EXHIBIT 10.28
Cdn.$389,880,000
CANADIAN CREDIT AGREEMENT
Dated as of March 31, 2000,
as Amended and Restated as of December 7, 2001,
as Amended on April 25, 2002,
as Amended and Restated as of December 5, 2002, and
as further Amended and Restated as of December 4, 2003
among
BURLINGTON RESOURCES CANADA LTD.,
BURLINGTON RESOURCES CANADA (HUNTER) LTD.,
BURLINGTON RESOURCES INC.,
THE LENDERS LISTED HEREIN,
JPMORGAN CHASE BANK, TORONTO BRANCH,
as Administrative Agent
CITIBANK, N.A., CANADIAN BRANCH
FLEET NATIONAL BANK,
as Co-Syndication Agents
and
BANK OF AMERICA, N.A., CANADA BRANCH
THE BANK OF NOVA SCOTIA,
as Co-Documentation Agents
TABLE OF CONTENTS
Page
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ARTICLE 1
DEFINITIONS AND ACCOUNTING TERMS
Section 1.01 Certain Defined Terms.............................................................................. 6
Section 1.02 Computation of Time Periods........................................................................ 24
Section 1.03 Accounting and Other Terms......................................................................... 24
Section 1.04 References......................................................................................... 24
Section 1.05 Schedule III Banks................................................................................. 24
ARTICLE 2
AMOUNTS AND TERMS OF THE ADVANCES
Section 2.01 Revolving Advances................................................................................. 25
Section 2.02 Making the Advances................................................................................ 26
Section 2.03 Fees............................................................................................... 27
Section 2.04 Reduction of the Commitments....................................................................... 28
Section 2.05 Repayment of Advances.............................................................................. 28
Section 2.06 Interest on Advances............................................................................... 29
Section 2.07 [Intentionally omitted]............................................................................ 31
Section 2.08 Rate Determination................................................................................. 31
Section 2.09 Voluntary Continuation of Advances................................................................. 33
Section 2.10 Prepayments........................................................................................ 33
Section 2.11 Bankers' Acceptances............................................................................... 34
Section 2.12 Increased Costs.................................................................................... 37
Section 2.13 Increased Capital.................................................................................. 39
Section 2.14 Illegality......................................................................................... 40
Section 2.15 Payments and Computations.......................................................................... 40
Section 2.16 Taxes.............................................................................................. 41
Section 2.17 Sharing of Payments, Etc........................................................................... 46
Section 2.18 Evidence of Debt................................................................................... 46
Section 2.19 Use of Proceeds.................................................................................... 47
Section 2.20 Increase of Commitments............................................................................ 47
Section 2.21 Extension of Revolving Commitment Termination Date................................................. 49
Section 2.22 Replacement of Lenders............................................................................. 51
Section 2.23 Currency Indemnity................................................................................. 52
Section 2.24 Exchange Rate Calculations......................................................................... 52
ARTICLE 3
CONDITIONS OF EFFECTIVENESS AND LENDING
Section 3.01 Conditions Precedent to Effectiveness of this Agreement............................................ 53
Section 3.02 Conditions Precedent to Each Borrowing............................................................. 54
3
ARTICLE 4
REPRESENTATIONS AND WARRANTIES
Section 4.01 Representations and Warranties of the Borrowers.................................................... 54
ARTICLE 5
COVENANTS
Section 5.01 Affirmative Covenants.............................................................................. 57
Section 5.02 Negative Covenants................................................................................. 58
Section 5.03 Reporting Requirements............................................................................. 62
ARTICLE 6
EVENTS OF DEFAULT
Section 6.01 Events of Default.................................................................................. 64
ARTICLE 7
THE ADMINISTRATIVE AGENT
Section 7.01 Authorization and Action........................................................................... 68
Section 7.02 Administrative Agent's Reliance, Etc............................................................... 68
Section 7.03 Administrative Agent and Affiliates................................................................ 69
Section 7.04 Lender Credit Decision............................................................................. 69
Section 7.05 Indemnification.................................................................................... 69
Section 7.06 Successor Administrative Agent..................................................................... 70
ARTICLE 8
GUARANTY
ARTICLE 9
MISCELLANEOUS
Section 9.01 Amendments, Etc.................................................................................... 73
Section 9.02 Notices, Etc....................................................................................... 74
Section 9.03 No Waiver; Remedies................................................................................ 75
Section 9.04 Costs and Expenses; Indemnity...................................................................... 75
Section 9.05 Right of Set-off................................................................................... 77
Section 9.06 Binding Effect..................................................................................... 77
Section 9.07 Assignments and Participations..................................................................... 77
Section 9.08 Confidentiality.................................................................................... 80
Section 9.09 Consent to Jurisdiction............................................................................ 80
Section 9.10 Governing Law...................................................................................... 81
Section 9.11 Execution in Counterparts.......................................................................... 81
Section 9.12 Waiver of Jury Trial............................................................................... 82
Section 9.13 Entire Agreement, Etc.............................................................................. 82
4
Schedule I -- Material Subsidiaries of Parent
Schedule II -- Pricing Grid
Schedule III -- Initial Commitments
Exhibit A Form of Canadian Short-Term Revolving Credit Agreement Note
Exhibit B Form of Notice of Borrowing/Continuation/Rollover
Exhibit C Form of Notice of Repayment
Exhibit D Form of Assignment and Acceptance
Exhibit E Form of New Lender Agreement
Exhibit F Form of Commitment Increase Agreement
Exhibit G Form of Extension Request
Exhibit H-1 Form of Opinion of Vice President and General Counsel for Parent
Exhibit H-2 Form of Opinion of Xxxxxx Xxxxxxxxx, Alberta Internal Counsel for Borrowers
Exhibit I Form of Opinion of Xxxxxxx Xxxxx LLP, Alberta Counsel for Borrowers
5
CANADIAN SHORT-TERM REVOLVING CREDIT AGREEMENT
Dated as of March 31, 2000, as amended and restated as of December 7, 2001, as
amended by Amendment No. 1 dated as of April 25, 2002, as amended and restated
as of December 5, 2002, and as further Amended and Restated as of December 4,
0000
XXXXXXXXXX XXXXXXXXX XXXXXX LTD., currently an Alberta
corporation (together with its permitted successors and assigns, "BRCL" and a
"Borrower"), BURLINGTON RESOURCES CANADA (HUNTER) LTD. (f/k/a CANADIAN HUNTER
EXPLORATION LTD.) (together with its permitted successors and assigns, "Canadian
Hunter" and a "Borrower", and together with BRCL, the "BORROWERS"), Burlington
Resources Inc., a Delaware corporation (together with its permitted successors
and assignees, the "PARENT"), the financial institutions (the "INITIAL LENDERS")
listed on the signature pages hereof, JPMORGAN CHASE BANK, TORONTO BRANCH, as
administrative agent for the Lenders hereunder (in such capacity, the
"ADMINISTRATIVE AGENT"), CITIBANK, N.A., CANADIAN BRANCH and FLEET NATIONAL
BANK, as co-syndication agents, and BANK OF AMERICA, N.A., CANADA BRANCH and THE
BANK OF NOVA SCOTIA, as co-documentation agents, agree as follows:
ARTICLE 1
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01 CERTAIN DEFINED TERMS. As used in this Agreement,
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):
"ACCEPTANCE FEE" means a fee payable in Cdn. Dollars by the
applicable Borrower to the Administrative Agent for the account of a Lender with
respect to the acceptance of a B/A on the date of such acceptance, calculated on
the face amount of the B/A at the rate per annum applicable on such date as set
forth in the row labeled "Applicable Margin" on Schedule II hereto (which is
based on the ratings (or lack thereof) by Xxxxx'x or S&P or both of them of the
public long-term senior unsecured debt securities of the Parent) on the basis of
the number of days in the applicable Contract Period (including the date of
acceptance and excluding the date of maturity) and a year of 365 days.
"ADMINISTRATIVE AGENT" has the meaning specified in the
introduction to this Agreement.
"ADMINISTRATIVE QUESTIONNAIRE" means, with respect to each
Lender, an administrative questionnaire in the form prepared by the
Administrative Agent and submitted to the Administrative Agent (with a copy to
the Borrowers) duly completed by such Lender.
"ADVANCE" means an advance by a Lender to either Borrower as
part of a Borrowing, and refers to a Prime Rate Advance, a Base Rate Advance, a
Cdn. Dollar
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Eurodollar Rate Advance, a U.S. Dollar Eurodollar Rate Advance or a B/A Advance
(each of which shall be a "TYPE" of Advance).
"AFFILIATE" means, as to any Person, any other Person that,
directly or indirectly, controls, is controlled by or is under common control
with such Person or is a director or officer of such Person. The term "CONTROL"
(including the terms "CONTROLS", "CONTROLLED BY" or "UNDER COMMON CONTROL WITH")
means, with respect to any Person, the possession, direct or indirect, of the
power to vote 10% or more (or in the case of an "AFFILIATE" of any Lender, 5% or
more) of the securities having ordinary voting power for the election of
directors of such Person or to direct or cause the direction of the management
and policies of such Person, whether through ownership of voting securities or
by contract or otherwise. Neither a director nor an officer of a Borrower or
Parent, in such capacity, shall be deemed, for purposes of this Agreement, an
Affiliate.
"AGREEMENT" means this Amended and Restated Canadian
Short-Term Revolving Credit Agreement, together with all exhibits and schedules
hereto, as amended or otherwise modified from time to time pursuant to the terms
hereof.
"APPLICABLE LENDING OFFICE" means, with respect to any Lender,
the office of such Lender specified as its "Applicable Lending Office" in its
Administrative Questionnaire, or in the Assignment and Acceptance or New Lender
Agreement pursuant to which it became a Lender, and/or such other office of such
Lender as such Lender may from time to time specify to the Borrowers and the
Administrative Agent with respect to any Type of Advance.
"APPLICABLE MARGIN" means for any date the percentage per
annum applicable on such date as set forth in the row labeled "Applicable
Margin" on Schedule II hereto, which is based on the ratings (or lack thereof)
by Xxxxx'x or S&P or both of the public long-term senior unsecured debt
securities of Parent.
"ARRANGER" means X.X. Xxxxxx Securities Inc.
"ASSIGNMENT AND ACCEPTANCE" means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, and accepted by the
Administrative Agent, in substantially the form of Exhibit D hereto.
"AVERAGE AGGREGATE FACILITY ADVANCES" means, for any
Utilization Fee Period, the average daily outstanding amount of (i) all Advances
hereunder and (ii) all "Advances" under, and as defined in, the U.S. Short-Term
Revolving Credit Agreement and the U.S. Long-Term Revolving Credit Agreement.
"AVERAGE AGGREGATE FACILITY COMMITMENTS" means, for any
Utilization Fee Period, the average daily amount of (i) all Commitments
hereunder and (ii) all "Commitments" under, and as defined in, the U.S.
Short-Term Revolving Credit Agreement and the U.S. Long-Term Revolving Credit
Agreement.
"B/A ADVANCE" means a Borrowing comprised of one or more
Bankers' Acceptances or, as applicable, B/A Loans.
"B/A LOAN" has the meaning specified in Section 2.11(i).
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"BANKERS' ACCEPTANCE" and "B/A" mean a non-interest bearing
instrument denominated in Cdn. Dollars, drawn by the applicable Borrower and
accepted by a Lender in accordance with this Agreement, and includes a
depository note within the meaning of the Depository Bills and Notes Act
(Canada) and a xxxx of exchange within the meaning of the Bills of Exchange Act
(Canada).
"BASE RATE" means, for each day in any period, a fluctuating
interest rate per annum as shall be in effect from time to time which rate per
annum shall at all times for such day be equal to the higher of:
(i) the annual rate of interest announced publicly by the
Administrative Agent and in effect as its base rate at its principal
office in Toronto, Ontario on such day for determining interest rates
on U.S. Dollar-denominated commercial loans made in Canada; and
(ii) 0.50% per annum above the Effective Federal Funds
Rate for such day.
"BASE RATE ADVANCE" means an Advance denominated in U.S.
Dollars that bears interest based upon the Base Rate, as provided in Section
2.06(a)(ii).
"BORROWER" AND "BORROWERS" have the meanings specified in the
introduction to this Agreement.
"BORROWING" means a borrowing consisting of Advances of the
same Type made on the same day by the Lenders pursuant to Section 2.01 and, (i)
in the case of Eurodollar Rate Advances, having Interest Periods of the same
duration; and, (ii) in the case of B/A Advances, having Contract Periods of the
same duration; it being understood that there may be more than one Borrowing on
a particular day.
"BRCL" has the meaning specified in the introduction to this
Agreement.
"BUSINESS DAY" means any day that is not a Saturday, Sunday or
other day of the year on which banks are not required or authorized to close in
Calgary, Alberta, Toronto, Ontario or New York, New York, and, if the applicable
Business Day relates to any Eurodollar Rate Advances, a day on which banks are
not required or authorized to close in London, England.
"BUSINESS ENTITY" means a partnership, limited partnership,
limited liability partnership, corporation (including a business trust), limited
liability company, unlimited liability company, joint stock company, trust,
unincorporated association, joint venture or other entity.
"CALCULATION DATE" shall mean the last Business Day of each
month.
"CANADIAN CERTIFICATION REQUIREMENTS" has the meaning
specified in Section 2.16(g) of this Agreement.
"CANADIAN HUNTER" has the meaning specified in the
introduction to this Agreement.
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"CANADIAN TAXES" has the meaning specified in Section 2.16(a)
of this Agreement.
"CAPITALIZATION" means the sum (without duplication) of (i)
consolidated Debt of the Parent and its consolidated Subsidiaries, plus (ii) the
aggregate amount of Guarantees by the Parent or its consolidated Subsidiaries,
plus (iii) the sum of the preferred stock and common stockholders' equity of the
Parent, plus (iv) the cumulative amount by which such common stockholders'
equity of the Parent shall have been reduced by reason of non-cash write-downs
of long-term assets subsequent to December 31, 1997 (but excluding any such
amount with respect to assets of Project Finance Subsidiaries), minus (v) to the
extent otherwise included in determining the amounts computed under clause (iii)
above, the aggregate investment (net of any Project Financing) of the Parent and
its consolidated Subsidiaries in Project Finance Subsidiaries
"CDN.$" and "CDN. DOLLAR" mean lawful money of Canada.
"CDN.$ EQUIVALENT" means, at the date of determination, (i)
with respect to any amount in Cdn. Dollars, such amount and (ii) with respect to
any amount in U.S. Dollars, the equivalent in Cdn. Dollars of such amount,
determined by the Administrative Agent pursuant to Section 2.24 using the
Exchange Rate with respect to U.S. Dollars in effect for such amount under the
provisions of such Section.
"CDN. DOLLAR EURODOLLAR RATE" means, for any Interest Period
for each Cdn. Dollar Eurodollar Rate Advance comprising part of the same
Borrowing, the rate appearing on Page 3740 of the Dow Xxxxx Market 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 Canadian dollar deposits 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 Canadian dollar deposits
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 "Cdn. Dollar Eurodollar
Rate" with respect to such Borrowing for such Interest Period shall be the rate
at which Canadian dollar deposits of $5,000,000 and for a maturity comparable to
such Interest Period are offered by the principal London office of the
Administrative Agent 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.
"CDN. DOLLAR EURODOLLAR RATE ADVANCE" means an Advance
denominated in Cdn. Dollars that bears interest determined by reference to the
Cdn. Dollar Eurodollar Rate, as provided in Section 2.06(a)(iii)(x).
"CDOR RATE" means, for each day in any period, the annual rate
of interest that is the rate based on an average rate applicable to Cdn. Dollar
bankers' acceptances for a term equal to the term of the relevant Contract
Period (or for a term of 30 days for purposes of determining the Prime Rate)
appearing on the "Reuters Screen CDOR Page" (as defined in the International
Swaps and Derivatives Association, Inc. definitions, as modified and amended
from time to time) at approximately 8:00 a.m. (Calgary local time), on such
date, or if such date is not a Business Day, on the
9
immediately preceding Business Day, provided that if such rate does not appear
on the Reuters Screen CDOR Page on such date as contemplated, then the CDOR Rate
on such date shall be the arithmetic average of the Discount Rate quoted by each
Schedule I Reference Bank (determined by the Administrative Agent as of 8:00
a.m. Calgary local time on such date) which would be applicable to Cdn. Dollar
Bankers' Acceptances quoted by the banks listed in Schedule I of the Bank Act
(Canada) as of 8:00 a.m. (Calgary local time) on such date or, if such date is
not a Business Day, on the immediately preceding Business Day.
"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 with
any request, guideline or directive (whether or not having the force of law) of
any governmental authority if such request, guideline or directive is made or
issued after the date of this Agreement and reflects a change after the date of
this Agreement in the policies or practices to which such request, guideline or
directive relates.
"CLAM" means CLAM Petroleum B.V., a Netherlands company, and
CLAM's successors.
"CLAM CREDIT AGREEMENT" means the Amended and Restated Credit
Agreement dated as of July 25, 0000, xxxxx XxxxXxx Xxxxxxxxxxx Partnership,
CLAM, the banks parties thereto and Xxxxxx, as agent for such banks, as amended
and restated as of August 15, 1997, or any successor credit agreement entered
into for the purpose of refinancing such Amended and Restated Credit Agreement,
in each case, as amended, restated, supplemented, extended, replaced or
otherwise modified from time to time.
"COMMITMENT" has the meaning specified in Section 2.01(a).
"COMMITMENT INCREASE NOTICE" has the meaning specified in
Section 2.20(a).
"COMMITMENT INCREASE AGREEMENT" has the meaning specified in
Section 2.20(c).
"COMMITMENT PERCENTAGE" means, as to any Lender at any time,
the percentage that such Lender's Commitment then constitutes of the aggregate
Commitments (or, at any time after the Commitments shall have expired or
terminated, the percentage that the aggregate principal amount of such Lender's
Advances then outstanding constitutes of the aggregate principal amount of the
Advances then outstanding).
"CONSOLIDATED TANGIBLE NET WORTH" means, on a consolidated
basis, the excess of (i) the sum of (x) the preferred stock and common
stockholders' equity of Parent and (y) the cumulative amount by which
Consolidated Tangible Net Worth shall have been reduced by reason of non-cash
write-downs of long-term assets subsequent to December 31, 1997, over (ii) the
intangible assets of Parent and its consolidated Subsidiaries.
10
"CONTINGENT GUARANTY" has the meaning specified in the
definition of the term "Guaranty" contained in this Section 1.01.
"CONTINUE", "CONTINUATION" and "CONTINUED" each refers to a
continuation of Advances of one Type as Advances of another Type pursuant to
Section 2.08, 2.09 or 2.14 or the continuation of Advances of the same Type for
additional Interest Periods or Contract Periods, as applicable.
"CONTRACT PERIOD" means (a) with respect to Bankers'
Acceptances, the term of a B/A Advance selected by the applicable Borrower in
accordance with Section 2.02 commencing on the date of such B/A Advance and
expiring on a Business Day which shall be either 30 days, 60 days, 90 days, 180
days or, with the consent of each Lender, any other number of days from 1 to
180, provided that (i) subject to subparagraph (ii) below, each such period
shall be subject to such extensions or reductions as may be determined by the
Administrative Agent to ensure that each Contract Period shall expire on a
Business Day, and (ii) no Contract Period shall extend beyond the Revolving
Commitment Termination Date and (b) with respect to a B/A Loan, an Interest
Period equal to the Contract Period of the Bankers' Acceptances for which it is
a substitute.
"CURRENCY DUE" has the meaning specified in Section 2.23.
"DEBT" of any Person means, without duplication (i)
indebtedness of such Person for borrowed money or in respect of bankers'
acceptances, (ii) obligations of such Person (other than any portion of any
trade payable obligation of such Person which shall not have remained unpaid for
91 days or more from the later of (A) the original due date of such portion and
(B) the customary payment date in the industry and relevant market for such
portion) to pay the deferred purchase price of property or services, (iii)
obligations of such Person as lessee under leases which shall have been or
should be, in accordance with GAAP, recorded as capital leases, and (iv) Overdue
Reimbursement Obligations; provided, however, that where any such indebtedness
or obligation of such Person is made jointly, or jointly and severally, with any
third party or parties, which are not the Borrowers or Parent, or any of their
consolidated Subsidiaries, the amount thereof for the purposes of this
definition only shall be the pro rata portion thereof payable by such Person, so
long as such third party or parties have not defaulted on its or their joint and
several portions thereof, and provided, further, that the following shall not at
any time constitute Debt: (1) obligations of such Person to reimburse a bank or
other Person in respect of amounts paid under a letter of credit or similar
instrument that are not Overdue Reimbursement Obligations, (2) Project
Financing, (3) the Xxxxxx Gold Loans unless, at such time, for any reason
whatsoever, (A) no royalty income shall have accrued under the Royalty Agreement
dated as of December 5, 1984 between Copper Range Company, a Michigan
corporation, and LL&E during the three consecutive fiscal quarters of LL&E most
recently ended prior to such time or (B) any payment required to have been made
to LL&E under such agreement prior to such time shall not have been paid on, or
within 30 days after, the date such payment is due, and (4) amounts borrowed by
either Borrower or Parent and their consolidated Subsidiaries under life
insurance policies issued to one or more of the foregoing and covering employees
or former employees of one or more of the foregoing not in excess of the cash
surrender value of such policies.
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"DISCOUNT PROCEEDS" means, for any B/A, an amount (rounded up
to the nearest whole cent, and with one-half of one cent being rounded up)
calculated on the date of the Borrowing by multiplying:
(i) the face amount of the B/A; by
(ii) the quotient of one divided by the sum of one plus
the product of
(A) the Discount Rate (expressed as a decimal) applicable
to such B/A, multiplied by
(B) a fraction, the numerator of which is the Contract
Period of the B/A and the denominator of which is 365, with
such quotient being rounded up or down to the nearest fifth
decimal place, and with .000005 being rounded up.
"DISCOUNT RATE" means:
(i) with respect to any Lender which is a Schedule I
chartered bank under the Bank Act (Canada), as applicable to a B/A
being purchased by such Lender on any day, the CDOR Rate; and
(ii) with respect to any Lender which is not a Schedule I
chartered bank under the Bank Act (Canada), as applicable to a B/A
being purchased by such Lender on any day, the lesser of (A) the CDOR
Rate plus 10 basis points (0.10%), and (B) the average (as determined
by the Administrative Agent in good faith) of the respective percentage
discount rates (expressed to two decimal places and rounded upward, if
not in an increment of 1/100th of 1%, to the nearest 0.01%) quoted by
the Schedule II/III Reference Banks as the percentage discount rates at
which the Schedule II/III Reference Banks would, in accordance with
their normal market practices, at or about 10:00 a.m. (Toronto, Ontario
time) on such date, be prepared to purchase bankers' acceptances
accepted by the Schedule II/III Reference Banks having a face amount
and term comparable to the face amount and term of such B/A.
"EFFECTIVE DATE" means the date on which the conditions
precedent set forth in Section 3.01 have been satisfied (or compliance therewith
shall have been waived by the Lenders), which date the Administrative Agent will
promptly confirm to the Borrowers and the Lenders in writing, and which date
shall be no earlier than December 4, 2003.
"EFFECTIVE FEDERAL FUNDS RATE" means, for any day, the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York or, if such rate
is not so published for any day which is a Business Day, the average of the
quotations for such day on such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by it.
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"ELIGIBLE ASSIGNEE" means, with respect to any particular
assignment under Section 9.07, any bank or other entity approved in writing by
the Borrowers expressly with respect to such assignment and, except as to such
an assignment by JPMorgan so long as JPMorgan is the Administrative Agent
hereunder, the Administrative Agent shall be an Eligible Assignee for purposes
of this Agreement, provided that neither the Administrative Agent's nor the
Borrowers' approval shall be unreasonably withheld, and provided further that no
such approval shall be necessary if (i) the assignee is a Lender Affiliate, (ii)
the assignee was a Lender immediately prior to such assignment, or (iii) if an
Event of Default shall then be continuing.
"EQUITY INTERESTS" means any capital stock, partnership, joint
venture, member or limited liability or unlimited liability company interest,
beneficial interest in a trust or similar entity or other equity interest or
investment of whatever nature.
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, and the regulations promulgated and rulings
issued from time to time thereunder.
"ERISA AFFILIATE" means any Person who is a member of Parent's
controlled group within the meaning of Section 4001(a)(14)(A) of ERISA.
"EURODOLLAR RATE" means the Cdn. Dollar Eurodollar Rate or the
U.S. Dollar Eurodollar Rate, as applicable.
"EURODOLLAR RATE ADVANCE" means a Cdn. Dollar Eurodollar Rate
Advance or a U.S. Dollar Eurodollar Rate Advance, as applicable.
"EURODOLLAR RATE MARGIN" means for any date the percentage per
annum applicable on such date as set forth in the row labeled "Applicable
Margin" on Schedule II hereto, which is based on the ratings (or lack thereof)
by Moody's or S&P or both of the public long-term senior unsecured debt
securities of Parent.
"EVENTS OF DEFAULT" has the meaning specified in Section 6.01.
"EXCHANGE RATE" shall mean with respect to U.S. Dollars on a
particular date, the rate at which U.S. Dollars may be exchanged into Cdn.
Dollars as quoted by the Bank of Canada on the Reuters Bank of Canada page (or,
if not so quoted, the spot rate of exchange quoted for wholesale transactions
made by the Administrative Agent at Calgary, Alberta) at 12:00 noon, Toronto,
Ontario time, on the relevant Reuters screen currency page; 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
applicable to determine such rate, and such determination shall be conclusive
absent manifest error.
"EXTENSION REQUEST" means each request by each Borrower made
pursuant to Section 2.21 for the Lenders to extend the Revolving Commitment
Termination Date, which shall contain the information in respect of such
extension specified in Exhibit G and shall be delivered to the Administrative
Agent in writing.
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"FACILITY FEE PERCENTAGE" means for any date the percentage
per annum applicable on such date as set forth in the row labeled "Facility Fee
Percentage" on Schedule II hereto, which is based on the ratings (or lack
thereof) by Moody's or S&P or both of the public long-term senior unsecured debt
securities of Parent.
"FINAL MATURITY DATE" means the date occurring five years and
one day after the Revolving Commitment Termination Date or, if such day is not a
Business Day, the next succeeding Business Day.
"FINANCING DOCUMENTS" means this Agreement, the Notices of
Borrowing and the Notes, and each other instrument or agreement entered into by
Parent or either Borrower in connection with this Agreement, as such instrument
or agreement may be amended, modified or supplemented from time to time in
accordance herewith.
"FOREIGN LENDER" means any Lender that is neither a resident
of Canada for purposes of the Income Tax Act nor a Schedule III Bank which
receives all amounts paid under this Agreement in respect of its "Canadian
banking business", as defined in the Income Tax Act. For purposes of this
definition, Canada and each province thereof shall be deemed to constitute a
single jurisdiction.
"GAAP" means generally accepted accounting principles in the
United States of America, as in effect from time to time.
"GUARANTEED PARTIES" means the Administrative Agent, the
Arranger, the Lenders and each other Person to whom any of the Obligations are
or shall be owed.
