EXHIBIT 10.45
AMENDED AND RESTATED CREDIT AGREEMENT
AMONG
TEPPCO PARTNERS, L.P.,
AS BORROWER,
SUNTRUST BANK,
AS ADMINISTRATIVE AGENT AND LC ISSUING BANK
AND
CERTAIN LENDERS,
AS LENDERS
DATED AS OF MARCH 28, 2002
$500,000,000 REVOLVING FACILITY
--------------------------------------------------------------------------------
SUNTRUST XXXXXXXX XXXXXXXX CAPITAL MARKETS,
A DIVISION OF SUNTRUST CAPITAL MARKETS, INC.,
AS SOLE LEAD ARRANGER
UBS WARBURG, LLC
AND
FIRST UNION NATIONAL BANK,
AS CO-SYNDICATION AGENTS
BANK ONE, NA
AND
THE BANK OF NOVA SCOTIA,
AS CO-DOCUMENTATION AGENTS
TABLE OF CONTENTS
PAGE
ARTICLE I DEFINITIONS AND TERMS
SECTION 1.1. Definitions......................................................1
SECTION 1.2. Time References.................................................18
SECTION 1.3. Other References................................................18
SECTION 1.4. Accounting Principles...........................................19
ARTICLE II THE COMMITMENTS
SECTION 2.1. Revolving Facility..............................................19
SECTION 2.2. Borrowing Procedure.............................................20
SECTION 2.3. Effect of Requests..............................................21
SECTION 2.4. Termination of the Commitments..................................21
SECTION 2.5. Letters of Credit...............................................21
ARTICLE III PAYMENT TERMS
SECTION 3.1. Notes and Payments..............................................24
SECTION 3.2. Interest and Principal Payments.................................24
SECTION 3.3. Interest Options................................................26
SECTION 3.4. Quotation of Rates..............................................26
SECTION 3.5. Default Rate....................................................26
SECTION 3.6. Interest Recapture..............................................26
SECTION 3.7. Interest and Fee Calculations...................................26
SECTION 3.8. Maximum Rate....................................................27
SECTION 3.9. Interest Periods................................................27
SECTION 3.10. Conversions....................................................28
SECTION 3.11. Order of Application...........................................28
SECTION 3.12. Sharing of Payments, Etc.......................................29
SECTION 3.13. Offset.........................................................29
SECTION 3.14. Booking Borrowings.............................................29
SECTION 3.15. Basis Unavailable or Inadequate for LIBOR Rate.................30
SECTION 3.16. Additional Costs...............................................30
SECTION 3.17. Change in Legal Requirements...................................31
SECTION 3.18. Funding Loss...................................................31
SECTION 3.19. Foreign Lenders, Participants and Assignees....................32
SECTION 3.20. Discharge and Reinstatement....................................32
ARTICLE IV FEES
SECTION 4.1. Treatment of Fees...............................................32
SECTION 4.2. Facility Fee....................................................33
SECTION 4.3. Letter of Credit Fees...........................................33
ARTICLE V CONDITIONS PRECEDENT
ARTICLE VI GUARANTIES
ARTICLE VII REPRESENTATIONS AND WARRANTIES
SECTION 7.1. Purpose.........................................................34
SECTION 7.2. Subsidiaries and Significant Subsidiaries.......................34
SECTION 7.3. Existence, Authority and Good Standing..........................34
SECTION 7.4. Authorization and Contravention.................................35
SECTION 7.5. Binding Effect..................................................35
SECTION 7.6. Current Financials..............................................35
SECTION 7.7. Solvency........................................................35
SECTION 7.8. Litigation......................................................35
SECTION 7.9. Taxes...........................................................36
SECTION 7.10. Compliance with Law and Environmental Matters..................36
SECTION 7.11. Employee Plans.................................................36
SECTION 7.12. Debt...........................................................36
SECTION 7.13. Properties; Liens..............................................36
SECTION 7.14. Governmental Regulations.......................................37
SECTION 7.15. Transactions with Affiliates...................................37
SECTION 7.16. Leases.........................................................37
SECTION 7.17. Labor Matters..................................................37
SECTION 7.18. Intellectual Property..........................................37
SECTION 7.19. Insurance......................................................38
SECTION 7.20. Restrictions on Distributions..................................38
SECTION 7.21. Full Disclosure................................................38
ARTICLE VIII AFFIRMATIVE COVENANTS
SECTION 8.1. Certain Items Furnished.........................................38
SECTION 8.2. Use of Credit...................................................40
SECTION 8.3. Books and Records...............................................40
SECTION 8.4. Inspections.....................................................40
SECTION 8.5. Taxes...........................................................40
SECTION 8.6. Payment of Material Obligations.................................40
SECTION 8.7. Expenses........................................................40
SECTION 8.8. Maintenance of Existence, Assets and Business...................41
SECTION 8.9. Insurance.......................................................41
SECTION 8.10. Environmental Matters..........................................41
SECTION 8.11. Indemnification................................................41
ARTICLE IX NEGATIVE COVENANTS
SECTION 9.1. Debt............................................................43
SECTION 9.2. Prepayments.....................................................43
SECTION 9.3. Liens...........................................................43
SECTION 9.4. Employee Plans..................................................45
SECTION 9.5. Transactions with Affiliates....................................45
SECTION 9.6. Compliance with Legal Requirements and Documents................45
SECTION 9.7. Distributions...................................................46
SECTION 9.8. Disposition of Assets...........................................46
SECTION 9.9. Mergers, Consolidations and Dissolutions........................46
SECTION 9.10. Amendment of Constituent Documents.............................46
SECTION 9.11. Assignment.....................................................46
SECTION 9.12. Fiscal Year and Accounting Methods.............................47
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SECTION 9.13. New Business...................................................47
SECTION 9.14. Government Regulations.........................................47
SECTION 9.15. Senior Notes...................................................47
SECTION 9.16. Strict Compliance..............................................47
SECTION 9.17. Restrictive Agreements.........................................47
ARTICLE X FINANCIAL COVENANTS
SECTION 10.1. Minimum Net Worth..............................................48
SECTION 10.2. Maximum Funded Debt to Pro Forma EBITDA........................48
SECTION 10.3. Fixed Charge Coverage Ratio....................................48
ARTICLE XI EVENTS OF DEFAULT
SECTION 11.1. Payment of Obligations.........................................48
SECTION 11.2. Covenants......................................................48
SECTION 11.3. Debtor Relief..................................................49
SECTION 11.4. Judgments and Attachments......................................49
SECTION 11.5. Government Action..............................................49
SECTION 11.6. Misrepresentation..............................................49
SECTION 11.7. Change of Control..............................................49
SECTION 11.8. Other Debt.....................................................50
SECTION 11.9. FINA/BASF Contracts............................................50
SECTION 11.10. Validity and Enforceability...................................50
SECTION 11.11. Hedging Agreements............................................50
ARTICLE XII RIGHTS AND REMEDIES
SECTION 12.1. Remedies Upon Event of Default.................................51
SECTION 12.2. Company Waivers................................................52
SECTION 12.3. Not in Control.................................................52
SECTION 12.4. Course of Dealing..............................................53
SECTION 12.5. Cumulative Rights..............................................53
SECTION 12.6. Application of Proceeds........................................53
SECTION 12.7. Expenditures by Lenders........................................53
SECTION 12.8. Limitation of Liability........................................53
ARTICLE XIII ADMINISTRATIVE AGENT AND LENDERS
SECTION 13.1. The Administrative Agent.......................................54
SECTION 13.2. Expenses.......................................................55
SECTION 13.3. Proportionate Absorption of Losses.............................56
SECTION 13.4. Delegation of Duties; Reliance.................................56
SECTION 13.5. Limitation of the Administrative Agent's Liability.............56
SECTION 13.6. Event of Default...............................................58
SECTION 13.7. Limitation of Liability........................................58
SECTION 13.8. Other Agents...................................................58
SECTION 13.9. Relationship of Lenders........................................58
SECTION 13.10. Benefits of Agreement.........................................58
ARTICLE XIV MISCELLANEOUS
SECTION 14.1. Nonbusiness Days...............................................58
SECTION 14.2. Communications.................................................59
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SECTION 14.3. Form and Number................................................59
SECTION 14.4. Exceptions.....................................................59
SECTION 14.5. Survival.......................................................59
SECTION 14.6. Governing Law..................................................59
SECTION 14.7. Invalid Provisions.............................................59
SECTION 14.8. Amendments, Supplements, Waivers, Consents and Conflicts.......60
SECTION 14.9. Counterparts...................................................61
SECTION 14.10. Parties.......................................................61
SECTION 14.11. Venue, Service of Process and Jury Trial......................63
SECTION 14.12. Non-Recourse to the General Partner...........................64
SECTION 14.13. Confidentiality...............................................64
SECTION 14.14. Entirety......................................................64
SCHEDULES AND EXHIBITS
Schedule 2 -- Lenders and Commitments
Schedule 5 -- Closing Documents
Schedule 7.2 -- List of Companies and Significant Subsidiaries
Schedule 7.8 -- Litigation
Schedule 7.10 -- Environmental Matters
Schedule 7.11 -- Employee Plan Matters
Schedule 7.12 -- Existing Debt
Schedule 7.13 -- Existing Liens
Schedule 7.15 -- Affiliate Transactions
Schedule 7.20 -- Restrictions on Distributions
Exhibit A -- Form of Note
Exhibit B -- Form of Guaranty
Exhibit C-1 -- Form of Borrowing Request
Exhibit C-2 -- Form of Notice of Conversion
Exhibit C-3 -- Form of Request for Issuance
Exhibit C-4 -- Form of Compliance Certificate
Exhibit D -- Form of Opinion of Counsel
Exhibit E -- Form of Assignment and Assumption Agreement
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1
AMENDED AND RESTATED
CREDIT AGREEMENT
THIS AMENDED AND RESTATED
CREDIT AGREEMENT (this "AGREEMENT") is
entered into as of March 28, 2002, among TEPPCO PARTNERS, L.P., a Delaware
limited partnership (the "BORROWER"), the Lenders (defined below) and SUNTRUST
BANK ("SUNTRUST"), as the Administrative Agent for the Lenders and as the issuer
of Letters of Credit (defined below) (the "LC ISSUING BANK").
The Borrower, the Lenders and SunTrust entered into a
Credit Agreement,
dated as of July 14, 2000, the Amendment thereto, dated as of July 14, 2000 and
the Amendment and Restatement, dated as of April 6, 2001 (as so amended, the
"ORIGINAL
CREDIT AGREEMENT").
The Borrower, the Lenders and SunTrust wish to: (A) amend and restate
the Original
Credit Agreement in its entirety on the terms and subject to the
conditions set forth herein so that the Original
Credit Agreement, as so amended
and restated, reads in its entirety as provided herein; and (B) continue the
indebtedness of the Borrower outstanding under the Original
Credit Agreement and
provide additional financing commitments to the Borrower in the form of a
revolving credit facility not to exceed at any one time outstanding $500,000,000
(as that amount may be reduced or canceled pursuant to this Agreement) to be
used by the Borrower as provided in Section 7.1. The Borrower has further
requested that (1) up to $20,000,000 of the Commitments (as defined herein) be
made available in the form of Letters of Credit issued from time to time by the
LC Issuing Bank at the request and for the account of the Borrower and (2) the
Lenders participate in the Letters of Credit and in the reimbursement
obligations of the Borrower to the LC Issuing Bank. The Lenders are willing to
extend the requested loans and to participate in Letters of Credit and the
Borrower's reimbursement obligations thereunder, and the LC Issuing Bank is
willing to issue Letters of Credit, in each case, on the terms and conditions of
this Agreement.
ACCORDINGLY, for adequate and sufficient consideration, the Borrower,
the Lenders, the LC Issuing Bank and the Administrative Agent agree as follows:
ARTICLE I
DEFINITIONS AND TERMS
SECTION 1.1. DEFINITIONS.
As used in the Credit Documents:
"ACQUISITION" by any Person means any transaction or series of
transactions on or after the date hereof pursuant to which that Person
directly or indirectly, whether in the form of a capital expenditure,
an Investment, a merger, a consolidation or otherwise and whether
through a solicitation of tender of Equity Interests, one or more
negotiated block, market, private or other transactions, or any
combination of the foregoing, purchases (a) all or substantially all of
the business or assets of any other Person or operating division or
business unit of any other Person, or (b) more than 25% of the Equity
Interests in any other Person.
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"ADDITIONAL DEBT" means Funded Debt issued or incurred by any
Company after the date hereof, other than Funded Debt under this
Agreement and Funded Debt (a) that is Permitted Non-Recourse Debt of
any Person used for the purposes described in clause (i) of the
definition of "Permitted Non-Recourse Debt" or (b) the proceeds of
which are used to refinance the Senior Notes, provided that the
principal amount of the refinancing shall not exceed the sum of (i) the
principal amount of, and accrued interest on, the Senior Notes so
refinanced and (ii) reasonable fees and expenses and the premium, if
any, incurred in connection with any such refinancing.
"ADMINISTRATIVE AGENT" means, at any time, SunTrust Bank (or
its successor appointed under Section 13.1), acting as administrative
agent for the Lenders under the Credit Documents.
"AERIE" means Aerie Networks, Inc., a Delaware corporation.
"AERIE LEASES" means (a) the Master Fiber Optics Agreement,
dated September 1, 2000, between Aerie and TE Products, pursuant to
which TE Products has leased to Aerie a portion of TE Product's
pipeline right-of-way for Aerie's installation, construction, operation
and maintenance of a telecommunications network and related facilities,
and (b) the Master Fiber Optics Agreement, dated September 1, 2000,
between Aerie and TEPPCO Crude Pipeline, pursuant to which TEPPCO Crude
Pipeline has leased to Aerie a portion of TEPPCO Crude Pipeline's
pipeline right-of-way for Aerie's installation, construction, operation
and maintenance of a telecommunications network and related facilities,
in each case as amended from time to time.
"AFFILIATE" of a Person means any other individual or entity
that directly or indirectly controls, is controlled by or is under
common control with that Person. For purposes of this definition, (a)
"control", "controlled by" and "under common control with" mean
possession, directly or indirectly, of power to direct or cause the
direction of management or policies (whether through ownership of
voting securities or other interests, by contract or otherwise), and
(b) the General Partner and all of the Companies are Affiliates with
each other.
"AGREEMENT" is defined in the preamble to this Agreement.
"APPLICABLE MARGIN" means, for any Borrowing, (i) on any date
the Utilization Percentage equals or is less than 50%, the number of
basis points set forth below in the columns identified as Xxxxx 0,
Xxxxx 0, Xxxxx 0, Xxxxx 4 or Xxxxx 0, opposite the Base Rate or LIBOR
Rate, as applicable, and (ii) on any date the Utilization Percentage
exceeds 50%, the number of basis points set forth below in the columns
identified as Xxxxx 0, Xxxxx 0, Xxxxx 0, Xxxxx 4 or Xxxxx 0, opposite
the Utilized Base Rate or Utilized LIBOR Rate, as applicable.
3
XXXXX 0 XXXXX 0 XXXXX 0 XXXXX 0 XXXXX 5
REFERENCE REFERENCE REFERENCE
RATING AT RATING AT REFERENCE RATING AT
LEAST A- BY LEAST BBB+ BY RATING AT LEAST LEAST BBB- BY
S&P AND A3 BY S&P AND BAA1 BBB BY S&P AND S&P AND BAA3 REFERENCE RATING
BASIS FOR PRICING XXXXX'X BY XXXXX'X BAA2 BY XXXXX'X BY XXXXX'X LOWER THAN LEVEL 4
---------------- ------------- ------------ --------------- ------------ ----------------
LIBOR Rate 62.5 72.5 85.0 100.0 137.5
Base Rate 0.0 0.0 0.0 0.0 0.0
Utilized LIBOR Rate 72.5 85.0 97.5 115.0 155.0
Utilized Base Rate 10.0 12.5 12.5 15.0 17.5
The Applicable Margin will be based upon the Level corresponding to the
Reference Rating, and the corresponding Utilization Percentage, in each
case in effect at the time of determination. For any LIBOR Rate
Borrowing, the Applicable Margin will be based upon the Level
corresponding to the Reference Rating, and the corresponding
Utilization Percentage, in each case in effect on the initial day of
the Interest Period for such Borrowing. For each Base Rate Borrowing,
the Applicable Margin will be based upon the Level corresponding to the
Reference Rating, and the corresponding Utilization Percentage, in each
case in effect on its Borrowing Date, and each change to such
Applicable Margin for such Borrowing which subsequently results from a
change in the Reference Rating or Utilization Percentage, as the case
may be, shall be effective on the date on which the applicable rating
agency announces the applicable change in ratings or such Utilization
Percentage changes, as the case may be.
"ASSET DISPOSITION" means, with respect to the Borrower or any
Significant Subsidiary, any sale, transfer, conveyance, lease or other
disposition (including by way of merger, consolidation or
sale-leaseback, but excluding any statutory conversion) by the Borrower
or such Significant Subsidiary to any other Person (other than by any
Person to the Borrower or a Guarantor or by a Significant Subsidiary to
any other Significant Subsidiary) of any assets of the Borrower or such
Significant Subsidiary (including, without limitation, any Equity
Interests owned by the Borrower or such Significant Subsidiary). The
term "Asset Disposition" shall not include (i) dispositions of
inventory in the ordinary course of business, (ii) dispositions of
other assets in the ordinary course of business having a Diluted Value
of not more than $25 million in the aggregate during any fiscal year of
the Borrower, (iii) dispositions of assets the proceeds of which are
reinvested in other assets used by or useful to the Borrower or such
Significant Subsidiary in conducting its customary business if (A) a
binding purchase, subscription or similar agreement relating to such
reinvestment is entered into within 180 days after the receipt of all
or substantially all of the cash proceeds from the disposition of such
assets and (B) the Net Cash Proceeds from such disposition are so
reinvested within one year after the receipt of such cash proceeds,
(iv) the grant of a Lien by the Borrower or any Significant Subsidiary
in any assets securing a borrowing by, or contractual
4
performance obligation of, the Borrower or such Significant Subsidiary,
(v) the transactions contemplated by the Aerie Leases, (vi)
dispositions of Equity Interests in connection with directors'
qualifying shares or comparable Equity Interests, (vii) dispositions
consisting of leases of assets entered into where the Borrower or any
Significant Subsidiary is the lessor and the Person that is the lessee
has no option to purchase such assets for less than Fair Market Value
and (viii) dispositions described in Section 9.8(d).
"ASSIGNEE" is defined in Section 14.10(d).
"ASSIGNMENT" is defined in Section 14.10(d).
"BASE RATE" means, for any day, the greater of (a) the annual
interest rate most recently announced by the Administrative Agent as
its prime lending rate (which may not necessarily represent the lowest
or best rate actually charged to any customer, as the Administrative
Agent may make commercial loans or other loans at interest rates higher
or lower than that prime lending rate) in effect at its principal
office in Atlanta, Georgia, which rate may automatically increase or
decrease without notice to the Borrower or any other Person, and (b)
the sum of the Fed Funds Rate plus 0.5%.
"BASE RATE BORROWING" means a Borrowing bearing interest at
the sum of the Base Rate plus the Applicable Margin.
"BORROWER" is defined in the preamble to this Agreement.
"BORROWING" means any amount disbursed to or on behalf of the
Borrower by one or more Lenders under Section 2.1 pursuant to the
procedures specified in Section 2.2, either as an original disbursement
of funds, a renewal, extension or continuation of an amount
outstanding.
"BORROWING DATE" is defined in Section 2.2(a).
"BORROWING REQUEST" means a request pursuant to Section
2.2(a), substantially in the form of Exhibit C-1.
"BUSINESS DAY" means (a) for purposes of any LIBOR Rate
Borrowing, a day on which commercial banks are open for international
business in London, England, and (b) for all other purposes, any day
other than Saturday, Sunday, and any other day on which commercial
banks are authorized by Legal Requirement to be closed in Georgia or
New York.
"CASH COLLATERAL ACCOUNT" is defined in Section 12.1(c).
"CAPITAL LEASE" means any capital lease or sublease that is
required by GAAP to be capitalized on a balance sheet.
5
"CENTENNIAL GUARANTY" means the guaranty by TE Products of
certain Debt of Centennial Pipeline LLC relating to the Centennial
Pipeline Project in a principal amount not to exceed, at any one time
outstanding, $75,000,000.
"CENTENNIAL PIPELINE PROJECT" means a refined petroleum
products pipeline extending from the Upper Texas Gulf Coast to
Illinois, of which TE Products will own a one-third interest.
"CERCLA" means the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, 42 U.S.C. Sections 9601 et seq.
"CLOSING DATE" means the date, which must be a Business Day
occurring no later than March 29, 2002, upon which all of the
conditions precedent set forth in Article V to the effectiveness of
this Agreement have been satisfied.
"COMMITMENT" means, as the context may require and at any time
and for any Lender, either (a) the amount stated beside that Lender's
name under the column captioned "Commitment" on the most recently
amended Schedule 2 (which amount is subject to reduction and
cancellation as provided in this Agreement), or (b) the commitment of
such Lender to make Extensions of Credit.
"COMMITMENT PERCENTAGE" means, for any Lender and at any time,
the proportion (stated as a percentage) that its Commitment bears to
the total Commitments of all the Lenders.
"COMPANIES" means, at any time, the Borrower and each of its
Subsidiaries.
"COMPLETION DATE" means, in respect of the FINA/BASF Project,
the date on which all of the "Completion Standards" set forth in
Exhibit 2.1 to the Services Agreement have been satisfied.
"COMPLIANCE CERTIFICATE" means a certificate substantially in
the form of Exhibit C-4 and signed by a Responsible Officer on behalf
of the Borrower.
"CONSOLIDATED EBITDA" means EBITDA of the Borrower and its
consolidated Subsidiaries.
"CONSOLIDATED FUNDED DEBT" means Funded Debt of the Borrower
and its consolidated Subsidiaries, other than Permitted Non-Recourse
Debt of such Subsidiaries.
