntary or optional payment or repayment
on, redemption, exchange or acquisition for value of (other than any
such payment, repayment, redemption, exchange or acquisition which would
not constitute a payment for purposes of Section 13.10 of the
subordination provisions attached hereto as Exhibit K), or any sinking
fund or similar payment with respect to, any Subordinated Debt (a
"restricted payment") if a Default shall then exist or would occur as a
result thereof. In no event shall any restricted payment be made if the
ratio of Consolidated Quick Assets to Consolidated Current Liabilities
is less than 1.50 to 1.00 as of the last day of the fiscal quarter
immediately preceding such restricted payment and after giving effect to
such restricted payment. At or prior to the time notice of such
restricted payment is given to the holders of Subordinated Debt (or if
no such notice is required, prior to the time of such restricted
payment), LSI shall give written notice to Agent of the maximum amount
of such restricted payment and of the satisfaction of the foregoing
condition.
SECTION VI. DEFAULT.
6.01. Events of Default. The occurrence or existence of any one or more
of the following shall constitute an "Event of Default" hereunder:
(a) Non-Payment. Either Borrower shall (i) fail to pay when due
any principal of any Loan or fail to make any payment or transfer when
due under any Lender Rate Contract or (ii) fail to pay within five (5)
Business Days after the same becomes due any interest, fee or other
payment required under the terms of this Agreement or any of the other
Credit Documents; or
(b) Specific Defaults. Either Borrower or any of its Significant
Subsidiaries shall fail to observe or perform any covenant, obligation,
condition or agreement set forth in Paragraph 5.02 or Paragraph 5.03; or
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(c) Other Defaults. Either Borrower or any of its Significant
Subsidiaries shall fail to observe or perform any other covenant,
obligation, condition or agreement contained in this Agreement or the
other Credit Documents and such failure shall continue unremedied for a
period of thirty (30) days after the earlier of (i) either Borrower's
written acknowledgement of such failure and (ii) Agent's written notice
to Borrowers of such failure; provided, however, that such failure shall
not constitute an Event of Default if it is capable of being remedied
and Borrowers diligently proceed to remedy such failure and complete
such remediation within 180 days after such written acknowledgment or
notice; or
(d) Representations and Warranties. Any representation,
warranty, certificate, information or other statement (financial or
otherwise) made or furnished by or on behalf of either Borrower to Agent
or any Lender in or in connection with this Agreement or any of the
other Credit Documents, or as an inducement to Agent or any Lender to
enter into this Agreement, shall be false, incorrect or inaccurate in
any material respect when made (or deemed made) or furnished; provided,
however, that such misrepresentation or breach of warranty shall not
constitute an Event of Default if it is capable of being remedied and
Borrowers remedy such misrepresentation or breach of warranty within
thirty (30) days after the earlier of (i) either Borrower's written
acknowledgment of such misrepresentation or breach of warranty or (ii)
Agent's written notice to Borrowers of such misrepresentation or breach
of warranty; or
(e) Cross-Default. (i) Either Borrower or any of its Significant
Subsidiaries shall fail to make any payment on account of any
Indebtedness of such Person (other than the Obligations) when due
(whether at scheduled maturity, by required prepayment, upon
acceleration or otherwise) and such failure shall continue beyond any
period of grace provided with respect thereto, if the aggregate amount
of such Indebtedness exceeds $10,000,000 or the effect of such failure
is to cause, or permit the holder or holders thereof to cause,
Indebtedness of either Borrower or any of its Significant Subsidiaries
(other than the Obligations) in an aggregate amount exceeding
$10,000,000 to become due (whether at scheduled maturity, by required
prepayment, upon acceleration or otherwise) or (ii) either Borrower or
any of its Significant Subsidiaries shall otherwise fail to observe or
perform any agreement, term or condition contained in any agreement or
instrument relating to any Indebtedness of such Person (other than the
Obligations), or any other event shall occur or condition shall exist,
and such failure, event or condition shall continue beyond any period of
grace provided with respect thereto, if the effect of such failure,
event or condition is to cause, or permit the holder or holders thereof
to cause, Indebtedness of either Borrower or any of its Significant
Subsidiaries (other than the Obligations) in an aggregate amount
exceeding $10,000,000 to become due (and/or to be secured by cash
collateral); or
(f) Insolvency, Voluntary Proceedings. Either Borrower or any of
its Significant Subsidiaries shall (i) apply for or consent to the
appointment of a receiver, trustee, liquidator or custodian of itself or
of all or a substantial part of its property, (ii) be unable, or admit
in writing its inability, to pay its debts generally as they mature,
(iii) make a general assignment for the benefit of its or any of its
creditors, (iv) be dissolved or liquidated in full or in part, (v)
become insolvent (as such term may be defined or
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interpreted under any applicable statute), (vi) commence a voluntary
case or other proceeding seeking liquidation, reorganization or other
relief with respect to itself or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect or consent to
any such relief or to the appointment of or taking possession of its
property by any official in an involuntary case or other proceeding
commenced against it, or (vi) take any action for the purpose of
effecting any of the foregoing; or
(g) Involuntary Proceedings. Proceedings for the appointment of
a receiver, trustee, liquidator or custodian of either Borrower or any
of its Significant Subsidiaries or of all or a substantial part of the
property thereof, or an involuntary case or other proceedings seeking
liquidation, reorganization or other relief with respect to either
Borrower or any of its Significant Subsidiaries or the debts thereof
under any bankruptcy, insolvency or other similar law now or hereafter
in effect shall be commenced and an order for relief entered or such
proceeding shall not be dismissed or discharged within sixty (60) days
of commencement; or
(h) Judgments. (i) A final nonappealable judgment or order for
the payment of money against either Borrower or any of its Significant
Subsidiaries in an amount of $25,000,000 or more in excess of amounts
covered by third-party insurance shall remain unpaid for ninety (90)
days following the due date for such payment; or (ii) any non-monetary
judgment or order shall be rendered against either Borrower or any of
its Significant Subsidiaries which has or would reasonably be expected
to have a Material Adverse Effect; or
(i) Process Issued. A warrant of attachment, execution,
distraint, or similar process against any substantial part of the assets
of either Borrower or any of its Significant Subsidiaries is issued
which remains undismissed or undischarged for a period of thirty (30)
days, if as a result thereof there is reasonably expected to occur a
Material Adverse Effect; or
(j) Seizure. All or a material part of the undertaking, assets,
rights or revenues of either Borrower or any of its Significant
Subsidiaries are seized, nationalized, expropriated or compulsorily
acquired by or under the authority of any Governmental Authority; or
(k) ERISA. (i) An ERISA Event shall occur with respect to a
Pension Plan which has resulted or could reasonably be expected to
result in liability of either Borrower or any of its Subsidiaries under
Title IV of ERISA to the Pension Plan or PBGC in an aggregate amount in
excess of $10,000,000; (ii) the commencement or increase of
contributions to, or the adoption of or the amendment of a Pension Plan
by either Borrower or any of its Subsidiaries which has resulted or
could reasonably be expected to result in an increase in Unfunded
Pension Liability among all Pension Plans in an aggregate amount in
excess of $10,000,000; or (iii) any of the representations and
warranties contained in Subparagraph 4.01(k) shall cease to be true and
correct which, individually or in combination, has resulted or could
reasonably be expected to result in a Material Adverse Effect; or
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(l) Credit Documents. Any Credit Document or any material term
thereof shall cease to be, or be asserted by either Borrower or any of
its Significant Subsidiaries not to be, a legal, valid and binding
obligation of such Borrower or such Significant Subsidiary enforceable
in accordance with its terms; or
(m) Dissolution. Etc. Either Borrower or any of its Significant
Subsidiaries shall (i) liquidate, wind up or dissolve (or suffer any
liquidation, wind-up or dissolution), except to the extent expressly
permitted by clause (i) of Subparagraph 5.02(c), (ii) suspend its
operations other than in the ordinary course of business, or (iii) take
any corporate action to authorize any of the actions or events set forth
above in this Subparagraph; or
(n) Change of Control. Any Change of Control shall occur; or
(o) Material Adverse Effect. Any event(s) or condition(s) which
is (are) reasonably likely to have a Material Adverse Effect shall occur
or exist; or
(p) Repurchase of Subordinated Debt. Any event shall occur
permitting the holders of any Subordinated Debt to require the
repurchase of such Subordinated Debt prior to its stated maturity, which
shall not include restricted payments made pursuant to Subparagraph
5.03(e).
6.02. Remedies. At any time after the occurrence and during the
continuance of any Event of Default (other than an Event of Default referred to
in Subparagraph 6.01(f) or 6.01(g) or any Event of Default which has been cured
by LSI under the LSI Guaranty), Agent may, with the consent of the Required
Lenders, or shall, upon instructions from the Required Lenders, by written
notice to Borrowers, (a) terminate the Commitments and the obligations of
Lenders to make Loans and/or (b) declare all outstanding Obligations payable by
Borrowers to be immediately due and payable without presentment, demand, protest
or any other notice of any kind, all of which are hereby expressly waived,
anything contained herein or in the Notes to the contrary notwithstanding. Upon
the occurrence or existence of any Event of Default described in Subparagraph
6.01(f) or 6.01(g), immediately and without notice, (1) the Commitments and the
obligations of Lenders to make Loans shall automatically terminate and (2) all
outstanding Obligations payable by Borrowers hereunder shall automatically
become immediately due and payable, without presentment, demand, protest or any
other notice of any kind, all of which are hereby expressly waived, anything
contained herein or in the Notes to the contrary notwithstanding. In addition to
the foregoing remedies, upon the occurrence or existence of any Event of
Default, Agent may exercise any other right, power or remedy available to it
under any of the Credit Documents or otherwise by law, either by suit in equity
or by action at law, or both.
6.03. Lender Rate Contract Remedies. Notwithstanding any other provision
of this Section VI, each Lender or its Affiliate which has entered into a Lender
Rate Contract shall have the right, with prior notice to Agent, but without the
approval or consent of Agent or any other Lender, (a) to declare an event of
default, termination event or other similar event thereunder which will result
in the early termination of such Lender Rate Contract, (b) to determine Swap
Termination Values in accordance with the terms of such Lender Rate Contract and
to set-off amounts between Lender Rate Contracts of such Lender, and (c) to
prosecute any legal action
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against either Borrower or its Subsidiaries to enforce Swap Termination Values
owing to such Lender or its Affiliate under such Lender Rate Contracts.
SECTION VII. THE AGENT AND RELATIONS AMONG LENDERS.
7.01. Appointment, Powers and Immunities. Each Lender hereby appoints
and authorizes Agent to act as its agent hereunder and under the other Credit
Documents with such powers as are expressly delegated to Agent by the terms of
this Agreement and the other Credit Documents, together with such other powers
as are reasonably incidental thereto. Agent shall not have any duties or
responsibilities except those expressly set forth in this Agreement or in any
other Credit Document, be a trustee for any Lender or have any fiduciary duty to
any Lender. Notwithstanding anything to the contrary contained herein Agent
shall not be required to take any action which is contrary to this Agreement or
any other Credit Document or any applicable Governmental Rule. Neither Agent nor
any Lender shall be responsible to any other Lender for any recitals,
statements, representations or warranties made by either Borrower or any of its
Subsidiaries contained in this Agreement or in any other Credit Document, for
the value, validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Credit Document or for any failure by either
Borrower or any of its Subsidiaries to perform its respective obligations
hereunder or thereunder. Agent may employ agents and attorneys-in-fact and shall
not be responsible to any Lender for the negligence or misconduct of any such
agents or attorneys-in-fact selected by it with reasonable care. Neither Agent
nor any of its directors, officers, employees, agents or advisors shall be
responsible to any Lender for any action taken or omitted to be taken by it or
them hereunder or under any other Credit Document or in connection herewith or
therewith, except for its or their own gross negligence or willful misconduct.
Except as otherwise provided under this Agreement, Agent shall take such action
with respect to the Credit Documents as shall be directed by the Required
Lenders.
7.02. Reliance by Agent. Agent shall be entitled to rely upon any
certificate, notice or other document (including any cable, telegram, facsimile
or telex) believed by it in good faith to be genuine and correct and to have
been signed or sent by or on behalf of the proper Person or Persons, and upon
advice and statements of legal counsel, independent accountants and other
experts selected by Agent with reasonable care. As to any other matters not
expressly provided for by this Agreement, Agent shall not be required to take
any action or exercise any discretion, but shall be required to act or to
refrain from acting upon instructions of the Required Lenders and shall in all
cases be fully protected by Lenders in acting, or in refraining from acting,
hereunder or under any other Credit Document in accordance with the instructions
of the Required Lenders, and such instructions of the Required Lenders and any
action taken or failure to act pursuant thereto shall be binding on all of
Lenders.
7.03. Defaults. Agent shall not be deemed to have knowledge or notice of
the occurrence of any Default unless Agent has received a written notice from a
Lender or either Borrower, referring to this Agreement, describing such Default
and stating that such notice is a "Notice of Default". If Agent receives such a
notice of the occurrence of a Default, Agent shall give prompt notice thereof to
Lenders. Agent shall take such action with respect to such Default as shall be
reasonably directed by the Required Lenders; provided, however, that until Agent
shall have received such directions, Agent may (but shall not be obligated to)
take such action, or
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refrain from taking such action, with respect to such Default as it shall deem
advisable in the best interest of Lenders.
7.04. Indemnification. Without limiting the Obligations of Borrowers
hereunder, each Lender agrees to indemnify Agent, ratably in accordance with
their Proportionate Shares, for any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever which may at any time be imposed on, incurred
by or asserted against Agent in any way relating to or arising out of this
Agreement or any documents contemplated by or referred to herein or therein or
the transactions contemplated hereby or thereby or the enforcement of any of the
terms hereof or thereof; provided, however, that no Lender shall be liable for
any of the foregoing to the extent they arise from Agent's gross negligence or
willful misconduct. Agent shall be fully justified in refusing to take or in
continuing to take any action hereunder unless it shall first be indemnified to
its satisfaction by Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such action. The
obligations of each Lender under this Paragraph 7.04 shall survive the payment
and performance of the Obligations, the termination of this Agreement and any
Lender ceasing to be a party to this Agreement (with respect to events which
occurred prior to the time such Lender ceased to be a Lender hereunder).
7.05. Non-Reliance. Each Lender represents that it has, independently
and without reliance on Agent, or any other Lender, and based on such documents
and information as it has deemed appropriate, made its own appraisal of the
business, prospects, management, financial condition and affairs of Borrowers
and their Subsidiaries and its own decision to enter into this Agreement and
agrees that it will, independently and without reliance upon Agent or any other
Lender, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own appraisals and decisions in taking or not
taking action under this Agreement. Neither Agent nor any of its affiliates nor
any of their respective directors, officers, employees, agents or advisors shall
(a) be required to keep any Lender informed as to the performance or observance
by either Borrower or any of its Subsidiaries of the obligations under this
Agreement or any other document referred to or provided for herein or to make
inquiry of, or to inspect the properties or books of either Borrower or any of
its Subsidiaries; (b) have any duty or responsibility to provide any Lender with
any credit or other information concerning either Borrower or any of its
Subsidiaries which may come into the possession of Agent, except for notices,
reports and other documents and information expressly required to be furnished
to Lenders by Agent hereunder; or (c) be responsible to any Lender for (i) any
recital, statement, representation or warranty made by either Borrower or any
officer, employee or agent of either Borrower in this Agreement or in any of the
other Credit Documents, (ii) the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any Credit Document, (iii)
the value or sufficiency of any collateral or the validity or perfection of any
of the liens or security interests intended to be created by the Credit
Documents, or (iv) any failure by either Borrower to perform its obligations
under this Agreement or any other Credit Document.
7.06. Resignation or Removal of Agent. Agent may resign at any time by
giving thirty (30) days prior written notice thereof to Borrowers and Lenders,
and Agent may be removed at any time with or without cause by the Required
Lenders. Upon any such resignation or removal, the Required Lenders shall have
the right to appoint a successor Agent, which Agent, if not a
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Lender, shall be reasonably acceptable to Borrowers; provided, however, that
Borrowers shall have no right to approve a successor Agent if a Default has
occurred and is continuing. Upon the acceptance of any appointment as Agent
hereunder by a successor Agent, such successor Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties of the
retiring Agent, and the retiring Agent shall be discharged from the duties and
obligations thereafter arising hereunder. After any retiring Agent's resignation
or removal hereunder as Agent, the provisions of this Section VII shall continue
in effect for its benefit in respect of any actions taken or omitted to be taken
by it while it was acting as Agent.
7.07. Agent in its Individual Capacity. Agent and its affiliates may
make loans to, accept deposits from and generally engage in any kind of banking
or other business with Borrowers and their Subsidiaries and affiliates as though
Agent were not Agent hereunder. With respect to Loans, if any, made by Agent in
its capacity as a Lender, Agent in its capacity as a Lender shall have the same
rights and powers under this Agreement and the other Credit Documents as any
other Lender and may exercise the same as though it were not Agent, and the
terms "Lender" or "Lenders" shall include Agent in its capacity as a Lender.
SECTION VIII. MISCELLANEOUS.
8.01. Notices. Except as otherwise provided herein, all notices,
requests, demands, consents, instructions or other communications to or upon
either Borrower, any Lender or Agent under this Agreement or the other Credit
Documents shall be in writing and faxed, mailed or delivered, if to either
Borrower or Agent, at its respective facsimile number or address set forth below
or, if to any Lender, at the address or facsimile number specified for such
Lender in Part B of Schedule I (or to such other facsimile number or address for
any party as indicated in any notice given by that party to the other parties).
All such notices and communications shall be effective (a) when sent by an
overnight courier service of recognized standing, on the second Business Day
following the deposit with such service; (b) when mailed, first class postage
prepaid and addressed as aforesaid through the United States Postal Service or
registered mail through the Japanese Post Office, upon receipt; (c) when
delivered by hand, upon delivery; and (d) when faxed, upon confirmation of
receipt; provided, however, that any notice delivered to Agent under Section II
shall not be effective until received by Agent.
Agent: For notices related to the Japanese Borrowing:
ABN AMRO Bank N.V.
Tokyo Branch
13F, Shiroyama XX Xxxx Xxxxxxxx
0-0-0, Xxxxxxxxx, Xxxxxx-xx
Xxxxx 000
Xxxxx
Attn: Kiyoharu Michiwaki or Takamasa Marito
Tel. No: 00-0-0000-0000 or 6565
Fax No: 00-0-0000-0000 or 6903
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For notices related to any U.S. Borrowing, all
other notices and copies of notices related to the
Japanese Borrowing:
ABN AMRO Bank N.V.
Syndications Group 0000 Xxxxxx xx xxx Xxxxxxxx, 0xx
Xxxxx
Xxx Xxxx, XX 00000
U.S.A.
Attn: Xxxxx Xxxxxxxx
Tel. No: (000) 000-0000
Fax. No: (000) 000-0000
With a copy in each case to:
ABN AMRO Bank N.V.
000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000-0000
Attn: Xxxxxx X. Xxxxxx
Tel: (000) 000-0000
Fax: (000) 000-0000
LSI: LSI Logic Corporation
0000 XxXxxxxx Xxxxxxxxx
Xxxxxxxx, XX 00000
Attn: Xxxx X. Xxxx, Xxxxxxxxx
Xxxx Xxxx X000
Tel: (000) 000-0000
Fax: (000) 000-0000
LLJS: LSI Logic Japan Semiconductor, Inc.
00, Xxxxxxxx
Xxxxxxx-xxx
Xxxxxxx, Xxxxx
Attn: Xxxxxx Xxxxxx
Tel: (81) ###-##-####
Fax: (81) ###-##-####
with a copy to LSI as provided above.
