ANNEX I
FORT XXXXX CORPORATION
$2,500,000,000
CREDIT AGREEMENT
dated as of
August 13, 1997
amended and restated as of
October 31, 1997
CHASE SECURITIES INC.
BT SECURITIES CORPORATION
BANCAMERICA SECURITIES, INC.
NATIONSBANC CAPITAL MARKETS, INC.
AS ARRANGERS
THE CHASE MANHATTAN BANK
AS ADMINISTRATIVE AGENT
E-8
TABLE OF CONTENTS
Page
ARTICLE I
Definitions
SECTION 1.01 Defined Terms ........................................... 1
SECTION 1.02 Classification of Loans and Borrowings................... 17
SECTION 1.03 Terms Generally ......................................... 17
SECTION 1.04 Accounting Terms; GAAP .................................. 17
SECTION 1.05 Exchange Rates .......................................... 18
SECTION 1.06 Several Obligations ..................................... 18
ARTICLE II
The Credits
SECTION 2.01 Commitments................................................ 18
SECTION 2.02. Loans and Borrowings ...................................... 19
SECTION 2.03. Requests for Revolving Borrowings ......................... 19
SECTION 2.04. Competitive Bid Procedure ................................. 20
SECTION 2.05. Funding of Borrowings ..................................... 22
SECTION 2.06. Interest Elections ........................................ 23
SECTION 2.07. Termination and Reduction of Commitments .................. 24
SECTION 2.08. Repayment of Loans; Evidence of Debt ...................... 25
SECTION 2.09. Prepayment of Loans ....................................... 25
SECTION 2.10. Fees ...................................................... 26
SECTION 2.11. Interest .................................................. 27
SECTION 2.12. Alternate Rate of Interest ................................ 28
SECTION 2.13. Increased Costs; Illegality ............................... 28
SECTION 2.14. Break Funding Payments .................................... 30
SECTION 2.15. Taxes ..................................................... 31
SECTION 2.16. Payments Generally; Pro Rata Treatment; Sharing of Set-offs 32
SECTION 2.17. Mitigation Obligations; Replacement of Lenders ............ 34
SECTION 2.18 Borrowing Subsidiaries ..................................... 34
SECTION 2.19. Letters of Credit ......................................... 35
ARTICLE III
Representations and Warranties
SECTION 3.01 Organization; Powers ..................................... 38
SECTION 3.02 Authorization; Enforceability ............................ 38
SECTION 3.03 Governmental Approvals; No Conflicts ..................... 38
SECTION 3.04 Financial Condition; No Material Adverse Change........... 39
SECTION 3.05 Properties ............................................... 39
SECTION 3.06 Litigation and Environmental Matters ..................... 40
SECTION 3.07 Compliance with Laws and Agreements ...................... 40
SECTION 3.08 Investment and Holding Company Status .................... 40
SECTION 3.09 Taxes .................................................... 40
SECTION 3.10 ERISA .................................................... 40
SECTION 3.11 Disclosure ............................................... 40
SECTION 3.12 Federal Reserve Regulations .............................. 41
SECTION 3.13 Designated Senior Indebtedness ........................... 41
ARTICLE IV
Conditions
SECTION 4.01 Effective Date ........................................... 41
SECTION 4.02 Each Credit Event ........................................ 42
SECTION 4.03 Each Borrowing Subsidiary Credit Event.................... 43
ARTICLE V
Affirmative Covenants
SECTION 5.01 Financial Statements and Other Information............... 43
SECTION 5.02 Notices of Material Events............................... 44
SECTION 5.03 Existence; Conduct of Business........................... 45
SECTION 5.04 Payment of Obligations................................... 45
SECTION 5.05 Maintenance of Properties; Insurance..................... 45
SECTION 5.06 Books and Records; Inspection Rights..................... 45
SECTION 5.07 Compliance with Laws..................................... 45
SECTION 5.08 Use of Proceeds and Letters of Credit.................... 45
ARTICLE VI
Negative Covenants
SECTION 6.01 Indebtedness and Preferred Stock of Subsidiaries.......... 46
SECTION 6.02 Liens .................................................... 46
SECTION 6.03 Fundamental Changes ...................................... 47
SECTION 6.04 Transactions with Affiliates ............................. 48
SECTION 6.05 Sale and Lease-Back Transactions ......................... 48
SECTION 6.06 Restrictive Agreements ................................... 48
SECTION 6.07 Borrowing Subsidiaries ................................... 48
SECTION 6.08 Leverage Ratio ........................................... 48
ARTICLE VII
Events of Default..................................................... 49
ARTICLE VIII
The Administrative Agent.............................................. 51
ARTICLE IX
Guarantee............................................................. 52
ARTICLE X
Miscellaneous
SECTION 10.01 Notices................................................... 54
SECTION 10.02 Waivers; Amendments....................................... 54
SECTION 10.03 Expenses; Indemnity; Damage Waiver........................ 55
SECTION 10.04 Successors and Assigns.................................... 56
SECTION 10.05 Survival.................................................. 58
SECTION 10.06 Counterparts; Integration; Effectiveness.................. 58
SECTION 10.07 Severability.............................................. 59
SECTION 10.08 Right of Setoff........................................... 59
SECTION 10.09 Governing Law; Jurisdiction; Consent to Service of Process 59
SECTION 10.10 WAIVER OF JURY TRIAL...................................... 59
SECTION 10.11 Headings.................................................. 60
SECTION 10.12 Confidentiality........................................... 60
SECTION 10.13 Interest Rate Limitation.................................. 60
SECTION 10.14 Conversion of Currencies.................................. 60
SCHEDULES:
Schedule 1.01(a) -- Alternate Procedures
Schedule 1.01(b) -- Existing Credit Agreements
Schedule 1.01(c) -- Existing Receivables Program Documents
Schedule 2.01 -- U.S. Lenders, U.S. Commitments, Multicurrency
Lenders and Multicurrency Commitments
Schedule 3.06 -- Disclosed Matters
Schedule 6.01(a) -- Existing Indebtedness and Preferred Stock
Schedule 6.02 -- Existing Liens
Schedule 6.06 -- Restrictive Agreements
EXHIBITS:
Exhibit A -- Form of Assignment and Acceptance
Exhibit B-1 -- Form of Opinion of XxXxxxx Xxxxx Battle & Xxxxxx LLP
Exhibit B-2 -- Form of Opinion of Wachtell, Lipton, Xxxxx & Xxxx
Exhibit B-3 -- Form of Opinion of Xxxxxx X. Xxxx, Xx.
Exhibit B-4 -- Form of Opinion of Shearman & Sterling
Exhibit B-5 -- Form of Opinion of XxXxxxx Xxxxx Battle & Xxxxxx LLP
Exhibit B-6 -- Form of Opinion of De Brauw Blackstone Westbroek
Exhibit C -- Form of Opinion of Borrowing Subsidiary's
Counsel
Exhibit D -- Form of Borrowing Subsidiary Agreement
Exhibit E -- Form of Borrowing Subsidiary Termination
CREDIT AGREEMENT dated as of August 13,
1997, as amended and restated as of October 31, 1997,
among FORT XXXXX CORPORATION, the BORROWING
SUBSIDIARIES party hereto, the LENDERS party hereto,
and THE CHASE MANHATTAN BANK, as Administrative
Agent.
The parties hereto agree as follows:
ARTICLE I
Definitions
SECTION 1.01. Defined Terms. As used in this Agreement, the following
terms have the meanings specified below
"ABR", when used in reference to any Loan or Borrowing, means that such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Alternate Base Rate.
"Administrative Agent" means The Chase Manhattan Bank, in its capacity
as administrative agent for the Lenders hereunder.
"Administrative Questionnaire" means an Administrative Questionnaire in
a form supplied by the Administrative Agent, a copy of which shall be delivered
to the Company.
"Affiliate" means, with respect to a specified Person, another Person
that directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.
"Agreement Currency" has the meaning assigned to such term in Section
10.14.
"Alternate Base Rate" means, for any day, a rate per annum equal to the
greatest of (a) the Prime Rate in effect on such day, (b) the Base CD Rate in
effect on such day plus 1% and (c) the Federal Funds Effective Rate in effect on
such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change
in the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate shall be
effective from and including the effective date of such change in the Prime
Rate, the Base CD Rate or the Federal Funds Effective Rate, respectively.
"Alternate Procedures" means, with respect to the Multicurrency Loans
in a specified Committed Currency, any alternate notice, funding or payment
procedures approved by the Administrative Agent, the applicable Borrower and the
Multicurrency Lenders and set forth in Schedule 1.01(a) or in one or more
supplements thereto.
"Applicable Percentage" of any Lender means (a) in the case of any
determination in respect of the U.S. Commitments or any extension of credit
thereunder, the percentage of the total U.S. Commitments represented by such
Lender's U.S. Commitment, (b) in the case of any determination in respect of the
Multicurrency Commitments or any extension of credit thereunder, the percentage
of the total Multicurrency Commitments represented by such Lender's
Multicurrency Commitment, and (c) in all other cases, the percentage of the
total Commitments represented by such Lender's Commitment. If the Commitments
have terminated or expired, the Applicable Percentages shall be determined based
upon the Commitments most recently in effect, giving effect to any assignments.
"Applicable Rate" means, for any day, with respect to any Eurocurrency
Revolving Loan or with respect to the facility fees payable hereunder, as the
case may be, the applicable rate per annum set forth below under the caption
"Eurocurrency Spread" or "Facility Fee Rate", as the case may be, based upon the
ratings by S&P and Xxxxx'x, respectively, applicable on such date to the Index
Debt:
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Index Debt Ratings: Eurocurrency Facility Fee
Spread Rate
---------------------------------------------------- -------------------------- ===========================
---------------------------------------------------- -------------------------- ===========================
Category 1
A-or higher by S&P .140% .06%
A3 or higher by Xxxxx'x
---------------------------------------------------- -------------------------- ===========================
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Category 2
BBB+ by S&P .170% .08%
Baa1 by Xxxxx'x
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Category 3
BBB by S&P .185% .09%
Baa2 by Xxxxx'x
---------------------------------------------------- -------------------------- ===========================
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Category 4
BBB- by S&P .225% .10%
Baa3 by Xxxxx'x
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Category 5
BB+ by S&P .350% .15%
Ba1 by Xxxxx'x
---------------------------------------------------- -------------------------- ===========================
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Category 6
BB or lower by S&P .500% .25%
Ba2 or lower by Xxxxx'x
---------------------------------------------------- -------------------------- ===========================
For purposes of the foregoing, (i) if either Xxxxx'x or S&P shall not
have in effect a rating for the Index Debt (other than by reason of the
circumstances referred to in the penultimate sentence of this definition), then
such rating agency shall be deemed to have established a rating in Category 6;
(ii) if the ratings established or deemed to have been established by Xxxxx'x
and S&P for the Index Debt shall fall within different Categories, then (x) if
such ratings shall differ by only one Category, the Applicable Rate shall be
based on the higher of the two ratings and (y) if such ratings shall differ by
two or more Categories, the Applicable Rate shall be determined by reference to
the Category next above that of the lower of the two ratings (with one Category
being above another if the ratings it contains are superior to the ratings in
such other Category); and (iii) if the ratings established or deemed to have
been established by Xxxxx'x and S&P for the Index Debt shall be changed (other
than as a result of a change in the rating system of Xxxxx'x or S&P), such
change shall be effective as of the date on which it is first announced by the
applicable rating agency. Each change in the Applicable Rate shall apply during
the period commencing on the effective date of such change and ending on the
date immediately preceding the effective date of the next such change. If the
rating system of Xxxxx'x or S&P shall change, or if either such rating agency
shall cease to be in the business of rating corporate debt obligations or shall
terminate its rating for reasons outside the control of the Company, the Company
and the Lenders shall negotiate in good faith to amend this definition to
reflect such changed rating system or the absence of ratings from such rating
agency and, pending the effectiveness of any such amendment, the Applicable Rate
shall be determined by reference to the rating most recently in effect prior to
such change or cessation. Notwithstanding the foregoing, until the first
anniversary of the Effective Date, the ratings for the Index Debt shall be
deemed not to be higher than BBB- by S&P and Baa3 by Xxxxx'x (with A-/A3 being
the highest such rating and BB/Ba2 being the lowest).
"Assessment Rate" means, for any day, the annual assessment rate in
effect on such day that is payable by a member of the Bank Insurance Fund
classified as "well-capitalized" and within supervisory subgroup "B" (or a
comparable successor risk classification) within the meaning of 12 C.F.R. Part
327 (or any successor provision) to the Federal Deposit Insurance Corporation
for insurance by such Corporation of time deposits made in dollars at the
offices of such member in the United States; provided that if, as a result of
any change in any law, rule or regulation, it is no longer possible to determine
the Assessment Rate as aforesaid, then the Assessment Rate shall be such annual
rate as shall be determined in good faith by the Administrative Agent to be
representative of the cost of such insurance to the Lenders.
"Assignment and Acceptance" means an assignment and acceptance entered
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section 10.04), and accepted by the Administrative Agent,
substantially in the form of Exhibit A or any other form approved by the
Administrative Agent and the Company.
"Availability Period" means the period from and including the Effective
Date to but excluding the earlier of the Maturity Date and the date of
termination of all of the Commitments.
"Base CD Rate" means the sum of (a) the Three-Month Secondary CD Rate
multiplied by the Statutory Reserve Rate plus (b) the Assessment Rate.
"Board" means the Board of Governors of the Federal Reserve System
of the United States of America.
"Borrower" means the Company or any Borrowing Subsidiary.
"Borrowing" means (a) Revolving Loans of the same Type, Class and
currency, made, converted or continued on the same date to or by the same
Borrower and, in the case of Eurocurrency Loans, as to which a single Interest
Period is in effect, or (b) a Competitive Loan or group of Competitive Loans of
the same Type made on the same date and as to which a single Interest Period is
in effect.
"Borrowing Date" means any Business Day specified in a notice pursuant
to Section 2.03 or 2.04 as a date on which the applicable Borrower requests
Loans to be made hereunder.
"Borrowing Request" means a request for a Revolving Borrowing in
accordance with Section 2.03.
"Borrowing Subsidiary" means, at any time, each of (a) Jamont and Xxxxx
River Services and (b) if designated as a Borrowing Subsidiary by the Company
pursuant to Section 2.18, any other Wholly Owned Subsidiary that is a Foreign
Subsidiary, in each case until such Person has ceased to be a Borrowing
Subsidiary pursuant to Section 2.18.
"Borrowing Subsidiary Agreement" means a Borrowing Subsidiary Agreement
substantially in the form of Exhibit D.
"Borrowing Subsidiary Termination" means a Borrowing Subsidiary
Termination substantially in the form of Exhibit E.
"Business Day" means any day that is not a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by law
to remain closed; provided that (i) when used in connection with a Eurocurrency
Loan, the term "Business Day" shall also exclude any day on which banks are not
open for dealings in deposits in the applicable currency in the London interbank
market and (ii) when used in connection with a Multicurrency Loan, the term
"Business Day" shall also exclude any day on which banks in the jurisdiction
where such Loans are being made and where payments thereof are required to be
made are required by law to remain closed.
"Calculation Date" means (a) the last Business Day of each calendar
month and (b) at any time when the sum of the Multicurrency Loan Exposures
exceeds 75% of the total Multicurrency Commitments, the last Business Day of
each calendar week.
"Capital Lease Obligations" of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof,
which obligations are required to be classified and accounted for as capital
leases on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.
"Change in Control" means (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the Securities
and Exchange Commission thereunder as in effect on the date hereof), of shares
representing more than 35% of the aggregate ordinary voting power represented by
the issued and outstanding capital stock of the Company; or (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of the
Company by Persons who were neither (i) nominated by the board of directors of
the Company nor (ii) appointed by directors so nominated; or (c) the occurrence
of a "change in control" (or similar event, howsoever denominated) under and as
defined in any indenture or other agreement in respect of Material Indebtedness
to which any Borrower is a party.
"Change in Law" means (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by any Lender or the Issuing
Bank (or, for purposes of Section 2.13(c), by any lending office of such Lender
or by such Lender's or the Issuing Bank's holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.
"Class", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are U.S. Revolving
Loans, Multicurrency Loans or Competitive Loans. "Code" means the Internal
Revenue Code of 1986, as amended from time to time.
"Commitment" means, with respect to each Lender, such Lender's U.S.
Commitment and Multicurrency Commitment. The initial amount of the total
Commitments is $2,500,000,000. "Committed Currency" means (a) dollars, British
Pounds Sterling, Deutsche Marks, French Francs, Italian Lire, Belgian Francs,
Dutch Guilders and Spanish Pesetas and (b) any other Eligible Currency that
shall be designated by the Company in a notice delivered to the Administrative
Agent and approved by the Administrative Agent and all the Multicurrency Lenders
as a Committed Currency.
"Company" means Fort Xxxxx Corporation, a Virginia corporation
formerly named Xxxxx River Corporation of Virginia.
"Competitive Bid" means an offer by a Lender to make a Competitive
Loan in accordance with Section 2.04.
"Competitive Bid Rate" means, with respect to any Competitive Bid, the
Margin or the Fixed Rate, as applicable, offered by the Lender making such
Competitive Bid.
"Competitive Bid Request" means a request for Competitive Bids in
accordance with Section 2.04.
"Competitive Borrowing"means a Borrowing comprised of Competitive Loans
"Competitive Loan"means a Loan in dollars made pursuant to Section 2.04
"Consolidated Net Income" for any period means the amount of net income
(or net loss) of the Company and its consolidated Subsidiaries (giving pro forma
effect, for any period ending prior to the consummation of the Merger, to the
Merger as if it had occurred on the first day of such period, consistent with
the method applied in the pro forma financial statements referred to in Section
3.04(b)), excluding the portion thereof allocable to minority interests, if any,
held by Persons other than the Company or any Wholly Owned Subsidiary in such
consolidated Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP.
"Consolidated Net Tangible Assets" means the total assets of the
Company and its consolidated Subsidiaries, less (a) all current liabilities of
the Company and its consolidated Subsidiaries (other than the current maturities
of long-term debt) and (b) all unamortized debt discount and expense,
unamortized deferred charges, goodwill, patents, trademarks, service marks,
trade names, copyrights and other intangible assets.
"Control" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person, whether
through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.
"Default" means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.
"Disclosed Matters" means the actions, suits and proceedings and the
environmental matters disclosed in Schedule 3.06.
"Dollar Equivalent" means, on any date of determination, with respect
to any amount in any Committed Currency, the equivalent in dollars of such
amount, determined by the Administrative Agent pursuant to Section 1.05(a) using
the Exchange Rate with respect to such Committed Currency then in effect.
"dollars"or "$" refers to lawful money of the United States of America.
"EBITDA" means, for any period, Consolidated Net Income for such
period, plus, to the extent deducted in computing Consolidated Net Income for
such period, the sum (without duplication) of (a) income tax expense, (b)
Interest Expense, (c) depreciation and amortization expense, (d) extraordinary
losses, (e) restructuring charges related to the Merger taken in the third and
fourth quarters of 1997 and (f) any other non-cash charges or expenses, minus,
to the extent added in computing Consolidated Net Income for such period, (i)
consolidated interest income, (ii) extraordinary gains and (iii) any other
non-cash income.
"Effective Date" means the date on which the conditions specified in
Section 4.01 are satisfied (or waived in accordance with Section 10.02).
"Eligible Currency" means at any time any currency (other than dollars)
that is freely tradeable and exchangeable into dollars in the London market and
for which an Exchange Rate can be determined by reference to the Reuters World
Currency Page or another publicly available service for displaying exchange
rates.
"Environmental Laws" means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous
Material or to health and safety matters.
"Environmental Liability" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Company or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.
"ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Company, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.