"CONSOLIDATED NET WORTH" means as at any date total partners'
capital of the Borrower and its consolidated Subsidiaries as at such
date, excluding the effects of any write-ups of assets after December
31, 2000, determined in accordance with GAAP. The effect of any
increase or decrease in net worth in any period as a result of (i)
items of income or loss not reflected in the determination of net
income but reflected in the determination of comprehensive income, to
the extent required by United States Financial Accounting Standards
Board Statement 130 or (ii) items of assets, liabilities, income or
loss reflected in the determination of the statement of financial
position, to the extent
6
required by United States Financial Accounting Standards Board
Statement 133, each as in effect from time to time, shall be excluded
in determining Consolidated Net Worth.
"CONSTITUENT DOCUMENTS" means, for any Person, the documents
for its formation and organization, which, for example, (a) for a
corporation are its corporate charter and bylaws, (b) for a partnership
is its partnership agreement, (c) for a limited liability company are
its certificate of organization and regulations, and (d) for a trust is
the trust agreement or indenture under which it is created.
"CONVERSION NOTICE" means a request pursuant to Section 3.10,
substantially in the form of Exhibit C-2.
"CREDIT DOCUMENTS" means (a) this Agreement, all certificates
and reports delivered by or on behalf of any Company or the General
Partner under this Agreement and all exhibits and schedules to this
Agreement, (b) all agreements, documents and instruments in favor of
the Administrative Agent, the LC Issuing Bank or the Lenders (or the
Administrative Agent on behalf of the LC Issuing Bank or the Lenders)
delivered by or on behalf of any Company or the General Partner in
connection with or under this Agreement or otherwise delivered by or on
behalf of any Company or the General Partner in connection with all or
any part of the Obligations, and (c) all renewals, extensions and
restatements of, and amendments and supplements to, any of the
foregoing.
"CURRENT FINANCIALS" means, unless otherwise specified, either
(a) the Borrower's consolidated Financials for the year ended December
31, 2000, or (b) at any time after annual Financials are first
delivered under Section 8.1, the Borrower's annual Financials then most
recently delivered to the Lenders under Section 8.1(a), together with
the Borrower's quarterly Financials then most recently delivered to the
Lenders under Section 8.1(b).
"DEBT" means, for any Person, at any time and without
duplication, the sum of the following obligations of such Person and
its consolidated Subsidiaries: (a) all Funded Debt, (b) all obligations
arising under acceptance facilities or facilities for the discount or
sale of accounts receivable, (c) all direct or contingent obligations
in respect of letters of credit and (d) all guaranties, endorsements
and other contingent obligations in respect of obligations of other
Persons or entities of the nature described in clauses (a) through (c)
above.
"DEBTOR LAWS" means the Bankruptcy Code of the United States
of America and all other applicable liquidation, conservatorship,
bankruptcy, moratorium, rearrangement, receivership, insolvency,
re-organization, suspension of payments or similar Legal Requirements
affecting creditors' Rights.
"DEFAULT PERCENTAGE" means, for any Lender and at any time,
the proportion (stated as a percentage) that the aggregate principal
amount of Borrowings owed to it bears to the aggregate principal amount
of Borrowings owed all the Lenders.
7
"DEFAULT RATE" means, for any day, an annual interest rate
equal from day to day to the lesser of (a) the sum of the rate of
interest applicable to Base Rate Borrowings plus 2%, and (b) the
Maximum Rate.
"DILUTED VALUE" means, with respect to any assets of the
Borrower, the Fair Market Value of such assets, and, with respect to
any assets of any other Person, the Fair Market Value of such assets
multiplied by the percentage of the Equity Interests held directly or
indirectly by the Borrower in such Person.
"DISTRIBUTION" means, with respect to any Equity Interests
issued by a Person (a) the retirement, redemption, purchase or other
acquisition for value of those Equity Interests, (b) the declaration or
payment of any dividend on or with respect to those Equity Interests,
(c) any Investment by that Person in the holder of any of those Equity
Interests, and (d) any other payment by that Person with respect to
those Equity Interests.
"EBITDA" means, for any Person and its consolidated
Subsidiaries and for any period, the sum of, without duplication, (i)
Net Income of such Person and its consolidated Subsidiaries (other than
any Excluded Subsidiary of such Person) for such period plus (ii) to
the extent actually deducted in determining Net Income of such Person
and its consolidated Subsidiaries for such period, Interest Expense,
Tax Expense, depreciation and amortization, in each case, of such
Person and its consolidated Subsidiaries (other than any Excluded
Subsidiary of such Person) for such period.
"EMPLOYEE PLAN" means any employee pension benefit plan
covered by Title IV of ERISA and established or maintained by any
Company or any ERISA Affiliate (other than a Multiemployer Plan).
"ENVIRONMENTAL LAW" means any applicable Legal Requirement
that relates to protection of the environment or to the regulation of
any Hazardous Substances, including CERCLA, the Hazardous Materials
Transportation Act (49 U.S.C. Section 1801 et seq.), the Resource
Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), the
Clean Water Act (33 U.S.C. Section 1251 et seq.), the Clean Air Act (42
U.S.C. Section 7401 et seq.), the Toxic Substances Control Act (15
U.S.C. Section 2601 et seq.), the Federal Insecticide, Fungicide, and
Rodenticide Act (7 U.S.C. Section 136 et seq.), the Emergency Planning
and Community Right-to-Know Act (42 U.S.C. Section 11001 et seq.), the
Safe Drinking Water Act (42 U.S.C. Section 201 and Section 300f et
seq.), the Rivers and Harbors Act (33 U.S.C. Section 401 et seq.), the
Oil Pollution Act (33 U.S.C. Section 2701 et seq.), analogous state and
local Legal Requirements, and any analogous future enacted or adopted
Legal Requirement.
"ENVIRONMENTAL LIABILITY" means any liability, loss, fine,
penalty, charge, lien, damage, cost or expense of any kind to the
extent that it results (a) from the violation of any Environmental Law,
(b) from the Release or threatened Release of any Hazardous Substance,
or (c) from actual or threatened damages to natural resources.
"ENVIRONMENTAL PERMIT" means any permit or license from any
Person defined in clause (a) of the definition of Governmental
Authority that is required under any Environmental Law for the lawful
conduct of any business, process or other activity.
8
"EQUITY EVENT" means (a) the contribution in cash of capital
(x) to the Borrower by any Person or (y) to any Significant Subsidiary
(other than an Excluded Subsidiary) by any Person other than the
Borrower or a Wholly-Owned Subsidiary of the Borrower, or (b) any
issuance of Equity Interests (x) by the Borrower to any Person or (y)
by any Significant Subsidiary (other than an Excluded Subsidiary) to
any Person other than the Borrower or a Wholly-Owned Subsidiary of the
Borrower.
"EQUITY INTERESTS" means, (a) with respect to a corporation,
shares of capital stock of such corporation or any other interest
convertible or exchangeable into any such interest, (b) with respect to
a limited liability company, a membership interest in such company, (c)
with respect to a partnership, a partnership interest in such
partnership, and (d) with respect to any other Person, an interest in
such Person analogous to interests described in clauses (a) through
(c).
"ERISA" means the Employee Retirement Income Security Act of
1974.
"ERISA AFFILIATE" means any Person that, for purposes of Title
IV of ERISA, is a member of any Company's controlled group or is under
common control with any Company within the meaning of Section 414 of
the IRC.
"EVENT OF DEFAULT" is defined in Article 11.
"EXCHANGE AGREEMENT" means the Exchange Agreement, dated as of
April 7, 2000, among TE Products, TEPPCO Crude Pipeline and Aerie,
pursuant to which each of TE Products and TEPPCO Crude Pipeline will be
issued certain preferred stock, other Equity Interests and investor
rights in exchange for its grant and lease pursuant to the Aerie Lease
to which it is a party, as amended and in effect from time to time.
"EXCLUDED SUBSIDIARY" means, for any Company (the "FIRST
PERSON"), any other Company (the "SECOND PERSON") in which the first
Person owns Equity Interests and where the second Person (a) has no
Funded Debt other than Permitted Non-Recourse Debt and (b) the sole
purpose of which is to engage in the acquisition, construction,
development and/or operation activities financed or refinanced with
such Permitted Non-Recourse Debt.
"EXTENSION OF CREDIT" means (a) the disbursement of the
proceeds of any Borrowing, (b) the issuance of a Letter of Credit or
the amendment of any Letter of Credit having the effect of extending
the stated termination date thereof or increasing the maximum amount
available to be drawn thereunder or (c) the funding of a participation
in the unpaid reimbursement obligation of the Borrower with respect to
a payment made by the LC Issuing Bank under a Letter of Credit
(excluding any reimbursement obligation that has been repaid with the
proceeds of any Borrowing).
"FACILITY FEE" means, for any day, a fee payable on the amount
of the Commitment of each Lender on such day, irrespective of usage,
payable at the rate (expressed in basis points per annum) set forth
below in the columns identified as Xxxxx 0, Xxxxx 0, Xxxxx 0, Xxxxx 4
or Level 5 based on the Reference Ratings.
9
XXXXX 0 XXXXX 0 XXXXX 0 XXXXX 0 XXXXX 5
REFERENCE REFERENCE REFERENCE
RATING AT RATING AT REFERENCE RATING AT
LEAST A- BY LEAST BBB+ BY RATING AT LEAST LEAST BBB- BY
S&P AND A3 BY S&P AND BAA1 BBB BY S&P AND S&P AND BAA3 REFERENCE RATING
BASIS FOR PRICING MOODY'S BY MOODY'S BAA2 BY MOODY'S BY MOODY'S LOWER THAN LEVEL 4
----------------- ------------- ------------ ---------------- -------------- -----------------
Facility Fee 12.5 15.0 17.5 25.0 37.5
The Facility Fee will be based upon the Level corresponding to the
Reference Rating at the time of determination. Any change in the
Facility Fee resulting from a change in the Reference Rating shall be
effective as of the date on which the applicable rating agency
announces the applicable change in rating.
"FAIR MARKET VALUE" means, with respect to any Equity Interest
or other property or asset, the price obtainable for such Equity
Interest or other property or asset in an arm's-length sale between an
informed and willing purchaser under no compulsion to purchase and an
informed and willing seller under no compulsion to sell.
"FED FUNDS RATE" means, for any day, the annual rate (rounded
upwards, if necessary, to the nearest 0.01%) determined (which
determination is conclusive and binding, absent manifest error) by the
Administrative Agent to be equal to (a) the weighted average of the
rates on overnight federal funds transactions with member banks of the
Federal Reserve System arranged by federal funds brokers on that day
(or, if such day is not a Business Day, then on the immediately
preceding Business Day), as published by the Federal Reserve Bank of
New York on the next Business Day, or (b) if those rates are not
published for any such day, the average of the quotations at
approximately 10:00 a.m. received by the Administrative Agent from
three federal funds brokers of recognized standing selected by the
Administrative Agent in its sole discretion.
"FINA/BASF CONTRACTS" means, in each case as amended and in
effect from time to time, collectively: (a) the Service Agreement; (b)
the Call Option Agreement, dated February 9, 1999, among TE Products,
BASF Fina Petrochemicals Limited Partnership, BASF Corporation and FINA
Oil and Chemical Company; (c) the Agreement between Owner and
Contractor, dated February 4, 1999, between TE Products and Xxxxxxxx
Engineering Company; and (d) the Parent Company Guaranty, dated
February 4, 1999, between Xxxxxxx International Group PLC and TE
Products.
"FINA/BASF PROJECT" means the construction of pipelines by TE
Products from Mont Belvieu, Texas to Port Xxxxxx, Texas.
"FINANCIALS" of a Person means balance sheets, profit and loss
statements, reconciliations of capital and surplus and statements of
cash flow of such Person prepared (a) according to GAAP (subject to
year-end audit adjustments with respect to interim
10
Financials) and (b) except as stated in Section 1.4, in comparative
form to prior year-end figures or corresponding periods of the
preceding fiscal year or other relevant period, as applicable.
"FUNDED DEBT" means, for any Person at any time, and without
duplication, the sum of the following for such Person and its
consolidated Subsidiaries: (a) the unpaid principal amount or component
of all obligations for borrowed money, (b) the unpaid principal amount
or component of all obligations evidenced by bonds, debentures, notes
or similar instruments, (c) the unpaid principal amount or component of
all obligations to pay the deferred purchase price of property or
services except trade accounts payable arising in the ordinary course
of business, (d) in respect of all obligations that are secured (or for
which the holder of any such obligation has an existing Right,
contingent or otherwise, to be so secured) by any Lien on property
owned or acquired by that Person, the lesser of (x) the unpaid amount
of all of those obligations from time to time outstanding and (y) the
Fair Market Value of the property securing all of those obligations,
liabilities secured (or for which the holder of such obligations has an
existing Right, contingent or otherwise, to be so secured) by any Lien
existing on property owned or acquired by that Person, (e) all Capital
Lease obligations, (f) the unpaid principal amount or component of all
obligations under synthetic leases, and (g) the unpaid principal amount
or component of all guaranties, endorsements, and other contingent
obligations in respect of obligations of other Persons or entities of
the nature described in clauses (a) through (f) above.
"FUNDING LOSS" means any loss, expense or reduction in yield
(but not any Applicable Margin) that any Lender reasonably incurs
because (i) the Borrower fails or refuses (for any reason whatsoever
other than a default by the Administrative Agent or the Lender claiming
that loss, expense or reduction in yield) to take any Borrowing or
convert a Borrowing that it has requested, or given notice for, under
this Agreement, or (ii) the Borrower voluntarily or involuntarily
prepays or pays any LIBOR Rate Borrowing or converts any LIBOR Rate
Borrowing to a Borrowing of another Type, in each case, other than on
the last day of the applicable Interest Period. The amount of any
Funding Loss shall be determined by the relevant Lender to be the
excess, if any, of (A) the amount of interest that would have accrued
on the principal amount of such Borrowing had such event not occurred,
at the LIBOR Rate, for the period from the date of such event to the
last day of the then current Interest Period (or, in the case of a
failure to borrow, convert or continue, for the period that would have
been the Interest Period for that Borrowing), over (B) the amount of
interest that would accrue on such principal amount for such period at
the interest rate that such Lender would bid (were it to bid), at the
commencement of such period, for dollar deposits of a comparable amount
and period from other banks in the London interbank market.
"GAAP" means generally accepted accounting principles of the
Accounting Principles Board of the American Institute of Certified
Public Accountants and the Financial Accounting Standards Board that
are applicable from time to time.
11
"GENERAL PARTNER" means Texas Eastern or any other Person that
serves as the general partner of the Borrower without causing the
occurrence of a Potential Default or an Event of Default under Section
11.7(b).
"GOVERNMENTAL AUTHORITY" means any (a) local, state,
territorial, federal or foreign judicial, executive, regulatory,
administrative, legislative or governmental agency, board, bureau,
commission, department or other instrumentality, (b) private
arbitration board or panel or (c) central bank.
"GUARANTOR" means each Person delivering a Guaranty as
required by Article 6.
"GUARANTY" means a guaranty substantially in the form of
Exhibit B.
"HAZARDOUS SUBSTANCE" means any substance that is designated,
defined, classified or regulated as a hazardous waste, hazardous
material, pollutant, contaminant, explosive, corrosive, flammable,
infectious, carcinogenic, mutagenic, radioactive or toxic or hazardous
substance under any Environmental Law, including, without limitation,
any hazardous substance within the meaning of Section 101(14) of
CERCLA.
"HEDGING AGREEMENT" means any swap, cap or collar arrangement
or any other derivative product customarily offered by banks or other
institutions to their customers in order to manage the exposure of such
customers to interest rate fluctuations or commodity price
fluctuations.
"INTEREST EXPENSE" means, for any Person and its consolidated
Subsidiaries and for any period, all interest expense (including all
amortization of debt discount and expenses and reported interest) on
all Funded Debt of such Person and its consolidated Subsidiaries during
such period.
"INTEREST PERIOD" is defined in Section 3.9.
"INVESTMENT" means, in respect of any Person, any loan,
advance, extension of credit or capital contribution to that Person,
any other investment in that Person, or any purchase or commitment to
purchase any Equity Interest or Debt issued by that Person or
substantially all of the assets or a division or other business unit of
that Person. The term "Investment", however, does not include any
extension of trade debt in the ordinary course of business or, as a
result of collection efforts, the receipt of any equity in or property
of a Person.
"IRC" means the Internal Revenue Code of 1986.
"LC FEE" is defined in Section 4.3.
"LC ISSUING BANK" is defined in the preamble to this
Agreement.
"LC OUTSTANDINGS" means, on any date of determination, the sum
of the undrawn stated amounts of all Letters of Credit that are
outstanding on such date plus the aggregate principal amount of all
unpaid reimbursement obligations of the Borrower on
12
such date with respect to payments made by the LC Issuing Bank under
Letters of Credit (excluding reimbursement obligations that have been
repaid with the proceeds of any Borrowing).
"JONAH GAS" means the Jonah Gas Gathering Company, a Wyoming
general partnership.
"LEGAL REQUIREMENTS" means all applicable statutes, laws,
treaties, ordinances, rules, regulations, orders, writs, injunctions,
decrees, judgments, opinions and interpretations of any Governmental
Authority.
"LENDER" means (a) each financial institution (including,
without limitation, SunTrust, in its capacity as a Lender, in respect
of its Commitment) initially named on Schedule 2, (b) each Assignee
pursuant to Section 14.10(d) and (c) each Additional Lender.
"LETTER OF CREDIT" means letters of credit issued by the LC
Issuing Bank pursuant to Section 2.5.
"LIBOR RATE" means, for a LIBOR Rate Borrowing and its
Interest Period, the quotient of (a) the annual interest rate for
deposits in United States dollars of amounts equal or comparable to the
principal amount of that LIBOR Rate Borrowing offered for a term
comparable to that Interest Period, which rate appears on the Telerate
Page 3750 as of 11:00 a.m. (London, England time) two Business Days
before the beginning of that Interest Period or, if no such offered
rates appear on such page, then the rate used for that Interest Period
shall be the arithmetic average (rounded upwards, if necessary, to the
next higher 0.001%) of the rates offered to the Administrative Agent by
not less than two major banks in
New York,
New York at approximately
10:00 a.m. (Atlanta, Georgia time) two Business Days before the
beginning of that Interest Period for deposits in United States dollars
in the London interbank market of the principal amount of that LIBOR
Rate Borrowing offered for a term comparable to that Interest Period,
divided by (b) a number equal to 1.00 minus the LIBOR Reserve
Percentage. The rate so determined in accordance herewith shall be
rounded upwards to the nearest multiple of 0.001%, and the term
"Telerate Page 3750" means the display designated as "Page 3750" on the
Dow Xxxxx Markets Service, Inc. (or such other page as may replace Page
3750 on that service or another service as may be nominated by the
British Bankers' Association as the information vendor for the purpose
of displaying British Bankers' Association Interest Settlement Rates
for United States dollars).
"LIBOR RATE BORROWING" means a Borrowing bearing interest at
the sum of the LIBOR Rate plus the Applicable Margin.
"LIBOR RESERVE PERCENTAGE" means, for any Interest Period with
respect to a LIBOR Rate Borrowing, the reserve percentage applicable to
that Interest Period (or, if more than one such percentage shall be so
applicable, then the daily average of such percentages for those days
in that Interest Period during which any such percentage shall be
applicable) under regulations issued from time to time by the Board of
Governors of
13
the Federal Reserve System (or any successor) for determining the
maximum reserve requirement (including any emergency, supplemental or
other marginal reserve requirement) for the Lenders with respect to
liabilities or assets consisting of or including "eurocurrency
liabilities" (as defined in Regulation D of the Board of Governors of
the Federal Reserve System, as in effect from time to time) having a
term equal to that Interest Period.
"LIEN" means any lien, mortgage, security interest, pledge,
assignment, charge, title retention agreement or encumbrance of any
kind and any other arrangement for a creditor's claim to be satisfied
from assets or proceeds prior to the claims of other creditors or the
owners (other than title of the lessor under an operating lease).
"LITIGATION" means any action by or before any Governmental
Authority.
"MAINTENANCE CAPITAL EXPENDITURES" means, for any Person and
its consolidated Subsidiaries and for any period, all expenditures of
such Person and its consolidated Subsidiaries during such period for
the maintenance or repair of capital assets, determined in accordance
with GAAP.
"MARGIN REGULATIONS" means Regulations T, U and X of the Board
of Governors of the Federal Reserve System, as amended.
"MATERIAL ADVERSE EVENT" means any circumstance or event that,
individually or collectively, is, or is reasonably expected to result
in, any (a) material impairment of (i) the ability of the Borrower or
any other Company to perform any of their respective payment or other
material obligations under any Credit Document, or (ii) the ability of
the Administrative Agent, the LC Issuing Bank or any Lender to enforce
any of those obligations or any of their respective Rights under the
Credit Documents (other than as a result of its own act or omission),
(b) material and adverse effect on the financial condition of the
Borrower and its Subsidiaries, taken as a whole, as represented to the
Lenders in the Current Financials most recently delivered before the
date of this Agreement, or (c) Event of Default or Potential Default.
"MAXIMUM AMOUNT" and "MAXIMUM RATE" respectively mean, for any
Lender, the maximum non-usurious amount and the maximum non-usurious
rate of interest that, under applicable Legal Requirement, that such
Lender is permitted to contract for, charge, take, reserve or receive
on the Obligations.
"MIDSTREAM" means TEPPCO Midstream Companies, L.P., a Delaware
limited partnership.
"MOODY'S" means Xxxxx'x Investors Service, Inc. or any
successor thereto.
"MULTIEMPLOYER PLAN" means a multiemployer plan as defined in
Sections 3(37) or 4001(a)(3) of ERISA or Section 414(f) of the IRC to
which any Company or any ERISA Affiliate is making, or has made, or is
accruing, or has accrued, an obligation to make contributions.