"GUARANTOR" means each of (i) the Parent, in its capacity as
guarantor of the Obligations of BRCL and Canadian Hunter, (ii) BRCL, in its
capacity as guarantor of the Obligations of Canadian Hunter, and (iii) Canadian
Hunter, in its capacity as guarantor of the Obligations of BRCL and "GUARANTORS"
means, collectively, all of the foregoing.
"GUARANTY", "GUARANTEED" and "GUARANTEEING" each means any act
by which a Person assumes, guarantees, endorses or otherwise incurs direct or
contingent liability in connection with, or agrees to purchase or otherwise
acquire or otherwise assures a creditor against loss in respect of, any Debt or
Project Financing of any Person other than the Borrowers, the Parent or any of
their consolidated Subsidiaries (excluding (i) any liability by endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business, (ii) any liability in connection with obligations
of the Borrowers, Parent or any of their consolidated Subsidiaries, including
obligations under any conditional sales agreement, equipment trust financing or
equipment lease, (iii) any liability or other act of the Borrowers, Parent or
any of their consolidated Subsidiaries under arrangements entered into in
connection with the CLAM Credit Agreement, U.S. Short-Term Revolving Credit
Agreement or the U.S. Long-Term Revolving Credit Agreement, and (iv) any such
act in connection with a Project Financing that either (A) guarantees to the
provider of such Project Financing or any other Person performance of the
acquisition, improvement, installation, design, engineering, construction,
development, completion, maintenance or operation of, or otherwise affects any
such act in respect of, all or any portion of the project that is financed by
such Project Financing or performance by a Project Financing Subsidiary of
14
certain obligations to Persons other than the provider of such Project
Financing, except during any period, and then only to the extent, that such
guaranty is a direct guaranty of payment of such Project Financing (other than a
guaranty of payment of the type referred to in subclause (B) below) or (B) is
contingent upon, or the obligation to pay or perform under which is contingent
upon, the occurrence or existence of any event or condition other than or in
addition to (1) the passage of time, (2) any Project Financing becoming due, (3)
the commencement of bankruptcy, insolvency or similar proceedings by the obligor
on any Project Financing or (4) the failure of the obligor on any Project
Financing to satisfy a financial ratio, covenant or other similar financial
measurement test, but only during such period as such act is not by its terms
presently enforceable, or if so enforceable, there is not a reasonable
probability that the guarantor will be called upon to perform thereunder (or to
make capital contributions in lieu of performance thereunder) (any such act
referred to in this clause (iv) being a "Contingent Guaranty")); provided,
however, that for the purposes of this definition the liability of the
Borrowers, Parent or any of their Subsidiaries with respect to any obligation as
to which a third party or parties are jointly, or jointly and severally, liable
as a guarantor or otherwise as contemplated hereby and have not defaulted on its
or their portions thereof, shall be only its pro rata portion of such
obligation.
"INCOME TAX ACT" means the Income Tax Act (Canada), as amended
from time to time.
"INDEMNIFIED PARTY" means any or all of the Lenders, the
Arranger and the Administrative Agent.
"INITIAL LENDERS" has the meaning specified in the
introduction to this Agreement.
"INSUFFICIENCY" means, with respect to any Plan, the amount,
if any, of its unfunded benefit liabilities, as defined in Section 4001(a)(18)
of ERISA.
"INTEREST PERIOD" means (a) for each Eurodollar Rate Advance
(other than a B/A Loan) comprising part of the same Borrowing, the period
beginning on the date of such Advance or the date of the Continuation of any
Advance as such Advance and ending on the last day of the period selected by the
applicable Borrower pursuant to the provisions below and, thereafter, each
subsequent period commencing on the last day of the immediately preceding
Interest Period and ending on the last day of the period selected by the
applicable Borrower pursuant to the provisions below and (b) for each B/A Loan,
the period beginning on the date of such B/A Loan and ending on the last day of
the Contract Period of the Bankers' Acceptances for which such B/A Loan is a
substitute. The duration of each such Interest Period for a Eurodollar Rate
Advance (other than a B/A Loan) shall be (i) one, two, three or six months upon
notice received by the Administrative Agent not later than 10:00 a.m. (Calgary
local time) on the third Business Day prior to the first day of such Interest
Period, or (ii) subject to availability to each Lender, nine or twelve months
upon notice received by the Administrative Agent not later than 10:00 a.m.
(Calgary local time) on the fourth Business Day prior to the first day of such
Interest Period, in each case as the applicable Borrower may select; provided,
however, that:
15
(A) the duration of any Interest Period which commences
before the Termination Date and would otherwise end after the
Termination Date shall end on the Termination Date and the
duration of any Interest Period which would otherwise end
after the Final Maturity Date shall end on the Final Maturity
Date;
(B) if the last day of such Interest Period would
otherwise occur on a day which is not a Business Day, such
last day shall be extended to the next succeeding Business
Day, except if such extension would cause such last day to
occur in a new calendar month, then such last day shall occur
on the next preceding Business Day;
(C) Interest Periods commencing on the same date for
Advances comprising the same Borrowing shall be of the same
duration; and
(D) any Interest Period which begins on the last Business
Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end
of such Interest Period) shall, subject to clause (A) above,
end on the last Business Day of a calendar month.
"JPMORGAN" means JPMorgan Chase Bank, Toronto Branch.
"JUDGMENT CURRENCY" has the meaning specified in Section 2.23.
"LENDER AFFILIATE" means, with respect to any Lender, (a) an
Affiliate of such Lender or (b) any entity (whether a corporation, partnership,
trust or otherwise) that is engaged in making, purchasing, holding or otherwise
investing in bank loans and similar extensions of credit in the ordinary course
of its business and is administered or managed by a Lender or an Affiliate of
such Lender (with such Lender or Affiliate having the sole right and
responsibility with respect to the approval of amendments and waivers to this
Agreement, the Notes and all related agreements and instruments entered into
from time to time).
"LENDERS" means the Initial Lenders, each bank or other
financial institution that shall become a party hereto pursuant to Section 2.20,
and each Eligible Assignee that shall become a party hereto pursuant to Section
9.07(a), (b) and (d).
"LIEN" means any lien, security interest or other charge or
encumbrance, or any assignment of the right to receive income, or any other type
of preferential arrangement, in each case to secure any Debt or any Guaranty of
any Person; provided that (i) the creation of interests in property of the
character commonly referred to as a "royalty interest" or "overriding royalty
interest", farmouts, joint operating or unitization agreements, or other similar
transactions in the ordinary course of business and (ii) borrowings under life
insurance policies as described in clause (4) of the proviso to the definition
of "Debt" shall not be deemed to create a Lien.
"LL&E" means The Louisiana Land and Exploration Company, a
Maryland corporation and a wholly-owned Subsidiary of the Parent.
16
"MAJORITY LENDERS" means i) for purposes of acceleration of
the Advances and other amounts outstanding under Article 6 hereof, Lenders
holding at least 51% of the then aggregate unpaid principal amount of the
Advances held by Lenders or (ii) for all other purposes of this Agreement,
Lenders having at least 51% of the Commitments.
"MARGIN STOCK" means "margin stock" as defined in Regulation U
of the Board of Governors of the United States Federal Reserve System, as in
effect from time to time.
"MATERIAL ADVERSE EFFECT" means a material adverse effect on
the financial condition or operations of Parent and its consolidated
Subsidiaries on a consolidated basis.
"MATERIAL PLAN" means any Plan the assets of which exceed
U.S.$50,000,000 or the liabilities of which for unfunded vested benefits
determined on a plan termination basis (in accordance with Title IV of ERISA)
exceed U.S.$10,000,000.
"MATERIAL SUBSIDIARY" means, from time to time, any Subsidiary
of Parent (other than a Project Financing Subsidiary) then owning assets
(determined on a consolidated basis) that equal or exceed 10% of the book value
of the consolidated assets of Parent and its consolidated Subsidiaries at such
time; provided that for purposes of this definition the term "Material
Subsidiary" shall always include each of the Borrowers and their successors.
"MOODY'S" means Xxxxx'x Investors Service, Inc.
"XXXXXX" means Xxxxxx Guaranty Trust Company of New York, and
its successors.
"XXXXXX GOLD LOANS" means the obligations of LL&E under the
respective Credit Agreements dated as of December 23, 1994 and March 31, 1995
between LL&E and Xxxxxx, or under any additional credit agreements on
substantially similar terms, in each case, as amended, restated, supplemented,
extended, replaced or otherwise modified from time to time, provided that the
aggregate outstanding amount borrowed thereunder shall at no time exceed 35,000
ounces of gold.
"MULTIEMPLOYER PLAN" means a "multiemployer plan" as defined
in Section 4001(a)(3) of ERISA to which Parent or any ERISA Affiliate is making
or accruing an obligation to make contributions, or has within any of the
preceding five plan years made or accrued an obligation to make contributions,
such plan being maintained pursuant to one or more collective bargaining
agreements.
"MULTIPLE EMPLOYER PLAN" means a single employer plan, as
defined in Section 4001(a)(15) of ERISA, which (i) is maintained for employees
of Parent or an ERISA Affiliate and at least one Person other than the
Borrowers, Parent and its ERISA Affiliates or (ii) was so maintained and in
respect of which Parent or an ERISA Affiliate could have liability under Section
4064 or 4069 of ERISA in the event such plan has been or were to be terminated.
17
"NEW LENDER" has the meaning specified in Section 2.20(b).
"NEW LENDER AGREEMENT" has the meaning specified in Section
2.20(b).
"NOTE" means a promissory note of a Borrower payable to the
order of any Lender, in substantially the form of Exhibit A hereto, evidencing
the aggregate indebtedness of such Borrower to such Lender resulting from the
Advances made by such Lender.
"NOTICE OF BORROWING" has the meaning specified in Section
2.02(a).
"NOTICE OF CONTINUATION" has the meaning specified in Section
2.09.
"OBJECTING LENDERS" has the meaning specified in Section
2.21(a).
"OBLIGATIONS" means (a) the obligations of each Borrower in
respect of the due and punctual payment of (i) the principal of and interest on
the Advances made to it and the Notes executed by it when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, and (ii) all fees, expenses, indemnities, expense reimbursement
obligations and other obligations, monetary or otherwise, of either Borrower
under this Agreement or any other Financing Document and (b) all other
obligations, monetary or otherwise, of either Borrower under each Financing
Document to which it is a party.
"OFFERED INCREASE AMOUNT" has the meaning specified in Section
2.20(a).
"ORIGINAL EFFECTIVE DATE" means February 25, 1998.
"OTHER TAXES" has the meaning specified in Section 2.16(d) of
this Agreement.
"OVERDUE REIMBURSEMENT OBLIGATIONS" means, with respect to any
Person, non-contingent obligations of such Person to reimburse a bank or other
Person in respect of amounts paid under a letter of credit or similar instrument
that are not paid on or prior to the fifth Business Day after the due date
therefor.
"PARENT" has the meaning specified in the introduction to this
Agreement.
"PAYMENT OFFICE" means the Administrative Agent's office
located at 000 Xxx Xxxxxx, Xxxxx 0000, Royal Xxxx Xxxxx, Xxxxx Xxxxx, Xxxxxxx,
Xxxxxxx X0X 0X0 (or such other office or individual as the Administrative Agent
may hereafter designate in writing to the other parties hereto).
"PBGC" means the Pension Benefit Guaranty Corporation (or any
successor).
"PERMITTED ASSETS" means (i) hydrocarbon or other reserves
(including proved, probable, possible or speculative reserves), (ii) properties,
assets, rights or business related to reserves (including real property,
gathering systems, plants, pipelines, equipment and processing and treatment
facilities), (iii) other fixed or operating assets
18
and (iv) Equity Interests in any and all Business Entities that are or become
Subsidiaries of a Borrower or Parent owning assets referred to in any of the
foregoing clauses.
"PERMITTED LIENS" means:
(i) inchoate Liens and charges imposed by law and incidental
to construction, maintenance, development or operation of properties,
or the operation of business, in the ordinary course of business if
payment of the obligation secured thereby is not yet overdue or if the
validity or amount of which is being contested in good faith by either
Borrower, Parent or any of their respective Subsidiaries;
(ii) Liens for taxes, assessments, obligations under workers'
compensation or other social security legislation or other governmental
requirements, charges or levies, in each case not yet overdue;
(iii) Liens reserved in any oil, gas or other mineral lease
entered into in the ordinary course of business for rent, royalty or
delay rental under such lease and for compliance with the terms of such
lease;
(iv) easements, servitudes, rights-of-way and other rights,
exceptions, reservations, conditions, limitations, covenants and other
restrictions which do not materially interfere with the operation,
value or use of the properties affected thereby;
(v) conventional provisions contained in any contracts or
agreements affecting properties under which either Borrower, Parent or
any of their respective Subsidiaries is required immediately before the
expiration, termination or abandonment of a particular property to
reassign to such Person's predecessor in title all or a portion of such
Person's rights, titles and interests in and to all or a portion of
such property;
(vi) any Lien reserved in a grant or conveyance in the nature
of a farm-out or conditional assignment to either Borrower, Parent or
any of their respective Subsidiaries entered into in the ordinary
course of business on reasonable terms to secure undertakings of either
Borrower, Parent or any such Subsidiary in such grant or conveyance;
(vii) any Lien consisting of (A) statutory landlord's liens
under leases to which either Borrower, Parent or any of their
respective Subsidiaries is a party or other Liens on leased property
reserved in leases thereof for rent or for compliance with the terms of
such leases, (B) rights reserved to or vested in any municipality or
governmental, statutory or public authority to control or regulate any
property of either Borrower, Parent or any of their respective
Subsidiaries, or to use such property in any manner which does not
materially impair the use of such property for the purposes for which
it is held by such Borrower, Parent or any such Subsidiary, (C)
obligations or duties to any municipality or public authority with
respect to any franchise, grant, license, lease or permit and the
rights reserved or vested in any governmental authority or public
utility to terminate any such franchise, grant, license, lease or
permit or to condemn or
19
expropriate any property, and (D) zoning laws and ordinances and
municipal regulations;
(viii) Liens on Equity Interests in, or Debt or other
obligations of, CLAM owned by the Parent, either Borrower or any of
their respective Subsidiaries, which Liens secure Debt of CLAM; and
(ix) any Lien on any assets (including Equity Interests and
other obligations) securing Debt incurred or assumed for the purpose of
financing all or any part of the cost of acquiring, improving,
installing, designing, engineering, developing (including drilling), or
constructing such assets, provided that such Lien attaches to such
assets concurrently with or within 360 days after the acquisition or
completion of development, construction or installation thereof or
improvement thereto.
"PERSON" means an individual, a Business Entity, or a country
or any political subdivision thereof or any agency or instrumentality of such
country or subdivision.
"PLAN" means a Single Employer Plan or a Multiple Employer
Plan.
"PRIME RATE" means, for each day in any period, a fluctuating
interest rate per annum as shall be in effect from time to time which rate per
annum shall at all times for such day be equal to the higher of:
(i) the annual rate of interest announced publicly by the
Administrative Agent and in effect as its prime rate at its principal
office in Toronto, Ontario on such day for determining interest rates
on Cdn. Dollar-denominated commercial loans made in Canada; and
(ii) 0.50% per annum above the 30 day CDOR Rate in effect on
such date.
"PRIME RATE ADVANCE" means an Advance denominated in Cdn.
Dollars that bears interest at a rate based on the Prime Rate, as provided in
Section 2.06(a)(i).
"PRIME RATE BORROWING" means a Borrowing comprised of one or
more Prime Rate Advances.
"PROJECT FINANCING" means any Debt incurred to finance or
refinance the acquisition, improvement, installation, design, engineering,
construction, development, completion, maintenance or operation of, or otherwise
in respect of, all or any portion of any project, or any asset related thereto,
and any Guaranty with respect thereto, other than any portion of such Debt or
Guaranty permitting or providing for recourse against Parent, either Borrower or
any of their respective Subsidiaries other than (i) recourse to the Equity
Interests in, Debt or other obligations of, or assets of, one or more Project
Financing Subsidiaries, and (ii) such recourse as exists under any Contingent
Guaranty.
"PROJECT FINANCING SUBSIDIARY" means any Subsidiary of Parent
or a Borrower whose principal purpose is to incur Project Financing, or to
become a direct or indirect partner, member or other equity participant or owner
in a Business Entity so
20
created, and substantially all the assets of which Subsidiary or Business Entity
are limited to those assets being financed (or to be financed), or the operation
of which is being financed (or to be financed), in whole or in part by a Project
Financing or to Equity Interests in, or Debt or other obligations of, one or
more other such Subsidiaries or Business Entities.
"RE-ALLOCATION DATE" has the meaning specified in Section
2.20(e).
"REFERENCE BANKS" means JPMorgan, Citibank, N.A., Canadian
branch and Bank of America, N.A., Canada Branch.
"REGISTER" has the meaning specified in Section 9.07(c).
"RELATED PERSON" means, with respect to any member of the
group comprised of a particular Business Entity and its Affiliates and the
respective directors, officers, employees or agents of such Business Entity and
its Affiliates, each other member of such group.
"REQUIRED LENDERS" means Lenders (i) that are not Objecting
Lenders with respect to any previous Extension Request and (ii) that have
Commitment Percentages aggregating at least 51% of the aggregate Commitment
Percentages of such non-Objecting Lenders.
"RESET DATE" has the meaning specified in Section 2.24.
"REVOLVING ADVANCE" means an Advance made or to be made by a
Lender pursuant to Section 2.01(a).
"REVOLVING COMMITMENT TERMINATION DATE" means December 2,
2004, or, at the option of the Borrowers, such later date as shall be determined
pursuant to the provisions of Section 2.21 with respect to non-Objecting
Lenders, provided that if such date is not a Business Day, the Revolving
Commitment Termination Date shall be the next preceding Business Day.
"S&P" means Standard and Poor's, a division of The XxXxxx-Xxxx
Companies, Inc.
"SCHEDULE I BANKS" means a bank that is a Canadian chartered
bank listed on Schedule I under the Bank Act (Canada).
"SCHEDULE I REFERENCE BANKS" means each of Royal Bank of
Canada and such other Schedule I Banks as are agreed to from time to time by the
Borrowers and the Administrative Agent, each acting reasonably; provided that
there shall be no more than three Schedule I Reference Banks at any one time.
"SCHEDULE II LENDER" has the meaning specified in Section 1.05
of this Agreement.
"SCHEDULE II/III REFERENCE BANKS" means JPMorgan Chase Bank,
Toronto Branch, Citibank, N.A., Canadian branch and Bank of America, N.A.,
Canada Branch or such other Schedule II chartered banks under the Bank Act
(Canada) or
21
Schedule III Banks as are mutually agreed upon by the Administrative Agent and
the Borrowers.
"SCHEDULE III BANK" means a bank listed on Schedule III under
the Bank Act (Canada).
"SINGLE EMPLOYER PLAN" means a single employer plan, as
defined in Section 4001(a)(15) of ERISA, that (i) is maintained for employees of
Parent or an ERISA Affiliate and no Person other than Parent and its ERISA
Affiliates or (ii) was so maintained and in respect of which Parent or an ERISA
Affiliate could have liability under Section 4069 of ERISA in the event such
plan has been or were to be terminated.
"SUBSIDIARY" means, as to any Person, any Business Entity of
which shares of stock or other Equity Interests having ordinary voting power
(other than stock or such other Equity Interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of
directors or other managers of such Business Entity are at the time owned,
directly or indirectly through one or more Subsidiaries, or both, by such
Person. Unless otherwise qualified, all references to a "Subsidiary" or to
"Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries of
Parent.
"TAXES" has the meaning specified in Section 2.16(b) of this
Agreement.
"TERMINATION DATE" means the earlier of (i) the Revolving
Commitment Termination Date and (ii) the date of termination in whole of the
Commitments pursuant to Section 2.04 or 6.01.
"TERMINATION EVENT" means (i) a "reportable event," as such
term is described in Section 4043 of ERISA (other than a "reportable event" not
subject to the provision for 30-day notice to the PBGC), or an event described
in Section 4062(e) of ERISA, or (ii) the withdrawal of Parent or any ERISA
Affiliate from a Multiple Employer Plan during a plan year in which it was a
"substantial employer," as such term is defined in Section 4001(a)(2) of ERISA,
or the incurrence of liability by Parent or any ERISA Affiliate under Section
4064 of ERISA upon the termination of a Multiple Employer Plan, or (iii) the
filing of a notice of intent to terminate a Plan or the treatment of a Plan
amendment as a termination under Section 4041 of ERISA, or (iv) the institution
of proceedings to terminate a Plan by the PBGC under Section 4042 of ERISA, or
(v) the conditions set forth in Section 302(f)(1)(A) and (B) of ERISA to the
creation of a lien upon property or rights to property of Parent or any ERISA
Affiliate for failure to make a required payment to a Plan are satisfied, or
(vi) the adoption of an amendment to a Plan requiring the provision of security
to such Plan, pursuant to Section 307 of ERISA, or (vii) any other event or
condition which might constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan.
"TERM ADVANCE" means an Advance made or to be made by a Lender
pursuant to Section 2.01(b).
22
"TRANSACTIONS" means the execution, delivery and performance
by the Borrowers and Parent (as applicable) of this Agreement and the other
Financing Documents and the borrowing of Advances.
"TYPE" has the meaning specified in the definition of
"Advance".
"U.S.$" and "U.S. DOLLARS" means lawful money of the United
States of America.
"U.S. DOLLAR EURODOLLAR RATE" means, for any Interest Period
for each U.S. Dollar Eurodollar Rate Advance comprising part of the same
Borrowing, the rate appearing on Page 3750 of the Dow Xxxxx Market 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 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 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 "U.S. Dollar Eurodollar Rate"
with respect to such Borrowing for such Interest Period shall be the rate at
which dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the Administrative
Agent 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.
"U.S. DOLLAR EURODOLLAR RATE ADVANCE" means an Advance
denominated in U.S. Dollars that bears interest determined by reference to the
U.S. Dollar Eurodollar Rate, as provided in Section 2.06(a)(iii)(y).
"U.S. LONG-TERM REVOLVING CREDIT AGREEMENT" means the
Long-Term Revolving Credit Agreement dated as of February 25, 1998, as amended
and restated through the date hereof, among the Borrower, the financial
institutions party thereto, JPMorgan Chase Bank, as administrative agent and
auction administrative agent for such financial institutions, Citibank, N.A. and
Fleet National Bank, as co-syndication agents, and Bank of America, N.A. and
Toronto Dominion (Texas), Inc., as co-documentation agents, as the same may be
amended, restated, supplemented, extended, replaced or otherwise modified from
time to time.
"U.S. SHORT-TERM REVOLVING CREDIT AGREEMENT' means the
Short-Term Revolving Credit Agreement dated as of February 25, 1998, as amended
and restated through the date hereof, among the Borrower, the financial
institutions party thereto, JPMorgan Chase Bank, as administrative agent and
auction administrative agent for such financial institutions, Citibank, N.A. and
Fleet National Bank, as co-syndication agents, and Bank of America, N.A. and The
Bank of Nova Scotia, as co-documentation agents, as the same may be amended,
restated, supplemented, extended, replaced or otherwise modified from time to
time.
"UTILIZATION FEE PERIOD" means any period during the term of
this Agreement commencing on the Effective Date or on a subsequent January 1,
April 1, July
23
1 or October 1 and ending in each case on the earliest to occur of the next
succeeding March 31, June 30, September 30 or December 31 and the Termination
Date.
"WITHDRAWAL LIABILITY" shall have the meaning given such term
under Part I of Subtitle E of Title IV of ERISA.
SECTION 1.02 COMPUTATION OF TIME PERIODS. Unless otherwise
stated in this Agreement, in the computation of a period of time from a
specified date to a later specified date, the word "from" means "from and
including" and the words "to" and "until" each means "to but excluding."
SECTION 1.03 ACCOUNTING AND OTHER TERMS. Except as otherwise
expressly provided herein, all terms of an accounting or financial nature used
herein or in any determination of compliance with any covenant or other
provision hereof shall be construed in accordance with generally accepted
accounting principles referred to in Section 1.03 of the U.S. Long-Term
Revolving Credit Agreement as such agreement is in effect on the date hereof.
"INCLUDE", "INCLUDES" and "INCLUDING" shall be deemed to be followed by "without
limitation" whether or not they are in fact followed by such words or words of
like import. References to any agreement or contract are to such agreement or
contract as amended, modified or supplemented from time to time in accordance
with the terms hereof and thereof.
SECTION 1.04 REFERENCES. The words "HEREOF", "HEREIN" and
"HEREUNDER" and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement, and Article, Section, Schedule and Exhibit references are to this
Agreement unless otherwise specified.
SECTION 1.05 SCHEDULE III BANKS. Upon the assignment in
accordance with Section 9.07 by any Lender that is a Schedule II chartered bank
under the Bank Act (Canada) (a "Schedule II Lender") of the rights and
obligations of such Schedule II Lender hereunder to its Lender Affiliate that is
a Schedule III Bank, all references herein to such Schedule II Lender shall be
deemed to be references to such Schedule III Bank.
24
ARTICLE 2
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01 REVOLVING ADVANCES. (a) Each Lender severally
agrees, on the terms and conditions hereinafter set forth, to make Revolving
Advances to the Borrowers from time to time on any Business Day during the
period from the Effective Date to and including the Termination Date in an
aggregate amount not to exceed at any time outstanding the amount set forth
opposite such Lender's name on Schedule III hereto, or, if such Lender has
entered into any Assignment and Acceptance or Commitment Increase Agreement or a
New Lender Agreement, set forth for such Lender in the Register maintained by
the Administrative Agent pursuant to Section 9.07(c), as such amount may be
reduced pursuant to Section 2.04 (such Lender's "COMMITMENT"). Subject to
Section 2.11(e) with respect to B/A Advances, each Borrowing consisting of
Revolving Advances shall be in an aggregate amount that is (a) not less than
Cdn.$5,000,000 in the case of a Borrowing comprised of Prime Rate Advances, (b)
not less than U.S.$5,000,000 in the case of a Borrowing comprised of Base Rate
Advances, (c) not less than Cdn.$10,000,000 in the case of a Borrowing comprised
of Cdn. Dollar Eurodollar Rate Advances, and (d) not less than U.S.$10,000,000
in the case of a Borrowing comprised of U.S. Dollar Eurodollar Rate Advances
(or, in the case of a Borrowing of Prime Rate Advances or Base Rate Advances,
the aggregate unused Commitments, if less) and shall consist of Advances of the
same Type made on the same day by the Lenders ratably according to their
respective Commitments. Notwithstanding the foregoing, a Foreign Lender shall
not accept Bankers' Acceptances, and shall not be required to make Prime Rate
Advances and no Lender (other than a Foreign Lender pursuant to Section 2.11(i))
shall be required to make Cdn. Dollar Eurodollar Rate Advances. If a Borrowing
of Prime Rate Advances is requested, a Foreign Lender will participate in such
Borrowing by way of Base Rate Advances. If a Borrowing by way of Bankers'
Acceptances is requested, a Foreign Lender will participate in such Borrowing by
way of Cdn. Dollar Eurodollar Rate Advances in accordance with Section 2.11(i).