"ERISA Event" means (a) any "reportable event", as defined in Section
4043 of ERISA or the regulations issued thereunder with respect to a Plan (other
than a reportable event for which the notice to the PBGC is waived); (b) the
existence with respect to any Plan of an "accumulated funding deficiency" (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d)
of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (d) the incurrence by the Company or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan; (e) the receipt by the Company or any ERISA Affiliate
from the PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f)
the incurrence by the Company or any of its ERISA Affiliates of any liability
with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Company or any ERISA Affiliate of
any notice, or the receipt by any Multiemployer Plan from the Company or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability
or a determination that a Multiemployer Plan is, or is expected to be, insolvent
or in reorganization, within the meaning of Title IV of ERISA.
"Eurocurrency", when used in reference to any Loan or Borrowing, means
that such Loan, or the Loans comprising such Borrowing, are bearing interest at
a rate determined by reference to the LIBO Rate.
"Eurocurrency Reserve Percentage" means, with respect to any Lender for
any day that percentage (expressed as a decimal) that is in effect on such day,
as prescribed by any Governmental Authority for determining the reserve, liquid
asset or similar requirement with respect to Eurocurrency Loans for such Lender
that is subject to the rules and regulations of such Governmental Authority.
"Even of Default" has the meaning assigned to such term in Article VII.
"Exchange Rate" means, on any day, with respect to any Committed
Currency other than dollars, the rate at which such Committed Currency may be
exchanged into dollars (and, for purposes of the definition of "Multicurrency
Equivalent" and Section 2.06(e), 2.12(i) or 2.13(g)(ii), the rate at which
dollars may be exchanged into such Committed Currency), as set forth at
approximately 11:00 a.m., London time, on such date on the Reuters World
Currency Page for such Committed Currency or as otherwise determined in
accordance with the Alternate Procedures. In the event that such rate does not
appear on any Reuters World Currency Page, the Exchange Rate shall be determined
by reference to such other publicly available service for displaying exchange
rates as may be agreed upon by the Administrative Agent and the Company, or, in
the absence of such agreement, such Exchange Rate shall instead be the
arithmetic average of the spot rates of exchange of the Administrative Agent in
the market where its foreign currency exchange operations in respect of such
Committed Currency are then being conducted, at or about 10:00 a.m., local time,
on such date for the purchase of dollars (or such Committed Currency, as the
case may be) for delivery two Business Days later; provided that if at the time
of any such determination, for any reason, no such spot rate is being quoted,
the Administrative Agent may use any reasonable method it deems appropriate to
determine such rate, and such determination shall be presumed correct absent
manifest error.
"Excluded Taxes" means, with respect to the Administrative Agent, any
Lender, the Issuing Bank or any other recipient of any payment to be made by or
on account of any obligation of any Borrower hereunder, (a) income or franchise
taxes imposed on (or measured by) such recipient's net income (including branch
profits or similar taxes) imposed as a result of a present or former connection
between such recipient and the Governmental Authority imposing such tax (other
than any such connection arising solely from such recipient having executed,
delivered or performed its obligations or received a payment under, or enforced,
this Agreement) and (b) in the case of a Foreign Lender (other than an assignee
pursuant to a request by the Company under Section 2.17(b)), any withholding tax
(other than withholding taxes imposed by a Governmental Authority of Belgium or
any political subdivision thereof) that is imposed on amounts payable to such
Foreign Lender (i) to the extent it is in effect and would apply as of the date
such Foreign Lender becomes a party to this Agreement or (ii) to the extent it
relates to payments received by a new lending office designated by such Foreign
Lender and is in effect and would apply at the time such lending office is
designated, except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new lending office (or
assignment), to receive additional amounts from the applicable Borrower with
respect to such withholding tax pursuant to Section 2.15(a) (other than any
withholding tax imposed on payments (A) by any Borrowing Subsidiary that is
designated after such Foreign Lender becomes a party to this Agreement or
designates a new lending office or (B) by any Borrower from a Payment Location
other than one specifically identified in this Agreement or any schedule hereto
as of the date such Foreign Lender becomes a party to this Agreement or
designates a new lending office), or (iii) that is attributable to such Foreign
Lender's failure to comply with Section 2.15(e).
"Existing Credit Agreements" means the agreements listed on Schedule
1.01(b) and all related guarantees and security documents, if any.
"Existing Receivables Program" means that certain receivables
securitization program conducted pursuant to the Existing Receivables Program
Documents.
"Existing Receivables Program Documents" means the documents listed on
Schedule 1.01(c).
"Federal Funds Effective Rate" means, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.
"Financial Officer" of any Person means the chief financial officer,
principal accounting officer, treasurer or controller of such Person.
"Fixed Rate" means, with respect to any Competitive Loan (other than a
Eurocurrency Competitive Loan), the fixed rate of interest per annum specified
by the Lender making such Competitive Loan in its related Competitive Bid.
"Fixed Rate Loan" means a Competitive Loan bearing interest at a Fixed
Rate.
"Foreign Lender" means, with respect to any Loan, any Lender making
such Loan that is organized under the laws of a jurisdiction other than the
Relevant Jurisdiction.
"Foreign Subsidiary" means any Subsidiary that is not organized under
the laws of any jurisdiction in the United States.
"Fort Xxxxxx" means Fort Xxxxxx Corporation, a Delaware corporation.
"Fort Xxxxxx Xxxxx" means Fort Xxxxxx'x (i) 9-1/4% Senior Notes due
2001, in an aggregate principal amount outstanding on the date hereof of
$450,000,000, (ii) 8-1/4% Senior Notes due 2002, in an aggregate principal
amount outstanding on the date hereof of $100,000,000, (iii) 9% Senior
Subordinated Notes due 2006, in an aggregate principal amount outstanding on the
date hereof of $618,097,000, and (iv) 10% Subordinated Notes due 2003, in an
aggregate principal amount outstanding on the date hereof of $298,500,000.
"Fort Xxxxxx Subordinated Note Indenture" means the Indenture dated as
of March 15, 0000, xxxxxxx Xxxx Xxxxxx xxx Xxxxxx Xxxxxx Trust Company of New
York pursuant to which Fort Xxxxxx issued its 10% Subordinated Notes due 2003.
"GAAP" means generally accepted accounting principles in the United
States of America.
"Governmental Authority" means the government of the United States of
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.
"Guarantee" of or by any Person (the "guarantor") means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other monetary obligation of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided, that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business.
"Hazardous Materials" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.
"Hedging Agreement" means any interest rate protection agreement,
foreign currency exchange agreement, commodity price protection agreement or
other interest or currency exchange rate or commodity price hedging arrangement.
"Hedging Obligations" means all obligations of the Company or any
Subsidiary in respect of any Hedging Agreement.
"Indebtedness" of any Person means, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person under conditional sale or other title retention
agreements relating to property acquired by such Person, (d) all obligations of
such Person in respect of the deferred purchase price of property or services
(excluding current accounts payable incurred in the ordinary course of
business), (e) all Indebtedness of others of the type described in the other
clauses of this definition secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien on property owned or acquired by such Person, whether or not the
Indebtedness secured thereby has been assumed; provided that the amount of any
Indebtedness of others that constitutes Indebtedness of such Person solely by
reason of this clause (e) shall not for purposes of this Agreement exceed the
greater of the book value or the fair market value of the property subject to
such Lien, (f) all Guarantees by such Person of Indebtedness of others, (g) all
Capital Lease Obligations of such Person, (h) all obligations, contingent or
otherwise, of such Person as an account party in respect of letters of credit
and letters of guaranty and (i) all obligations, contingent or otherwise, of
such Person in respect of bankers' acceptances. The Indebtedness of any Person
shall include the Indebtedness of any other entity (including any partnership in
which such Person is a general partner) to the extent such Person would under
applicable law or any agreement or instrument be liable therefor as a result of
such Person's ownership interest in or other relationship with such entity,
except to the extent the terms of such Indebtedness provide that such Person
shall not be liable therefor.
"Indemnified Taxes" means Taxes other than Excluded Taxes.
"Index Debt" means senior, unsecured, long-term indebtedness for
borrowed money of the Company that is not guaranteed by any other Person or
subject to any other credit enhancement.
"Information Memorandum" means the Confidential Information Memorandum
of the Company dated July 1997.
"Interest Election Request" means a request by the applicable Borrower
to convert or continue a Revolving Borrowing in accordance with Section 2.06.
"Interest Expense" means, for any period, the interest expense of the
Company and its consolidated Subsidiaries for such period determined on a
consolidated basis in accordance with GAAP (giving pro forma effect, for any
period ending prior to the consummation of the Merger, to the Merger as if it
had occurred on the first day of such period, consistent with the method applied
in the pro forma financial statements referred to in Section 3.04(b)), including
(i) the amortization of debt discounts to the extent included in interest
expense in accordance with GAAP, (ii) the amortization of all fees (including
fees with respect to Hedging Agreements) payable in connection with the
incurrence of Indebtedness to the extent included in interest expense in
accordance with GAAP and (iii) the portion of any rents payable under capital
leases allocable to interest expense in accordance with GAAP.
"Interest Payment Date" means (a) with respect to any ABR Loan, the
last day of each March, June, September and December, (b) with respect to any
Eurocurrency Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurocurrency
Borrowing with an Interest Period of more than three months' duration, each day
prior to the last day of such Interest Period that occurs at intervals of three
months' duration after the first day of such Interest Period, and (c) with
respect to any Fixed Rate Loan, the last day of the Interest Period applicable
to the Borrowing of which such Loan is a part and, in the case of a Fixed Rate
Borrowing with an Interest Period of more than 90 days' duration (unless
otherwise specified in the applicable Competitive Bid Request), each day prior
to the last day of such Interest Period that occurs at intervals of 90 days'
duration after the first day of such Interest Period, and any other dates that
are specified in the applicable Competitive Bid Request as Interest Payment
Dates with respect to such Borrowing.
"Interest Period" means (a) with respect to any Eurocurrency Borrowing,
the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter, as the applicable Borrower may elect and (b) with respect
to any Fixed Rate Borrowing, the period (which shall not be less than one day or
more than 360 days) commencing on the date of such Borrowing and ending on the
date specified in the applicable Competitive Bid Request; provided, that (i) if
any Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless, in the case
of a Eurocurrency Borrowing only, such next succeeding Business Day would fall
in the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day and (ii) any Interest Period pertaining to a
Eurocurrency Borrowing that commences on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the
last calendar month of such Interest Period) shall end on the last Business Day
of the last calendar month of such Interest Period. For purposes hereof, the
date of a Borrowing initially shall be the date on which such Borrowing is made
and, in the case of a Revolving Borrowing, thereafter shall be the effective
date of the most recent conversion or continuation of such Borrowing.
"Issuing Bank" means The Chase Manhattan Bank, in its capacity as the
issuer of Letters of Credit hereunder, and its successors in such capacity as
provided in Section 2.19(i). The Issuing Bank may, in its discretion, arrange
for one or more Letters of Credit to be issued by Affiliates of the Issuing
Bank, in which case the term "Issuing Bank" shall include any such Affiliate
with respect to Letters of Credit issued by such Affiliate.
"Xxxxx River Services" means Xxxxx River Services S.N.C., a general
partnership organized and existing under the laws of the Kingdom of Belgium (a
"Vennootsehap xxxxx Xxxxxx Societe en Nom Collectif").
"Jamont" means Jamont N.V., a company incorporated under the law of The
Netherlands.
"Judgment Currency" has the meaning assigned to such term in Section
10.14.
"LC Disbursement" means a payment made by the Issuing Bank pursuant to
a Letter of Credit.
"LC Exposure" means, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Letters of Credit at such time plus (b) the aggregate
amount of all LC Disbursements that have not yet been reimbursed by or on behalf
of the Company at such time. The LC Exposure of any U.S. Lender at any time
shall be its Applicable Percentage of the total LC Exposure at such time.
"Lenders" means the U.S. Lenders and the Multicurrency Lenders.
"Letter of Credit" means any letter of credit issued pursuant to this
Agreement.
"Leverage Ratio" means, as of the last day of any fiscal quarter of the
Company, the ratio of (a) Total Debt at such date to (b) EBITDA for the period
of four consecutive fiscal quarters of the Company ended on such date.
"LIBO Rate" means, with respect to any Eurocurrency Borrowing for any
Interest Period, the rate appearing on Page 3750 (or, in the case of a
Multicurrency Borrowing, the rate appearing on the Page for the applicable
Committed Currency) of the Dow Xxxxx Service (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service,
providing rate quotations comparable to those currently provided on such page of
such Service, as determined by the Administrative Agent from time to time for
purposes of providing quotations of interest rates applicable to dollar deposits
(or, in the case of a Multicurrency Borrowing, deposits in the applicable
Committed Currency) in the London interbank market) at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period, as the rate for dollar deposits (or the applicable Committed Currency)
with a maturity comparable to such Interest Period. In the event that such rate
is not available at such time for any reason, then the "LIBO Rate" with respect
to such Eurocurrency Borrowing (or such Multicurrency Borrowing) for such
Interest Period shall be the rate at which the Administrative Agent is offered
dollar deposits of $5,000,000 (or, in the case of a Multicurrency Borrowing,
deposits in the applicable Committed Currency in an amount the Dollar Equivalent
of which is approximately equal to $5,000,000) and for a maturity comparable to
such Interest Period in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.
"Lien" means, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, hypothecation, encumbrance, charge or security interest in,
on or of such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities.
"Loans" means the U.S. Revolving Loans, the Multicurrency Loans and the
Competitive Loans.
"Margin" means, with respect to any Competitive Loan bearing interest
at a rate based on the LIBO Rate, the marginal rate of interest, if any, to be
added to or subtracted from the LIBO Rate to determine the rate of interest
applicable to such Loan, as specified by the Lender making such Loan in its
related Competitive Bid.
"Margin Stock" has the meaning assigned to such term in Regulation U.
"Material Adverse Effect" means a material adverse effect on (a) the
business, assets, operations or condition, financial or otherwise, of the
Company and its Subsidiaries, taken as a whole, or (b) the ability of any
Borrower to perform, or the enforceability against any Borrower of, any of its
obligations under this Agreement or any Borrowing Subsidiary Agreement to which
it is a party.
"Material Indebtedness" means Indebtedness (other than the Loans and
the Letters of Credit), or obligations in respect of one or more Hedging
Agreements, of the Company and its Subsidiaries in an aggregate outstanding
principal amount exceeding $25,000,000. For purposes of determining Material
Indebtedness, the "principal amount" of the obligations of the Company or any
Subsidiary in respect of any Hedging Agreement at any time shall be the maximum
aggregate amount (giving effect to any netting agreements) that the Company or
such Subsidiary would be required to pay if such Hedging Agreement were
terminated at such time.
"Maturity Date" means August 13, 2002.
"Merger" means the merger of Xxxxx River Delaware, Inc., with and into
Fort Xxxxxx, with Fort Xxxxxx surviving such merger as a Wholly Owned Subsidiary
of the Company.
"Merger Agreement" means the Agreement and Plan of Merger dated as of
May 4, 1997, among the Company, Xxxxx River Delaware, Inc., and Fort Xxxxxx.
"Moody's" means Xxxxx'x Investors Service, Inc.
"Multicurrency Borrowing" means a Borrowing comprised of Multicurrency
Loans.
"Multicurrency Commitment" means, with respect to each Multicurrency
Lender, the commitment of such Lender (expressed in dollars) to make
Multicurrency Loans, expressed as an amount representing the maximum aggregate
Dollar Equivalent of the principal amount of such Lender's outstanding
Multicurrency Loans, as such commitment may be (a) reduced from time to time
pursuant to Section 2.07 and (b) reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 10.04. The initial
amount of each Multicurrency Lender's Multicurrency Commitment is set forth on
Schedule 2.01 or in the Assignment and Acceptance pursuant to which such Lender
shall have assumed its Multicurrency Commitment, as applicable. The initial
amount of the total Multicurrency Commitments is $300,000,000.
"Multicurrency Equivalent" means, on any date of determination, with
respect to any amount in dollars, the equivalent in the relevant Committed
Currency of such amount, determined by the Administrative Agent using the
Exchange Rate with respect to such Committed Currency then in effect as
determined pursuant to Section 1.05(a).
"Multicurrency Lenders" means the Lenders designated as such on
Schedule 2.01 and any other Person that shall become a Multicurrency Lender
pursuant to an Assignment and Acceptance, other than any such Person that ceases
to be a Multicurrency Lender pursuant to an Assignment and Acceptance.
"Multicurrency Loan" means a Revolving Loan denominated in a Committed
Currency and made pursuant to Section 2.01(b).
"Multicurrency Loan Exposure" means, with respect to any Multicurrency
Lender at any time, such Lender's Applicable Percentage of the Dollar Equivalent
of the aggregate principal amount of the outstanding Multicurrency Loans.
"Multiemployer Plan" means a multiemployer plan as defined in Section
4001(a)(3) of ERISA.
"New Receivables Financing" has the meaning assigned to such term in
the definition of "Permitted Receivables Financing".
"Obligations" means the obligations of each of the Borrowing
Subsidiaries under this Agreement and the Borrowing Subsidiary Agreements with
respect to the payment of (i) the principal of and interest on the Loans to each
such Borrowing Subsidiary when and as due, whether at maturity, by acceleration,
upon one or more dates set for prepayment or otherwise and (ii) all other
monetary obligations of each of the Borrowing Subsidiaries hereunder and
thereunder.
"Other Taxes" means any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from any payment made hereunder or from the execution, delivery or enforcement
of, or otherwise with respect to, this Agreement.
"Participant"has the meaning assigned to such term in Section 10.04(e).
"Payment Location" means an office, branch or other place of business
of any Borrower.
"PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA and any successor entity performing similar functions.
"Permitted Encumbrances" means:
(a) Liens imposed by law for taxes that are not yet due or
are being contested in compliance with Section 5.04;
(b) carriers', warehousemen's, mechanics', materialmen's,
repairmen's and other like Liens imposed by law, arising in the
ordinary course of business and securing obligations that (i) are not
overdue by more than 30 days, (ii) do not in the aggregate materially
detract from the value of the property subject to such Lien or
materially impair the use thereof in the operation of the business of
the Company or any Subsidiary or (iii) are being contested in
compliance with Section 5.04;
(c) pledges and deposits made in the ordinary course of
business in compliance with workers' compensation, unemployment
insurance and other social security laws or regulations;
(d) deposits to secure the performance of bids, trade
contracts, leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature, in each case
in the ordinary course of business, and deposits securing liabilities
to insurance carriers under insurance or self-insurance arrangements;
(e) judgment liens in respect of judgments that do not
constitute an Event of Default under clause (k) of Article VII; and
(f) easements, zoning restrictions, rights-of-way and similar
encumbrances on real property imposed by law or arising in the ordinary
course of business that do not secure any monetary obligations and do
not materially detract from the value of the affected property or
interfere with the ordinary conduct of business of the Company or any
Subsidiary;
provided that the term "Permitted Encumbrances" shall not include any Lien
securing Indebtedness.
"Permitted Receivables Financing" means (a) the Existing Receivables
Program and (b) any extension, renewal or refinancing of the Existing
Receivables Program, or any other financing secured by trade receivables (and
related assets) originated by the Company or any Subsidiary (a "New Receivables
Financing"), provided that (i) the Indebtedness associated with the Existing
Receivables Program and any New Receivables Financing does not exceed in the
aggregate $500,000,000 at any time, (ii) sales of receivables by the Company or
any Subsidiary are made at fair market value, (iii) the interest rate applicable
to any receivables financing shall be a market interest rate (as determined in
good faith by the board of directors of the Company) as of the time such
financing is entered into, (iv) such financing is non-recourse to the Company
and its Subsidiaries except to a limited extent customary for such financings
and (v) the covenants, events of default and other provisions thereof,
collectively, shall be market terms (as determined in good faith by the board of
directors of the Company).
"Person" means any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.
"Plan" means any employee pension benefit plan (other than a
Multiemployer Plan) (i) subject to the provisions of Title IV of ERISA or
Section 412 of the Code or Section 302 of ERISA and (ii) in respect of which the
Company or any ERISA Affiliate is (or, if such plan were terminated, would under
Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5)
of ERISA.
"Preferred Stock" of any Person means any class of capital stock or
other equity interest of such Person that is preferred as to the payment of
dividends or distributions, or as to the distribution of assets upon any
voluntary or involuntary liquidation or dissolution of such Person, over any
other class of capital stock or other equity interest of such Person.