Each Notice of U.S. Borrowing, Notice of U.S. Borrowing Conversion and Notice of
U.S. Borrowing Interest Period Selection shall be given by LSI to Agent's U.S.
office located at the address referred to above during such office's normal
business hours; provided, however, that any such notice received by Agent after
1:00 p.m. (Chicago time) on any Business Day shall be deemed received by Agent
on the next Business Day. The Notice of Japanese Borrowing and each Notice of
Japanese Borrowing Interest Period Selection shall be given by LLJS to Agent's
Tokyo office at the address referred to above during such office's normal
business hours;
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provided, however, that any such notice received by Agent after 10:00 a.m.
(Tokyo time) on any Business Day shall be deemed received by Agent on the next
Business Day. In any case where this Agreement authorizes notices, requests,
demands or other communications by Borrowers to Agent or any Lender to be made
by telephone or facsimile, Agent or any Lender may conclusively presume that
anyone purporting to be a Person designated in any incumbency certificate or
other similar document received by Agent or a Lender is such a Person.
8.02. Expenses. LSI agrees to pay promptly upon receipt of an invoice
therefor, whether or not any Loan is made hereunder, (a) all reasonable fees and
expenses, including reasonable attorneys' fees and expenses, incurred by Agent
in connection with the syndication of the credit facilities provided hereunder,
the preparation, negotiation, execution and delivery of, and the exercise of its
duties under, this Agreement and the other Credit Documents, and the
preparation, negotiation, execution and delivery of amendments and waivers
hereunder and thereunder and (b) all reasonable fees and expenses, including
reasonable attorneys' fees and expenses, incurred by Agent and Lenders in the
enforcement or attempted enforcement of any of the Obligations or in preserving
any of Agent's or Lenders' rights and remedies (including, without limitation,
all such fees and expenses incurred in connection with any "workout" or
restructuring affecting the Credit Documents or the Obligations or any
bankruptcy or similar proceeding involving either Borrower or any of its
Subsidiaries). As used herein, the term "reasonable attorneys' fees and
expenses" shall include, without limitation, allocable costs and expenses of
Agent's and Lenders' in-house legal counsel and staff. The obligations of LSI
under this Paragraph 8.02 shall survive the payment and performance of the
Obligations and the termination of this Agreement.
8.03. Indemnification. To the fullest extent permitted by law, LSI
agrees to protect, indemnify, defend and hold harmless Agent, Lenders and their
Affiliates and their respective directors, officers, employees, agents and
advisors ("Indemnitees") from and against any and all liabilities, losses,
damages or expenses of any kind or nature and from any suits, claims or demands
(including in respect of or for reasonable attorney's fees and other expenses)
arising on account of or in connection with any matter or thing or action or
failure to act by Indemnitees, or any of them, arising out of or relating to the
Credit Documents or any transaction contemplated thereby, including without
limitation any use by either Borrower of any proceeds of the Loans, except to
the extent such liability arises from the willful misconduct or gross negligence
of such Indemnitee. Upon receiving knowledge of any suit, claim or demand
asserted by a third party that Agent or any Lender believes is covered by this
indemnity, Agent or such Lender shall give LSI notice of the matter and an
opportunity to defend it, at LSI's sole cost and expense, with legal counsel
satisfactory to Agent or such Lender, as the case may be. Agent or such Lender
may also require LSI to defend the matter. Any failure or delay of Agent or any
Lender to notify LSI of any such suit, claim or demand shall not relieve LSI of
its obligations under this Paragraph 8.03 but shall reduce such obligations to
the extent of any increase in those obligations caused solely by any such
failure or delay which is unreasonable. The obligations of LSI under this
Paragraph 8.03 shall survive the payment and performance of the Obligations and
the termination of this Agreement.
8.04. Waivers; Amendments. Any term, covenant, agreement or condition of
this Agreement or any other Credit Document may be amended or waived, and any
consent under this Agreement or any other Credit Document may be given, if such
amendment, waiver or
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consent is in writing and is signed by Borrowers and the Required Lenders (or
Agent on behalf of the Required Lenders with the written approval of the
Required Lenders); provided, however that:
(a) Any amendment, waiver or consent which would (i) reduce any
fees or other amounts payable for the account of all Lenders hereunder
or extend the scheduled date for payment of any such fees or amounts,
(ii) amend this Paragraph 8.04, (iii) amend the definition of Required
Lenders or (iv) release the LSI Guaranty or any substantial part of any
other guaranty or collateral which may be granted under the Security
Documents, must be in writing and signed or approved in writing by all
Lenders;
(b) Any amendment, waiver or consent which would (i) extend the
Revolving Termination Date with respect to the U.S. Revolving
Borrowings, (ii) increase the Total U.S. Revolving Commitment or (iii)
reduce the principal of or interest on the U.S. Revolving Loans or the
U.S. Revolving Commitment Fees or any other fees or amounts payable for
the account of all U.S. Lenders with U.S. Revolving Commitments or
extend the scheduled date for payment of any such principal, interest,
fees or amounts, must be in writing and signed or approved in writing by
all U.S. Lenders with U.S. Revolving Commitments or U.S. Revolving
Loans;
(c) Any amendment, waiver or consent which would (i) extend the
U.S. 364 Day Termination Date, (ii) increase the Total U.S. 364 Day
Commitment or (iii) reduce the principal of or interest on the U.S. 364
Day Loans or the U.S. 364 Day Commitment Fees or any other fees or
amounts payable for the account of all U.S. Lenders with U.S. 364 Day
Commitments or extend the scheduled date for payment of any such
principal, interest, fees or amounts, must be in writing and signed or
approved in writing by all U.S. Lenders with U.S. 364 Day Commitments or
U.S. 364 Day Loans;
(d) Any amendment, waiver or consent which would (i) extend the
Maturity with respect to the Japanese Borrowing, (ii) increase the Total
Japanese Commitment or (iii) reduce the principal of or interest on the
Japanese Loans or any other fees or amounts payable for the account of
all Japanese Lenders hereunder or extend the scheduled date for payment
of any such principal, interest, fees or amounts, must be in writing and
signed or approved in writing by all Japanese Lenders;
(e) Any amendment, waiver or consent which would increase or
decrease the Commitment of any Lender (except for a pro rata decrease in
the Commitments of all Lenders with the same type of Commitment) must be
in writing and signed by such Lender; and
(f) Any amendment, waiver or consent which affects the rights or
obligations of Agent must be in writing and signed by Agent.
No failure or delay by Agent or any Lender in exercising any right under this
Agreement or any other Credit Document shall operate as a waiver thereof or of
any other right hereunder or thereunder nor shall any single or partial exercise
of any such right preclude any other further exercise thereof or of any other
right hereunder or thereunder. Unless otherwise specified in
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such waiver or consent, a waiver or consent given hereunder shall be effective
only in the specific instance and for the specific purpose for which given.
8.05. Successors and Assigns.
(a) Binding Effect. This Agreement and the other Credit
Documents shall be binding upon and inure to the benefit of Borrowers,
Lenders, Agent, all future holders of the Notes and their respective
successors and permitted assigns, except that neither Borrower may
assign or transfer any of its rights or obligations under any Credit
Document without the prior written consent of Agent and each Lender.
(b) Participations. Any Lender may at any time sell to one or
more banks or other financial institutions ("Participants")
participating interests in any Loan owing to such Lender, any Note held
by such Lender, any Commitment of such Lender or any other interest of
such Lender under this Agreement and the other Credit Documents. In the
event of any such sale by a Lender of participating interests, such
Lender's obligations under this Agreement shall remain unchanged, such
Lender shall remain solely responsible for the performance thereof, such
Lender shall remain the holder of its Notes for all purposes under this
Agreement and Borrowers and Agent shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement. Any agreement pursuant to which any
such sale is effected may require the selling Lender to obtain the
consent of the Participant in order for such Lender to agree in writing
to any amendment, waiver or consent of a type specified in clause
(a)(iv), (b)(i), (b)(iii), (c)(i), (c)(iii), (d)(i), (d)(iii) or
Subparagraph (e) of Paragraph 8.04 but may not otherwise require the
selling Lender to obtain the consent of such Participant to any other
amendment, waiver or consent hereunder. Borrowers also agree that any
Lender which has transferred any participating interest in its
Commitments or Loans shall, notwithstanding any such transfer, be
entitled to the full benefits accorded such Lender under Paragraph 2.10,
Paragraph 2.11, and Paragraph 2.12, as if such Lender had not made such
transfer.
(c) Assignments. Any Lender may, at any time, sell and assign to
any other Lender or any Eligible Assignee (individually, an "Assignee
Lender") all or a portion of its rights and obligations under this
Agreement and the other Credit Documents (such a sale and assignment to
be referred to herein as an "Assignment") pursuant to an assignment
agreement in the form of Exhibit H (an "Assignment Agreement"), executed
by each Assignee Lender and such assignor Lender (an "Assignor Lender")
and delivered to Agent for its acceptance and recording in the Register;
provided, however, that:
(i) Without the written consent of Agent and, if no
Default has occurred and is continuing, LSI (which consent of
Agent and LSI shall not be unreasonably withheld), no U.S.
Lender may make any Assignment of its U.S. Revolving Commitment,
U.S. 364 Day Commitment or U.S. Loans to any Assignee Lender
which is not, immediately prior to such Assignment, a U.S.
Lender hereunder or an Affiliate thereof acting through an
office or branch located in the United States;
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(ii) Without the written consent of Agent and, if no
Default has occurred and is continuing, LLJS (which consent of
Agent and LLJS shall not be unreasonably withheld), no Japanese
Lender may make any Assignment of its Japanese Commitment or
Japanese Loans to any Assignee Lender which is not, immediately
prior to such Assignment, a Japanese Lender hereunder or an
Affiliate thereof acting through an office or branch located in
Japan;
(iii) Without the written consent of Agent and, if no
Default has occurred and is continuing, LSI (which consent of
Agent and LSI shall not be unreasonably withheld), no U.S.
Lender may make any Assignment of its U.S. Revolving Commitment,
U.S. 364 Day Commitment or U.S. Loans to any Assignee Lender if,
after giving effect to such Assignment, the U.S. Revolving
Commitment, the U.S. 364 Day Commitment or the U.S. Loans of
such Lender or such Assignee Lender would in the aggregate be
less than Ten Million Dollars ($10,000,000) (except that a U.S.
Lender may make an Assignment which reduces its U.S. Revolving
Commitment, U.S. 364 Day Commitment and U.S. Loans to zero
without the written consent of LSI and Agent);
(iv) Without the written consent of Agent and, if no
Default has occurred and is continuing, LLJS (which consent of
Agent and LLJS shall not be unreasonably withheld), no Japanese
Lender may make any Assignment of its Japanese Commitment or
Japanese Loans to any Assignee Lender if, after giving effect to
such Assignment, the Japanese Commitment or Japanese Loans of
such Lender or such Assignee Lender would in the aggregate be
less than One Billion Yen (Yen1,000,000,000) (except that a
Japanese Lender may make an Assignment which reduces its
Japanese Commitment and Japanese Loans to zero without the
written consent of LSI and Agent);
(v) Without the written consent of Agent and, if no
Default has occurred and is continuing, LSI (which consent of
Agent and LSI shall not be unreasonably withheld), no U.S.
Lender with a U.S. Revolving Commitment may make any Assignment
of its U.S. Revolving Commitment or U.S. Revolving Loans which
does not assign and delegate an equal pro rata interest in all
rights, duties and obligations of such Lender under this
Agreement and the other Credit Documents (except for its rights
and duties, if any, relating to its U.S. 364 Day Commitment or
U.S. 364 Day Loans or its Japanese Commitment or Japanese
Loans);
(vi) Without the written consent of Agent and, if no
Default has occurred and is continuing, LSI (which consent of
Agent and LSI shall not be unreasonably withheld), no U.S.
Lender with a U.S. 364 Day Commitment may make any Assignment of
its U.S. 364 Day Commitment or U.S. 364 Day Loans which does not
assign and delegate an equal pro rata interest in all rights,
duties and obligations of such Lender under this Agreement and
the other Credit Documents (except for its rights and duties, if
any, relating to its U.S. Revolving Commitment or U.S. Revolving
Loans or its Japanese Commitment or Japanese Loans);
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(vii) Without the written consent of Agent and, if no
Default has occurred and is continuing, LLJS (which consent of
Agent and LLJS shall not be unreasonably withheld), no Japanese
Lender may make any Assignment of its Japanese Commitment or
Japanese Loan which does not assign and delegate an equal pro
rata interest in all rights, duties and obligations of such
Lender under this Agreement and the other Credit Documents
(except for its rights and duties, if any, relating to its U.S.
Revolving Commitment or U.S. Revolving Loans or its U.S. 364 Day
Commitment or U.S. 364 Day Loans); and
(viii) Any Assignor Lender which is, or which has an
Affiliate which is, a party to a Lender Rate Contract may not
make an Assignment of all of its Commitment or all of its Loans
to an Assignee Lender unless such Assignee Lender or its
Affiliate shall also assume all obligations of such Assignor
Lender or its Affiliate with respect to such Lender Rate
Contract.
Upon such execution, delivery, acceptance and recording of each
Assignment Agreement, from and after the Assignment Effective Date
determined pursuant to such Assignment Agreement, (A) each Assignee
Lender thereunder shall be a Lender hereunder with Commitments or Loans
as set forth on Attachment 1 to such Assignment Agreement (under the
caption "Commitments or Loans After Assignment") and shall have the
rights, duties and obligations of such a Lender under this Agreement and
the other Credit Documents, and (B) the Assignor Lender thereunder shall
be a Lender with Commitments or Loans as set forth on Attachment 1 to
such Assignment Agreement (under the caption "Commitments or Loans After
Assignment"), or, if the Commitments or Loans of the Assignor Lender
have been reduced to zero, the Assignor Lender shall cease to be a
Lender and to have any obligation to make any Loan; provided, however,
that any such Assignor Lender which ceases to be a Lender shall continue
to be entitled to the benefits of any provision of this Agreement which
by its terms survives the termination of this Agreement. Each Assignment
Agreement shall be deemed to amend Schedule I to the extent, and only to
the extent, necessary to reflect the addition of each Assignee Lender,
the deletion of each Assignor Lender which reduces its Commitments or
Loans to zero, and the resulting adjustment of Commitments or Loans
arising from the purchase by each Assignee Lender of all or a portion of
the rights and obligations of an Assignor Lender under this Agreement
and the other Credit Documents. On or prior to the Assignment Effective
Date determined pursuant to each Assignment Agreement, LSI, at its own
expense, shall, if requested by Assignee Lenders, execute and deliver to
Agent, in exchange for the surrendered Notes, if any, of the Assignor
Lender thereunder, new Notes to the order of each Assignee Lender
thereunder and, if the Assignor Lender is continuing as a Lender
hereunder, new Notes to the order of the Assignor Lender. The Notes
surrendered by the Assignor Lender shall be returned by Agent to LSI
marked "Replaced". Each Assignee Lender which becomes a U.S. Lender and
was not previously a U.S. Lender hereunder and which is not incorporated
under the laws of the United States of America or a state thereof shall,
within three (3) Business Days of becoming a U.S. Lender, deliver to LSI
and Agent such certificates and other evidence as LSI or Agent may
reasonably request to establish that such Lender is entitled to receive
payments under this Agreement on account of its U.S. Loans without
deduction or withholding of any United States federal income taxes. Each
Assignee Lender which
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becomes a Japanese Lender and was not previously a Japanese Lender
hereunder and which is not incorporated under the laws of Japan shall,
within three (3) Business Days of becoming a Japanese Lender, deliver to
LLJS and Agent such certificates and other evidence as LLJS or Agent may
reasonably request to establish that such Lender is entitled to receive
payments under this Agreement on account of its Japanese Loans without
deduction or withholding of any Japanese income taxes.
(d) Register. Agent shall maintain at its address referred to in
Paragraph 8.01 a copy of each Assignment Agreement delivered to it and a
register (the "Register") for the recordation of the names and addresses
of Lenders and the Commitments or Loans of each Lender from time to
time. The entries in the Register shall be conclusive in the absence of
manifest error, and Borrowers, Agent and Lenders may treat each Person
whose name is recorded in the Register as the owner of the Commitments
or Loans recorded therein for all purposes of this Agreement. The
Register shall be available for inspection by either Borrower or any
Lender at any reasonable time and from time to time upon reasonable
prior notice.
(e) Registration. Upon its receipt of an Assignment Agreement
executed by an Assignor Lender and an Assignee Lender (and, to the
extent required by Subparagraph 8.05(c), by Borrowers and Agent)
together with payment to Agent by Assignor Lender of a registration and
processing fee of $3,000, Agent shall (i) promptly accept such
Assignment Agreement and (ii) on the Assignment Effective Date
determined pursuant thereto record the information contained therein in
the Register and give notice of such acceptance and recordation to
Lenders and Borrowers. Agent may, from time to time at its election,
prepare and deliver to Lenders and Borrowers a revised Schedule I
reflecting the names, addresses and respective Commitments or Loans of
all Lenders then parties hereto.
(f) Confidentiality. Subject to Paragraph 8.12, Agent and
Lenders may disclose the Credit Documents and any financial or other
information relating to Borrowers or any of their Subsidiaries to each
other or to any potential Participant or Assignee Lender.
(g) Pledges to Federal Reserve Banks. Notwithstanding any other
provision of this Agreement, any Lender may at any time assign all or a
portion of its rights under this Agreement and the other Credit
Documents to a Federal Reserve Bank. No such assignment shall relieve
the assigning Lender from its obligations under this Agreement and the
other Credit Documents.
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8.06. Setoff; Security Interest.
(a) Setoff. In addition to any rights and remedies of Lenders
provided by law, each Lender shall have the right, with the prior
consent of Agent but without prior notice to or consent of Borrowers,
any such notice and consent being expressly waived by Borrowers to the
extent permitted by applicable law, upon the occurrence and during the
continuance of an Event of Default, to set-off and apply against the
Obligations of either Borrower any amount owing from such Lender to such
Borrower. The aforesaid right of set-off may be exercised by such Lender
against a Borrower or against any trustee in bankruptcy, debtor in
possession, assignee for the benefit of creditors, receiver or
execution, judgment or attachment creditor of such Borrower or against
anyone else claiming through or against such Borrower or such trustee in
bankruptcy, debtor in possession, assignee for the benefit of creditors,
receiver, or execution, judgment or attachment creditor, notwithstanding
the fact that such right of set-off may not have been exercised by such
Lender at any prior time. Each Lender agrees promptly to notify the
applicable Borrower after any such set-off and application made by such
Lender, provided that the failure to give such notice shall not affect
the validity of such set-off and application.
(b) Security Interest. As security for the Obligations, each
Borrower hereby grants to Agent and each Lender, for the benefit of all
Lenders, a continuing security interest in any and all deposit accounts
or moneys of such Borrower now or hereafter maintained with such Lender.
Each Lender shall have all of the rights of a secured party with respect
to such security interest.
8.07. No Third Party Rights. Nothing expressed in or to be implied from
this Agreement is intended to give, or shall be construed to give, any Person,
other than the parties hereto and their permitted successors and assigns
hereunder, any benefit or legal or equitable right, remedy or claim under or by
virtue of this Agreement or under or by virtue of any provision herein.
8.08. Partial Invalidity. If at any time any provision of this Agreement
is or becomes illegal, invalid or unenforceable in any respect under the law or
any jurisdiction, neither the legality, validity or enforceability of the
remaining provisions of this Agreement nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction shall
in any way be affected or impaired thereby.