Within the limits of each Lender's Commitment, the Borrowers may make more than
one Borrowing on any Business Day and may borrow, prepay pursuant to Section
2.10, and reborrow under this Section 2.01(a).
(b) TERM ADVANCES. On the Revolving Commitment
Termination Date (unless the Commitments shall have been terminated in full
pursuant to Article 6), each outstanding Revolving Advance will Continue as a
Term Advance to the applicable Borrower of like amount. Term Advances that are
repaid or prepaid, and not Continued, may not be reborrowed; provided, however,
that Advances may be Continued, at the election of the applicable Borrower,
through the Final Maturity Date by the delivery of a Notice of Continuation.
Eurodollar Rate Advances and B/A Loans for which the Interest Period shall not
have terminated as of the Revolving Commitment Termination Date shall be
Continued as Eurodollar Rate Advances or B/A Loans, as the case may be, for the
then applicable Interest Period and Prime Rate Advances and Base Rate Advances
shall be Continued as Prime Rate Advances or Base Rate Advances, as applicable,
after the Revolving Commitment Termination Date, unless the applicable Borrower
shall have elected otherwise by delivery of a Notice of Continuation. In
accordance with Section 2.08, the applicable Borrower may elect to Continue
Borrowings as Borrowings of the same or a different Type or, in the case of a
Eurodollar Rate Advance or B/A Advance,
25
may elect Interest Periods or Contract Periods therefor; provided that the
Borrowers shall not be entitled to elect to Continue any Borrowings if the
Interest Period or Contract Period requested with respect thereto would end
after the Final Maturity Date. After the Revolving Commitment Termination Date,
no Lender shall have any further Commitment to make additional Advances.
SECTION 2.02 MAKING THE ADVANCES.
(a) Each Borrowing shall be made on notice by the
applicable Borrower to the Administrative Agent (a "NOTICE OF BORROWING")
received by the Administrative Agent:
(i) in the case of a proposed Borrowing comprised of Prime
Rate Advances or Base Rate Advances on the day of notice, provided that
notice is received by the Administrative Agent not later than 9:00 A.M.
(Calgary local time) on the Business Day of such proposed Borrowing;
(ii) in the case of a proposed Borrowing comprised of
Eurodollar Rate Advances, not later than 10:00 a.m. (Calgary local
time) on the third Business Day prior to the date of such proposed
Borrowing; and
(iii) in the case of a proposed Borrowing comprised of B/A
Advances, not later than 10:00 a.m. (Calgary local time) on the second
Business Day prior to the date of such proposed Borrowing or, if such
Borrowing shall include B/A Loans, on the third Business Day prior to
the date of such proposed Borrowing.
Each Notice of Borrowing shall be by telecopy, telefax or
other teletransmission or by telephone (and if by telephone, confirmed promptly
by telecopier, telefax or other teletransmission), in substantially the form of
Exhibit B hereto, specifying therein the requested (w) date of such Borrowing,
(x) Type of Advances comprising such Borrowing and, additionally, whether such
Borrowing consists of Revolving Advances or Term Advances, (y) aggregate amount
of such Borrowing, and (z) in the case of a Borrowing comprised of Eurodollar
Rate Advances, the initial Interest Period and currency for each such Advance,
and in the case of a B/A Advance, the initial Contract Period for such B/A
Advance. Promptly following receipt of the Notice of Borrowing (and in any event
not later than 10:00 a.m. (Calgary local time) on the date of the proposed
Borrowing), the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender's Advance to be made as part of the
requested Borrowing. Each Lender shall, before 11:00 a.m. (Calgary local time)
on the date of such Borrowing, make available for the account of its Applicable
Lending Office to the Administrative Agent in care of its Payment Office, or at
such other location designated by notice from the Administrative Agent to the
Lenders pursuant to Section 9.02, in same day funds, such Lender's ratable
portion of such Borrowing. Immediately after the Administrative Agent's receipt
of such funds and upon fulfillment of the applicable conditions set forth in
Article 3, but no later than 12:00 noon (Calgary local time) on the same date
the Administrative Agent will make such funds available to the applicable
Borrower at the Payment Office of the Administrative Agent, or at any account of
the applicable Borrower maintained by the Administrative Agent (or any successor
Administrative Agent) designated by the applicable Borrower and agreed to by the
Administrative Agent (or such successor Administrative Agent), in same day
funds.
26
(b) If no election as to the Type or duration of Advance
is specified, then the requested Advance shall be a Prime Rate Advance (if
denominated in Cdn. Dollars) or a Base Rate Advance (if denominated in U.S.
Dollars). If no currency is specified, the Advance shall be denominated in Cdn.
Dollars.
(c) Each Notice of Borrowing shall be irrevocable and
binding on the applicable Borrower. In the case of any Borrowing which the
related Notice of Borrowing specified is to be comprised of Eurodollar Rate
Advances, if such Advances are not made as a result of any failure to fulfill on
or before the date specified for such Borrowing the applicable conditions set
forth in Article 3, the applicable Borrower shall indemnify each Lender against
any loss, cost or expense incurred by such Lender as a result of such failure,
including any loss, cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to fund the
Advance to be made by such Lender as part of such Borrowing.
(d) Unless the Administrative Agent shall have received
notice from a Lender prior to the date of any Borrowing that such Lender will
not make available to the Administrative Agent such Lender's ratable portion of
such Borrowing, the Administrative Agent may assume that such Lender has made
such portion available to the Administrative Agent on the date of such Borrowing
in accordance with subsections (a) and (c) of this Section 2.02 and the
Administrative Agent may, in reliance upon such assumption, make available to
the applicable Borrower on such date a corresponding amount. If and to the
extent such Lender shall not have so made such ratable portion available to the
Administrative Agent, such Lender and the applicable Borrower severally agree to
repay to the Administrative Agent forthwith on demand such corresponding amount
together with interest thereon, for each day from the date such amount is made
available to the applicable Borrower until the date such amount is repaid to the
Administrative Agent, at the Prime Rate for such day. If such Lender shall repay
to the Administrative Agent such corresponding amount, such amount so repaid
shall constitute such Lender's Advance to the applicable Borrower as part of
such Borrowing for purposes of this Agreement.
(e) The failure of any Lender to make the Advance to be
made by it as part of any Borrowing shall not relieve any other Lender of its
obligation, if any, hereunder to make its Advance on the date of such Borrowing,
but no Lender shall be responsible for the failure of any other Lender to make
the Advance to be made by such other Lender on the date of any Borrowing.
SECTION 2.03 FEES.
(a) FACILITY FEE. The Borrowers agree to pay to the
Administrative Agent for the account of each Lender a facility fee on the
average daily amount of such Lender's Commitment, whether or not used or deemed
used, from the Effective Date in the case of each Initial Lender and from the
effective date specified in the Assignment and Acceptance or Commitment Increase
Agreement pursuant to which it became a Lender in the case of each other Lender,
in each case until the Termination Date, payable quarterly in arrears on the
last day of each March, June, September and December during the term of such
Lender's Commitment and on the Termination Date, at a rate per annum equal to
the Facility Fee Percentage in effect from time to time.
27
(b) UTILIZATION FEE. Each Borrower agrees to pay to the
Administrative Agent for the account of each Lender (i) for any Utilization Fee
Period, if during such Utilization Fee Period the Average Aggregate Facility
Advances were greater than 25% and less than or equal to 50% of the Average
Aggregate Facility Commitments, a utilization fee of 0.125% per annum on the
average daily amount of such Lender's Advances to such Borrower during such
Utilization Fee Period; and (ii) for any Utilization Fee Period, if during such
Utilization Fee Period the Average Aggregate Facility Advances were greater than
50% of the Average Aggregate Facility Commitments, a utilization fee of 0.25%
per annum on the average daily amount of such Lender's Advances to such Borrower
during such Utilization Fee Period. If a utilization fee is owing in respect of
any Utilization Fee Period, such fee shall be payable on the last day of such
Utilization Fee Period.
(c) TERM ADVANCE PREMIUM FEE. Each Borrower agrees to pay
to the Administrative Agent for the account of each Lender a premium fee of
0.25% per annum on the average daily amount of the outstanding principal amount
of such Lender's Term Advances to such Borrower hereunder, payable quarterly in
arrears on the last day of each March, June, September and December and on the
date on which the last of such Lender's Term Advances shall be repaid.
(d) AGENCY FEE. Each Borrower agrees to pay to the
Administrative Agent, for its own account, such agency fees as may be separately
agreed to in writing by the Borrowers and the Administrative Agent, such fees to
be in the amounts and payable on the dates as may be so agreed to.
SECTION 2.04 REDUCTION OF THE COMMITMENTS. The Borrowers shall
have the right, upon at least three Business Days' written notice to the
Administrative Agent, to terminate in whole or reduce ratably in part the unused
portions of the Commitments of the Lenders (being the amount by which such
Commitments exceed the aggregate outstanding principal amount of all Advances),
provided that each partial reduction shall be in the aggregate amount of
Cdn.$10,000,000 or any whole multiple of Cdn.$1,000,000 in excess thereof.
SECTION 2.05 REPAYMENT OF ADVANCES.
(a) Each Borrower shall repay to each Lender on the Final
Maturity Date the aggregate principal amount of the Advances made to
it, together with accrued interest thereon, then owing to such Lender.
(b) Subject to Section 2.05(c), after the Revolving
Commitment Termination Date, the applicable Borrower shall repay the
principal amount of the Advances made to it in equal semi-annual
installments, each in an amount equal to two and one-half percent
(2.5%) of the aggregate outstanding principal amount of the Advances
made to it on the Revolving Commitment Termination Date. Such
installments shall be due and payable on each June 30 and December 31
of each year, the first such installment being due and payable on the
first December 31 occurring after the Revolving Commitment Termination
Date, with the final installment due and payable on the Final Maturity
Date in an amount equal to the aggregate unpaid principal amount of
such Advances made to it outstanding on the Final Maturity Date.
28
(c) Subject to Article 6, but notwithstanding any other
provision of this Agreement, neither Borrower shall be required to
repay more than 25% of the principal amount (as defined in the Income
Tax Act) of the Advances made to it prior to five years and one day
after the Revolving Commitment Termination Date, including, but not
limited to payments under Section 2.05(b) and Section 2.10(b).
(d) The Borrowers shall provide written notice to the
Administrative Agent substantially in the form of Exhibit C hereto of
any repayments pursuant to this Section 2.05 at least 2 Business Days
prior to such repayment.
SECTION 2.06 INTEREST ON ADVANCES.
(a) ORDINARY INTEREST. Each Borrower shall pay interest
on the unpaid principal amount of each Advance made to it and owing to each
Lender from the date of such Advance until such principal amount is due (whether
at stated maturity, by acceleration or otherwise), at the following rates:
(i) PRIME RATE ADVANCES. During such periods as such Advance
is a Prime Rate Advance, a rate per annum equal at all times to the
Prime Rate in effect from time to time plus, following the Revolving
Commitment Termination Date, as additional interest in lieu of the
facility fee, the Facility Fee Percentage in effect from time to time,
payable quarterly in arrears on the last day of each March, June,
September and December during such periods and on the date such Prime
Rate Advance shall be Continued or due (whether at stated maturity, by
acceleration or otherwise).
(ii) BASE RATE ADVANCES. During such periods as such Advance
is a Base Rate Advance, a rate per annum equal at all times to the Base
Rate in effect from time to time plus, following the Revolving
Commitment Termination Date, as additional interest in lieu of the
facility fee, the Facility Fee Percentage in effect from time to time,
payable quarterly in arrears on the last day of each March, June,
September and December during such periods and on the date such Base
Rate Advance shall be Continued or due (whether at stated maturity, by
acceleration or otherwise).
(iii) EURODOLLAR RATE ADVANCES. During such periods as such
Advance is (x) a Cdn. Dollar Eurodollar Rate Advance, a rate per annum
equal at all times during each Interest Period for such Advance to the
sum of the Cdn. Dollar Eurodollar Rate for such Interest Period plus
the Eurodollar Rate Margin in effect from time to time plus, following
the Revolving Commitment Termination Date, as additional interest in
lieu of the facility fee, the Facility Fee Percentage in effect from
time to time, payable on the last day of each such Interest Period and,
if any such Interest Period has a duration of more than three months,
on each day which occurs during such Interest Period every three months
from the first day of such Interest Period and, if such Advance is
Continued as a Prime Rate Advance on any date other than the last day
of any Interest Period for such Advance, on the date of such
Continuation or, if later, the Business Day on which the applicable
Borrower shall have received at least one Business Day's prior notice
from the Administrative Agent or the applicable Lender of the amount of
unpaid interest
29
accrued on such Advance to the date of such Continuation and (y) a U.S.
Dollar Eurodollar Rate Advance, a rate per annum equal at all times
during each Interest Period for such Advance to the sum of the U.S.
Dollar Eurodollar Rate for such Interest Period plus the Eurodollar
Rate Margin in effect from time to time plus, following the Revolving
Commitment Termination Date, as additional interest in lieu of the
facility fee, the Facility Fee Percentage in effect from time to time,
payable on the last day of each such Interest Period and, if any such
Interest Period has a duration of more than three months, on each day
which occurs during such Interest Period every three months from the
first day of such Interest Period and, if such Advance is Continued as
a Base Rate Advance on any date other than the last day of any Interest
Period for such Advance, on the date of such Continuation or, if later,
the Business Day on which the applicable Borrower shall have received
at least one Business Day's prior notice from the Administrative Agent
or the applicable Lender of the amount of unpaid interest accrued on
such Advance to the date of such Continuation.
(iv) B/A ADVANCES. Each Advance comprised of Bankers'
Acceptances shall be subject to an Acceptance Fee, payable by the
applicable Borrower on the date of acceptance of the relevant B/A and
computed as set forth in the definition of "Acceptance Fee" in Section
1.01 plus, following the Revolving Commitment Termination Date, as an
additional acceptance fee in lieu of the facility fee, the Facility Fee
Percentage in effect from time to time, payable quarterly in arrears on
the last day of each March, June, September and December during such
periods and on the date such B/A Advance shall be Continued or due
(whether at stated maturity, by acceleration or otherwise).
(v) ADDITIONAL INTEREST. In addition to amounts payable under
clause (i), (ii), (iii) or (iv) above and under Section 2.03(c) in
respect of any Advance following the Revolving Commitment Termination
Date, each Borrower shall pay to each Lender hereunder as additional
interest an amount in lieu of the utilization fee equal to 0.25% per
annum on the average daily amount of such Lender's Term Advances made
to it during any period (each such period, an "ADDITIONAL INTEREST
PERIOD") during the term of this Agreement commencing on the
Termination Date or on a subsequent January 1, April 1, July 1 or
October 1 and ending in each case on the earliest to occur of the next
succeeding March 31, June 30, September 30 or December 31 and the Final
Maturity Date (or, if any Term Advances made to such Borrower remain
outstanding after the Final Maturity Date, such later date on which all
such Advances are repaid in full). Additional interest owing in respect
of any Additional Interest Period shall be payable on the last day of
such Additional Interest Period; provided that additional interest
owing after the Final Maturity Date shall be payable on demand.
(b) DEFAULT INTEREST. Each Borrower shall pay interest on
the unpaid principal amount of each Advance made to it that is not paid when due
(whether at stated maturity, by acceleration or otherwise) from the date on
which such amount is due until such amount is paid in full, payable on demand,
at a rate per annum equal at all times (i) from such due date to the last day of
the then existing Interest Period therefor, in the case of each Eurodollar Rate
Advance, to 1% per annum above the interest rate per annum required to be paid
on such Advance immediately prior to the date on which such amount
30
became due and (ii) from and after the last day of the then existing Interest
Period therefor, in the case of each Eurodollar Rate Advance, and at all times
in the case of each Prime Rate Advance and each Base Rate Advance, to 1% per
annum above the Prime Rate or Base Rate, as applicable, in effect from time to
time, plus, in the case of a Term Advance, any additional interest payable
pursuant to Section 2.06(a)(iii).
(c) INTEREST ACT CANADA. For the purposes of the Interest
Act (Canada) and disclosure thereunder, whenever any interest or fee to be paid
hereunder or in connection herewith is to be calculated on the basis of any
period of time that is less than a calendar year, the yearly rate of interest to
which the rate used in such calculation is equivalent is the rate so used
multiplied by the actual number of days in the calendar year in which the same
is to be ascertained and divided by 360 or 365, as applicable. The rates of
interest under this Agreement are nominal rates, and not effective rates or
yields. The principle of deemed reinvestment of interest does not apply to any
interest calculation under this Agreement.
(d) NO CRIMINAL RATE. If any provision of this Agreement
would oblige a Borrower to make any payment of interest or other amount payable
to any Lender in an amount or calculated at a rate which would be prohibited by
law or would result in a receipt by that Lender of "interest" at a "criminal
rate" (as such terms are construed under the Criminal Code (Canada)), then,
notwithstanding such provision, such amount or rate shall be deemed to have been
adjusted with retroactive effect to the maximum amount or rate of interest, as
the case may be, as would not be so prohibited by law or so result in a receipt
by that Lender of "interest" at a "criminal rate", such adjustment to be
effected, to the extent necessary (but only to the extent necessary), as
follows:
(i) first, by reducing the amount or rate of interest or the
amount or rate of any Acceptance Fee required to be paid to the
affected Lender under Section 2.06(a)(iv); and
(ii) thereafter, by reducing any fees, commissions, premiums
and other amounts required to be paid to the affected Lender which
would constitute interest for purposes of Section 347 of the Criminal
Code (Canada).
SECTION 2.07 [INTENTIONALLY OMITTED]
SECTION 2.08 RATE DETERMINATION.
(a) All interest hereunder shall be payable for the
actual number of days elapsed (including the first day but excluding the last
day). Any Advance that is repaid on the same day on which it is made shall bear
interest for one day unless such repayment and notice thereof are received by
12:00 noon, Toronto, Ontario time, on such day. The applicable Prime Rate, Base
Rate or Discount Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.
(b) Each Schedule II/III Reference Bank agrees to furnish
to the Administrative Agent timely information for the purpose of determining
each Discount Rate. If any one or more of the Schedule II/III Reference Banks
shall not furnish such timely information to the Administrative Agent for the
purpose of determining such
31
Discount Rate, the Administrative Agent shall determine such Discount Rate on
the basis of timely information furnished by the remaining Schedule II/III
Reference Banks.
(c) The Administrative Agent shall give prompt notice to
the Borrowers and the Lenders of the applicable interest rate determined by the
Administrative Agent for purposes of Section 2.06(a)(i), (ii) or (iii) and the
applicable Discount Rate, if any, furnished by each Schedule II/III Reference
Bank for the purpose of determining the applicable Discount Rate under Section
2.11(f).
(d) If, with respect to any Eurodollar Rate Advances, the
Majority Lenders determine and give notice to the Administrative Agent that as a
result of conditions in or generally affecting the relevant market, the rates of
interest determined on the basis of the Eurodollar Rate for any Interest Period
for such Advances will not adequately reflect the cost to such Majority Lenders
of making, funding or maintaining their respective Eurodollar Rate Advances for
such Interest Period, the Administrative Agent shall forthwith so notify the
Borrowers and the Lenders, whereupon:
(i) (x) to the extent such Advances are Cdn. Dollar Eurodollar
Rate Advances, each such Eurodollar Rate Advance will automatically, on
the last day of the then existing Interest Period therefor, Continue as
a Prime Rate Advance and (y) to the extent such Advances are U.S.
Dollar Eurodollar Rate Advances, each such Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period
therefor, Continue as a Base Rate Advance, and
(ii) the obligation of the Lenders to make, or to Continue
Advances as, Cdn. Dollar Eurodollar Rate Advances or U.S. Dollar
Eurodollar Rate Advances, as the case may be, shall be suspended until
the Administrative Agent shall notify the Borrowers and the Lenders
that the circumstances causing such suspension no longer exist.
(e) If a Borrower shall fail to select the duration of
any Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of "INTEREST PERIOD" in Section 1.01, the
Administrative Agent will forthwith so notify such Borrower and the Lenders and
(i) to the extent such Advances are Cdn. Dollar Eurodollar Rate Advances, such
Advances will automatically, on the last day of the then existing Interest
Period therefor, Continue as Cdn. Dollar Eurodollar Rate Advances with an
Interest Period of one month and (ii) to the extent such Advances are U.S.
Dollar Eurodollar Rate Advances, such Advances will automatically, on the last
day of the then existing Interest Period therefor, Continue as U.S. Dollar
Eurodollar Rate Advances with an Interest Period of one month. If a Borrower
shall fail to select the duration of any Contract Period for any B/A Advances in
accordance with the provisions contained in the definition of "CONTRACT PERIOD"
in Section 1.01, the Administrative Agent will forthwith so notify such Borrower
and the Lenders and such B/A Advances will be automatically Continued as B/A
Advances with a Contract Period of one month.
(f) On the date on which the aggregate unpaid principal
amount of Advances comprising any Borrowing shall be reduced, by payment or
prepayment or otherwise, to less than Cdn.$5,000,000, such Advances shall, (i)
if they are (x) Cdn. Dollar Eurodollar Rate Advances, automatically Continue as
Prime Rate Advances and (y) U.S. Dollar Eurodollar Rate Advances, automatically
Continue as Base Rate
32
Advances, and on and after such date the right of the applicable Borrower to
Continue such Advances as Eurodollar Rate Advances shall terminate; provided,
however, that if and so long as each such Advance shall be, or be elected to be
Continued as, Cdn. Dollar Eurodollar Rate Advances or U.S. Dollar Eurodollar
Rate Advances, as applicable, having the same Interest Period as Eurodollar Rate
Advances of the same Type comprising another Borrowing or other Borrowings, and
the aggregate unpaid principal amount of all such Eurodollar Rate Advances of
the same Type shall, or upon such Continuation will, equal or exceed, with
respect to Cdn. Dollar Eurodollar Rate Advances, Cdn. $10,000,000 or, with
respect to U.S. Dollar Eurodollar Rate Advances, U.S.$10,000,000, the applicable
Borrower shall have the right to Continue all such Advances as Eurodollar Rate
Advances of the same Type having such Interest Period, and (ii) if they are B/A
Advances, automatically Continue as Prime Rate Advances, and on and after such
date the right of the applicable Borrower to Continue such Advances as B/A
Advances shall terminate; provided, however, that if and so long as each such
Advance shall be, or be elected to be Continued as, B/A Advances having the same
Contract Period as B/A Advances comprising another Borrowing or other
Borrowings, and the aggregate unpaid principal amount of all such B/A Advances
shall, or upon Continuation will, equal or exceed Cdn.$10,000,000, the
applicable Borrower shall have the right to Continue all such B/A Advances as
B/A Advances having such Contract Period.
SECTION 2.09 VOLUNTARY CONTINUATION OF ADVANCES. Each Borrower
may on any Business Day, upon notice given to the Administrative Agent, not
later than the time specified in Section 2.02 for the making of an Advance of
the same Type as that of the existing Advances being Continued if such Advance
were being made on the date of the proposed Continuation, and subject to the
provisions of Section 2.08, 2.12 and 2.14, Continue all Advances to such
Borrower of one Type comprising the same Borrowing as Advances of another Type
in the same currency; provided, however, that any Continuation of any Eurodollar
Rate Advances as Prime Rate Advances or Base Rate Advances, as the case may be,
made on any day other than the last day of an Interest Period for such
Eurodollar Rate Advances shall be subject to the provisions of Section 9.04(b),
and any Continuation of any B/A Advances as Prime Rate Advances made on any day
other than the last day of the Contract Period for such B/A Advance shall be
subject to the provisions of Section 2.11. Each such notice of a Continuation (a
"NOTICE OF CONTINUATION") shall, within the restrictions specified above,
specify in substantially the form attached hereto as Exhibit B (i) the date of
such Continuation, (ii) the Advances to be Continued, (iii) if such Continuation
is as Eurodollar Rate Advances, the Type of Eurodollar Rate Advance and the
duration of the Interest Period for each such Eurodollar Rate Advance, and (iv)
if such Continuation is as B/A Advances, the duration of the Contract Period for
each such B/A Advance.
SECTION 2.10 PREPAYMENTS.
(a) The applicable Borrower may prepay the Revolving
Advances or the Term Advances made to it, provided however that a Borrower may
not prepay any Bankers' Acceptances or B/A Loans; provided, however, that a
Borrower may defease any B/A or B/A Loan by depositing with the Administrative
Agent an amount that, together with interest accruing thereon to the end of the
Contract Period or Interest Period (as applicable) therefor, is sufficient to
pay such maturing Bankers' Acceptances or B/A Loans when due. A Borrower may,
upon (i) in the case of Eurodollar Rate Advances, at
33
least three Business Days notice or (ii) in the case of Prime Rate Advances or
Base Rate Advances, telephonic notice not later than 8:00 a.m. (Calgary local
time) on the date of prepayment followed as promptly as practicable by written
notice, to the Administrative Agent which specifies the proposed date and
aggregate principal amount of the prepayment and the Type of Advances to be
prepaid, and if such notice is given such Borrower shall, prepay the outstanding
principal amounts of the Advances comprising the same Borrowing in whole or
ratably in part, together with accrued interest to the date of such prepayment
on the amount prepaid; provided, however, that (x) each partial prepayment shall
be in an aggregate principal amount not less than Cdn.$5,000,000 or an integral
multiple of Cdn.$1,000,000 in excess thereof in the case of Prime Rate Advances
and Cdn. Dollar Eurodollar Rate Advances, and U.S.$5,000,000 or an integral
multiple of U.S.$1,000,000 in excess thereof in the case of Base Rate Advances
and U.S. Dollar Eurodollar Rate Advances, and (y) in the event of any such
prepayment of Eurodollar Rate Advances on any day other than the last day of an
Interest Period for such Eurodollar Rate Advances, the applicable Borrower shall
be obligated to reimburse the Lenders in respect thereof pursuant to, and to the
extent required by, Section 9.04(b); provided, further, however, that such
Borrower will use its best efforts to give notice to the Administrative Agent of
the proposed prepayment of Base Rate Advances on the Business Day prior to the
date of such proposed prepayment.
(b) If on any date, after giving effect to all Advances
and all repayments and prepayments to occur on such date, and based on the
Exchange Rate then in effect, the Administrative Agent determines that the
aggregate Cdn. Dollar Equivalent of the outstanding Advances hereunder shall
have exceeded for more than three consecutive Business Days an amount equal to
105% of the total Commitments of the Lenders under the Agreement, the
Administrative Agent shall notify each Borrower of such occurrence and the
Borrowers shall on the next succeeding Business Day prepay Advances in an
aggregate amount sufficient to eliminate such excess.
SECTION 2.11 BANKERS' ACCEPTANCES.
(a) Subject to the terms and conditions of this
Agreement, each Borrower may request a Borrowing by presenting drafts for
acceptance and, if applicable, purchase, as B/As by the Lenders.
(b) No Contract Period with respect to a B/A to be
accepted and, if applicable, purchased, as a Revolving Advance shall extend
beyond the Revolving Commitment Termination Date and no Contract Period with
respect to a B/A to be accepted and, if applicable, purchased, as a Term Advance
shall extend beyond the Final Maturity Date.