14
"NET CASH PROCEEDS" means, with respect to any Asset
Disposition, Recovery Event or Equity Event (each, for purposes of this
definition, a "TRANSACTION"), the aggregate amount of cash received, as
the case may be, by (x) the Borrower or (y) any Significant Subsidiary
and legally available to be distributed to the Borrower in the form of
dividends or distributions in connection with such transaction after,
in each case, deducting therefrom (i) payments made in respect of any
Funded Debt to the extent that such payments are required to be made
(other than under the Credit Documents but subject to Section
9.2(b)(ii)) as a result of or in connection with such transaction by
applicable law or the terms of any contractual agreement relating to
such Funded Debt, (ii) customary transaction costs (which in the case
of any Recovery Event may include litigation costs and expenses and
other costs and expenses of collecting payments and settlements
therefrom) that are paid or reserved for payment (A) to a Person that
is not an Affiliate of the Borrower or (B) to the Borrower or an
Affiliate of the Borrower to reimburse such Person for payments made by
such Person to another Person that is not the Borrower or an Affiliate
of the Borrower in respect of such transaction costs, (iii) the amount
of taxes paid or reserved for payment by the Borrower or such
Significant Subsidiary in connection with or as a result of such
transaction and (iv) any Reinvestment Amount.
"NET INCOME" means, for any Person and its consolidated
Subsidiaries and for any period, the profit or loss of such Person and
its consolidated Subsidiaries for such period after deducting all
operating expenses, provision for Taxes and reserves (including
reserves for deferred income Taxes), and all other deductions
calculated, in each case, in accordance with GAAP, but excluding (a)
extraordinary items, and (b) the profit or loss of any Subsidiary
accrued before the date that (i) it becomes a Subsidiary of such
Person, (ii) it is merged with such Person or any of its Subsidiaries,
or (iii) its assets are acquired by such Person of any of its
Subsidiaries.
"NON-RECOURSE" means, with respect to any Person as applied to
any Funded Debt (or portion thereof), (a) that such Person is not
directly or indirectly liable to make any payments with respect to such
Funded Debt (or portion thereof), other than payments deemed made by or
on behalf of such Person as a result of any realization on assets that
were pledged to secure such Funded Debt and that consist of such
Person's Equity Interests in the Person primarily incurring such Funded
Debt (or any shareholder, partner, member or participant of such
Person), (b) that such Funded Debt (or portion thereof) does not
constitute Funded Debt of such Person other than to the extent of
recourse to such Person's Equity Interests in the Person primarily
incurring such Debt (or any shareholder, partner, member or participant
of such Person) and that (c) such Funded Debt (or portion thereof) is
not secured by a Lien on any asset of such Person other than such
Person's Equity Interests in the Person primarily incurring such Funded
Debt or any shareholder, partner, member, participant or other owner,
directly or indirectly, of such Person or the Person the obligations of
which were guaranteed.
"NOTE" means one of the promissory notes substantially in the
form of Exhibit A.
"OBLIGATIONS" means all present and future (a) Debts,
liabilities and obligations of the Borrower to the Administrative
Agent, the LC Issuing Bank or any Lender that arise
15
under any Credit Document, whether for principal, interest, fees,
costs, attorneys' fees or otherwise and (b) renewals, extensions and
modifications of any of the foregoing.
"OSHA" means the Occupational Safety and Health Act of 1970,
29 U.S.C. Section 651 et seq.
"OTHER FACILITY" means the 364-Day
Credit Agreement, dated the
date hereof, among the Borrower, the lenders named therein and
SunTrust.
"OUTSTANDING CREDITS" means, on any date of determination, an
amount equal to the sum of (a) the aggregate principal amount of all
Borrowings outstanding on such date plus (b) the LC Outstandings on
such date.
"PARTICIPANT" is defined in Section 14.10(c).
"PBGC" means the Pension Benefit Guaranty Corporation.
"PERMITTED DEBT" is defined in Section 9.1.
"PERMITTED LIENS" is defined in Section 9.3.
"PERMITTED NON-RECOURSE DEBT" means Funded Debt of any Person
(other than the Borrower) that is Non-Recourse to any Company other
than such Person and is used by such Person (i) to acquire, construct,
develop and/or operate assets not owned by any Company as of the date
hereof or (ii) to finance the acquisition of the Service Agreement.
"PERSON" means an individual, partnership, corporation
(including a business trust), joint stock company, trust,
unincorporated association, joint venture, limited liability company or
other entity, or a Governmental Authority.
"POTENTIAL DEFAULT" means any event, occurrence or
circumstance, the existence of which upon any required notice, time
lapse, or both, would become an Event of Default.
"PREDECESSOR" means any Person for whose obligations and
liabilities any Company is reasonably expected to be liable as the
result of any merger, de facto merger, stock purchase, asset purchase
or divestiture, combination, joint venture, investment,
reclassification or other similar business transaction.
"PRO FORMA EBITDA" means, for any fiscal period of the
Borrower, the sum of Consolidated EBITDA for such period plus, to the
extent not already reflected in Consolidated EBITDA for such period,
EBITDA for such period of any other Person or all or substantially all
of the business or assets of any other Person or operating division or
business unit of any other Person acquired in an Acquisition during
such period.
"REAL PROPERTY" means any land, buildings, fixtures and other
improvements to land now or in the future directly or indirectly owned
by any Company, leased to or otherwise operated by any Company or
subleased by any Company to any other Person.
16
"RECOVERY EVENT" means any settlement of or payment in respect
of any property or casualty insurance claim or any condemnation
proceeding relating to any property or asset of the Borrower or any
Significant Subsidiary, the Diluted Value of which settlement or
payment, when added to the Diluted Value of all such settlements and
payments in any fiscal year of the Borrower exceeds $25 million,
provided, however, that for purposes of this definition, "Recovery
Event" shall not include any settlement or payment that such Person is
contesting diligently and in good faith.
"REFERENCE RATING" means (i) the ratings assigned by S&P and
Xxxxx'x to the senior unsecured non-credit enhanced long-term debt of
the Borrower, or (ii) if S&P and Xxxxx'x have not assigned ratings to
the senior unsecured non-credit enhanced long-term debt of the
Borrower, the ratings that are one level below the ratings assigned by
S&P and Xxxxx'x to the senior unsecured non-credit enhanced long-term
debt of TE Products. For purposes of the foregoing, (x) if the ratings
assigned by S&P and Xxxxx'x are not comparable (i.e., a "split
rating"), the higher of such two ratings shall control, unless either
rating is below BBB- (in the case of S&P) or Baa3 (in the case of
Xxxxx'x), in which case the lower of the two ratings shall control, and
(y) for purposes of illustration an S&P rating of BBB will be
considered to be "one level below" an S&P rating, of BBB+.
"REINVESTMENT AMOUNT" means, with respect to any Recovery
Event, the amount of cash received by the Borrower or any Significant
Subsidiary that the Borrower, by written notice delivered to the
Administrative Agent on or prior to the date 10 Business Days following
receipt of such cash by the Borrower or such Significant Subsidiary,
certifies will be reinvested, and within one year of receipt of such
cash is in fact reinvested, in assets to replace, restore or refurbish
the assets that were the subject of such Recovery Event.
"RELEASE" means any "release" as defined under any
Environmental Law.
"REPRESENTATIVES" means officers, directors, employees,
accountants, attorneys and agents.
"REQUEST FOR ISSUANCE" shall mean a request made pursuant to
Section 2.5 in the form of Exhibit C-3.
"REQUIRED LENDERS" means any combination of the Lenders
holding (directly or indirectly) more than (a) 50% of the total
Commitments, if there are no Borrowings outstanding, (b) 50% of the sum
of (i) the total unused Commitments plus (ii) the aggregate principal
amount of all Outstanding Credits, if there are any Borrowings or
Letters of Credit outstanding and the maturity of the Obligations has
not been accelerated and the Commitments have not been terminated under
Section 12.1(a) or (b), as the case may be, and (c) 50% of the
aggregate principal amount of all Outstanding Credits if there are any
Borrowings or Letters of Credit outstanding and the maturity of the
Obligations has been accelerated or the Commitments have been
terminated under Section 12.1(a) or (b), as the case may be.
17
"RESPONSIBLE OFFICER" means the chairman, president, vice
president, chief executive officer, chief financial officer, treasurer,
corporate secretary, member or manager of the General Partner or Person
of comparable authority.
"RIGHTS" means rights, remedies, powers, privileges and
benefits.
"S&P" means Standard & Poor's Ratings Services, a division of
XxXxxx-Xxxx Companies, Inc., or any successor thereto.
"SENIOR NOTES" means (i) the 6.45% Senior Notes Due 2008 in
the original aggregate principal amount of $180,000,000 and the 7.51%
Senior Notes Due 2028 in the original aggregate principal amount of
$210,000,000, in each case issued by TE Products under the Indenture
dated as of January 27, 1998, between TE Products and The Bank of
New
York, Trustee, and (ii) the 7.625% Senior Notes Due 2012 in the
original aggregate principal amount of $500,000,000 issued by the
Borrower under the Indenture dated as of February 20, 2002, between the
Borrower and First Union National Bank, Trustee.
"SERVICE AGREEMENT" means the Service and Transportation
Agreement, dated February 9, 1999, among TE Products, BASF Fina
Petrochemicals Limited Partnership, BASF Corporation and FINA Oil and
Chemical Company, as amended and in effect from time to time.
"SIGNIFICANT SUBSIDIARY" means each Subsidiary of the Borrower
(a) in which the Borrower's direct and indirect Equity Interests in
such Subsidiary and the Borrower's and its Subsidiaries' advances to
such Subsidiary constitute more than 10% of the total assets of the
Borrower and its consolidated Subsidiaries, (b) in which the Borrower's
and its Subsidiaries' share of the total assets (after intercompany
eliminations) of such Subsidiary exceed 10% of the total assets of the
Borrower and its consolidated Subsidiaries, or (c) in which the equity
of the Borrower and its Subsidiaries in the income from continuing
operations of such Subsidiary before income taxes, extraordinary items
and cumulative effects of changes in accounting principles exceed 10%
of such income of the Borrower and its consolidated Subsidiaries.
"SOLVENT" means, as to any Person, that (a) the aggregate fair
market value of its assets exceeds its liabilities, (b) it is able to
pay its debts as they mature, and (c) it does not have unreasonably
small capital to conduct its businesses.
"STATED TERMINATION DATE" means April 6, 2004.
"SUBSIDIARY" of any Person means any corporation, limited
liability company, general or limited partnership or other entity of
which more than 50% (in number of votes) of the Equity Interests is
owned of record or beneficially, directly or indirectly, by that
Person.
"SUNTRUST" is defined in the preamble to this Agreement.
"TAXES" means, for any Person, taxes, assessments or other
governmental charges or levies imposed upon it, its income or any of
its properties, franchises or assets.
18
"TAX EXPENSE" means, for any Person and its consolidated
Subsidiaries and for any period, the taxes on income of that Person and
its consolidated Subsidiaries accrued during that period.
"TCTM" means TCTM, L.P., a Delaware limited partnership.
"TE PRODUCTS" means TE Products Pipeline Company, Limited
Partnership, a Delaware limited partnership.
"TEPPCO CRUDE" means TEPPCO Crude Oil, L.P., a Delaware
limited partnership.
"TEPPCO CRUDE PIPELINE" means TEPPCO Crude Pipeline, L.P., a
Delaware limited partnership.
"TEPPCO GP" means TEPPCO GP, Inc., a Delaware corporation.
"TERMINATION DATE" means the earlier of (a) the Stated
Termination Date and (b) the effective date on which the Commitments
are fully canceled or terminated.
"TEXAS EASTERN" means Texas Eastern Products Pipeline Company,
LLC, a Delaware limited liability company.
"TYPE" means any type of Borrowing determined with respect to
the applicable interest option.
"UTILIZATION PERCENTAGE" means, at any time for the
determination thereof, the percentage obtained by dividing (i) the
aggregate Outstanding Credits plus the aggregate outstanding credits
under the Other Facility by (ii) the aggregate Commitments plus the
aggregate commitments under the Other Facility at such time.
"WHOLLY-OWNED SUBSIDIARY" means any Subsidiary of a Person,
all of the issued and outstanding Equity Interests of which are
directly or indirectly owned by such Person, excluding (a) any general
partner interests owned by the General Partner in any such Subsidiary
that is a partnership and (b) any directors' qualifying shares or
similar type of Equity Interests, as applicable.
SECTION 1.2. TIME REFERENCES.
Unless otherwise specified, in the Credit Documents: (a) time
references (e.g., 10:00 a.m.) are to time in Atlanta, Georgia, on the applicable
date, and (b) in calculating a period from one date to another, the word "from"
means "from and including" and the word "to" or "until" means "to but
excluding".
SECTION 1.3. OTHER REFERENCES.
Unless otherwise specified, in the Credit Documents: (a) where
appropriate, the singular includes the plural and vice versa , and words of any
gender include each other gender, (b) where
19
appropriate, words include their respective cognate expressions, (c) heading and
caption references may not be construed in interpreting provisions, (d) monetary
references are to currency of the United States of America, (e) section,
paragraph, annex, schedule, exhibit and similar references are to the particular
Credit Document in which they are used, (f) references to "telecopy",
"facsimile", "fax" or similar terms are to facsimile or telecopy transmissions,
(g) references to "including" (in its various forms) mean including without
limiting the generality of any description preceding that word, (h) the rule of
construction that references to general items that follow references to specific
items are limited to the same type or character of those specific items is not
applicable in the Credit Documents, (i) references to "writing" include
printing, typing, lithography and other means of reproducing words in a
tangible, visible form, (j) references to any Person include that Person's
heirs, personal representatives, successors, trustees, receivers and permitted
assigns, (k) references to any Legal Requirement include every amendment or
supplement to it, rule and regulation adopted under it and successor or
replacement for it, (l) references to any Governmental Authority include any
Person succeeding to its relevant function, (m) references to any Credit
Document or other document include (to the extent not prohibited by the terms of
the Credit Documents) every renewal and extension of it, amendment and
supplement to it and replacement or substitution for it, (n) the terms "assets"
or "property" in relation to any Person includes all asset, property and Equity
Interests owned, used or acquired, or to be owned, used or acquired, by such
Person, as the context may require, and (o) the "months" referred to in the
definition of "Applicable Margin" shall mean the period that commences on the
Closing Date and ends on the numerically corresponding day in the next
succeeding month, and each successive period commencing on the last day of the
preceding period and ending on the numerically corresponding day of the next
succeeding month, provided, that if any such period begins on a day for which
there is no numerically corresponding day in the next succeeding month, than
such period will end on the last day of that month.
SECTION 1.4. ACCOUNTING PRINCIPLES.
Unless otherwise specified, in the Credit Documents: (a) GAAP
determines all accounting and financial terms and compliance with financial
covenants, (b) GAAP in effect on the date of this Agreement determines
compliance with financial covenants, (c) otherwise, all accounting principles
applied in a current period must be comparable in all material respects to those
applied during the preceding comparable period and (d) all financial terms and
compliance with reporting and financial covenants must be on a consolidated
basis, as applicable.
ARTICLE II
THE COMMITMENTS
Each Lender severally but not jointly agrees to extend credit to the
Borrower and the LC Issuing Bank agrees to issue Letters of Credit, in each
case, in accordance with the following provisions and subject to the other terms
and conditions of the Credit Documents.
SECTION 2.1. REVOLVING FACILITY.
Each Borrowing is subject to all of the provisions in the Credit
Documents, including the following: (a) each Borrowing may occur only on a
Business Day on or after the Closing Date
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and before the Termination Date and (b) the Outstanding Credits may never exceed
the total Commitments at such time.
SECTION 2.2. BORROWING PROCEDURE.
The following procedures apply to Borrowings:
(a) BORROWING REQUEST. The Borrower may request a Borrowing by making
or delivering a Borrowing Request to the Administrative Agent, which is
irrevocable and binding on the Borrower, stating the Type, amount, and Interest
Period for each Borrowing and which must be received by the Administrative Agent
no later than (i) 10:00 a.m. on the third Business Day before the date on which
funds are requested (the "BORROWING DATE") for any LIBOR Rate Borrowing, or (ii)
11:00 a.m. on the Borrowing Date for any Base Rate Borrowing. The Administrative
Agent shall promptly on the day received notify each Lender of any Borrowing
Request. Each LIBOR Rate Borrowing must be in the amount of $10,000,000 or an
integral multiple of $1,000,000 in excess of $10,000,000, and each Base Rate
Borrowing must be in the amount of $1,000,000 or an integral multiple of
$100,000 in excess of $1,000,000, or if less than $1,000,000, the total unused
Commitments.
(b) FUNDING. Each Lender shall remit its Commitment Percentage of each
requested Borrowing to the Administrative Agent's principal office in Atlanta,
Georgia, in funds that are available for immediate use by the Administrative
Agent by 2:00 p.m. on the applicable Borrowing Date. Subject to receipt of those
funds, the Administrative Agent shall (unless to its actual knowledge any of the
applicable conditions precedent have not been satisfied by the Borrower or
waived by the requisite Lenders) make those funds available to the Borrower by
wiring the funds to or for the account of the Borrower.
(c) FUNDING ASSUMED. Absent contrary written notice from a Lender, the
Administrative Agent may assume that each Lender has made its Commitment
Percentage of the requested Borrowing available to the Administrative Agent on
the applicable Borrowing Date, and the Administrative Agent may, in reliance
upon such assumption (but shall not be required to), make available to the
Borrower a corresponding amount. If a Lender fails to make its Commitment
Percentage of any requested Borrowing available to the Administrative Agent on
the applicable Borrowing Date, the Administrative Agent may recover the
applicable amount on demand (i) from that Lender together with interest,
commencing on the Borrowing Date and ending on (but excluding) the date the
Administrative Agent recovers the amount from that Lender, at an annual interest
rate equal to the Fed Funds Rate, or (ii) if that Lender fails to pay its amount
upon demand, then from the Borrower, together with interest at the rate
applicable to that Borrowing. No Lender is responsible for the failure of any
other Lender to make its share of any Borrowing available as required by Section
2.2(b); however, failure of any Lender to make its share of any Borrowing so
available does not excuse any other Lender from making its share of any
Borrowing so available.
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SECTION 2.3. EFFECT OF REQUESTS.
Each Borrowing Request and Request for Issuance constitutes a
representation and warranty by the Borrower that as of the date of the requested
Extension of Credit all of the applicable conditions precedent in Article 5 have
been satisfied.
SECTION 2.4. TERMINATION OF THE COMMITMENTS.
(a) VOLUNTARY. The Borrower may, upon giving at least five Business
Days prior written and irrevocable notice to the Administrative Agent, terminate
all or part of the Commitments; provided, however, that any such termination may
not result in the aggregate Commitments being reduced to an amount less than the
LC Outstandings. Each partial termination under this subsection (a) must be in
an amount of not less than $5,000,000 or a greater integral multiple of
$1,000,000 and must be ratable in accordance with each Lender's Commitment
Percentage.
(b) MANDATORY. On the date of any prepayment of Borrowings (or cash
collateralization of LC Outstandings) pursuant to Section 3.2(c)(ii), the
Commitments shall automatically reduce by an amount equal to such prepayment (or
cash collateralization).
(c) MISCELLANEOUS. At the time of any termination of the Commitments
under this Section 2.4, the Borrower shall pay to the Administrative Agent, for
the account of each Lender, as applicable, all accrued and unpaid fees under
this Agreement, the interest attributable to the amount of that reduction, and
any related Funding Loss. Any part of the Commitments that is terminated may not
be reinstated.
SECTION 2.5. LETTERS OF CREDIT.
(a) Subject to the terms and conditions hereof, each Letter of Credit
shall be issued (or the stated maturity thereof extended or terms thereof
modified or amended) on not less than three Business Days' prior notice thereof
by delivery of a Request for Issuance to the Administrative Agent (which shall
promptly distribute copies thereof to the Lenders) and the LC Issuing Bank. Each
Request for Issuance shall specify (i) the date (which shall be a Business Day)
of issuance of such Letter of Credit (or the date of effectiveness of such
extension, modification or amendment) and the stated expiry date thereof (which
shall be no later than the eighth Business Day preceding the Stated Termination
Date), (ii) the proposed stated amount of such Letter of Credit (which shall not
be less than $1,000,000), (iii) the name and address of the beneficiary of such
Letter of Credit and (iv) a statement of drawing conditions applicable to such
Letter of Credit, and if such Request for Issuance relates to an amendment or
modification of a Letter of Credit, it shall be accompanied by the consent of
the beneficiary of the Letter of Credit thereto. Each Request for Issuance shall
be irrevocable unless modified or rescinded by the Borrower not less than two
days prior to the proposed date of issuance (or effectiveness) specified
therein. Not later than 12:00 noon on the proposed date of issuance (or
effectiveness) specified in such Request for Issuance, and upon fulfillment of
the applicable conditions precedent and the other requirements set forth herein,
the LC Issuing Bank shall issue (or extend, amend or modify) such Letter of
Credit and provide notice and a copy thereof to the Administrative Agent, which
shall promptly furnish copies thereof to the Lenders.
22
(b) No Letter of Credit shall be requested or issued hereunder if,
after the issuance thereof, (i) the aggregate undrawn stated amounts of all
Letters of Credit outstanding would exceed $20,000,000; or (ii) the Outstanding
Credits would exceed the total Commitments.
(c) The Borrower hereby agrees to pay to the Administrative Agent for
the account of the LC Issuing Bank and, if they shall have purchased
participations in the reimbursement obligations of the Borrower pursuant to
subsection (d) below, the Lenders, on demand made by the LC Issuing Bank to the
Borrower, on and after each date on which the LC Issuing Bank shall pay any
amount under any Letter of Credit issued by the LC Issuing Bank, a sum equal to
the amount so paid plus interest on such amount from the date so paid by the LC
Issuing Bank until repayment to the LC Issuing Bank in full at a fluctuating
interest rate per annum equal to the interest rate applicable to Base Rate
Borrowings plus, if any amount paid by the LC Issuing Bank under a Letter of
Credit is not reimbursed by the Borrower within three Business Days, 2%.