"Prime Rate" means the rate of interest per annum publicly announced
from time to time by The Chase Manhattan Bank as its prime rate in effect at its
principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.
"Register" has the meaning set forth in Section 10.04(c).
"Regulation G" means Regulation G of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.
"Regulation T" means Regulation T of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.
"Regulation U" means Regulation U of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.
"Regulation X" means Regulation X of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.
"Related Parties" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.
"Relevant Jurisdiction" means (a) in the case of any Loan to the
Company or Fort Xxxxxx, the United States of America, and (b) in the case of any
Loan to any other Borrowing Subsidiary, the jurisdiction imposing (or having the
power to impose) withholding tax on payments by such Borrowing Subsidiary under
this Agreement.
"Required Lenders" means, at any time, Lenders having Revolving Credit
Exposures and unused Commitments representing more than 50% of the sum of the
total Revolving Credit Exposures and unused Commitments at such time; provided
that, for purposes of declaring the Loans to be due and payable pursuant to
Article VII, and for all purposes after the Loans become due and payable
pursuant to Article VII or the Commitments expire or terminate, the outstanding
Competitive Loans of the Lenders shall be included in their respective Revolving
Credit Exposures in determining the Required Lenders.
"Reset Date" has the meaning set forth in Section 1.05(a).
"Revolving Borrowing" means a Borrowing comprised of Revolving Loans.
"Revolving Credit Exposure" means, with respect to any Lender at any
time,such Lender's U.S.Revolving Credit Exposure and such Lender's Multicurrency
Loan Exposure.
"Revolving Loan" means a U.S. Revolving Loan or a Multicurrency Loan.
"S&P" means Standard & Poor's.
"Statutory Reserve Rate" means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve, liquid asset or similar
percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board for new negotiable
nonpersonal time deposits in dollars of over $100,000 with maturities
approximately equal to three months. The Statutory Reserve Rate shall be
adjusted automatically on and as of the effective date of any change in any
reserve percentage.
"subsidiary" means, with respect to any Person (the "parent") at any
date, any corporation, limited liability company, partnership, association or
other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as any
other corporation, limited liability company, partnership, association or other
entity of which securities or other ownership interests representing more than
50% of the equity or more than 50% of the ordinary voting power or, in the case
of a partnership, more than 50% of the general partnership interests are, as of
such date, owned, controlled or held directly or indirectly by the parent.
"Subsidiary" means any subsidiary of the Company.
"Taxes" means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.
"Three-Month Secondary CD Rate" means, for any day, the secondary
market rate for three-month certificates of deposit reported as being in effect
on such day (or, if such day is not a Business Day, the next preceding Business
Day) by the Board through the public information telephone line of the Federal
Reserve Bank of New York (which rate will, under the current practices of the
Board, be published in Federal Reserve Statistical Release H.15(519) during the
week following such day) or, if such rate is not so reported on such day or such
next preceding Business Day, the average of the secondary market quotations for
three-month certificates of deposit of major money center banks in New York City
received at approximately 10:00 a.m., New York City time, on such day (or, if
such day is not a Business Day, on the next preceding Business Day) by the
Administrative Agent from three negotiable certificate of deposit dealers of
recognized standing selected by it.
"Total Debt" means, at any date, all Indebtedness of the Company and
its consolidated Subsidiaries at such date (other than Indebtedness of the type
described in clause (h) or (i) of the definition of the term "Indebtedness",
except to the extent of any unreimbursed drawings thereunder).
"Transactions" means (i) the Merger and (ii) the execution, delivery
and performance by the Borrowers of this Agreement and any Borrowing Subsidiary
Agreements, the borrowing of Loans and the use of the proceeds thereof and the
issuance of Letters of Credit hereunder.
"Type", when used in reference to any Loan or Borrowing, refers to
whether the rate of interest on such Loan, or on the Loans comprising such
Borrowing, is determined by reference to the LIBO Rate, the Alternate Base Rate
or a Fixed Rate.
"U.S. Commitment" means, with respect to each U.S. Lender, the
commitment of such Lender to make U.S. Revolving Loans and to acquire
participations in Letters of Credit hereunder, expressed as an amount
representing the maximum aggregate amount of such Lender's U.S. Revolving Credit
Exposure hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.07 and (b) reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 10.04. The initial
amount of each U.S. Lender's U.S. Commitment is set forth on Schedule 2.01 or in
the Assignment and Acceptance pursuant to which such Lender shall have assumed
its U.S. Commitment, as applicable. The initial amount of the total U.S.
Commitments is $2,200,000,000.
"U.S. Lenders" means the Lenders designated as such on Schedule 2.01
and any other Person that shall become a U.S. Lender pursuant to an Assignment
and Acceptance, other than any such Person that ceases to be a U.S. Lender
pursuant to an Assignment and Acceptance.
"U.S.Revolving Borrowing" means a Borrowing comprised of U.S. Revolving
Loans.
"U.S. Revolving Credit Exposure" means, with respect to any Lender at
any time, the sum of the outstanding principal amount of such Lender's U.S.
Revolving Loans and its LC Exposure at such time.
"U.S. Revolving Loan" means a Revolving Loan denominated in dollars
and made pursuant to Section 2.01(a).
"Wholly Owned Subsidiary" means a Subsidiary all the capital stock (or
other ownership interests) of which (other than directors' qualifying shares) is
owned by the Company or another Wholly Owned Subsidiary.
"Withdrawal Liability" means liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.
SECTION 1.02. Classification of Loans and Borrowings. For purposes of
this Agreement, Loans may be classified and referred to by Class (e.g., a
"Revolving Loan") or by Type (e.g., a "Eurocurrency Loan") or by Class and Type
(e.g., a "Eurocurrency Revolving Loan"). Borrowings also may be classified and
referred to by Class (e.g., a "Revolving Borrowing") or by Type (e.g., a
"Eurocurrency Borrowing") or by Class and Type (e.g., a "Eurocurrency Revolving
Borrowing").
SECTION 1.03. Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall".
Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) the words
"asset" and "property" shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.
SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided
that, if the Company notifies the Administrative Agent that the Company requests
an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the Company
that the Required Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.
SECTION 1.05. Exchange Rates. (a) Not later than 1:00 p.m., New York
City time, on each Calculation Date, the Administrative Agent shall (i)
determine the Exchange Rate as of such Calculation Date with respect to each
Committed Currency (other than dollars) and (ii) give notice thereof to the
Lenders and the Company. The Exchange Rates so determined shall become effective
on the first Business Day immediately following the relevant Calculation Date (a
"Reset Date"), shall remain effective until the next succeeding Reset Date, and
shall for all purposes of this Agreement (other than Section 2.06(e), Section
2.12(i), Section 2.13(g)(ii), Section 10.14 or any other provision expressly
requiring the use of a current Exchange Rate) be the Exchange Rates employed in
converting any amounts between dollars and Committed Currencies.
(b) Not later than 5:00 p.m., New York City time, on each Reset Date
and each Borrowing Date with respect to Multicurrency Loans, the Administrative
Agent shall (i) determine the Dollar Equivalent of the aggregate principal
amount of the Multicurrency Loans then outstanding (after giving effect to any
Multicurrency Loans made or repaid on such date) and (ii) notify the Lenders and
the Company of the results of such determination.
SECTION 1.06. Several Obligations. The obligations of the Borrowers to
pay the principal of and interest on each Loan are several and not joint, and no
Borrowing Subsidiary shall be liable for the payment obligations of the Company
or any other Borrowing Subsidiary hereunder.
ARTICLE II
The Credits
SECTION 2.01. Commitments. (a) Subject to the terms and conditions set
forth herein, each U.S. Lender agrees to make U.S. Revolving Loans to the
Company from time to time during the Availability Period in an aggregate
principal amount that will not result in (i) such Lender's U.S. Revolving Credit
Exposure exceeding such Lender's U.S. Commitment or (ii) the sum of the total
U.S. Revolving Credit Exposures plus the aggregate principal amount of the
outstanding Competitive Loans exceeding the total U.S. Commitments.
(b) Subject to the terms and conditions set forth herein, each
Multicurrency Lender agrees to make Multicurrency Loans to any Borrower from
time to time during the Availability Period in an aggregate principal amount
that will not result in (i) the Multicurrency Loan Exposure of any Multicurrency
Lender exceeding such Lender's Multicurrency Commitment or (ii) the sum of the
Multicurrency Loan Exposures exceeding the total Multicurrency Commitments,
provided that the aggregate amount of all Multicurrency Loans denominated in
each of Italian Lire and Spanish Pesetas shall not exceed $25,000,000.
(c) Within the foregoing limits and subject to the terms and conditions
set forth herein, the Borrowers may borrow, prepay and reborrow Revolving Loans.
SECTION 2.02. Loans and Borrowings. (a) Each U.S. Revolving Loan shall
be made as part of a Borrowing consisting of U.S. Revolving Loans made by the
U.S. Lenders ratably in accordance with their U.S. Commitments. Each
Multicurrency Loan shall be made as part of a Borrowing consisting of
Multicurrency Loans denominated in the same Committed Currency and made by the
Multicurrency Lenders ratably in accordance with their Multicurrency
Commitments. Each Competitive Loan shall be made in accordance with the
procedures set forth in Section 2.04. The failure of any Lender to make any Loan
required to be made by it shall not relieve any other Lender of its obligations
hereunder; provided that the Commitments of the Lenders are several and no
Lender shall be responsible for any other Lender's failure to make Loans as
required.
(b) Subject to Section 2.12 and Section 2.13(g), (i) each U.S.
Revolving Borrowing shall be comprised entirely of Eurocurrency Loans or ABR
Loans as the Company may request in accordance herewith, (ii) each Multicurrency
Borrowing shall be comprised of Eurocurrency Loans or, if denominated in dollars
and at the option of the applicable Borrower as specified pursuant to Section
2.03 or 2.06, ABR Loans, and (iii) each Competitive Borrowing shall be comprised
entirely of Eurocurrency Competitive Loans or Fixed Rate Loans as the Company
may request in accordance herewith. Each Lender at its option may make any
Eurocurrency Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided that any exercise of such option shall not
affect the obligation of any Borrower to repay such Loan in accordance with the
terms of this Agreement.
(c) At the commencement of each Interest Period for any Eurocurrency
Revolving Borrowing, such Borrowing shall be in an aggregate amount that is at
least $5,000,000 (or the Multicurrency Equivalent thereof) and, in the case of a
Borrowing denominated in dollars, an integral multiple of $1,000,000. At the
time that each ABR Revolving Borrowing is made, such Borrowing shall be in an
aggregate amount that is at least $5,000,000 and an integral multiple of
$1,000,000; provided that an ABR Revolving Borrowing may be in an aggregate
amount that is equal to the entire unused balance of the total U.S. Commitments
or total Multicurrency Commitments, as the case may be, or that is required to
finance the reimbursement of an LC Disbursement as contemplated by Section
2.19(e). Each Competitive Borrowing shall be in an aggregate amount that is at
least $5,000,000 and an integral multiple of $1,000,000. Borrowings of more than
one Type and Class may be outstanding at the same time; provided that there
shall not at any time be more than a total of 25 Eurocurrency Revolving
Borrowings outstanding.
(d) Notwithstanding any other provision of this Agreement, no Borrower
shall be entitled to request, or to elect to convert or continue, any Borrowing
if the Interest Period requested with respect thereto would end after the
Maturity Date.
SECTION 2.03. Requests for Revolving Borrowings. To request a Revolving
Borrowing, a Borrower shall notify the Administrative Agent of such request by
telephone (a) in the case of a Eurocurrency Borrowing (other than a
Multicurrency Borrowing), not later than 11:00 a.m., New York City time, three
Business Days before the date of the proposed Borrowing, (b) in the case of a
Multicurrency Borrowing, not later than 10:00 a.m., London time, three Business
Days before the date of the proposed Borrowing (or at such other time as shall
be specified in the Alternate Procedures) or (c) in the case of an ABR
Borrowing, not later than 12:00 (noon), New York City time, on the day of the
proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable
and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Borrowing Request in a form approved by the
Administrative Agent and signed by the applicable Borrower. Each such telephonic
and written Borrowing Request shall specify the following information in
compliance with Section 2.02:
(i) the aggregate amount of the requested Borrowing;
(ii) the date of such Borrowing, which shall be a Business Day;
(iii) whether such Borrowing is to be a U.S.Revolving Borrowing or a
Multicurrency Borrowing;
(iv) if such Borrowing is to be a Multicurrency Borrowing, the
currency thereof, which shall be a Committed Currency;
(v) if such Borrowing is to be denominated in dollars, whether it is
to be an ABR Borrowing or a Eurocurrency Borrowing;
(vi) in the case of a Eurocurrency Borrowing, the initial Interest
Period to be applicable thereto, which shall be a period contemplated by
the definition of the term "Interest Period"; and
(vii) the location and number of the applicable Borrower's account to
which funds are to be disbursed, which shall comply with the requirements
of Section 2.05.
If no Class is specified with respect to any dollar denominated Borrowing, the
applicable Borrower shall be deemed to have selected a U.S. Revolving Borrowing.
If no Class is specified with respect to any Borrowing denominated in a
Committed Currency (other than dollars), the applicable Borrower shall be deemed
to have selected a Multicurrency Borrowing. If no Type is specified with respect
to any U.S. Revolving Borrowing selected or deemed selected or a Multicurrency
Borrowing denominated in dollars, then the applicable Borrower shall be deemed
to have selected an ABR Borrowing. If no currency is specified with respect to
any requested Eurocurrency Revolving Borrowing, then the applicable Borrower
shall be deemed to have selected dollars. If no Interest Period is specified
with respect to any requested Eurocurrency Revolving Borrowing, then the
applicable Borrower shall be deemed to have selected an Interest Period of one
month's duration. Promptly following receipt of a Borrowing Request in
accordance with this Section, the Administrative Agent shall advise each Lender
of the details thereof and of the amount of such Lender's Loan to be made as
part of the requested Borrowing.
SECTION 2.04. Competitive Bid Procedure. (a) Subject to the terms and
conditions set forth herein, from time to time during the Availability Period
the Company may request Competitive Bids for Competitive Loans denominated in
dollars and may (but shall not have any obligation to) accept Competitive Bids
and borrow Competitive Loans; provided that the sum of the total U.S. Revolving
Credit Exposures plus the aggregate principal amount of outstanding Competitive
Loans at any time shall not exceed the total U.S. Commitments. To request
Competitive Bids, the Company shall notify the Administrative Agent of such
request by telephone, in the case of a Eurocurrency Borrowing, not later than
11:00 a.m., New York City time, four Business Days before the date of the
proposed Borrowing and, in the case of a Fixed Rate Borrowing, not later than
10:00 a.m., New York City time, one Business Day before the date of the proposed
Borrowing; provided that the Company may submit jointly up to (but not more
than) three Competitive Bid Requests on the same day, but a Competitive Bid
Request shall not be made within five Business Days after the date of any
previous Competitive Bid Request, unless any and all such previous Competitive
Bid Requests shall have been withdrawn or all Competitive Bids received in
response thereto rejected. Each such telephonic Competitive Bid Request shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Competitive Bid Request in a form approved by the Administrative Agent
and signed by the Company. Each such telephonic and written Competitive Bid
Request shall specify the following information in compliance with Section 2.02:
(i) the aggregate amount of the requested Borrowing;
(ii) the date of such Borrowing, which shall be a Business Day;
(iii) whether such Borrowing is to be a Eurocurrency Borrowing or a
Fixed Rate Borrowing;
(iv) the Interest Period to be applicable to such Borrowing, which
shall be a period contemplated by the definition of the term "Interest
Period"; and
(v) the location and number of the Company's account to which funds
are to be disbursed, which shall comply with the requirements of Section
2.05.
Promptly following receipt of a Competitive Bid Request in accordance with this
Section, the Administrative Agent shall notify the Lenders of the details
thereof by telecopy, inviting the Lenders to submit Competitive Bids.
(b) Each U.S. Lender may (but shall not have any obligation to) make
one or more Competitive Bids to the Company in response to a Competitive Bid
Request. Each Competitive Bid by a U.S. Lender must be in a form approved by the
Administrative Agent and must be received by the Administrative Agent by
telecopy, in the case of a Eurocurrency Competitive Borrowing, not later than
9:30 a.m., New York City time, three Business Days before the proposed date of
such Competitive Borrowing, and in the case of a Fixed Rate Borrowing, not later
than 9:30 a.m., New York City time, on the proposed date of such Competitive
Borrowing. Competitive Bids that do not conform substantially to the form
approved by the Administrative Agent may be rejected by the Administrative
Agent, and the Administrative Agent shall notify the applicable Lender as
promptly as practicable. Each Competitive Bid shall be irrevocable and shall
specify (i) the principal amount (which shall be a minimum of $5,000,000 and an
integral multiple of $1,000,000 and which may equal up to the entire principal
amount of the Competitive Borrowing requested by the Company) of the Competitive
Loan or Loans that the Lender is willing to make, (ii) the Competitive Bid Rate
or Rates at which the Lender is prepared to make such Competitive Loan or Loans
(expressed as a percentage rate per annum in the form of a decimal to no more
than four decimal places) and (iii) the Interest Period applicable to each such
Loan and the last day thereof.
(c) The Administrative Agent shall promptly notify the Company by
telecopy of the Competitive Bid Rate or Rates and the principal amount of the
Competitive Loan or Loans specified in each Competitive Bid and the identity of
the Lender that shall have made such Competitive Bid.
(d) Subject only to the provisions of this paragraph, the Company may
accept or reject any Competitive Bid. The Company shall notify the
Administrative Agent by telephone, confirmed by telecopy in a form approved by
the Administrative Agent, whether and to what extent it has decided to accept or
reject each Competitive Bid, in the case of a Eurocurrency Competitive
Borrowing, not later than 10:30 a.m., New York City time, three Business Days
before the date of the proposed Competitive Borrowing, and in the case of a
Fixed Rate Borrowing, not later than 10:30 a.m., New York City time, on the
proposed date of the Competitive Borrowing; provided that (i) the failure of the
Company to give such notice shall be deemed to be a rejection of each
Competitive Bid, (ii) the Company shall not accept a Competitive Bid made at a
particular Competitive Bid Rate if the Company rejects a Competitive Bid made at
a lower Competitive Bid Rate, (iii) the aggregate amount of the Competitive Bids
accepted by the Company shall not exceed the aggregate amount of the requested
Competitive Borrowing specified in the related Competitive Bid Request, (iv) to
the extent necessary to comply with clause (iii) above, the Company may accept
Competitive Bids at the same Competitive Bid Rate in part, which acceptance, in
the case of multiple Competitive Bids at such Competitive Bid Rate, shall be
made pro rata in accordance with the amount of each such Competitive Bid as
allocated by the Administrative Agent, and (v) except pursuant to clause (iv)
above, no Competitive Bid shall be accepted for a Competitive Loan unless such
Competitive Loan is in a minimum principal amount of $5,000,000 and an integral
multiple of $1,000,000; provided further that if a Competitive Loan must be in
an amount less than $5,000,000 because of the provisions of clause (iv) above,
such Competitive Loan may be for a minimum of $1,000,000 or any integral
multiple thereof, and in calculating the pro rata allocation of acceptances of
portions of multiple Competitive Bids at a particular Competitive Bid Rate
pursuant to clause (iv) the amounts shall be rounded to integral multiples of
$1,000,000 in a manner determined by the Company. A notice given by the Company
pursuant to this paragraph shall be irrevocable.
(e) The Administrative Agent shall promptly notify each bidding Lender
by telecopy whether or not its Competitive Bid has been accepted (and, if so,
the amount and Competitive Bid Rate so accepted), and, upon receipt of such
notice, each successful bidder will thereupon become bound, subject to the terms
and conditions hereof, to make the Competitive Loan in respect of which its
Competitive Bid has been accepted.