(c) To facilitate availment of B/A Advances, each
Borrower hereby appoints each Lender as its attorney to sign and endorse on its
behalf (in accordance with a Notice of Borrowing or Notice of Continuation
relating to a B/A Advance), in handwriting or by facsimile or mechanical
signature as and when deemed necessary by such Lender, blank forms of B/As in
the form requested by such Lender. In this respect, it is each Lender's
responsibility to maintain an adequate supply of blank forms of B/As for
acceptance under this Agreement. Each Borrower recognizes and agrees that all
B/As signed and/or endorsed by a Lender on behalf of such Borrower shall bind
such Borrower as fully and effectually as if signed in the handwriting of and
duly issued by the proper
34
signing officers of such Borrower. Each Lender is hereby authorized (in
accordance with a Notice of Borrowing or Notice of Continuation relating to a
B/A Advance) to issue such B/As endorsed in blank in such face amounts as may be
determined by such Lender; provided that the aggregate amount thereof is equal
to the aggregate amount of B/As required to be accepted and purchased by such
Lender. No Lender shall be liable for any damage, loss or other claim arising by
reason of any loss or improper use of any such instrument except the gross
negligence or wilful misconduct of the Lender or its officers, employees, agents
or representatives. Each Lender shall maintain a record with respect to B/As (i)
received by it in blank hereunder, (ii) voided by it for any reason, (iii)
accepted and purchased by it hereunder, and (iv) canceled at their respective
maturities. On request by or on behalf of either Borrower, a Lender shall cancel
all forms of B/As which have been pre-signed or pre-endorsed on behalf of such
Borrower and that are held by such Lender and are not required to be issued in
accordance with such Borrower's irrevocable notice. Alternatively, each Borrower
agrees that, at the request of the Administrative Agent, such Borrower shall
deliver to the Administrative Agent a "depository note" which complies with the
requirements of the Depository Bills and Notes Act (Canada), and consents to the
deposit of any such depository note in the book-based debt clearance system
maintained by the Canadian Depository for Securities.
(d) Drafts of a Borrower to be accepted as B/As hereunder
shall be signed as set forth in this Section 2.11. Notwithstanding that any
Person whose signature appears on any B/A may no longer be an authorized
signatory for any Lender or a Borrower at the date of issuance of a B/A, such
signature shall nevertheless be valid and sufficient for all purposes as if such
authority had remained in force at the time of such issuance and any such B/A so
signed shall be binding on the applicable Borrower.
(e) Promptly following the receipt of a Notice of
Borrowing or Notice of Continuation specifying a Borrowing or Continuation of a
Borrowing by way of B/As, the Administrative Agent shall so advise the Lenders
and shall advise each Lender of the aggregate face amount of the B/As to be
accepted by it and the applicable Contract Period (which shall be identical for
all Lenders). In the case of Advances comprised of B/A Advances, the aggregate
face amount of the B/As to be accepted by a Lender shall be in a minimum
aggregate amount of Cdn.$100,000 and shall be a whole multiple of Cdn.$100,000,
and such face amount shall be in the Lenders' pro rata portions of such
Borrowing, provided that the Administrative Agent may in its sole discretion
increase or reduce any Lender's portion of such B/A Advance to the nearest
Cdn.$100,000 without reducing the overall Commitments.
(f) Each Borrower may specify in a Notice of Borrowing or
Notice of Continuation that it desires that any B/As requested by such Notice of
Borrowing or Notice of Continuation be purchased by the Lenders, in which case
the Lenders shall, upon acceptance of a B/A by a Lender, purchase, or arrange
for the purchase of, each B/A from such Borrower at the Discount Rate for such
Lender applicable to such B/A accepted by it and provide to the Administrative
Agent the Discount Proceeds for the account of such Borrower. The Acceptance Fee
payable by each Borrower to a Lender under Section 2.06(iv) in respect of each
B/A accepted by such Lender shall be set off against the Discount Proceeds
payable by such Lender under this Section 2.11.
(g) Where a Borrower so specifies in its Notice of
Borrowing or Notice of Continuation, it shall make its own arrangements for the
marketing of B/As, in which
35
case, by subsequent notice to the Administrative Agent, it shall provide the
Administrative Agent, who shall in turn notify each Lender, with information as
to the discount proceeds payable by the purchasers of the B/As and the party to
whom delivery of the B/As by each Lender is to be made against delivery to each
Lender of the applicable discount proceeds, but if it does not do so, such
Borrower shall initiate a telephone call to the Administrative Agent by 9:00
a.m. (Calgary local time) on the date of advance, and provide such information
to the Administrative Agent. Any such telephonic advice shall be confirmed by a
written notice by the applicable Borrower to the Administrative Agent prior to
2:00 p.m. (Calgary local time) on the same day.
(h) Each Lender may at any time and from time to time
hold, sell, rediscount or otherwise dispose of any or all B/As accepted and
purchased by it.
(i) If a Lender is not a bank listed on Schedule I, II or
III of the Bank Act (Canada) or if a Lender notifies the Administrative Agent in
writing that it is otherwise unable to accept bankers' acceptances, such Lender
shall give notice to such effect to the Administrative Agent prior to 10:00
a.m., (Calgary local time), on the date of the requested credit extension (which
notice may, if so stated therein, remain in effect with respect to subsequent
requests for extension of credit by way of Bankers' Acceptance until revoked by
notice to the Administrative Agent) and shall make available to the
Administrative Agent, in accordance with Section 2.01 hereof prior to 11:00 a.m.
(Calgary local time), on the date of such requested credit extension, a Canadian
Dollar Eurodollar Rate Advance (a "BA LOAN") in the principal amount equal to
such Lender's Commitment Percentage of the total amount of credit requested to
be extended by way of Bankers' Acceptances. Such BA Loan shall have an Interest
Period equal to the Contract Period of the Bankers' Acceptances for which it is
a substitute and shall bear interest throughout the Interest Period applicable
to such BA Loan at a rate per annum equal to the Canadian Dollar Eurodollar Rate
plus the Eurodollar Rate Margin. Subject to repayment requirements, on the last
day of the relevant Interest Period for such B/A Loan, the applicable Borrower
shall be entitled to Continue each such B/A Loan as another Type of Advance, or
to roll over each such B/A Loan into another B/A Loan, all in accordance with
the applicable provisions of this Agreement.
(j) With respect to each B/A Advance, at or before 9:00
a.m. (Calgary local time) two Business Days before the last day of the Contract
Period of such B/As, the applicable Borrower shall notify the Administrative
Agent by irrevocable telephone notice, followed by a notice of rollover in
substantially the form set forth in Exhibit B hereto on the same day, if such
Borrower intends to issue B/As on such last day of the Contract Period to
provide for the payment of such maturing B/As. If the applicable Borrower fails
to notify the Administrative Agent of its intention to issue B/As on such last
day of the Contract Period, such Borrower shall provide payment to the
Administrative Agent on behalf of the Lenders of an amount equal to the
aggregate face amount of such B/As on the last day of the Contract Period of
such B/As. If the applicable Borrower fails to make such payment, such maturing
B/As shall be deemed to have been Continued on the last day of such Contract
Period as a Prime Rate Advance in an amount equal to the face amount of such
B/As.
(k) Each Borrower waives presentment for payment and any
other defense to payment of any amounts due to a Lender in respect of a B/A
accepted and purchased by it pursuant to this Agreement which might exist solely
by reason of such
36
B/A being held, at the maturity thereof, by such Lender in its own right, and
each Borrower agrees not to claim any days of grace if such Lender, as holder,
sues such Borrower on the B/A for payment of the amount payable by the
applicable Borrower thereunder. On the last day of the Contract Period of a B/A,
or such earlier date as may be required or permitted pursuant to the provisions
of this Agreement, the applicable Borrower shall pay the Lender that has
accepted and purchased such B/A the full face amount of such B/A and, after such
payment, the applicable Borrower shall have no further liability in respect of
such B/A and such Lender shall be entitled to all benefits of, and be
responsible for all payments due to third parties under, such B/A.
(l) Except as required by any Lender upon the occurrence
of an Event of Default, no B/A Advance may be repaid by a Borrower prior to the
expiry date of the Contract Period applicable to such B/A Advance.
SECTION 2.12 INCREASED COSTS.
(a) If, due to either (i) the introduction after the
Effective Date of, or any change after the Effective Date (including any change
by way of imposition or increase of reserve requirements or assessments) in or
in the interpretation of, any law or regulation or (ii) the compliance with any
guideline or request issued or made after the Effective Date from or by any
governmental authority (whether or not having the force of law), (the occurrence
of any of the foregoing events being herein referred to as a "change in law") in
each case above other than with respect to matters covered by Section 2.13 or
2.16, there shall be any increase in the cost to any Lender of agreeing to make,
fund or maintain, or of making, funding or maintaining Eurodollar Rate Advances
funded in the interbank Eurodollar market, then the applicable Borrower shall
from time to time, upon demand by such Lender (with a copy of such demand to the
Administrative Agent), pay to the Administrative Agent for the account of such
Lender additional amounts sufficient to reimburse such Lender for all such
increased costs (except those incurred more than 60 days prior to the date of
such demand; for the purposes hereof any cost or expense allocable to a period
prior to the publication or effective date of such an introduction, change,
guideline or request shall be deemed to be incurred on the later of such
publication or effective date). Each Lender agrees to use its best reasonable
efforts promptly to notify the Borrowers of any event referred to in clause (i)
or (ii) above, provided that the failure to give such notice shall not affect
the rights of any Lender under this Section 2.12(a) (except as otherwise
expressly provided above in this Section 2.12(a)). A certificate as to the
amount of such increased cost, submitted to the Borrowers and the Administrative
Agent by such Lender, shall be conclusive and binding for all purposes, absent
manifest error. After one or more Lenders have notified the Borrowers of any
increased costs pursuant to this Section 2.12, the Borrowers may specify by
notice to the Administrative Agent and the affected Lenders that, after the date
of such notice whenever the election of a Eurodollar Rate Advance by a Borrower
for an Interest Period or portion thereof would give rise to such increased
costs, such election shall not apply to the Advances of such Lender or Lenders
during such Interest Period or portion thereof, and such Advances shall during
such Interest Period or portion thereof be (x) Prime Rate Advances in lieu of
Cdn. Dollar Eurodollar Rate Advances and (y) Base Rate Advances in lieu of U.S.
Dollar Eurodollar Rate Advances. Each Lender agrees to use its best reasonable
efforts (including a reasonable effort to change its Applicable Lending Office
or to transfer its affected Advances to an Affiliate of such Lender) to avoid,
or minimize the amount of, any demand for payment from the Borrowers under
37
this Section 2.12, provided that such avoidance would not, in the reasonable
judgment of such Lender, be otherwise disadvantageous to such Lender.
(b) In the event that any Lender shall have determined
(which determination shall be reasonably exercised and shall, absent manifest
error, be final, conclusive and binding upon all parties) at any time that the
making of or continuance of any Advance denominated in a currency other than
Cdn. Dollars has become unlawful as a result of compliance by such Lender in
good faith with any applicable law, or by any applicable guideline or order
(whether or not having the force of law), or impossible as a result of the
market unavailability of such currency, then, in any such event, such Lender
shall give prompt notice (by telephone and confirmed in writing) to the
Borrowers and the Administrative Agent of such determination (which notice the
Administrative Agent shall promptly transmit to the other Lenders). Upon the
giving of the notice to the Borrowers and the Administrative Agent, each
Borrower's right to request (by Continuation or otherwise), and such Lender's
obligation to make, Advances denominated in a currency other than Cdn. Dollars
shall be immediately suspended, and thereafter, any requested Borrowings of
Advances denominated in a currency other than Cdn. Dollars shall, as to such
Lender only, be deemed to be a request for a Prime Rate Advance, and if the
affected Advance or Advances are still outstanding, the applicable Borrower
shall immediately, or if permitted by applicable law, no later than the latest
date permitted thereby, upon at least one Business Days' prior written notice to
the Administrative Agent and the affected Lender, Continue each such Advance
denominated in a currency other than Cdn. Dollars as a Prime Rate Advance,
provided that if more than one Lender is affected at any time, then all affected
Lenders must be treated the same pursuant to this Section 2.12(b).
38
SECTION 2.13 INCREASED CAPITAL. If either (i) the introduction
of, or any change in or in the interpretation of, any law or regulation or (ii)
compliance by any Lender with any guideline or request from any central bank or
other governmental authority (whether or not having the force of law) affects or
would affect the amount of capital required or expected to be maintained by such
Lender or any corporation controlling such Lender (including any determination
after the Effective Date by any such central bank, governmental authority or
comparable agency that, for purposes of capital adequacy requirements, the
Commitments hereunder do not constitute commitments with an original maturity of
one year or less) and such Lender determines that the amount of such capital is
increased by or based upon the existence of such Lender's commitment to lend
hereunder and other commitments of this type, then, within ten days after
demand, and delivery to the Borrowers of the certificate referred to in the last
sentence of this Section 2.13 by such Lender (with a copy of such demand to the
Administrative Agent), the applicable Borrower shall pay to the Administrative
Agent for the account of such Lender, from time to time as specified by such
Lender, additional amounts sufficient to compensate such Lender or such
corporation in the light of such circumstances, to the extent that such Lender
reasonably determines such increase in capital to be allocable to the existence
of such Lender's commitment to lend hereunder (except any such increase in
capital incurred more than, or compensation attributable to the period before,
90 days prior to the date of such demand; for the purposes hereof any increase
in capital allocable to, or compensation attributable to, a period prior to the
publication or effective date of such an introduction, change, guideline or
request shall be deemed to be incurred on the later of such publication or
effective date). Each Lender agrees to use its best reasonable efforts promptly
to notify the Borrowers of any event referred to in clause (i) or (ii) above,
provided that the failure to give such notice shall not affect the rights of any
Lender under this Section 2.13 (except as otherwise expressly provided above in
this Section 2.13). A certificate in reasonable detail as to the basis for, and
the amount of, such compensation submitted to the Borrowers and the
Administrative Agent by such Lender shall, in the absence of manifest error, be
conclusive and binding for all purposes.
39
SECTION 2.14 ILLEGALITY. Notwithstanding any other provision
of this Agreement, if the introduction of or any change in or in the
interpretation of any law or regulation shall make it unlawful, or any central
bank or other governmental authority shall assert that it is unlawful, for any
Lender or its Applicable Lending Office to perform its obligations hereunder to
make Eurodollar Rate Advances of a particular Type or to continue to fund or
maintain such Advances hereunder, such Lender may, by notice to the Borrowers
and the Administrative Agent, suspend the right of the Borrowers to elect
Eurodollar Rate Advances of such Type from such Lender and, if necessary in the
reasonable opinion of such Lender to comply with such law or regulation,
Continue all such Eurodollar Rate Advances of such Lender as Prime Rate Advances
or Base Rate Advances, as applicable, at the latest time permitted by the
applicable law or regulation, and such suspension and, if applicable, such
Continuation shall continue until such Lender notifies the Borrowers and the
Administrative Agent that the circumstances making it unlawful for such Lender
to perform such obligations no longer exist (which such Lender shall promptly do
when such circumstances no longer exist). So long as the obligation of any
Lender to make Eurodollar Rate Advances of such Type has been suspended under
this Section 2.14, all Notices of Borrowing specifying Advances of such Type
shall be deemed, as to such Lender, to be requests for Prime Rate Advances or
Base Rate Advances, as applicable. Each Lender agrees to use its best reasonable
efforts (including a reasonable effort to change its Applicable Lending Office
or to transfer its affected Advances to an Affiliate) to avoid any such
illegality, provided that such avoidance would not, in the reasonable judgment
of such Lender, be otherwise disadvantageous to such Lender.
SECTION 2.15 PAYMENTS AND COMPUTATIONS.
(a) Each Borrower shall make each payment hereunder
(including under Section 2.03, 2.05, or 2.06) and under the Notes, whether the
amount so paid is owing to any or all of the Lenders or to the Administrative
Agent, not later than 2:00 p.m. (Calgary local time) without set-off,
counterclaim, or any other deduction whatsoever, on the day when due in (i) Cdn.
Dollars, in the case of all fees required to be paid under Section 2.03, and all
amounts payable (whether principal or interest) in respect of Prime Rate
Advances and Cdn. Dollar Eurodollar Rate Advances and all amounts payable
(including the Acceptance Fee) in respect of B/A Advances, and (ii) in U.S.
Dollars, in the case of amounts payable (whether principal or interest) in
respect of Base Rate Advances and U.S. Dollar Eurodollar Rate Advances, to the
Administrative Agent in care of its Payment Office, or at such other location
designated by notice to the Borrowers from the Administrative Agent and agreed
to by the Borrowers, in same day funds. Each such payment made by a Borrower for
the account of any Lender hereunder, when so made to the Administrative Agent,
shall be deemed duly made for all purposes of this Agreement and the Notes,
except that if at any time any such payment is rescinded or must otherwise be
returned by the Administrative Agent or any Lender upon the bankruptcy,
insolvency or reorganization of such Borrower or otherwise, such payment shall
be deemed not to have been so made. The Administrative Agent will promptly
thereafter cause to be distributed like funds relating to the payment of
principal or interest or fees ratably (other than amounts payable pursuant to
Section 2.12, 2.13, 2.14, 2.16, 9.04(b) or 9.04(c)) to the Lenders for the
account of their respective Applicable Lending Offices, and like funds relating
to the payment of any other amount payable to any Lender to such Lender for the
account of its Applicable Lending Office, in each case to
40
be applied in accordance with the terms of this Agreement. Upon its acceptance
of an Assignment and Acceptance and recording of the information contained
therein in the Register pursuant to Section 9.07(d), from and after the
effective date specified in such Assignment and Acceptance, the Administrative
Agent shall make all payments hereunder and under the Notes in respect of the
interest assigned thereby to the Lender assignee thereunder, and the parties to
such Assignment and Acceptance shall make all appropriate adjustments in such
payments for periods prior to such effective date directly between themselves.
(b) All computations of interest based on the Prime Rate
and under clause (i) of the definition of "Base Rate" and all computations of
Acceptance Fees (in the case of Bankers' Acceptances) and facility fees and
utilization fees (or amounts in lieu thereof) shall be made by the
Administrative Agent on the basis of a year of 365 or 366 days, as the case may
be, and all computations of interest based on the Eurodollar Rate or the
Effective Federal Funds Rate shall be made by the Administrative Agent, on the
basis of a year of 360 days, in each case for the actual number of days
(including the first day but excluding the last day) occurring in the period for
which such interest or fees are payable. Each determination by the
Administrative Agent (or, in the case of Section 2.12, 2.13, 2.14, 2.16, 9.04(b)
or 9.04(c), by each Lender with respect to its own Advances) of an interest rate
or an increased cost, loss or expense or increased capital or of illegality or
taxes hereunder shall be conclusive and binding for all purposes if made
reasonably and in good faith.
(c) Whenever any payment hereunder or under the Notes
shall be stated to be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of payment of interest or facility
fees, as the case may be; provided, however, that except with respect to the
Final Maturity Date, if such extension would cause payment of interest on or
principal of Eurodollar Rate Advances to be made in the next following calendar
month, such payment shall be made on the next preceding Business Day.
(d) Unless the Administrative Agent shall have received
notice from a Borrower prior to the date on which any payment is due to the
Lenders hereunder that such Borrower will not make such payment in full, the
Administrative Agent may assume that such Borrower has made such payment in full
to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each Lender on such
due date an amount equal to the amount then due such Lender. If and to the
extent such Borrower shall not have so made such payment in full to the
Administrative Agent, each Lender shall repay to the Administrative Agent
forthwith on demand such amount distributed to such Lender together with
interest thereon, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the Administrative
Agent, at a rate equal to the Prime Rate for such day.
SECTION 2.16 TAXES.
(a) Any and all payments by each Borrower or the Parent
hereunder or under the Notes shall be made in accordance with Section 2.15, free
and clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions,
41
charges or withholdings, and all liabilities with respect thereto, imposed or
levied by or on behalf of the Government of Canada or of any province or
territory thereof or by any authority or agency therein or thereof having power
to tax (hereinafter "CANADIAN TAXES"), unless either Borrower is required to
withhold or deduct Canadian Taxes by law or by the interpretation or
administration thereof. If either Borrower is so required to withhold or deduct
any amount for or on account of Canadian Taxes from any payment made under or
with respect to this Agreement or the Notes, such Borrower will pay to each
Indemnified Party as additional interest such additional amounts as may be
necessary so that the net amount received by each Indemnified Party after such
withholding or deduction (and after deducting any Canadian Taxes on such
additional amounts) will not be less than the amount the Indemnified Party would
have received if such Canadian Taxes had not been withheld or deducted. No
additional amounts will be payable with respect to a payment made to an
Indemnified Party under this Section 2.16(a) where such Indemnified Party (i) is
subject to Canadian Taxes by reason of the Indemnified Party being a resident,
domicile or national of, or engaging in business or maintaining a permanent
establishment or other physical presence in or otherwise having some connection
with Canada or any province or territory thereof otherwise than by the mere
making or holding of the Notes or by the receipt of payments thereunder, or (ii)
is subject to Canadian Taxes by reason of its failure to comply with Section
2.16(g), provided, that should an Indemnified Party become subject to Canadian
Taxes because of its failure to deliver a form required hereunder, the
applicable Borrower or the Parent shall take such administrative steps as such
Indemnified Party shall reasonably request to assist such Indemnified Party to
recover such Canadian Taxes, and provided further, that each Indemnified Party,
with respect to itself, agrees to indemnify and hold harmless the Borrowers and
the Parent from any Canadian Taxes, penalties, interest and other expenses,
costs and losses incurred or payable by either Borrower or the Parent as a
result of the failure of the Borrowers or the Parent to comply with its
obligations under this Section 2.16(a) in reliance on any form or certificate
provided to it by such Indemnified Party pursuant to this Section 2.16. Each
Borrower will also make such withholdings or deductions and remit the full
amount deducted or withheld to the relevant authority in accordance with
applicable law.
(b) Any and all payments by the Parent (or by either
Borrower to the extent either Borrower causes a payment to be made from any
jurisdiction other than Canada) hereunder or under the Notes shall be made in
accordance with Section 2.15, free and clear of and without deduction for any
and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto imposed or levied by or
on behalf of any jurisdiction outside Canada, excluding in the case of each
Indemnified Party all taxes, levies, imposts, deductions, charges, or
withholdings, and all liabilities with respect thereto, imposed on or determined
by reference to its income or profits, and all franchise taxes and all other
taxes, levies, imposts, deductions, charges or withholdings in effect at the
time that such Indemnified Party executed this Agreement or otherwise became an
"Indemnified Party" hereunder, and liabilities with respect thereto, imposed on
it by reason of the jurisdiction in which such Indemnified Party is organized,
domiciled, resident or doing business, or any political subdivision thereof, or
by reason of the jurisdiction of its Applicable Lending Office or any other
office from which it makes or maintains any extension of credit hereunder or any
political subdivision thereof (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities in respect of payments under
42
this Agreement or under the Notes being herein referred to as "NON-CANADIAN
TAXES" and, together with Canadian Taxes, "TAXES"). If the Parent (or either
Borrower, as applicable) shall be required by law to deduct any Non-Canadian
Taxes from or in respect of any sum payable by it hereunder or under any Note to
any Indemnified Party, (i) the sum payable by it shall be increased as may be
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 2.16) such Indemnified
Party receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Parent (in the case of payments by it) (or
applicable Borrower (in the case of payments by it) or the Administrative Agent,
as applicable) shall make such deductions at the applicable statutory rate and
(iii) the Parent (in the case of payments by it) (or the applicable Borrower (in
the case of payments by it) or the Administrative Agent, as applicable) shall
pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable law, provided that the Parent shall not
be required to pay any additional amount (and shall be relieved of any liability
with respect thereto) pursuant to this subsection (b) (or pursuant to Section
2.16(e), except to the extent Section 2.16(e) relates to Other Taxes) to any
Indemnified Party that has failed to submit any form or certificate that it was
required to file or provide pursuant to Section 2.16(f) and is entitled to file
or give, as applicable, under applicable law, provided, further, that should an
Indemnified Party become subject to Non-Canadian Taxes because of its failure to
deliver a form required hereunder, the Parent shall take such administrative
steps as such Indemnified Party shall reasonably request to assist such
Indemnified Party to recover such Non-Canadian Taxes, and provided further, that
each Indemnified Party, with respect to itself, agrees to indemnify and hold
harmless the Parent from any taxes, penalties, interest and other expenses,
costs and losses incurred or payable by the Parent as a result of the failure of
the Parent to comply with its obligations under clauses (ii) or (iii) above in
reliance on any form or certificate provided to it by such Indemnified Party
pursuant to this Section 2.16.
(c) If any Indemnified Party receives a net credit or
refund in respect of Taxes or amounts paid pursuant to this Section 2.16 by
either Borrower or the Parent, it shall promptly notify such Borrower or the
Parent of such net credit or refund and shall promptly pay such net credit or
refund to the applicable Borrower or the Parent, provided that the applicable
Borrower or the Parent, as applicable, agree to return such net credit or refund
if the Indemnified Party to which such net credit or refund is applicable is
required to repay it.
(d) In addition, the Parent and the applicable Borrower
agree to pay any present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies which arise from any payment
made hereunder or under the Notes or from the execution, delivery or
registration of, or otherwise with respect to, this Agreement or the Notes
(hereinafter referred to as "OTHER TAXES").
(e) The applicable Borrower or the Parent will indemnify
each Indemnified Party for the full amount of Taxes or Other Taxes (including
any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under
this Section 2.16 but excluding Canadian Taxes to the extent that such
Indemnified Party is described in either Section 2.16(a)(i) or (ii) hereof) paid
by such Indemnified Party and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto except as a result of the
gross negligence (which shall in any event include the failure of
43
such Indemnified Party to provide any form or certificate that it was required
to provide either to the Borrowers pursuant to subsection (g) below or to the
Parent pursuant to either subsection (f) or (g) below) or willful misconduct of
such Indemnified Party, whether or not such Taxes or Other Taxes were correctly
or legally asserted. This indemnification shall be made within 30 days from the
date such Indemnified Party makes written demand therefor.
(f) On or prior to the date on which each Indemnified
Party that is not a United States person (as such term is defined in Section
7701(a)(30) of the Internal Revenue Code) executes this Agreement or otherwise
becomes an "Indemnified Party" hereunder, such Indemnified Party shall provide
the Parent and the Administrative Agent with U.S. Internal Revenue Service form
W-8BEN or W-8ECI, as appropriate, or any successor form prescribed by the U.S.