8.09. Jury Trial. EACH OF BORROWERS, LENDERS AND AGENT, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO ANY CREDIT DOCUMENT.
8.10. Counterparts. This Agreement may be executed in any number of
identical counterparts, any set of which signed by all the parties hereto shall
be deemed to constitute a complete, executed original for all purposes.
74
75
8.11. Borrowers' Liabilities. LSI is individually liable for the payment
of the U.S. Revolving Commitment Fees, the U.S. 364 Day Commitment Fees and the
principal of, interest on and all other amounts related to the U.S. Loans and
all expenses and indemnification payable under Paragraphs 8.02 and 8.03, and
LLJS is individually liable for the payment of the principal of, interest on and
all other amounts related to the Japanese Loans. LSI also is liable for the
payment and performance of all Obligations of LLJS under this Agreement and the
other Credit Documents as provided in the LSI Guaranty.
8.12. Confidentiality. Neither any Lender nor Agent shall disclose to
any Person any information with respect to Borrowers or any of their
Subsidiaries which is furnished pursuant to this Agreement or under the other
Credit Documents, except that any Lender or Agent may disclose any such
information (a) to its own directors, officers, employees, auditors, counsel and
other advisors and to its Affiliates to the extent reasonably determined by such
Lender or Agent to be necessary for the administration or enforcement of the
Credit Documents; (b) to any other Lender or Agent; (c) which is otherwise
available to the public; (d) if required or appropriate in any report, statement
or testimony submitted to any Governmental Authority having or claiming to have
jurisdiction over such Lender or Agent; (e) if required in response to any
summons or subpoena; (f) in connection with any enforcement by Lenders and Agent
of their rights under this Agreement or the other Credit Documents or any
litigation among the parties relating to the Credit Documents or the
transactions contemplated thereby; (g) to comply with any requirement of law
applicable to such Lender or Agent; (h) to any Assignee Lender or Participant or
any prospective Assignee Lender or Participant, provided that such Assignee
Lender or Participant or prospective Assignee Lender or Participant agrees to be
bound by this Paragraph 8.12; or (i) otherwise with the prior consent of
Borrowers; provided, however, that (i) any Lender or Agent served with any
summons or subpoena demanding the disclosure of any such information shall use
reasonable efforts to notify Borrowers promptly of such summons or subpoena if
not prohibited by any requirement of law and, if requested by Borrowers and not
disadvantageous to such Lender or Agent, to cooperate with Borrowers in
obtaining a protective order restricting such disclosure, and (ii) any
disclosure made in violation of this Agreement shall not affect the obligations
of Borrowers and their Subsidiaries under this Agreement and the other Credit
Documents.
8.13. Consent to Jurisdiction. Each Borrower irrevocably submits to the
non-exclusive jurisdiction of the courts of the State of California and the
courts of the United States of America located in the Northern District of
California and agrees that any legal action, suit or proceeding arising out of
or relating to this Agreement or any of the other Credit Documents may be
brought against such party in any such courts. Final judgment against either
Borrower in any such action, suit or proceeding shall be conclusive and may be
enforced in any other jurisdiction by suit on the judgment, a certified or
exemplified copy of which shall be conclusive evidence of the judgment, or in
any other manner provided by law. Nothing in this Paragraph 8.13 shall affect
the right of Agent or any Lender to commence legal proceedings or otherwise xxx
either Borrower in any other appropriate jurisdiction, or concurrently in more
than one jurisdiction, or to serve process, pleadings and other papers upon
either Borrower in any manner authorized by the laws of any such jurisdiction.
Each Borrower agrees that process served either personally or by registered mail
shall, to the extent permitted by law, constitute adequate service of process in
any such suit. Without limiting the foregoing, each Borrower hereby appoints, in
the case of any such action or proceeding brought in the courts of or in the
State of California, CT Corporation,
75
76
with offices on the date hereof at 000 Xxxx Xxxxxxx Xxxxxx, Xxx Xxxxxxx,
Xxxxxxxxxx 00000, to receive for it and on its behalf, service of process in the
State of California with respect thereto, provided each Borrower may appoint any
other Person, reasonably acceptable to Agent, with offices in the State of
California to replace such agent for service of process upon delivery to Agent
of a reasonably acceptable agreement of such new agent agreeing so to act. Each
Borrower irrevocably waives to the fullest extent permitted by applicable law
(a) any objection which it may have now or in the future to the laying of the
venue of any such action, suit or proceeding in any court referred to in the
first sentence above; (b) any claim that any such action, suit or proceeding has
been brought in an inconvenient forum; (c) its right of removal of any matter
commenced by any other party in the courts of the State of California to any
court of the United States of America; (d) any immunity which it or its assets
may have in respect of its obligations under this Agreement or any other Credit
Document from any suit, execution, attachment (whether provisional or final, in
aid of execution, before judgment or otherwise) or other legal process; and (e)
any right it may have to require the moving party in any suit, action or
proceeding brought in any of the courts referred to above arising out of or in
connection with this Agreement or any other Credit Document to post security for
the costs of such Borrower or to post a bond or to take similar action.
8.14. Effect on Existing Credit Agreement. Borrowers, Agent and Lenders
agree that on and after the date that this Agreement is executed by Borrowers
and the Required Lenders, (a) this Agreement shall amend, restate in its
entirety and replace, without notation, the Existing Credit Agreement, (b) the
Notes executed and delivered by LSI shall remain in full force and effect with
respect to the U.S. Loans outstanding hereunder and (c) the LSI Guaranty shall
remain in full force and effect with respect to this Agreement and the
obligations of LLJS hereunder; provided, however, that nothing contained herein
shall (i) operate as a waiver of any right, power or remedy of Agent or any
Lender under the Existing Credit Agreement or any related document, instrument
or agreement or (ii) extinguish or impair any obligations of either Borrower
under the Existing Credit Agreement or any related document, instrument or
agreement except to the extent any such obligation is actually satisfied by such
Borrower; and provided, further, that all Loans outstanding under the Existing
Credit Agreement shall remain outstanding and shall be deemed to have been made
under this Agreement on a pro rata basis by the Lenders hereunder in accordance
with their respective Proportionate Shares for the applicable category of Loan.
[The first signature page follows.]
76
77
IN WITNESS WHEREOF, Borrowers, Lenders and Agent have caused this Second
Amended and Restated Credit Agreement to be executed as of the day and year
first above written.
BORROWERS: LSI LOGIC CORPORATION
By:
-----------------------------------------
Name:
Title:
LSI LOGIC JAPAN SEMICONDUCTOR, INC.
By:
-----------------------------------------
Name:
Title:
AGENT: ABN AMRO BANK N.V.
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
LENDERS: ABN AMRO BANK N.V.
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
X-0
00
XXXXX XX XXXX
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
BANK OF AMERICA N.A.
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
BANK ONE, N.A.
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
S-2
00
XXX XXXX XX XXXX XXXXXX
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
BANQUE NATIONALE DE PARIS
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
XXXXX XXXX BANK CO., LTD.
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
S-3
80
CREDIT LYONNAIS,
LOS ANGELES BRANCH
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
DAI-ICHI KANGYO BANK, LIMITED
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
FIRST SECURITY BANK, N.A.
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
S-4
81
FLEET NATIONAL BANK
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
THE INDUSTRIAL BANK OF JAPAN, LIMITED
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
KEYBANK NATIONAL ASSOCIATION
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
X-0
00
XXXXXX XXXX
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
SANWA BANK CALIFORNIA
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
SOCIETE GENERALE
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
S-6
00
XXXXX XXXX XX XXXXXXXXXX, N.A.
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
U.S. BANK NATIONAL ASSOCIATION
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
S-7
84
SCHEDULE I
LENDERS
PART A - COMMITMENTS
U.S.
REVOLVING U.S 364 DAY JAPANESE
LENDER COMMITMENT COMMITMENT COMMITMENT
------ ---------- ---------- ----------
ABN AMRO Bank N.V. $19,661,505.13
Banca di Roma 3,606,194.68
Bank of America, N.A. 21,276,548.60
Bank One, N.A. 12,364,096.04
The Bank of Nova Scotia 18,185,524.59
Banque Nationale de Paris 14,424,778.71
Xxxxx Xxxx Bank Co., Ltd. 5,409,292.02
Credit Lyonnais Los Angeles 9,015,486.70
Branch
Dai-Ichi Kangyo Bank, Limited 12,364,096.04
First Security Bank, N.A. 9,015,486.70
Fleet National Bank 36,061,946.78
The Industrial Bank of 10,457,964.57
Japan, Limited
KeyBank National Association 21,276,548.60
Mellon Bank 9,015,486.70
Sanwa Bank California 10,818,584.04
Societe Generale 9,015,486.70
I-1
85
Union Bank of California, 9,015,486.70
X.X.
X.X. Bank National 9,015,486.70
Association
TOTAL $240,000,000.00 0 0
I-2
86
PART B - ADDRESSES FOR NOTICES, ETC.
ABN AMRO BANK N.V.
Domestic Lending Office and Euro-Dollar Lending Office:
ABN AMRO Bank N.V.
000 Xxxxx XxXxxxx Xxxxxx
Xxxxxxx, XX 00000
Japanese Lending Office:
ABN AMRO Bank N.V.
Tokyo Branch
13F, Shiroyama XX Xxxx Xxxxxxxx
0-0-0, Xxxxxxxxx, Xxxxxx-xx
Xxxxx 000, Xxxxx
Address for Notices related to U.S. Borrowings:
ABN AMRO Bank N.V.
San Francisco International Branch
000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000
Attn: Xxxxxx X. Xxxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Address for Notices related to the Japanese Borrowing:
ABN AMRO Bank N.V.
Tokyo Branch
13F, Shiroyama XX Xxxx Xxxxxxxx
0-0-0, Xxxxxxxxx, Xxxxxx-xx
Xxxxx 000, Xxxxx
Attn: Kiyoharu Michiwaki or Takamasa Marito
Tel. No: 00-0-0000-0000 or 6565
Fax No: 00-0-0000-0000 or 6903
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87
With a copy of all notices to:
ABN AMRO North America, Inc.
Syndications Group
0000 Xxxxxx xx xxx Xxxxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
ABN AMRO Bank N.V.
New York, New York
RT/ABA No.: 000000000
Account Name: ABN AMRO Bank N.V. - Chicago CPU
Account No.: 650-001-1789-41
Reference: LSI Logic Corporation
Wiring Instructions for the Japanese Borrowing:
Paying Bank: Sakura Bank, Tokyo Eigyo-bu
Beneficiary: Oranda Ginko Tokyo Shiten
(Japanese Account Name for ABN AMRO Bank Tokyo Branch)
Type of Account: Current
Account No.: 0000000
Reference: LSI Logic Japan 1998 Credit Facility
-or-
BOJ Net (Bank of Japan Financial Network System)
Tohzo Yokin Furikae
Account No.: 0422-001
Settlement: Kokan Jiri
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88
BANCA DI ROMA
Domestic Lending Office and Euro-Dollar Lending Office:
Banca di Roma
Xxx Xxxxxx Xxxxxx
Xxxxxxx Xxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 94105
Address for Notices related to U.S. Borrowings:
Banca di Roma
Xxx Xxxxxx Xxxxxx
Xxxxxxx Xxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000
Attn: Xxxxxxx Xxxxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
Bank of America, N.A.
San Francisco, CA
ABA No.: 000-000-000
Account Name: Banca di Roma San Xxxxxxxxx Xxxxxx
Account No.: 62903-01919
Reference: LSI Logic Corporation
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89
BANK OF AMERICA, N.A.
Domestic Lending Office and Euro-Dollar Lending Office:
Bank of America, N.A.
Global Payments Operations #5693
0000 Xxxxxxx Xxxxxxxxx, 0xx Xxxxx
Xxxxxxx, XX 00000
Address for Notices related to U.S. Borrowings:
Bank of America, N.A.
Global Payments Operations #5693
0000 Xxxxxxx Xxxxxxxxx, 0xx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxxx Xxxxxxx, Account Administrator
Tel. No: (000) 000-0000
Fax No: (000) 000-0000 or 7532
Wiring Instructions for U.S. Borrowings:
Bank of America, N.A.
Concord, CA
ABA No.: 000000000
Account No.: 12331-83920
Reference: LSI Logic Corporation
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90
BANK ONE, N.A.
Domestic Lending Office and Euro-Dollar Lending Office:
Bank One, N.A.
One Bank Xxx Xxxxx, 00xx Xxxxx
Xxxxxxx, XX 00000
Japanese Lending Office:
Bank One, N.A., Tokyo Branch
0xx Xxxxx, Xxxxxx Xxxxxxx Xxxxxxxx
0-0, Xxxxx-Xxxxxxxxx 1-chome
Xxxxxx-xx, Xxxxx 000, Xxxxx
Address for Notices related to U.S. Borrowings:
Bank One, N.A.
000 X. Xxxxxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxxxxx, XX 00000
Attn: Xxxxx X. Xxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Address for Notices related to the Japanese Borrowing:
Bank One, N.A., Tokyo Branch
0xx Xxxxx, Xxxxxx Xxxxxxx Xxxxxxxx
0-0, Xxxxx-Xxxxxxxxx 1-chome
Xxxxxx-xx, Xxxxx 000, Xxxxx
Attn: Xxxxxxx Xxxxxx
Tel. No: 00-0-0000-0000
Fax No: 00-0-0000-0000
With a copy of all notices to:
Bank One, N.A.
One Bank Xxx Xxxxx, 00xx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxxx Le
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
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91
Wiring Instructions for U.S. Borrowings:
Bank One, N.A.
Chicago, Illinois
ABA No.: 000000000
Account No.: 00000000
Reference: LSI Logic
Attn: Xxxx Le
Wiring Instructions for the Japanese Borrowing:
Paying Bank: The Dai-Ichi Kangyo Bank, Ltd. Head Office
Beneficiary: Bank One, N.A., Tokyo Branch
Account No.: 0000000 (Current Account)
Reference: LSI Logic Japan
-or-
BOJ Net (Bank of Japan Financial Network System)
Tohzo Yokin Furikae
Account No.: 0440-001
Settlement: Kokan-Jiri
I-8
00
XXX XXXX XX XXXX XXXXXX
Domestic Lending Office and Euro-Dollar Lending Office:
The Bank of Nova Scotia
000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxx 0000
Xxxxxxx, XX 00000
Japanese Lending Office:
The Bank of Nova Scotia, Tokyo Branch
Toranomon Waiko Building, 6th Floor
00-0, Xxxxxxxxx 0-xxxxx
Xxxxxx-xx, Xxxxx, 000-0000
Xxxxx
Address for Notices related to U.S. Borrowings:
The Bank of Nova Scotia
000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000
Attn: Xxxxx Xxxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Address for Notices related to the Japanese Borrowing:
The Bank of Nova Scotia, Tokyo Branch
Toranomon Waiko Building, 6th Floor
00-0, Xxxxxxxxx 0-xxxxx
Xxxxxx-xx, Xxxxx, 000-0000
Xxxxx
Attn: Xxxxx Xxxxxxxxxx
Tel. No: 00-0-0000-0000
Fax No: 00-0-0000-0000
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93
Wiring Instructions for U.S. Borrowings:
The Bank of Nova Scotia
Xxx Xxxxxxx Xxxxx
Xxx Xxxx, XX
ABA No.: 000000000
Account Name: The Bank of Nova Scotia
Account No.: 0000000
Reference: LSI Logic Corporation
Wiring Instructions for the Japanese Borrowing:
BOJ Net (Bank of Japan Financial Network System)
Tohzo Yokin Furikae
Account No.: 0469-001
Settlement: Kokan Jiri
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94
BANQUE NATIONALE DE PARIS
Domestic Lending Office and Euro-Dollar Lending Office:
Banque Nationale de Paris
000 Xxxxxxxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxxxxxxx, XX 00000
Address for Notices related to U.S. Borrowings:
Banque Nationale de Paris
000 Xxxxxxxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxxxxxxx, XX 00000
Attn: Xxxxxx Xxxxxxxx, Vice President
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
With a copy of all notices to:
Banque Nationale de Paris
000 Xxxxxxxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxxxxxxx, XX 00000
Attn: Xxx Xxxx, Vice President - Treasury
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
The Federal Reserve Bank of New York
ABA No.: 000000000 Banque Nationale de Paris
Beneficiary: BNP San Francisco
Account No.: 14334000176
Reference: By order: LSI Logic Corporation
state whether principal paydown, commitment fee,
interest payment, etc.
Attn: Xxxxx Xxxxx
X-00
00
XXXXX XXXX XXXX CO., LTD.
Domestic Lending Office and Euro-Dollar Lending Office:
Xxxxx Xxxx Bank Co., Ltd.
One World Financial Center
000 Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Address for Notices related to U.S. Borrowings:
Xxxxx Xxxx Bank Co., Ltd.
One World Financial Center
000 Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx-Si Xxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
Corestates Bank International
New York Branch
ABA No.: 000000000
Account Name: Xxxxx Xxxx Bank Co., Ltd.
Account No.: 00000000
Reference: LSI Logic Corporation
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96
CREDIT LYONNAIS
Domestic Lending Office and Euro-Dollar Lending Office:
Credit Lyonnais
Los Angeles Branch
000 Xxxxx Xxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxx, XX 00000
Address for Notices related to U.S. Borrowings:
Credit Lyonnais
Los Angeles Branch
000 Xxxxx Xxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxx, XX 00000
Attn: Xxxx Xxxxxxxxxxxx or Xxxxxxxxx Xxxxx
Tel. No: (000) 000-0000 or 000-0000
Fax No: (000) 000-0000
With a copy of all notices to:
Credit Lyonnais
Los Angeles Branch
000 Xxxxx Xxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxx, XX 00000
Attn: Xxxxx Xxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
Credit Lyonnais
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
ABA No.: 000-000-000
Reference: LSI Logic
Attn: Xxxx Xxxxxxxxxxxx
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97
DAI-ICHI KANGYO BANK, LIMITED
Domestic Lending Office and Euro-Dollar Lending Office:
Dai-Ichi Kangyo Bank, Limited
Los Angeles Agency
000 X. Xxxxx Xxxxxx
Xxx Xxxxxxx, XX 00000
Japanese Lending Office:
Dai-Ichi Kangyo Bank, Limited, Head Office
0-0-0, Xxxxxxxxxxxxx, Xxxxxxx-xx
Xxxxx 000-0000, Xxxxx
Address for Notices related to U.S. Borrowings:
Dai-Ichi Kangyo Bank, Limited
Los Angeles Agency
000 X. Xxxxx Xxxxxx
Xxx Xxxxxxx, XX 00000
Attn: Credit Administration
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Address for Notices related to the Japanese Borrowing:
Dai-Ichi Kangyo Bank, Limited, Head Office
0-0-0, Xxxxxxxxxxxxx, Xxxxxxx-xx
Xxxxx 000-0000, Xxxxx
Attn: Fumitake Koyae
Tel. No: 00-0-0000-0000
Fax No: 00-0-0000-0000
Wiring Instructions for U.S. Borrowings:
Dai-Ichi Kangyo Bank, Limited
New York Branch
ABA No.: 000-000-000
Account Name: Dai-Ichi Kangyo Bank, Limited Los Angeles Agency
Account No.: 799740111195
Reference: LSI Logic Corporation
Attn: Credit Administration
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98
Wiring Instructions for the Japanese Borrowing:
BOJ Net (Bank of Japan Financial Network System)
Tohzo Yokin Furikae
Account No.: 0001-001
Settlement: Kokan-Jiri
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FIRST SECURITY BANK, N.A.