(d) If the LC Issuing Bank shall not have been reimbursed in full for
any payment made by the LC Issuing Bank under a Letter of Credit issued by the
LC Issuing Bank on the date of such payment, the LC Issuing Bank shall give the
Administrative Agent and each Lender prompt notice thereof (an "LC PAYMENT
NOTICE") no later than 12:00 noon on the Business Day immediately succeeding the
date of such payment by the LC Issuing Bank. Each Lender severally agrees to
purchase a participation in the reimbursement obligation of the Borrower to the
LC Issuing Bank by paying to the Administrative Agent for the account of the LC
Issuing Bank an amount equal to such Lender's Commitment Percentage of such
unreimbursed amount paid by the LC Issuing Bank, plus interest on such amount at
a rate per annum equal to the Fed Funds Rate from the date of the payment by the
LC Issuing Bank to the date of payment to the LC Issuing Bank by such Lender.
Each such payment by a Lender shall be made not later than 3:00 P.M. on the
later to occur of (i) the Business Day immediately following the date of such
payment by the LC Issuing Bank and (ii) the Business Day on which Lender shall
have received an LC Payment Notice from the LC Issuing Bank. Each Lender's
obligation to make each such payment to the Administrative Agent for the account
of the LC Issuing Bank shall be several and shall not be affected by the
occurrence or continuance of a Potential Default or Event of Default or the
failure of any other Lender to make any payment under this Section 2.5(d). Each
Lender further agrees that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever.
(e) The failure of any Lender to make any payment to the Administrative
Agent for the account of the LC Issuing Bank in accordance with subsection (d)
above shall not relieve any other Lender of its obligation to make payment, but
no Lender shall be responsible for the failure of any other Lender. If any
Lender (a "non-performing Lender") shall fail to make any payment to the
Administrative Agent for the account of the LC Issuing Bank in accordance with
subsection (d) above within five Business Days after the LC Payment Notice
relating thereto, then, for so long as such failure shall continue, the LC
Issuing Bank shall be deemed, for purposes of Section 14.8 and Article XII
hereof, to be a Lender owed a Borrowing in an amount equal to the outstanding
principal amount due and payable by such non-performing Lender to the
Administrative Agent for the account of the LC Issuing Bank pursuant to
subsection (d) above. Any non-performing Lender and the Borrower (without
waiving any claim against such Lender for such Lender's failure to purchase a
participation in the reimbursement obligations of the
23
Borrower under subsection (d) above) severally agree to pay to the
Administrative Agent for the account of the LC Issuing Bank forthwith on demand
such amount, together with interest thereon for each day from the date such
Lender would have purchased its participation had it complied with the
requirements of subsection (d) above until the date such amount is paid to the
Administrative Agent at (i) in the case of the Borrower, the interest rate
applicable at the time to Base Rate Borrowings and (ii) in the case of such
Lender, the Fed Funds Rate.
(f) The payment obligations of each Lender under Section 2.5(d) and of
the Borrower under this Agreement in respect of any payment under any Letter of
Credit by the LC Issuing Bank shall be unconditional and irrevocable, and shall
be paid strictly in accordance with the terms of this Agreement under all
circumstances, including, without limitation, the following circumstances:
(i) any lack of validity or enforceability of this Agreement,
any other Credit Document or any other agreement or instrument relating
thereto or to such Letter of Credit;
(ii) any amendment or waiver of, or any consent to departure
from, the terms of this Agreement, any other Credit Document or such
Letter of Credit;
(iii) the existence of any claim, set-off, defense or other
right which the Borrower may have at any time against any beneficiary,
or any transferee, of such Letter of Credit (or any Persons for whom
any such beneficiary or any such transferee may be acting), the LC
Issuing Bank, or any other Person, whether in connection with this
Agreement, the transactions contemplated hereby, thereby or by such
Letter of Credit, or any unrelated transaction;
(iv) any statement or any other document presented under such
Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or
inaccurate in any respect;
(v) payment in good faith by the LC Issuing Bank under the
Letter of Credit issued by the LC Issuing Bank against presentation of
a draft or certificate that does not comply with the terms of such
Letter of Credit; or
(vi) any other circumstance or happening whatsoever, whether
or not similar to any of the foregoing.
(g) The Borrower assumes all risks of the acts and omissions of any
beneficiary or transferee of any Letter of Credit. Neither the LC Issuing Bank,
the Lenders nor any of their respective officers, directors, employees, agents
or Affiliates shall be liable or responsible for (i) the use that may be made of
such Letter of Credit or any acts or omissions of any beneficiary or transferee
thereof in connection therewith; (ii) the validity, sufficiency or genuineness
of documents, or of any endorsement thereon, even if such documents should prove
to be in any or all respects invalid, insufficient, fraudulent or forged; (iii)
payment by the LC Issuing Bank against presentation of documents that do not
comply with the terms of such Letter of Credit, including failure of any
documents to bear any reference or adequate reference to such Letter of Credit;
or (iv) any other circumstances whatsoever in making or failing to make payment
under
24
such Letter of Credit. Notwithstanding any provision to the contrary contained
in any Credit Document, the Borrower and each Lender shall have the right to
bring suit against the LC Issuing Bank, and the LC Issuing Bank shall be liable
to the Borrower and any Lender, to the extent of any direct, as opposed to
consequential, damages suffered by the Borrower or such Lender which the
Borrower or such Lender proves were caused by the LC Issuing Bank's willful
misconduct or gross negligence, including, in the case of the Borrower, the LC
Issuing Bank's willful failure to make timely payment under such Letter of
Credit following the presentation to it by the beneficiary thereof of a draft
and accompanying certificate(s) that strictly comply with the terms and
conditions of such Letter of Credit. In furtherance and not in limitation of the
foregoing, the LC Issuing Bank may accept sight drafts and accompanying
certificates presented under the Letter of Credit issued by the LC Issuing Bank
that appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary, and
payment against such documents shall not constitute willful misconduct or gross
negligence by the LC Issuing Bank. Notwithstanding the foregoing, no Lender
shall be obligated to indemnify the Borrower for damages caused by the LC
Issuing Bank's willful misconduct or gross negligence.
ARTICLE III
PAYMENT TERMS
SECTION 3.1. NOTES AND PAYMENTS.
The Borrowings are evidenced by the Notes, one payable to each Lender
in the amount of its Commitment. The Borrower must make each payment and
prepayment on the Obligations to the Administrative Agent's principal office in
Atlanta, Georgia, in immediately available funds by 1:00 p.m. on the day due;
otherwise, but subject to Section 3.6, that portion of the Obligations in
respect of which such payment or prepayment was made shall continue to accrue
interest until the Business Day upon which such payment shall be received by the
Administrative Agent at the time and in the manner specified above. The
Administrative Agent shall promptly pay to each Lender the part of any payment
or prepayment to which that Lender is entitled under this Agreement on the same
day the Administrative Agent receives the funds from the Borrower. Unless the
Administrative Agent has received notice from the Borrower before the date on
which any payment is due under this Agreement that the Borrower will not make
that payment in full, then on the date that payment is due the Administrative
Agent may assume that the Borrower has made the full payment due and the
Administrative Agent may, in reliance upon that assumption, cause to be
distributed to each Lender on that date the amount then due to each Lender. If
and to the extent the Borrower does not make the full payment due to the
Administrative Agent, each Lender shall repay to the Administrative Agent on
demand the amount distributed to that Lender by the Administrative Agent
together with interest for each day from the date that Lender received payment
from the Administrative Agent until the date that Lender repays the
Administrative Agent (unless such repayment is made on the same day as such
distribution), at an interest rate equal to the Fed Funds Rate.
SECTION 3.2. INTEREST AND PRINCIPAL PAYMENTS.
(a) INTEREST. Accrued interest on each LIBOR Rate Borrowing shall be
due and payable on the last day of its Interest Period. If any Interest Period
for a LIBOR Rate Borrowing
25
is greater than three months, then accrued interest shall also be due and
payable on the date three months after the commencement of the Interest Period.
Accrued interest on the unpaid principal amount of each Base Rate Borrowing
shall be due and payable in arrears on the last day of each March, June,
September and December, commencing on the first such date that follows the
Closing Date, and on the date such Borrowing becomes due and payable or is
otherwise paid in full.
(b) PRINCIPAL. The principal amount of all Borrowings shall be due and
payable on the Termination Date.
(c) PREPAYMENTS.
(i) The Borrower may, from time to time, by giving notice to
the Administrative Agent no later than three Business Days before the
date of the prepayment, prepay, without premium or penalty and in whole
or part, the principal amount of any Borrowing so long as:
(A) the notice by the Borrower specifies the amount
and Borrowing to be prepaid,
(B) each voluntary partial prepayment must be in a
principal amount of not less than $1,000,000 or a greater
integral multiple of $1,000,000, plus accrued interest on the
amount prepaid to the date of such prepayment, and
(C) the Borrower shall pay the Funding Loss, if any,
within 5 Business Days following an affected Lender's demand
and delivery to the Borrower of the certificate as provided in
Section 3.18. Conversions on the last day of Interest Period
pursuant to Section 3.10 are not prepayments.
(ii) The Borrower shall promptly notify the Administrative
Agent upon the receipt of any Net Cash Proceeds of any Asset
Disposition or Recovery Event and, at any time that such Net Cash
Proceeds received and not previously applied to any prepayment pursuant
to this Section 3.2(c)(ii) shall equal or exceed $10,000,000, the
Borrower shall prepay Borrowings, together with payment of any Funding
Losses, and/or deposit funds in the Cash Collateral Account in respect
of LC Outstandings pursuant to Section 12.1(d), as applicable, in an
aggregate amount equal to 100% (without duplication) of such Net Cash
Proceeds.
(iii) If at any time, the sum of the aggregate principal
amount of Borrowings outstanding plus LC Outstandings shall exceed the
total Commitments, the Borrower shall forthwith prepay Borrowings, and,
to the extent provided for by this Section 3.2(c)(iii), deposit funds
in the Cash Collateral Account in respect of LC Outstandings pursuant
to Section 12.1(d), in a principal amount equal to such excess,
together with accrued interest to the date of such prepayment on the
principal amount of Borrowings prepaid and any Funding Losses owing in
connection therewith.
(iv) Prepayments of the Borrowings pursuant to this Section
3.2(c) shall be applied, first, to prepay Base Rate Borrowings, second,
to prepay any LIBOR Rate
26
Borrowing that has an Interest Period the last day of which is the same
as the date of such requirement prepayment, and, third to prepay other
LIBOR Rate Borrowings, as selected by the Borrower, or, at the
Borrower's option, to cash collateralize such other LIBOR Rate
Borrowings (which cash collateral will be applied on the last day of
the Interest Period of each such LIBOR Rate Borrowing to prepay such
LIBOR Rate Borrowings).
SECTION 3.3. INTEREST OPTIONS.
Except as otherwise provided in this Agreement, Borrowings shall bear
interest at an annual rate equal to the lesser of (i) the Base Rate or the LIBOR
Rate plus the Applicable Margin, in each case as designated or deemed designated
by the Borrower, and (ii) the Maximum Rate; provided that the LIBOR Rate may not
be selected when an Event of Default or Potential Default has occurred and is
continuing.
SECTION 3.4. QUOTATION OF RATES.
The Borrower may contact the Administrative Agent prior to delivering a
Borrowing Request to receive an indication of the interest rates then in effect,
but the indicated rates do not bind the Administrative Agent or the Lenders or
affect the interest rate that is actually in effect when the Borrower makes a
Borrowing Request or on the Borrowing Date.
SECTION 3.5. DEFAULT RATE.
To the extent lawful, any amount payable under any Credit Document that
is not paid when due (including interest on any such unpaid amount) shall bear
interest from the date due (stated or by acceleration) at the Default Rate until
paid, regardless whether payment is made before or after entry of a judgment,
payable on demand.
SECTION 3.6. INTEREST RECAPTURE.
If the designated interest rate applicable to any amount exceeds the
Maximum Rate, the interest rate on that amount is limited to the Maximum Rate,
but any subsequent reductions in the designated rate shall not reduce the
interest rate thereon below the Maximum Rate until the total amount of accrued
interest equals the amount of interest that would have accrued if that
designated rate had always been in effect. If at maturity (stated or by
acceleration), or at final payment of the Notes, the total interest paid or
accrued is less than the interest that would have accrued if the designated
rates had always been in effect, then, at that time and to the extent lawful,
the Borrower shall pay an amount equal to the difference between (a) the lesser
of the amount of interest that would have accrued if the designated rates had
always been in effect and the amount of interest that would have accrued if the
Maximum Rate had always been in effect, and (b) the amount of interest actually
paid or accrued on the Notes.
SECTION 3.7. INTEREST AND FEE CALCULATIONS.
All computations of interest based on the prime lending rate of the
Administrative Agent shall be made by the Administrative Agent on the basis of a
year of 365 or 366 days, as the case may be. All computations of facility fees,
the LC Fee and interest based on the LIBOR Rate or the Fed Funds Rate shall be
made by the Administrative Agent on the basis of a year of 360 days
27
for the actual number of days (including the first day but excluding the last
day) occurring in the period for which such facility fees, the LC Fee or
interest are payable. Each determination by the Administrative Agent of an
interest rate hereunder shall be conclusive and binding for all purposes, absent
manifest error.
SECTION 3.8. MAXIMUM RATE.
Regardless of any provision contained in any Credit Document, no Lender
is entitled to contract for, charge, take, reserve, receive or apply, as
interest on all or any part of the Obligations, any amount in excess of the
Maximum Rate, and, if any Lender ever does so, then any excess shall be treated
as a partial prepayment of principal (without regard to Section 3.9) and any
remaining excess shall be refunded to the Borrower. In determining if the
interest paid or payable exceeds the Maximum Rate, the Borrower and the Lenders
shall, to the maximum extent lawful, (a) characterize any nonprincipal payment
as an expense, fee or premium rather than as interest, (b) exclude voluntary
prepayments and their effects, and (c) amortize, prorate, allocate and spread
the total amount of interest throughout the entire contemplated term of the
relevant Borrowings. However, if the Obligations are paid in full before the end
of their full contemplated term, and if the interest received for the period
that the Obligations were outstanding exceeds the Maximum Amount, then the
Lenders shall refund any excess (and the Lenders may not, to the extent lawful,
be subject to any penalties provided by any Legal Requirements for contracting
for, charging, taking, reserving or receiving interest in excess of the Maximum
Amount). If the Legal Requirements of the State of Texas are applicable for
purposes of determining the "Maximum Rate" or the "Maximum Amount", then those
terms mean the "indicated rate ceiling" from time to time in effect under
Chapter 303 of the Texas Finance Code. The Borrower agrees that Chapter 346 of
the Texas Finance Code (which regulates certain revolving credit loan accounts
and revolving tri-party accounts) does not apply to any Borrowings.
SECTION 3.9. INTEREST PERIODS.
When the Borrower requests a LIBOR Rate Borrowing, the Borrower may
elect the applicable interest period (each an "INTEREST PERIOD"), which may be,
at the Borrower's option, one, two, three or six months for LIBOR Rate
Borrowings, subject to Section 14.1 and the following conditions: (a) the
initial Interest Period for a LIBOR Rate Borrowing commences on the applicable
Borrowing Date or conversion date, and each subsequent Interest Period
applicable to any Borrowing commences on the day when the next preceding
applicable Interest Period expires; (b) if any Interest Period for a LIBOR Rate
Borrowing begins on a day for which no numerically corresponding Business Day in
the calendar month at the end of the Interest Period exists, then the Interest
Period ends on the last Business Day of that calendar month; (c) if the Borrower
is required to pay any portion of a LIBOR Rate Borrowing before the end of its
Interest Period in order to comply with the payment provisions of the Credit
Documents, the Borrower shall also pay any related Funding Loss; and (d) no more
than six Interest Periods may be in effect at one time.
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SECTION 3.10. CONVERSIONS.
The Borrower may in accordance with the procedures set forth below (a)
convert a LIBOR Rate Borrowing on the last day of the applicable Interest Period
to a Base Rate Borrowing, (b) convert a Base Rate Borrowing at any time to a
LIBOR Rate Borrowing, and (c) elect a new Interest Period for a LIBOR Rate
Borrowing to commence upon expiration of the then-current Interest Period;
provided that the Borrower may not convert to or select a new Interest Period
for a LIBOR Rate Borrowing at any time when an Event of Default or Potential
Default has occurred and is continuing. Any such conversion or election may be
made by telephonic request to the Administrative Agent no later than 10:00 a.m.
on the third Business Day before the conversion date or the last day of the
Interest Period, as the case may be (for conversion to a LIBOR Rate Borrowing or
election of a new Interest Period), and no later than 11:00 a.m. on the last day
of the Interest Period (for conversion to a Base Rate Borrowing). The Borrower
shall provide a Conversion Notice to the Administrative Agent no later than two
days after the date of the conversion or election. Absent the Borrower's
telephonic request for conversion or election of a new Interest Period or if an
Event of Default or Potential Default has occurred and is continuing, then, a
LIBOR Rate Borrowing shall be deemed converted to a Base Rate Borrowing
effective when the applicable Interest Period expires.
SECTION 3.11. ORDER OF APPLICATION.
Each payment (including proceeds from the exercise of any Rights) of
the Obligations shall be applied either (a) if no Event of Default or Potential
Default has occurred and is continuing, then in the order and manner specified
elsewhere herein, and if not so specified, then in the order and manner as the
Borrower directs, or (b) if an Event of Default or Potential Default has
occurred and is continuing or if the Borrower fails to give any direction
required under clause (a) above, then in the following order: (i) to all fees,
expenses, and indemnified amounts for which the Administrative Agent has not
been paid or reimbursed in accordance with the Credit Documents and, except
while an Event of Default under Section 11.1 has occurred and is continuing, as
to which the Borrower has been invoiced and has failed to pay within ten
Business Days of that invoice; (ii) to all fees, expenses and indemnified
amounts for which the LC Issuing Bank has not been paid or reimbursed in
accordance with the Credit Documents and, except while an Event of Default under
Section 11.1 has occurred and is continuing, as to which the Borrower has been
invoiced and has failed to pay within ten Business Days of that invoice; (iii)
to all fees, expenses and indemnified amounts for which any Lender has not been
paid or reimbursed in accordance with the Credit Documents (and if any payment
is less than all unpaid or unreimbursed fees and expenses, then that payment
shall be applied against unpaid and unreimbursed fees and expenses in the order
of incurrence or due date) and, except while an Event of Default under Section
11.1 has occurred and is continuing, as to which the Borrower has been invoiced
and has failed to pay within ten Business Days of that invoice; (iv) to accrued
interest on the principal amount of the Borrower's reimbursement obligations
outstanding in respect of Letters of Credit; (v) to the principal amount of the
Borrower's reimbursement obligations outstanding in respect of Letters of
Credit; (vi) to the cash collateralization of the Borrower's reimbursement
obligations in respect of LC Outstandings not paid pursuant to clause (v) by
deposit of funds in the Cash Collateral Account; (vii) to accrued interest on
the principal amount of the Borrowings outstanding; (viii) to the principal
amount of the Borrowings outstanding in such order as the Required Lenders may
elect (but the Lenders agree to apply
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proceeds in an order that will minimize any Funding Loss); and (ix) to the
remaining Obligations in the order and manner the Required Lenders deem
appropriate.
SECTION 3.12. SHARING OF PAYMENTS, ETC.
Except as otherwise specifically provided, (a) principal and interest
payments on Borrowings and, if the Lenders have purchased a participation in the
Borrower's reimbursement obligations in respect of LC Outstandings, such
reimbursement obligations, shall be shared by the Lenders in accordance with
their respective Commitment Percentages and (b) each other payment on the
Obligations shall be shared by the Lenders in the proportion that the
Obligations are owed to the Lenders on the date of the payment. If any Lender
obtains any payment or prepayment with respect to the Obligations (whether
voluntary, involuntary or otherwise, including, without limitation, as a result
of exercising its Rights under Section 3.13) that exceeds the part of that
payment or prepayment that it is then entitled to receive under the Credit
Documents, then that Lender shall purchase from the other Lenders participations
that will cause the purchasing Lender to share the excess payment or prepayment
ratably with each other Lender. If all or any portion of any excess payment or
prepayment is subsequently recovered from the purchasing Lender, then the
purchase shall be rescinded and the purchase price restored to the extent of the
recovery. The Borrower agrees that any purchase of a participation in any
Outstanding Credits from a Lender may, to the fullest extent lawful, exercise
all of its Rights of payment (including the Right of offset) with respect to
that participation as fully as if that purchaser were the direct creditor of the
Borrower in the amount of that participation.
SECTION 3.13. OFFSET.
If an Event of Default has occurred and is continuing, each Lender is
entitled to exercise (for the benefit of all the Lenders) the Rights of offset
and banker's Lien against each and every account and other property, or any
interest therein, that the Borrower or any Company, other than an Excluded
Subsidiary, may now or hereafter have with, or which is now or hereafter in the
possession of, that Lender to the extent of the full amount of the Obligations
then matured and owed (directly or participated) to it.
SECTION 3.14. BOOKING BORROWINGS.
To the extent lawful, any Lender may make, carry or transfer its
Borrowings at, to or for the account of any of its branch offices or the office
or branch of any of its Affiliates. However, no Affiliate or branch is entitled
to receive any greater payment under Section 3.16 than the transferor Lender
would have been entitled to receive with respect to those Borrowings, and a
transfer may not be made if, as a direct result of it, Section 3.16 or 3.17
would apply to any of the Obligations. If any of the conditions of Sections 3.16
or 3.17 ever apply to a Lender, that Lender shall, to the extent possible, carry
or transfer its Borrowings at, to or for the account of any of its branch
offices or the office or branch of any of its Affiliates so long as the transfer
is consistent with the other provisions of this section, does not create any
burden or adverse circumstance for that Lender that would not otherwise exist,
and eliminates or ameliorates the conditions of Section 3.16 or 3.17 as
applicable.
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SECTION 3.15. BASIS UNAVAILABLE OR INADEQUATE FOR LIBOR RATE.
If, on or before any date when a LIBOR Rate is to be determined for a
Borrowing, the Administrative Agent reasonably determines that the basis for
determining the applicable rate is not available or any Lender reasonably
determines that the resulting rate does not accurately reflect the cost to that
Lender of making or converting Borrowings at that rate for the applicable
Interest Period, then the Administrative Agent shall promptly notify the
Borrower and the Lenders of that determination (which is conclusive and binding
on the Borrower absent manifest error) and the applicable Borrowing shall bear
interest at the sum of the Base Rate plus the Applicable Margin. Until the
Administrative Agent notifies the Borrower that those circumstances no longer
exist, the Lenders' commitments under this Agreement to make, or to convert to,
LIBOR Rate Borrowings, as the case may be, are suspended.