Internal Revenue Service, certifying, if it is entitled to so certify, that such
Indemnified Party is fully exempt from United States withholding taxes with
respect to all payments to be made to such Indemnified Party hereunder, or other
documents satisfactory to the Parent indicating that all payments to be made to
such Indemnified Party hereunder are fully exempt from such taxes, if such is
the case. Thereafter and from time to time, each such Indemnified Party shall
submit to the Parent and the Administrative Agent such additional duly completed
and signed copies of one or the other of such forms (or such successor forms as
shall be adopted from time to time by the relevant United States taxing
authorities) as may be (i) notified by the Parent to such Indemnified Party and
(ii) required under then-current United States law or regulations to avoid
United States withholding taxes on payments in respect of all amounts to be
received by such Indemnified Party hereunder or under the Notes, including fees,
if the particular Indemnified Party is eligible for such exemption. Upon the
request of the Parent from time to time, each Indemnified Party that is a United
States person (as such term is defined in Section 7701(a)(30) of the Internal
Revenue Code) shall submit to the Parent a certificate to the effect that it is
such a United States person. If any Indemnified Party determines that it is not
fully exempt from United States withholding taxes with respect to all payments
to be received hereunder and is therefore unable to submit to the Parent any
form or certificate that such Indemnified Party would otherwise be obligated to
submit pursuant to this subsection (f), or that such Indemnified Party is
required to withdraw or cancel any such form or certificate previously submitted
because it is no longer entitled to such an exemption, such Indemnified Party
shall promptly notify the Parent and the Administrative Agent of such fact.
(g) In the event that, as a result of a Change in Law,
Canada or any political subdivision thereof introduces certification,
identification, information, documentation or other reporting requirements which
require compliance by an Indemnified Party as a pre-condition to an exemption
from withholding on Canadian Taxes for any payment made from Canada by the
Borrowers or the Parent, hereunder or under the Notes (the "CANADIAN
CERTIFICATION REQUIREMENTS"), then such Indemnified Party shall provide the
Parent, the Borrowers and the Administrative Agent with any applicable forms,
certificates or other documentation, as appropriate and as prescribed by the
appropriate Canadian governmental authority, certifying, if it is entitled to so
certify, that such Indemnified Party is so exempt from Canadian withholding
taxes with respect to payments to be made to such Indemnified Party, if such is
the case. Thereafter and from time to time, each such Indemnified Party shall
submit to the Parent, the Borrowers and the Administrative Agent such additional
duly completed and signed copies of one or
44
the other of such forms, certificates or other documentation as may be notified
by the Parent or by the Borrowers to such Indemnified Party and required under
then-current Canadian law or regulations (or the law or regulations of any
political subdivision of Canada, if applicable) to avoid Canadian withholding
taxes on payments in respect of all amounts to be received by such Indemnified
Party pursuant to this Agreement or the Notes, including fees, if the particular
Indemnified Party is eligible for such exemption. If any Indemnified Party
determines that it is not exempt from Canadian withholding taxes with respect to
all payments to be received hereunder and is therefore unable to submit to the
Parent, the Borrowers or the Administrative Agent any form, certificate or other
documentation that such Indemnified Party would otherwise be obligated to submit
pursuant to this subsection (g), or that such Indemnified Party is required to
withdraw or cancel any such form, certificate or documentation previously
submitted because it is no longer entitled to such an exemption, then such
Indemnified Party shall promptly notify the Parent, the Borrowers and the
Administrative Agent of such fact. The Borrowers and the Parent acknowledge that
no such Canadian Certification Requirements currently exist under Canadian law.
The obligations of each Indemnified Party under this Section 2.16(g) shall not
be effective with respect to such Indemnified Party unless and until either the
Parent, the Borrowers or the Administrative Agent provides written notice to
such Indemnified Party of any such Canadian Certification Requirements and
extends to such Indemnified Party a reasonable amount of time, not to exceed 30
days, to comply with any such requirements.
(h) Any Indemnified Party claiming any additional amounts
payable pursuant to this Section 2.16 shall use its best reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to
change the jurisdiction of its Applicable Lending Office if the making of such a
change would avoid the need for, or reduce the amount of, any such additional
amounts which may thereafter accrue and would not, in the reasonable judgment of
such Indemnified Party, be otherwise disadvantageous to such Indemnified Party.
(i) Without prejudice to the survival of any other
agreement of the Borrowers and the Parent hereunder, the agreements and
obligations of the Borrowers, the Parent and each Indemnified Party contained in
this Section 2.16 shall survive the payment in full of principal and interest
hereunder and under the Notes.
45
SECTION 2.17 SHARING OF PAYMENTS, ETC. If any Lender shall
obtain any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) on account of the Advances made by it (other
than pursuant to Section 2.12, 2.13, 2.14, 2.16, 9.04(b) or 9.04(c)) in excess
of its ratable share of payments on account of the Advances obtained by all the
Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the Advances made by them as shall be necessary to cause such
purchasing Lender to share the excess payment ratably with each of them,
provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each Lender
shall be rescinded and each Lender shall repay to the purchasing Lender the
purchase price to the extent of such Lender's ratable share (according to the
proportion of (i) the amount of the participation purchased from such Lender as
a result of such excess payment to (ii) the total amount of such excess payment)
of such recovery together with an amount equal to such Lender's ratable share
(according to the proportion of (A) the amount of such Lender's required
repayment to (B) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. Each Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section may, to
the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully as
if such Lender were the direct creditor of such Borrower in the amount of such
participation.
SECTION 2.18 EVIDENCE OF DEBT.
(a) 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 Advance made by such Lender
hereunder, including the amounts of principal and interest payable and paid to
such lender from time to time hereunder.
(b) The Administrative Agent shall maintain accounts and
records in which it shall record (i) the amount of each Advance made hereunder,
the type of Advance and, in the cases of B/A Advances and Eurodollar Rate
Advances, the relevant Contract Period or 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.
(c) The entries made in the accounts maintained pursuant
to Sections 2.18(a) and (b) shall be conclusive evidence (absent manifest error)
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 obligations of the
applicable Borrower to repay the Advances made to it in accordance with the
terms of this Agreement. In the event of a conflict between the records
maintained by the Administrative Agent and any Lender, the records maintained by
the Lender shall govern. Any Lender may request that Loans (other than B/As)
made by it be evidenced by a Note. In such event, each Borrower shall prepare,
execute and deliver to such Lender a Note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its registered assigns) and
substantially in the form attached as Exhibit A hereto. Thereafter, the Loans
evidenced by each such Note and interest thereon shall at all times (including
after assignment
46
pursuant to Section 9.07) be represented by one or more Notes in such form
payable to the order of the payee named therein (or, if such Note is a
registered Note, to such payee and its registered assigns).
SECTION 2.19 USE OF PROCEEDS. Proceeds of the Advances may be
used for general corporate purposes of the Borrowers and their Subsidiaries and
of Parent and any of its other Subsidiaries, including for acquisitions and for
payment of commercial paper issued by either Borrower or any such other Person.
SECTION 2.20 INCREASE OF COMMITMENTS. (a) At any time after
the Effective Date, provided that no Event of Default shall have occurred and be
continuing, the Borrowers may request an increase of the aggregate Commitments
by notice to the Administrative Agent in writing of the amount (the "OFFERED
INCREASE AMOUNT") of such proposed increase (such notice, a "COMMITMENT INCREASE
NOTICE"). Any such Commitment Increase Notice must offer each Lender the
opportunity to subscribe for its pro rata share of the increased Commitments. If
any portion of the increased Commitments is not subscribed for by the Lenders,
the Borrowers may, in their sole discretion, but with the consent of the
Administrative Agent as to any Person that is not at such time a Lender (which
consent shall not be unreasonably withheld), offer to any existing Lender or to
one or more additional banks or financial institutions the opportunity to
participate in all or a portion of such unsubscribed portion of the increased
Commitments pursuant to paragraph (b) or (c) below, as applicable.
(b) Any additional bank or financial institution that the
Borrowers select to offer participation in the increased Commitments, and that
elects to become a party to this Agreement and obtain a Commitment, shall
execute a New Lender Agreement with the Borrowers and the Administrative Agent,
substantially in the form of Exhibit E (a "NEW LENDER AGREEMENT"), whereupon
such bank or financial institution (a "NEW LENDER") shall become a Lender for
all purposes and to the same extent as if originally a party hereto and shall be
bound by and entitled to the benefits of this Agreement, and the signature pages
and Schedule III hereof shall be deemed to be amended to add the name and
Commitment of such New Lender, provided that the Commitment of any such New
Lender shall be in an amount not less than Cdn.$5,000,000.
(c) Any Lender that accepts an offer to it by the
Borrowers to increase its Commitment pursuant to this Section 2.20 shall, in
each case, execute a Commitment Increase Agreement with the Borrowers and the
Administrative Agent, substantially in the form of Exhibit F (a "COMMITMENT
INCREASE AGREEMENT"), whereupon such Lender shall be bound by and entitled to
the benefits of this Agreement with respect to the full amount of its Commitment
as so increased, and Schedule III hereof shall be deemed to be amended to so
increase the Commitment of such Lender.
(d) The effectiveness of any New Lender Agreement or
Commitment Increase Agreement shall be contingent upon receipt by the
Administrative Agent of such corporate resolutions of the Borrowers and legal
opinions of counsel to the Borrowers as the Administrative Agent shall
reasonably request with respect thereto, in each case, in form and substance
satisfactory to the Administrative Agent.
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(e) If any bank or financial institution becomes a New
Lender pursuant to Section 2.20(b) or any Lender's Commitment is increased
pursuant to Section 2.20(c), additional Advances made on or after the
effectiveness thereof (the "RE-ALLOCATION DATE") shall be made pro rata based on
the Commitment Percentages in effect on and after such Re-Allocation Date
(except to the extent that any such pro rata borrowings would result in any
Lender making an aggregate principal amount of Advances in excess of its
Commitment, in which case such excess amount will be allocated to, and made by,
such New Lender and/or Lenders with such increased Commitments to the extent of,
and pro rata based on, their respective Commitments), and continuations of
Eurodollar Rate Advances outstanding on such Re-Allocation Date shall be
effected by repayment of such Eurodollar Rate Advances on the last day of the
Interest Period applicable thereto and the making of new Eurodollar Rate
Advances pro rata based on such new Commitment Percentages. In the event that on
any such Re-Allocation Date there is an unpaid principal amount of Prime Rate
Advances or Base Rate Advances, the existing Lenders shall be deemed to have
made partial assignments thereof to the New Lenders and/or Lenders with such
increased Commitments in such amounts that, after giving effect thereto, the
Prime Rate Advances and Base Rate Advances outstanding are held pro rata based
on such new Commitment Percentages. In the event that on any such Re-Allocation
Date there is an unpaid principal amount of Eurodollar Rate Advances, such
Eurodollar Rate Advances shall remain outstanding with the respective holders
thereof until the expiration of their respective Interest Periods (unless the
applicable Borrower elects to prepay any thereof in accordance with the
applicable provisions of this Agreement), and interest on and repayments of such
Eurodollar Rate Advances will be paid thereon to the respective Lenders holding
such Eurodollar Rate Advances pro rata based on the respective principal amounts
thereof outstanding. In the event that on any such Re-Allocation Date there is
an unpaid principal amount of B/A Advances, such B/A Advances shall remain
outstanding with the respective holders thereof until the expiration of their
respective Contract Periods, and repayments of such B/A Advances will be paid
thereon to the respective Lenders holding such B/As based on the respective face
amounts thereof.
(f) Notwithstanding anything to the contrary in this
Section 2.20, (i) no increase pursuant to this Section 2.20 shall be effective
without the consent of the Required Lenders, (ii) no Lender shall have any
obligation to increase its Commitment unless it agrees to do so in its sole
discretion and (iii) the aggregate amount by which the Commitments hereunder are
increased pursuant to this Section 2.20 shall not exceed Cdn. $116,964,000.
(g) Each Borrower shall execute and deliver a Note to
each new bank or other financial institution becoming a Lender that requests
one.
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SECTION 2.21 EXTENSION OF REVOLVING COMMITMENT TERMINATION
DATE. (a) Not earlier than 65 days prior to and not later than 45 days prior to
the Revolving Commitment Termination Date then in effect, provided that no Event
of Default shall have occurred and be continuing, the Borrowers may request an
extension of such Revolving Commitment Termination Date by submitting to the
Administrative Agent an Extension Request containing the information in respect
of such extension specified in Exhibit G, which the Administrative Agent shall
promptly furnish to each Lender. Each Lender shall, by the later of (i) the date
30 days after its receipt from the Administrative Agent of the applicable
Extension Request and (ii) the date 30 days prior to the Revolving Commitment
Termination Date, notify the Borrowers and the Administrative Agent of its
consent to extend or its refusal to extend the Revolving Commitment Termination
Date as requested in such Extension Request. Any such Extension Request shall be
approved if the Required Lenders shall approve in writing the extension of the
Revolving Commitment Termination Date requested in such Extension Request. The
Borrowers may request no more than ten extensions pursuant to this Section 2.21,
so that the Revolving Commitment Termination Date shall not in any event extend
beyond the tenth anniversary of the initial Revolving Commitment Termination
Date hereunder. The Administrative Agent shall promptly notify the Lenders and
the Borrowers of any extension of the Revolving Commitment Termination Date
pursuant to this Section 2.21 and shall promptly notify the Borrowers of any
Lender that has notified the Administrative Agent of its consent to extend or
its refusal to extend the Revolving Commitment Termination Date.
(b) If any such Extension Request is approved but there
are one or more Lenders that do not consent to the Extension Request in writing
within the period specified in paragraph (a) above (an "Objecting Lender"), the
Borrowers shall be entitled to choose any of the following options prior to the
Revolving Commitment Termination Date, provided that if the Borrowers do not
make an election prior to such date, the Borrowers shall be deemed to have
irrevocably elected to exercise the option in clause (iii)(y) below:
(i) the Borrowers may elect to cause the Commitments and
Advances of any Objecting Lender to be transferred or assigned pursuant
to Section 2.21(c); and/or
(ii) the Borrowers may elect to voluntarily prepay the
Advances, if any, of Objecting Lenders together with accrued interest
thereon, any amounts payable pursuant to Sections 2.06, 2.12, 2.13,
2.16 and 9.04(b) and any accrued and unpaid facility fee or utilization
fee or other amounts payable with respect to such Objecting Lenders,
and the Commitments of such Objecting Lenders shall be terminated; or
(iii) the Borrowers may elect to revoke and cancel the
Extension Request by giving notice of such revocation and cancellation
to the Administrative Agent (which shall promptly notify the Lenders
thereof) and concurrently therewith shall have the option to (x)
voluntarily prepay the Advances, if any, of all Lenders, together with
accrued interest thereon, any amounts payable pursuant to Sections
2.06, 2.12, 2.13, 2.16 and 9.04(b) and any accrued and unpaid facility
fee or utilization fee or other amounts payable with respect to the
Lenders, and the Commitments of all Lenders shall be terminated or (y)
have the outstanding
49
Advances continue as term loans repayable in accordance with paragraphs
(a), (b), (c) and (d) of Section 2.05 of this Agreement.
(c) If any Lender becomes an Objecting Lender, the
Borrowers may, at their own expense and in their sole discretion and prior to
the then Revolving Commitment Termination Date, require such Lender to transfer
or assign, without recourse (in accordance with Section 8.07), all of its
interests, rights and obligations under this Agreement and, if the Borrowers
shall so determine in their sole discretion, all or part of its interest, rights
and obligations under the U.S. Long-Term Revolving Credit Agreement and/or the
U.S. Short-Term Revolving Credit Agreement, as the case may be) to an Eligible
Assignee (provided that the Borrowers, with the full cooperation of such Lender,
can identify an Eligible Assignee that is ready, willing and able to be an
assignee with respect thereto) which shall assume such assigned obligations
(which assignee may be another Lender, if such assignee Lender accepts such
assignment); provided that (A) the assignee or the applicable Borrower, as the
case may be, shall have paid to such Lender in immediately available funds the
principal of and interest accrued to the date of such payment on the Advances
made by it hereunder and the "Advances" made by it under, and as defined in, the
U.S. Long-Term Revolving Credit Agreement or the U.S. Short-Term Revolving
Credit Agreement, as the case may be, and all other amounts owed to it hereunder
and thereunder, including any amounts owing pursuant to Section 9.04(b) (or the
comparable provision of the U.S. Long-Term Revolving Credit Agreement or the
U.S. Short-Term Revolving Credit Agreement, as the case may be) and any amounts
that would be owing under such Section (or comparable provision) if such
Advances and "Advances" (as so defined) were prepaid on the date of such
assignment, and (B) such assignment does not conflict with any law, rule or
regulation or order of any governmental authority. Any assignee that becomes a
Lender as a result of such an assignment made pursuant to this paragraph (b)
shall be deemed to have consented to the applicable Extension Request and,
therefore, shall not be an Objecting Lender.
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SECTION 2.22 REPLACEMENT OF LENDERS. If any Lender requests
compensation under Sections 2.11 or 2.13 or if either Borrower is required to
pay any additional amount to any Lender or any taxing authority or other
authority for the account of any Lender pursuant to Section 2.16, or if any
Lender suspends the right of the Borrowers to elect Eurodollar Rate Advances
from such Lender pursuant to Section 2.14, or if any Lender defaults in its
obligation to fund Advances hereunder, then the Borrowers may, at their 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 9.07), all its interests,
rights and obligations under this Agreement and, if the Borrowers shall so
determine in their sole discretion, the U.S. Long-Term Revolving Credit
Agreement and/or the U.S. Short-Term Revolving Credit Agreement, as the
Borrowers may determine in their sole discretion and specify by notice to such
Lender, (other than "B Advances" under, and as defined in, the U.S. Long-Term
Revolving Credit Agreement and/or the U.S. Short-Term Revolving Credit
Agreement, as the case may be) to an assignee that shall assume such obligations
(which assignee may be another Lender, if a Lender accepts such assignment);
provided that (i) the Borrowers shall have received the prior written consent of
the Administrative Agent, which consent shall not unreasonably be withheld, (ii)
such Lender shall have received payment of an amount equal to the outstanding
principal of its Advances hereunder and, if the Borrowers shall have so
determined as specified above, its "Advances" (other than "B Advances") (each
under and as defined in the U.S. Long-Term Revolving Credit Agreement and/or the
U.S. Short-Term Revolving Credit Agreement, as the case may be), and all accrued
interest thereon, accrued fees, accrued costs in connection with compensation
under Sections 2.12 or 2.13 or payments required to be made pursuant to Section
2.16, if any, and all other amounts (other than "B Advances") payable to it
hereunder and, if the Borrowers shall have so determined as specified above,
under the U.S. Long-Term Revolving Credit Agreement and/or the U.S. Short-Term
Revolving Credit Agreement, as the case may be, from the assignee (to the extent
of such outstanding principal and accrued interest and fees) or the applicable
Borrower (in the case of all other amounts) and (iii) in the case of any such
assignment resulting from a claim for compensation under Sections 2.12 or 2.13
or payments required to be made pursuant to Section 2.16, 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
Borrowers to require such assignment and delegation cease to apply.
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SECTION 2.23 CURRENCY INDEMNITY. If, for the purposes of
obtaining judgment in any court in any jurisdiction with respect to this
Agreement or any other Financing Document, it becomes necessary to convert into
the currency of such jurisdiction (the "JUDGMENT CURRENCY") any amount due under
this Agreement or under any other Financing Document in any currency other than
the Judgment Currency (the "CURRENCY DUE"), then conversion shall be made at the
rate of exchange prevailing on the Business Day before the day on which the
judgment is given. For this purpose, "rate of exchange" means the rate at which
the Administrative Agent is able, on the relevant date, to purchase the Currency
Due with the Judgment Currency in accordance with its normal practice at its
head office in Xxxxxxx, Xxxxxxx. In the event that there is a change in the rate
of exchange prevailing between the Business Day before the day on which the
judgment is given and the date of receipt by the Administrative Agent of the
amount due, the applicable Borrower will, on the date of receipt by the
Administrative Agent, pay such additional amounts, if any, or be entitled to
obtain reimbursement of such amount, if any, as may be necessary to ensure that
the amount received by the Administrative Agent on such date is the amount in
the Judgment Currency which when converted at the rate of exchange prevailing on
the date of receipt by the Administrative Agent is the amount then due under
this Agreement or under such other Financing Document in the Currency Due. If
the amount of the Currency Due which the Administrative Agent is so able to
purchase is less than the amount of the Currency Due originally due to it, the
applicable Borrower shall indemnify and save the Administrative Agent and the
Lenders harmless from and against all loss or damage arising as a result of such
deficiency. This indemnity shall constitute an obligation separate and
independent from the other obligations contained in this Agreement and the other
Financing Documents, shall give rise to a separate and independent cause of
action, shall apply irrespective of any indulgence granted by the Administrative
Agent from time to time and shall continue in full force and effect
notwithstanding any judgment or order for a liquidated sum in respect of an
amount due under this Agreement or any other Financing Document or under any
judgment or order.
SECTION 2.24 EXCHANGE RATE CALCULATIONS. (a) Not later than
12:00 noon, Calgary local time, on each Calculation Date, the Administrative
Agent shall (i) determine the Exchange Rate as of such Calculation Date and (ii)
give notice thereof to the Borrowers and to each Lender that shall have
requested such information. The Exchange Rates so determined shall become
effective on the first Business Day immediately following the relevant
Calculation Date (each, a "RESET DATE") and shall remain effective until the
next succeeding Reset Date.
(b) Not later than 12:00 noon, Calgary local time, on each
Reset Date, the Administrative Agent shall (i) determine the Cdn.$ Equivalent of
the Advances outstanding on such date, or to be outstanding after giving effect
to any Borrowing to occur on such date, and (ii) notify the Borrowers and each
Lender that shall have requested such information of the aggregate outstanding
Advances, based on information provided by each Borrower after giving effect to
all Advances and all repayments and prepayments to occur on such date.
52
ARTICLE 3
CONDITIONS OF EFFECTIVENESS AND LENDING
SECTION 3.01 CONDITIONS PRECEDENT TO EFFECTIVENESS OF THIS
AGREEMENT. This Agreement shall become effective when (i) it shall have been
executed by the Borrowers, Parent and the Administrative Agent, (ii) the
Administrative Agent and the Borrowers either shall have been notified by each
Initial Lender that such Initial Lender has executed it or shall have received a
counterpart of this Agreement executed by such Initial Lender, and (iii) the
Administrative Agent shall have received the following, each dated the date of
delivery thereof unless otherwise specified below (which date shall be selected
by the Borrowers and be the same for all documents and all Lenders), in form and
substance satisfactory to the Administrative Agent and (except for the Notes, if
any) in sufficient copies for each Lender:
(a) the Notes, to the order of the Lenders requesting
Notes, respectively;
(b) certified copies of the resolutions of the directors
of the Borrowers and the Board of Directors of Parent, approving (as
appropriate) the Borrowings contemplated hereby and authorizing the execution of
this Agreement and the other Financing Documents, including the Notes, if any,
and of all documents evidencing other necessary corporate action and
governmental approvals, if any, with respect to this Agreement and any other
Financing Documents;
(c) a certificate of the Secretary or an Assistant
Secretary of the Borrowers and Parent (i) certifying names and true signatures
of officers of such Person authorized to sign this Agreement, the Notes, if any,
and any other Financing Documents to which it is a party and (ii) if the
Effective Date is other than the date of this amendment and restatement,
certifying that the representations and warranties contained in Section 4.01 are
true and correct as of the Effective Date;
(d) Evidence of the effectiveness of the amendment and
restatement of the U.S. Short-Term Revolving Credit Agreement;
(e) A favorable opinion of Parent's Vice President and
General Counsel in substantially the form of Exhibit H-1 hereto;
(f) A favorable opinion of Xxxxxx Xxxxxxxxx, counsel for
BRCL and Canadian Hunter, in substantially the form of Exhibit H-2 hereto;
(g) A favorable opinion of Xxxxxxx Xxxxx LLP, Alberta
counsel to the Borrowers, in substantially the form of Exhibit I hereto; and
(h) The Administrative Agent, the Lenders and the
Arranger shall have received all fees and other amounts due and payable on or
prior to the Effective Date, including, to the extent invoiced, reimbursement or
payment of all legal fees and other out-of-pocket expenses required to be
reimbursed or paid by the Borrowers hereunder.
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The Borrowers and the Initial Lenders agree that upon the
Effective Date the "Commitments" of the Initial Lenders shall be as set forth on
Schedule III hereof under the caption "Commitments".
SECTION 3.02 CONDITIONS PRECEDENT TO EACH BORROWING. The
obligation of each Lender to make an Advance (including the initial Advance) on
the occasion of any Borrowing shall be subject to the further conditions
precedent that on or before the date of such Borrowing this Agreement shall have
become effective pursuant to Section 3.01 and that on the date of such
Borrowing, before and immediately after giving effect to such Borrowing and to
the application of the proceeds therefrom, the following statements shall be
true and correct, and the giving by the applicable Borrower of the applicable
Notice of Borrowing and the acceptance by such Borrower of the proceeds of such
Borrowing shall constitute its representation and warranty that on and as of the
date of such Borrowing, before and immediately after giving effect thereto and
to the application of the proceeds therefrom, the following statements are true
and correct:
(a) each representation and warranty contained in Section
4.01 is correct in all material respects as though made on and as of such date
(or, if such representation and warranty is stated to be made as at a specific
date or for a specific period, as at the original specified date or with respect
to the original specified period);
(b) no event has occurred and is continuing, or would
result from such Borrowing, which constitutes an Event of Default or would
constitute an Event of Default but for the requirement that notice be given or
time elapse or both; and
(c) the aggregate amount of the borrowings under this
Agreement (including such Borrowing) and under other agreements or facilities or
evidenced by other instruments or documents is not in excess of the aggregate
amount of such borrowings approved as of such date (to the extent any such limit
on aggregate borrowings exists from time to time) by the Boards of Directors of
Parent and of each Borrower.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES
SECTION 4.01 REPRESENTATIONS AND WARRANTIES OF THE BORROWERS.
Each of the Borrowers and Parent represents and warrants as follows:
(a) Each Borrower is a Business Entity duly formed,
validly existing and in good standing under the laws of the jurisdiction of its
organization. The Parent is a Business Entity duly formed, validly existing and
in good standing under the laws of the State of Delaware. Each Material
Subsidiary is duly organized, validly existing and in good standing in the
jurisdiction of its formation. Parent and each Material Subsidiary possess all
applicable Business Entity powers and all other authorizations and licenses
necessary to engage in its business and operations as now conducted, the failure
to obtain or maintain which would have a Material Adverse Effect. Each
Subsidiary of Parent that is, on and as of the Effective Date, a Material
Subsidiary is listed on Schedule I hereto.
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(b) The Transactions are within the Business Entity
powers of the Borrowers and Parent (as applicable), have been duly authorized by
all necessary applicable Business Entity action, and do not contravene (i) the
organizational documents (as applicable) of the Borrowers or the Parent (as
applicable) or (ii) law or any contractual restriction binding on or affecting
the Borrowers or the Parent. This Agreement, the Notes, if any, and the other
Financing Documents, if any, have been duly executed and delivered by the
Borrowers and the Parent (as applicable).
(c) The Transactions do not require any authorization or
approval or other action by, nor any notice to or filing with, any governmental
authority or regulatory body for the due execution, delivery and performance by
the Borrowers and the Parent (as applicable) of this Agreement, the Notes, if
any, or the other Financing Documents, if any, as applicable, that has not been
duly made or obtained, except those (i) required in the ordinary course to
comply with ongoing covenant obligations of the Borrowers and Parent hereunder
the performance of which is not yet due and (ii) that will, in the ordinary
course of business in accordance with this Agreement, be duly made or obtained
on or prior to the time or times the performance of such obligations shall be
due.