Domestic Lending Office and Euro-Dollar Lending Office:
First Security Bank, N.A.
0000 Xxxxxxx Xxxx, Xxxxx 000
Xxxx Xxxxxx, XX 00000
Address for Notices related to U.S. Borrowings:
First Security Bank, N.A.
0000 Xxxxxxx Xxxx, Xxxxx 000
Xxxx Xxxxxx, XX 00000
Attn: Xxxxxx Xxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
First Security Bank, N.A.
Lake Oswego, OR
ABA No.:
Account No.:
Reference: LSI Logic Corporation
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FLEET NATIONAL BANK
Domestic Lending Office and Euro-Dollar Lending Office:
Fleet National Bank
One Federal Street, Mail Stop MAOF D07A
Xxxxxx, XX 00000
Address for Notices related to U.S. Borrowings:
Fleet National Bank
One Federal Street, Mail Stop MAOF D07A
Xxxxxx, XX 00000
Attn: Mat Glauninger
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
With a copy of all notices to:
Fleet National Bank
One Federal Street, Mail Stop MAOF D07A
Xxxxxx, XX 00000
Attn: Xxxxx Xxxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
Fleet National Bank
Boston, MA
ABA No.: 000000000
Account No.: 000-0000-00000
For further credit to Commercial Loan in Process
Reference: LSI Logic
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THE INDUSTRIAL BANK OF JAPAN, LIMITED
Domestic Lending Office and Euro-Dollar Lending Office:
The Industrial Bank of Japan, Limited
San Francisco Agency
000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000
Japanese Lending Office:
The Industrial Bank of Japan, Limited
Head Office
0-0, Xxxxxxxxxx 0-xxxxx, Xxxxxxx-Xx
Xxxxx 000-0000, Xxxxx
Address for Notices related to U.S. Borrowings:
The Industrial Bank of Japan, Limited
San Francisco Agency
000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000
Attn: Xxxx Xxxxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Address for Notices related to the Japanese Borrowing:
The Industrial Bank of Japan, Limited
Head Office
0-0, Xxxxxxxxx 0-xxxxx, Xxxxxxx-Xx
Xxxxx 000-0000, Xxxxx
Attn: Xxxxxx Xxxxx and Xxxxxx Xxxxxxxxx
Tel. No: 00-0-0000-0000
Fax No: 00-0-0000-0000
With a copy of all notices to:
The Industrial Bank of Japan, Limited
Los Angeles Agency
000 Xxxxx Xxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxx, XX 00000
Attn: Credit Administration Department
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
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102
Wiring Instructions for U.S. Borrowings:
Bank of America, N.A.
International Deposit Services #6561
0000 Xxxxxxx Xxxxxxxxx
Xxxxxxx, XX 00000 ABA No.: 000-000-000
Account Name: The Industrial Bank of Japan, Limited
Los Angeles Agency
Account No.: 62906-14014
For credit to IBJ SFA Account No. 2601-22011
Wiring Instructions for the Japanese Borrowing:
BOJ Net (Bank of Japan Financial Network System)
Tohzo Yokin Furikae
Account No.: 0000-000
Xxxxxxxxxx: Kokan Jiri
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KEYBANK NATIONAL ASSOCIATION
Domestic Lending Office and Euro-Dollar Lending Office:
KeyBank National Association
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxx, XX 00000
Address for Notices related to U.S. Borrowings:
KeyBank National Association
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxxx Xxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
With a copy of all notices to:
KeyBank National Association
000 Xxxxxxxxxx Xxxxxxxxx
Xxxxx, XX 00000
Attn: Specialty Services Team
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
KeyBank National Association
Seattle, WA
ABA No.: 000000000
Account No.: 00000000
Reference: LSI Logic
X-00
000
XXXXXX XXXX
Domestic Lending Office and Euro-Dollar Lending Office:
Mellon Bank
Three Mellon Bank Center, 153-1203
Xxxxxxxxxx, XX 00000
Address for Notices related to U.S. Borrowings:
Mellon Bank
000 Xxxxx Xxxxxx, Xxxxx 000
Xxxx Xxxx, XX 00000
Attn: Xxxxxxx Xxxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
With a copy of all notices to:
Mellon Bank
Three Mellon Bank Center, 153-1203
Xxxxxxxxxx, XX 00000
Attn: Xxxxx Xxxxx, Loan Serving Specialist
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
Mellon Bank
Pittsburgh, PA
ABA No.: 000000000
Account No.: 990-0000000
Reference: Loan Administration Re: LSI Logic
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SANWA BANK CALIFORNIA
Domestic Lending Office and Euro-Dollar Lending Office:
Sanwa Bank California
000 Xxxxxxx Xxxxxxxxx
Xxx Xxxx, XX 00000
Address for Notices related to U.S. Borrowings:
Sanwa Bank California
000 Xxxxxxx Xxxxxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxxx Xxxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
With a copy of all notices to:
Sanwa Bank California
000 Xxxxxxx Xxxxxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxxxx or Xxxxxxxx Xxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
Sanwa Bank California
San Jose, CA
ABA No.: 000-000-000
Account Name: Sanwa Money Net Account
Account No.: 1128-19005
Reference: LSI Logic
Attn: Xxxx Xxxxxx
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SOCIETE GENERALE
Domestic Lending Office and Euro-Dollar Lending Office:
Societe Generale
Los Angeles Branch
0000 Xxxxxxx Xxxx Xxxx
Xxxxx 0000
Xxx Xxxxxxx, XX 00000
Address for Notices related to U.S. Borrowings:
Societe Generale
Xxx Xxxxxxxxxx Xxxxxx
Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000
Attn: Xxx Xxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
With a copy of all notices to:
Societe Generale
Los Angeles Branch
0000 Xxxxxxx Xxxx Xxxx
Xxxxx 0000
Xxx Xxxxxxx, XX 00000
Attn: Xxxxx Xxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
Societe Generale
1221 Avenue of the Americas
New York, New York
ABA No.: 0000-0000-0
Account No.:
Reference: LSI Logic Corporation
I-23
000
XXXXX XXXX XX XXXXXXXXXX, N.A.
Domestic Lending Office and Euro-Dollar Lending Office:
Union Bank of California, N.A.
000 Xxxxxxxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxxxxxxx, XX 00000
Address for Notices related to U.S. Borrowings:
Union Bank of California, N.A.
0000 Xxxxxx Xxxxxx
Xxxxxxxx Xxxx, XX 00000-0000
Attn: Xxxxx Xxxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
Union Bank of California, N.A.
Monterey Park, CA
ABA No.: 0000-0000-0
Account No.: 070196431
Reference: LSI Logic Corporation
Attn: 192 Note Center
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U.S. BANK NATIONAL ASSOCIATION
Domestic Lending Office and Euro-Dollar Lending Office:
U.S. Bank National Association
000 X.X. Xxx Xxxxxx
Xxxxxxxx, XX 00000
Address for Notices related to U.S. Borrowings:
U.S. Bank National Association
0000 X. Xxxx Xxxxxx
Xxxxxx Xxxxx, XX 00000
Attn: Xxxxx Xxxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
With a copy of all notices to:
U.S. Bank National Association
000 X.X. Xxx Xxxxxx
Xxxxxxxx, XX 00000
Attn: Xxx Xxxxxxx
Tel. No: (000) 000-0000
Fax No: (000) 000-0000
Wiring Instructions for U.S. Borrowings:
U.S. Bank National Association
Portland, OR
ABA No.: 000000000
Account Name: Commercial Loan Servicing West - PL7
Account No.: 00340012160600
Reference: LSI Logic Corporation
Attn: Xxx Xxxxxxx
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SCHEDULE II
PRICING GRID
APPLICABLE APPLICABLE APPLICABLE
MARGIN MARGIN MARGIN
PRICING FOR FOR FOR
PRICING PERIOD U.S. REVOLVING BASE RATE LIBOR JAPANESE
RATIO LEVEL COMMITMENT FEES LOANS LOANS LOANS
----- ------- --------------- ---------- ---------- ----------
<0.75 1 0.250% 0% 0.750% 0.750%
>0.75,
<1.50 2 0.300% 0% 1.000% 1.000%
>1.50 3 0.325% 0% 1.250% 1.250%
EXPLANATION
1. The U.S. Revolving Commitment Fees and the Applicable Margin For Base
Rate Loans, LIBOR Loans and Japanese Loans will be set for each Pricing
Period and will vary depending upon whether such period is a Level 1
Period, a Level 2 Period or a Level 3 Period.
2. The first Pricing Period which commences on the date of this Agreement
and ends on September 30, 1998, will be a Level 3 Period.
3. Each Pricing Period thereafter will be a Level 1 Period, a Level 2
Period, or a Level 3 Period depending upon the Pricing Ratio calculated
on an annualized basis for the most recent consecutive two-quarter
period ending on the last day of the quarter that ended prior to the
first day of such Pricing Period.
4. If the Applicable Margin has not yet been determined for a Pricing
Period on the date any Interest Period commences or any interest is
payable with respect to any Loans, interest shall accrue and be paid on
such Loans calculated on the basis of the Applicable Margin for the
applicable category of Loans during the prior Pricing Period. When the
Applicable Margin is determined for such Pricing Period, accrued but
unpaid interest on the Loans outstanding during such Pricing Period
shall be recalculated on the basis of such Applicable Margin, but Agent
and Lenders shall not be required to refund any excess interest and
Borrowers shall not be required to pay any additional interest with
respect to Loans on which interest was paid during such Pricing Period
prior to determination of the Applicable Margin.
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5. Examples:
(a) Pricing Ratio is 1.55 on an annualized basis for the
consecutive two-quarter period ending on September 30, 1998. The Pricing
Period of October 1, 1998 through December 31, 1998 will be a Level 3
Period.
(b) Pricing Ratio is 1.10 on an annualized basis for the
consecutive two-quarter period ending on December 31, 1998. The Pricing
Period of January 1, 1999 through March 31, 1999 will be a Level 2
Period.
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SCHEDULE 3.01
I. INITIAL CLOSING DATE CONDITIONS PRECEDENT
A. PRINCIPAL CREDIT DOCUMENTS.
(1) The Credit Agreement, duly executed by each Borrower, each
Lender and Agent;
(2) Agent's Syndication Letter, duly executed by each Borrower;
(3) If the Initial Closing Date is the U.S. Closing Date, a Note
payable to each applicable U.S. Lender requesting such a Note for its
U.S. Revolving Loans or U.S. 364 Day Loans, each duly executed by LSI;
and
(4) If the Initial Closing Date is the Japanese Closing Date,
the LSI Guaranty, duly executed by LSI.
B. LSI CORPORATE DOCUMENTS.
(1) The Certificate of Incorporation of LSI, certified as of a
recent date prior to the Initial Closing Date by the Secretary of State
of Delaware;
(2) A Certificate of Good Standing (or comparable certificate)
for LSI, certified as of a recent date prior to the Initial Closing Date
by the Secretary of State of Delaware;
(3) A certificate of the Secretary or an Assistant Secretary of
LSI, dated the Initial Closing Date, certifying (a) that attached
thereto is a true and correct copy of the Bylaws of LSI as in effect on
the Initial Closing Date; (b) that attached thereto are true and correct
copies of resolutions duly adopted by the Board of Directors of LSI and
continuing in effect, which (i) authorize the execution, delivery and
performance by LSI of this Agreement and the other Credit Documents
executed or to be executed by LSI and the consummation of the
transactions contemplated hereby and thereby and (ii) designate the
officers authorized so to execute, deliver and perform on behalf of LSI;
and (c) that there are no proceedings for the dissolution or liquidation
of LSI;
(4) A certificate of the Secretary or an Assistant Secretary of
LSI, dated the Initial Closing Date, certifying the incumbency,
signatures and authority of the officers of LSI authorized to execute,
deliver and perform this Agreement, the other Credit Documents and all
other documents, instruments or agreements related thereto executed or
to be executed by LSI;
(5) Certificates of Good Standing (or comparable certificates)
for LSI, certified as of a recent date prior to the Initial Closing Date
by the Secretaries of State (or comparable official) of California and
each other jurisdiction in which LSI is qualified to do business and has
assets with a net book value in excess of $10,000,000 (exclusive of
intercompany assets and liabilities); and
3.01-1
112
(6) Acceptance of appointment as agent for service of process on
LSI relating to the Credit Documents, executed by CT Corporation prior
to the Initial Closing Date.
C. LLJS CORPORATE DOCUMENTS.
(1) The Articles of Association (Teikan) of LLJS, certified as
of a recent date prior to the Initial Closing Date by a Representative
Director of LLJS;
(2) A copy of the commercial registry (Syougyou Tookibotoohon)
for LLJS, issued as of a recent date prior to the Initial Closing Date
by the registrar of the Tokyo Legal Affairs Bureau of the Ministry of
Justice;
(3) A certificate of a Representative Director of LLJS, dated
the Initial Closing Date, certifying (a) that attached thereto are true
and correct copies of resolutions duly adopted by the Board of Directors
of LLJS and continuing in effect, which (i) authorize the execution,
delivery and performance by LLJS of this Agreement and the other Credit
Documents executed or to be executed by LLJS and the consummation of the
transactions contemplated hereby and (ii) designate the officers,
directors and attorneys authorized so to execute, deliver and perform on
behalf of LLJS; and (b) that there are no proceedings for the
dissolution or liquidation of LLJS, together with an English translation
thereof (if appropriate);
(4) A certificate of a Representative Director of LLJS, dated
the Initial Closing Date, certifying the incumbency, signatures and
authority of the officers, directors or attorneys of LLJS authorized to
execute, deliver and perform this Agreement, the other Credit Documents
and all other documents, instruments or agreements related thereto
executed or to be executed by LLJS, together with an English translation
thereof (if appropriate); and
(5) Acceptance of appointment as agent for service of process on
LLJS relating to the Credit Documents, executed by CT Corporation prior
to the Initial Closing Date.
D. FINANCIAL STATEMENTS, FINANCIAL CONDITION, ETC.
(1) A copy of the unaudited Financial Statements of LSI and its
Subsidiaries for the fiscal quarter ended March 31, 1998, and for the
fiscal year to such date (prepared on a consolidated and consolidating
basis), certified by the Chief Financial Officer or Treasurer of LSI to
present fairly the financial condition, results of operations and other
information reflected therein and to have been prepared in accordance
with GAAP (subject to normal year-end audit adjustments);
(2) A copy of the audited consolidated Financial Statements of
LSI for the fiscal year ended December 31, 1997, prepared by Ernst &
Young LLP, together with a copy of the unqualified opinion and
management letter delivered by such accountants in connection with such
Financial Statements;
3.01-2
113
(3) A copy of the 10-Q report filed by LSI with the SEC for the
quarter ended March 31, 1998;
(4) A copy of the 10-K report filed by LSI with the SEC for the
fiscal year ended December 31, 1997;
(5) A final sources and uses statement for the Symbios
Acquisition (including transaction costs);
(6) A pro forma balance sheet of LSI prepared as of June 30,
1998, but incorporating all preclosing adjustments and reflecting the
consummation of the Symbios Acquisition, the Loans to be made in
connection therewith and the other transactions contemplated by the
Symbios Acquisition Documents, certified by the Chief Financial Officer
or Treasurer of LSI as having been prepared based upon reasonable
assumptions and in good faith; and
(7) Such other financial, business and other information
regarding Borrowers or any of their Subsidiaries as Agent or any Lender
may reasonably request, including information as to the Symbios
Acquisition and possible contingent liabilities, tax matters,
environmental matters and obligations for employee benefits and
compensation.
E. OPINIONS.
A favorable written opinion from Wilson, Sonsini, Xxxxxxxx &
Xxxxxx, counsel for Borrowers and LSI as guarantor under the LSI
Guaranty, in the form of Exhibit I, dated the Initial Closing Date,
addressed to Agent for the benefit of Agent and Lenders, covering such
legal matters as Agent may reasonably request and otherwise in form and
substance satisfactory to Agent:
F. OTHER ITEMS.
(1) A duly completed and timely delivered Notice of Borrowing
for the applicable Borrowing;
(2) Copies of the principal Symbios Acquisition Documents;
(3) Copies of all filings made by LSI with the SEC in connection
with the Symbios Acquisition, together with all exhibits and all
amendments thereto through the Initial Closing Date;
(4) A certificate from each of the Chief Financial Officer or
Treasurer of LSI and a Representative Director of LLJS, respectively,
addressed to Agent and dated the Initial Closing Date, certifying that:
(a) The representations and warranties set forth in
Paragraph 4.01 and in the other Credit Documents are true and
correct in all material respects as of such date (except for
such representations and warranties made as of a specified date,
which shall be true as of such date); and
3.01-3
114
(b) No Default has occurred and is continuing as of such
date.
(5) All fees and expenses payable to Agent and Lenders on or
prior to the Initial Closing Date (including all fees payable to Agent
pursuant to the Agent's Fee Letter);
(6) All fees and expenses of Agent's counsels through the
Initial Closing Date;
(7) Such other evidence as Agent or any Lender may reasonably
request to establish the accuracy and completeness of the
representations and warranties and the compliance with the terms and
conditions contained in this Agreement and the other Credit Documents;
(8) Copies of the irrevocable notices delivered by LLJS pursuant
to the Outstanding Japanese Loan Facility of its intention to cancel all
commitments and prepay all amounts outstanding thereunder by no later
than August 31, 1998;
(9) Copies of the form of LSI's 5 1/2% Subordinated Notes due
2001 and the indenture relating thereto;
(10) Such documentation as ABN AMRO may require in order for
LLJS to open an account with its Tokyo branch, including, without
limitation, an Agreement on Bank Transactions and an Agreement on
Overdraft in Current Account.
II. POST-CLOSING CONDITIONS SUBSEQUENT
A. English translations of the Articles of Association (Teikan) and
commercial registry (Syougyou Tookibotoohon) for LLJS delivered pursuant to
Items C(1) and C(2) of Part I of this Schedule 3.01.
B. A favorable written opinion from Nagashima & Ohno, , Japanese counsel
for LLJS, in the form of Exhibit J, addressed to Agent for the benefit of Agent
and Lenders, covering such legal matters as Agent may reasonably request and
otherwise in form and substance satisfactory to Agent:
3.01-4
115
EXHIBIT A
NOTICE OF U.S. BORROWING
[Date]
ABN AMRO Bank N.V.,
as Agent
Syndications Group
1325 Avenue of the Americas, 0xx Xxxxx
Xxx Xxxx, XX 00000
X.X.X.
Attn: Xxxxx Xxxxxxxx
1. Reference is made to that certain Second Amended and Restated Credit
Agreement, dated as of April 21, 2000 (the "Credit Agreement"), among LSI Logic
Corporation ("LSI"), LSI Logic Japan Semiconductor, Inc., the financial
institutions listed in Schedule I to the Credit Agreement (the "Lenders") and
ABN AMRO Bank N.V., as agent for Lenders (in such capacity, "Agent"). Unless
otherwise indicated, all terms defined in the Credit Agreement have the same
respective meanings when used herein.
2. Pursuant to Subparagraph 2.01(c) of the Credit Agreement, LSI hereby
irrevocably requests a U.S. Borrowing upon the following terms:
(a) The requested U.S. Borrowing is to be a [U.S. Revolving
Borrowing][U.S. 364 Day Borrowing];
(b) The principal amount of the requested U.S. Borrowing is to
be $________;
(c) The requested U.S. Borrowing is to consist of [Base
Rate][LIBOR] Loans;
(d) If the requested U.S. Borrowing is to consist of LIBOR
Loans, the initial Interest Period for such Loans will be month[s]; and
(e) The date of the requested U.S. Borrowing is to be
__________, ____.
3. LSI hereby certifies to Lenders and Agent that, on the date of this
Notice of U.S. Borrowing and after giving effect to the requested U.S.