(f) If the Administrative Agent shall elect to submit a Competitive Bid
in its capacity as a Lender, it shall submit such Competitive Bid directly to
the Company at least one quarter of an hour earlier than the time by which the
other Lenders are required to submit their Competitive Bids to the
Administrative Agent pursuant to paragraph (b) of this Section.
SECTION 2.05. Funding of Borrowings. (a) Each U.S. Lender shall make
each Loan to be made by it hereunder on the proposed date thereof by wire
transfer of immediately available funds by 12:00 noon, New York City time, to
the account of the Administrative Agent most recently designated by it for such
purpose by notice to the Lenders. The Administrative Agent will make such Loans
available to the applicable Borrower by promptly crediting the amounts so
received, in like funds, to an account of the Company maintained with the
Administrative Agent in New York City and designated by the Company in the
applicable Borrowing Request or Competitive Bid Request or to such other account
as may be specified by the applicable Borrower in the applicable Borrowing
Request or Competitive Bid Request; provided that ABR U.S. Revolving Loans made
to finance the reimbursement of an LC Disbursement as provided in Section
2.19(e) shall be remitted by the Administrative Agent to the Issuing Bank. Each
Multicurrency Lender shall make each Multicurrency Loan to be made by it
hereunder on the proposed date thereof by wire transfer of such immediately
available funds as may then be customary for the settlement of international
transactions in the applicable Committed Currency, by 11:00 a.m., London time,
to the account of the Administrative Agent most recently designated by it for
such purpose by notice to the Multicurrency Lenders (or by such other time and
to such other account as shall be specified in the Alternate Procedures). The
Administrative Agent will make such Multicurrency Loans available to the
applicable Borrower by promptly crediting the amounts so received, in like
funds, to an account of such Borrower maintained in London (or in such other
city as shall be designated in the Alternate Procedures) and designated by such
Borrower in the applicable Borrowing Request.
(b) Unless the Administrative Agent shall have received notice from a
Lender prior to the proposed date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender's share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the applicable
Borrower a corresponding amount. In such event, if a Lender has not in fact made
its share of the applicable Borrowing available to the Administrative Agent,
then the applicable Lender and the applicable Borrower severally agree to pay to
the Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made
available to the applicable Borrower to but excluding the date of payment to the
Administrative Agent, at (i) in the case of such Lender, (x) the Federal Funds
Effective Rate (in the case of a Borrowing in dollars) and (y) the rate
reasonably determined by the Administrative Agent to be the cost to it of
funding such amount (in the case of a Borrowing in a Committed Currency) or (ii)
in the case of such Borrower, the interest rate applicable to the subject Loan.
If such Lender pays such amount to the Administrative Agent, then such amount
shall constitute such Lender's Loan included in such Borrowing.
SECTION 2.06. Interest Elections. (a) Each Revolving Borrowing
initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Eurocurrency Revolving Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request (or, in either case, as
deemed specified). Thereafter, the applicable Borrower may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of
a Eurocurrency Revolving Borrowing, may elect Interest Periods therefor, all as
provided in this Section. A Borrower may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Competitive Borrowings,
which may not be converted or continued. Notwithstanding any contrary provision
herein, this Section shall not be construed to permit any Borrower to change the
currency or Class of any Borrowing.
(b) To make an election pursuant to this Section, a Borrower shall
notify the Administrative Agent of such election by telephone by the time that a
Borrowing Request would be required under Section 2.03 if such Borrower were
requesting a Revolving Borrowing of the Type resulting from such election to be
made on the effective date of such election. Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election
Request in a form approved by the Administrative Agent and signed by the
applicable Borrower.
(c) Each telephonic and written Interest Election Request shall specify
the following information in compliance with Section 2.02:
(i) the Borrowing to which such Interest Election Request
applies and, if different options are being elected with respect to
different portions thereof, the portions thereof to be allocated to
each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each
resulting Borrowing);
(ii) the effective date of the election made pursuant to such
Interest Election Request, which shall be a Business Day;
(iii) if the Borrowing to which such Interest Election Request
applies is denominated in dollars, whether the resulting Borrowing is
to be an ABR Borrowing or a Eurocurrency Borrowing; and
(iv) if the resulting Borrowing is a Eurocurrency Borrowing,
the Interest Period to be applicable thereto after giving effect to
such election, which shall be a period contemplated by the definition
of the term "Interest Period".
If no Interest Period is specified with respect to any requested Eurocurrency
Borrowing, then the applicable Borrower shall be deemed to have selected an
Interest Period of one month's duration.
(d) Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of such
Lender's portion of each resulting Borrowing.
(e) If the applicable Borrower fails to deliver a timely Interest
Election Request with respect to a Eurocurrency Revolving Borrowing prior to the
end of the Interest Period applicable thereto, then, unless such Borrowing is
repaid as provided herein, at the end of such Interest Period such Borrowing
shall be converted to an ABR Borrowing (unless such Borrowing is denominated in
a Committed Currency other than dollars, in which case such Borrowing shall
become due and payable on the last day of such Interest Period). Notwithstanding
any contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the request of the Required Lenders,
so notifies the applicable Borrower and the Company, then, so long as an Event
of Default is continuing (i) no outstanding Revolving Borrowing may be converted
to or continued as a Eurocurrency Borrowing and (ii) unless repaid, each
Eurocurrency Revolving Borrowing shall be converted to an ABR Borrowing at the
end of the Interest Period applicable thereto (and, in the case of a
Multicurrency Borrowing denominated in a Committed Currency other than dollars,
such Borrowing, shall be converted into dollars at the Exchange Rate determined
by the Administrative Agent on the last day of the Interest Period applicable
thereto).
SECTION 2.07. Termination and Reduction of Commitments. (a) Unless
previously terminated, the Commitments shall terminate on the Maturity Date.
(b) The Company may at any time terminate, or from time to time reduce,
the U.S. Commitments or the Multicurrency Commitments; provided that (i) each
reduction of the U.S. Commitments or the Multicurrency Commitments shall be in
an amount that is an integral multiple of $1,000,000 and not less than
$10,000,000 and (ii) the Company shall not terminate or reduce (x) the U.S.
Commitments if, after giving effect to any concurrent prepayment of the Loans in
accordance with Section 2.09, the sum of the U.S. Revolving Credit Exposures
plus the aggregate principal amount of the outstanding Competitive Loans would
exceed the total U.S. Commitments or (y) the Multicurrency Commitments if, after
giving effect to any concurrent prepayment of the Multicurrency Loans in
accordance with Section 2.09, the sum of the Multicurrency Loan Exposures would
exceed the total Multicurrency Commitments.
(c) Within three Business Days of the establishment of any New
Receivables Financing, the Company shall permanently reduce the U.S. Commitments
in an amount equal to the maximum amount of Indebtedness that may be incurred
under such New Receivables Financing.
(d) The Company shall notify the Administrative Agent of any election
to terminate or reduce the U.S. Commitments or the Multicurrency Commitments
under paragraph (b) of this Section at least three Business Days prior to the
effective date of such termination or reduction, specifying such election and
the effective date thereof. Promptly following receipt of any such notice, the
Administrative Agent shall advise the Lenders of the contents thereof. Each
notice delivered by the Company pursuant to this Section shall be irrevocable;
provided that a notice of termination of the Commitments delivered by the
Company may state that such notice is conditioned upon the effectiveness of
other credit facilities, in which case such notice may be revoked by the Company
(by notice to the Administrative Agent on or prior to the specified effective
date) if such condition is not satisfied. Any termination or reduction of the
U.S. Commitments or the Multicurrency Commitments shall be permanent. Each
reduction of the U.S. Commitments or the Multicurrency Commitments shall be made
ratably among the U.S. Lenders or the Multicurrency Lenders, as the case may be,
in accordance with their respective U.S. Commitments or Multicurrency
Commitments.
SECTION 2.08. Repayment of Loans; Evidence of Debt. (a) Each Borrower
hereby unconditionally promises to pay on the Maturity Date to the
Administrative Agent for the account of each Lender the then unpaid principal
amount of each Revolving Loan made by such Lender to such Borrower. The Company
hereby unconditionally promises to pay to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Competitive Loan
made by such Lender on the last day of the Interest Period applicable to such
Loan.
(b) Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of each Borrower to such Lender
resulting from each Loan made by such Lender, including the amounts of principal
and interest payable and paid to such Lender from time to time hereunder.
(c) The Administrative Agent shall maintain accounts in which it shall
record (i) the amount of each Loan made hereunder, the Class and Type (and, in
the case of a Multicurrency Loan, the currency) thereof and the Interest Period
applicable thereto, (ii) the amount of any principal or interest due and payable
or to become due and payable from each Borrower to each Lender hereunder and
(iii) the amount of any sum received by the Administrative Agent hereunder for
the account of the Lenders and each Lender's share thereof.
(d) The entries made in the accounts maintained pursuant to paragraph
(b) or (c) of this Section shall be prima facie evidence of the existence and
amounts of the obligations recorded therein; provided that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of any Borrower to repay
the Loans in accordance with the terms of this Agreement.
(e) Any Lender may request that Loans made by it be evidenced by a
promissory note. In such event, the Administrative Agent shall prepare and
deliver to each Borrower, and each Borrower shall execute and deliver to such
Lender, a promissory note payable to the order of such Lender (or, if requested
by such Lender, to such Lender and its registered assigns) and in a form
approved by the Administrative Agent and the Company. Thereafter, the Loans
evidenced by each such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 10.04) be represented by one or
more promissory notes in such form payable to the order of the payee named
therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).
SECTION 2.09. Prepayment of Loans. (a) Subject to Section 2.14, any
Borrower shall have the right at any time and from time to time to prepay any
Borrowing of such Borrower in whole or in part, subject to prior notice in
accordance with paragraph (c) of this Section; provided that no Borrower shall
have the right to prepay any Competitive Loan without the prior consent of the
Lender thereof.
(b) If, on the last day of any Interest Period with respect to any
Multicurrency Loan, the Dollar Equivalent of the aggregate principal amount of
the outstanding Multicurrency Loans exceeds the total Multicurrency Commitments,
the Company, on such day, shall cause the Borrowers to prepay one or more
Multicurrency Borrowings in an amount sufficient to eliminate such excess.
(c) The applicable Borrower shall notify the Administrative Agent by
telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurocurrency Revolving Borrowing (other than a Multicurrency
Borrowing), not later than 11:00 a.m., New York City time, three Business Days
before the date of prepayment, (ii) in the case of prepayment of a Multicurrency
Borrowing, not later than 2:00 p.m., London time, three Business Days before the
date of prepayment (or such other applicable time as shall be set forth in the
Alternate Procedures), or (iii) in the case of prepayment of an ABR Revolving
Borrowing, not later than 12:00 (noon), New York City time, on the date of
prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof to
be prepaid; provided that, if a notice of prepayment is given in connection with
a conditional notice of termination of the Commitments as contemplated by
Section 2.07, then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.07. Promptly following
receipt of any such notice relating to a Revolving Borrowing, the Administrative
Agent shall advise the Lenders of the contents thereof. Each partial prepayment
of any Revolving Borrowing shall be in an amount that would be permitted in the
case of an advance of a Revolving Borrowing of the same Type as provided in
Section 2.02. Each prepayment of a Revolving Borrowing shall be applied ratably
to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied
by accrued interest to the extent required by Section 2.11.
SECTION 2.10. Fees. (a) The Company agrees to pay to the Administrative
Agent for the account of each Lender a facility fee, which shall accrue at the
Applicable Rate on the daily amount of the Commitments of such Lender (whether
used or unused) during the period from and including the date hereof to but
excluding the date on which such Commitments terminate; provided that, if such
Lender continues to have any Revolving Credit Exposure after its Commitments
terminate, then such facility fee shall continue to accrue on the daily amount
of such Lender's Revolving Credit Exposure from and including the date on which
its Commitments terminate to but excluding the date on which such Lender ceases
to have any Revolving Credit Exposure. Accrued facility fees shall be payable in
arrears on the last Business Day of March, June, September and December of each
year and on the date on which the Commitments terminate, commencing on the first
such date to occur after the date hereof; provided that any facility fees
accruing after the date on which the Commitments terminate shall be payable on
demand. The facility fees payable hereunder shall be computed on the basis of a
year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).
(b) The Company agrees to pay (i) to the Administrative Agent for the
account of each U.S. Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at the same Applicable
Rate as interest on Eurodollar U.S. Revolving Loans on the average daily amount
of such U.S. Lender's LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date on which such U.S.
Lender's U.S. Commitment terminates and the date on which such U.S Lender ceases
to have any LC Exposure, and (ii) to the Issuing Bank a fronting fee, which
shall accrue at the rate or rates per annum separately agreed upon between the
Company and the Issuing Bank on the average daily amount of the LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Effective Date to but excluding the
later of the date of termination of the U.S. Commitments and the date on which
there ceases to be any LC Exposure, as well as the Issuing Bank's standard fees
with respect to the issuance, amendment, renewal or extension of any Letter of
Credit or processing of drawings thereunder. Participation fees and fronting
fees accrued through and including the last day of March, June, September and
December of each year shall be payable on the third Business Day following such
last day, commencing on the first such date to occur after the Effective Date;
provided that all such fees shall be payable on the date on which the U.S.
Commitments terminate and any such fees accruing after the date on which the
U.S. Commitments terminate shall be payable on demand. Any other fees payable to
the Issuing Bank pursuant to this paragraph shall be payable within 10 days
after demand. All participation fees and fronting fees shall be computed on the
basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).
(c) The Company agrees to pay to the Administrative Agent, for its own
account, fees in the amounts and payable at the times separately agreed upon
between the Company and the Administrative Agent.
(d) All fees payable under paragraphs (a), (b) and (c) above shall be
paid on the dates due, in immediately available funds, to the Administrative
Agent (or to the Issuing Bank, in the case of fees payable to it) for
distribution, in the case of facility fees, to the Lenders. Fees paid shall not
be refundable under any circumstances.
SECTION 2.11. Interest. (a) The Loans comprising each ABR Borrowing
shall bear interest at a rate per annum equal to the Alternate Base Rate.
(b) Except as otherwise specified in the Alternate Procedures with
respect to Multicurrency Loans, the Loans comprising each Eurocurrency Borrowing
shall bear interest at a rate per annum equal to (i) in the case of Eurocurrency
Revolving Loans, the LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate or (ii) in the case of Eurocurrency
Competitive Loans, the LIBO Rate for the Interest Period in effect for such
Borrowing plus the Margin applicable to such Loan.
(c) Each Fixed Rate Loan shall bear interest at a rate per annum equal
to the Fixed Rate applicable to such Loan.
(d) Notwithstanding the foregoing, if any principal of or interest on
any Loan or any fee or other amount payable by any Borrower hereunder is not
paid when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment (and in
lieu of pre- or post-judgment interest that would otherwise accrue), at a rate
per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the
rate otherwise applicable (or most recently applicable) to such Loan as provided
above or (ii) in the case of any other amount, 2% plus the rate applicable to
ABR Loans as provided above.
(e) Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan; provided that (i) interest accrued pursuant
to paragraph (d) of this Section shall be payable on demand, (ii) in the event
of any repayment or prepayment of any Loan (other than a prepayment of an ABR
Revolving Loan prior to the end of the Availability Period), accrued interest on
the principal amount repaid or prepaid shall be payable on the date of such
repayment or prepayment, (iii) in the event of any conversion of any
Eurocurrency Revolving Loan prior to the end of the current Interest Period
therefor, accrued interest on such Loan shall be payable on the effective date
of such conversion and (iv) all accrued interest shall be payable upon
termination of the Commitments.
(f) All interest hereunder shall be computed on the basis of a year of
360 days, except that interest computed by reference to the Alternate Base Rate
at times when the Alternate Base Rate is based on the Prime Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap year), and in
each case shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). The applicable Alternate Base Rate or
LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.
SECTION 2.12. Alternate Rate of Interest. If prior to the commencement
of any Interest Period for a Eurocurrency Borrowing:
(a) the Administrative Agent determines (which determination
shall be conclusive absent manifest error) that adequate and reasonable
means do not exist for ascertaining the LIBO Rate for such Interest
Period; or
(b) the Administrative Agent is advised by the Required
Lenders (or, in the case of a Eurocurrency Competitive Loan, the Lender
that is required to make such Loan) that the LIBO Rate for such
Interest Period will not adequately and fairly reflect the cost to such
Lenders (or Lender) of making or maintaining their Loans (or its Loan)
included in such Borrowing for such Interest Period; or
(c) in the case of a Multicurrency Borrowing, the
Administrative Agent determines (which determination shall be
conclusive absent manifest error) that deposits in the applicable
Committed Currency are not generally available, or cannot be obtained
by the Multicurrency Lenders, in the London interbank market;
then the Administrative Agent shall give notice thereof to the Company and the
applicable Borrower and the Lenders by telephone or telecopy as promptly as
practicable thereafter and, until the Administrative Agent notifies the Company
and the applicable Borrower and the Lenders that the circumstances giving rise
to such notice no longer exist, (i) any Interest Election Request that requests
the conversion of any Revolving Borrowing to, or continuation of any Revolving
Borrowing as, a Eurocurrency Borrowing shall be ineffective, and any
Eurocurrency Borrowing so requested to be continued shall, at the option of the
Company or the applicable Borrower, be repaid on the last day of the then
current Interest Period with respect thereto or shall be converted to an ABR
Borrowing denominated in dollars at the Exchange Rate determined by the
Administrative Agent in accordance with this Agreement on the last day of the
then current Interest Period with respect thereto, (ii) if any Borrowing Request
requests a Eurocurrency Revolving Borrowing, such Borrowing shall be made as an
ABR Borrowing and (iii) any request by any Borrower for a Eurocurrency
Competitive Borrowing or a Multicurrency Borrowing in the affected Committed
Currency shall be ineffective; provided that if the circumstances giving rise to
such notice do not affect all the Lenders, then requests for Eurocurrency
Competitive Borrowings may be made to Lenders that are not affected thereby and,
if the circumstances giving rise to such notice do not affect all applicable
currencies, then requests for Eurocurrency Borrowings may be made in the
currencies that are not affected thereby.
SECTION 2.13. Increased Costs; Illegality. (a) If any Lender shall
determine at any time that it shall be required, by any Governmental Authority
of any jurisdiction of any currency in which any Eurocurrency Loan shall be made
or in which banks are subject for any category of deposits or liabilities
customarily used to fund Eurocurrency Loans in such currency or by reference to
which interest rates applicable to Eurocurrency Loans in such currency are
determined, to maintain reserves in respect of Eurocurrency Loans with respect
to any period when it has a Eurocurrency Loan outstanding hereunder, then such
Lender may require the Company or the applicable Borrower to pay,
contemporaneously with each payment of interest on the Eurocurrency Loans,
additional interest for such period on the related Eurocurrency Loan of such
Lender at a rate per annum equal to the excess of (i)(A) the applicable LIBO
Rate (or such other rate determined pursuant to Section 2.11(d)) divided by (B)
one minus the Eurocurrency Reserve Percentage over (ii) the rate specified in
clause (i)(A) above.
(b) If any Change in Law shall:
(i) impose, modify or deem applicable any reserve, special
deposit or similar requirement against assets of, deposits with or for
the account of, or credit extended by, any Lender (except any such
reserve requirement referred to in Section 2.13(a)); or
(ii) impose on any Lender or the London interbank market (or
any other market in which the funding operations of such Lender shall
be conducted with respect to any Committed Currency) any other
condition affecting this Agreement or the Eurocurrency Loans or Fixed
Rate Loans made by such Lender (except any such reserve requirement
referred to in Section 2.13(a));
and the result thereof shall be to increase the cost to such Lender of making or
maintaining any Eurocurrency Loan or Fixed Rate Loan (or of maintaining its
obligation to make any such Loan), or to reduce the amount of any sum received
or receivable by such Lender in respect thereof by an amount deemed by such
Lender to be material, then the Company will pay or cause the applicable
Borrower to pay to such Lender such additional amount or amounts as will
compensate such Lender for such additional costs incurred or reduction suffered.