(d) This Agreement constitutes, and the Notes (if and
when delivered hereunder) and the other Financing Documents, if any, when
delivered hereunder shall constitute, legal, valid and binding obligations of
the Borrowers or the Parent (as applicable) enforceable against each such Person
in accordance with their respective terms, except as may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting creditors' rights generally or by general principles of equity.
(e) The consolidated balance sheet of the Parent and its
consolidated Subsidiaries as at December 31, 2002 and the related consolidated
statements of income and cash flow for the fiscal year then ended, reported on
by PricewaterhouseCoopers LLC, independent public accountants, and the
consolidated balance sheet of the Parent and its consolidated subsidiaries as at
September 30, 2003 and the related consolidated statements of income and cash
flow for the nine-month period then ended, certified by the chief financial
officer of the Parent, copies of each of which have been furnished to the
Administrative Agent and the Initial Lenders, fairly present the consolidated
financial condition of the Parent and such Subsidiaries as at December 31, 2002,
and September 30, 2003, respectively, and the consolidated results of their
operations for such fiscal periods, subject in the case of the September 30,
2003 statements to normal year-end adjustments, all in accordance with generally
accepted accounting principles consistently applied (except as disclosed
therein). From September 30, 2003 to and including the Effective Date there has
been no material adverse change in such condition or results of operations.
(f) As at the Effective Date, there is no action, suit or
proceeding pending, or to the knowledge of the Borrowers and Parent threatened,
against or involving Parent or any Material Subsidiary in any court, or before
any arbitrator of any kind, or before or by any governmental body, which in the
reasonable judgment of the Borrowers and Parent (taking into account the
exhaustion of all appeals) would have a material adverse effect on the
consolidated financial condition of Parent and its consolidated Subsidiaries
taken as a whole, or which purports to affect the legality,
55
validity, binding effect or enforceability of this Agreement, the Notes, if any,
or the other Financing Documents, if any.
(g) Parent and each of its consolidated Subsidiaries has
duly filed all tax returns required to be filed, and duly paid and discharged
all taxes, assessments and governmental charges upon it or against its
properties now due and payable, the failure to file or pay which, as applicable,
would have a Material Adverse Effect, unless and to the extent only that the
same are being contested in good faith and by appropriate proceedings by Parent
or the appropriate Subsidiary.
(h) Except to the extent permitted pursuant to Section
5.02(e), neither Parent nor any Material Subsidiary is subject to any
contractual restrictions which limit the amount of dividends payable by any
Subsidiary.
(i) No Termination Event has occurred or is reasonably
expected to occur with respect to any Plan which, with the giving of notice or
lapse of time, or both, would constitute an Event of Default under Section
6.01(g).
(j) Neither Parent nor any ERISA Affiliate has incurred,
or is reasonably expected to incur, any Withdrawal Liability to any
Multiemployer Plan that, when aggregated with all other amounts required to be
paid to Multiemployer Plans in connection with Withdrawal Liability (as of the
date of determination), exceeds 5% of the Consolidated Tangible Net Worth of
Parent.
(k) Neither Parent nor any ERISA Affiliate has received
any notification that any Multiemployer Plan is in reorganization or has been
terminated, within the meaning of Title IV of ERISA, and no Multiemployer Plan
is reasonably expected to be in reorganization or to be terminated within the
meaning of Title IV of ERISA the effect of which reorganization or termination
would be the occurrence of an Event of Default under Section 6.01(i).
(l) None of Parent nor either Borrower is an "investment
company" or a "company" controlled by an "investment company" within the meaning
of the United States Investment Company Act of 1940, as amended.
(m) None of Parent nor either Borrower is a "holding
company" or a "subsidiary company" of a "holding company", or an "affiliate" of
a "holding company" or of a "subsidiary company" of a "holding company", or a
"public utility" within the meaning of the United States Public Utility Holding
Company Act of 1935, as amended.
(n) The proceeds of the Advances will not be used in any
way which would violate the provisions of Regulation U or X of the Board of
Governors of the Federal Reserve System.
All representations and warranties made by the Borrowers
and/or Parent herein or made in any certificate delivered pursuant hereto shall
survive the making of the Advances and the execution and delivery to the Lenders
of this Agreement and the Notes.
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ARTICLE 5
COVENANTS
SECTION 5.01 AFFIRMATIVE COVENANTS. So long as any Advance,
Note or other amount payable either Borrower hereunder shall remain unpaid or
any Lender shall have any Commitment hereunder, Parent will, unless the Majority
Lenders shall otherwise consent in writing:
(a) PRESERVATION OF EXISTENCE, ETC. Preserve and
maintain, and cause each Material Subsidiary to preserve and maintain, its
existence, rights (organizational and statutory) and material franchises, except
as otherwise contemplated or permitted by Section 5.02(c) or 5.02(d); provided,
that any Material Subsidiary may change its form of organization to a
partnership or other form of Business Entity and may change its jurisdiction of
organization, provided further that in the case of any such change by a
Borrower, its jurisdiction of organization remains in Canada, and in connection
with any such change by a Borrower, such Borrower shall cause to be delivered to
the Administrative Agent a legal opinion of counsel acceptable to the
Administrative Agent to the effect that the successor entity to such Borrower
continues to be bound by, or has assumed by instrument or by operation of law,
all of such Borrower's obligations under this Agreement and the Notes.
(b) COMPLIANCE WITH LAWS, ETC. Comply, and cause each
Subsidiary to comply, in all material respects, with all applicable laws, rules,
regulations and orders (including all environmental laws and laws requiring
payment of all taxes, assessments and governmental charges imposed upon it or
upon its property except to the extent contested in good faith by appropriate
proceedings) the failure to comply with which would have a Material Adverse
Effect.
(c) VISITATION RIGHTS. At such reasonable times and
intervals as the Administrative Agent or any of the Lenders may desire, permit
the Administrative Agent or any of the Lenders to visit each Borrower and to
discuss the affairs, finances, accounts and mineral reserve performance of
Parent and any of its Subsidiaries with officers of the Borrowers and Parent and
independent certified public accountants of Parent and any of its Subsidiaries,
provided that if an Event of Default, or an event which with the giving of
notice or the passage of time, or both, would become an Event of Default, has
occurred and is continuing, the Administrative Agent or any Lender may, in
addition to the other provisions of this subsection (c) and at such reasonable
times and intervals as the Administrative Agent or any of the Lenders may
desire, visit and inspect, under guidance of officers of Parent (or, in the case
of properties of the Borrowers or their Subsidiaries, of the Borrowers), as the
case may be, any properties significant to the consolidated operations of Parent
and its Subsidiaries, and to examine the books and records of account (other
than with respect to any mineral reserve information that Parent determines to
be confidential, except, during the continuation of an Event of Default, if such
Lenders shall have entered into a confidentiality agreement with respect to such
information satisfactory in form and substance to Parent) Parent and any of its
Subsidiaries and to discuss the affairs, finances and accounts of any of the
Subsidiaries of Parent with any of the officers of such Subsidiary.
57
(d) BOOKS AND RECORDS. Keep, and cause each of its
Subsidiaries to keep, proper books of record and account, in which full and
correct entries shall be made of all financial transactions and the assets and
business of Parent and each Subsidiary of Parent in accordance with GAAP either
(i) applied consistently with those referred to in Section 1.03 or (ii) applied
in a changed manner that does not, under GAAP or public reporting requirements
applicable to Parent, either require disclosure in the consolidated financial
statements of Parent and its consolidated Subsidiaries or require the consent of
the accountants which (as required by Section 5.03(b)) report on such financial
statements for the fiscal year in which such change shall have occurred, or
(iii) applied in a changed manner not covered by clause (ii) above provided such
change shall have been disclosed to the Administrative Agent and shall have been
consented to by the accountants which (as required by Section 5.03(b)) report on
the consolidated financial statements of Parent and its consolidated
Subsidiaries for the fiscal year in which such change shall have occurred,
provided that if, notwithstanding the provisions of Section 1.03, any change
referred to in clause (ii) or (iii) above would result in a covenant contained
in Section 5.01 or 5.02 being calculated or construed in a materially different
manner or with materially different results than if such covenant were
calculated or construed in accordance with the provisions of Section 1.03, the
Administrative Agent, the Lenders, the Borrowers and Parent agree, upon request
by Parent to the Administrative Agent or by the Administrative Agent to Parent,
to amend the covenants contained in Section 5.01 and 5.02 so that the relative
protection afforded thereby to the Lenders and the relative flexibility afforded
thereby to each Borrower will in substance be retained after such amendment,
provided, however, that until such amendment becomes effective hereunder, the
covenants as set forth herein shall remain in full force and effect and those
definitions and accounting principles applicable to Parent and its consolidated
Subsidiaries which do meet the standards set forth in Section 1.03 shall be
applied to determine whether or not each Borrower is in compliance with such
covenants.
(e) MAINTENANCE OF PROPERTIES, ETC. Maintain and
preserve, and cause each Material Subsidiary to maintain and preserve, all of
its properties which are used in the conduct of its business in good working
order and condition, ordinary wear and tear excepted, to the extent that any
failure to do so would have a Material Adverse Effect.
(f) MAINTENANCE OF INSURANCE. Maintain, and cause each
Material Subsidiary to maintain, insurance with responsible and reputable
insurance companies or associations in such amounts and covering such risks as
is usually carried by companies engaged in similar businesses and owning similar
properties in the same general areas in which Parent or such Subsidiary
operates.
SECTION 5.02 NEGATIVE COVENANTS. So long as any Advance, Note
or other amount payable by either Borrower hereunder shall remain unpaid or any
Lender shall have any Commitment hereunder, Parent will not, unless the Majority
Lenders shall otherwise consent in writing:
(a) LIENS, ETC. (i) Create, assume or suffer to exist, or
permit any Material Subsidiary to create, assume or suffer to exist, any Liens
upon or with respect to any of the Equity Interests in any Material Subsidiary,
whether now owned or hereafter acquired, or (ii) create or assume, or permit any
Material Subsidiary to create or assume, any Liens upon or with respect to any
other assets material to the consolidated operations
58
of Parent and its consolidated Subsidiaries taken as a whole securing the
payment of Debt and Guaranties in an aggregate amount (determined without
duplication of amount (so that the amount of a Guaranty will be excluded to the
extent the Debt Guaranteed thereby is included in computing such aggregate
amount)) exceeding the greater of (x) U.S.$250,000,000 and (y) 10% of
Consolidated Tangible Net Worth as at the date of such creation or assumption;
provided, however, that this subsection (a) shall not apply to:
(A) Liens on assets acquired by Parent or any of its
Subsidiaries after the Original Effective Date to the extent that such Liens
existed at the time of such acquisition and were not placed thereon by or with
the consent of Parent in contemplation of such acquisition;
(B) Liens on Equity Interests acquired after the Original
Effective Date in a Business Entity which has become or becomes a Subsidiary of
Parent, or on assets of any such Business Entity, to the extent that such Liens
existed at the time of such acquisition and were not placed thereon by or with
the consent of Parent in contemplation of such acquisition;
(C) Liens on Margin Stock;
(D) Liens on the Equity Interests in, or Debt or other
obligations of, or assets of, any Project Financing Subsidiary (or any Equity
Interests in, Debt or other obligations of any Business Entity which are owned
by any Project Financing Subsidiary) securing the payment of a Project Financing
and related obligations;
(E) Permitted Liens;
(F) Liens arising out of the refinancing, extension,
renewal or refunding of any Debt or Guaranty secured by any Lien permitted by
any of the foregoing clauses of this Section, provided that the principal amount
of such Debt or Guaranty is not increased (except by the amount of costs
reasonably incurred in connection with the issuance thereof) and such Debt or
Guaranty is not secured by any additional assets that would not have been
permitted by this Section to secure the Debt or Guaranty refinanced, extended,
renewed or refunded; and
(G) Liens on products and proceeds (including dividend,
interest and like payments on, and insurance and condemnation proceeds and
rental, lease, licensing and similar proceeds) of, and property evidencing or
embodying, or constituting rights or other general intangibles relating to, and
accessions and improvements to, collateral subject to Liens permitted by this
Section 5.02.
(b) DEBT, ETC. Create, assume or suffer to exist, or
permit any of its consolidated Subsidiaries to create, assume or suffer to
exist, any Debt or any Guaranty unless, immediately after giving effect to such
Debt or Guaranty and the receipt and application of any proceeds thereof or
value received in connection therewith,
(1) the sum (without duplication) of (i) consolidated
Debt of Parent and its consolidated Subsidiaries plus (ii) the aggregate amount
(determined on a consolidated basis) of Guaranties by Parent and its
consolidated Subsidiaries is less than 60% of Capitalization, provided that Debt
for borrowed money maturing within one year
59
and evidenced by instruments commonly known as commercial paper or Canadian
variable demand notes (other than Debt incurred pursuant to this Agreement, the
U.S. Short-Term Revolving Credit Agreement, the U.S. Long-Term Revolving Credit
Agreement or any other liquidity, working capital or acquisition financing
facility with banks or other financial institutions or any replacement
therefor), shall not exceed the sum of unused commitments under this Agreement,
the U.S. Short-Term Revolving Credit Agreement and the U.S. Long-Term Revolving
Credit Agreement and the aggregate of Parent's unused bank lines of credit and
unused credit available to Parent under financing arrangements with banks or
other financial institutions; and
(2) with respect to any such Debt created or assumed by a
consolidated Subsidiary that is either a Subsidiary of Parent as of the Original
Effective Date or a Subsidiary of Parent acquired or created after the Original
Effective Date and owning a material portion of the consolidated operating
assets existing at the Original Effective Date of Parent and its Subsidiaries,
the aggregate amount of Debt of the consolidated Subsidiaries of Parent referred
to above in this paragraph (2) owing to Persons other than Parent and its
consolidated Subsidiaries is less than the greater of (i) U.S.$500,000,000
(exclusive of public Debt of LL&E existing at the time LL&E became a Subsidiary,
the principal amount of which at such time was approximately U.S.$400,000,000,
and any refinancing of such Debt, in a principal amount not to exceed the
principal amount refinanced) and (ii) 30% of Consolidated Tangible Net Worth as
at the date of incurrence or creation of such Debt.
(c) SALE, ETC. OF ASSETS. Sell, lease or otherwise
transfer, or permit any Material Subsidiary to sell, lease or otherwise transfer
(in either case, whether in one transaction or in a series of transactions, and
except, in either case, to a Borrower or Parent or an entity which after giving
effect to such transfer will be or become a Material Subsidiary in which
Parent's direct or indirect Equity Interests will be at least as great as its
direct or indirect Equity Interests in the transferor immediately prior thereto,
and except as permitted by Section 5.02(d)), assets constituting all or
substantially all of the consolidated assets of Parent and its Material
Subsidiaries, provided that, notwithstanding the foregoing, Parent or any
Material Subsidiary may sell, lease or otherwise transfer any Permitted Assets
constituting all or substantially all of the consolidated assets of Parent and
its Material Subsidiaries, so long as (A) such Permitted Assets are sold, leased
or otherwise transferred in exchange for other Permitted Assets and/or (B) the
proceeds from such sale, lease or other transfer, or an amount equal to the
proceeds thereof, are (x) reinvested within one year from the date of receipt
thereof in Permitted Assets and/or the development of Permitted Assets and/or
(y) used to repay Debt the proceeds of which were or are being used for
investment in, and/or the development of, Permitted Assets; provided further
that, no such sale, lease or other transfer shall be permitted by the foregoing
proviso unless either (1) after giving effect to such sale, lease or other
transfer, no Event of Default, and no event which with lapse of time or the
giving of notice, or both, would constitute an Event of Default, shall have
occurred and be continuing or (2) Parent or the relevant Material Subsidiary, as
the case may be, was contractually obligated, prior to the occurrence of such
Event of Default or event, to consummate such sale, lease or other transfer.
(d) MERGERS, ETC. Merge, amalgamate or consolidate with
any Person, or in the case of Parent permit any Material Subsidiary to merge,
amalgamate or consolidate with any Person, except that:
60
(i) any Subsidiary may merge, amalgamate or consolidate with
(or liquidate into) any other Subsidiary or may merge, amalgamate or consolidate
with (or liquidate into) either Borrower or Parent, provided that (A) if such
Subsidiary merges, amalgamates or consolidates with (or liquidates into) either
Borrower or Parent, either (i) the survivor or successor is a Borrower or
Parent, as applicable, or (ii) in the case of an amalgamation involving either
Borrower under the laws of Canada or any province thereof, the continuing
corporation resulting from such amalgamation is organized and existing under the
laws of Canada or a province thereof and continues by operation of law to be
liable for all obligations of such Borrower under this Agreement and under the
Notes, provided that notice thereof and a copy of the amalgamation documents are
provided to the Administrative Agent, or (iii) each successor or surviving
Business Entity is organized and existing under the laws of Canada or a province
thereof or the United States or a state thereof, respectively, and expressly
assumes the obligations of such Borrower or Parent, as applicable, hereunder and
under the Notes, (B) if any such Subsidiary merges, amalgamates or consolidates
with (or liquidates into) any other Subsidiary of Parent, one or more Business
Entities that are Subsidiaries of Parent are the surviving or successor Business
Entity(ies) and, if either such Subsidiary is not directly or indirectly
wholly-owned by either Borrower or Parent, such merger, amalgamation or
consolidation is on an arm's length basis and (C) as a result of such merger,
amalgamation or consolidation, no Event of Default, and no event which with
lapse of time or the giving of notice, or both, would constitute an Event of
Default, shall have occurred and be continuing, and
(ii) each Borrower, Parent or any Material Subsidiary may
merge, amalgamate or consolidate with any other Business Entity (that is, in
addition to the Borrowers, Parent or any other Subsidiary of Parent), provided
that (A) if either Borrower or Parent merges, amalgamates or consolidates with
any such other Business Entity(ies), either the survivor or successor Business
Entity is a Borrower or Parent, as applicable, (B) if any Material Subsidiary
merges, amalgamates or consolidates with any such other Business Entity, each
surviving or successor Business Entity is a directly or indirectly wholly-owned
Subsidiary, and (C) if a Borrower, Parent or any Material Subsidiary merges,
amalgamates or consolidates with any such other Business Entity, after giving
effect to such merger, amalgamation or consolidation no Event of Default, and no
event which with lapse of time or the giving of notice, or both, would
constitute an Event of Default, shall have occurred and be continuing.
(e) DIVIDEND RESTRICTIONS. Create, or consent or agree
to, or permit any of its Material Subsidiaries existing on the Original
Effective Date or any of its Subsidiaries thereafter created or acquired and
owning a material portion of the consolidated operating assets existing at the
Original Effective Date of Parent and its Subsidiaries, to create, or consent or
agree to, any restrictions, contained in any agreement or instrument relating to
or evidencing Debt, on any such Subsidiary's ability to pay dividends or to make
advances to Parent or any Subsidiary of Parent; provided, however, that this
subsection (e) shall not apply to any such restrictions (including any
extensions of the term of any thereof (by amendment, or continuation thereof in
any refinancing of the Debt to which such restriction relates, or otherwise))
applicable to the Equity Interests in any Subsidiary of Parent, the Equity
Interests in which are acquired by Parent after the Original Effective Date and
which restrictions are existing at the time
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such Subsidiary first becomes a Subsidiary of Parent and are not placed thereon
by or with the consent of Parent in contemplation of such acquisition by Parent.
SECTION 5.03 REPORTING REQUIREMENTS. So long as any Note shall
remain unpaid or any Lender shall have any Commitment hereunder, the Borrowers
will furnish to each Lender in such reasonable quantities as shall from time to
time be requested by such Lender:
(a) within 60 days after the end of each of the first
three quarters of each fiscal year of Parent, a consolidated balance sheet of
Parent and its consolidated Subsidiaries as of the end of such quarter, and
consolidated statements of income and cash flow of Parent and its consolidated
Subsidiaries each for the period commencing at the end of the previous fiscal
year and ending with the end of such quarter, certified (subject to normal
year-end adjustments) as to fairness and utilization of GAAP then in effect by
the chief financial officer of Parent and accompanied by a certificate of such
officer stating (i) that such statements of income and cash flow and such
balance sheet have been prepared in accordance with GAAP then in effect, (ii)
whether or not such officer has knowledge of the occurrence of any Event of
Default which is continuing hereunder or of any event not theretofore remedied
which with notice or lapse of time or both would constitute such an Event of
Default and, if so, stating in reasonable detail the facts with respect thereto,
(iii) all relevant facts in reasonable detail to evidence, and the computations
as to, whether or not Parent is in compliance with the requirements set forth in
subsection (b) of Section 5.02, (iv) a listing of all Material Subsidiaries and
consolidated Subsidiaries of Parent showing the extent of its direct and
indirect holdings of their Equity Interests and (v) if the financial statements
for such quarter shall reflect any change in generally accepted accounting
principles from those referred to in Section 1.03 that shall have the effect of
changing the information presented in the financial statements accompanying such
certificate from what such information would have been if presented in
accordance with the generally accepted accounting principles referred to in
Section 1.03, a statement describing the nature of such change; provided that no
such statement shall be required to the extent (A) such description is set forth
in such financial statements or the notes thereto or (B) a statement with
respect to such change shall have been delivered in connection with the delivery
of, or disclosed in, financial statements under Section 5.03 (a), (b) or (e) for
any prior fiscal period;
(b) within 120 days after the end of each fiscal year of
Parent, a copy of the annual report for such year for Parent and its
consolidated Subsidiaries containing financial statements for such year reported
on by nationally recognized independent public accountants acceptable to the
Lenders, accompanied by (i) a report signed by said accountants stating that
such financial statements have been prepared in accordance with GAAP then in
effect and (ii) a letter from such accountants stating that in making the
investigations necessary for such report they obtained no knowledge, except as
specifically stated therein, of any Event of Default which is continuing
hereunder or of any event not theretofore remedied which with notice or lapse of
time or both would constitute such an Event of Default (which letter may be
limited in form, scope and substance to the extent required by applicable
accounting rules or guidelines in effect from time to time);
(c) within 120 days after the close of Parent's fiscal
years, a certificate of the chief financial officer of Parent stating (i)
whether or not such officer has
62
knowledge of the occurrence of any Event of Default which is continuing
hereunder or of any event not theretofore remedied which with notice or lapse of
time or both would constitute such an Event of Default and, if so, stating in
reasonable detail the facts with respect thereto, (ii) all relevant facts in
reasonable detail to evidence, and the computations as to, whether or not Parent
is in compliance with the requirements set forth in subsection (b) of Section
5.02, (iii) a listing of all Material Subsidiaries and consolidated Subsidiaries
of Parent showing the extent of its direct and indirect holdings of their Equity
Interests and (iv) if the financial statements for such fiscal year shall
reflect any change in generally accepted accounting principles from those
referred to in Section 1.03 that shall have the effect of changing the
information presented in the financial statements accompanying such certificate
from what such information would have been if presented in accordance with the
generally accepted accounting principles referred to in Section 1.03, a
statement describing the nature of such change; provided that no such statement
shall be required to the extent (A) such description is set forth in such
financial statements or the notes thereto or (B) a statement with respect to
such change shall have been delivered in connection with the delivery of, or
disclosed in, financial statements under Section 5.03 (a), (b) or (e) for any
prior fiscal period;
(d) promptly upon their distribution, copies of all
financial statements, reports and proxy statements which the Parent or any
Material Subsidiary shall have sent to its public Equity Interest holders;
(e) promptly upon their becoming publicly available, all
regular and periodic financial reports and registration statements which either
Borrower or any Material Subsidiary shall file with the Securities and Exchange
Commission or any national securities exchange other than registration
statements relating to employee benefit plans and to registration statements of
securities for selling security holders;
(f) promptly after Parent has had a reasonable
opportunity to preliminarily evaluate the same, written notice of all litigation
and of all proceedings before any governmental or regulatory agencies against or
involving Parent or any Material Subsidiary, except any litigation or proceeding
which in the reasonable judgment of Parent (taking into account the exhaustion
of all appeals) is not likely to have a material adverse effect on the
consolidated financial condition of Parent and its consolidated Subsidiaries
taken as a whole, which notice may be effected by delivery, in accordance with
applicable securities laws, of reports and statements referred to in clause (a),
(b) or (e) above;
(g) within three Business Days after an executive officer
of either Borrower or Parent obtains knowledge of the occurrence of any Event of
Default which is continuing or of any event not theretofore remedied which with
notice or lapse of time, or both, would constitute an Event of Default, notice
of such occurrence together with a detailed statement by a responsible officer
of such Borrower or Parent of the steps being taken by such Borrower, Parent or
the appropriate Subsidiary to cure the effect of such event;
(h) as soon as practicable and in any event (i) within 30
days after Parent or any ERISA Affiliate knows or has reason to know that any
Termination Event described in clause (i) of the definition of Termination Event
with respect to any Plan has occurred and (ii) within 10 days after Parent or
any ERISA Affiliate knows or has reason
63
to know that any other Termination Event with respect to any Plan has occurred,
a statement of the chief financial officer of Parent describing such Termination
Event and the action, if any, which Parent or such ERISA Affiliate proposes to
take with respect thereto;
(i) promptly and in any event within two Business Days
after receipt thereof by Parent or any ERISA Affiliate, copies of each notice
received by Parent or any ERISA Affiliate from the PBGC stating its intention to
terminate any Plan or to have a trustee appointed to administer any Plan;
(j) promptly and in any event within 30 days after the
filing thereof with the Internal Revenue Service, copies of each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) with respect to
each Plan;
(k) promptly and in any event within five Business Days
after receipt thereof by Parent or any ERISA Affiliate from the sponsor of a
Multiemployer Plan, a copy of each notice received by Parent or any ERISA
Affiliate concerning (i) the imposition of Withdrawal Liability by a
Multiemployer Plan, (ii) the determination that a Multiemployer Plan is, or is
expected to be, in reorganization within the meaning of Title IV of ERISA, (iii)
the termination of a Multiemployer Plan within the meaning of Title IV of ERISA,
or (iv) the amount of liability incurred, or expected to be incurred, by Parent
or any ERISA Affiliate in connection with any event described in clause (i),
(ii) or (iii) above; and
(l) as soon as practicable but in any event within 60
days of any notice of request therefor, such other information respecting the
financial condition and results of operations of Parent or any Subsidiary as any
Lender through the Administrative Agent may from time to time reasonably
request.
Each balance sheet and other financial statement furnished
pursuant to subsections (a) and (b) of this Section 5.03 shall contain
comparative information which conforms to the presentation required in Form 10-Q
and Form 10-K, as appropriate, under the Securities Exchange Act of 1934, as
amended.