Borrowing:
(a) The representations and warranties of Borrowers and their
Subsidiaries set forth in Paragraph 4.01 of the Credit Agreement and in
the other Credit Documents are true and correct in all material respects
as if made on such date (except for representations and warranties
expressly made as of a specified date, which shall be true in all
material respects as of such date); and
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116
(b) No Default has occurred and is continuing.
4. Please disburse the proceeds of the requested U.S. Borrowing to
_______________________________________________________________________________.
IN WITNESS WHEREOF, LSI has executed this Notice of U.S. Borrowing on
the date set forth above.
LSI LOGIC CORPORATION
By:
-----------------------------------------
Name:
Title:
A-2
117
EXHIBIT 10.19
EXHIBIT B
NOTICE OF U.S. BORROWING CONVERSION
[Date]
ABN AMRO Bank N.V.,
as Agent
Syndications Group
1325 Avenue of the Americas, 0xx Xxxxx
Xxx Xxxx, XX 00000
X.X.X.
Attn: Xxxxx Xxxxxxxx
1. Reference is made to that certain Second Amended and Restated Credit
Agreement, dated as of April 21, 2000 (the "Credit Agreement"), among LSI Logic
Corporation ("LSI"), LSI Logic Japan Semiconductor, Inc., the financial
institutions listed in Schedule I to the Credit Agreement (the "Lenders") and
ABN AMRO Bank N.V., as agent for Lenders (in such capacity, "Agent"). Unless
otherwise indicated, all terms defined in the Credit Agreement have the same
respective meanings when used herein.
2. Pursuant to Subparagraph 2.01(e) of the Credit Agreement, LSI hereby
irrevocably requests to convert a U.S. Borrowing as follows:
(a) The U.S. Borrowing to be converted consists of ["Base Rate"
or "LIBOR"] Loans in the aggregate principal amount of $__________ which
were initially advanced to LSI on , , as a [U.S. Revolving Borrowing or
U.S. 364 Day Borrowing][, and have a current Interest Period of ____
month[s] expiring on __________, ____];
(b) The U.S. Loans in such U.S. Borrowing are to be converted
into ["Base Rate" or "LIBOR"] Loans;
(c) If such U.S. Loans are to be converted into LIBOR Loans, the
initial Interest Period for such U.S. Loans commencing upon conversion
will be month[s]; and
(d) The date of the requested conversion is to be __________,
____.
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118
3. LSI hereby certifies to Lenders and Agent that, on the date of this
Notice of U.S. Borrowing Conversion, and after giving effect to the requested
conversion:
(a) The representations and warranties of Borrowers and their
Subsidiaries set forth in Paragraph 4.01 of the Credit Agreement and in
the other Credit Documents are true and correct in all material respects
as if made on such date (except for representations and warranties
expressly made as of a specified date, which shall be true in all
material respects as of such date); and
(b) No Default has occurred and is continuing.
IN WITNESS WHEREOF, LSI has executed this Notice of U.S. Borrowing
Conversion on the date set forth above.
LSI LOGIC CORPORATION
By:
--------------------------------
Name:
---------------------------
Title:
--------------------------
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119
EXHIBIT C
NOTICE OF U.S. BORROWING INTEREST PERIOD SELECTION
[Date]
ABN AMRO Bank N.V.,
as Agent
Syndications Group
1325 Avenue of the Americas, 0xx Xxxxx
Xxx Xxxx, XX 00000
X.X.X.
Attn: Xxxxx Xxxxxxxx
1. Reference is made to that certain Second Amended and Restated Credit
Agreement, dated as of April 21, 2000 (the "Credit Agreement"), among LSI Logic
Corporation ("LSI"), LSI Logic Japan Semiconductor, Inc., the financial
institutions listed in Schedule I to the Credit Agreement (the "Lenders") and
ABN AMRO Bank N.V., as agent for Lenders (in such capacity, "Agent"). Unless
otherwise indicated, all terms defined in the Credit Agreement have the same
respective meanings when used herein.
2. Pursuant to Subparagraph 2.01(f) of the Credit Agreement, LSI hereby
irrevocably selects a new Interest Period for a U.S. Borrowing as follows:
(a) The U.S. Borrowing for which a new Interest Period is to be
selected consists of LIBOR Loans in the aggregate principal amount of
$__________ which were initially advanced to LSI on ___________, ____,
as a [U.S. Revolving Borrowing or U.S. 364 Day Borrowing];
(b) The last day of the current Interest Period for such LIBOR
Loans is ___________, ____; and
(c) The next Interest Period for such LIBOR Loans commencing
upon the last day of the current Interest Period is to be _________
month[s].
3. LSI hereby certifies to Lenders and Agent that, on the date of this
Notice of U.S. Borrowing Interest Period Selection, and after giving effect to
the requested selection:
(a) The representations and warranties of Borrowers and their
Subsidiaries set forth in Paragraph 4.01 of the Credit Agreement and in
the other Credit Documents are true and correct in all material respects
as if made on such date (except for representations and warranties
expressly made as of a specified date, which shall be true in all
material respects as of such date); and
(b) No Default has occurred and is continuing.
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IN WITNESS WHEREOF, LSI has executed this Notice of U.S. Borrowing
Interest Period Selection on the date set forth above.
LSI LOGIC CORPORATION
By:
--------------------------------
Name:
---------------------------
Title:
--------------------------
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121
EXHIBIT D
NOTICE OF JAPANESE BORROWING
[Date]
ABN AMRO Bank N.V.,
as Agent
00X, Xxxxxxxxx XX Xxxx Xxxxxxxx
0-0-0, Xxxxxxxxx, Xxxxxx-xx
Xxxxx 000, Xxxxx
Attn: Kiyoharu Michiwaki
1. Reference is made to that certain Credit Agreement, dated as of
August 5, 1998 (the "Credit Agreement"), among LSI Logic Corporation, LSI Logic
Japan Semiconductor, Inc. ("LLJS"), the financial institutions listed in
Schedule I to the Credit Agreement (the "Lenders") and ABN AMRO Bank N.V., as
agent for Lenders (in such capacity, "Agent"). Unless otherwise indicated, all
terms defined in the Credit Agreement have the same respective meanings when
used herein.
2. Pursuant to Subparagraph 2.02(b) of the Credit Agreement, LLJS hereby
irrevocably requests the Japanese Borrowing upon the following terms:
(a) The principal amount of the Japanese Borrowing is to be
(Yen)__________;
(b) The initial Interest Period of the Japanese Borrowing will
be month[s]; and
(c) The date of the Japanese Borrowing is to be __________,
____.
3. LLJS hereby certifies to Lenders and Agent that, on the date of this
Notice of Japanese Borrowing and after giving effect to the Japanese Borrowing:
(a) The representations and warranties of Borrowers and their
Subsidiaries set forth in Paragraph 4.01 of the Credit Agreement and in
the other Credit Documents are true and correct in all material respects
as if made on such date (except for representations and warranties
expressly made as of a specified date, which shall be true as of such
date);
(b) No Default has occurred and is continuing; and
(c) All of the Credit Documents are in full force and effect.
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122
4. Please disburse the proceeds of the Japanese Borrowing to __________
______________________________________________________________________________.
IN WITNESS WHEREOF, LLJS has executed this Notice of Japanese Borrowing
on the date set forth above.
LSI LOGIC JAPAN SEMICONDUCTOR, INC.
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
D-2
123
EXHIBIT E
NOTICE OF JAPANESE BORROWING INTEREST PERIOD SELECTION
[Date]
ABN AMRO Bank N.V.,
as Agent
00X, Xxxxxxxxx XX Xxxx Xxxxxxxx
0-0-0, Xxxxxxxxx, Xxxxxx-xx
Xxxxx 000, Xxxxx
Attn: Kiyoharu Michiwaki
1. Reference is made to that certain Second Amended and Restated Credit
Agreement, dated as of April 21, 2000 (the "Credit Agreement"), among LSI Logic
Corporation, LSI Logic Japan Semiconductor, Inc. ("LLJS"), the financial
institutions listed in Schedule I to the Credit Agreement (the "Lenders") and
ABN AMRO Bank N.V., as agent for Lenders (in such capacity, "Agent"). Unless
otherwise indicated, all terms defined in the Credit Agreement have the same
respective meanings when used herein.
2. Pursuant to Subparagraph 2.02(d) of the Credit Agreement, LLJS hereby
irrevocably selects a new Interest Period for the Japanese Borrowing as follows:
(a) The last day of the current Interest Period for the Japanese
Borrowing is ___________, ____; and
(b) The next Interest Period for the Japanese Borrowing
commencing upon the last day of the current Interest Period is to be
_________ month[s].
3. LLJS hereby certifies to Lenders and Agent that, on the date of this
Notice of Japanese Borrowing Interest Period Selection, and after giving effect
to the requested selection:
(a) The representations and warranties of Borrowers and their
Subsidiaries set forth in Paragraph 4.01 of the Credit Agreement and in
the other Credit Documents are true and correct in all material respects
as if made on such date (except for representations and warranties
expressly made as of a specified date, which shall be true in all
material respects as of such date); and
(b) No Default has occurred and is continuing.
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124
IN WITNESS WHEREOF, LLJS has executed this Notice of Japanese Borrowing
Interest Period Selection on the date set forth above.
LSI LOGIC JAPAN SEMICONDUCTOR, INC.
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
X-0
000
XXXXXXX X
NOTE
$_____________ ____________________, __________
________________, ____
FOR VALUE RECEIVED, LSI LOGIC CORPORATION, a Delaware corporation
("Borrower"), hereby promises to pay to the order of ____________________, a
____________________ ("Lender"), the principal sum of
______________________________ DOLLARS ($__________), or such lesser amount as
shall equal the aggregate outstanding principal balance of the [U.S. Revolving
Loans][U.S. 364 Day Loans] made by Lender to Borrower pursuant to the Credit
Agreement referred to below (as amended from time to time, the "Credit
Agreement"), on or before the [Revolving Termination Date][U.S. 364 Day
Termination Date] specified in the Credit Agreement; and to pay interest on the
outstanding amount of said sum, or such lesser amount, at the rates and on the
dates provided in the Credit Agreement.
Borrower shall make all payments hereunder, for the account of Lender's
Applicable Lending Office, to Agent as indicated in the Credit Agreement, in
lawful money of the United States and in same day or immediately available
funds.
Borrower hereby authorizes Lender to record on the schedule(s) annexed
to this note the date and amount of each [U.S. Revolving Loan][U.S. 364 Day
Loan] and of each payment or prepayment of principal made by Borrower and agrees
that all such notations shall constitute prima facie evidence of the matters
noted; provided, however, that the failure of Lender to make any such notation
shall not affect Borrower's obligations hereunder.
This note is one of the Notes referred to in the Amended and Restated
Credit Agreement, dated as of September 22, 1998, among Borrower, LSI Logic
Japan Semiconductor, Inc., Lender and the other financial institutions from time
to time parties thereto (collectively, the "Lenders") and ABN AMRO Bank N.V., as
agent for Lenders. This note is subject to the terms of the Credit Agreement,
including the rights of prepayment and the rights of acceleration of Maturity
set forth therein. Terms used herein have the meanings assigned to those terms
in the Credit Agreement, unless otherwise defined herein.
The transfer, sale or assignment of any rights under or interest in this
note is subject to certain restrictions contained in the Credit Agreement,
including Paragraph 8.05 thereof.
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Borrower shall pay all reasonable fees and expenses, including
reasonable attorneys' fees, incurred by Lender in the enforcement or attempt to
enforce any of Borrower's obligations hereunder not performed when due. Borrower
hereby waives notice of presentment, demand, protest or notice of any other
kind. This note shall be governed by and construed in accordance with the laws
of the State of California.
LSI LOGIC CORPORATION
By:
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Name:
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Title:
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LOANS AND PAYMENTS OF PRINCIPAL
Amount of
Type of Amount of Interest Principal Paid Unpaid Notation
Date Loan Loan Period or Prepaid Principal Balance Made By
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EXHIBIT G
LSI GUARANTY
THIS GUARANTY, dated as of [ ], 1998, is executed by LSI LOGIC
CORPORATION, a Delaware corporation ("Guarantor"), in favor of ABN AMRO BANK
N.V., acting as agent (in such capacity, and each successor thereto in such
capacity, "Agent") for the financial institutions which are from time to time
parties to the Credit Agreement referred to in Recital A below (collectively,
"Lenders").
RECITALS
A. Pursuant to a Credit Agreement dated as of August 5, 1998 (as amended
from time to time, the "Credit Agreement"), among LSI Logic Japan Semiconductor,
Inc. ("Borrower"), Guarantor, Lenders and Agent, Lenders have agreed to extend
certain credit facilities to Borrower and Guarantor upon the terms and subject
to the conditions set forth therein. Borrower is a wholly-owned Subsidiary of
Guarantor.
B. Lenders' obligations to extend the credit facilities to Borrower and
Guarantor under the Credit Agreement are subject, among other conditions, to
receipt by Agent of this Guaranty, duly executed by Guarantor.
AGREEMENT
NOW, THEREFORE, in consideration of the above recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Guarantor hereby agrees with Agent, for the ratable benefit of
Lenders and Agent, as follows:
1. DEFINITIONS AND INTERPRETATION.
(a) Definitions. When used in this Guaranty, the following terms
shall have the following respective meanings:
"Agent" shall have the meaning given to that term in the
introductory paragraph hereof.
"Borrower" shall have the meaning given to that term in the
Recital A hereof.
"Credit Agreement" shall have the meaning given to that term in
the Recital A hereof.
"Debtor Relief Proceeding" shall mean any suit, action, case or
other proceeding commenced by, against or for Borrower or Guarantor or
its property
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seeking the dissolution, liquidation, reorganization, rearrangement or
other relief of Borrower or Guarantor or its debts under any applicable
bankruptcy, insolvency or debtor relief law or other similar
Governmental Rule now or hereafter in effect or seeking the appointment
of a receiver, trustee, liquidator, custodian or other similar official
for Borrower or Guarantor or any substantial part of its property or any
general assignment by Borrower or Guarantor for the benefit of its
creditors, whether or not any such suit, action, case or other
proceeding is voluntary or involuntary.
"Disallowed Post-Commencement Interest and Expenses" shall mean
interest computed at the rate provided in the Credit Agreement and
claims for reimbursement, costs, expenses or indemnities under the terms
of any of the Credit Documents accruing or claimed at any time after the
commencement of any Debtor Relief Proceeding, if the claim for such
interest, reimbursement, costs, expenses or indemnities is not
allowable, allowed or enforceable against Borrower in such Debtor Relief
Proceeding.
"Guaranteed Obligations" shall mean and include all loans,
advances, debts, liabilities, and obligations, howsoever arising, owed
by Borrower to Agent or any Lender of every kind and description
(whether or not evidenced by any note or instrument and whether or not
for the payment of money), direct or indirect, absolute or contingent,
due or to become due, now existing or hereafter arising pursuant to the
terms of the Credit Documents, including all interest, fees, charges,
expenses, attorneys' fees and accountants' fees chargeable to Borrower
or payable by Borrower thereunder.
"Guarantor" shall have the meaning given to that term in the
introductory paragraph hereof.
"Lenders" shall have the meaning given to that term in the
introductory paragraph hereof.
"Subordinated Obligations" shall have the meaning given to that
term in Paragraph 4 hereof.
"Taxes" shall have the meaning given to such term in
Subparagraph 5(h).
Unless otherwise defined herein, all other capitalized terms used herein and
defined in the Credit Agreement shall have the respective meanings given to
those terms in the Credit Agreement.
(b) Other Interpretive Provisions. The rules of construction set forth
in Section I of the Credit Agreement shall, to the extent not inconsistent with
the terms of this Guaranty, apply to this Guaranty and are hereby incorporated
by reference.
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2. GUARANTY.
(a) Payment Guaranty. Guarantor unconditionally guarantees and promises
to pay and perform as and when due, whether at stated maturity, upon
acceleration or otherwise, any and all of the Guaranteed Obligations. If any
Debtor Relief Proceeding relating to Borrower is commenced, Guarantor further
unconditionally guarantees and promises to pay and perform, upon the demand of
Agent, any and all of the Guaranteed Obligations (including any and all
Disallowed Post-Commencement Interest and Expenses) in accordance with the terms
of the Credit Documents, whether or not such obligations are then due and
payable by Borrower and whether or not such obligations are modified, reduced or
discharged in such Debtor Relief Proceeding. This Guaranty is a guaranty of
payment and not of collection.
(b) Continuing Guaranty. This Guaranty is an irrevocable continuing
guaranty of the Guaranteed Obligations which shall continue in effect until all
obligations of Lenders to extend credit to Borrower have terminated and all of
the Guaranteed Obligations have been fully paid. If any payment on any
Guaranteed Obligation is set aside, avoided or rescinded or otherwise recovered
from Agent or any Lender, such recovered payment shall constitute a Guaranteed
Obligation hereunder and, if this Guaranty was previously released or
terminated, it automatically shall be fully reinstated, as if such payment was
never made.
(c) Independent Obligation. The liability of Guarantor hereunder is
independent of the Guaranteed Obligations, and a separate action or actions may
be brought and prosecuted against Guarantor irrespective of whether action is
brought against Borrower or any other guarantor of the Guaranteed Obligations or
whether Borrower or any other guarantor of the Guaranteed Obligations is joined
in any such action or actions.
(d) Fraudulent Transfer Limitation. If, in any action to enforce this
Guaranty, any court of competent jurisdiction determines that enforcement
against Guarantor for the full amount of the Guaranteed Obligations is not
lawful under or would be subject to avoidance under Section 548 of the
Bankruptcy Code or any applicable provision of any comparable law of any state
or other jurisdiction, the liability of Guarantor under this Guaranty shall be
limited to the maximum amount lawful and not subject to such avoidance.
(e) Termination. Notwithstanding any termination of this Guaranty in
accordance with Paragraph 3 hereof, this Guaranty shall continue to be in full
force and effect and applicable to any Guaranteed Obligations arising thereafter
which arise because prior payments of Guaranteed Obligations are rescinded or
otherwise required to be surrendered by Agent or any Lender after receipt.
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3. AUTHORIZATIONS, WAIVERS, ETC.
(a) Authorizations. Guarantor authorizes Agent and Lenders, in their
discretion, without notice to Guarantor, irrespective of any change in the
financial condition of Borrower, Guarantor or any other guarantor of the
Guaranteed Obligations since the date hereof, and without affecting or impairing
in any way the liability of Guarantor hereunder, from time to time to:
(i) Create new Guaranteed Obligations and renew, compromise,
extend, accelerate or otherwise change the time for payment or
performance of, or otherwise amend or modify the Credit Documents or
change the terms of the Guaranteed Obligations or any part thereof,
including increase or decrease of the rate of interest thereon;
(ii) Take and hold security for the payment or performance of
the Guaranteed Obligations and exchange, enforce, waive or release any
such security; apply such security and direct the order or manner of
sale thereof; and purchase such security at public or private sale;
(iii) Otherwise exercise any right or remedy they may have
against Borrower, Guarantor, any other guarantor of the Guaranteed
Obligations or any security, including, without limitation, the right to
foreclose upon any such security by judicial or nonjudicial sale;
(iv) Settle, compromise with, release or substitute any one or
more makers, endorsers or guarantors of the Guaranteed Obligations; and
(v) Assign the Guaranteed Obligations, this Guaranty or the
other Credit Documents in whole or in part to the extent provided in the
Credit Agreement and the other Credit Documents.