(c) If any Lender or the Issuing Bank determines that any Change in Law
regarding capital requirements has or would have the effect of reducing the rate
of return on such Lender's or the Issuing Bank's capital or on the capital of
such Lender's or the Issuing Bank's holding company, if any, as a consequence of
this Agreement or the Loans made by, or participations in Letters of Credit held
by such Lender, or the Letters of Credit issued by the Issuing Bank, to a level
below that which such Lender or the Issuing Bank or such Lender's or the Issuing
Bank's holding company could have achieved but for such Change in Law (taking
into consideration such Lender's or the Issuing Bank's policies and the policies
of such Lender's or the Issuing Bank's holding company with respect to capital
adequacy) by an amount deemed by such Lender or the Issuing Bank, as the case
may be, to be material, then from time to time the Company will pay or cause the
applicable Borrower to pay to such Lender or the Issuing Bank such additional
amount or amounts as will compensate such Lender or the Issuing Bank or such
Lender's or the Issuing Bank's holding company for any such reduction suffered.
(d) A certificate of a Lender or the Issuing Bank setting forth the
amount or amounts necessary to compensate such Lender or the Issuing Bank or
such Lender's or the Issuing Bank's holding company, as the case may be, as
specified in paragraph (a), (b) or (c) of this Section, and setting forth in
reasonable detail the manner in which such amount or amounts shall have been
determined, shall be delivered to the Company and shall be conclusive absent
manifest error. The Company shall pay or cause the applicable Borrower to pay
such Lender or the Issuing Bank the amount shown as due on any such certificate
within 10 Business Days after receipt thereof.
(e) Failure or delay on the part of any Lender or the Issuing Bank to
demand compensation pursuant to this Section shall not constitute a waiver of
such Lender's or the Issuing Bank's right to demand such compensation; provided
that the Company shall not be required to compensate a Lender or the Issuing
Bank pursuant to this Section for any increased costs or reductions incurred
more than 270 days prior to the date that such Lender or the Issuing Bank
notifies the Company of the Change in Law giving rise to such increased costs or
reductions and of such Lender's or the Issuing Bank's intention to claim
compensation therefor; provided further that, if the Change in Law giving rise
to such increased costs or reductions is retroactive, then the 270-day period
referred to above shall be extended to include the period of retroactive effect
thereof.
(f) Notwithstanding the foregoing provisions of this Section, a Lender
shall not be entitled to compensation pursuant to this Section in respect of any
Competitive Loan if the Change in Law that would otherwise entitle it to such
compensation shall have been publicly announced or be otherwise known to it
prior to submission of the Competitive Bid pursuant to which such Loan was made.
(g) Notwithstanding any other provision of this Agreement, if, after
the date hereof, (i) any Change in Law shall make it unlawful for any
Multicurrency Lender to make or maintain any Multicurrency Loan or to give
effect to its obligations as contemplated hereby with respect to any
Multicurrency Loan, or (ii) there shall have occurred any change in national or
international financial, political or economic conditions (including the
imposition of or any change in exchange controls) or currency exchange rates
which would make it impracticable for the Multicurrency Lenders holding a
majority in interest of the outstanding Multicurrency Loans denominated in the
affected Committed Currency to make or maintain Multicurrency Loans denominated
in such Committed Currency to, or for the account of, any Borrower, then, by
written notice to the Company and the applicable Borrower and to the
Administrative Agent:
(i) such Lender may declare that Multicurrency Loans (in the
affected currency or currencies) will not thereafter (for the duration
of such unlawfulness) be made by such Lender hereunder (or be continued
for additional Interest Periods), whereupon any request for a
Multicurrency Borrowing (in the affected currency or currencies) (or to
continue a Multicurrency Borrowing (in the affected currency or
currencies) for an additional Interest Period) shall, as to such Lender
only, be deemed a request for a Eurocurrency Loan denominated in
dollars (or a request to convert a Multicurrency Loan into a
Eurocurrency Loan denominated in dollars on the last day of the then
current Interest Period with respect thereto), unless such declaration
shall be subsequently withdrawn; and
(ii) such Lender may require that all outstanding
Multicurrency Loans (in the affected currency or currencies) made by it
be converted to Loans denominated in dollars, in which event all such
Multicurrency Loans (in the affected currency or currencies) shall be
converted to Loans denominated in dollars as of the effective date of
such notice as provided in paragraph (h) below and at the Exchange Rate
on the date of such conversion.
In the event any Lender shall exercise its rights under (i) or (ii) above, all
payments and prepayments of principal that would otherwise have been applied to
repay the Multicurrency Loans that would have been made by such Lender or the
converted Multicurrency Loans of such Lender shall instead be applied to repay
the Eurocurrency Loans denominated in dollars, as the case may be, made by such
Lender in lieu of, or resulting from the conversion of, such Multicurrency
Loans.
(h) For purposes of this Section, a notice to the Company and the
applicable Borrower by any Lender shall be effective as to each Multicurrency
Loan made by such Lender, if lawful, on the last day of the Interest Period
currently applicable to such Eurocurrency Loan; in all other cases such notice
shall be effective on the date of receipt thereof by the Company and the
applicable Borrower.
SECTION 2.14. Break Funding Payments. In the event of (a) the payment
of any principal of any Eurocurrency Loan or Fixed Rate Loan other than on the
last day of an Interest Period applicable thereto (including as a result of an
Event of Default but excluding any prepayment pursuant to Section 2.05(b)), (b)
the conversion of any Eurocurrency Loan other than on the last day of the
Interest Period applicable thereto, (c) the conversion of any Multicurrency Loan
to a dollar denominated Loan pursuant to Section 2.12(i) or Section 2.13(g)(ii),
(d) the failure to borrow, convert, continue or prepay any Eurocurrency Loan on
the date specified in any notice delivered pursuant hereto (regardless of
whether such notice is permitted to be revocable under Section 2.09(c) and is
revoked in accordance herewith), (e) the failure to borrow any Competitive Loan
after accepting the Competitive Bid to make such Loan, or (f) the assignment of
any Eurocurrency Loan or Fixed Rate Loan other than on the last day of the
Interest Period applicable thereto as a result of a request by the Company
pursuant to Section 2.17, then, in any such event, the Company shall compensate
each Lender for the loss, cost and expense attributable to such event. In the
case of a Eurocurrency Loan, such loss, cost or expense to any Lender shall be
an amount determined by such Lender to be the excess, if any, of (i) the amount
of interest that would have accrued on the principal amount of such Loan had
such event not occurred, at the LIBO Rate that would have been applicable to
such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest that would accrue on such principal
amount for such period at the interest rate which such Lender would bid were it
to bid, at the commencement of such period, for a deposit equal to the principal
amount of such Loan (and in the same currency as such Loan) for such period from
other banks in the eurodollar market at the commencement of such period. A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section shall be delivered to the
Company and the applicable Borrower and shall be conclusive absent manifest
error. The Company shall pay or shall cause the applicable Borrower to pay to
such Lender the amount shown as due on any such certificate within 10 Business
Days after receipt thereof.
SECTION 2.15. Taxes. (a) Any and all payments by or on account of any
obligation of any Borrower hereunder shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if any
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.15 (a)) the Administrative Agent,
Lender or the Issuing Bank (as the case may be) receives an amount equal to the
sum it would have received had no such deductions been made, (ii) such Borrower
shall make such deductions and (iii) such Borrower shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
law.
(b) In addition, the Borrowers shall pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.
(c) Without duplication of any amounts payable by any Borrower under
Section 2.15(a) or Section 2.15(b), the applicable Borrower shall indemnify the
Administrative Agent, each Lender and the Issuing Bank, within 10 Business Days
after written demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes paid by the Administrative Agent, such Lender or the Issuing Bank,
as the case may be, on or with respect to any payment by or on account of any
obligation of such Borrower hereunder (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this
Section 2.15(c)), and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or
liability prepared in good faith and delivered to the Company by a Lender or the
Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a
Lender or the Issuing Bank, shall be conclusive absent manifest error.
(d) As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by any Borrower to a Governmental Authority, such Borrower shall
deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.
(e) Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax with respect to payments under this Agreement
pursuant to the law of the Relevant Jurisdiction or any treaty (including any
protocol thereto or official exchange of notes by applicable governmental
authorities with respect thereto) to which the Relevant Jurisdiction is a party
shall deliver to the Company and the applicable Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Company as will permit such payments to be made
without withholding or with a reduced rate of withholding.
(f) If a Lender, the Issuing Bank or the Administrative Agent receives
a refund from a taxing authority in respect of any Indemnified Taxes or Other
Taxes for which it has been indemnified by a Borrower, or with respect to which
any Borrower has paid additional amounts pursuant to this Section 2.15, it shall
within 30 days from the date of such receipt pay over the amount of such refund
to the applicable Borrower (but only to the extent of indemnity payments made,
or additional amounts paid, by the applicable Borrower under this Section 2.15
with respect to the Indemnified Taxes or Other Taxes giving rise to such
refund), net of all reasonable out-of-pocket expenses of such Lender, the
Issuing Bank or the Administrative Agent and without interest (other than
interest paid by the relevant taxing authority with respect to such refund);
provided, however, that each Borrower upon the request of such Lender, the
Issuing Bank or the Administrative Agent agrees to repay the amount paid over to
such Borrower (plus penalties, interest or other charges) to such Lender, the
Issuing Bank or the Administrative Agent in the event such Lender, the Issuing
Bank or the Administrative Agent is required to repay such refund to such taxing
authority.
(g) Nothing contained in this Section 2.15 shall require any Lender,
the Issuing Bank or Administrative Agent to make available its tax returns or
any other information relating to Taxes or Other Taxes that such Lender, the
Issuing Bank or Administrative Agent deems to be confidential; provided,
however, that any Taxes or Other Taxes shall, to the extent resulting from the
Lender's, the Issuing Bank's or the Administrative Agent's failure to make
available any such tax returns, be deemed to be Excluded Taxes.
SECTION 2.16. Payments Generally; Pro Rata Treatment; Sharing of
Set-offs. (a) Each Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest or fees or under Section 2.13, 2.14 or
2.15 or otherwise) from a Payment Location in the United States or the United
Kingdom prior to 1:00 p.m., New York City time (or 1:00 p.m., London time, in
respect of principal of or interest on any Multicurrency Loan) (or, in the case
of any Multicurrency Loan, from such other Payment Location or by such other
time as shall be specified in the Alternate Procedures), on the date when due,
in immediately available funds, without setoff or counterclaim. Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made in dollars to the Administrative Agent at its offices at One Chase
Manhattan Plaza, New York, New York (or, in the applicable Committed Currency to
the Administrative Agent at its offices at Trinity Tower, 9 Xxxxxx Xxxxx Street,
London, or at such other offices as shall be specified in the Alternate
Procedures), except payments to be made directly to the Issuing Bank as
expressly provided herein and except that payments pursuant to Sections 2.13,
2.14, 2.15 and 10.03 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any such payments received by it for the
account of any other Person to the appropriate recipient promptly following
receipt thereof. If any payment hereunder shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding
Business Day, and, in the case of any payment accruing interest, interest
thereon shall be payable for the period of such extension at the same rate then
in effect with respect thereto. All U.S. Revolving Loans and Competitive Loans
hereunder shall be denominated and made, and all payments hereunder in respect
thereof (whether of principal, interest, fees or otherwise) shall be made, in
dollars. All Multicurrency Loans hereunder shall be denominated and made, and
all payments of principal and interest (but not fees, which shall be payable in
dollars) hereunder in respect thereof shall be made, in the applicable Committed
Currencies, except as otherwise expressly provided herein.
(b) If at any time insufficient funds are received by and available to
the Administrative Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest and fees then due hereunder, such funds shall be applied
(i) first, to pay interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (ii) second, to pay principal and unreimbursed LC
Disbursements then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal and unreimbursed LC Disbursements then
due to such parties.
(c) If any Lender shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans or participations in LC Disbursements
resulting in such Lender obtaining a proportionately greater reduction of its
Revolving Credit Exposure than the reduction obtained by any other Lender, then
the Lender obtaining such greater reduction shall purchase (for cash at face
value) participations in the Revolving Loans and participations in LC
Disbursments of other Lenders to the extent necessary so that the benefit of all
such payments shall be shared by the Lenders ratably in accordance with their
Revolving Credit Exposures; provided that (i) if any such participations are
purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment made
by any Borrower pursuant to and in accordance with the express terms of this
Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations
in LC Disbursements to any assignee or participant, other than to any Borrower
or any Subsidiary or Affiliate thereof (as to which the provisions of this
paragraph shall apply). Each Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise
against such Borrower rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such Borrower
in the amount of such participation.
(d) Unless the Administrative Agent shall have received notice from the
Company or the applicable Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders or the Issuing Bank
hereunder that such Borrower will not make such payment, the Administrative
Agent may assume that such Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to the
Lenders or the Issuing Bank the amount due. In such event, if such Borrower has
not in fact made such payment, then each of the Lenders or the Issuing Bank, as
the case may be, severally agrees to repay to the Administrative Agent forthwith
on demand the amount so distributed to such Lender or the Issuing Bank with
interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative
Agent, (i) in the case of a Borrowing in dollars or an LC Disbursement, at the
Federal Funds Effective Rate and (ii) in the case of a Borrowing in a Committed
Currency, at the rate reasonably determined by the Administrative Agent to be
the cost to it of funding such amount.
(e) If any Lender or the Issuing Bank shall fail to make any payment
required to be made by it pursuant to Section 2.05(b) or 2.16(d), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Lender or the Issuing Bank, as the case may be, to
satisfy such Lender's or the Issuing Bank's obligations under such Sections
until all such unsatisfied obligations are fully paid.
SECTION 2.17. Mitigation Obligations; Replacement of Lenders. (a) If
any Lender demands compensation or delivers a certificate under Section 2.13, or
if any Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.15,
then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 2.13 or 2.15, as the case may be,
in the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Company
hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.
(b) If any Lender demands compensation or delivers a certificate under
Section 2.13, or if any Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.15, or if any Lender defaults in its obligation to fund Loans
hereunder, or if any Multicurrency Lender does not approve any currency as a
Committed Currency, then the Company may, at its sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in Section 10.04), all its interests, rights and
obligations under this Agreement (other than any outstanding Competitive Loans
held by it) to an assignee that shall assume such obligations (which assignee
may be another Lender, if a Lender accepts such assignment); provided that (i)
if the assignee is not a Lender, the Company shall have received the prior
written consent of the Administrative Agent (and, if a U.S. Commitment is being
assigned, the Issuing Bank), which consent shall not unreasonably be withheld,
(ii) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans (other than Competitive Loans) and
participations in LC Disbursements, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Company (in the
case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.13 or payments required
to be made pursuant to Section 2.15, such assignment will result in a reduction
in such compensation or payments. A Lender shall not be required to make any
such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Company or such
Borrower to require such assignment and delegation cease to apply.
SECTION 2.18. Borrowing Subsidiaries. On or after the Effective Date,
the Company may designate any Wholly Owned Foreign Subsidiary as a Borrowing
Subsidiary by delivery to the Administrative Agent of a Borrowing Subsidiary
Agreement executed by such Subsidiary and the Company, and upon such delivery
such Subsidiary shall for all purposes of this Agreement be a Borrowing
Subsidiary and a party to this Agreement. The Company may cause any Borrowing
Subsidiary to cease to be a party to this Agreement by executing and delivering
to the Administrative Agent a Borrowing Subsidiary Termination with respect to
such Subsidiary, whereupon such Subsidiary shall cease to be a Borrowing
Subsidiary and a party to this Agreement. Notwithstanding the foregoing, no
Borrowing Subsidiary Termination will become effective as to any Borrowing
Subsidiary at a time when any principal of or interest on any Loan made directly
to such Borrowing Subsidiary shall be outstanding hereunder; provided that such
Borrowing Subsidiary Termination shall be effective to terminate such Borrowing
Subsidiary's right to make further Borrowings under this Agreement. As soon as
practicable upon receipt of a Borrowing Subsidiary Agreement, the Administrative
Agent shall send a copy thereof to each Lender.
SECTION 2.19. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Company may request the issuance of Letters of
Credit denominated in dollars for its own account, in a form reasonably
acceptable to the Administrative Agent and the Issuing Bank, at any time and
from time to time during the Availability Period. In the event of any
inconsistency between the terms and conditions of this Agreement and the terms
and conditions of any form of Letter of Credit application or other agreement
submitted by the Company to, or entered into by the Company with, the Issuing
Bank relating to any Letter of Credit, the terms and conditions of this
Agreement shall control.
(b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit) the Company shall hand
deliver or telecopy (or transmit by electronic communication, if arrangements
for doing so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (reasonably in advance of the requested date of issuance,
amendment, renewal or extension) a notice requesting the issuance of a Letter of
Credit, or identifying the Letter of Credit to be amended, renewed or extended,
and specifying the date of issuance, amendment, renewal or extension (which
shall be a Business Day), the date on which such Letter of Credit is to expire
(which shall comply with paragraph (c) of this Section), the amount of such
Letter of Credit, the name and address of the beneficiary thereof and such other
information as shall be necessary to prepare, amend, renew or extend such Letter
of Credit. If requested by the Issuing Bank, the Company also shall submit a
Letter of Credit application on the Issuing Bank's standard form in connection
with any request for a Letter of Credit. A Letter of Credit shall be issued,
amended, renewed or extended only if (and upon issuance, amendment, renewal or
extension of each Letter of Credit the Company shall be deemed to represent and
warrant that), after giving effect to such issuance, amendment, renewal or
extension (i) the LC Exposure shall not exceed $100,000,000 and (ii) the sum of
the total U.S. Revolving Credit Exposures plus the aggregate principal amount of
outstanding Competitive Loans shall not exceed the total U.S. Commitments.
(c) Expiration Date. Each Letter of Credit shall expire at or prior to
the close of business on the earlier of (i) the date one year after the date of
the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension) and (ii) the date
that is five Business Days prior to the Maturity Date.
(d) Participations. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the Issuing Bank or the U.S. Lenders, the Issuing
Bank hereby grants to each U.S. Lender, and each U.S. Lender hereby acquires
from the Issuing Bank, a participation in such Letter of Credit equal to such
U.S. Lender's Applicable Percentage of the aggregate amount available to be
drawn under such Letter of Credit. In consideration and in furtherance of the
foregoing, each U.S. Lender hereby absolutely and unconditionally agrees to pay
to the Administrative Agent, for the account of the Issuing Bank, such U.S.
Lender's Applicable Percentage of each LC Disbursement made by the Issuing Bank
and not reimbursed by the Company on the date due as provided in paragraph (e)
of this Section, or of any reimbursement payment required to be refunded to the
Company for any reason. Each U.S. Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever.
(e) Reimbursement. If the Issuing Bank shall make any LC Disbursement
in respect of a Letter of Credit, the Company shall reimburse such LC
Disbursement by paying to the Administrative Agent an amount equal to such LC
Disbursement not later than 12:00 noon, New York City time, on the date that
such LC Disbursement is made, if the Company shall have received notice of such
LC Disbursement prior to 10:00 a.m., New York City time, on such date, or, if
such notice has not been received by the Company prior to such time on such
date, then not later than 12:00 noon, New York City time, on (i) the Business
Day that the Company receives such notice, if such notice is received prior to
10:00 a.m., New York City time, on the day of receipt, or (ii) the Business Day
immediately following the day that the Company receives such notice, if such
notice is not received prior to such time on the day of receipt; provided that
the Company may, subject to the conditions to borrowing set forth herein,
request in accordance with Section 2.03 that such payment be financed with an
ABR U.S. Revolving Borrowing in an equivalent amount and, to the extent so
financed, the Company's obligation to make such payment shall be discharged and
replaced by the resulting ABR U.S. Revolving Borrowing. If the Company fails to
make such payment when due, the Administrative Agent shall notify each U.S.
Lender of the applicable LC Disbursement, the payment then due from the Company
in respect thereof and such U.S. Lender's Applicable Percentage thereof.
Promptly following receipt of such notice, each U.S. Lender shall pay to the
Administrative Agent its Applicable Percentage of the payment then due from the
Company, in the same manner as provided in Section 2.05 with respect to Loans
made by such U.S. Lender (and Section 2.05 shall apply, mutatis mutandis, to the
payment obligations of the U.S. Lenders), and the Administrative Agent shall
promptly pay to the Issuing Bank the amounts so received by it from the U.S.