SECTION 3.16. ADDITIONAL COSTS.
(a) RESERVES. With respect to any LIBOR Rate Borrowing (i) if any
change in any present Legal Requirement, any change in the interpretation or
application of any present Legal Requirement, or any future Legal Requirement
imposes, modifies or deems applicable (or if compliance by any Lender with any
requirement of any Governmental Authority results in) any requirement that any
reserves (including, without limitation, any marginal, emergency, supplemental
or special reserves) be maintained (other than any reserve included in the LIBOR
Reserve Percentage), and (ii) if those reserves reduce any sums receivable by
that Lender under this Agreement or increase the costs incurred by that Lender
in advancing or maintaining any portion of any LIBOR Rate Borrowing, then (A)
that Lender (through the Administrative Agent) shall deliver to the Borrower a
certificate setting forth in reasonable detail the calculation of the amount
necessary to compensate it for its reduction or increase (which certificate is
conclusive and binding absent manifest error), and (B) the Borrower shall pay
that amount to that Lender within five Business Days after demand. The
provisions of and undertakings and indemnification in this subsection (a)
survive the satisfaction and payment of the Obligations and termination of this
Agreement.
(b) CAPITAL ADEQUACY. With respect to any Borrowing, if any change in
any present Legal Requirement (whether or not having the force of law), any
change in the interpretation or application of any present Legal Requirement
(whether or not having the force of law), or any future Legal Requirement
(whether or not having the force of law) regarding capital adequacy, or if
compliance by any Lender with any request, directive or requirement imposed in
the future by any Governmental Authority regarding capital adequacy, or if any
change by any Lender, its holding company, or its applicable lending office in
its written policies or in the risk category of this transaction, in any of the
foregoing events or circumstances, reduces the rate of return on its capital as
a consequence of its obligations under this Agreement to a level below that
which it otherwise could have achieved (taking into consideration its policies
with respect to capital adequacy) by an amount deemed by it to be material (and
it may, in determining the amount, utilize reasonable assumptions and
allocations of costs and expenses and use any reasonable averaging or
attribution method), then (unless the effect is already reflected in the rate of
interest then applicable under this Agreement) the Administrative Agent or that
Lender (through the Administrative Agent) shall notify the Borrower and deliver
to the Borrower a certificate setting forth in reasonable detail the calculation
of the amount necessary to compensate it (which
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certificate is conclusive and binding absent manifest error), and the Borrower
shall pay that amount to the Administrative Agent or that Lender within five
Business Days after demand. The provisions of and undertakings and
indemnification in this subsection (b) shall survive the satisfaction and
payment of the Obligations and termination of this Agreement.
(c) TAXES. Subject to Section 3.19, any Taxes payable by the
Administrative Agent or any Lender or ruled (by a Governmental Authority)
payable by the Administrative Agent or any Lender in respect of this Agreement
or any other Credit Document shall, if permitted by Legal Requirement, be paid
by the Borrower, together with interest and penalties, if any, except for Taxes
payable on or measured by the overall net income or capital of the
Administrative Agent or that Lender (or the Administrative Agent or that Lender,
as the case may be, together with any other Person with whom the Administrative
Agent or that Lender files a consolidated, combined, unitary or similar Tax
return) and except for interest and penalties incurred as a result of the gross
negligence or willful misconduct of the Administrative Agent or any Lender. The
Administrative Agent or that Lender (through the Administrative Agent) shall
notify the Borrower and deliver to the Borrower a certificate setting forth in
reasonable detail the calculation of the amount of payable Taxes, which
certificate is conclusive and binding (absent manifest error), and the Borrower
shall pay that amount to the Administrative Agent for its account or the account
of that Lender, as the case may be within five Business Days after demand. If
the Administrative Agent or that Lender subsequently receives a refund of the
Taxes paid to it by the Borrower, then the recipient shall promptly pay the
refund to the Borrower.
SECTION 3.17. CHANGE IN LEGAL REQUIREMENTS.
If any Legal Requirement makes it unlawful for any Lender to make or
maintain LIBOR Rate Borrowings, then that Lender shall promptly notify the
Borrower and the Administrative Agent, and (a) as to undisbursed funds, that
requested Borrowing shall be made as a Base Rate Borrowing, and (b) as to any
outstanding Borrowing, (i) if maintaining the Borrowing until the last day of
the applicable Interest Period is unlawful, then the Borrowing shall be
converted to a Base Rate Borrowing as of the date of notice, in which event the
Borrower will not be required to pay any related Funding Loss, or (ii) if not
prohibited by Legal Requirement, then the Borrowing shall be converted to a Base
Rate Borrowing as of the last day of the applicable Interest Period, or (iii) if
any conversion will not resolve the unlawfulness, then the Borrower shall
promptly prepay the Borrowing, without penalty but with related Funding Loss.
SECTION 3.18. FUNDING LOSS.
The Borrower shall indemnify each Lender against, and pay to it within
five Business Days following demand and delivery by such Lender to the Borrower
of the certificate herein provided, any Funding Loss of that Lender. When any
Lender demands that the Borrower pay any Funding Loss, that Lender shall deliver
to the Borrower and the Administrative Agent a certificate setting forth in
reasonable detail the basis for imposing Funding Loss and the calculation of the
amount, which calculation is conclusive and binding absent manifest error. The
provisions of and undertakings and indemnification in this section survive the
satisfaction and payment of the Obligations and termination of this Agreement.
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SECTION 3.19. FOREIGN LENDERS, PARTICIPANTS AND ASSIGNEES.
Each Lender, Participant (by accepting a participation interest under
this Agreement) and Assignee (by executing an Assignment) that is not organized
under the Legal Requirements of the United States of America or one of its
states (a) represents to the Administrative Agent and the Borrower that (i) no
Taxes are required to be withheld by the Administrative Agent or the Borrower
with respect to any payments to be made to it in respect of the Obligations and
(ii) it has furnished to the Administrative Agent and the Borrower two duly
completed copies of either U.S. Internal Revenue Service Form W-8BEN or W-8ECI
or any other form acceptable to the Administrative Agent and the Borrower that
entitles it to a complete exemption from U.S. federal withholding Tax on all
interest or fee payments under the Credit Documents, and (b) covenants to (i)
provide the Administrative Agent and the Borrower a new Form W-8BEN or W-8ECI or
other form acceptable to the Administrative Agent and the Borrower upon the
expiration or obsolescence according to Legal Requirement of any previously
delivered form, duly executed and completed by it, entitling it to a complete
exemption from U.S. federal withholding Tax on all interest and fee payments
under the Credit Documents, and (ii) comply from time to time with all Legal
Requirements with regard to the withholding Tax exemption. If any of the
foregoing is not true at any time or the applicable forms are not provided, then
the Borrower and the Administrative Agent (without duplication) may deduct and
withhold from interest and fee payments under the Credit Documents any Tax at
the maximum rate under the IRC or other applicable Legal Requirement, and
amounts so deducted and withheld shall be treated as paid to that Lender,
Participant or Assignee, as the case may be, for all purposes under the Credit
Documents.
SECTION 3.20. DISCHARGE AND REINSTATEMENT.
Each Company's obligations under the Credit Documents remain in full
force and effect until no Lender has any commitment to extend credit under the
Credit Documents and the Obligations are fully paid (except for provisions under
the Credit Documents which by their terms expressly survive payment of the
Obligations and termination of the Credit Documents). If any payment under any
Credit Document is ever rescinded or must be restored or returned for any
reason, then all Rights and obligations under the Credit Documents in respect of
that payment are automatically reinstated as though the payment had not been
made when due.
ARTICLE IV
FEES
SECTION 4.1. TREATMENT OF FEES.
The fees described in this Section 4.1 (a) are not compensation for the
use, detention or forbearance of money, (b) are in addition to, and not in lieu
of, interest and expenses otherwise described in this Agreement, (c) are payable
in accordance with Section 3.1, (d) are non-refundable and (e) to the fullest
extent permitted by Legal Requirement, bear interest, if not paid when due, at
the Default Rate.
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SECTION 4.2. FACILITY FEE.
The Borrower shall pay to the Administrative Agent for the account of
each Lender the Facility Fee from the date hereof until the Termination Date,
payable on the last day of each March, June, September and December, commencing
on the first such date that follows the Closing Date, and on the Termination
Date.
SECTION 4.3. LETTER OF CREDIT FEES.
The Borrower shall pay to the Administrative Agent for the account of
each Lender a fee (the "LC FEE") on the average daily amount of the sum of the
undrawn stated amounts of all Letters of Credit outstanding on each such day,
from the date hereof until the later to occur of the Termination Date and the
date that no Letters of Credit are outstanding, payable on the last day of each
March, June, September and December, commencing on the first such date that
follows the date of this Agreement and such later date, at a rate equal at all
times to the Applicable Margin in effect from time to time for LIBOR Rate
Borrowings. In addition, the Borrower shall pay to the LC Issuing Bank such fees
for the issuance and maintenance of Letters of Credit and for drawings
thereunder as may be separately agreed between the Borrower and the LC Issuing
Bank.
ARTICLE V
CONDITIONS PRECEDENT
This Agreement shall not be effective unless the Administrative Agent
has received all of the items described in Schedule 5. In addition, no Lender is
obligated to fund (as opposed to continue or convert) any Borrowing, and the LC
Issuing Bank is not obligated to issue any Letter of Credit, unless on the date
of the applicable Extension of Credit (and after giving effect to the requested
Extension of Credit): (a) the Administrative Agent has timely received a
properly completed and duly executed Borrowing Request or Request for Issuance,
as applicable; (b) all of the representations and warranties of the Companies in
the Credit Documents are true and correct in all material respects (unless they
speak to a specific date or are based on facts which have changed by
transactions contemplated or expressly permitted by this Agreement); (c) no
Material Adverse Event, Event of Default or Potential Default has occurred and
is continuing; and (d) no limitation in Section 2.1 or 2.5 is or would be
exceeded by the requested Extension of Credit. Each Borrowing Request and
Request for Issuance, however delivered, constitutes the Borrower's
representation and warranty that the conditions in subsections (b) through (d)
above are satisfied. Upon the Administrative Agent's or any Lender's reasonable
request, the Borrower shall deliver to the Administrative Agent or such Lender
evidence substantiating any of the matters in the Credit Documents that are
necessary to enable the Borrower to qualify for the requested Extension of
Credit. Each condition precedent in this Agreement (including, without
limitation, those on Schedule 5) is material to the transactions contemplated by
this Agreement, and time is of the essence with respect to each condition
precedent.
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ARTICLE VI
GUARANTIES
The Borrower shall cause each Significant Subsidiary (other than any
Excluded Subsidiary of the Borrower), whether now existing or in the future
formed or acquired as permitted by the Credit Documents, to unconditionally
guarantee the full payment and performance of the Obligations by execution of a
Guaranty. Any Guaranty delivered by a Guarantor after the Closing Date pursuant
to this Article VI shall be accompanied by (a) an opinion of counsel to such
Guarantor as to the enforceability of such Guaranty and such other matters as
the Administrative Agent may reasonably request, (b) certified copies of the
Constituent Documents of such Guarantor, (c) certified copies of all corporate
or partnership (as the case may be) authorizations and approvals of Governmental
Authorities required in connection with the execution, delivery and performance
by such Guarantor of such Guaranty, and (d) such other certificates, documents
and other information regarding such Guarantor as the Administrative Agent may
reasonably request.
ARTICLE VII
REPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants to the Administrative Agent, the
LC Issuing Bank and the Lenders as follows:
SECTION 7.1. PURPOSE.
The Borrower will use the proceeds of the Extensions of Credit for (i)
general purposes, including without limitation the making of Investments in
Subsidiaries and Affiliates of the Borrower, (ii) acquisitions and (iii) capital
expenditures. No Company is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or
carrying any "margin stock" within the meaning of the Margin Regulations, and no
part of the proceeds of any Borrowing will be used, directly or indirectly, for
a purpose that violates any Legal Requirement, including the Margin Regulations.
SECTION 7.2. SUBSIDIARIES AND SIGNIFICANT SUBSIDIARIES.
Schedule 7.2 describes the Borrower, all of its direct and indirect
Subsidiaries and all of its Significant Subsidiaries as of the date hereof.
SECTION 7.3. EXISTENCE, AUTHORITY AND GOOD STANDING.
Each Company (other than any Excluded Subsidiary) is duly organized,
validly existing and in good standing under the Legal Requirements of its
jurisdiction of formation. Except where not a Material Adverse Event, each such
Company is duly qualified to transact business and is in good standing in each
jurisdiction where the nature and extent of its business and properties require
due qualification and good standing (each of which jurisdictions is identified
on Schedule 7.2). Each Company (other than any Excluded Subsidiary) possesses
all requisite authority and power to conduct its business as is now being
conducted and as proposed under the
35
Credit Documents to be conducted and to own and operate its assets as now owned
and operated and as proposed to be owned and operated under the Credit
Documents.
SECTION 7.4. AUTHORIZATION AND CONTRAVENTION.
The execution and delivery by each Company of each Credit Document to
which it is a party and the performance by it of its obligations under those
Credit Documents (a) are within its corporate, partnership or comparable
organizational powers, (b) have been duly authorized by all necessary corporate,
partnership or comparable organizational action, (c) require no notice to,
consents or approval of, action by or filing with, any Governmental Authority
(except any action or filing that has been taken or made on or before the
Closing Date), (d) do not violate any provision of any of its Constituent
Documents, and (e) except violations that individually or collectively are not a
Material Adverse Event, do not violate any provision of Legal Requirement
applicable to it or any material agreement to which it is a party.
SECTION 7.5. BINDING EFFECT.
Upon execution and delivery by all parties to it, each Credit Document
will constitute a legal and binding obligation of each Company party to it,
enforceable against it in accordance with that Credit Document's terms except as
that enforceability may be limited by Debtor Laws and general principles of
equity.
SECTION 7.6. CURRENT FINANCIALS.
The Current Financials were prepared in accordance with GAAP and
present fairly, in all material respects, the consolidated financial condition,
results of operations and cash flows of the Companies as of, and for the portion
of the fiscal year ending on their dates (subject only to normal year-end
adjustments for interim statements). Except for transactions directly related
to, specifically contemplated by or expressly permitted by the Credit Documents,
no material adverse changes have occurred in such consolidated financial
condition from that shown in the Current Financials.
SECTION 7.7. SOLVENCY.
Each of the Borrower and each Guarantor is Solvent.
SECTION 7.8. LITIGATION.
Except as disclosed on Schedule 7.8 and matters covered (subject to
reasonable and customary deductible and retention) by insurance or
indemnification agreements as to which the insurer or indemnifying party, as
applicable, has acknowledged liability, (a) no Company is subject to, or aware
of the threat of, any Litigation that is reasonably likely to be determined
adversely to any Company and, if so adversely determined, would be a Material
Adverse Event, and (b) no outstanding and unpaid judgments against any Company
exist that would be a Material Adverse Event.
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SECTION 7.9. TAXES.
Except where not a Material Adverse Event, (a) all Tax returns of each
Company required to be filed have been filed (or extensions have been granted)
before delinquency, and (b) all Taxes imposed upon each Company that are due and
payable have been paid before delinquency except as being contested as permitted
by Section 8.5.
SECTION 7.10. COMPLIANCE WITH LAW AND ENVIRONMENTAL MATTERS.
Except as disclosed on Schedule 7.10, (a) no Company has received
notice from any Governmental Authority that it has actual or potential
Environmental Liability and no Company has knowledge that it has any
Environmental Liability, which actual or potential Environmental Liability in
either case constitutes a Material Adverse Event, and (b) no Company has
received notice from any Governmental Authority that any Real Property is
affected by, and no Company has knowledge that any Real Property is affected by,
any Release of any Hazardous Substance which constitutes a Material Adverse
Event. Further, except as otherwise provided in any Credit Document, each
Company (other than any Excluded Subsidiary) is in compliance with clause (a) of
Section 9.6.
SECTION 7.11. EMPLOYEE PLANS.
Except as disclosed on Schedule 7.11 or where not a Material Adverse
Event, (a) no Employee Plan subject to ERISA has incurred an "accumulated
funding deficiency" (as defined in Section 302 of ERISA or Section 512 of the
IRC), (b) neither any Company nor any ERISA Affiliate has incurred liability,
except for liabilities for premiums that have been paid or that are not past
due, under ERISA to the PBGC in connection with any Employee Plan, (c) neither
any Company nor any ERISA Affiliate has withdrawn in whole or in part from
participation in a Multiemployer Plan in a manner that has given rise to a
withdrawal liability under Title IV of ERISA, (d) neither the Borrower nor any
ERISA Affiliate has engaged in any "prohibited transaction" (as defined in
Section 406 of ERISA or Section 4975 of the IRC), (e) no "reportable event" (as
defined in Section 4043 of ERISA) has occurred excluding events for which the
notice requirement is waived under applicable PBGC regulations, (f) neither any
Company nor any ERISA Affiliate has any liability, or is subject to any Lien,
under ERISA or the IRC to or on account of any Employee Plan, (g) each Employee
Plan subject to ERISA and the IRC complies in all material respects, both in
form and operation, with ERISA and the IRC, and (h) no Multiemployer Plan
subject to the IRC is in reorganization within the meaning of Section 418 of the
IRC. None of the matters disclosed on Schedule 7.11 give rise to any other
"reportable events", as defined above.
SECTION 7.12. DEBT.
No Company has any Debt except as described on Schedule 7.12 or
otherwise incurred after the date hereof in accordance with this Agreement.
SECTION 7.13. PROPERTIES; LIENS.
Each Company (other than any Excluded Subsidiary) has good and
indefeasible title to all of its property reflected on the Current Financials as
being owned by it except for property
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that is obsolete or that has been disposed of in the ordinary course of business
between the date of the Current Financials and the date of this Agreement or,
after the date of this Agreement, as permitted by Sections 9.8 and 9.9. No Lien
exists on any property of any Company (other than any Excluded Subsidiary)
except as described on Schedule 7.13 and other Permitted Liens. No Company
(other than any Excluded Subsidiary) is party or subject to any agreement,
instrument or order which in any way restricts any such Company's ability to
allow Liens to exist upon any of its assets except relating to Permitted Liens.
SECTION 7.14. GOVERNMENTAL REGULATIONS.
No Company is subject to regulation under the Investment Company Act of
1940 or the Public Utility Holding Company Act of 1935.
SECTION 7.15. TRANSACTIONS WITH AFFILIATES.
Except as otherwise disclosed on Schedule 7.15 or permitted by Section
9.5, no Company is a party to a material transaction with any of its Affiliates.
SECTION 7.16. LEASES.
Except where not a Material Adverse Event, (a) each Company enjoys
peaceful and undisturbed possession under all leases necessary for the operation
of its properties and assets, and (b) all material leases under which any
Company is a lessee are in full force and effect.
SECTION 7.17. LABOR MATTERS.
Except where not a Material Adverse Event, (a) no actual or threatened
strikes, labor disputes, slow downs, walkouts, work stoppages or other concerted
interruptions of operations that involve any employees employed at any time in
connection with the business activities or operations at the Real Property
exist, (b) hours worked by and payment made to the employees of any Company or
any Predecessor have not been in violation of the Fair Labor Standards Act or
any other applicable Legal Requirements pertaining to labor matters, (c) all
payments due from any Company for employee health and welfare insurance,
including, without limitation, workers compensation insurance, have been paid or
accrued as a liability on its books, and (d) the business activities and
operations of each Company are in compliance with OSHA and other applicable
health and safety Legal Requirements.
SECTION 7.18. INTELLECTUAL PROPERTY.
Except where not a Material Adverse Event, (a) each Company owns or has
the right to use all material licenses, patents, patent applications,
copyrights, service marks, trademarks, trademark applications and trade names
necessary to continue to conduct its businesses as presently conducted by it and
proposed to be conducted by it immediately after the date of this Agreement, (b)
each Company is conducting its business without infringement or claim of
infringement of any license, patent, copyright, service xxxx, trademark, trade
name, trade secret or other intellectual property right of others and (c) no
infringement or claim of infringement by others of any material license, patent,
copyright, service xxxx, trademark, trade name, trade secret or other
intellectual property of any Company exists.
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SECTION 7.19. INSURANCE.
All insurance required under Section 8.9 is in full force and effect.
SECTION 7.20. RESTRICTIONS ON DISTRIBUTIONS. Except as disclosed on
Schedule 7.20, no Subsidiary (other than any Excluded Subsidiary) of the
Borrower is subject to any restriction on such Subsidiary's ability to directly
or indirectly declare, make or pay Distributions to the Borrower.
SECTION 7.21. FULL DISCLOSURE.
Each fact or condition relating to any Company's financial condition,
business or property that is a Material Adverse Event has been disclosed in
writing to the Administrative Agent. All information previously furnished by any
Company to the Administrative Agent in connection with the Credit Documents (the
"DISCLOSED INFORMATION") was (and all information furnished in the future by any
Company to the Administrative Agent will be) true and accurate in all material
respects. As of the Closing Date, the Disclosed Information taken as a whole,
was not misleading in any material respect and did not omit to disclose any
matter the failure of which to be disclosed would result in any information
contained in the Disclosed Information being misleading in any material respect.
ARTICLE VIII
AFFIRMATIVE COVENANTS
Until the Commitments have been terminated and the Obligations have
been fully paid and performed, the Borrower covenants and agrees with the
Administrative Agent, the LC Issuing Bank and the Lenders that, without first
obtaining the Required Lenders' written consent to the contrary:
SECTION 8.1. CERTAIN ITEMS FURNISHED.