(b) Waivers. Guarantor hereby waives:
(i) Any right to require Agent or any Lender to (A) proceed
against Borrower or any other guarantor of the Guaranteed Obligations,
(B) proceed against or exhaust any security received from Borrower,
Guarantor or any other guarantor of the Guaranteed Obligations or
otherwise xxxxxxxx the assets of Borrower, Guarantor or any other
guarantor of the Guaranteed Obligations or (C) pursue any other remedy
in Agent's or any Lender's power whatsoever;
(ii) Any defense arising by reason of the application by
Borrower of the proceeds of any borrowing;
(iii) Any defense resulting from the absence, impairment or loss
of any right of reimbursement, subrogation, contribution or other right
or remedy of Guarantor against Borrower, any other guarantor of the
Guaranteed Obligations or
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any security, whether resulting from an election by Agent or any Lender
to foreclose upon security by nonjudicial sale, or otherwise;
(iv) Any setoff or counterclaim of Borrower or any defense which
results from any disability or other defense of Borrower or the
cessation or stay of enforcement from any cause whatsoever of the
liability of Borrower (including, without limitation, the lack of
validity or enforceability of any of the Credit Documents);
(v) Any defense based upon any law, rule or regulation which
provides that the obligation of a surety must not be greater or more
burdensome than the obligation of the principal;
(vi) Until all obligations of Agent or any Lender to extend
credit to Borrower have terminated and all of the Guaranteed Obligations
have been fully paid, any right of subrogation, reimbursement,
indemnification or contribution and other similar right to enforce any
remedy which Agent, Lenders or any other Person now has or may hereafter
have against Borrower on account of the Guaranteed Obligations, and any
benefit of, and any right to participate in, any security now or
hereafter received by Agent, any Lender or any other Person on account
of the Guaranteed Obligations;
(vii) All presentments, demands for performance, notices of
non-performance, notices delivered under the Credit Documents, protests,
notice of dishonor, and notices of acceptance of this Guaranty and of
the existence, creation or incurring of new or additional Guaranteed
Obligations and notices of any public or private foreclosure sale;
(viii) The benefit of any statute of limitations to the extent
permitted by law;
(ix) Any appraisement, valuation, stay, extension, moratorium
redemption or similar law or similar rights for marshalling;
(x) Any right to be informed by Agent or any Lender of the
financial condition of Borrower or any other guarantor of the Guaranteed
Obligations or any change therein or any other circumstances bearing
upon the risk of nonpayment or nonperformance of the Guaranteed
Obligations;
(xi) Until all obligations of Agent or any Lender to extend
credit to Borrower have terminated and all of the Guaranteed Obligations
have been fully paid, any right to revoke this Guaranty;
(xii) Any defense arising from an election for the application
of Section 1111(b)(2) of the Bankruptcy Code which applies to the
Guaranteed Obligations;
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(xiii) Any defense based upon any borrowing or grant of a
security interest under Section 364 of the Bankruptcy Code; and
(xiv) Any right it may have to a fair value hearing to determine
the size of a deficiency judgment following any foreclosure on any
security for the Guaranteed Obligations.
Without limiting the scope of any of the foregoing provisions of this Xxxxxxxxx
0, Xxxxxxxxx hereby further waives (A) all rights and defenses arising out of an
election of remedies by Agent or any Lender, even though that election of
remedies, such as a nonjudicial foreclosure with respect to security for a
Guaranteed Obligation, has destroyed Guarantor's rights of subrogation and
reimbursement against Borrower by the operation of Section 580d of the
California Code of Civil Procedure or otherwise, (B) all rights and defenses
Guarantor may have by reason of protection afforded to Borrower with respect to
the Guaranteed Obligations pursuant to the antideficiency or other laws of
California limiting or discharging the Guaranteed Obligations, including,
without limitation, Section 580a, 580b, 580d, or 726 of the California Code of
Civil Procedure, and (C) all other rights and defenses available to Guarantor by
reason of Sections 2787 to 2855, inclusive, Section 2899 or Section 3433 of the
California Civil Code or Section 3605 of the California Commercial Code.
(c) Financial Condition of Borrower, Etc. Guarantor is fully
aware of the financial condition and affairs of Borrower. Guarantor has
executed this Guaranty without reliance upon any representation,
warranty, statement or information concerning Borrower furnished to
Guarantor by Agent or any Lender and has, independently and without
reliance on Agent or any Lender, and based on such documents and
information as it has deemed appropriate, made its own appraisal of the
financial condition and affairs of Borrower and of other circumstances
affecting the risk of nonpayment or nonperformance of the Guaranteed
Obligations. Guarantor is in a position to obtain, and assumes full
responsibility for obtaining, any additional information about the
financial condition and affairs of Borrower and of other circumstances
affecting the risk of nonpayment or nonperformance of the Guaranteed
Obligations and will, independently and without reliance upon Agent or
any Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own appraisals and
decisions in taking or not taking action in connection with this
Guaranty.
4. SUBORDINATION. Guarantor hereby subordinates any and all debts,
liabilities and obligations owed to Guarantor by Borrower (the "Subordinated
Obligations") to the Guaranteed Obligations as provided in this Paragraph 4.
(a) Prohibited Payments, Etc. Except during the continuance of a
Default (including the commencement and continuation of any Debtor
Relief Proceeding relating to Borrower), Guarantor may receive regularly
scheduled payments from Borrower on account of Subordinated Obligations.
After the occurrence and during the continuance of any Default
(including the commencement and continuation of any Debtor Relief
Proceeding relating to Borrower), however, unless Agent otherwise
agrees, Guarantor
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shall not demand, accept or take any action to collect any payment on
account of the Subordinated Obligations.
(b) Prior Payment of Guaranteed Obligations. In any Debtor
Relief Proceeding relating to Borrower, Guarantor agrees that Agent and
Lenders shall be entitled to receive payment of all Guaranteed
Obligations (including any and all Disallowed Post-Commencement Interest
and Expenses) before Guarantor receives payment of any Subordinated
Obligations.
(c) Turn-Over. After the occurrence and during the continuance
of any Default (including the commencement and continuation of any
Debtor Relief Proceeding relating to Borrower), Guarantor shall, if
Agent so requests, collect, enforce and receive payments on account of
the Subordinated Obligations as trustee for Agent and Lenders and
deliver such payments to Agent on account of the Guaranteed Obligations
(including any and all Disallowed Post-Commencement Interest and
Expenses), together with any necessary endorsements or other instruments
of transfer, but without reducing or affecting in any manner the
liability of Guarantor under the other provisions of this Guaranty.
(d) Agent Authorization. After the occurrence and during the
continuance of any Default (including the commencement and continuation
of any Debtor Relief Proceeding relating to Borrower), Agent is
authorized and empowered (but without any obligation to so do), in its
discretion, (i) in the name of Guarantor to collect and enforce, and to
submit claims in respect of, Subordinated Obligations and to apply any
amounts received thereon to the Guaranteed Obligations (including any
and all Disallowed Post-Commencement Interest and Expenses), and (ii) to
require Guarantor (A) to collect and enforce, and to submit claims in
respect of, Subordinated Obligations and (B) to pay any amounts received
on such obligations to Agent for application to the Guaranteed
Obligations (including any and all Disallowed Post-Commencement Interest
and Expenses).
5. MISCELLANEOUS.
(a) Notices. Except as otherwise specified herein, all notices,
requests, demands, consents, instructions or other communications to or
upon Guarantor or Agent under this Agreement shall be given as provided
in Paragraph 8.01 of the Credit Agreement.
(b) Payments.
(i) Guarantor shall make all payments of the Guaranteed
Obligations to Agent, or its order, at the office of Agent and
at the times specified in the Credit Documents for the payment
of such Guaranteed Obligations. Guarantor shall make all other
payments hereunder at such office as Agent may designate. Each
payment shall be made in same day or immediately available funds
not later
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than 11:00 a.m.(local time of the office of Agent at which such
payment is to be made) on the date due.
(ii) Guarantor shall make all payments of the Guaranteed
Obligations hereunder in the currency in which such Guaranteed
Obligations are required to be paid by Borrower pursuant to the
Credit Documents and shall make all other payments hereunder in
Dollars; provided, however, that, if Agent shall request
Guarantor to pay any amount hereunder which would otherwise be
payable in another currency in the lawful currency of the United
States, Guarantor shall pay to Agent the Dollar Equivalent of
such amount.
(iii) If any sum due from Guarantor under this Guaranty
or any other Credit Document to which Guarantor is a party or
any order, judgment or award given or rendered in relation
hereto or thereto has to be converted from the currency (the
"first currency") in which the same is payable hereunder or
thereunder into another currency (the "second currency") for the
purpose of (A) making or filing a claim or proof against
Guarantor with any Governmental Authority, (B) obtaining an
order or judgment in any court or other tribunal or (C)
enforcing any order or judgment given or made in relation
hereto, Guarantor shall, to the fullest extent permitted by law,
indemnify and hold harmless each of the Persons to whom such sum
is due from and against any loss suffered as a result of any
discrepancy between (1) the rate of exchange used for such
purpose to convert the amounts in question from the first
currency into the second currency and (2) the rate or rates of
exchange at which such Person may, using reasonable efforts in
the ordinary course of business, purchase the first currency
with the second currency upon receipt of a sum paid to it in
satisfaction, in whole or in part, of any such order, judgment,
claim or proof. The foregoing indemnity shall constitute a
separate obligation of Guarantor distinct from its other
obligations hereunder and shall survive the giving or making of
any judgment or order in relation to all or any of such
obligations.
(iv) If any amounts required to be paid by Guarantor
under this Guaranty or any order, judgment or award given or
rendered in relation hereto remain unpaid after such amounts are
due, Guarantor shall pay interest on the aggregate, outstanding
balance of such amounts from the date due until those amounts
are paid in full at a per annum rate equal to:
(A) In the case of amounts payable in Dollars, the
Base Rate plus two percent (2.00%), such rate to change
from time to time as the Base Rate shall change.
(B) In the case of amounts payable in Yen, the
Overnight Rate plus three percent (3.00%), such rate to
change from time to time as the Overnight Rate shall
change.
(c) Expenses. Guarantor shall pay promptly upon receipt of an
invoice therefor, (i) all reasonable fees and
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expenses, including reasonable attorneys' fees and expenses, incurred by
Agent in connection with the preparation, execution and delivery of, and
the exercise of its duties under, this Guaranty and the preparation,
execution and delivery of amendments and waivers hereunder and (ii) all
reasonable fees and expenses, including reasonable attorneys' fees and
expenses, incurred by Agent and Lenders in connection with the
enforcement or attempted enforcement of this Guaranty or any of the
Guaranteed Obligations or in preserving any of Agent's or Lenders'
rights and remedies (including, without limitation, all such fees and
expenses incurred in connection with any "workout" or restructuring
affecting the Credit Documents or the Guaranteed Obligations or any
bankruptcy or similar proceeding involving Guarantor, Borrower or any of
their affiliates).
(d) Waivers; Amendments. This Guaranty may not be amended or
modified, nor may any of its terms be waived, except by written
instruments signed by Guarantor and Agent. Each waiver or consent under
any provision hereof shall be effective only in the specific instances
for the purpose for which given. No failure or delay on Agent's or any
Lender's part in exercising any right hereunder shall operate as a
waiver thereof or of any other right nor shall any single or partial
exercise of any such right preclude any other further exercise thereof
or of any other right.
(e) Successors and Assigns. This Guaranty shall be binding upon
and inure to the benefit of Agent, Lenders, Guarantor and their
respective successors and assigns; provided, however, that Guarantor may
not assign or transfer any of its rights and obligations under this
Guaranty without the prior written consent of Agent and Lenders, and,
provided, further, that Agent or any Lender may sell, assign and
delegate their respective rights and obligations hereunder only as
permitted by the Credit Agreement. All references in this Guaranty to
any Person shall be deemed to include all permitted successors and
assigns of such Person.
(f) Cumulative Rights, etc. The rights, powers and remedies of
Agent and Lenders under this Guaranty shall be in addition to all
rights, powers and remedies given to Agent and Lenders by virtue of any
applicable law, rule or regulation of any Governmental Authority, the
Credit Agreement, any other Credit Document or any other agreement, all
of which rights, powers, and remedies shall be cumulative and may be
exercised successively or concurrently without impairing Agent's or any
Lender's rights hereunder. Guarantor waives any right to require Agent
or any Lender to proceed against any Person or to exhaust any collateral
or to pursue any remedy in Agent's or such Lender's power.
(g) Setoff; Security Interest.
(i) In addition to any rights and remedies of Lenders
provided by law, each Lender shall have the right, with the
prior consent of Agent but without prior notice to or consent of
Guarantor, any such notice and consent being expressly waived by
Guarantor to the extent permitted by applicable law, upon the
occurrence and during the continuance of an Event of Default, to
set-off and apply against the obligations of Guarantor any
amount owing from such Lender to Guarantor. The aforesaid right
of set-off may be exercised by such Lender
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against Guarantor or against any trustee in bankruptcy, debtor
in possession, assignee for the benefit of creditors, receiver
or execution, judgment or attachment creditor of Guarantor or
against anyone else claiming through or against Guarantor or
such trustee in bankruptcy, debtor in possession, assignee for
the benefit of creditors, receiver, or execution, judgment or
attachment creditor, notwithstanding the fact that such right of
set-off may not have been exercised by such Lender at any prior
time. Each Lender agrees promptly to notify Guarantor after any
such set-off and application made by such Lender, provided that
the failure to give such notice shall not affect the validity of
such set-off and application.
(ii) As security for the obligations of Guarantor
hereunder, Guarantor hereby grants to Agent and each Lender, for
the benefit of all Lenders, a continuing security interest in
any and all deposit accounts or moneys of Guarantor now or
hereafter maintained with such Lender. Each Lender shall have
all of the rights of a secured party with respect to such
security interest.
(h) Payments Free of Taxes. All payments made by Guarantor under
this Guaranty shall be made free and clear of, and without deduction or
withholding for or on account of, all present and future income, stamp,
documentary and other taxes and duties, and all other levies, imposts,
charges, fees, deductions and withholdings, now or hereafter imposed,
levied, collected, withheld or assessed by any Governmental Authority
(except net income taxes and franchise taxes in lieu of net income taxes
imposed on Agent or any Lender by its jurisdiction of incorporation or
the jurisdiction in which its Applicable Lending Office is located) (all
such non-excluded taxes, duties, levies, imposts, duties, charges, fees,
deductions and withholdings being hereinafter called "Taxes"). If any
Taxes are required to be withheld from any amounts payable to Agent or
any Lender hereunder, the amounts so payable to Agent or such Lender
shall be increased to the extent necessary to yield to Agent or such
Lender (after payment of all Taxes) interest or any such other amounts
payable hereunder at the rates or in the amounts specified in this
Guaranty or the other Credit Documents, as applicable. Whenever any
Taxes are payable by Guarantor, as promptly as possible thereafter,
Guarantor shall send to Agent for its own account or for the account of
such Lender, as the case may be, a certified copy of an original
official receipt received by Guarantor showing payment thereof. If
Guarantor fails to pay any Taxes when due to the appropriate taxing
authority or fails to remit to Agent the required receipts or other
required documentary evidence, Guarantor shall indemnify Agent and
Lenders for any taxes (including interest or penalties) that may become
payable by Agent or any Lender as a result of any such failure. The
obligations of Guarantor under this Subparagraph 5(h) shall survive the
payment and performance of the Guaranteed Obligations and the
termination of this Guaranty. Nothing contained in this Subparagraph
5(h) shall require Agent or any Lender to make available any of its tax
returns (or any other information relating to its taxes which it deems
to be confidential).
(i) Partial Invalidity. If at any time any provision of this
Guaranty is or becomes illegal, invalid or unenforceable in any respect
under the law or any jurisdiction, neither the legality, validity or
enforceability of the remaining provisions of this Guaranty
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nor the legality, validity or enforceability of such provision under the
law of any other jurisdiction shall in any way be affected or impaired
thereby.
(j) Jury Trial. EACH OF GUARANTOR, LENDERS AND AGENT, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY
ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
GUARANTY.
(k) Governing Law, Consent to Jurisdiction, Etc.
(i) This Guaranty shall be governed by and construed in
accordance with the laws of the State of California without
reference to conflicts of law rules.
(ii) Guarantor irrevocably submits to the non-exclusive
jurisdiction of the courts of the State of California and the
courts of the United States of America located in the Northern
District of California and agrees that any legal action, suit or
proceeding arising out of or relating to this Guaranty or any of
the other Credit Documents may be brought against Guarantor in
any such courts. Final judgment against Guarantor in any such
action, suit or proceeding shall be conclusive and may be
enforced in any other jurisdiction by suit on the judgment, a
certified or exemplified copy of which shall be conclusive
evidence of the judgment, or in any other manner provided by
law. Nothing in this Subparagraph 5(k) shall affect the right of
Agent or any Lender to commence legal proceedings or otherwise
xxx Guarantor in any other appropriate jurisdiction, or
concurrently in more than one jurisdiction, or to serve process,
pleadings and other papers upon Guarantor in any manner
authorized by the laws of any such jurisdiction. Guarantor
agrees that process served either personally or by registered
mail shall, to the extent permitted by law, constitute adequate
service of process in any such suit. Without limiting the
foregoing, Guarantor hereby appoints, in the case of any such
action or proceeding brought in the courts of or in the State of
California, CT Corporation, with offices on the date hereof at
000 Xxxx Xxxxxxx Xxxxxx, Xxx Xxxxxxx, Xxxxxxxxxx 00000, to
receive for it and on its behalf, service of process in the
State of California with respect thereto, provided Guarantor may
appoint any other Person, reasonably acceptable to Agent, with
offices in the State of California to replace such agent for
service of process upon delivery to Agent of a reasonably
acceptable agreement of such new agent agreeing so to act.
Guarantor irrevocably waives to the fullest extent permitted by
applicable law (A) any objection which it may have now or in the
future to the laying of the venue of any such action, suit or
proceeding in any court referred to in the first sentence above;
(B) any claim that any such action, suit or proceeding has been
brought in an inconvenient forum; (C) its right of removal of
any matter commenced by any other party in the courts of the
State of California to any court of the United States of
America; (D) any immunity which it or its assets may have in
respect of its obligations under this Agreement or any other
Credit Document from any suit, execution, attachment (whether
provisional or final, in aid of execution, before judgment or
otherwise) or other legal process; and (E) any right it may have
to
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require the moving party in any suit, action or proceeding
brought in any of the courts referred to above arising out of or
in connection with this Agreement or any other Credit Document
to post security for the costs of Guarantor or to post a bond or
to take similar action.
IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed as
of the day and year first above written.
LSI LOGIC CORPORATION
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
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EXHIBIT H
ASSIGNMENT AGREEMENT
THIS ASSIGNMENT AGREEMENT, dated as of the Assignment Effective Date set
forth in Attachment 1 hereto, by and among:
(1) The bank designated in Attachment 1 hereto as the Assignor
Lender ("Assignor Lender"); and
(2) Each bank designated in Attachment 1 hereto as an Assignee
Lender (individually, an "Assignee Lender").
RECITALS
A. Assignor Lender is one of the Lenders which is a party to the Second
Amended and Restated Credit Agreement dated as of April 21, 2000, by and among
LSI Logic Corporation ("LSI"), LSI Logic Japan Semiconductor, Inc. ("LLJS"),
Assignor Lender and the other financial institutions parties thereto
(collectively, the "Lenders") and ABN AMRO Bank N.V., as agent for Lenders (in
such capacity, "Agent"). (Such credit agreement, as amended, supplemented or
otherwise modified in accordance with its terms from time to time to be referred
to herein as the "Credit Agreement").