Lenders. Promptly following receipt by the Administrative Agent of any payment
from the Company pursuant to this paragraph, the Administrative Agent shall
distribute such payment to the Issuing Bank or, to the extent that U.S. Lenders
have made payments pursuant to this paragraph to reimburse the Issuing Bank,
then to such U.S. Lenders and the Issuing Bank as their interests may appear.
Any payment made by a U.S. Lender pursuant to this paragraph to reimburse the
Issuing Bank for any LC Disbursement (other than the funding of ABR U.S.
Revolving Loans as contemplated above) shall not constitute a Loan and shall not
relieve the Company of its obligation to reimburse such LC Disbursement.
(f) Obligations Absolute. The Company's obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of
Credit against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or equitable discharge of, or
provide a right of setoff against, the Company's obligations hereunder. Neither
the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their
Related Parties, shall have any liability or responsibility by reason of or in
connection with the issuance or transfer of any Letter of Credit or any payment
or failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the
Issuing Bank; provided that the foregoing shall not be construed to excuse the
Issuing Bank from liability to the Company to the extent of any direct damages
(as opposed to consequential damages, claims in respect of which are hereby
waived by the Company to the extent permitted by applicable law) suffered by the
Company that are caused by the Issuing Bank's failure to exercise care when
determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree that,
in the absence of gross negligence or wilful misconduct on the part of the
Issuing Bank (as finally determined by a court of competent jurisdiction), the
Issuing Bank shall be deemed to have exercised care in each such determination.
In furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented which appear on their
face to be in substantial compliance with the terms of a Letter of Credit, the
Issuing Bank may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further investigation, regardless of
any notice or information to the contrary, or refuse to accept and make payment
upon such documents if such documents are not in strict compliance with the
terms of such Letter of Credit.
(g) Disbursement Procedures. The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit. The Issuing Bank shall promptly notify the
Administrative Agent and the Company by telephone (confirmed by telecopy) of
such demand for payment and whether the Issuing Bank has made or will make an LC
Disbursement thereunder; provided that any failure to give or delay in giving
such notice shall not relieve the Company of its obligation to reimburse the
Issuing Bank and the U.S. Lenders with respect to any such LC Disbursement.
(h) Interim Interest. If the Issuing Bank shall make any LC
Disbursement, then, unless the Company shall reimburse such LC Disbursement in
full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Company reimburses such LC Disbursement,
at the rate per annum then applicable to ABR U.S. Revolving Loans; provided
that, if the Company fails to reimburse such LC Disbursement when due pursuant
to paragraph (e) of this Section, then Section 2.11(d) shall apply. Interest
accrued pursuant to this paragraph shall be for the account of the Issuing Bank,
except that interest accrued on and after the date of payment by any U.S. Lender
pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be
for the account of such U.S. Lender to the extent of such payment.
(i) Replacement of the Issuing Bank. The Issuing Bank may be replaced
at any time by written agreement among the Company, the Administrative Agent,
the replaced Issuing Bank and the successor Issuing Bank. The Administrative
Agent shall notify the U.S. Lenders of any such replacement of the Issuing Bank.
At the time any such replacement shall become effective, the Company shall pay
all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to
Section 2.10(b). From and after the effective date of any such replacement, (i)
the successor Issuing Bank shall have all the rights and obligations of the
Issuing Bank under this Agreement with respect to Letters of Credit to be issued
thereafter and (ii) references herein to the term "Issuing Bank" shall be deemed
to refer to such successor or to any previous Issuing Bank, or to such successor
and all previous Issuing Banks, as the context shall require. After the
replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain
a party hereto and shall continue to have all the rights and obligations of an
Issuing Bank under this Agreement with respect to Letters of Credit issued by it
prior to such replacement, but shall not be required to issue additional Letters
of Credit.
(j) Cash Collateralization. If any Event of Default shall occur and be
continuing, on the Business Day that the Company receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Lenders with LC Exposure representing greater than 50% of
the total LC Exposure) demanding the deposit of cash collateral pursuant to this
paragraph, the Company shall deposit in an account with the Administrative
Agent, in the name of the Administrative Agent and for the benefit of the
Lenders, an amount in cash equal to the LC Exposure as of such date plus any
accrued and unpaid interest thereon; provided that the obligation to deposit
such cash collateral shall become effective immediately, and such deposit shall
become immediately due and payable, without demand or other notice of any kind,
upon the occurrence of any Event of Default with respect to the Company
described in clause (h) or (i) of Article VII. Such deposit shall be held by the
Administrative Agent as collateral for the payment and performance of the
obligations of the Company under this Agreement. The Administrative Agent shall
have exclusive dominion and control, including the exclusive right of
withdrawal, over such account. Other than any interest earned on the investment
of such deposits, which investments shall be made at the option and sole
discretion of the Administrative Agent and at the Company's risk and expense,
such deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in such account shall be
applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Company for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Lenders with LC Exposure
representing greater than 50% of the total LC Exposure), be applied to satisfy
other obligations of the Company under this Agreement. If the Company is
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Company within three Business Days after all
Events of Default have been cured or waived.
ARTICLE III
Representations and Warranties
Each Borrower represents and warrants to the Lenders that:
SECTION 3.01. Organization; Powers. Each of the Borrower and the
Subsidiaries is duly organized, validly existing and in good standing, if
applicable, under the laws of the jurisdiction of its organization, has all
requisite power and authority to carry on its business as conducted on the date
hereof and is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required, except in each case where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.
SECTION 3.02. Authorization; Enforceability. The Transactions are
within the Company's (and, as applicable, each Borrowing Subsidiary's) corporate
or partnership powers and have been duly authorized by all necessary corporate
or partnership and, if required, stockholder or partner action. This Agreement
has been duly executed and delivered by the Company and each Borrowing
Subsidiary (other than any Borrowing Subsidiary that has become a party hereto
by executing and delivering a Borrowing Subsidiary Agreement) and constitutes a
legal, valid and binding obligation of the Company and each such Borrowing
Subsidiary, and each Borrowing Subsidiary Agreement (as to which a Borrowing
Subsidiary Termination has not become effective) has been duly executed and
delivered by the Company and the Borrowing Subsidiary party thereto and
constitutes a legal, valid and binding obligation of the Borrowing Subsidiary
thereunder, in each case enforceable in accordance with its terms.
SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions
(a) do not require any consent or approval of, registration or filing with, or
any other action by, any Governmental Authority, except such as have been
obtained or made and are in full force and effect, except where the failure to
obtain such consent or approval or make such registration or filing could not
reasonably be expected to result in a Material Adverse Effect, (b) will not
violate any applicable law or regulation or the charter, by-laws or other
organizational documents of any Borrower or any order of any Governmental
Authority, (c) will not violate or result in a default under any indenture,
agreement or other instrument binding upon any Borrower or its assets, or give
rise to a right thereunder to require any payment to be made by any Borrower,
except that the repayment of Indebtedness under the Existing Credit Agreement of
Fort Xxxxxx may constitute or result in a Purchase Termination Event and an
Early Amortization Event under the Receivable Sales Agreement, dated as of
September 28, 0000, xxxxx Xxxx Xxxxxx, as seller and servicer, and FHC Funding
Corporation and the related pooling and servicing agreements and trust
certificates (the "FHC Facility") (which means that receivables will no longer
be sold under the FHC Facility and, upon collection of receivables already sold,
the FHC Facility will terminate) and (d) will not result in the creation or
imposition of any Lien on any asset of the Company or any of its Subsidiaries.
SECTION 3.04. Financial Condition; No Material Adverse Change. (a) Each
of the Company and Fort Xxxxxx has heretofore furnished to the Lenders its
consolidated balance sheet and statements of income, stockholders' equity and
cash flows (i) as of and for the fiscal years ended (A) in the case of the
Company, December 25, 1994, December 31, 1995, and December 29, 1996, reported
on by Coopers & Xxxxxxx L.L.P., independent public accountants, and (B) in the
case of Fort Xxxxxx, December 31, 1994, 1995 and 1996, reported on by Xxxxxx
Xxxxxxxx LLP, independent public accountants, and (ii) as of and for the fiscal
quarter and the portion of the fiscal year ended (A) in the case of the Company,
March 30, 1997, and (B) in the case of Fort Xxxxxx, March 31, 1997, in each
case, certified by the appropriate Financial Officer. Such financial statements
present fairly, in all material respects, the financial position and results of
operations and cash flows of the Company and its consolidated Subsidiaries and
Fort Xxxxxx and its consolidated subsidiaries, as the case may be, as of such
dates and for such periods in accordance with GAAP, subject to year-end audit
adjustments and the absence of footnotes in the case of the statements referred
to in clause (ii) above.
(b) The Company has heretofore furnished to the Lenders its unaudited
pro forma consolidated balance sheet and statements of income as of and for the
fiscal quarter ended March 30, 1997. Such balance sheet was prepared giving
effect to the Merger as if it had occurred on such date and such other financial
statements were prepared giving effect to the Merger as if it had occurred on
January 1, 1997. Such pro forma financial statements have been prepared in good
faith by the Company, based on assumptions believed by the Company to be
reasonable on the date hereof and at the time made, and present fairly on a pro
forma basis (subject to normal year-end adjustments) the estimated financial
position and operations of the Company and its Subsidiaries as of the dates set
forth above, assuming that the Merger had actually occurred on the dates set
forth above.
(c) Since December 29, 1996, there has been no material adverse change
in the business, assets, results of operations or financial condition of the
Company and its Subsidiaries (including Fort Xxxxxx and its subsidiaries), taken
as a whole.
SECTION 3.05. Properties. (a) Each Borrower and its subsidiaries has
good title to, or valid leasehold interests in, all its real and personal
property material to its business, except for defects in title that do not
interfere with its ability to conduct its business as currently conducted or to
utilize such properties for their intended purposes and except for defects
which, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.
(b) Each Borrower and its subsidiaries owns, or is licensed to use, all
trademarks, tradenames, copyrights, patents and other intellectual property
material to its business, and the use thereof by the Company and its
Subsidiaries does not infringe upon the rights of any other Person, except for
any such infringements that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.
SECTION 3.06. Litigation and Environmental Matters. (a) Except for the
Disclosed Matters, there are no actions, suits or proceedings by or before any
arbitrator or Governmental Authority pending against or, to the knowledge of any
Borrower, threatened against or affecting any Borrower or any of its
subsidiaries (i) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect or (ii)
that involve this Agreement, any Borrowing Subsidiary Agreement or the
Transactions.
(b) Except for the Disclosed Matters and except with respect to any
other matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, neither any Borrower nor any of
its subsidiaries (i) has failed to comply with any Environmental Law or to
obtain, maintain or comply with any permit, license or other approval required
under any Environmental Law, (ii) has become subject to any Environmental
Liability or (iii) has received notice of any claim with respect to any
Environmental Liability.
SECTION 3.07. Compliance with Laws and Agreements. Each Borrower and
its subsidiaries is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. No Default has occurred and is
continuing.
SECTION 3.08. Investment and Holding Company Status. Neither any
Borrower nor any of its subsidiaries is (a) an "investment company" as defined
in, or subject to regulation under, the Investment Company Act of 1940 or (b) a
"holding company" as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.
SECTION 3.09. Taxes. Each Borrower and its subsidiaries has timely
filed or caused to be filed all Tax returns and reports required to have been
filed and has paid or caused to be paid all Taxes required to have been paid by
it, except (a) Taxes that are being contested as to the fact or the amount of
liability, the validity of the tax or otherwise in good faith by appropriate
proceedings and for which such Borrower or such Subsidiary, as applicable, has
set aside on its books reserves or other appropriate provisions, if any, as
shall be required in conformity with GAAP or (b) to the extent that the failure
to do so could not reasonably be expected to result in a Material Adverse
Effect.
SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events for
which liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect. As of the date of the most recent financial
statements reflecting the following amounts, the amount by which the present
value of all accumulated benefit obligations of all underfunded Plans (based on
the assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) exceeds the fair market value of the assets of all such Plans (such
excess being referred to as the "Shortfall") would not reasonably be expected to
result in a Material Adverse Effect if the Company or any Subsidiary was
immediately required to fully fund such Shortfall.
SECTION 3.11. Disclosure. Neither the Information Memorandum nor any of
the other reports, financial statements, certificates or other written
information furnished by or on behalf of any Borrower to the Administrative
Agent or any Lender in connection with the negotiation of this Agreement or any
Borrowing Subsidiary Agreement or delivered hereunder or thereunder, contains
any material misstatement of fact or omits to state any material fact necessary
to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided that, with respect to projected
financial information, the Borrowers represent only that such information was
prepared in good faith based upon assumptions believed to be reasonable at the
time.
SECTION 3.12. Federal Reserve Regulations. (a) Neither the Company
nor any of the Subsidiaries is engaged principally, or as one of its more
important activities, in the business of extending credit for the purposes of
buying or carrying Margin Stock.
(b) No part of the proceeds of any Loan will be used, whether directly
or indirectly, and whether immediately, incidentally or ultimately, for any
purpose that entails a violation of, or that is inconsistent with, the
provisions of the Regulations of the Board, including Regulation G, T, U or X.
SECTION 3.13. Designated Senior Indebtedness.The Obligations constitute
"Designated Senior Indebtedness" under and as defined in the Fort Xxxxxx
Subordinated Note Indenture.
ARTICLE IV
Conditions
SECTION 4.01. Effective Date. The obligations of the Lenders to make
Loans hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 10.02):
(a) The Administrative Agent (or its counsel) shall have
received from each party hereto either (i) a counterpart of this
Agreement signed on behalf of such party or (ii) written evidence
satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page of this Agreement) that such
party has signed a counterpart of this Agreement.
(b) The Administrative Agent shall have received favorable
written opinions (addressed to the Administrative Agent and the Lenders
and dated the Effective Date) of XxXxxxx Xxxxx Battle & Xxxxxx LLP and
Wachtell, Lipton, Xxxxx & Xxxx, counsel for the Company, Xxxxxx X.
Xxxx, Xx., Managing Counsel for Fort Xxxxxx, Xxxxxxxx & Sterling,
counsel for Fort Xxxxxx, XxXxxxx Xxxxx Battle & Xxxxxx LLP, counsel for
Xxxxx River Services, and De Brauw Blackstone Westbroek, counsel for
Jamont, substantially in the form of Exhibits X-0, X-0, X-0, X-0, B-5
and B-6, respectively, and covering such other matters relating to the
Borrowers, this Agreement or the Transactions as the Required Lenders
shall reasonably request. The Borrowers hereby request such counsel to
deliver such opinions.
(c) The Administrative Agent shall have received such
documents and certificates as the Administrative Agent or its counsel
may reasonably request relating to the organization, existence and good
standing of the Borrowers, the authorization of the Transactions and
any other legal matters relating to the Borrowers, this Agreement or
the Transactions, all in form and substance reasonably satisfactory to
the Administrative Agent and its counsel.
(d) The Merger shall have been consummated in accordance with
the Merger Agreement and applicable law, all requisite Governmental
Authorities and third parties shall have approved or consented to the
Transactions, except where the failure to obtain such approval or
consent could not reasonably be expected to result in a Material
Adverse Effect, and there shall be no governmental or judicial action,
actual or threatened, that has or could have a reasonable likelihood of
restraining, preventing or imposing burdensome conditions on the
Transactions.
(e) Concurrently with the first Borrowing, the Borrowers shall
have repaid, or made adequate provision to repay, in full the principal
of all loans outstanding, interest thereon and other amounts due and
payable under the Existing Credit Agreements and the Administrative
Agent shall have received duly executed documentation either evidencing
or necessary for (i) the termination of each Existing Credit Agreement,
(ii) the cancelation of all commitments thereunder and (iii) the
release of all Liens granted by any Borrower or any subsidiary thereof
in connection therewith.
(f) The Administrative Agent shall have received a
certificate, dated the Effective Date and signed by the Chairman, the
President, a Vice President or a Financial Officer of the Company,
confirming compliance with the conditions set forth in paragraphs (a)
and (b) of Section 4.02.
(g) The Administrative Agent shall have received all fees and
other amounts due and payable hereunder on or prior to the Effective
Date, including, to the extent invoiced, reimbursement or payment of
all out-of-pocket expenses required to be reimbursed or paid by the
Company hereunder.
The Administrative Agent shall notify the Company and the Lenders of the
Effective Date, and such notice shall be conclusive and binding. Notwithstanding
the foregoing, the obligations of the Lenders to make Loans hereunder shall not
become effective unless each of the foregoing conditions is satisfied (or waived
pursuant to Section 10.02) at or prior to 3:00 p.m., New York City time, on
February 28, 1998 (and, in the event such conditions are not so satisfied or
waived, the Commitments shall terminate at such time).
SECTION 4.02. Each Credit Event. The obligation of each Lender to make
a Loan on the occasion of any Borrowing, and of the Issuing Bank to issue,
amend, renew or extend any Letter of Credit, is subject to the satisfaction of
the following conditions:
(a) The representations and warranties of the Borrowers set
forth in this Agreement shall be true and correct on and as of the date
of such Borrowing or the date of issuance, amendment, renewal or
extension of such Letter of Credit, except to the extent such
representations and warranties expressly relate to an earlier date in
which case such representations and warranties shall be true and
correct on and as of such earlier date.
(b) At the time of and immediately after giving effect to such
Borrowing or the issuance, amendment, renewal or extension of such
Letter of Credit, no Default shall have occurred and be continuing.
Each Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by the
Company and the applicable Borrower on the date thereof as to the matters
specified in paragraphs (a) and (b) of this Section.
SECTION 4.03. Each Borrowing Subsidiary Credit Event. The obligation of
each Lender to make Loans hereunder to any Borrowing Subsidiary that becomes a
party hereto after the Effective Date is subject to the satisfaction of the
following conditions:
(a) The Administrative Agent (or its counsel) shall have
received from each party thereto either (i) a counterpart of such
Borrowing Subsidiary's Borrowing Subsidiary Agreement or (ii) written
evidence satisfactory to the Administrative Agent (which may include
telecopy transmission of a signed signature page thereof) that such
party has signed a counterpart of such Borrowing Subsidiary Agreement.
(b) The Administrative Agent shall have received a favorable
written opinion of counsel for such Borrowing Subsidiary (which counsel
shall be reasonably acceptable to the Administrative Agent),
substantially in the form of Exhibit C, and covering such other matters
relating to such Borrowing Subsidiary or its Borrowing Subsidiary
Agreement as the Required Lenders shall reasonably request.
(c) The Administrative Agent shall have received such
documents and certificates as the Administrative Agent or its counsel
may reasonably request relating to the organization, existence and good
standing of such Borrowing Subsidiary, the authorization of the
Transactions relating to such Borrowing Subsidiary and any other legal
matters relating to such Borrowing Subsidiary, its Borrowing Subsidiary
Agreement or such Transactions, all in form and substance satisfactory
to the Administrative Agent and its counsel.