The Borrower shall furnish or shall cause the following to be furnished
to each Lender:
(a) ANNUAL FINANCIALS OF THE BORROWER. Promptly after preparation but
no later than 90 days after the last day of each fiscal year of the Borrower,
Financials showing the consolidated financial condition and results of
operations of the Borrower and its Subsidiaries as of, and for the year ended
on, that last day setting forth in comparative form the figures for the previous
fiscal year, accompanied by (i) the opinion, without material qualification, of
KPMG LLP or other firm of nationally-recognized independent certified public
accountants reasonably acceptable to the Required Lenders, based on an audit
(other than in the case of consolidating Financials) using generally accepted
auditing standards, that those Financials were prepared in accordance with GAAP
and present fairly, in all material respects, the consolidated and consolidating
financial condition and results of operations of the Borrower and its
Subsidiaries, and (ii) a related Compliance Certificate from a Responsible
Officer, on behalf of the Borrower.
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(b) QUARTERLY REPORTS. Promptly after preparation but no later than 45
days after the last day of (i) each of the first three fiscal quarters of the
Borrower and the Companies each year, Financials showing the consolidated
financial condition and results of operations of the Borrower and its
Subsidiaries for that fiscal quarter and for the period from the beginning of
the current fiscal year to the last day of that fiscal quarter setting forth in
each case in comparative form the figures for the corresponding quarter and the
corresponding portion of the previous fiscal year, accompanied, in each case, by
a related Compliance Certificate, together with a completed copy of the schedule
to that certificate, signed by a Responsible Officer, on behalf of the Borrower
and (ii) each fiscal quarter of the Borrower prior to the Completion Date, a
report detailing the progress of the FINA/BASF Project, in form and substance
satisfactory to the Administrative Agent.
(c) OTHER REPORTS. Promptly after preparation and distribution,
accurate and complete copies of all reports and other material communications
about material financial matters or material corporate plans or projections by
or for any Company for distribution to any Governmental Authority or any
creditor, other than credit, trade and other reports prepared and distributed in
the ordinary course of business and information otherwise furnished to the
Administrative Agent and the Lenders under this Agreement.
(d) EMPLOYEE PLANS. As soon as possible and within 30 days after any
Company knows that any event which would constitute a reportable event under
Section 4043(b) of Title IV of ERISA with respect to any Employee Plan subject
to ERISA has occurred, or that the PBGC has instituted or will institute
proceedings under ERISA to terminate that plan, deliver a certificate of a
Responsible Officer of the Borrower setting forth details as to that reportable
event and the action that the Borrower or an ERISA Affiliate, as the case may
be, proposes to take with respect to it, together with a copy of any notice of
that reportable event which may be required to be filed with the PBGC, or any
notice delivered by the PBGC evidencing its intent to institute those
proceedings or any notice to the PBGC that the plan is to be terminated, as the
case may be. For all purposes of this section, each Company is deemed to have
all knowledge of all facts attributable to the plan administrator under ERISA.
(e) OTHER NOTICES. Notice, promptly after the Borrower knows, of (i)
the existence and status of any Litigation that is reasonably likely to be
adversely determined and, if determined adversely to any Company, would be a
Material Adverse Event, (ii) any change in any material fact or circumstance
represented or warranted by any Company in any Credit Document, (iii) an Event
of Default or Potential Default, specifying the nature thereof and what action
the Companies have taken, are taking or propose to take with respect to such
event, (iv) any default or potential default under any FINA/BASF Contract, and
(v) the Completion Date.
(f) OTHER INFORMATION. Promptly when reasonably requested by the
Administrative Agent, the LC Issuing Bank or any Lender, such reasonable
information (not otherwise required to be furnished under this Agreement) about
any Company's business affairs, assets and liabilities.
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SECTION 8.2. USE OF CREDIT.
The Borrower shall use the proceeds of Borrowings only for the purposes
specified in this Agreement.
SECTION 8.3. BOOKS AND RECORDS.
The Borrower shall, and shall cause each other Company to, maintain
books, records, and accounts necessary to prepare Financials in accordance with
GAAP.
SECTION 8.4. INSPECTIONS.
Upon reasonable request and subject to compliance with applicable
safety standards, with contractual privilege and non-disclosure agreements, and
with the same conditions applicable to any Company in respect of property of
that Company on the premises of other Persons, the Borrower shall, and shall
cause each other Company to, allow the Administrative Agent, the LC Issuing Bank
or any Lender (or their respective Representatives) to inspect any of its
properties, to review reports, files and other records and to make and take away
copies thereof, to conduct reasonable tests or investigations, and to discuss
any of its affairs, conditions and finances with its other creditors, directors,
officers, employees or representatives from time to time, during reasonable
business hours.
SECTION 8.5. TAXES.
The Borrower shall, and shall cause each other Company to, promptly pay
when due any and all Taxes except Taxes that are being contested in good faith
by lawful proceedings diligently conducted, against which reserve or other
provision required by GAAP has been made, and in respect of which levy and
execution of any Lien sufficient to be enforced has been and continues to be
stayed.
SECTION 8.6. PAYMENT OF MATERIAL OBLIGATIONS.
The Borrower shall, and shall cause each other Company (other than any
Excluded Subsidiary) to, promptly pay (or renew and extend) all of its material
obligations as they become due (unless the obligations are being contested in
good faith by, if required, appropriate proceedings).
SECTION 8.7. EXPENSES.
Within ten Business Days after demand accompanied by an invoice
describing the costs, fees and expenses in reasonable detail (and subject to any
limitations separately agreed to in writing by the Borrower and the
Administrative Agent in respect of costs, fees and expenses of the
Administrative Agent or any of its Representatives), the Borrower shall pay (a)
all costs, fees and reasonable expenses paid or incurred by the Administrative
Agent incident to any Credit Document (including the reasonable fees and
expenses of the Administrative Agent's counsel in connection with the
negotiation, preparation, delivery and execution of the Credit Documents and any
related amendment, waiver or consent) and (b) all reasonable costs and expenses
incurred by the Administrative Agent, the LC Issuing Bank or any Lender in
connection with the
41
enforcement of the obligations of any Company under the Credit Documents or the
exercise of any Rights under the Credit Documents (including reasonable
attorneys' fees and court costs), all of which are part of the Obligations,
bearing interest (if not paid within ten Business Days after demand accompanied
by an invoice describing the costs, fees and expenses in reasonable detail) on
the portion thereof from time to time unpaid at the Default Rate until paid.
SECTION 8.8. MAINTENANCE OF EXISTENCE, ASSETS AND BUSINESS.
The Borrower shall, and shall cause each other Company (other than any
Excluded Subsidiary) to, (a) except in connection with dispositions permitted
under Section 9.8, mergers, consolidations and dissolutions permitted under
Section 9.9 and statutory conversions to another form of entity as permitted by
applicable Legal Requirements, maintain its existence and good standing in its
state of formation, and (b) except where not a Material Adverse Event, (i)
maintain its authority to transact business and good standing in all other
states, (ii) maintain all licenses, permits and franchises (including
Environmental Permits) necessary for its business, and (iii) keep all of its
material assets that are useful in and necessary to its business in good working
order and condition (ordinary wear and tear excepted) and make all necessary
repairs and replacements.
SECTION 8.9. INSURANCE.
The Borrower shall, and shall cause each other Company (other than any
Excluded Subsidiary) to, at its cost and expense, maintain with financially
sound, responsible and reputable insurance companies or associations (or, as to
workers' compensation or similar insurance, with an insurance fund or by
self-insurance authorized by the jurisdictions in which it operates) insurance
concerning its properties and businesses against casualties and contingencies
and of types and in amounts (and with co-insurance and deductibles) as is
customary in the case of similar businesses.
SECTION 8.10. ENVIRONMENTAL MATTERS.
The Borrower shall, and shall cause each other Company to, (a) operate
and manage its businesses and otherwise conduct its affairs in compliance with
all Environmental Laws and Environmental Permits except to the extent
noncompliance does not constitute a Material Adverse Event, (b) promptly deliver
to the Administrative Agent a copy of any notice received from any Governmental
Authority alleging that any such Company is not in compliance with any
Environmental Law or Environmental Permit if the allegation constitutes a
Material Adverse Event, and (c) promptly deliver to the Administrative Agent a
copy of any notice received from any Governmental Authority alleging that any
such Company has any potential Environmental Liability if the allegation
constitutes a Material Adverse Event.
SECTION 8.11. INDEMNIFICATION.
(a) AS USED IN THIS SECTION: (I) "INDEMNITEE" MEANS THE ADMINISTRATIVE
AGENT, THE LC ISSUING BANK, EACH LENDER, EACH PRESENT AND FUTURE AFFILIATE (WITH
WHICH ANY COMPANY HAS ENTERED INTO A WRITTEN CONTRACTUAL ARRANGEMENT) OF THE
ADMINISTRATIVE AGENT, THE LC ISSUING BANK OR ANY LENDER, EACH PRESENT AND FUTURE
42
REPRESENTATIVE OF THE ADMINISTRATIVE AGENT, THE LC ISSUING BANK, ANY LENDER OR
ANY OF THOSE AFFILIATES AND EACH PRESENT AND FUTURE SUCCESSOR AND PERMITTED
ASSIGN OF THE ADMINISTRATIVE AGENT, THE LC ISSUING BANK, ANY LENDER OR ANY OF
THOSE AFFILIATES OR REPRESENTATIVES; AND (II) "INDEMNIFIED LIABILITIES" MEANS
ALL KNOWN AND UNKNOWN, FIXED AND CONTINGENT, ADMINISTRATIVE, INVESTIGATIVE,
JUDICIAL AND OTHER CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, INVESTIGATIONS,
SUITS, PROCEEDINGS, AMOUNTS PAID IN SETTLEMENT, DAMAGES, JUDGMENTS, PENALTIES,
COURT COSTS, LIABILITIES AND OBLIGATIONS -- AND ALL COSTS AND REASONABLE
EXPENSES AND DISBURSEMENTS (INCLUDING ALL REASONABLE ATTORNEYS' FEES AND
EXPENSES WHETHER OR NOT SUIT OR OTHER PROCEEDING EXISTS OR ANY INDEMNITEE IS
PARTY TO ANY SUIT OR OTHER PROCEEDING) IN ANY WAY RELATED TO ANY OF THE
FOREGOING -- THAT MAY AT ANY TIME BE IMPOSED ON, INCURRED BY OR ASSERTED AGAINST
ANY INDEMNITEE AND IN ANY WAY ARISING OUT OF ANY (A) CREDIT DOCUMENT,
TRANSACTION CONTEMPLATED BY ANY CREDIT DOCUMENT OR REAL PROPERTY, (B)
ENVIRONMENTAL LIABILITY IN ANY WAY RELATED TO ANY COMPANY, PREDECESSOR, REAL
PROPERTY OR ACT, OMISSION, STATUS, OWNERSHIP OR OTHER RELATIONSHIP, CONDITION OR
CIRCUMSTANCE CONTEMPLATED BY, CREATED UNDER OR ARISING PURSUANT TO OR IN
CONNECTION WITH ANY CREDIT DOCUMENT, OR (C) INDEMNITEE'S SOLE OR CONCURRENT
ORDINARY NEGLIGENCE.
(b) THE BORROWER SHALL INDEMNIFY EACH INDEMNITEE FROM AND AGAINST,
PROTECT AND DEFEND EACH INDEMNITEE FROM AND AGAINST, HOLD EACH INDEMNITEE
HARMLESS FROM AND AGAINST, AND ON DEMAND PAY OR REIMBURSE EACH INDEMNITEE FOR,
ALL INDEMNIFIED LIABILITIES.
(c) THE FOREGOING PROVISIONS (i) ARE NOT LIMITED IN AMOUNT EVEN IF THAT
AMOUNT EXCEEDS THE OBLIGATIONS, (ii) INCLUDE, WITHOUT LIMITATION, REASONABLE
FEES AND EXPENSES OF ATTORNEYS AND OTHER COSTS AND EXPENSES OF LITIGATION OR
PREPARING FOR LITIGATION AND DAMAGES OR INJURY TO PERSONS, PROPERTY OR NATURAL
RESOURCES ARISING UNDER ANY STATUTORY OR COMMON LEGAL REQUIREMENT, PUNITIVE
DAMAGES, FINES AND OTHER PENALTIES, AND (iii) ARE NOT AFFECTED BY THE SOURCE OR
ORIGIN OF ANY HAZARDOUS SUBSTANCE, AND (iv) ARE NOT AFFECTED BY ANY INDEMNITEE'S
INVESTIGATION, ACTUAL OR CONSTRUCTIVE KNOWLEDGE, COURSE OF DEALING OR WAIVER.
(d) HOWEVER, NO INDEMNITEE IS ENTITLED TO BE INDEMNIFIED UNDER THE
CREDIT DOCUMENTS FOR ITS OWN SOLE GROSS NEGLIGENCE OR SOLE WILLFUL MISCONDUCT.
43
ARTICLE IX
NEGATIVE COVENANTS
Until the Commitments have been terminated and the Obligations have
been fully paid and performed, the Borrower covenants and agrees with the
Administrative Agent, the LC Issuing Bank and the Lenders that, without first
obtaining the Required Lenders' consent to the contrary:
SECTION 9.1. DEBT.
The Borrower will not cause or permit any other Company to, create,
incur, assume or suffer to exist any Debt except the following (the "PERMITTED
DEBT"):
(a) SUBSIDIARY GUARANTIES. Guaranties of any Debt of the Borrower.
(b) PERMITTED NON-RECOURSE DEBT. Permitted Non-Recourse Debt.
(c) CENTENNIAL GUARANTY. Upon the acquisition by TE Products of a
one-third interest in the Centennial Pipeline Project, Debt arising under the
Centennial Guaranty.
(d) ADDITIONAL DEBT. Additional Debt not described in clauses (a)
through (c) above incurred by the Guarantors in an aggregate principal amount
not to exceed $25,000,000.
(e) EXISTING DEBT. The Debt described on Schedule 7.12, together with
all renewals, extensions, amendments, modifications and refinancings of (but not
any principal increases to) any of such Debt.
SECTION 9.2. PREPAYMENTS.
The Borrower will not, and will not cause or permit any other Company,
other than an Excluded Subsidiary, to, prepay or redeem or cause to be prepaid
or redeemed any principal of, or any interest on, any of its Debt except (a) the
Obligations and (b) any of its other Debt if (i) no Event of Default or
Potential Default has occurred and is continuing immediately before, or will
occur as a result of (or otherwise will occur immediately after), the prepayment
or redemption, and (ii) in respect of any prepayment or redemption of the Senior
Notes, the Borrower concurrently prepays to the Lenders Borrowings (and/or cash
collateralizes LC Outstandings) in a principal amount that is in the same
proportion to the total Outstanding Credits immediately before such prepayment
as the amount of principal of the Senior Notes then being prepaid or redeemed
bears to the total principal amount of the Senior Notes immediately before such
prepayment or redemption in accordance with Section 3.2(c)(iv).
SECTION 9.3. LIENS.
The Borrower will not, and will not cause or permit any other Company:
(a) to create, incur or suffer or permit to be created or incurred or to exist
any Lien upon any of its assets except Permitted Liens or (b) to enter into or
permit to exist any arrangement or agreement that directly or indirectly
prohibits any Company from creating or incurring any Lien on any of its assets
except (i) the Credit Documents, (ii) any lease that places a Lien prohibition
on only the
44
property subject to that lease and (iii) arrangements and agreements that apply
only to property subject to Permitted Liens. The following are "PERMITTED
LIENS":
(a) EXISTING LIENS. The Liens existing on the date of this Agreement
and described on Schedule 7.13 and any renewal, extension, amendment or
modification of any of such Lien, provided that the total principal amount
secured by any such Lien never exceeds the total principal amount secured by
such Lien on the date of this Agreement.
(b) THIS TRANSACTION. Liens, if any, ever granted to the Administrative
Agent in favor of the LC Issuing Bank and the Lenders to secure all of any part
of the Obligations.
(c) BONDS. Liens securing any industrial development, pollution control
or similar revenue bonds that never exceed a total principal amount of
$25,000,000.
(d) FORECLOSED PROPERTIES. Liens existing on any property acquired by
any Company in connection with the foreclosure or other exercise of its Lien on
the property.
(e) SETOFFS. Rights of set off or recoupment and banker's Liens,
subject to any limitations imposed upon them in the Credit Documents.
(f) INSURANCE. Pledges or deposits made to secure payment of workers'
compensation, unemployment insurance or other forms of governmental insurance or
benefits or to participate in any fund in connection with workers' compensation,
unemployment insurance, pensions or other social security programs.
(g) BIDS AND BONDS. Good faith pledges or deposits (i) for 10% or less
of the amounts due under (and made to secure) any Company's performance of bids,
tenders, contracts (except for the repayment of borrowed money), (ii) in respect
of any operating lease, that are for up to but not more than the greater of
either 10% of the total rental obligations for the term of the lease or 50% of
the total rental obligations payable during the first year of the lease, or
(iii) made to secure statutory obligations, surety or appeal bonds, or
indemnity, performance or other similar bonds benefiting any Company in the
ordinary course of its business.
(h) PERMITS. Conditions in any permit, license or order issued by a
Governmental Authority for the ownership and operation of a pipeline that do not
materially impair the ownership or operation of such pipeline.
(i) PROPERTY RESTRICTIONS. Zoning and similar restrictions on the use
of, and easements, restrictions, covenants, title defects and similar
encumbrances on, any Real Property or pipeline right-of-way that (i) do not
materially impair the Company's use of the Real Property or pipeline
right-of-way and (ii) are not violated by existing structures (including the
pipeline) or current land use.
(j) EMINENT DOMAIN. The Right reserved to, or vested in, any
Governmental Authority (or granted by a Governmental Authority to another
Person) by the terms of any Right, franchise, grant, license, permit or Legal
Requirements to purchase or recapture, or to designate a purchaser of, any
property.
45
(k) INCHOATE LIENS. If no Lien has been filed in any jurisdiction or
agreed to, (i) claims and Liens for Taxes not yet due and payable, (ii)
mechanic's Liens and materialman's Liens for services or materials and similar
Liens incident to construction and maintenance of real property, in each case
for which payment is not yet due and payable, (iii) landlord 's Liens for rental
not yet due and payable, and (iv) Liens of warehousemen and carriers and similar
Liens securing obligations that are not yet due and payable.
(l) PERMITTED NON-RECOURSE DEBT. Liens securing obligations in respect
of Permitted Non-Recourse Debt of any Subsidiary of the Borrower.
(m) MISCELLANEOUS. Any of the following to the extent that the validity
or amount is being contested in good faith and by appropriate and lawful
proceedings diligently conducted, reserve or other appropriate provision (if
any) required by GAAP has been made, levy and execution has not issued or
continues to be stayed, and they do not individually or collectively detract
materially from the value of the property of the Company in question or
materially impair the use of that property in the operation of its business: (i)
claims and Liens for Taxes; (ii) claims and Liens upon, and defects of title to,
real or personal property, including any attachment of personal or real property
or other legal process before adjudication of a dispute on the merits; (iii)
claims and Liens of mechanics, materialmen, warehousemen, carriers, landlords or
other similar Liens; (iv) Liens incident to construction and maintenance of real
property; and (v) adverse judgments, attachments or orders on appeal for the
payment of money.
SECTION 9.4. EMPLOYEE PLANS.
Except as disclosed on Schedule 7.11 or where not a Material Adverse
Event, the Borrower will not, and will not cause or permit any other Company to,
permit any of the events or circumstances described in Section 7.11 to exist or
occur.
SECTION 9.5. TRANSACTIONS WITH AFFILIATES.
The Borrower will not, and will not cause or permit any other Company
to, enter into any material transaction with any of its Affiliates except (a)
those described on Schedule 7.15, (b) transactions between the Borrower and a
Guarantor, (c) transactions permitted under Section 9.1 or 9.7, (d) transactions
in the ordinary course of business and upon fair and reasonable terms not
materially less favorable than it could obtain or could become entitled to in an
arm's-length transaction with a Person that was not its Affiliate, and (e)
compensation arrangements in the ordinary course of business with directors and
officers of the Companies.
SECTION 9.6. COMPLIANCE WITH LEGAL REQUIREMENTS AND DOCUMENTS.
The Borrower will not, and will not cause or permit any other Company
to: (a) violate the provisions of any Legal Requirements (including, without
limitation, OSHA and Environmental Laws) applicable to it or of any material
agreement to which it is a party if that violation alone, or when aggregated
with all other violations of Legal Requirements or other material agreements,
would be a Material Adverse Event, (b) violate in any material respect any
provision of its Constituent Documents, or (c) repeal, replace or amend any
provision of its Constituent Documents if that action would be a Material
Adverse Event.
46
SECTION 9.7. DISTRIBUTIONS.
The Borrower will not, and will not cause or permit any other Company
to declare, make or pay any Distribution other than (a) Distributions from any
Subsidiary of the Borrower to the Borrower and the other owners (if any) of
Equity Interests in such Subsidiary, and (b) Distributions by the Borrower that
(i) will not violate its Constituent Documents and (ii) do not exceed "Available
Cash" as defined in the Borrower's Agreement of Limited Partnership, in each
case, so long as no Event of Default or Potential Default has occurred and is
continuing or will occur as a result of such Distribution.
SECTION 9.8. DISPOSITION OF ASSETS.
The Borrower will not, and will not cause or permit any other Company
(other than any Excluded Subsidiary) to, sell, assign, lease, transfer or
otherwise dispose of any of its assets (including equity interests in any other
Company) other than (a) pursuant to the Aerie Leases, (b) dispositions in the
ordinary course of business for a fair and adequate consideration, (c)
dispositions to any other Company that is a Guarantor, (d) dispositions to any
Excluded Subsidiary in connection with a transaction involving the issuance by
such Excluded Subsidiary of Permitted Non-Recourse Debt for the purposes
described in clause (ii) of the definition of "Permitted Non-Recourse Debt", (e)
dispositions of assets that are obsolete or are no longer in use and are not
significant to the continuation of such Company's business and (f) any other
disposition of assets, provided that the Borrower is in compliance with Section
3.2(c), if applicable, with respect to such disposition of assets.
SECTION 9.9. MERGERS, CONSOLIDATIONS AND DISSOLUTIONS.
The Borrower will not, and will not cause or permit any other Company
(other than any Excluded Subsidiary) to, merge or consolidate with any other
Person or dissolve, except (a) so long as no Event of Default or Potential
Default has occurred and is continuing or will occur as a result of such
transaction, any merger or consolidation involving one or more Companies (so
long as, if the Borrower is involved, it is the survivor), and (b) dissolution
of any Company (other than the Borrower) if substantially all of its assets have
been conveyed to any Company or disposed of as permitted in Section 9.8.