ARTICLE 6
EVENTS OF DEFAULT
SECTION 6.01 EVENTS OF DEFAULT. If any of the following events
("EVENTS OF DEFAULT") shall occur and be continuing:
(a) Either Borrower shall fail to pay any principal of
any Advance within two Business Days after the same shall be due, or any
interest on any Advance or any other amount payable hereunder within five
Business Days after the same shall be due; or
(b) Any representation or warranty made or deemed made by
either Borrower or Parent herein or by either Borrower or Parent (or any of its
officers) in connection with this Agreement shall prove to have been incorrect
in any material respect when made or deemed made; or
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(c) Either Borrower or Parent shall fail to perform or
observe any other term, covenant or agreement contained in this Agreement on its
part to be performed or observed and any such failure shall remain unremedied
for 30 days after written notice thereof shall have been given to the Borrowers
or Parent by the Administrative Agent or by any Lender with a copy to the
Administrative Agent; or
(d) Parent or any Material Subsidiary of Parent shall
fail to pay any Debt or Guaranty (excluding any Advances) of either Borrower,
Parent or such Subsidiary (as the case may be) in an aggregate principal amount
in excess of the greater of (i) U.S.$100,000,000 and (ii) 3% of Consolidated
Tangible Net Worth at such time, or any installment of principal thereof or
interest or premium thereon, when due (whether by scheduled maturity, required
prepayment, acceleration, demand or otherwise) and such failure shall continue
after the applicable grace period, if any, specified in the agreement or
instrument relating to such Debt or Guaranty; or any other default under any
agreement or instrument relating to any such Debt, or any other event, shall
occur and shall continue after the applicable grace period, if any, specified in
such agreement or instrument, if the effect of such default or event is to
accelerate the maturity of such Debt; provided that, notwithstanding any
provision contained in this subsection (d) to the contrary, to the extent that
pursuant to the terms of any agreement or instrument relating to any Debt
referred to in this subsection (d), any sale, pledge or disposal of Margin
Stock, or utilization of the proceeds thereof would result in a breach of any
covenant contained therein or otherwise give rise to a default or event of
default thereunder and/or acceleration of the maturity of the Debt extended
pursuant thereto and as a result of such terms or of such sale, pledge,
disposal, utilization, breach, default, event of default or acceleration, or the
provisions hereof relating thereto, this Agreement or any Advance hereunder
would otherwise be subject to margin requirements or any other restriction under
Regulation U issued by the Board of Governors of the United States Federal
Reserve System, then such breach, default, event of default or acceleration
shall not constitute a default or Event of Default under this subsection (d); or
(e) (i) Parent or any Material Subsidiary shall (A)
generally not pay its debts as such debts become due; or (B) admit in writing
its inability to pay its debts generally; or (C) make a general assignment for
the benefit of creditors; or (ii) any proceeding shall be instituted or
consented to by Parent or any such Material Subsidiary seeking to adjudicate it
a bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, or other similar official for it or for any substantial part
of its property; or (iii) any such proceeding shall have been instituted against
either Borrower, Parent or any such Subsidiary and either such proceeding shall
not be stayed or dismissed for 60 consecutive days or any of the actions
referred to above sought in such proceeding (including the entry of an order for
relief against it or the appointment of a receiver, trustee, custodian or other
similar official for it or any substantial part of its property) shall occur; or
(iv) either Borrower, Parent or any such Subsidiary shall take any corporate
action to authorize any of the actions set forth above in this subsection (e);
or
(f) Any judgment or order for the payment of money in
excess the greater of (i) U.S.$100,000,000 and (ii) 3% of Consolidated Tangible
Net Worth at such time shall be rendered against Parent or any Material
Subsidiary and either
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(i) enforcement proceedings shall have been commenced and are continuing or have
been completed by any creditor upon such judgment or order (other than any
enforcement proceedings consisting of the mere obtaining and filing of a
judgment lien or obtaining of a garnishment or similar order so long as no
foreclosure, levy or similar process in respect of such lien, or payment over in
respect of such garnishment or similar order, has commenced and is continuing or
has been completed) or (ii) there shall be any period of 30 consecutive days
during which a stay of execution or enforcement proceedings (other than those
referred to in the parenthesis in clause (i) above) in respect of such judgment
or order, by reason of a pending appeal, bonding or otherwise, shall not be in
effect; or
(g) Any Termination Event with respect to a Material Plan
shall have occurred and, 30 days after notice thereof shall have been given to
Parent by the Lender, (i) such Termination Event shall still exist and (ii) the
sum (determined as of the date of occurrence of such Termination Event) of the
Insufficiency of such Plan and the Insufficiency of any and all other Plans with
respect to which a Termination Event shall have occurred and then exist (or in
the case of a Plan with respect to which a Termination Event described in clause
(ii) of the definition of Termination Event shall have occurred and then exist,
the liability related thereto), in each case in respect of which Parent or any
ERISA Affiliate has liability, is equal to or greater than U.S.$50,000,000; or
(h) Parent or any ERISA Affiliate shall have been
notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal
Liability to such Multiemployer Plan in an amount which, when aggregated with
all other amounts required to be paid to Multiemployer Plans in connection with
Withdrawal Liabilities (determined as of the date of such notification), exceeds
U.S.$50,000,000; or
(i) Parent or any ERISA Affiliate shall have been
notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is
in reorganization or is being terminated, within the meaning of Title IV of
ERISA, if as a result of such reorganization or termination the aggregate annual
contributions of Parent and its ERISA Affiliates to all Multiemployer Plans
which are then in reorganization or being terminated have been or will be
increased over the amounts contributed to such Multiemployer Plans for the
respective plan years which include the Original Effective Date by an amount
exceeding U.S.$50,000,000; or
(j) Upon completion of, and pursuant to, a transaction,
or a series of transactions (which may include prior acquisitions of capital
stock of Parent in the open market or otherwise), involving a tender offer (i) a
"person" (within the meaning of Section 13(d) of the Securities Exchange Act of
1934) other than Parent, a Subsidiary of Parent or any employee benefit plan
maintained for employees of Parent and/or any of its respective Subsidiaries or
the trustee therefor, shall have acquired direct or indirect ownership of and
paid for in excess of 50% of the outstanding capital stock of Parent entitled to
vote in elections for directors of Parent and (ii) at any time before the later
of (x) six months after the completion of such tender offer and (y) the next
annual meeting of the shareholders of Parent following the completion of such
tender offer more than half of the directors of Parent consists of individuals
who (a) were not directors before the completion of such tender offer and (b)
were not appointed, elected or nominated by the Board of Directors in office
prior to the completion of such tender offer (other than any such appointment,
election or nomination required or agreed to in connection with, or as a result
of, the completion of such tender offer); or
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(k) Either Borrower ceases to be a direct or indirect
wholly-owned Subsidiary of the Parent; or
(l) The Guaranty of Parent hereunder shall not be (or
shall be claimed by Parent, either Borrower or any Subsidiary of Parent not to
be) valid or in full force and effect; provided that if within one Business Day
after the Borrowers or Parent receive notice from the Administrative Agent or
otherwise becomes aware that such Guaranty is not valid or in full force and
effect, Parent delivers written notice to the Administrative Agent that it
intends to deliver a valid and effective Guaranty, or to reinstate such
Guaranty, as soon as possible, then an Event of Default shall not exist pursuant
this Section 6.01(l) unless Parent shall fail to deliver or reinstate a Guaranty
having substantially the same effect as the Guaranty set forth in Article 8
within four Business Days after the delivery of such written notice of intent.
(m) Any "Event of Default" as defined in the U.S.
Short-Term Revolving Credit Agreement or the U.S. Long-Term Revolving Credit
Agreement shall occur and be continuing;
then, and in any such event, the Administrative Agent shall at
the request, or may with the consent, of the Majority Lenders, by notice to the
Borrowers and Parent, (i) declare the obligation of each Lender to make Advances
to be terminated, whereupon the same shall forthwith terminate, and (ii) declare
the Advances, all interest thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Advances, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Borrowers and Parent; provided, however, that
if an Event of Default under subsection (e) of this Section 6.01 (except under
clause (i)(A) thereof) shall occur, (A) the obligation of each Lender to make
Advances shall automatically be terminated and (B) the Advances, all interest
thereon and all other amounts payable under this Agreement shall automatically
become and be forthwith due and payable, without presentment, demand, protest or
any notice of any kind, all of which are hereby expressly waived by the
Borrowers and Parent.
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ARTICLE 7
THE ADMINISTRATIVE AGENT
SECTION 7.01 AUTHORIZATION AND ACTION. Each Lender hereby
appoints and authorizes the Administrative Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement as are delegated to
the Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. As to any matters not expressly provided for by
this Agreement (including enforcement of this Agreement or collection of the
Notes), the Administrative Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from
acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Majority Lenders, and such instructions shall be
binding upon all Lenders and all holders of Notes; provided, however, that the
Administrative Agent shall not be required to take any action which exposes the
Administrative Agent to personal liability or which is contrary to this
Agreement or applicable law. The Administrative Agent agrees to give to each
Lender prompt notice of each notice given to it by the Borrowers pursuant to the
terms of this Agreement. Nothing in this Agreement shall impose upon any
Co-Syndication Agent or Co-Documentation Agent, in its capacity as such, any
duty or liability whatsoever.
SECTION 7.02 ADMINISTRATIVE AGENT'S RELIANCE, ETC. Neither the
Administrative Agent nor any of its directors, officers, agents or employees
shall be liable for any action taken or omitted to be taken by it or them under
or in connection with this Agreement, except for its or their own gross
negligence or willful misconduct. Without limitation of the generality of the
foregoing, the Administrative Agent: (i) may treat the payee of any Note as the
holder thereof until the Administrative Agent receives and accepts an Assignment
and Acceptance entered into by the Lender which is the payee of such Note, as
assignor, and an Eligible Assignee, as assignee, as provided in Section 9.07;
(ii) may consult with legal counsel (including counsel for the Borrowers and
Parent), independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken in good faith by
it in accordance with the advice of such counsel, accountants or experts; (iii)
makes no warranty or representation to any Lender and shall not be responsible
to any Lender for any statements, warranties or representations (whether written
or oral) made in or in connection with this Agreement; (iv) shall not have any
duty to ascertain or to inquire as to the performance or observance of any of
the terms, covenants or conditions of this Agreement on the part of the
Borrowers and Parent or to inspect the property (including the books and
records) of the Borrowers or Parent; (v) shall not be responsible to any Lender
for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto; and (vi) shall incur no liability under or in respect
of this Agreement by acting upon any notice, consent, certificate or other
instrument or writing (which may be by facsimile, electronic mail, telegram,
telecopy, cable or telex) believed by it to be genuine and signed or sent by the
proper party or parties.
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SECTION 7.03 ADMINISTRATIVE AGENT AND AFFILIATES. With respect
to its Commitments, the Advances made by it and the Notes issued to it, the
Administrative Agent shall have the same rights and powers under this Agreement
as any other Lender and may exercise the same as though it were not the
Administrative Agent; and the term "Lender" or "Lenders" shall, unless otherwise
expressly indicated, include the Administrative Agent in its individual
capacity. The Administrative Agent and its Affiliates may accept deposits from,
lend money to, act as trustee under indentures of, and generally engage in any
kind of business with, Parent, the Borrowers, any of their Subsidiaries, and any
Person who may do business with or own securities of Parent, the Borrowers or
any of their Subsidiaries, all as if the Administrative Agent were not the
Administrative Agent and without any duty to account therefor to the other
Lenders.
SECTION 7.04 LENDER CREDIT DECISION. Each Lender acknowledges
that it has, independently and without reliance upon the Administrative Agent or
any other Lender and based on the financial statements referred to in Section
4.01 and such other documents and information as it has deemed appropriate, made
its own credit analysis and decision to enter into this Agreement. Each Lender
also acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement.
SECTION 7.05 INDEMNIFICATION. THE LENDERS AGREE TO INDEMNIFY
THE ADMINISTRATIVE AGENT (TO THE EXTENT NOT REIMBURSED BY THE BORROWERS OR
PARENT), RATABLY ACCORDING TO THE RESPECTIVE PRINCIPAL AMOUNTS OF THE ADVANCES
THEN HELD BY EACH OF THEM (OR IF NO ADVANCES ARE AT THE TIME OUTSTANDING OR IF
ANY ADVANCES ARE HELD BY PERSONS WHICH ARE NOT LENDERS, RATABLY ACCORDING TO THE
RESPECTIVE AMOUNTS OF THEIR COMMITMENTS OR THE RESPECTIVE AMOUNTS OF THEIR
COMMITMENTS IMMEDIATELY PRIOR TO TERMINATION IF THE COMMITMENTS HAVE BEEN
TERMINATED), FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES,
DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES AND DISBURSEMENTS
OF ANY KIND OR NATURE WHATSOEVER WHICH MAY BE IMPOSED ON, INCURRED BY, OR
ASSERTED AGAINST THE ADMINISTRATIVE AGENT IN ANY WAY RELATING TO OR ARISING OUT
OF THIS AGREEMENT, ANY OF THE NOTES OR ANY OTHER FINANCING DOCUMENT OR OTHER
INSTRUMENT OR DOCUMENT FURNISHED PURSUANT HERETO OR IN CONNECTION HEREWITH, OR
ANY ACTION TAKEN OR OMITTED BY THE ADMINISTRATIVE AGENT UNDER THIS AGREEMENT, OR
ANY OF THE NOTES OR ANY OTHER FINANCING DOCUMENT OR OTHER INSTRUMENT OR DOCUMENT
FURNISHED PURSUANT HERETO OR IN CONNECTION HEREWITH; PROVIDED THAT NO LENDER
SHALL BE LIABLE FOR ANY PORTION OF SUCH LIABILITIES, OBLIGATIONS, LOSSES,
DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES OR DISBURSEMENTS
RESULTING FROM THE ADMINISTRATIVE AGENT'S GROSS NEGLIGENCE OR WILFUL MISCONDUCT.
Without limitation of the foregoing, each Lender agrees to
reimburse the Administrative Agent promptly upon demand for such Lender's
ratable share of any
69
reasonable out-of-pocket expenses (including counsel fees) incurred by the
Administrative Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings, in bankruptcy or insolvency proceedings, or
otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement, any of the Notes or any other instrument or document furnished
pursuant hereto or in connection herewith to the extent that the Administrative
Agent acts in its capacity as Administrative Agent and is not reimbursed for
such expenses by the Borrowers or Parent.
SECTION 7.06 SUCCESSOR ADMINISTRATIVE AGENT. The
Administrative Agent may resign at any time by giving written notice thereof to
the Lenders, the Borrowers and Parent and may be removed at any time with or
without cause by the Majority Lenders. Upon any such resignation or removal, the
Majority Lenders shall have the right to appoint a successor Administrative
Agent. If no successor Administrative Agent shall have been so appointed by the
Majority Lenders, and shall have accepted such appointment, within 30 days after
the retiring Administrative Agent's giving of notice of resignation or the
Majority Lenders' removal of the retiring Administrative Agent, then such
retiring Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent, which shall be a bank organized, or authorized to conduct
a banking business, under the federal laws of Canada and having a combined
capital and surplus of at least U.S.$500,000,000. Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative
Agent, such successor Administrative Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged
from its duties and obligations under this Agreement. After any retiring
Administrative Agent's resignation or removal hereunder as Administrative Agent,
the provisions of this Article 7 shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Administrative Agent under this
Agreement.
ARTICLE 8
GUARANTY
In order to induce the Lenders to extend credit hereunder, (i)
each of Parent and BRCL hereby irrevocably and unconditionally guarantees the
Obligations of Canadian Hunter, and (ii) each of Parent and Canadian Hunter
hereby irrevocably and unconditionally guarantees the Obligations of BRCL. Each
Guarantor agrees that the Guaranteed Parties may make a claim under its
guarantee immediately upon the occurrence of an Event of Default or at any time
thereafter, but (other than in the case of an Event of Default in respect of
either Borrower under Section 6.01(e) (except clause (i)(A) thereof)) following
the making of a demand on the applicable Borrower for payment or performance, as
applicable, without any obligation to first seek any other remedy or take any
other action against such Borrower. Each Guarantor 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 Guaranty hereunder notwithstanding any such extension or renewal
of any Obligation. Each and every default in payment of the principal of and
premium, if any, or interest on any Obligation shall give rise to a separate
cause of action hereunder, and separate suits may be brought hereunder as each
cause of action arises.
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Each Guarantor waives presentment to, demand of payment from
and protest to the applicable Borrower of any of the Obligations of such
Borrower, and also waives notice of acceptance of its obligations and notice of
protest for nonpayment. The obligations of each Guarantor hereunder shall not be
affected by (a) the failure of any Guaranteed Party to assert any claim or
demand or to enforce any right or remedy against any Borrower or Parent under
the provisions of this Agreement, any other Financing Document or otherwise; (b)
any extension or renewal of any of the Obligations; (c) any rescission, waiver,
amendment or modification of, or release from, any of the terms or provisions of
this Agreement or any other Financing Document or agreement; (d) the failure or
delay of any Guaranteed Party to exercise any right or remedy against any other
guarantor of the Obligations; (e) the failure of any Guaranteed Party to assert
any claim or demand or to enforce any remedy under any Financing Document, any
guaranty or any other agreement or instrument; (f) any default, failure or
delay, wilful or otherwise, in the performance of the Obligations; or (h) any
other act, omission or delay to do any other act which may or might in any
manner or to any extent vary the risk of any Guarantor or otherwise operate as a
discharge of any Guarantor as a matter of law or equity or which would impair or
eliminate any right of any Guarantor to subrogation.
Each Guarantor further agrees that its agreement hereunder
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 Guaranteed Party
to any balance of any deposit account or credit on the books of any Guaranteed
Party in favor of the applicable Borrower or any other Person.
The obligations of the Guarantors hereunder 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.
Each Guarantor further agrees that its obligations hereunder
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 any Guaranteed Party upon the bankruptcy or
reorganization of the applicable Borrower or otherwise.
In furtherance of the foregoing and not in limitation of any
other right which any Guaranteed Party may have at law or in equity against any
Guarantor by virtue hereof, upon the failure of the applicable Borrower to pay
any Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, Parent and (a) BRCL (in
the event such Obligation is due and payable by Canadian Hunter) or (b) Canadian
Hunter (in the event such Obligation is due and payable by BRCL), hereby, in
their respective capacity as Guarantor, promise to and will, upon receipt of
written demand by the Administrative Agent, forthwith pay, or cause to be paid,
to the Administrative Agent for distribution to the Guaranteed Parties in cash
an amount equal to the sum of (i) the unpaid principal amount of such
Obligations then due, (ii) accrued and unpaid interest and fees on such
Obligations and (iii) all other monetary Obligations then due. Each Guarantor,
as applicable, further agrees that if payment in respect of any Obligation shall
be due in a currency other than Cdn. Dollars and/or at a place of payment other
than Toronto, Ontario and if, by reason of any Change in Law,
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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 judgment of any Guaranteed Party, not
consistent with the protection of its rights or interests, then, at the election
of such Guaranteed Party, each Guarantor, as applicable, shall make payment of
such Obligation in Cdn. Dollars (based upon the applicable Exchange Rate in
effect on the date of payment) and/or in Xxxxxxx, Xxxxxxx, and shall indemnify
such Guaranteed Party against any losses or expenses that it shall sustain as a
result of such alternative payment.
Upon payment in full by a Guarantor of any Obligation of the
applicable Borrower, each Lender shall, in a reasonable manner, assign the
amount of such Obligation owed to it and so paid to such Guarantor, such
assignment to be pro tanto to the extent to which the Obligation in question was
discharged by such Guarantor, or make such disposition thereof as such
Guarantor, as applicable, shall direct (all without recourse to any Guaranteed
Party and without any representation or warranty by any Guaranteed Party).
Upon payment by any Guarantor of any sums as provided above,
all rights of such Guarantor against the applicable Borrower 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 Borrower to the Guaranteed Parties.
Nothing shall discharge or satisfy the liability of any
Guarantor hereunder except the full performance and payment of the Obligations.
Each reference herein to any Guaranteed Party shall be deemed
to include their or its successors and assigns, in whose favor the provisions of
this Guaranty shall also inure.
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ARTICLE 9
MISCELLANEOUS
SECTION 9.01 AMENDMENTS, ETC. An amendment or waiver of any
provision of this Agreement, the Notes or any other Financing Document, or a
consent to any departure by the Borrowers therefrom, shall be effective against
the Lenders and all holders of the Notes if, but only if, it shall be in writing
and signed or consented to in writing by the Majority Lenders or, where so
specified, the Required Lenders (except any amendment to give effect to
increased Commitments and New Lenders, as contemplated by Section 2.20), and
then such a waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given; provided, however, that no such
amendment, waiver or consent shall, unless in writing and signed by all the
Lenders, be effective to: (a) waive any of the conditions specified in Article
3, (b) except as contemplated by Section 2.20, increase the Commitments of the
Lenders or subject the Lenders to any additional obligations, (c) reduce the
principal of, or interest on, the Advances or any facility fees or utilization
fees hereunder, (d) except as contemplated by Section 2.21, postpone any date
fixed for any payment of principal of, or interest on, the Advances or any
facility fees or utilization fees hereunder, (e) change the percentage of the
Commitments or of the aggregate unpaid principal amount of the Advances, which
shall be required for the Lenders or any of them to take any action under this
Agreement, (f) amend, waive or otherwise change Article VIII or this Section
9.01, or (g) waive any Event of Default pursuant to Section 6.01(l); and,
provided further that no amendment, waiver or consent shall, unless in writing
and signed by the Administrative Agent in addition to the Lenders required
herein above to take such action, affect the rights or duties of the
Administrative Agent under this Agreement or any Note.
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SECTION 9.02 NOTICES, ETC. (a) Except as otherwise provided in
Section 2.02(a) or 2.10(ii), all notices and other communications provided for
hereunder shall be in writing and mailed by registered mail, return receipt
requested and postage prepaid, or telecopied, sent by facsimile or otherwise
teletransmitted, or delivered, if to BRCL, c/o Burlington Resources Inc. at 0000
Xxxxxxxxxx, Xxxxx 0000, Xxxxxxx, Xxxxx 00000, Attention: Treasurer, Facsimile:
(000) 000-0000 with a copy to Burlington Resources Canada Ltd. 3700, 000 0xx
Xxxxxx X.X., Xxxxxxx, Xxxxxxx, Xxxxxx X0X0X0, Attention: Xxxx Xxxxxxx,
Facsimile: (000) 000-0000 ; if to Canadian Hunter, c/o Burlington Resources Inc.
at 0000 Xxxxxxxxxx, Xxxxx 0000, Xxxxxxx, Xxxxx 00000, Attention: Treasurer,
Facsimile: (000) 000-0000 with a copy to Burlington Resources Canada (Hunter)
Ltd. 3700, 000 0xx Xxxxxx X.X., Xxxxxxx, Xxxxxxx, Xxxxxx X0X0X0, Attention: Xxxx
Xxxxxxx, Facsimile: (000) 000-0000; if to Parent, Burlington Resources Inc. at
0000 Xxxxxxxxxx, Xxxxx 0000, Xxxxxxx, Xxxxx 00000, Attention: Treasurer,
Facsimile: (000) 000-0000; if to any Initial Lender, at its Applicable Lending
Office set forth in such Initial Lender's Administrative Questionnaire; if to
any other Lender at its Applicable Lending Office specified in the Assignment
and Acceptance or Commitment Increase Agreement pursuant to which it became a
Lender; if to the Administrative Agent, in care of JPMorgan Chase Bank, Toronto
Branch, 000 Xxx Xxxxxx, Xxxxx 0000, Royal Bank Plaza, South Tower, Toronto,
Ontario, M5J 2J2, Attention: Xxxxxx Staff, Telefax: (000) 000-0000, with a copy
to JPMorgan Chase Bank, at 000 Xxxxxx Xxxxxx, 00xx Xxxxx, Xxxxxxx, XX 00000,
Attention: Xxxxxxx Xxxxxxx, Telefax: (000) 000-0000; or, as to each party, at
such other address as shall be designated by such party in a written notice to
the other parties.
(b) All such notices and communications shall be effective,
(i) in the case of any notice or communication given by certified mail, when
receipted for, (ii) in the case of any notice or communication given by
telecopy, telefax or other teletransmission, when confirmed by appropriate
answerback, in each case addressed as aforesaid, (iii) in the case of any notice
or communication delivered by hand or courier, when so delivered and (iv) in the
case of any report, notice or information referred to in Section 9.02(c), when
posted with posting confirmed by electronic correspondence, or otherwise deemed
delivered pursuant to procedures approved by the Administrative Agent, except
that notices and communications to the Administrative Agent pursuant to Article
2 or 7 shall not be effective until received by the Administrative Agent. A
notice received by the Administrative Agent or a Lender by telephone pursuant to
Section 2.02(a) or 2.10(a)(ii) shall be effective if the Administrative Agent or
Lender believes in good faith that it was given by an authorized representative
of the Borrower and acts pursuant thereto, notwithstanding the absence of
written confirmation or any contradictory provision thereof.
74
(c) Reports, notices, and information required to be delivered
pursuant to Section 5.03 shall be deemed to have been delivered if such reports,
notices, and information (or, in the case of any information, one or more annual
or quarterly reports containing such information) shall have been posted by the
Administrative Agent on an IntraLinks or similar site to which the Lenders have
been granted access or shall be available on the website of the Securities and
Exchange Commission at xxxx://xxx.xxx.xxx (and, in each case, a confirming
electronic correspondence shall have been delivered or caused to be delivered
providing notice of such posting or availability); provided that the Borrower
shall deliver paper copies of such information to any Lender that requests such
delivery. Reports, notices and information required to be delivered pursuant to
Section 5.03 may also be delivered by electronic communications pursuant to
procedures approved by the Administrative Agent. Categories of reports, notices
and information approved by the Administrative Agent may be given by e-mail
pursuant to procedures approved by the Administrative Agent.
SECTION 9.03 NO WAIVER; REMEDIES. No failure on the part of
any Lender or the Administrative Agent to exercise, and no delay in exercising,
any right hereunder or under any Note shall operate as a waiver thereof; nor
shall any single or partial exercise of any right hereunder or under any Note
preclude any other or further exercise thereof or the exercise of any other
right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.
SECTION 9.04 COSTS AND EXPENSES; INDEMNITY.
(a) Each Borrower agrees to pay on demand (i) all
reasonable fees and out-of-pocket expenses of counsel for the Administrative
Agent and the Arranger in connection with the preparation, execution and
delivery of this Agreement, the Notes and the other Financing Documents to be
delivered hereunder and with respect to advising the Administrative Agent and
the Arranger as to their respective rights and responsibilities under this
Agreement, (ii) all reasonable costs and expenses incurred by the Administrative
Agent and its Affiliates and the Arranger and their Affiliates in initially
syndicating all or any portion of the Commitments hereunder, including the
related reasonable fees and out-of-pocket expenses of counsel for the
Administrative Agent or its Affiliates and the Arranger and their Affiliates,
travel expenses, duplication and printing costs and courier and postage fees,
and excluding any syndication fees paid to other parties joining the syndicate
and (iii) all out-of-pocket costs and expenses, if any, of the Administrative
Agent and the Arranger and the Lenders (including reasonable counsel fees and
expenses and the allocated costs of in-house counsel), in connection with the
enforcement (whether through negotiations, legal proceedings, in bankruptcy or
insolvency proceedings, or otherwise) of this Agreement, the Notes and the other
Financing Documents to be delivered hereunder and thereunder.