ARTICLE V
Affirmative Covenants
Until the Commitments have expired or been terminated and the principal
of and interest on each Loan and all fees payable hereunder shall have been paid
in full and all Letters of Credit shall have expired or terminated and all LC
Disbursements shall have been reimbursed, each Borrower covenants and agrees
with the Lenders that:
SECTION 5.01. Financial Statements and Other Information. The Company
will furnish to the Administrative Agent and each Lender:
(a) within 105 days after the end of each fiscal year of the
Company, its audited consolidated balance sheet and related statements
of operations, stockholders' equity and cash flows as of the end of and
for such year, setting forth in each case in comparative form the
figures for the previous fiscal year, all reported on by Coopers &
Xxxxxxx L.L.P., or other independent public accountants of recognized
national standing (without a "going concern" or like qualification or
exception and without any qualification or exception as to the scope of
such audit) to the effect that such consolidated financial statements
present fairly in all material respects the financial condition and
results of operations of the Company and its consolidated Subsidiaries
on a consolidated basis in accordance with GAAP consistently applied;
(b) within 60 days after the end of each of the first three
fiscal quarters of each fiscal year of the Company, its consolidated
balance sheet and related statements of operations, stockholders'
equity and cash flows as of the end of and for such fiscal quarter and
the then elapsed portion of the fiscal year, setting forth in each case
in comparative form the figures for the corresponding period or periods
of (or, in the case of the balance sheet, as of the end of) the
previous fiscal year, all certified by one of its Financial Officers as
presenting fairly in all material respects the financial condition and
results of operations of the Company and its consolidated Subsidiaries
on a consolidated basis in accordance with GAAP consistently applied,
subject to normal year-end audit adjustments and the absence of
footnotes;
(c) concurrently with any delivery of financial statements
under clause (a) or (b) above, a certificate of a Financial Officer of
the Company (i) certifying as to whether a Default has occurred and, if
a Default has occurred, specifying the details thereof and any action
taken or proposed to be taken with respect thereto, (ii) setting forth
reasonably detailed calculations demonstrating compliance with Sections
6.01, 6.02 and 6.08 and (iii) stating whether any material change in
GAAP or in the application thereof has occurred since the date of the
audited financial statements referred to in Section 3.04(a) affecting
the Company and, if any such change has occurred, specifying the effect
of such change on the financial statements accompanying such
certificate;
(d) concurrently with any delivery of financial statements
under clause (a) above, a certificate of the accounting firm that
reported on such financial statements stating whether they obtained
knowledge during the course of their examination of such financial
statements of any Default (which certificate may be limited to the
extent required by accounting rules or guidelines);
(e) promptly after the same become publicly available, copies
of all periodic and other reports, proxy statements and registration
statements (other than the exhibits thereto and any registration
statement or Form S-8 or its equivalent) filed by the Company or any
Subsidiary with the Securities and Exchange Commission, or any
Governmental Authority succeeding to any or all of the functions of
said Commission, or with any national securities exchange, or
distributed by the Company to its stockholders generally, as the case
may be; and
(f) promptly following any request therefor, such other
information regarding the operations, business affairs and financial
condition of the Company or any Subsidiary, or compliance with the
terms of this Agreement, as the Administrative Agent, or any Lender
through the Administrative Agent, may reasonably request.
SECTION 5.02. Notices of Material Events. Promptly upon any Financial
Officer or other executive officer obtaining knowledge thereof, each Borrower
will furnish to the Administrative Agent and each Lender written notice of the
following:
(a) the occurrence of any Default;
(b) the filing or commencement of any action, suit or
proceeding by or before any arbitrator or Governmental Authority
against or affecting such Borrower or any subsidiary thereof where
there is a reasonable possibility of an adverse determination and that,
if adversely determined, could reasonably be expected to result in a
Material Adverse Effect;
(c) the occurrence of any ERISA Event that, alone or together
with any other ERISA Events that have occurred, could reasonably be
expected to result in liability of the Company and its Subsidiaries in
an aggregate amount exceeding $25,000,000; and
(d) any other development that results in, or could reasonably
be expected to result in, a Material Adverse Effect.
Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Company setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.
SECTION 5.03. Existence; Conduct of Business. Each Borrower will, and
will cause each of its subsidiaries to, do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material
to the conduct of its business except, in the case of any such subsidiary that
is not a Borrowing Subsidiary, where the failure to do so could not reasonably
be expected to result in a Material Adverse Effect; provided that the foregoing
shall not prohibit any merger, consolidation, liquidation or dissolution
permitted under Section 6.03.
SECTION 5.04. Payment of Obligations. Each Borrower will, and will
cause each of its subsidiaries to, pay its obligations, including Taxes, before
the same shall become delinquent or in default, except where (a) the failure to
pay such amount could not reasonably be expected to result in a Material Adverse
Effect or (b) the validity or amount thereof is being contested in good faith by
appropriate proceedings and (i) such Borrower or such subsidiary has set aside
on its books reserves or other appropriate provisions, if any, as shall be
required in conformity with GAAP and (ii) the failure to make payment pending
such contest could not reasonably be expected to result in a Material Adverse
Effect.
SECTION 5.05. Maintenance of Properties; Insurance. Each Borrower will,
and will cause each of its subsidiaries to, (a) keep and maintain all property
material to the conduct of its business in good working order and condition,
ordinary wear and tear excepted, and (b) maintain, with financially sound and
reputable insurance companies (or through a system or systems of self-insurance
in accordance with customary practices for companies in similar businesses),
insurance in such amounts and against such risks as are customarily maintained
by companies engaged in the same or similar businesses operating in the same or
similar locations.
SECTION 5.06. Books and Records; Inspection Rights. Each Borrower will,
and will cause each of its subsidiaries to, keep proper books of record and
account in accordance with GAAP (or, in the case of a Foreign Subsidiary,
generally accepted accounting principles in the jurisdiction of organization of
such Foreign Subsidiary). Each Borrower will, and will cause each of its
subsidiaries to, permit any representatives designated by the Administrative
Agent or any Lender, upon reasonable prior notice, to visit and inspect its
properties, to examine and make extracts from its books and records, and to
discuss its affairs, finances and condition with its officers and independent
accountants, all at such reasonable times and as often as reasonably requested.
SECTION 5.07. Compliance with Laws. Each Borrower will, and will cause
each of its subsidiaries to, comply with all laws, rules, regulations and orders
of any Governmental Authority applicable to it or its property, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.
SECTION 5.08. Use of Proceeds and Letters of Credit. The proceeds of
the Loans will be used only for general corporate purposes. No part of the
proceeds of any Loan will be used, whether directly or indirectly, for any
purpose that entails a violation of any of the Regulations of the Board,
including Regulations G, U and X. Letters of Credit will be issued only to
support obligations of the Company incurred in the ordinary course of business.
ARTICLE VI
Negative Covenants
Until the Commitments have expired or terminated and the principal of
and interest on each Loan and all fees payable hereunder have been paid in full
and all Letters of Credit have expired or terminated and all LC Disbursements
shall have been reimbursed, each Borrower covenants and agrees with the Lenders
that:
SECTION 6.01. Indebtedness and Preferred Stock of Subsidiaries. No
Borrowing Subsidiary will, and the Company will not permit any Subsidiary to,
create, incur, assume or permit to exist any Indebtedness or Preferred Stock,
except:
(a) Indebtedness (other than the Fort Xxxxxx Xxxxx) and
Preferred Stock outstanding on the date hereof and set forth on
Schedule 6.01(a), and any extensions, renewals and replacements of any
such Indebtedness or Preferred Stock that do not increase the
outstanding principal amount (or, in the case of Preferred Stock,
liquidation value) thereof;
(b) Indebtedness created hereunder;
(c) [Intentionally Omitted];
(d) Indebtedness issued to the Company or any other Subsidiary;
(e) Guarantees of Indebtedness of any other Subsidiary;
(f) Indebtedness (including Capital Lease Obligations)
incurred by any Subsidiary after the Effective Date to finance the
acquisition, construction or improvement of any real property or
equipment, and any extension, renewal or replacement thereof that does
not increase the aggregate outstanding principal amount thereof,
provided that (i) the Indebtedness incurred shall not exceed the lesser
of the cost and the fair market value of the asset financed thereby and
(ii) such Indebtedness is incurred within 180 days after the
acquisition, construction or improvement of the asset financed thereby;
(g) Indebtedness incurred pursuant to any Permitted
Receivables Financing; and
(h) other Indebtedness (including the Fort Xxxxxx Xxxxx) and
Preferred Stock in an aggregate principal amount (or, in the case of
Preferred Stock, liquidation value), when added to the amount of (i)
all Indebtedness secured by Liens permitted by Section 6.02(i) and (ii)
the aggregate amount of cash and cash equivalents securing Hedging
Obligations pursuant to Section 6.02(c), not exceeding 10% of
Consolidated Net Tangible Assets as shown on the most recent
consolidated balance sheet of the Company delivered pursuant to Section
3.04(b), 5.01(a) or 5.01(b), as the case may be.
SECTION 6.02. Liens. The Company will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Lien on any property
or asset now owned or hereafter acquired by it (including any capital stock or
Indebtedness of a Subsidiary), or assign or sell any income or revenues
(including accounts receivable) or rights in respect of any thereof, except:
(a) Permitted Encumbrances;
(b) any Lien on any property or asset of the Company or any
Subsidiary existing on the date hereof and set forth in Schedule 6.02;
provided that (i) such Lien shall not apply to any other property or
asset of the Company or any Subsidiary and (ii) such Lien shall secure
only those obligations which it secures on the date hereof and
extensions, renewals, refinancings and replacements thereof that do not
increase the outstanding principal amount thereof;
(c) Liens on cash and cash equivalents securing Hedging
Obligations; provided that the aggregate amount of cash and cash
equivalents subject to such Liens may at no time exceed $100,000,000;
(d) Liens to secure obligations owing by a Subsidiary to the
Company or to another Subsidiary;
(e) Liens in favor of the United States of America or any
state thereof, or any department, agency or political subdivision of
the United State of America or any state thereof, to secure partial,
progress, advance or other payments pursuant to any contract or
statute;
(f) Liens in favor of any customer arising in respect of
partial, progress, advance or other payments made by or on behalf of
such customer for goods produced for or services rendered to such
customer in the ordinary course of business not exceeding the amount of
such payments;
(g) Liens to secure Indebtedness permitted by Section 6.01(f),
provided that (i) such Liens are incurred within 180 days after such
acquisition (or construction) or are incurred to extend, renew or
refinance Liens incurred within such 180-day period, and (ii) such
Liens do not apply to any other property or assets of the Company or
any Subsidiary;
(h) Liens on accounts receivable financed in connection with
any Permitted Receivables Financing; and
(i) other Liens to secure Indebtedness if the sum of (i) the
aggregate amount of all Indebtedness secured by Liens that would not be
permitted but for this clause (i), plus (ii) the aggregate amount of
cash and cash equivalents securing Hedging Obligations pursuant to
clause (c), plus (iii) the aggregate amount of Indebtedness and
Preferred Stock outstanding under Section 6.01(h) does not exceed 10%
of Consolidated Net Tangible Assets as shown on the most recent
consolidated balance sheet of the Company delivered pursuant to Section
3.04(b), 5.01(a) or 5.01(b), as the case may be.
SECTION 6.03. Fundamental Changes. (a) The Company will not, and will
not permit any of its Subsidiaries to, merge into or consolidate with any other
Person, or permit any other Person to merge into or consolidate with it, or
sell, transfer, lease or otherwise dispose of (in one transaction or in a series
of transactions) all or substantially all of its assets (whether now owned or
hereafter acquired), or liquidate or dissolve, except that, if at the time
thereof and immediately after giving effect thereto no Default shall have
occurred and be continuing, (i) any Person may merge into the Company in a
transaction in which the Company is the surviving corporation, (ii) any Person
may merge into any Subsidiary in a transaction in which the surviving entity is
a Wholly Owned Subsidiary, (iii) any Subsidiary may sell, transfer, lease or
otherwise dispose of its assets to the Company or to a Wholly Owned Subsidiary
and (iv) any Subsidiary may merge into or consolidate with another Person, or
may liquidate or dissolve, if the Company determines in good faith that such
merger, consolidation, liquidation or dissolution is in the best interests of
the Company and is not materially disadvantageous to the Lenders; provided that
a Borrowing Subsidiary may not merge, consolidate, liquidate or dissolve unless,
in addition to the foregoing conditions, the surviving entity, or the entity
into which such Borrowing Subsidiary liquidates or dissolves, is or becomes a
Borrower and assumes all the obligations of such Borrowing Subsidiary hereunder
and under its Borrowing Subsidiary Agreement (if any).
(b) The Company will not, and will not permit any of its Subsidiaries
to, engage to any material extent in any business other than businesses of the
type conducted by the Company and its Subsidiaries on the date hereof and
businesses reasonably related thereto.
SECTION 6.04. Transactions with Affiliates. The Company will not, and
will not permit any of its Subsidiaries to, sell, lease or otherwise transfer
any property or assets to, or purchase, lease or otherwise acquire any property
or assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) in the ordinary course of business at prices and on terms
and conditions not less favorable to the Company or such Subsidiary than could
be obtained on an arm's-length basis from unrelated third parties and (b)
transactions between or among the Company and its Wholly Owned Subsidiaries not
involving any other Affiliate.
SECTION 6.05. Sale and Lease-Back Transactions. The Company will not,
and will not permit any of its Subsidiaries to, directly or indirectly, enter
into any arrangement with any Person (other than the Company or a Subsidiary)
whereby it shall sell or transfer any property used in its business, whether now
owned or hereafter acquired, and thereafter rent or lease such property or other
property which it intends to use for substantially the same purpose or purposes
as the property being sold or transferred, unless the Lien attributable to such
transaction would be permitted by Section 6.02.
SECTION 6.06. Restrictive Agreements. The Company will not, and will
not permit any of its Subsidiaries to, directly or indirectly, enter into, incur
or permit to exist any agreement or other arrangement that prohibits, restricts
or imposes any condition upon the ability of any Subsidiary to pay dividends or
other distributions with respect to any shares of its capital stock or other
equity interests or to make or repay loans or advances to the Company or any
other Subsidiary or to Guarantee Indebtedness of the Company or any other
Subsidiary; provided that the foregoing shall not apply to restrictions and
conditions (a) imposed by law or by this Agreement, (b) existing on the date
hereof and identified on Schedule 6.06 (but shall apply to any extension or
renewal of, or any amendment or modification expanding the scope of, any such
restriction or condition) or (c) contained in agreements relating to the sale of
a Subsidiary pending such sale, provided such restrictions and conditions apply
only to the Subsidiary that is to be sold and such sale is permitted hereunder.
SECTION 6.07. Borrowing Subsidiaries. The Company will not cease to
own, directly or indirectly, and Control 100% (other than directors' qualifying
shares) of the ordinary voting power of any Borrowing Subsidiary.
SECTION 6.08. Leverage Ratio. The Leverage Ratio as of the last day
of any fiscal quarter of the Company will not exceed 3.75 to 1.00.
ARTICLE VII
Events of Default
If any of the following events ("Events of Default") shall occur and be
continuing:
(a) any Borrower shall fail to pay any principal of any Loan
of such Borrower, or the Company shall fail to pay any reimbursement
obligation in respect of any LC Disbursement, in each case when and as
the same shall become due and payable, whether at the due date thereof
or at a date fixed for prepayment thereof or otherwise;
(b) any Borrower shall fail to pay any interest on any Loan of
such Borrower or any fee or any other amount (other than an amount
referred to in clause (a) of this Article) payable by such Borrower
under this Agreement, when and as the same shall become due and
payable, and such failure shall continue unremedied for a period of
five Business Days;
(c) any representation or warranty made or deemed made by or
on behalf of the Company or any Subsidiary in or in connection with
this Agreement, any Borrowing Subsidiary Agreement or any amendment or
modification hereof or thereof, or in any report, certificate,
financial statement or other document furnished pursuant to or in
connection with this Agreement, any Borrowing Subsidiary Agreement or
any amendment or modification hereof or thereof, shall prove to have
been incorrect in any material respect when made or deemed made;
(d) the Company shall fail to observe or perform any covenant,
condition or agreement contained in Section 5.02(a), 5.03 (with respect
to the Company's existence) or 5.08 or in Article VI;
(e) any Borrower shall fail to observe or perform any
covenant, condition or agreement contained in this Agreement or any
Borrowing Subsidiary Agreement (other than those specified in clause
(a), (b), (c), (d) or (m) of this Article), and such failure shall
continue unremedied for a period of 30 days after notice thereof from
the Administrative Agent (given at the request of any Lender) to the
Company;
(f) the Company or any Subsidiary shall fail to make any
payment (whether of principal or interest and regardless of amount) in
respect of any Material Indebtedness, when and as the same shall become
due and payable;
(g) any event or condition shall occur that results in any
Material Indebtedness becoming due prior to its scheduled maturity or
that enables or permits (with or without the giving of notice, the
lapse of time or both) the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf to cause
any Material Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled
maturity; provided that this clause (g) shall not apply to (i) secured
Indebtedness that becomes due solely as a result of the voluntary sale
or transfer of the property or assets securing such Indebtedness or
solely as a result of the election of the Company or any Subsidiary to
redeem such Material Indebtedness in accordance with its terms or (ii)
any early termination event under any Hedging Agreement;
(h) an involuntary proceeding shall be commenced or an
involuntary petition shall be filed seeking (i) liquidation,
reorganization or other relief in respect of the Company or any
Subsidiary or its debts, or of a substantial part of its assets, under
any Federal, state or foreign bankruptcy, insolvency, receivership or
similar law now or hereafter in effect or (ii) the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar
official for the Company or any Subsidiary or for a substantial part of
its assets, and, in any such case, such proceeding or petition shall
continue undismissed for 60 days or an order or decree approving or
ordering any of the foregoing shall be entered;
(i) the Company or any Subsidiary shall (i) voluntarily
commence any proceeding or file any petition seeking liquidation,
reorganization or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in
effect, (ii) consent to the institution of, or fail to contest in a
timely and appropriate manner, any proceeding or petition described in
clause (h) of this Article, (iii) apply for or consent to the
appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Company or any Subsidiary or
for a substantial part of its assets, (iv) file an answer admitting the
material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors
or (vi) take any action for the purpose of effecting any of the
foregoing;
(j) the Company or any Subsidiary shall become unable, admit
in writing its inability or fail generally to pay its debts as they
become due;
(k) one or more judgments for the payment of money in an
aggregate amount in excess of $25,000,000 shall be rendered against the
Company, any Subsidiary or any combination thereof and the same shall
remain unpaid or undischarged for a period of 30 consecutive days
during which execution shall not be effectively stayed, or any action
shall be legally taken by a judgment creditor to attach or levy upon
any assets of the Company or any Subsidiary to enforce any such
judgment;
(l) an ERISA Event shall have occurred that, in the opinion of
the Required Lenders, when taken together with all other ERISA Events
that have occurred, could reasonably be expected to result in liability
of the Company and its Subsidiaries in an aggregate amount that could
reasonably be expected to result in a Material Adverse Effect;
(m) the Company shall fail to observe or perform any covenant,
condition or agreement contained in Article IX, or the guarantee of the
Company hereunder shall not be (or shall be claimed by any Person not
to be) valid or in full force and effect; or
(n) a Change in Control shall occur;
then, and in every such event (other than an event with respect to any Borrower
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Company, take either or
both of the following actions, at the same or different times: (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part,
in which case any principal not so declared to be due and payable may thereafter
be declared to be due and payable), and thereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and all
fees and other obligations of the Borrowers accrued hereunder, shall become due
and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by each Borrower; and in case of any
event with respect to any Borrower described in clause (h) or (i) of this
Article, the Commitments shall automatically terminate and the principal of the
Loans then outstanding, together with accrued interest thereon and all fees and
other obligations of the Borrowers accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by each Borrower.
ARTICLE VIII
The Administrative Agent
Each of the Lenders and the Issuing Bank hereby irrevocably appoints
the Administrative Agent as its agent and authorizes the Administrative Agent to
take such actions on its behalf and to exercise such powers as are delegated to
the Administrative Agent by the terms hereof, together with such actions and
powers as are reasonably incidental thereto.
The bank serving as the Administrative Agent hereunder shall have the
same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent, and such bank
and its Affiliates may accept deposits from, lend money to and generally engage
in any kind of business with the Company or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.
The Administrative Agent shall not have any duties or obligations
except those expressly set forth herein. Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or
other implied duties, regardless of whether a Default has occurred and is
continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby that the Administrative Agent is
required to exercise in writing by the Required Lenders (or all the Lenders when
required by Section 10.02(b)), and (c) except as expressly set forth herein, the
Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to the Company or
any of its Subsidiaries that is communicated to or obtained by the bank serving
as Administrative Agent or any of its Affiliates in any capacity. The
Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or all the Lenders
when required by Section 10.02(b)) or in the absence of its own gross negligence
or wilful misconduct. The Administrative Agent shall be deemed not to have
knowledge of any Default unless and until written notice thereof is given to the
Administrative Agent by a Borrower or a Lender, and the Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or in connection with this
Agreement or any Borrowing Subsidiary Agreement, (ii) the contents of any
certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein, (iv)
the validity, enforceability, effectiveness or genuineness of this Agreement or
any Borrowing Subsidiary Agreement or any other agreement, instrument or
document, or (v) the satisfaction of any condition set forth in Article IV or
elsewhere herein, other than to confirm receipt of items expressly required to
be delivered to the Administrative Agent.