B. Assignor Lender wishes to sell, and each Assignee Lender wishes to
purchase, all or a portion of Assignor Lender's rights under the Credit
Agreement pursuant to Subparagraph 8.05(c) of the Credit Agreement.
AGREEMENT
Now, therefore, the parties hereto hereby agree as follows:
1. Definitions. Except as otherwise defined in this Assignment
Agreement, all capitalized terms used herein and defined in the Credit Agreement
have the respective meanings given to those terms in the Credit Agreement.
2. Sale and Assignment. Subject to the terms and conditions of this
Assignment Agreement, Assignor Lender hereby agrees to sell, assign and delegate
to each Assignee Lender and each Assignee Lender hereby agrees to purchase,
accept and assume the rights, obligations and duties of a Lender under the
Credit Agreement and the other Credit Documents with Commitments or Loans equal
to the respective amounts set forth under the caption "Commitments or Loans
Assigned" opposite such Assignee Lender's name on Attachment 1 hereto. Such
sale, assignment and delegation shall become effective on the date designated in
Attachment 1 hereto (the "Assignment Effective Date"), which date shall be,
unless Agent shall otherwise consent, at least five (5) Business Days after the
date following the date counterparts of this Assignment Agreement are delivered
to Agent in accordance with Paragraph 3 hereof.
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3. Assignment Effective Notice. Upon (a) receipt by Agent of five (5)
counterparts of this Assignment Agreement (to each of which is attached a fully
completed Attachment 1), each of which has been executed by Assignor Lender and
each Assignee Lender (and, to the extent required by Subparagraph 8.05(c) of the
Credit Agreement, by Borrowers and Agent) and (b) payment to Agent of the
registration and processing fee specified in Subparagraph 8.05(e) of the Credit
Agreement by Assignor Lender, Agent will transmit to Borrowers, Assignor Lender
and each Assignee Lender an Assignment Effective Notice substantially in the
form of Attachment 2 hereto, fully completed (an "Assignment Effective Notice").
4. Assignment Effective Date. At or before 12:00 noon (Chicago time for
a U.S. Loan and Tokyo time for a Japanese Loan) on the Assignment Effective
Date, each Assignee Lender shall pay to Assignor Lender, in immediately
available or same day funds, an amount equal to the purchase price, as agreed
between Assignor Lender and such Assignee Lender (the "Purchase Price"), for
each portion of a Commitment or Loan purchased by such Assignee Lender
hereunder. Effective upon receipt by Assignor Lender of each Purchase Price
payable by each Assignee Lender, the sale, assignment and delegation to such
Assignee Lender of such Commitments or Loans as described in Paragraph 2 hereof
shall become effective.
5. Payments After the Assignment Effective Date. Assignor Lender and
each Assignee Lender hereby agree that Agent shall, and hereby authorize and
direct Agent to, allocate amounts payable under the Credit Agreement and the
other Credit Documents as follows:
(a) All principal payments made after the Assignment Effective
Date with respect to each portion of a Loan assigned to an Assignee
Lender pursuant to this Assignment Agreement shall be payable to such
Assignee Lender.
(b) All interest, fees and other amounts accrued after the
Assignment Effective Date with respect to each portion of a Loan
assigned to an Assignee Lender pursuant to this Assignment Agreement
shall be payable to such Assignee Lender.
Assignor Lender and each Assignee Lender shall make any separate arrangements
between themselves which they deem appropriate with respect to payments between
them of amounts paid under the Credit Documents on account of the Commitments or
Loans assigned to such Assignee Lender, and neither Agent nor Borrowers shall
have any responsibility to effect or carry out such separate arrangements.
6. Delivery of Notes. On or prior to the Assignment Effective Date,
Assignor Lender will deliver to Agent any Notes payable to Assignor Lender with
respect to its U.S. Loans. On or prior to the Assignment Effective Date, LSI
will deliver to Agent new Notes for each Assignee Lender and Assignor Lender, in
each case in principal amounts reflecting, in accordance with the Credit
Agreement, their respective U.S. Revolving Commitments or U.S. 364 Day
Commitments, as the case may be (as adjusted pursuant to this Assignment
Agreement). Promptly after the Assignment Effective Date, Agent will send to
each of Assignor Lender and the Assignee Lenders its new Notes and will send to
LSI the superseded Note payable to Assignor Lender, marked "Replaced."
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7. Delivery of Copies of Credit Documents. Concurrently with the
execution and delivery hereof, Assignor Lender will provide to each Assignee
Lender (if it is not already a Lender party to the Credit Agreement) conformed
copies of all documents delivered to Assignor Lender on or prior to the Closing
Date in satisfaction of the conditions precedent set forth in the Credit
Agreement.
8. Further Assurances. Each of the parties to this Assignment Agreement
agrees that at any time and from time to time upon the written request of any
other party, it will execute and deliver such further documents and do such
further acts and things as such other party may reasonably request in order to
effect the purposes of this Assignment Agreement.
9. Further Representations, Warranties and Covenants. Assignor Lender
and each Assignee Lender further represent and warrant to and covenant with each
other, Agent and Lenders as follows:
(a) Other than the representation and warranty that it is the
legal and beneficial owner of the interest being assigned hereby free
and clear of any adverse claim, Assignor Lender makes no representation
or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with
the Credit Agreement or the other Credit Documents or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of
the Credit Agreement or the other Credit Documents furnished or any
collateral or any security interest therein.
(b) Assignor Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of
Borrowers or any of their obligations under the Credit Agreement or any
other Credit Documents.
(c) Each Assignee Lender confirms that it has received a copy of
the Credit Agreement and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter
into this Assignment Agreement.
(d) Each Assignee Lender will, independently and without
reliance upon Agent, Assignor Lender or any other Lender and based upon
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action
under the Credit Agreement and the other Credit Documents.
(e) Each Assignee Lender appoints and authorizes Agent to take
such action as Agent on its behalf and to exercise such powers under the
Credit Agreement and the other Credit Documents as Agent is authorized
to exercise by the terms thereof, together with such powers as are
reasonably incidental thereto, all in accordance with Section VII of the
Credit Agreement.
(f) Each Assignee Lender agrees that it will perform in
accordance with their terms all of the obligations which by the terms of
the Credit Agreement and the other Credit Documents are required to be
performed by it as a Lender.
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(g) Attachment 1 hereto sets forth administrative information
with respect to each Assignee Lender.
10. Effect of this Assignment Agreement. On and after the Assignment
Effective Date, (a) each Assignee Lender shall be a Lender with Commitments or
Loans as set forth under the caption "Commitments or Loans After Assignment"
opposite such Assignee Lender's name on Attachment 1 hereto and shall have the
rights, duties and obligations of such a Lender under the Credit Agreement and
the other Credit Documents and (b) Assignor Lender shall be a Lender with
Commitments or Loans as set forth under the caption "Commitments or Loans After
Assignment" opposite Assignor Lender's name on Attachment 1 hereto and shall
have the rights, duties and obligations of such a Lender under the Credit
Agreement and the other Credit Documents, or, if the Commitments and Loans of
Assignor Lender have been reduced to $0, Assignor Lender shall cease to be a
Lender and shall have no further obligation to make any Loans.
11. Miscellaneous. This Assignment Agreement shall be governed by, and
construed in accordance with, the laws of the State of California. Paragraph
headings in this Assignment Agreement are for convenience of reference only and
are not part of the substance hereof.
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IN WITNESS WHEREOF, the parties hereto have caused this Assignment
Agreement to be executed by their respective duly authorized officers as of the
date set forth in Attachment 1 hereto.
______________________________, as
Assignor Lender
By:_______________________________
Name: _________________________
Title: ________________________
___________________________, as an
Assignee Lender
By:_______________________________
Name: _________________________
Title: ________________________
___________________________, as an
Assignee Lender
By:_______________________________
Name: _________________________
Title: ________________________
___________________________, as an
Assignee Lender
By:_______________________________
Name: _________________________
Title: ________________________
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CONSENTED TO AND ACKNOWLEDGED BY:
By:______________________________
Name:_________________________
Title:________________________
ABN AMRO BANK N.V.,
as Agent
By:______________________________
Name:_________________________
Title:________________________
ACCEPTED FOR RECORDATION
IN REGISTER:
ABN AMRO BANK N.V.,
as Agent
By:______________________________
Name:_________________________
Title:________________________
X-0
000
XXXXXXXXXX 1
TO ASSIGNMENT AGREEMENT
PART A
Commitments or Loans Commitments or Loans
Assigned After Assignment
------------------------------------------------ --------------------------------------------------
U.S.
U.S. Revolving 364 Day Japanese U.S. Revolving U.S. 364 Day Japanese
Commitment/ Commitment/ Commitment/ Commitment/ Commitment/ Commitment/
Loan Loan Loan Loan Loan Loan
-------------- ----------- ----------- -------------- ------------ -----------
Assignor Lender:
______________ $__________ $__________ (Yen)________ $____________ $___________ (Yen)__________
Assignee Lenders:
______________ $__________ $__________ (Yen)________ $____________ $___________ (Yen)__________
______________ $__________ $__________ (Yen)________ $____________ $___________ (Yen)__________
______________ $__________ $__________ (Yen)________ $____________ $___________ (Yen)__________
______________ $__________ $__________ (Yen)________ $____________ $___________ (Yen)__________
H(1)-1
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PART B
[ASSIGNEE PARTICIPANT]
Domestic Lending Office:
Euro-Dollar Lending Office:
Japanese Lending Office:
Address for Notices related to U.S. Borrowings:
Address for Notices related to the Japanese Borrowing:
Wiring Instructions for U.S. Borrowings:
Wiring Instructions for the Japanese Borrowing:
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PART C
ASSIGNMENT EFFECTIVE DATE ________, ____
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ATTACHMENT 2
TO ASSIGNMENT AGREEMENT
FORM OF
ASSIGNMENT EFFECTIVE NOTICE
Reference is made to the Second Amended and Restated Credit Agreement,
dated as of April 21, 2000, among LSI Logic Corporation ("LSI"), LSI Logic Japan
Semiconductor, Inc., the financial institutions parties thereto (the "Lenders")
and ABN AMRO Bank N.V., as agent for Lenders (in such capacity, "Agent"). Agent
hereby acknowledges receipt of five executed counterparts of a completed
Assignment Agreement, a copy of which is attached hereto. [Note: Attach copy of
Assignment Agreement.] Terms defined in such Assignment Agreement (whether
directly or indirectly by reference) are used herein as therein defined.
1. Pursuant to such Assignment Agreement, you are advised that the
Assignment Effective Date will be __________.
[2. Pursuant to such Assignment Agreement, Assignor Lender is required
to deliver to Agent on or before the Assignment Effective Date the Notes payable
to Assignor Lender.]
[3. Pursuant to such Assignment Agreement, LSI is required to deliver to
Agent on or before the Assignment Effective Date the following Notes, each dated
_________________ [Insert appropriate date]:
[Describe each new Note for Assignor Lender and each Assignee Lender as
to principal amount.]]
4. Pursuant to such Assignment Agreement, each Assignee Lender is
required to pay its Purchase Price to Assignor Lender at or before 12:00 noon [(
time)] on the Assignment Effective Date in immediately available funds.
Very truly yours,
ABN AMRO BANK N.V.,
as Agent
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
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EXHIBIT I
FORM OF OPINION OF WILSON, SONSINI, XXXXXXXX & XXXXXX
(a) LSI is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, is qualified to do business
and is in good standing in the State of California and has all requisite power
and authority to execute, deliver and perform its obligations under the Credit
Documents and the Symbios Acquisition Documents to which it is a party.
(b) The execution, delivery and performance by LSI of the Credit
Documents and the Symbios Acquisition Documents to which it is a party have been
duly authorized by all necessary corporate action of LSI and will not contravene
the terms of the certificate of incorporation and the bylaws of LSI.
(c) The execution, delivery and performance by each Borrower of the
Credit Documents and the Symbios Acquisition Documents to which it is a party
will not (i) to our knowledge, result in a breach of or constitute a default
under any material Contractual Obligation to which either Borrower is a party or
by which it or its properties may be bound or affected or (ii) violate any
provision of Governmental Rule binding on or affecting either Borrower.
(d) The Credit Documents and the Symbios Acquisition Documents
constitute legal, valid and binding obligations of each Borrower which is a
party thereto, enforceable against such Borrower in accordance with their
respective terms, except to the extent the enforceability thereof would be
subject to bankruptcy, insolvency, receivership or similar laws providing relief
from creditors, or principles of equity generally.
(e) No authorization, consent, approval, license, exemption of, or
filing or registration with, any Governmental Authority, or, to our knowledge,
approval or consent of any other Person, is required for the due execution,
delivery or performance by either Borrower of any of the Credit Documents or the
Symbios Acquisition Documents except those set forth on Schedule 4.01(d) which
have been obtained or made and are in full force and effect.
(f) To our knowledge, except as set forth in Schedule 4.01(g), there are
no actions, suits or proceedings pending or threatened against or affecting
either Borrower or any of its Significant Subsidiaries or the properties of such
Borrower or any of its Significant Subsidiaries before any Governmental
Authority or arbitrator which if determined adversely to such Borrower or any
such Significant Subsidiary would be reasonably likely to result in a Material
Adverse Effect.
(g) None of Borrowers and their Significant Subsidiaries is subject to
regulation under the Public Utility Holding Company Act of 1935, the Federal
Power Act, the Investment Company Act of 1940, the Interstate Commerce Act, any
state public utilities code or any other Governmental Rule limiting its ability
to incur Indebtedness.
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(h) The use of proceeds from the U.S. Borrowings to consummate the
Symbios Acquisition as provided in Subparagraph 2.01(h) of the Credit Agreement
will not violate Regulation U of the FRB.
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EXHIBIT J
FORM OF OPINION OF JAPANESE COUNSEL
(a) LLJS is a corporation duly organized, validly existing and in good
standing under the laws of Japan and has all requisite power and authority to
execute, deliver and perform its obligations under the Credit Documents to which
it is a party.
(b) The execution, delivery and performance by LLJS of the Credit
Documents to which it is a party have been duly authorized by all necessary
corporate action of LLJS and will not contravene the terms of the articles of
association of LLJS.
(c) The execution, delivery and performance by LLJS of the Credit
Documents to which it is a party will not (i) to our knowledge, result in a
breach of or constitute a default under any material Contractual Obligation to
which LLJS is a party or by which it or its properties may be bound or affected
or (ii) violate any provision of Governmental Rule binding on or affecting LLJS.
(d) The Credit Documents to which LLJS is a party constitute legal,
valid and binding obligations of LLJS, enforceable against LLJS in accordance
with their respective terms, except to the extent the enforceability thereof
would be subject to bankruptcy, insolvency, receivership or similar laws
providing relief from creditors, or principles of equity generally.
(e) No authorization, consent, approval, license, exemption of, or
filing or registration with, any Governmental Authority, or, to our knowledge,
approval or consent of any other Person, is required for the due execution,
delivery or performance by LLJS of any of the Credit Documents to which LLJS is
a party.
(f) To our knowledge, except as set forth in Schedule 4.01(g), there are
no actions, suits or proceedings pending or threatened against or affecting LLJS
or any of its Significant Subsidiaries or the properties of LLJS or any of its
Significant Subsidiaries before any Governmental Authority or arbitrator which
if determined adversely to LLJS or any such Significant Subsidiary would be
reasonably likely to result in a Material Adverse Effect.
(g) The execution and delivery by LLJS of the Credit Documents to which
it is a party are not subject to any stamp duty or other tax, and no deduction
or withholding on account of any taxes of any nature whatsoever is required to
be made from any payment by LLJS under the Credit Documents to which it is a
party.
(h) The obligations of LLJS under the Credit Documents to which it is a
party rank at least pari passu in order of priority with all its other unsecured
obligations.
(i) Neither LLJS nor any of its property has any right of immunity from
jurisdiction, attachment (before or after judgment) or judgment in the courts of
Japan in respect of any action or proceeding relating to the Credit Documents to
which LLJS is a party.
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(j) The courts of Japan will (i) give effect to the choice of the law of
the State of California as the governing law of the Credit Agreement and to
LLJS's submission to jurisdiction and the manner of service of process as
provided in the Credit Agreement and (ii) recognize and enforce any judgment on
or in respect of the Credit Agreement in Japan.
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EXHIBIT K
SUBORDINATION PROVISIONS
When used in Article 13 below, the following capitalized terms shall
have the meanings set forth below and a cross-reference to any other Article or
Section shall refer to an Article or Section comparable to the Article or
Section which was similarly cross-referenced in Article 13 of the 5 1/2%
Convertible Subordinated Notes Due 2001:
"Designated Senior Debt" means (i) Senior Debt under the Existing Credit
Agreement, and (ii) any other particular Senior Debt in which the instrument
creating or evidencing the same or the assumption or guarantee thereof (or
related agreements or documents to which the Company is a party) expressly
provides that such Senior Debt shall be "Designated Senior Debt" for purposes of
this Indenture (provided that such instrument, agreement or other document may
place limitations and conditions on the right of such Senior Debt to exercise
the rights of Designated Senior Debt).
"Existing Credit Agreement" means that Amended and Restated Credit
Agreement, dated as of September 22, 1998, among the Company, LSI Logic Japan
Semiconductor, Inc., the lenders from time to time parties thereto (the
"Existing Lenders"), and ABN AMRO Bank N.V., as agent for the Existing Lenders,
as such agreement may be amended, amended and restated, supplemented or
otherwise modified from time to time.
"Indebtedness" means, with respect to any Person, (i) all obligations,
contingent or otherwise, of such Person (a) for borrowed money (whether or not
the recourse of the lender is to the whole of the assets of such Person or only
to a portion thereof), (b) evidenced by a note, debenture, bond or written
instrument (including a purchase money obligation), (c) in respect of leases of
such Person required, in conformity with generally accepted accounting
principles, to be accounted for as capitalized lease obligations on the balance
sheet of such Person and all obligations and other liabilities (contingent or
otherwise) under any lease or related document (including a purchase agreement)
in connection with the lease of real property which provides that such person is
contractually obligated to purchase or cause a third party to purchase the
leased property and thereby guarantee a minimum residual value of the leased
property to the lessor and the obligations of such person under such lease or
related document to purchase or to cause a third party to purchase such leased
property; or (d) in respect of letters of credit (including reimbursement
obligations with respect thereto), local guarantees or bankers' acceptances;
(ii) all obligations of others of the type described in clause (i) above or
clause (iii), (iv) or (v) below assumed by or guaranteed in any manner by such
Person or in effect guaranteed by such Person through an agreement to purchase,
contingent or otherwise (and the obligations of such Person under any such
assumptions, guarantees or other such arrangements); (iii) all obligations
secured by a mortgage, pledge, lien, encumbrance, charge or adverse claim
affecting title or resulting in an encumbrance to which the property or assets
of such Person are subject, whether or not the obligation secured thereby shall
have been assumed by or shall otherwise be such Person's legal liability; (iv)
to the extent not otherwise included, all obligations of such Person under
interest rate and currency swap agreements, cap, floor and collar agreements,
spot and forward contracts and similar agreements and arrangements; and (v) all
obligations, contingent or otherwise, of such Person under or in respect of any
and all deferrals, renewals,
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extensions and refundings of, or amendments, modifications or supplements to,
any liability of the kind described in any of the preceding clauses (i), (ii),
(iii) or (iv).