SECTION 9.10. AMENDMENT OF CONSTITUENT DOCUMENTS.
The Borrower will not, and will not cause or permit any other Company
(other than any Excluded Subsidiary) to, materially amend or modify its
Constituent Documents.
SECTION 9.11. ASSIGNMENT.
The Borrower will not, and will not cause or permit any other Company
to, assign or transfer any of its Rights, duties or obligations under any of the
Credit Documents.
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SECTION 9.12. FISCAL YEAR AND ACCOUNTING METHODS.
The Borrower will not, and will not cause or permit any other Company
to, change its fiscal year for accounting purposes or any material aspect of its
method of accounting except to conform any new Subsidiary's accounting methods
to the Borrower's accounting methods.
SECTION 9.13. NEW BUSINESS.
The Borrower will not, and will not cause or permit any other Company
to, engage in any business except the businesses in which it is presently
engaged and any other reasonably related business.
SECTION 9.14. GOVERNMENT REGULATIONS.
The Borrower will not, and will not cause or permit any other Company
to, conduct its business in a way that causes the Borrower or such Company to
become regulated under the Investment Company Act of 1940 or the Public Utility
Holding Company Act of 1935.
SECTION 9.15. SENIOR NOTES.
The Borrower will not, and will not cause or permit any other Company
to, (i) secure the obligations of any Company under the Senior Notes or the
related Indentures relating to such Senior Notes, (ii) increase the principal
amount of the Senior Notes, (iii) amend or modify any scheduled date of payment
of principal under the Senior Notes or the related Indentures relating to such
Senior Notes, or (iv) increase the stated rate of any interest applicable to the
Senior Notes.
SECTION 9.16. STRICT COMPLIANCE.
The Borrower will not, and will not cause or permit any other Company
to, do indirectly anything that it may not do directly under any covenant in any
Credit Document.
SECTION 9.17. RESTRICTIVE AGREEMENTS.
The Borrower will not, and will not cause or permit any other Company
to, enter into any agreement, contract, arrangement or other obligation if the
effect of such agreement, contract, arrangement or other obligation is (a) to
impose any restriction, other than in connection with the issuance by any
Subsidiary of the Borrower of Permitted Non-Recourse Debt, on the ability of any
such Subsidiary to make or declare Distributions to the holders of its Equity
Interests that is more restrictive than the restrictions that are in effect on
the date of this Agreement and disclosed on Schedule 7.20 or (b) to restrict the
ability of any Company to create or maintain Liens on its assets in favor of the
Administrative Agent, the LC Issuing Bank and the Lenders to secure, in whole or
part, the Obligations, except with respect to (i) agreements, contracts,
arrangements or other obligations of any Subsidiary of the Borrower acquired by
the Borrower or any Subsidiary of the Borrower after the date hereof to the
extent that such acquired Subsidiary was a party to such agreements, contracts,
arrangements or other obligations prior to its acquisition by the Borrower or
any Subsidiary of the Borrower and (ii) the issuance by any Subsidiary of the
Borrower of Permitted Non-Recourse Debt.
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ARTICLE X
FINANCIAL COVENANTS
Until the Commitments have been terminated and the Obligations have
been fully paid and performed, the Borrower covenants and agrees with the
Administrative Agent, the LC Issuing Bank and the Lenders that, without first
obtaining the Required Lenders' consent to the contrary:
SECTION 10.1. MINIMUM NET WORTH.
As of the last day of each fiscal quarter of the Borrower, Consolidated
Net Worth will not be less than the sum of (a) 80% of Consolidated Net Worth as
of December 31, 2000, plus (b) 100% of the Net Cash Proceeds of all Equity
Events occurring after December 31, 2000.
SECTION 10.2. MAXIMUM FUNDED DEBT TO PRO FORMA EBITDA.
As of the last day of each fiscal quarter of the Borrower, the ratio of
Consolidated Funded Debt to Pro Forma EBITDA for the period consisting of four
consecutive fiscal quarters taken as a single accounting period and ending on
such day will be less than 4.50 to 1.00.
SECTION 10.3. FIXED CHARGE COVERAGE RATIO.
As of the last day of each fiscal quarter of the Borrower, the ratio of
(a) EBITDA of the Borrower to (b) the sum of Interest Expense of the Borrower
and Maintenance Capital Expenditures of the Borrower, in each case, (x) for the
four consecutive fiscal quarters taken as a single accounting period and ending
on such day and (y) excluding Interest Expense and Maintenance Capital
Expenditures of any Excluded Subsidiary of the Borrower, will not be less than
1.75 to 1.00.
ARTICLE XI
EVENTS OF DEFAULT
The term "EVENT OF DEFAULT" means the occurrence of any one or more of
the following:
SECTION 11.1. PAYMENT OF OBLIGATIONS.
The Borrower's failure or refusal to pay (a) principal of any Note on
or before the date due or (b) any other part of the Obligations (including fees
due under the Credit Documents) on or before three Business Days after the date
due.
SECTION 11.2. COVENANTS.
Any Company's failure or refusal to punctually and properly perform,
observe and comply with any covenant (other than covenants to pay the
Obligations) applicable to it:
(a) In Article 9 or 10; or
49
(b) In Section 8.1, and such failure or refusal continues for ten days
after the earlier of (i) any Company's obtaining knowledge of such failure or
refusal and (ii) any Company's being notified of such failure or refusal by the
Administrative Agent, the LC Issuing Bank or any Lender; or
(c) In any other provision of any Credit Document, and that failure or
refusal continues for 30 days after the earlier of (i) any Company's obtaining
knowledge of such failure or refusal and (ii) any Company's being notified of
such failure or refusal by the Administrative Agent, the LC Issuing Bank or any
Lender.
SECTION 11.3. DEBTOR RELIEF.
The Borrower or any Significant Subsidiary (a) is not Solvent, (b)
fails to pay its Debts generally as they become due, (c) voluntarily seeks,
consents to or acquiesces in the benefit of any Debtor Law, or (d) becomes a
party to or is made the subject of any proceeding (except as a creditor or
claimant) provided for by any Debtor Law (unless, if the proceeding is
involuntary, the applicable petition is dismissed within 60 days after its
filing).
SECTION 11.4. JUDGMENTS AND ATTACHMENTS.
Where the amounts in controversy or of any judgments, as the case may
be, exceed (from and after the date hereof and individually or collectively)
$25,000,000 for the Borrower or TE Products or $1,000,000 for any other Company,
and such Person fails (a) to have discharged, within 60 days after its
commencement, any attachment, sequestration or similar proceeding against any of
its assets or (b) to pay any money judgment against it within ten days before
the date on which any of its assets may be lawfully sold to satisfy that
judgment.
SECTION 11.5. GOVERNMENT ACTION.
Either (a) a final non-appealable order is issued by any Governmental
Authority (including the United States Justice Department) seeking to cause any
Company (other than any Excluded Subsidiary) to divest a significant portion of
its assets under any antitrust, restraint of trade, unfair competition, industry
or similar Legal Requirements, or (b) any Governmental Authority condemns,
seizes or otherwise appropriates or takes custody or control of all or any
substantial portion of any Company's (other than any Excluded Subsidiary) assets
and, in either case, such event constitutes a Material Adverse Event.
SECTION 11.6. MISREPRESENTATION.
Any representation or warranty made by any Company in any Credit
Document at any time proves to have been materially incorrect when made.
SECTION 11.7. CHANGE OF CONTROL.
Any one or more of the following occurs or exists: (a) the Borrower
ceases to own (i) at least 99.999% of the limited partner interests in TE
Products, TCTM or Midstream; or (ii) directly or indirectly, 100% of the
ownership interests of TEPPCO GP; or (b) Texas Eastern ceases to be the sole
general partner of the Borrower; or (c) TEPPCO GP ceases to be the sole
50
general partner of TE Products, TCTM or Midstream; or (d) TEPPCO GP and
Midstream cease to be the sole general partners of Jonah Gas; or (e) Duke Energy
Field Services, LLC ceases to own, directly or indirectly, 100% of the ownership
interests of Texas Eastern.
SECTION 11.8. OTHER DEBT.
In respect of the Senior Notes or any other Debt owed by any Company
(other than the Obligations) individually or collectively of at least
$10,000,000 (a) any Company fails to make any payment when due (inclusive of any
grace, extension, forbearance or similar period), or (b) any default or other
event or condition occurs or exists beyond the applicable grace or cure period,
the effect of which is to cause or to permit any holder of that Debt to cause
(whether or not it elects to cause) any of that Debt to become due before its
stated maturity or regularly scheduled payment dates, or (c) any of that Debt is
declared to be due and payable or required to be prepaid by any Company before
its stated maturity.
SECTION 11.9. FINA/BASF CONTRACTS.
Any default or other condition or event shall occur and be continuing
under any FINA/BASF Contract that constitutes a Material Adverse Event.
SECTION 11.10. VALIDITY AND ENFORCEABILITY.
Once executed, this Agreement, any Note or Guaranty ceases to be in
full force and effect in any material respect or is declared to be null and void
or its validity or enforceability is contested in writing by any Company party
to it or any Company party to it denies in writing that it has any further
liability or obligations under it except in accordance with that document's
express provisions or as the appropriate parties under Section 14.8 below may
otherwise agree in writing.
SECTION 11.11. HEDGING AGREEMENTS.
In respect of any obligation under any Hedging Agreement entered into
by any Company individually or collectively of at least $10,000,000 (a) any
Company fails to make any payment when due (inclusive of any grace, extension,
forbearance or similar period), the effect of which is to cause (whether or not
it elects to cause) any of the obligations under such Hedging Agreement to
become due before its stated payment date, or (b) any default or other event or
condition occurs or exists beyond the applicable grace or cure period, the
effect of which is to cause (whether or not it elects to cause) any of the
obligations under such Hedging Agreement to become due before its stated payment
date or (c) any such obligation is declared to be due and payable or required to
be prepaid by any Company before its stated payment date.
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ARTICLE XII
RIGHTS AND REMEDIES
SECTION 12.1. REMEDIES UPON EVENT OF DEFAULT.
(a) DEBTOR RELIEF. Upon the occurrence of an Event of Default under
Section 11.3, the Commitments and the obligation of the LC Issuing Bank to issue
Letters of Credit shall automatically terminate, and the entire outstanding
principal amount of the Borrowings and all other accrued and unpaid portions of
the Obligations shall automatically become due and payable without any action of
any kind whatsoever.
(b) OTHER EVENTS OF DEFAULT. If any Event of Default has occurred and
is continuing, subject to the terms of Section 13.5(b), the Administrative Agent
shall at the request, or may with the consent, of the Required Lenders, upon
notice to the Borrower, do any one or more of the following: (i) If the maturity
of the Obligations has not already been accelerated under Section 12.1(a),
declare the outstanding principal amount of the Borrowings and all other accrued
and unpaid portion of the Obligations immediately due and payable, whereupon
they shall be due and payable; (ii) terminate the Commitments and the obligation
of the LC Issuing Bank to issue Letters of Credit; (iii) reduce any claim to
judgment and (iv) exercise any and all other legal or equitable Rights afforded
by the Credit Documents, by applicable Legal Requirements, or in equity.
(c) CASH COLLATERAL ACCOUNT. Notwithstanding anything to the contrary
contained herein, no notice given or declaration made by the Administrative
Agent pursuant to this Article XII shall affect (i) the obligation of the LC
Issuing Bank to make any payment under any Letter of Credit in accordance with
the terms of such Letter of Credit or (ii) the obligations of each Lender in
respect of each such Letter of Credit; provided, however, that if an Event of
Default has occurred and is continuing, the Administrative Agent shall at the
request, or may with the consent, of the Required Lenders, upon notice to the
Borrower, require the Borrower to deposit with the Administrative Agent an
amount in the cash collateral account (the "CASH COLLATERAL ACCOUNT") described
below equal to the LC Outstandings on such date. Such Cash Collateral Account
shall at all times be free and clear of all rights or claims of third parties.
The Cash Collateral Account shall be maintained with the Administrative Agent in
the name of, and under the sole dominion and control of, the Administrative
Agent, and amounts deposited in the Cash Collateral Account shall bear interest
at a rate equal to the rate generally offered by SunTrust for deposits equal to
the amount deposited by the Borrower in the Cash Collateral Account, for a term
to be determined by the Administrative Agent, in its sole discretion. The
Borrower hereby grants to the Administrative Agent for the benefit of the LC
Issuing Bank and the Lenders a Lien in and hereby assigns to the Administrative
Agent for the benefit of LC Issuing Bank and the Lenders all of its right, title
and interest in, the Cash Collateral Account and all funds from time to time on
deposit therein to secure its reimbursement obligations in respect of Letters of
Credit. If any drawings then outstanding or thereafter made are not reimbursed
in full immediately upon demand or, in the case of subsequent drawings, upon
being made, then, in any such event, the Administrative Agent may apply the
amounts then on deposit in the Cash Collateral Account, in such priority as
specified in Section 3.11, toward the payment in full of any of the Obligations
as and when such obligations shall become due and payable. Upon payment in full,
after the termination of the Letters of Credit, of all such obligations, the
Administrative Agent will repay
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and reassign to the Borrower any cash then in the Cash Collateral Account and
the Lien of the Administrative Agent on the Cash Collateral Account and the
funds therein shall automatically terminate.
(d) In addition, if at any time the Borrower is required to make a
prepayment under Section 3.2(c), no Borrowings are outstanding, the Borrower
shall deposit in the Cash Collateral Account an amount equal to the LC
Outstandings on such date. If, at any time no Event of Default has occurred and
is continuing and the cash on deposit in the Cash Collateral Account shall
exceed the LC Outstandings, then the Administrative Agent will repay and
reassign to the Borrower cash in an amount equal to such excess, and the Lien of
the Administrative Agent on such cash shall automatically terminate.
(e) OFFSET. If an Event of Default has occurred and is continuing, to
the extent lawful, upon notice to the Borrower, each Lender may exercise the
Rights of offset and banker's lien against each and every account and other
property, or any interest therein, which the Borrower may now or hereafter have
with, or which is now or hereafter in the possession of, such Lender to the
extent of the full amount of the Obligations then matured and owed to that
Lender.
SECTION 12.2. COMPANY WAIVERS.
To the extent lawful, the Borrower waives all other presentment and
demand for payment, protest, notice of intention to accelerate, notice of
acceleration and notice of protest and nonpayment and agrees that its liability
with respect to all or any part of the Obligations is not affected by any
renewal or extension in the time of payment of all or any part of the
Obligations, by any indulgence, or by any release or change in any security for
the payment of all or any part of the Obligations.
SECTION 12.3. NOT IN CONTROL.
Nothing in any Credit Documents gives or may be deemed to give to the
Administrative Agent, the LC Issuing Bank or any Lender the Right to exercise
control over any Company's Real Property, other assets, affairs or management or
to preclude or interfere with any Company's compliance with any Legal
Requirement or require any act or omission by any Company that may be harmful to
Persons or property. Any "Material Adverse Event" or other materiality or
substantiality qualifier of any representation, warranty, covenant, agreement or
other provision of any Credit Document is included for credit documentation
purposes only and does not imply or be deemed to mean that the Administrative
Agent, the LC Issuing Bank or any Lender acquiesces in any non-compliance by any
Company with any Legal Requirement, document, or otherwise or does not expect
the Companies to promptly, diligently and continuously carry out all appropriate
removal, remediation, compliance, closure or other activities required or
appropriate in accordance with all Environmental Laws. The Administrative
Agent's, the LC Issuing Bank's and the Lenders' power is limited to the Rights
provided in the Credit Documents. All of those Rights exist solely (and may be
exercised in manner calculated by the Administrative Agent, the LC Issuing Bank
or the Lenders in their respective good faith business judgment) to assure
payment and performance of the Obligations.
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SECTION 12.4. COURSE OF DEALING.
The acceptance by the Administrative Agent, the LC Issuing Bank or the
Lenders of any partial payment on the Obligations is not a waiver of any Event
of Default then existing. No waiver by the Administrative Agent, the LC Issuing
Bank, the Required Lenders or the Lenders of any Event of Default is a waiver of
any other then-existing or subsequent Event of Default. No delay or omission by
the Administrative Agent, the LC Issuing Bank, the Required Lenders or the
Lenders in exercising any Right under the Credit Documents impairs that Right or
is a waiver thereof or any acquiescence therein, nor will any single or partial
exercise of any Right preclude other or further exercise thereof or the exercise
of any other Right under the Credit Documents or otherwise.
SECTION 12.5. CUMULATIVE RIGHTS.
All Rights available to the Administrative Agent, the LC Issuing Bank,
the Required Lenders and the Lenders under the Credit Documents are cumulative
of and in addition to all other Rights granted to the Administrative Agent, the
LC Issuing Bank, the Required Lenders and the Lenders at law or in equity,
whether or not the Obligations are due and payable and whether or not the
Administrative Agent, the LC Issuing Bank, the Required Lenders or the Lenders
have instituted any suit for collection, foreclosure or other action in
connection with the Credit Documents.
SECTION 12.6. APPLICATION OF PROCEEDS.
Any and all proceeds ever received by the Administrative Agent or the
Lenders from the exercise of any Rights pertaining to the Obligations shall be
applied to the Obligations according to Section 3.11.
SECTION 12.7. EXPENDITURES BY LENDERS.
Any costs and reasonable expenses spent or incurred by the
Administrative Agent, the LC Issuing Bank or any Lender in the exercise of any
Right under any Credit Document shall be payable by the Borrower to the
Administrative Agent within ten Business Days after such Person made demand for
payment of such amount from Borrower, accompanied by copies of supporting
invoices or statements (if any), shall become part of the Obligations and shall
bear interest at the Default Rate from the date spent until the date repaid.
SECTION 12.8. LIMITATION OF LIABILITY.
Neither the Administrative Agent, the LC Issuing Bank nor any Lender
shall be liable to any Company for any amounts representing indirect, special or
consequential damages suffered by any Company, except where such amounts are
based substantially on willful misconduct by the Administrative Agent, the LC
Issuing Bank or such Lender, but then only to the extent any damages resulting
from such willful misconduct are covered by the Administrative Agent's or that
the Lender's fidelity bond or other insurance.
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ARTICLE XIII
ADMINISTRATIVE AGENT AND LENDERS
SECTION 13.1. THE ADMINISTRATIVE AGENT.
(a) APPOINTMENT. Each of the LC Issuing Bank and each Lender appoints
the Administrative Agent (including, without limitation, each successor
Administrative Agent in accordance with this Section 13.1) as its nominee and
agent to act in its name and on its behalf (and the Administrative Agent and
each such successor accepts that appointment): (i) To act as its nominee and on
its behalf in and under all Credit Documents; (ii) to arrange the means whereby
its funds are to be made available to the Borrower under the Credit Documents;
(iii) to take any action that it properly requests under the Credit Documents
(subject to the concurrence of other Lenders as may be required under the Credit
Documents); (iv) to receive all documents and items to be furnished to it under
the Credit Documents; (v) to be the secured party, mortgagee, beneficiary,
recipient and similar party in respect of the Cash Collateral Account and any
other collateral for the benefit of the Lenders and the LC Issuing Bank (at any
time an Event of Default or Potential Default has occurred and is continuing);
(vi) to promptly distribute to it all material information, requests, documents
and items received from any Company under the Credit Documents; (vii) to
promptly distribute to it its ratable part of each payment or prepayment
(whether voluntary, as proceeds of collateral upon or after foreclosure, as
proceeds of insurance thereon or otherwise) in accordance with the terms of the
Credit Documents; and (viii) to deliver to the appropriate Persons requests,
demands, approvals and consents received from it. The Administrative Agent,
however, may not be required to take any action that exposes it to personal
liability or that is contrary to any Credit Document or applicable Legal
Requirement.
(b) SUCCESSOR. The Administrative Agent may, subject (at any time no
Event of Default or Potential Default has occurred and is continuing) to the
Borrower's prior written consent that may not be unreasonably withheld, assign
all of its Rights and obligations as the Administrative Agent under the Credit
Documents to any of its Affiliates, which Affiliate shall then be the successor
Administrative Agent under the Credit Documents. The Administrative Agent may
also, upon 30 days' prior notice to the Borrower, voluntarily resign. If the
initial or any successor Administrative Agent ever ceases to be a party to this
Agreement or if the initial or any successor Administrative Agent ever resigns,
then the Required Lenders shall (which, if no Event of Default or Potential
Default has occurred and is continuing, is subject to the Borrower's approval
that may not be unreasonably withheld) appoint the successor Administrative
Agent from among the Lenders (other than the resigning Administrative Agent). If
the Required Lenders fail to appoint a successor Administrative Agent within 30
days after the resigning Administrative Agent has given notice of resignation,
then the resigning Administrative Agent may, on behalf of the Lenders, upon 30
days prior notice to the Borrower, appoint a successor Administrative Agent,
subject (at any time no Event of Default or Potential Default has occurred and
is continuing) to the Borrower's prior written consent that may not be
unreasonably withheld, which must be a commercial bank having a combined capital
and surplus of at least $1,000,000,000 (as shown on its most recently published
statement of condition). Upon its acceptance of appointment as successor
Administrative Agent, the successor Administrative Agent shall succeed to and
become vested with all of the Rights of the prior Administrative Agent, and the
prior Administrative Agent shall be discharged from its duties and obligations
as
55
Administrative Agent under the Credit Documents, and each Lender shall execute
the documents that any Lender, the resigning Administrative Agent or the
successor Administrative Agent reasonably requests to reflect the change. After
any Administrative Agent's resignation as the Administrative Agent under the
Credit Documents, the provisions of this section inure to its benefit as to any
actions taken or not taken by it while it was the Administrative Agent under the
Credit Documents.
(c) RIGHTS AS LENDER. The Administrative Agent, in its capacity as a
Lender, has the same Rights under the Credit Documents as any other Lender and
may exercise those Rights as if it were not acting as the Administrative Agent.