The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and
reasonably believed by it to be made by the proper Person, and shall not incur
any liability for relying thereon. The Administrative Agent may consult with
legal counsel (who may be counsel for any Borrower), independent accountants and
other experts selected by it, and shall not be liable for any reasonable action
taken or not taken by it in accordance with the advice of any such counsel,
accountants or experts.
The Administrative Agent may perform any and all of its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers through their respective Related Parties. The exculpatory provisions of
the preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of the Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.
Subject to the appointment and acceptance of a successor Administrative
Agent as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Lenders, the Issuing Bank and the Company. Upon any such
resignation, the Required Lenders shall have the right, in consultation with the
Company, to appoint a successor. If no successor shall have been so appointed by
the Required Lenders and shall have accepted such appointment within 30 days
after the resigning Administrative Agent gives notice of its resignation, then
the resigning Administrative Agent may, on behalf of the Lenders and the Issuing
Bank, appoint a successor Administrative Agent which shall be a bank with an
office in New York, New York, or an Affiliate of any such bank. Upon the
acceptance of its appointment as Administrative Agent hereunder by a successor,
such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the resigning Administrative Agent, and the resigning
Administrative Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Company to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Company and such successor. After the Administrative Agent's
resignation hereunder, the provisions of this Article and Section 10.03 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 Administrative Agent.
Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any related agreement or any document furnished hereunder or thereunder.
ARTICLE IX
Guarantee
In order to induce the Lenders to extend credit hereunder, the Company
hereby irrevocably and unconditionally guarantees, as a primary obligor and not
merely as a surety, the Obligations. The Company further agrees that the due and
punctual payment of the Obligations may be extended or renewed, in whole or in
part, without notice to or further assent from it, and that it will remain bound
upon its Guarantee hereunder notwithstanding any such extension or renewal of
any Obligation.
The Company waives presentment to, demand of payment from and protest
to any Borrowing Subsidiary of any of the Obligations, and also waives notice of
acceptance of its obligations and notice of protest for nonpayment. The
obligations of the Company hereunder shall not be affected by (a) the failure of
any Lender or the Administrative Agent to assert any claim or demand or to
enforce or exercise any right or remedy against any Borrowing Subsidiary under
the provisions of this Agreement or otherwise or (b) any rescission, waiver,
amendment or modification of any of the terms or provisions of this Agreement,
any Borrowing Subsidiary Agreement or any other agreement.
The Company further agrees that its agreement under this Article IX
constitutes a promise of payment when due (whether or not any bankruptcy or
similar proceeding shall have stayed the accrual or collection of any of the
Obligations or operated as a discharge thereof) and not merely of collection,
and waives any right to require that any resort be had by any Lender to any
balance of any deposit account or credit on the books of any Lender in favor of
any Borrower or any other Person.
The obligations of the Company under this Article IX shall not be
subject to any reduction, limitation, impairment or termination for any reason,
and shall not be subject to any defense or setoff, counterclaim, recoupment or
termination whatsoever, by reason of the invalidity, illegality or
unenforceability of the Obligations, any impossibility in the performance of the
Obligations or otherwise. Without limiting the generality of the foregoing, the
obligations of the Company under this Article IX shall not be discharged or
impaired or otherwise affected by the failure of the Administrative Agent or any
Lender to assert any claim or demand or to enforce any remedy under this
Agreement or any other agreement, by any waiver or modification in respect of
any thereof, by any default, failure or delay, wilful or otherwise, in the
performance of the Obligations, or by any other act or omission which may or
might in any manner or to any extent vary the risk of the Company or otherwise
operate as a discharge of the Company or any other Borrower as a matter of law
or equity.
The Company further agrees that its obligations under this Article IX
shall continue to be effective or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any Obligation is rescinded or must
otherwise be restored by the Administrative Agent or any Lender upon the
bankruptcy or reorganization of any Borrower or otherwise.
In furtherance of the foregoing and not in limitation of any other
right which the Administrative Agent or any Lender may have at law or in equity
against the Company by virtue of this Article IX, upon the failure of any
Borrowing Subsidiary to pay any Obligation when and as the same shall become
due, whether at maturity, by acceleration, after notice of prepayment or
otherwise, the Company hereby promises to and will, upon receipt of written
demand by the Administrative Agent, forthwith pay, or cause to be paid, in cash
the amount of such unpaid Obligation. The Company further agrees that if payment
in respect of any Obligation shall be due in a currency other than dollars
and/or at a place of payment other than New York and if, by reason of any Change
in Law, disruption of currency or foreign exchange markets, war or civil
disturbance or similar event, payment of such Obligation in such currency or at
such place of payment shall be impossible or, in the reasonable judgment of any
applicable Lender, not consistent with the protection of its rights or
interests, then, at the election of any applicable Lender, the Company shall
make payment of such Obligation in dollars (based upon the applicable Exchange
Rate in effect on the date of payment) and/or in New York, and shall indemnify
such Lender against any losses or expenses that it shall sustain as a result of
such alternative payment.
Upon payment by the Company of any sums as provided above, all rights
of Company against any Borrowing Subsidiary arising as a result thereof by way
of right of subrogation or otherwise shall in all respects be subordinated and
junior in right of payment to the prior indefeasible payment in full of all the
Obligations owed by such Borrowing Subsidiary to the Lenders.
ARTICLE X
Miscellaneous
SECTION 10.01. Notices. Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:
(a) if to any Borrower, to it in care of the Company at Fort
Xxxxx Corporation, 000 Xxxxxxxx Xxxxxx Xxxxxxxx, XX 00000, Attention of
R. Xxxxxxx Xxxxxx c/o Xxxxxxxx X. Xxxxxxxx, XX (Telecopy No.
(000)000-0000);
(b) if to the Administrative Agent, to The Chase Manhattan
Bank, Agent Bank Services Group, One Chase Xxxxxxxxx Xxxxx, 0xx Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000, Attention of Xxxxx Xxxxxx (Telecopy No. (212)
552-5658), with a copy to Xxxxxxxx Xxxxxxxx (Telecopy No. (312)
807-4550), and to any other applicable address specified in the
Alternate Procedures;
(c) if to the Issuing Bank, to The Chase Manhattan Bank,
Corporate Banking Department, 0000 Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx
00000, Attention of Xxxxxxx Handigo (Telecopy No. (000) 000-0000), with
a copy to Xxxxx Xxxxxx (Telecopy No. (000) 000-0000); and
(d) if to any Lender, to it at its address (or telecopy
number) set forth in its Administrative Questionnaire.
Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.
SECTION 10.02. Waivers; Amendments. (a) No failure or delay by the
Administrative Agent, the Issuing Bank or any Lender in exercising any right or
power hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights
and remedies of the Administrative Agent, the Issuing Bank and the Lenders
hereunder are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of this Agreement or
consent to any departure by any Borrower therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section,
and then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given. Without limiting the generality of the
foregoing, the making of a Loan or the issuance of a Letter of Credit shall not
be construed as a waiver of any Default, regardless of whether the
Administrative Agent, the Issuing Bank or any Lender may have had notice or
knowledge of such Default at the time.
(b) Neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing
entered into by the Company, the Borrowing Subsidiaries party hereto and the
Required Lenders or by the Company, the Borrowing Subsidiaries party hereto and
the Administrative Agent with the consent of the Required Lenders; provided that
no such agreement shall (i) increase the Commitment of any Lender without the
written consent of such Lender, (ii) reduce the principal amount of any Loan or
LC Disbursement or reduce the rate of interest thereon, or reduce any fees
payable hereunder, without the written consent of each Lender affected thereby,
(iii) postpone the scheduled date of payment of the principal amount of any Loan
or LC Disbursement, or any interest thereon, or any fees payable hereunder, or
reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date of expiration of any Commitment, without the written consent of
each Lender affected thereby, (iv) change Section 2.16(b) or (c) in a manner
that would alter the pro rata sharing of payments required thereby, without the
written consent of each Lender, (v) change any of the provisions of this Section
or the definition of "Required Lenders" or any other provision hereof specifying
the number or percentage of Lenders required to waive, amend or modify any
rights hereunder or make any determination or grant any consent hereunder,
without the written consent of each Lender, (vi) modify or amend Section 2.15,
(vii) waive Section 4.01(d), or (viii) release the Company from, or limit or
condition, its obligations under Article IX, without the written consent of each
Lender; provided further that no such agreement shall amend, modify or otherwise
affect the rights or duties of the Administrative Agent or the Issuing Bank
hereunder without the prior written consent of the Administrative Agent or the
Issuing Bank, as the case may be.
(c) Notwithstanding Section 10.02(b) (other than the proviso thereto),
the Alternate Procedures may be amended by an agreement or agreements in writing
entered into by the Administrative Agent, the applicable Borrower and the
Multicurrency Lenders. Without limiting the foregoing, the Borrower, the
Administrative Agent and each Multicurrency Lender agree to negotiate in good
faith any requested amendment to the Alternate Procedures that may be necessary
or desirable to comply with local laws or regulations or otherwise to implement
the making and repaying of Multicurrency Loans as contemplated hereby.
SECTION 10.03. Expenses; Indemnity; Damage Waiver. (a) The Company
shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the reasonable fees, charges
and disbursements of counsel for the Administrative Agent, in connection with
the syndication of the credit facilities provided for herein, the preparation
and administration of this Agreement or any Borrowing Subsidiary Agreement and
any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing
Bank in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all reasonable
out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank or
any Lender, including the fees, charges and disbursements of any counsel for the
Administrative Agent, the Issuing Bank or any Lender, in connection with the
enforcement or protection of its rights in connection with this Agreement or any
Borrowing Subsidiary Agreement, including its rights under this Section, or in
connection with the Loans made or Letters of Credit issued hereunder, including
in connection with any workout, restructuring or negotiations in respect
thereof.
(b) The Company shall indemnify the Administrative Agent, the Issuing
Bank and each Lender, and each Related Party of any of the foregoing Persons
(each such Person being called an "Indemnitee") against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses, including the reasonable fees, charges and disbursements of
any counsel for any Indemnitee, incurred by or asserted against any Indemnitee
arising out of, in connection with, or as a result of (i) the execution or
delivery of this Agreement or any Borrowing Subsidiary Agreement or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto or thereto of their respective obligations hereunder or
thereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or Letter of Credit or the use of the
proceeds therefrom (including any refusal by the Issuing Bank to honor a demand
for payment under a Letter of Credit if the documents presented in connection
with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) any actual or alleged presence or release of Hazardous Materials
on or from any property owned or operated by the Company or any of its
Subsidiaries, or any Environmental Liability related in any way to the Company
or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or wilful
misconduct of such Indemnitee.
(c) To the extent that the Company fails to pay any amount required to
be paid by it to the Administrative Agent under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent such
Lender's Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that (i) if the Commitments shall have terminated or expired prior to
the repayment in full of all the Loans, then the payment by the Lenders of such
amounts shall be based upon the then outstanding principal amount of the Loans
of each Lender and (ii) the unreimbursed expense or indemnified loss, claim,
damage, liability or related expense, as the case may be, was incurred by or
asserted against the Administrative Agent in its capacity as such.
(d) To the extent permitted by applicable law, no Borrower shall
assert, and each Borrower hereby waives, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection
with, or as a result of, this Agreement or any Borrowing Subsidiary Agreement or
any agreement or instrument contemplated hereby or thereby, the Transactions,
any Loan or Letter of Credit or the use of the proceeds thereof.
(e) All amounts due under this Section shall be payable promptly after
written demand therefor.
SECTION 10.04. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
(including the parties to any Borrowing Subsidiary Agreement) and their
respective successors and assigns permitted hereby (including any Affiliate of
the Issuing Bank that issues any Letter of Credit), except that no Borrower may
assign or otherwise transfer any of its rights or obligations hereunder or under
any Borrowing Subsidiary Agreement without the prior written consent of each
Lender (and any attempted assignment or transfer by any Borrower without such
consent shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby (including any
Affiliate of the Issuing Bank that issues any Letter of Credit) and, to the
extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.
(b) Any Lender may assign to one or more assignees all or a portion of
its rights and obligations under this Agreement (including all or a portion of
its Commitment and the Loans at the time owing to it); provided that (i) except
in the case of an assignment to a Lender or an Affiliate of a Lender, each of
the Company and the Administrative Agent (and, in the case of an assignment of
all or a portion of a U.S. Commitment or any U.S. Lender's obligations in
respect of its LC Exposure, the Issuing Bank) must give their prior written
consent to such assignment (which consent shall not be unreasonably withheld),
(ii) except in the case of an assignment to a Lender or an Affiliate of a Lender
or an assignment of the entire remaining amount of the assigning Lender's
Commitment, the amount of the Commitment of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Acceptance with
respect to such assignment is delivered to the Administrative Agent) shall not
be less than $15,000,000 unless each of the Company and the Administrative Agent
otherwise consent, (iii) the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Acceptance, together with
a processing and recordation fee of $2,000, and (iv) the assignee, if it shall
not be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire; provided further that any consent of the Company otherwise
required under this paragraph shall not be required if (i) an Event of Default
under clause (h) or (i) of Article VII has occurred and is continuing with
respect to the Company or (ii) any other Event of Default has occurred and is
continuing with respect to the Company for a period of 30 days. Upon acceptance
and recording pursuant to paragraph (d) of this Section, from and after the
effective date specified in each Assignment and Acceptance, the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Acceptance, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.13, 2.14, 2.15 and 10.03). Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (e) of this Section.
(c) The Administrative Agent, acting for this purpose as an agent of
the Borrowers, shall maintain at one of its offices in The City of New York a
copy of each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitment of,
and principal amount of the Loans owing to, each Lender pursuant to the terms
hereof from time to time (the "Register"). The entries in the Register shall be
conclusive absent manifest error, and the Borrowers, the Administrative Agent,
the Issuing Bank and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all purposes
of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Company, the Issuing Bank and any Lender, at any
reasonable time and from time to time upon reasonable prior notice.
(d) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, the assignee's completed
Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.
(e) Any Lender may, without the consent of any Borrower, the
Administrative Agent or the Issuing Bank, sell participations to one or more
banks or other entities (a "Participant") in all or a portion of such Lender's
rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (i) such Lender's
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrowers, the Administrative Agent, the Issuing
Bank and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree
to any amendment, modification or waiver described in the first proviso to
Section 10.02(b) that affects such Participant. Subject to paragraph (f) of this
Section, each Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.13, 2.14 and 2.15 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of
this Section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 10.08 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.16(c) as though it were a
Lender.
(f) A Participant shall not be entitled to receive any greater payment
under Section 2.14 or 2.15 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with the Company's
prior written consent. Subject to the immediately preceding sentence, a
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 2.15 unless the Company is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrowers, to comply with Section 2.15(e) as though it were a
Lender.
(g) Any Lender may at any time pledge or assign all or any portion of
its rights under this Agreement to any Federal Reserve Bank, and this Section
shall not apply to any such pledge or assignment of a security interest;
provided that no such pledge or assignment of a security interest shall release
a Lender from any of its obligations hereunder or substitute any such assignee
for such Lender as a party hereto.
SECTION 10.05. Survival. All covenants, agreements, representations and
warranties made by the Borrowers herein and in the Borrowing Subsidiary
Agreements and the certificates or other instruments delivered in connection
with or pursuant to this Agreement shall be considered to have been relied upon
by the other parties hereto and shall survive the execution and delivery of this
Agreement and the making of any Loans, regardless of any investigation made by
any such other party or on its behalf and notwithstanding that the
Administrative Agent, the Issuing Bank or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any
credit is extended hereunder, and shall continue in full force and effect as
long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement is outstanding and unpaid or any
Letter of Credit is outstanding and so long as the Commitments have not expired
or terminated. The provisions of Sections 2.13, 2.14, 2.15 and 10.03 and Article
VIII shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Commitments or the termination of
this Agreement or any provision hereof.
SECTION 10.06. Counterparts; Integration; Effectiveness. This Agreement
may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement and any
separate letter agreements with respect to fees payable to the Administrative
Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof. Subject to the
provisions of Section 4.01, this Agreement shall become effective when it shall
have been executed by the Administrative Agent and when the Administrative Agent
shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page
of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.
SECTION 10.07. Severability. Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.
SECTION 10.08. Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any
time owing by such Lender or Affiliate to or for the credit or the account of
any Borrower against any of and all the obligations of the Company or such
Borrower now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under this
Agreement and although such obligations may be unmatured. The rights of each
Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.
SECTION 10.09. Governing Law; Jurisdiction; Consent to Service of
Process. (a) This Agreement shall be construed in accordance with and governed
by the internal law of the State of New York.
(b) Each Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the Supreme Court
of the State of New York sitting in New York County and of the United States
District Court of the Southern District of New York, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this
Agreement, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such New
York State or, to the extent permitted by law, in such Federal court. Each of
the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall
affect any right that the Administrative Agent, the Issuing Bank or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement
against any Borrower or its properties in the courts of any jurisdiction.
(c) Each Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement in any court referred to in
paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.
(d) Each party to this Agreement (including any Borrowing Subsidiaries)
irrevocably consents to service of process in the manner provided for notices in
Section 10.01. Nothing in this Agreement will affect the right of any party to
this Agreement to serve process in any other manner permitted by law.
SECTION 10.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
SECTION 10.11. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.
SECTION 10.12. Confidentiality. Each of the Administrative Agent, the
Issuing Bank and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its Affiliates' directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder,
(f) subject to an agreement containing provisions substantially the same as
those of this Section, to any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this
Agreement, (g) with the consent of the Company or (h) to the extent such
Information (i) becomes publicly available other than as a result of a breach of
this Section or (ii) becomes available to the Administrative Agent, the Issuing
Bank or any Lender on a nonconfidential basis from a source other than a
Borrower. For the purposes of this Section, "Information" means all information
received from a Borrower relating to a Borrower or its business, other than any
such information that is available to the Administrative Agent, the Issuing Bank
or any Lender on a nonconfidential basis prior to disclosure by a Borrower;
provided that, in the case of information received from a Borrower after the
date hereof, such information is identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information
as provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to
its own confidential information.
SECTION 10.13. Interest Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest
on such Loan under applicable law (collectively the "Charges"), shall exceed the
maximum lawful rate (the "Maximum Rate") which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the
operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.
SECTION 10.14. Conversion of Currencies. (a) If, for the purpose of
obtaining judgment in any court, it is necessary to convert a sum owing
hereunder in one currency into another currency, each party hereto (including
any Borrowing Subsidiary) agrees, to the fullest extent that it may effectively
do so, that the rate of exchange used shall be that at which in accordance with
normal banking procedures in the relevant jurisdiction the first currency could
be purchased with such other currency on the Business Day immediately preceding
the day on which final judgment is given.
(b) The obligations of each Borrower in respect of any sum due to any
party hereto or any holder of the obligations owing hereunder (the "Applicable
Creditor") shall, notwithstanding any judgment in a currency (the "Judgment
Currency") other than the currency in which such sum is stated to be due
hereunder (the "Agreement Currency"), be discharged only to the extent that, on
the Business Day following receipt by the Applicable Creditor of any sum
adjudged to be so due in the Judgment Currency, the Applicable Creditor may in
accordance with normal banking procedures in the relevant jurisdiction purchase
the Agreement Currency with the Judgment Currency; if the amount of the
Agreement Currency so purchased is less than the sum originally due to the
Applicable Creditor in the Agreement Currency, such Borrower agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the
Applicable Creditor against such loss. The obligations of the Borrowers
contained in this Section 10.14 shall survive the termination of this Agreement
and the payment of all other amounts owing hereunder.