"Senior Debt" means the principal of, premium, if any, and interest on,
rent payable under, and any other amounts due on or in connection with any and
all Indebtedness of the Company (including, without limitation, fees, costs,
expenses and any interest accruing after the filing of a petition initiating any
proceeding pursuant to any bankruptcy law, but only to the extent allowed or
permitted to the holder of such Indebtedness against the bankruptcy or other
insolvency estate of the Company in such proceeding), whether outstanding on the
date of the Indenture or thereafter created, incurred, assumed, guaranteed or in
effect guaranteed by the Company (including all deferrals, renewals, extensions
or refundings of, or amendments, modifications or supplements to the foregoing);
provided, however, that Senior Debt does not include (w) Indebtedness evidenced
by the Notes, (x) Indebtedness of the Company to any subsidiary of the Company,
a majority of the voting stock of which is owned by the Company except to the
extent such Indebtedness is pledged by such subsidiary as security for any
Senior Debt, (y) accounts payable of the Company to trade creditors arising in
the ordinary course of business, and (z) any particular Indebtedness in which
the instrument creating or evidencing the same or the assumption or guarantee
thereof expressly provides that such Indebtedness shall not be senior in right
of payment to, or is pari passu with, or is subordinated or junior to, the
Notes.
ARTICLE 13
SUBORDINATION
Section 13.1 Notes Subordinated to Senior Debt.
The Company covenants and agrees, and each Holder of Notes, by his
acceptance thereof, likewise covenants and agrees, that the indebtedness
represented by the Notes and the payment of the principal of (and premium, if
any) and interest on each and all of the Notes is hereby expressly subordinate
and junior, to the extent and in the manner hereinafter set forth, in right of
payment to the prior payment in full of all Senior Debt.
(a) In the event of any distribution of assets of the Company upon any
dissolution, winding up, liquidation or reorganization of the Company, whether
in bankruptcy, insolvency, reorganization or receivership proceedings or upon an
assignment for the benefit of creditors or any other marshalling of the assets
and liabilities of the Company or otherwise, then the holders of all Senior Debt
shall first be entitled to receive payment of the full amount due thereon in
respect of principal (and premium, if any) and interest, or provision shall be
made for such amount in cash or other consideration satisfactory to the Existing
Lenders, before the Holders of any of the Notes are entitled to receive any
payment or distribution of any character, whether in cash, securities or other
property, on account of the principal of (or premium, if any) or interest on the
indebtedness evidenced by the Notes.
For purposes of this Article 13, the words, "cash, securities or other
property" shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment,
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the payment of which is subordinated at least to the extent provided in this
Article 13 with respect to the Notes to the payment of all Senior Debt which may
at the time be outstanding; provided that (i) the Senior Debt is assumed by the
new corporation, if any, resulting from any reorganization or readjustment, and
(ii) the rights of the holders of Senior Debt (other than leases which are not
assumed by the Company or the new corporation, as the case may be) are not,
without the consent of such holders, altered by such reorganization or
readjustment. The consolidation of the Company with, or the merger of the
Company into, another Person or the liquidation or dissolution of the Company
following the conveyance or transfer of its property as an entirety, or
substantially as an entirety, to another Person upon the terms and conditions
provided for in Article 7 [merger, consolidation covenant of Indenture] shall
not be deemed a dissolution, winding-up, liquidation or reorganization for the
purposes of this Section 13.1(a) if such other corporation shall, as a part of
such consolidation, merger, conveyance or transfer, comply with the conditions
stated in Article 7 [merger, consolidation covenant].
(b) In the event of any default in payment of the principal of or
premium, if any, or interest on or rent under, or any other payment obligation
under any Senior Debt beyond any applicable grace period with respect thereto,
then, unless and until all such payments due in respect of such Senior Debt have
been paid in full in cash or other consideration satisfactory to the Existing
Lenders or such default shall have been cured or waived or shall have ceased to
exist, no payment shall be made by the Company with respect to the principal of,
premium, if any, or interest on the Notes or to acquire any of the Notes
(including any repurchase pursuant to the repurchase right of a Holder upon a
Fundamental Change).
(c) In the event (i) any event of default with respect to any Designated
Senior Debt shall have occurred and be continuing permitting the holders of such
Designated Senior Debt (or a trustee or other representative on behalf of the
holders thereof) to declare such Designated Senior Debt due and payable prior to
the date on which it would otherwise have become due and payable, upon written
notice thereof to the Company and the Trustee by any holders of such Designated
Senior Debt (or a trustee or other representative on behalf of the holders
thereof) (the "Default Notice"), unless and until such event of default shall
have been cured or waived or shall have ceased to exist and such acceleration
shall have been rescinded or annulled, or (ii) any judicial proceeding shall be
pending with respect to any such default in payment or event of default, then no
payment shall be made by the Company, directly or indirectly, with respect to
principal of, premium, if any, or interest on the Notes (including any
repurchase pursuant to the exercise of the repurchase right of a Holder upon a
Fundamental Change) provided, however, that clause (i) of this paragraph shall
not prevent the making of any such payment by the Company with respect to the
Notes for more than 179 days after a Default Notice shall have been received by
the Trustee unless the Designated Senior Debt in respect of which such event of
default exists has been declared due and payable in its entirety in which case
no such payment may be made until such acceleration has been rescinded or
annulled or such Designated Senior Debt has been paid in full. Notwithstanding
the foregoing, no event of default which existed or was continuing on the date
of any Default Notice shall be made the basis for the giving of a second Default
Notice; provided, further, however, that no subsequent Default Notice shall be
effective
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for purposes of this Section 13.1(c) unless and until at least 365 days shall
have elapsed since the initial effectiveness of the immediately prior Default
Notice.
(d) If the maturity of the Notes is accelerated, no payment may be made
on the Notes until all amounts due or to become due on Senior Debt has been paid
in full in cash or other consideration satisfactory to the Existing Lenders or
until such acceleration has been cured or waived.
(e) In the event that, notwithstanding the foregoing provisions of
Sections 13.1 (a), (b), (c) and (d), any payment on account of principal of or
interest on the Notes shall be made by or on behalf of the Company and received
by the Trustee, by any Holder or by any Paying Agent (or, if the Company is
acting as its own Paying Agent, money for any such payment shall be segregated
and held in trust), at a time when such payment is not permitted by any of such
provisions, then, unless and until all Senior Debt (or Designated Senior Debt,
in the case of Section 13.1(c)) is paid in full in cash or other consideration
satisfactory to the Existing Lenders, or such payment is otherwise permitted to
be made by the provisions of each of Sections 13.1(a), 13.1(b), 13.1(c) and
13.1(d) (subject, in each case, to the provisions of Section 13.7), such payment
on account of principal of or interest on the Notes shall be held in trust for
the benefit of, and shall be immediately paid over to, the holders of Senior
Debt (or Designated Senior Debt, in the case of Section 13.1(c)) or their
representative or representatives or the trustee or trustees under any indenture
under which any instruments evidencing any of the Senior Debt (or Designated
Senior Debt, in the case of Section 13.1(c)) may have been issued, as their
interests may appear.
Regardless of anything to the contrary herein, nothing shall prevent (a)
any payment by the Company or the Trustee to Holders of amounts in connection
with a redemption of Notes if (i) notice of such redemption has been given
pursuant to Section 11.5 prior to the receipt by the Trustee of written notice
as aforesaid, and (ii) such notice of redemption is given not earlier than 75
days before the Redemption Date, or (b) any payment by the Trustee to the
Holders of amounts deposited with it pursuant to Sections 4.1 and 4.2.
Section 13.2 Subrogation.
Subject to the payment in full of all Senior Debt to which the
indebtedness evidenced by the Notes is in the circumstances subordinated as
provided in Section 13.1, the Holders of the Notes (together with the holders of
any other indebtedness of the Company which is subordinate in right of payment
to the payment in full of all Senior Debt, which is not subordinate in right of
payment to the Notes and which by its terms grants such right of subrogation to
the holders thereof) shall be subrogated to the rights of the holders of such
Senior Debt to receive payments or distributions of cash, property or securities
of the Company applicable to such Senior Debt until all amounts owing on the
Notes shall be paid in full, and, as between the Company, its creditors other
than holders of such Senior Debt, and the Holders of the Notes, no such payment
or distribution made to the holders of Senior Debt by virtue of this Article
which otherwise would have been made to the Holders of the Notes shall be deemed
to be a payment by the Company on account of such Senior Debt, it being
understood that the provisions of this Article
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are and are intended solely for the purpose of defining the relative rights of
the Holders of the Notes, on the one hand, and the holders of Senior Debt, on
the other hand.
Section 13.3 Obligation of Company Unconditional.
Nothing contained in this Article or elsewhere in this Indenture or in
the Notes is intended to or shall impair, as between the Company, its creditors
other than the holders of Senior Debt, and the Holders of the Notes, the
obligation of the Company, which is absolute and unconditional, to pay to the
Holders of the Notes the principal of (and premium, if any) and interest on the
Notes as and when the same shall become due and payable in accordance with their
terms, or is intended to or shall affect the relative rights of the Holders of
the Notes and creditors of the Company other than the holders of Senior Debt,
nor shall anything herein or therein prevent the Trustee or the Holder of any
Note from exercising all remedies otherwise permitted by applicable law upon
default under this Indenture, subject to the rights, if any, under this Article
of the holders of Senior Debt in respect of cash, property or securities of the
Company received upon the exercise of any such remedy.
Section 13.4 Modification of Terms of Senior Debt.
Any renewal or extension of the time of payment of any Senior Debt or
the exercise by the holders of Senior Debt of any of their rights under any
instrument creating or evidencing Senior Debt, including without limitation the
waiver of default thereunder, may be made or done all without notice to or
assent from the Holders of the Notes or the Trustee.
No compromise, alteration, amendment, modification, extension, renewal
or other change of, or waiver, consent or other action in respect of, any
liability or obligation under or in respect of, or of any of the terms,
covenants or conditions of any indenture or other instrument under which any
Senior Debt is outstanding or of such Senior Debt, whether or not such release
is in accordance with the provisions of any applicable document, shall in any
way alter or affect any of the provisions of this Article or of the Notes
relating to the subordination thereof.
Section 13.5 Payments on Notes Permitted.
Nothing contained in this Article or elsewhere in this Indenture, or in
any of the Notes, shall affect the obligation of the Company to make, or prevent
the Company from making, payments of the principal of, or premium, if any, or
interest on the Notes in accordance with the provisions hereof and thereof, or
shall prevent the Trustee or any Paying Agent from applying any moneys deposited
with it hereunder to the payment of the principal of, or premium, if any, or
interest on the Notes, in each case except as otherwise provided in this
Article.
Section 13.6 Effectuation of Subordination by Trustee.
Each Holder of Notes, by his acceptance thereof, authorizes and directs
the Trustee in his behalf to take such action as may be necessary or appropriate
to effectuate the subordination provided in this Article and appoints the
Trustee his attorney-in-fact for any and all such purposes.
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Upon any payment or distribution of assets of the Company referred to in
this Article, the Trustee and the Holders of the Notes shall be entitled to rely
upon any order or decree made by any court of competent jurisdiction in which
any such dissolution, winding up, liquidation or reorganization proceeding
affecting the affairs of the Company is pending or upon a certificate of the
trustee in bankruptcy, receiver, assignee for the benefit of creditors,
liquidating trustee or agent or other Person making any payment or distribution,
delivered to the Trustee or to the Holders of the Notes, for the purpose of
ascertaining the Persons entitled to participate in such payment or
distribution, and as to other facts pertinent to the right of such Persons under
this Article, and if such evidence is not furnished, the Trustee may defer any
payment to such Persons pending judicial determination as to the right of such
Persons to receive such payment.
Section 13.7 Knowledge of Trustee.
Notwithstanding the provisions of this Article or any other provisions
of this Indenture, the Trustee shall not be charged with knowledge of the
existence of any Senior Debt, of any default in payment of principal, premium
(if any) or interest on any Senior Debt, or of any facts which would prohibit
the making of any payment of moneys to or by the Trustee, or the taking of any
other action by the Trustee, unless and until a Responsible Officer of the
Trustee having responsibility for the administration of the trust established by
this Indenture shall have received written notice thereof from the Company, any
Holder of Notes, any Paying or Conversion Agent of the Company or the holder or
representative of any class of Senior Debt, and, prior to the receipt of any
such written notice, the Trustee shall be entitled in all respects to assume
that no such default or facts exist; provided, however, that unless on the third
Business Day prior to the date upon which by the terms hereof any such moneys
may become payable for any purpose (other than a payment under Article 11) the
Trustee shall have received the notice provided for in this Section 13.7, then,
anything herein contained to the contrary notwithstanding, the Trustee shall
have full power and authority to receive such moneys and apply the same to the
purpose for which they were received, and shall not be affected by any notice to
the contrary which may be received by it on or after such date.
Section 13.8 Trustee's Relation to Senior Debt.
The Trustee shall be entitled to all the rights set forth in this
Article with respect to any Senior Debt at the time held by it, to the same
extent as any other holder of Senior Debt and nothing in this Indenture shall
deprive the Trustee of any of its rights as such holder.
Nothing in this Article shall apply to claims of or payments to the
Trustee under or pursuant to Section 6.7.
With respect to the holders of Senior Debt, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article, and no implied covenants or obligations
with respect to the holders of Senior Debt shall be read into this Indenture
against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty
to the holders of Senior Debt and the Trustee shall not be liable to any holder
of Senior Debt if it shall pay over or deliver to Holders, the Company or any
other Person moneys or assets to which any holder of Senior Debt shall be
entitled by virtue of this Article or otherwise.
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Section 13.9 Rights of Holders of Senior Debt Not Impaired.
No right of any present or future holder of any Senior Debt to enforce
the subordination herein shall at any time or in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any
noncompliance by the Company with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof any such holder may have or be
otherwise charged with.
Section 13.10 Certain Conversions Not Deemed Payment.
For the purposes of this Article 13 only, (1) the issuance and delivery
of junior securities upon conversion of Notes in accordance with Article 12
[conversion] shall not be deemed to constitute a payment or distribution on
account of the principal of, premium, if any, or interest (including Liquidated
Damages, if any) on Notes or on account of the purchase or other acquisition of
Notes, and (2) the payment, issuance or delivery of cash (except in satisfaction
of fractional shares pursuant to Section 12.3), property or securities (other
than junior securities) upon conversion of a Note shall be deemed to constitute
payment on account of the principal of, premium, if any, or interest (including
Liquidated Damages, if any) on such Note. For the purposes of this Section
13.10, the term "junior securities" means (a) shares of any stock of any class
of the Company or (b) securities of the Company that are subordinated in right
of payment to all Senior Debt to substantially the same extent as, or to a
greater extent than, the Notes are so subordinated as provided in this Article.
Nothing contained in this Article 13 or elsewhere in this Indenture or in the
Notes is intended to or shall impair, as among the Company, its creditors (other
than holders of Senior Debt) and the Holders, the right, which is absolute and
unconditional, of the holder of any Note to convert such note in accordance with
Article 12 [conversion].
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================================================================================
SECOND AMENDED AND RESTATED
CREDIT AGREEMENT
AMONG
LSI LOGIC CORPORATION
AND
LSI LOGIC JAPAN SEMICONDUCTOR, INC.
AND
THE LENDERS NAMED HEREIN
AND
ABN AMRO BANK N.V.,
AS AGENT FOR LENDERS
APRIL 21, 2000
================================================================================
162
TABLE OF CONTENTS
PAGE
----
SECTION I. INTERPRETATION...........................................................................2
1.01. Definitions...................................................................................2
1.02. GAAP.........................................................................................22
1.03. Headings.....................................................................................23
1.04. Plural Terms.................................................................................23
1.05. Governing Law................................................................................23
1.06. English Language.............................................................................23
1.07. Construction.................................................................................23
1.08. Entire Agreement.............................................................................23
1.09. Calculation of Interest and Fees.............................................................23
1.10. References...................................................................................24
1.11. Other Interpretive Provisions................................................................24
SECTION II. CREDIT FACILITIES.......................................................................24
2.01. U.S. Borrowings..............................................................................24
2.02. Japanese Borrowing...........................................................................28
2.03. Amount Limitations, Commitment Reductions, Etc...............................................30
2.04. Fees.........................................................................................32
2.05. Prepayments..................................................................................33
2.06. Other Payment Terms..........................................................................34
2.07. Loan Accounts; Notes.........................................................................36
2.08. Loan Funding.................................................................................37
2.09. Pro Rata Treatment...........................................................................38
2.10. Change of Circumstances......................................................................39
2.11. Taxes on Payments............................................................................42
2.12. Funding Loss Indemnification.................................................................43
2.13. Security.....................................................................................44
2.14. Replacement of Lenders.......................................................................44
SECTION III. CONDITIONS..............................................................................45
3.01. Initial Closing Date Conditions..............................................................45
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TABLE OF CONTENTS
(CONTINUED)
PAGE
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3.02. Second Closing Date Conditions Precedent.....................................................45
3.03. Conditions Precedent to Each Credit Event....................................................45
3.04. Covenant to Deliver..........................................................................46
SECTION IV. REPRESENTATIONS AND WARRANTIES..........................................................46
4.01. Borrowers' Representations and Warranties....................................................46
4.02. Reaffirmation................................................................................50
SECTION V. COVENANTS...............................................................................50
5.01. Affirmative Covenants........................................................................50
5.02. Negative Covenants...........................................................................56
5.03. Financial Covenants..........................................................................59
SECTION VI. DEFAULT.................................................................................60
6.01. Events of Default............................................................................60
6.02. Remedies.....................................................................................63
6.03. Lender Rate Contract Remedies................................................................63
SECTION VII. THE AGENT AND RELATIONS AMONG LENDERS...................................................64
7.01. Appointment, Powers and Immunities...........................................................64
7.02. Reliance by Agent............................................................................64
7.03. Defaults.....................................................................................64
7.04. Indemnification..............................................................................65
7.05. Non-Reliance.................................................................................65
7.06. Resignation or Removal of Agent..............................................................65
7.07. Agent in its Individual Capacity.............................................................66
SECTION VIII. MISCELLANEOUS...........................................................................66
8.01. Notices......................................................................................66
8.02. Expenses.....................................................................................68
8.03. Indemnification..............................................................................68
8.04. Waivers; Amendments..........................................................................68
8.05. Successors and Assigns.......................................................................70
8.06. Setoff; Security Interest....................................................................74
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TABLE OF CONTENTS
(CONTINUED)
PAGE
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8.07. No Third Party Rights........................................................................74
8.08. Partial Invalidity...........................................................................74
8.09. Jury Trial...................................................................................74
8.10. Counterparts.................................................................................74
8.11. Borrowers' Liabilities.......................................................................75
8.12. Confidentiality..............................................................................75
8.13. Consent to Jurisdiction......................................................................75
8.14. Effect on Existing Credit Agreement..........................................................76
SCHEDULES
I Lenders
II Pricing Grid
3.01 Initial Closing Date Conditions Precedent
4.01(d) Governmental Consents
4.01(g) Litigation
4.01(i) Environmental Compliance
4.01(l) Significant Subsidiaries
5.02(a) Liens
EXHIBITS
A Notice of U.S. Borrowing (2.01(c))
B Notice of U.S. Borrowing Conversion (2.01(e))
C Notice of U.S. Borrowing Interest Period Selection (2.01(f))
D Notice of Japanese Borrowing (2.02(b))
E Notice of Japanese Borrowing Interest Period Selection (2.02(d))
F Note (2.07(b))
G LSI Guaranty (2.13(a))
H Assignment Agreement (8.05(c))
I Form of Opinion of Wilson, Sonsini, Xxxxxxxx & Xxxxxx
J Form of Opinion of Japanese Counsel for LLJS
K Subordination Provisions (definition of "Subordinated Debt")
iii