(b) If any payment of principal of, or Continuation of,
any Eurodollar Rate Advance is made by either Borrower to or for the account of
a Lender on any day other than the last day of the Interest Period for such
Advance, as a result of a prepayment pursuant to Section 2.10 or a Continuation
pursuant to Section 2.08(f) or Section 2.09 or due to acceleration of the
maturity of the Advances pursuant to Section 6.01 or due to any other reason
attributable to either Borrower, or if either Borrower shall fail to borrow,
Continue or prepay any Eurodollar Rate Advance on the date specified in any
notice delivered pursuant hereto, the applicable Borrower shall,
75
upon demand by such Lender (with a copy of such demand to the Administrative
Agent), pay to the Administrative Agent for the account of such Lender any
amounts required to compensate such Lender for any additional losses, costs or
expenses which it may reasonably incur as a result of such payment or
Continuation, including any loss (excluding loss of anticipated profits), cost
or expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by any Lender to fund or maintain such Advance.
(c) If any payment of principal of any B/A Advance is
made by either Borrower to or for the account of a Lender on any day other than
the last day of the Interest Period for such Advance, due to acceleration of the
maturity of the Advances pursuant to Section 6.01, or if either Borrower shall
fail to borrow, Continue or prepay any B/A Advance on the date specified in any
notice delivered pursuant hereto, the applicable Borrower shall, upon demand by
such Lender (with a copy of such demand to the Administrative Agent), pay to the
Administrative Agent for the account of such Lender any amounts required to
compensate such Lender for any additional losses, costs or expenses which it may
reasonably incur as a result of such payment, including any loss (excluding loss
of anticipated profits), cost or expense incurred by reason of the liquidation
or reemployment of deposits or other funds acquired by any Lender to fund or
maintain such Advance. It is understood that a defeasance of B/A's under Section
2.10(a) shall not constitute a prepayment.
(d) EACH OF BRCL, CANADIAN HUNTER AND PARENT AGREES TO
INDEMNIFY AND HOLD HARMLESS THE ADMINISTRATIVE AGENT AND EACH LENDER AND THEIR
RESPECTIVE RELATED PERSONS (COLLECTIVELY, THE "INDEMNIFIED PARTIES") FROM AND
AGAINST ANY AND ALL CLAIMS, DAMAGES, LIABILITIES AND EXPENSES (INCLUDING FEES
AND DISBURSEMENTS OF COUNSEL) WHICH MAY BE INCURRED BY OR ASSERTED AGAINST ANY
INDEMNIFIED PARTY IN CONNECTION WITH OR ARISING OUT OF ANY INVESTIGATION,
LITIGATION, OR PROCEEDING (WHETHER OR NOT SUCH INDEMNIFIED PARTY IS PARTY
THERETO) RELATED TO ANY ACQUISITION OR PROPOSED ACQUISITION BY EITHER BORROWER,
OR BY ANY SUBSIDIARY OF EITHER BORROWER, OF ALL OR ANY PORTION OF THE EQUITY
INTERESTS IN, OR SUBSTANTIALLY ALL THE ASSETS OF, ANY PERSON OR ANY USE OR
PROPOSED USE OF THE ADVANCES BY EITHER BORROWER (EXCLUDING ANY CLAIMS, DAMAGES,
LIABILITIES OR EXPENSES INCURRED BY REASON OF THE GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT OF SUCH INDEMNIFIED PARTY OR ANY OF ITS RELATED PERSONS, OR BY REASON
OF ANY USE OR DISCLOSURE BY SUCH INDEMNIFIED PARTY OR ANY OF ITS RELATED PERSONS
OF INFORMATION RELATING TO ANY SUCH ACQUISITION OR PROPOSED ACQUISITION OR ANY
SUCH USE OR PROPOSED USE OF THE ADVANCES).
76
SECTION 9.05 RIGHT OF SET-OFF. Upon the declaration of the
Advances as due and payable pursuant to the provisions of Section 6.01, each
Lender 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 to or for the credit or the
account of either Borrower against any and all of the obligations of such
Borrower now or hereafter existing under this Agreement and any Note held by
such Lender, irrespective of whether or not such Lender shall have made any
demand under this Agreement or such Note and although such obligations may be
unmatured. Each Lender agrees promptly to notify the applicable Borrower after
any such set-off and application made by such Lender, provided that the failure
to give such notice shall not affect the validity of such set-off and
application. The rights of each Lender under this Section 9.05 are in addition
to other rights and remedies (including other rights of set-off) which such
Lender may have.
SECTION 9.06 BINDING EFFECT. This Agreement shall become
effective in accordance with the provisions of Section 3.01, and thereafter
shall be binding upon and inure to the benefit of the Borrowers, Parent, the
Administrative Agent, the Arranger and each Lender and their respective
successors and assigns, except that none of Parent or the Borrowers shall have
the right to assign their rights and obligations hereunder or any interest
herein without the prior written consent of all of the Lenders; provided that
notwithstanding the foregoing either Borrower shall be permitted to transfer its
rights and obligations hereunder to a wholly-owned Subsidiary of Parent (i) if
such Subsidiary is organized and existing under the laws of Canada or any
political subdivision thereof and (ii) the Borrowers guarantee the obligations
of any new Borrower on substantially the terms set forth in Article 8, at which
time BRCL and/or Canadian Hunter, as applicable, shall cease to be a Borrower
hereunder and shall cease to have any liability under this Agreement, the Notes,
if any, or any other Financing Document except under such guarantee and Article
8. Any merger, amalgamation or consolidation in compliance with Section 5.02(d)
of (i) either Borrower with Parent or a wholly-owned Subsidiary of Parent
organized under the laws of Canada or any political subdivision thereof, or (ii)
Parent shall not constitute an assignment for purposes of this Section 9.06.
SECTION 9.07 ASSIGNMENTS AND PARTICIPATIONS.
(a) Each Lender may assign to one or more banks or other
entities all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment, the Advances owing to it and the
Note or Notes held by it); provided, however, that each such assignment shall be
to an Eligible Assignee and the parties to each such assignment shall execute
and deliver to the Administrative Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance, together with any Note or Notes subject
to such assignment and, except in the case of an assignment to a Lender
Affiliate, a processing and recordation fee of Cdn.$3,500, and shall send to the
Borrowers an executed counterpart of such Assignment and Acceptance, and
provided further, however, that (i) except in the case of an assignment to a
Lender Affiliate, each such assignment shall be of a constant, and not a
varying, percentage of all such Lender's rights and obligations under this
Agreement, (ii) the amount of the Commitment of the assigning Lender being
assigned to the assignee pursuant to each such assignment (determined as of the
date of the Assignment and Acceptance with respect to such assignment) must be
equal to or greater than Cdn.$10,000,000, or if less, the entire
77
amount of such assigning Lender's "Commitment" (unless the Borrowers and the
Administrative Agent shall otherwise consent, which consent may be withheld for
any reason) and must be an integral multiple of Cdn.$1,000,000, and (iii) except
in the case of an assignment by a Schedule II Lender to a Lender Affiliate
thereof that is a Schedule III Bank, any assignment to a Lender Affiliate will
not relieve the assigning Lender of its obligation to make Advances hereunder
timely in accordance with the terms hereof in the event such Lender Affiliate
shall fail to do so. Upon the execution, delivery, acceptance and recording of
each Assignment and Acceptance by the parties thereto, from and after the
effective date specified in such Assignment and Acceptance, (x) the assignee
thereunder shall be a party hereto and, subject to clause (iii) above, to the
extent that rights and obligations hereunder have been assigned to it pursuant
to such Assignment and Acceptance, have the rights and obligations of a Lender
hereunder and (y) except in the circumstances contemplated in clause (iii)
above, the Lender assignor thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's rights
and obligations under this Agreement, such Lender shall cease to be a party
hereto, provided, however, such assigning Lender shall retain any claim with
respect to any fee, interest, cost, expense or indemnity which accrues, or
relates to an event that occurs, prior to the date of such assignment pursuant
to Section 2.03, 2.06, 2.12, 2.13, 2.16 or 9.04.
(b) By executing and delivering an Assignment and
Acceptance, each Lender assignor thereunder and the assignee thereunder confirm
to and agree with each other and the other parties hereto as follows: (i) other
than as provided in such Assignment and Acceptance, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto; (ii) such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of the Borrowers or Parent or the performance or observance by the Borrowers or
Parent of any of their respective obligations under this Agreement or any other
instrument or document furnished pursuant hereto; (iii) such assignee confirms
that it has received a copy of this Agreement, together with copies of the
financial statements referred to in Section 4.01 and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Acceptance; (iv) such assignee will,
independently and without reliance upon the Administrative Agent, such assigning
Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (v) such assignee confirms
that it is (subject to approval in writing by the Borrowers and the
Administrative Agent to the extent required) an Eligible Assignee; (vi) such
assignee appoints and authorizes the Administrative Agent to take such action as
agent on its behalf and to exercise such powers under this Agreement as are
delegated to the Administrative Agent by the terms hereof, together with such
powers as are reasonably incidental thereto; and (vii) such assignee agrees that
it will perform in accordance with their terms all of the obligations which by
the terms of this Agreement are required to be performed by it as a Lender.
78
(c) The Administrative Agent shall maintain at its
address referred to in Section 9.02 a copy of each Assignment and Acceptance,
each New Lender Agreement and each Commitment Increase Agreement delivered to
and accepted by it and a register (which register may be in electronic form) for
the recordation of the names and addresses of the Lenders and the Commitment of,
and principal amount of the Advances owing to, each Lender from time to time
(the "REGISTER"). The entries in the Register shall be conclusive and binding
for all purposes, absent manifest error, and the Borrowers, the Administrative
Agent and the Lenders may treat each Person whose name is recorded in the
Register as a Lender hereunder for all purposes of this Agreement. The Register
shall be available for inspection by either Borrower or any Lender at any
reasonable time and from time to time upon reasonable prior notice.
(d) Upon its receipt of an Assignment and Acceptance
executed by an assigning Lender and an assignee representing that it is an
Eligible Assignee, together with any Note or Notes subject to such assignment,
the Administrative Agent shall, if such Assignment and Acceptance has been
completed and is in substantially the form of Exhibit D hereto, (i) accept such
Assignment and Acceptance, (ii) record the information contained therein in the
Register and (iii) give prompt notice thereof to the Borrowers. Within five
Business Days after its receipt of such notice and its receipt of an executed
counterpart of such Assignment and Acceptance, the applicable Borrower, at its
own expense, shall execute and deliver to the Administrative Agent in exchange
for any surrendered Note or Notes new Notes evidencing Advances made to such
Borrower to the order of such Eligible Assignee and, if the assigning Lender has
retained a Commitment hereunder, new Notes to the order of the assigning Lender.
Any such new Note or Notes shall be dated the effective date of such Assignment
and Acceptance and shall otherwise be in substantially the form of Exhibit A
hereto.
(e) Each Lender may sell participations to one or more
banks or other entities in or to all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment, and the
Advances owing to it and the Note or Notes held by it); provided, however, that
(i) such Lender's obligations under this Agreement (including its Commitment to
the Borrowers hereunder) shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations, (iii) such Lender shall remain the holder of any such Note for all
purposes of this Agreement, (iv) the Borrowers, the Administrative Agent and the
other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement, (v)
such Lender shall continue to be able to agree to any modification or amendment
of this Agreement or any waiver hereunder without the consent, approval or vote
of any such participant or group of participants, other than modifications,
amendments and waivers which (A) postpone any date fixed for any payment of, or
reduce any payment of, principal of or interest on such Lender's Advances or any
facility fees or utilization fees payable under this Agreement, or (B) increase
the amount of such Lender's Commitment in a manner which would have the effect
of increasing the amount of a participant's participation, or (C) reduce the
interest rate payable under this Agreement and such Lender's Advances, or (D)
consent to the assignment or the transfer by the Borrowers or Parent of their
respective rights and obligations under the Agreement, and (vi) except as
contemplated by the immediately preceding clause (v), no participant shall be
deemed to be or to have any of the rights or obligations of a "Lender"
hereunder.
79
(f) Any Lender may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
9.07, disclose to the assignee or participant or proposed assignee or
participant, any information relating to the Borrowers furnished to such Lender
by or on behalf of the Borrowers; provided that, prior to any such disclosure,
the assignee or participant or proposed assignee or participant shall agree in
writing for the benefit of the Borrowers to preserve the confidentiality of any
confidential information relating to the Borrowers received by it from such
Lender in a manner consistent with Section 9.08.
(g) Anything in this Agreement to the contrary
notwithstanding, any Lender may at any time create a security interest in all or
any portion of its rights under this Agreement (including the Advances owing to
it) and the Notes, if any, issued to it hereunder in favor of any United States
Federal Reserve Bank in accordance with Regulation A of the Board of Governors
of the Federal Reserve System of the United States (or any successor regulation)
and the applicable operating circular of such Federal Reserve Bank.
SECTION 9.08 CONFIDENTIALITY. (a) Each Lender and the
Administrative Agent (each, a "PARTY") agrees that it will use its best
reasonable efforts not to disclose, without the prior consent of the Borrowers
(other than to its, or its Affiliates, employees, auditors, accountants, counsel
or other representatives, whether existing at the Effective Date or any
subsequent time), any information with respect to the Borrowers or Parent which
is furnished pursuant to this Agreement, provided that any party may disclose
any such information (i) as has become generally available to the public, (ii)
as may be required or appropriate in any report, statement or testimony
submitted to any governmental authority having or claiming to have jurisdiction
over such party, (iii) as may be required or appropriate in response to any
summons or subpoena or in connection with any litigation or regulatory
proceeding, (iv) in order to comply with any law, order, regulation or ruling
applicable to such party, or (v) to any prospective assignee or participant in
connection with any contemplated assignment of any rights or obligations
hereunder or any sale of any participation therein, by such party pursuant to
Section 9.07, if such prospective assignee or participant, as the case may be,
executes an agreement with the Borrowers containing provisions substantially
similar to those contained in this Section 9.08; provided, however, that the
Borrowers and Parent acknowledge that the Administrative Agent has disclosed and
may continue to disclose such information as the Administrative Agent in its
sole discretion determines is appropriate to the Lenders from time to time.
(b) Notwithstanding anything herein to the contrary, any party
subject to confidentiality obligations hereunder (and any employee,
representative or other agent of such party) may disclose to any and all
persons, without limitation of any kind, such party's U.S. federal income tax
treatment and the U.S. federal income tax structure of the transactions
contemplated hereby relating to such party and all materials of any kind
(including opinions or other tax analyses) that are provided to it relating to
such tax treatment and tax structure. However, no disclosure of any information
relating to such tax treatment or tax structure may be made to the extent
nondisclosure is reasonably necessary in order to comply with applicable
securities laws.
SECTION 9.09 CONSENT TO JURISDICTION.
80
(a) Each Borrower and Parent hereby irrevocably and
unconditionally submit itself and its property to the non-exclusive jurisdiction
of the Courts of the Province of Alberta in any action or proceeding by the
Administrative Agent, the Arranger, any Lender or the holder of any Note in
respect of, but only in respect of, any claims or causes of action arising out
of or relating to this Agreement, the Notes or the other Financing Documents
(such claims and causes of action, collectively, being "PERMITTED CLAIMS"), and
each Borrower and Parent hereby irrevocably agrees that all Permitted Claims may
be heard and determined in Alberta. Each Borrower and Parent hereby irrevocably
and unconditionally waives, to the fullest extent it may effectively do so, the
defense of an inconvenient forum to the maintenance of such action or proceeding
in any aforementioned court in respect of Permitted Claims. Service of the
statement of claim and any other process which may be served by the
Administrative Agent, the Arranger, any Lender or the holder of any Note on the
Borrowers or Parent in any such action or proceeding in any aforementioned court
in respect of Permitted Claims may be made by delivering separate copies of such
process to each Borrower and Parent by courier and by registered mail (return
receipt requested), fees and postage prepaid at the address of each Borrower and
Parent specified pursuant to Section 9.02, to the attention of each of the
Treasurer and the Vice President and General Counsel of Parent, or each of the
General Counsel and Assistant Treasurer in the case of the Borrowers. Each
Borrower and Parent 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.
(b) Nothing in this Section 9.09 (i) shall affect the
right of the Arranger, the Borrowers, Parent, any Lender, the holder of any Note
or the Administrative Agent to serve legal process in any other manner permitted
by law or affect any right otherwise existing of the Borrowers, any Lender, the
Arranger, the holder of any Note or the Administrative Agent to bring any action
or proceeding in the courts of other jurisdictions or (ii) shall be deemed to be
a general consent to jurisdiction in any particular court or a general waiver of
any defense or a consent to jurisdiction of the courts expressly referred to in
subsection (a) above in any action or proceeding in respect of any claim or
cause of action other than Permitted Claims.
SECTION 9.10 GOVERNING LAW. This Agreement and the Notes shall
be governed by, and construed in accordance with, the laws of the Province of
Alberta and the federal laws of Canada applicable therein.
SECTION 9.11 EXECUTION IN COUNTERPARTS. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery to the Administrative Agent of a counterpart executed by a
Lender shall constitute delivery of such counterpart to all of the Lenders.
Delivery of an executed counterpart by facsimile shall be as effective as
delivery of a manually executed original counterpart.
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SECTION 9.12 WAIVER OF JURY TRIAL. EACH BORROWER, PARENT, THE
ADMINISTRATIVE AGENT, AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT, ANY OF THE NOTES OR ANY OTHER FINANCING DOCUMENT
OR OTHER INSTRUMENT OR DOCUMENT FURNISHED PURSUANT HERETO OR IN CONNECTION
HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY.
SECTION 9.13 ENTIRE AGREEMENT, ETC.. This Agreement, together
with any other documents executed in connection herewith, express the entire
understanding of the parties with respect to the transactions contemplated
hereby. Neither this Agreement nor any term hereof may be changed, waived,
discharged or terminated, except as provided in Section 9.01.
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IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective officers thereunto duly authorized,
as of the date first above written
BURLINGTON RESOURCES CANADA LTD.
By: /s/ XXXXXX X. XXXX
----------------------------------------
Name: Xxxxxx X. Xxxx
Title: Treasurer
BURLINGTON RESOURCES CANADA (HUNTER) LTD.
By: /s/ XXXXXX X. XXXX
----------------------------------------
Name: Xxxxxx X. Xxxx
Title: Treasurer
BURLINGTON RESOURCES INC.
By: /s/ XXXXXX X. XXXX
----------------------------------------
Name: Xxxxxx X. Xxxx
Title: Vice President & Treasurer
00
XXXXXXXX XXXXX XXXX, XXXXXXX BRANCH, as
Administrative Agent
By: /s/ XXXXXXXXX XXXX
---------------------------------------
Name: Xxxxxxxxx Xxxx
Title: Vice President
JPMORGAN CHASE BANK, TORONTO BRANCH, as Lender
By: /s/ XXXXXXXXX XXXX
---------------------------------------
Name: Xxxxxxxxx Xxxx
Title: Vice President
84
SIGNATURE PAGE TO
BURLINGTON RESOURCES CANADA LTD.,
BURLINGTON RESOURCES CANADA (HUNTER)
LTD. AND BURLINGTON RESOURCES INC.
CANADIAN CREDIT AGREEMENT DATED AS OF
DECEMBER 4, 2003
Name of Institution: BANK OF AMERICA, N.A.
------------------------
CANADA BRANCH
By: /s/ XXXXXX SALES XX XXXXXXX
---------------------------------
Name: Xxxxxx Sales xx Xxxxxxx
Title: Assistant Vice President
Name of Institution: The Bank of New York
By: /s/ XXXXX XXXXXXXX
--------------------------------------
Name: Xxxxx Xxxxxxxx
Title: Vice President
Name of Institution: ABN AMRO BANK N.V., Canada Branch
By: /s/ XXXXXXXX X. XXXXXXX
--------------------------------------
Name: Xxxxxxxx X. Xxxxxxx
Title: Managing Director
By: /s/ XXXXX XXXXX
--------------------------------------
Name: Xxxxx Xxxxx
Title: Director
Name of Institution: The Bank of Nova Scotia
By: /s/ XXX X. XXXXXXXXX
--------------------------------------
Name: Xxx X. Xxxxxxxxx
Title: Director
Name of Institution: The Bank of Tokyo-Mitsubishi, Ltd.
By: /s/ XXXX X. XXXXXX
--------------------------------------
Name: Xxxx X. XxXxxx
Title: V.P. and Manager
Name of Institution: The Bank of Montreal
By: /s/ XXXXX X. XXXXXX
--------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Director
Name of Institution: XXXX XXX, XX, XXXXXX BRANCH
By: /s/ XXXX BEKKEIL
--------------------------------------
Name: Xxxx Bekkeil
Title: Director
Name of Institution: BNP PARIBAS (CANADA)
By: /s/ XXXXXX XXX
--------------------------------------
Name: Xxxxxx Xxx
Title: Assistant Vice President Energy & Project Finance
By: /s/ XXXXXXX XXXXXXX
--------------------------------------
Name: Xxxxxxx Xxxxxxx
Title: Vice President Energy & Project Finance
Name of Institution: BARCLAYS BANK PLC
By: /s/ XXXXXXXX X. XXXX
--------------------------------------
Name: Xxxxxxxx X. Xxxx
Title: Director - Loan Transaction Management
Name of Institution: CITIBANK, N.A. CANADIAN BRANCH
By: /s/ XXXX XXXXXXXX
--------------------------------------
Name: Xxxx Xxxxxxxx
Title: Authorized Signer
Name of Institution: CREDIT SUISSE FIRST BOSTON TORONTO BRANCH
By: /s/ XXXXX XXXXXX By: /s/ XXXXX XXXXXXX
-------------------------------------- -------------------------------
Name: Xxxxx Xxxxxx Name: Xxxxx Xxxxxxx
Title: Director Title: Vice President
Name of Institution: DEUTSCHE BANK AG, CANADA BRANCH
By: /s/ XXXXXX XXXXXXXX
--------------------------------------
Name: Xxxxxx Xxxxxxxx
Title: Vice President
By: /s/ XXX X'XXXX
--------------------------------------
Name: Xxx X'Xxxx
Title: Director
Name of Institution: FLEET NATIONAL BANK
By: /s/
--------------------------------------
Name:
Title:
Name of Institution: MELLON BANK, N.A.
By: /s/ XXXX X. XXXXX
--------------------------------------
Name: Xxxx X. Xxxxx
Title: Chief Administrative Officer
Name of Institution: Xxxxxxx Xxxxx Capital CANADA INC.
By: /s/ XXXXX XXXXXX
--------------------------------------
Name: Xxxxx Xxxxxx
Title: Officer
Name of Institution: XXXXXX XXXXXXX SENIOR FUNDING (NOVA SCOTIA)
By: /s/ JAAP L. TONCKENS
--------------------------------------
Name: Jaap L. Tonckens
Title: Vice President
Name of Institution: ROYAL BANK OF CANADA
By: /s/ XXXXX X. XXXXXXXX
--------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Authorized Signatory
Name of Institution: THE ROYAL BANK OF SCOTLAND PLC
By: /s/ XXXXX XXXXXXX
--------------------------------------
Name: Xxxxx Xxxxxxx
Title: Senior Vice President
Name of Institution: Societe Generale
By: /s/ J. XXXXXXX XXXXXXXX, XX.
--------------------------------------
Name: J. Xxxxxxx XxXxxxxx, Xx.
Title: Manager Director
Name of Institution: SUN TRUST BANK
By: /s/ XXXXX X. XXXXXX
--------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Director
Name of Institution: WACHOVIA BANK, NATIONAL ASSOCIATION
By: /s/ XXXXX XXXXXXXXX
--------------------------------------
Name: Xxxxx Xxxxxxxxx
Title: Vice President
Name of Institution: XXXXX FARGO BANK, N.A.
By: /s/ XXXX X. XXXXXXX
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Name: Xxxx X. Xxxxxxx
Title: Vice President
SCHEDULE I
MATERIAL SUBSIDIARIES OF PARENT
Burlington Resources Canada Ltd.
Burlington Resources Canada (Hunter) Ltd.
The Louisiana Land and Exploration Company
Burlington Resources Oil & Gas Company XX
XXXX GP Inc.
XXXX XX Inc.
Burlington Resources Canada Partnership
SCHEDULE II
PRICING GRID
LEVEL I LEVEL II LEVEL III LEVEL IV LEVEL V LEVEL VI
Basis for If the Parent's If the If the Parent's If the Parent's If the Parent's If Levels I-V
Pricing senior Parent's senior senior senior do not apply.
unsecured senior unsecured long unsecured unsecured long
long term unsecured term debt is long term term debt is
debt is rated long term rated at least debt is rated rated at least
at least A by debt is rated BBB+ by S&P at least BBB BBB- by S&P
S&P or A2 at least A- or Baa1 by by S&P or or Baa3 by
by Xxxxx'x. by S&P or Xxxxx'x. Baa2 by Xxxxx'x.
A3 by Xxxxx'x.
Xxxxx'x.
Facility Fee .080% .100% .125% .150% .200% .250%
Percentage
Applicable .270% .300% .375% .450% .650% .750%
Margin
The applicable pricing level shall change on the date of any relevant change in
the rating by S&P or Xxxxx'x of any public long term senior unsecured debt
securities of the Parent. In the case of split ratings from S&P and Xxxxx'x, the
rating to be used to determine the applicable pricing level is the higher of the
two (e.g., A-/Baa1 results in Level II pricing), provided that in the event the
split is more than one full category, the average (or the higher of two
intermediate ratings) shall be used (e.g., A-/Baa2 results in Level III pricing,
as does A-/Baa3). For the avoidance of doubt, the amount to be paid with respect
to any Acceptance Fee shall be determined on the date of the acceptance of the
applicable B/A, and the Acceptance Fee paid on each date shall not be subject to
adjustment based on a subsequent change in the pricing level.
SCHEDULE III
The Initial Lenders (Canadian Tranche)
Investor Title Commitment
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JPMorgan Chase Bank Administrative Agent CAD$26,734,628.57
Citibank, N.A. Co-Syndication Agent 26,734,628.57
Fleet National Bank Co-Syndication Agent 26,734,628.57
Bank of America, N.A. Co-Documentation Agent 26,734,628.57
Bank of Nova Scotia (The) Co-Documentation Agent 26,734,628.57
Bank of Tokyo-Mitsubishi, Ltd. Co-Agent 19,494,000.00
Barclays Bank plc Co-Agent 19,494,000.00
BNP Paribas Co-Agent 19,494,000.00
Royal Bank of Scotland plc (The) Co-Agent 19,494,000.00
Wachovia Bank, National Association Co-Agent 19,494,000.00
Xxxxxxx Xxxxx Capital Canada Inc. Co-Agent 19,494,000.00
Xxxxxx Xxxxxxx Senior Funding (Nova Scotia) Co-Agent 19,494,000.00
ABN Amro Bank, N.V. Participant 11,139,428.57
Deutsche Bank Participant 11,139,428.57
Bank One, NA Participant 11,139,428.57
Royal Bank of Canada Participant 11,139,428.57
Societe Generale Participant 11,139,428.57
SunTrust Banks Participant 11,139,428.57
Xxxxx Fargo Bank Participant 11,139,428.57
Bank of Montreal Participant 11,139,428.57
Bank of New York (The) Participant 11,139,428.57
Credit Suisse First Boston, Toronto Branch Participant 11,139,428.57
Mellon Bank, N.A. Participant 8,354,571.43
TOTAL: CAD$389,880,000.00