The Administrative Agent's resignation or removal does not impair or otherwise
affect any Rights that it has or may have in its capacity as an individual
Lender. Each Lender, the LC Issuing Bank and the Borrower agree that the
Administrative Agent is not a fiduciary for the Lenders, the LC Issuing Bank or
the Borrower but is simply acting in the capacity described in this Agreement to
alleviate administrative burdens for the Borrower, the LC Issuing Bank and the
Lenders, that the Administrative Agent has no duties or responsibilities to the
Lenders, the LC Issuing Bank or the Borrower except those expressly set forth in
the Credit Documents, and that the Administrative Agent in its capacity as a
Lender has the same Rights as any other Lender.
(d) OTHER ACTIVITIES. The Administrative Agent or any Lender may now or
in the future be engaged in one or more loan, letter of credit, leasing or other
financing transactions with the Borrower, act as trustee or depositary for the
Borrower or otherwise be engaged in other transactions with the Borrower
(collectively, the "other activities") not the subject of the Credit Documents.
Without limiting the Rights of the Lenders or the LC Issuing Bank specifically
set forth in the Credit Documents, neither the Administrative Agent, the LC
Issuing Bank nor any Lender is responsible to account to the other Lenders or
the LC Issuing Bank for those other activities, and neither any Lender nor the
LC Issuing Bank shall have any interest in any other Lender's or the LC Issuing
Bank's activities, any present or future guaranties by or for the account of the
Borrower that are not contemplated by or included in the Credit Documents, any
present or future offset exercised by the Administrative Agent, the LC Issuing
Bank or any Lender in respect of those other activities, any present or future
property taken as security for any of those other activities or any property now
or hereafter in the Administrative Agent's or any other Lender's possession or
control that may be or become security for the obligations of the Borrower
arising under the Credit Documents by reason of the general description of
indebtedness secured or of property contained in any other agreements, documents
or instruments related to any of those other activities (but, if any payments in
respect of those guaranties or that property or the proceeds thereof is applied
by the Administrative Agent, the LC Issuing Bank or any Lender to reduce the
Obligations, then each of the LC Issuing Bank and each Lender is entitled to
share in the application as provided in the Credit Documents).
SECTION 13.2. EXPENSES.
Each Lender shall pay its Commitment Percentage of any reasonable
expenses (including court costs, reasonable attorneys' fees and other costs of
collection) incurred by the Administrative Agent or in connection with any of
the Credit Documents if the Administrative Agent is not reimbursed from other
sources within 30 days after incurrence. Each Lender is entitled to receive its
Commitment Percentage of any reimbursement that it makes to the
56
Administrative Agent if the Administrative Agent is subsequently reimbursed from
other sources.
SECTION 13.3. PROPORTIONATE ABSORPTION OF LOSSES.
Except as otherwise provided in the Credit Documents, nothing in the
Credit Documents gives any Lender any advantage over any other Lender insofar as
the Obligations are concerned or relieves any Lender from ratably absorbing any
losses sustained with respect to the Obligations (except to the extent
unilateral actions or inactions by any Lender result in the Borrower or any
other obligor on the Obligations having any credit, allowance, setoff, defense
or counterclaim solely with respect to all or any part of that Lender's part of
the Obligations).
SECTION 13.4. DELEGATION OF DUTIES; RELIANCE.
The Lenders may perform any of their duties or exercise any of their
Rights under the Credit Documents by or through the Administrative Agent, and
the Lenders, the LC Issuing Bank and the Administrative Agent may perform any of
their duties or exercise any of their Rights under the Credit Documents by or
through their respective Representatives. The Administrative Agent, the LC
Issuing Bank, the Lenders and their respective Representatives (a) are entitled
to rely upon (and shall be protected in relying upon) any written or oral
statement believed by it or them to be genuine and correct and to have been
signed or made by the proper Person and, with respect to legal matters, upon
opinion of counsel selected by the Administrative Agent, the LC Issuing Bank or
that Lender (but nothing in this clause (a) permits the Administrative Agent to
rely on (i) oral statements if a writing is required by this Agreement or (ii)
any other writing if a specific writing is required by this Agreement), (b) are
entitled to deem and treat each Lender as the owner and holder of its portion of
the Obligations for all purposes until written notice of the assignment or
transfer is given to and received by the Administrative Agent (and any request,
authorization, consent or approval of any Lender is conclusive and binding on
each subsequent holder, assignee or transferee of or Participant in that
Lender's portion of the Obligations until that notice is given and received),
(c) are not deemed to have notice of the occurrence of an Event of Default
unless a responsible officer of the Administrative Agent, who handles matters
associated with the Credit Documents and transactions thereunder, has actual
knowledge or the Administrative Agent has been notified by a Lender, the LC
Issuing Bank or the Borrower, and (d) are entitled to consult with legal counsel
(including counsel for the Borrower), independent accountants, and other experts
selected by the Administrative Agent and are not liable for any action taken or
not taken in good faith by it in accordance with the advice of counsel,
accountants or experts.
SECTION 13.5. LIMITATION OF THE ADMINISTRATIVE AGENT'S LIABILITY.
(a) EXCULPATION. Neither the Administrative Agent nor any of its
Affiliates or Representatives will be liable to the LC Issuing Bank or any
Lender for any action taken or omitted to be taken by it or them under the
Credit Documents in good faith and believed by it to be within the discretion or
power conferred upon it or them by the Credit Documents or be responsible for
the consequences of any error of judgment (except for gross negligence or
willful misconduct), and neither the Administrative Agent nor any of its
Affiliates or Representatives has a fiduciary relationship with any Lender or
the LC Issuing Bank by virtue of the Credit
57
Documents (but nothing in this Agreement negates the obligation of the
Administrative Agent to account for funds received by it for the account of any
Lender).
(b) INDEMNITY. Unless indemnified to its satisfaction against loss,
cost, liability and expense, the Administrative Agent may not be compelled to do
any act under the Credit Documents or to take any action toward the execution or
enforcement of the powers thereby created or to prosecute or defend any suit in
respect of the Credit Documents. If the Administrative Agent requests
instructions from the Lenders, the LC Issuing Bank or the Required Lenders, as
the case may be, with respect to any act or action in connection with any Credit
Document, the Administrative Agent is entitled to refrain (without incurring any
liability to any Person by so refraining) from that act or action unless and
until it has received instructions. In no event, however, may the Administrative
Agent or any of its Representatives be required to take any action that it or
they determine could incur for it or them criminal or onerous civil liability.
Without limiting the generality of the foregoing, neither the LC Issuing Bank
nor any Lender has any right of action against the Administrative Agent as a
result of the Administrative Agent's acting or refraining from acting under this
Agreement in accordance with instructions of the Required Lenders.
(c) RELIANCE. The Administrative Agent is not responsible to the LC
Issuing Bank or any Lender or any Participant for, and each of the LC Issuing
Bank and each Lender represents and warrants that it has not relied upon the
Administrative Agent in respect of, (i) the creditworthiness of any Company and
the risks involved to the LC Issuing Bank or such Lender, as the case may be,
(ii) the effectiveness, enforceability, genuineness, validity or the due
execution of any Credit Document, (iii) any representation, warranty, document,
certificate, report or statement made therein or furnished thereunder or in
connection therewith, (iv) the adequacy of any collateral now or hereafter
securing the Obligations or the existence, priority or perfection of any Lien
now or hereafter granted or purported to be granted on the collateral under any
Credit Document, or (v) observation of or compliance with any of the terms,
covenants or conditions of any Credit Document on the part of the General
Partner or any Company. EACH LENDER AGREES TO INDEMNIFY THE ADMINISTRATIVE AGENT
AND ITS REPRESENTATIVES AND HOLD THEM HARMLESS FROM AND AGAINST (BUT LIMITED TO
SUCH LENDER'S COMMITMENT PERCENTAGE OF) ANY AND ALL LIABILITIES, OBLIGATIONS,
LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, REASONABLE
EXPENSES AND REASONABLE DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER THAT MAY
BE IMPOSED ON, ASSERTED AGAINST OR INCURRED BY THEM IN ANY WAY RELATING TO OR
ARISING OUT OF THE CREDIT DOCUMENTS OR ANY ACTION TAKEN OR OMITTED BY THEM UNDER
THE CREDIT DOCUMENTS IF THE ADMINISTRATIVE AGENT AND ITS REPRESENTATIVES ARE NOT
REIMBURSED FOR SUCH AMOUNTS BY ANY COMPANY. ALTHOUGH THE ADMINISTRATIVE AGENT
AND ITS REPRESENTATIVES HAVE THE RIGHT TO BE INDEMNIFIED UNDER THIS AGREEMENT BY
THE LENDERS FOR ITS OR THEIR OWN ORDINARY NEGLIGENCE, THE ADMINISTRATIVE AGENT
AND ITS REPRESENTATIVES DO NOT HAVE THE RIGHT TO BE INDEMNIFIED UNDER THIS
AGREEMENT FOR ITS OR THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
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SECTION 13.6. EVENT OF DEFAULT.
If an Event of Default has occurred and is continuing, the Lenders
agree to promptly confer in order that the Required Lenders or the Lenders, as
the case may be, may agree upon a course of action for the enforcement of the
Rights of the Lenders. The Administrative Agent is entitled to act or refrain
from taking any action (without incurring any liability to any Person for so
acting or refraining) unless and until it has received instructions from the
Required Lenders. In actions with respect to any Company's property, the
Administrative Agent is acting for the ratable benefit of each Lender.
SECTION 13.7. LIMITATION OF LIABILITY.
No Lender or any Participant will incur any liability to any other
Lender or Participant except for acts or omissions in bad faith, and neither the
Administrative Agent nor any Lender or Participant will incur any liability to
any other Person for any act or omission of any other Lender or any Participant.
SECTION 13.8. OTHER AGENTS.
SunTrust Xxxxxxxx Xxxxxxxx Capital Markets, a division of SunTrust
Capital Markets, Inc., is named on the cover page as "Sole Lead Arranger" but
does not, in such capacity, and nor do the entities listed as Co-Syndication
Agents or Co-Documentation Agents, assume any responsibility or obligation under
this Agreement for syndication, documentation, servicing, enforcement or
collection of any part of the Obligations, nor any other duties, as agent for
the LC Issuing Bank or the Lenders.
SECTION 13.9. RELATIONSHIP OF LENDERS.
The Credit Documents do not create a partnership or joint venture among
the Administrative Agent, the LC Issuing Bank and the Lenders or among the
Lenders.
SECTION 13.10. BENEFITS OF AGREEMENT.
None of the provisions of this Article XIII inure to the benefit of any
Company or any other Person except the Administrative Agent, the LC Issuing Bank
and the Lenders. Therefore, no Company or any other Person is responsible or
liable for, entitled to rely upon or entitled to raise as a defense, in any
manner whatsoever, the failure of the Administrative Agent, the LC Issuing Bank
or any Lender to comply with these provisions.
ARTICLE XIV
MISCELLANEOUS
SECTION 14.1. NONBUSINESS DAYS.
Any payment or action that is due under any Credit Document on a
non-Business Day may be delayed until the next succeeding Business Day (but
interest accrues on any payment until it is made). If, however, the payment
concerns a LIBOR Rate Borrowing and if the next
59
succeeding Business Day is in the next calendar month, then that payment must be
made on the next preceding Business Day.
SECTION 14.2. COMMUNICATIONS.
Unless otherwise specified, any communication from one party to another
under any Credit Document must be in writing (which may be by fax) to be
effective and will be deemed to have been given (a) if by fax, when transmitted
to the appropriate fax number (which, without affecting the date when deemed
given, must be promptly confirmed by telephone) or (b) if by any other means,
when actually delivered; provided, further, that any such communication to a
Company from any Person that is not a Company shall be deemed made to that
Company only if it is sent to the Borrower or, if other than the Borrower, to
such Company in care of the Borrower. Until changed by notice under this
Agreement, the address, fax number and telephone number for the Borrower, the LC
Issuing Bank and the Administrative Agent are stated beside their respective
signatures to this Agreement and for each Lender are stated beside its name on
Schedule 2.
SECTION 14.3. FORM AND NUMBER.
The form, substance and number of counterparts of each writing to be
furnished under this Agreement must be satisfactory to the Administrative Agent
and the Borrower.
SECTION 14.4. EXCEPTIONS.
An exception to any Credit Document covenant or agreement does not
permit violation of any other Credit Document covenant or agreement.
SECTION 14.5. SURVIVAL.
All Credit Document provisions survive all closings and are not
affected by any investigation by any party.
SECTION 14.6. GOVERNING LAW.
Unless otherwise specified, each Credit Document shall be governed by,
and construed in accordance with, the law of the State of
New York and the
United States of America.
SECTION 14.7. INVALID PROVISIONS.
If any provision of a Credit Document is judicially determined to be
unenforceable, then all other provisions of it remain enforceable. If the
provision determined to be unenforceable is a material part of that Credit
Document, then, to the extent lawful, it shall be replaced by a
judicially-construed provision that is enforceable but otherwise as similar in
substance and content to the original provision as the context of it reasonably
allows.
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SECTION 14.8. AMENDMENTS, SUPPLEMENTS, WAIVERS, CONSENTS AND CONFLICTS.
(a) ALL LENDERS. Any amendment or supplement to, or waiver or consent
under, any Credit Document that purports to accomplish any of the following must
be by a writing executed by the Borrower and executed (or approved in writing,
as the case may be) by all the Lenders: (i) extends the due date for, decreases
the amount or rate of calculation of or waives the late or non-payment of, any
scheduled payment or mandatory prepayment of principal or interest of any of the
Obligations or any fees payable ratably to the Lenders under the Credit
Documents, except, in each case, any adjustments or reductions that are
contemplated by any Credit Document; (ii) changes the definition of
"Commitment", "Commitment Percentage", "Default Percentage" or "Required
Lenders", (iii) fully or partially releases or amends any Guaranty or cash
collateral delivered pursuant to Section 12.1(c), except, in each case, as
expressly provided by any Credit Document or as a result of a merger,
consolidation or dissolution expressly permitted in the Credit Documents; (v)
consents to any assignment by the Borrower under Section 14.10(a); or (vi)
changes this clause (a) or any other matter specifically requiring the consent
of all the Lenders under any Credit Document; provided further, that any
amendment or supplement to, or waiver or consent under, any Credit Document that
purports to increase or extend any part of any Lender's Commitment must be by a
writing executed by the Borrower and executed (or approved in writing, as the
case may be) by such Lender. Notwithstanding anything contained herein to the
contrary, this Agreement may be amended and restated without the consent of any
Lender or the Administrative Agent if, upon giving effect to such amendment and
restatement, such Lender or the Administrative Agent, as the case may be, shall
no longer be a party to this Agreement (as so amended and restated) or have any
Commitment or other obligation hereunder and shall have been paid in full all
amounts payable hereunder to such lender or the Administrative Agent, as the
case may be.
(b) THE ADMINISTRATIVE AGENT. Any amendment or supplement to, or waiver
or consent under, any Credit Document that purports to accomplish any of the
following must be by a writing executed by the Borrower and executed (or
approved in writing, as the case may be) by the Administrative Agent: (i)
extends the due date for, decreases the amount or rate of calculation of, or
waives the late or non-payment of, any fees payable to the Administrative Agent
under any Credit Document, except, in each case, any adjustments or reductions
that are contemplated by any Credit Document; (ii) increases the Administrative
Agent's obligations beyond its agreements under any Credit Document; or (iii)
changes this clause (b) or any other matter specifically requiring the consent
of the Administrative Agent under any Credit Document.
(c) THE LC ISSUING BANK. Any amendment or supplement to, or waiver or
consent under, any Credit Document that purports to accomplish any of the
following must be in writing executed by the Borrower and executed (or approved
in writing, as the case may be) by the LC Issuing Bank: (i) extends the due date
for, decreases the amount or rate of calculation of, or waives the late or
non-payment of, any reimbursement obligation or fees payable to the LC Issuing
Bank under or in connection with any Credit Document, except, in each case, any
adjustments or reductions that are contemplated by any Credit Document; (ii)
increases the LC Issuing Bank's obligations beyond its agreements under any
Credit Document; or (iii) changes this clause (c) or any other matter
specifically requiring the consent of the LC Issuing Bank under any Credit
Document.
61
(d) THE REQUIRED LENDERS. Except as specified above (i) the provisions
of this Agreement may be amended and supplemented, and waivers and consents
under it may be given, in writing executed by the Borrower, the Required Lenders
and the Administrative Agent, if applicable, and otherwise supplemented only by
documents delivered in accordance with the express terms of this Agreement, and
(ii) each other Credit Document may only be amended and supplemented, and
waivers and consents under it may be given, in a writing executed by the parties
to that Credit Document that is also executed or approved by the Required
Lenders and the Administrative Agent, if applicable, and otherwise supplemented
only by documents delivered in accordance with the express terms of that other
Credit Document.
(e) WAIVERS. No course of dealing or any failure or delay by the
Administrative Agent, the LC Issuing Bank, any Lender or any of their respective
Representatives with respect to exercising any Right of the Administrative
Agent, the LC Issuing Bank or any Lender under any Credit Document operates as a
waiver of that Right. A waiver must be in writing and signed by the parties
otherwise required by this Section 14.8 to be effective and will be effective
only in the specific instance and for the specific purpose for which it is
given.
(f) CONFLICTS. Although this Agreement and other Credit Documents may
contain additional and different terms and provisions, any conflict or ambiguity
between the express terms and provisions of this Agreement and express terms and
provisions in any other Credit Document is controlled by the express terms and
provisions of this Agreement.
SECTION 14.9. COUNTERPARTS.
Any Credit Document may be executed in a number of identical
counterparts (including, at the Administrative Agent's discretion, counterparts
or signature pages executed and transmitted by fax) with the same effect as if
all signatories had signed the same document. All counterparts must be construed
together to constitute one and the same instrument. Certain parties to this
Agreement may execute multiple signature pages to this Agreement as well as one
or more complete counterparts of it, and the Borrower, the LC Issuing Bank and
the Administrative Agent are authorized to execute, where applicable, those
separate signature pages and insert them, along with signature pages of other
parties to this Agreement, into one or more complete counterparts of this
Agreement that contain signatures of all parties to it.
SECTION 14.10. PARTIES.
(a) PARTIES AND BENEFICIARIES. Each Credit Document binds and inures to
the parties to it and each of their respective successors and permitted assigns.
Only those Persons may rely upon or raise any defense about this Agreement. No
Company may assign or transfer any Rights or obligations under any Credit
Document without first obtaining the consent of all the Lenders and the LC
Issuing Bank, and any purported assignment or transfer without the consent of
all the Lenders and the LC Issuing Bank is void.
(b) RELATIONSHIP OF PARTIES. The relationship between (x) each of the
LC Issuing Bank and each Lender and (y) each Company is that of creditor/secured
party and obligor, respectively. Financial covenant and reporting provisions in
the Credit Documents are intended solely for the benefit of each of the LC
Issuing Bank and each Lender to protect its interest as a
62
creditor/secured party. Nothing in the Credit Documents may be construed as (i)
permitting or obligating the LC Issuing Bank or any Lender to act as a financial
or business advisor or consultant to any Company, (ii) permitting or obligating
the LC Issuing Bank or any Lender to control any Company or conduct its
operations, (iii) creating any fiduciary obligation of the LC Issuing Bank or
any Lender to any Company, or (iv) creating any joint venture, agency or other
relationship between the parties except as expressly specified in the Credit
Documents.
(c) PARTICIPATIONS. Any Lender may (subject to the provisions of this
section, in accordance with applicable Legal Requirement, in the ordinary course
of its business, at any time, and with notice to the Borrower) sell to one or
more Persons (each a "PARTICIPANT") participating interests in its portion of
the Obligations so long as the minimum amount of such participating interest is
$5,000,000. The selling Lender remains a "Lender" under the Credit Documents,
the Participant does not become a "Lender" under the Credit Documents, and the
selling Lender's obligations under the Credit Documents remain unchanged. The
selling Lender remains solely responsible for the performance of its obligations
and remains the holder of its share of the Borrowings for all purposes under the
Credit Documents. The Borrower, the LC Issuing Bank and the Administrative Agent
shall continue to deal solely and directly with the selling Lender in connection
with that Lender's Rights and obligations under the Credit Documents, and each
Lender must retain the sole right and responsibility to enforce due obligations
of the Companies. Participants have no Rights under the Credit Documents except
as provided in the except clause of the last sentence of this Section 14.10(c).
Subject to the following, each Lender may obtain (on behalf of its Participants)
the benefits of Article 3 with respect to all participations in its part of the
Obligations outstanding from time to time so long as the Borrower is not
obligated to pay any amount in excess of the amount that would be due to that
Lender under Article 3 calculated as though no participations have been made. No
Lender may sell any participating interest under which the Participant has any
Rights to approve any amendment, modification or waiver of any Credit Document
except as to matters in Section 14.8(a)(i) and (ii).
(d) ASSIGNMENTS. Each Lender may make assignments to any Federal
Reserve Bank, provided that any related costs, fees and expenses incurred by
such Lender in connection with such assignment or the re-assignment back to it
free of any interests of the Federal Reserve Bank, shall be for the sole account
of Lender. Each Lender may also assign to one or more assignees (each an
"ASSIGNEE") all or any part of its Rights and obligations under the Credit
Documents so long as (i) the assignor Lender and Assignee execute and deliver to
the Administrative Agent, the LC Issuing Bank and the Borrower for their consent
and acceptance (that may not be unreasonably withheld in any instance and is not
required by the Borrower if an Event of Default has occurred and is continuing)
an assignment and assumption agreement in substantially the form of Exhibit E
(an "ASSIGNMENT") and pay to the Administrative Agent a processing fee of $1,000
(which payment obligation is the sole liability, joint and several, of that
Lender and Assignee), (ii) the assignment must be for a minimum total Commitment
of $5,000,000, and, if the assignor Lender retains any Commitment, it must be a
minimum total Commitment of $10,000,000, and (iii) the conditions for that
assignment set forth in the applicable Assignment are satisfied. The Effective
Date in each Assignment must (unless a shorter period is agreed to by the
Borrower and the Administrative Agent) be at least five Business Days after it
is executed and delivered by the assignor Lender and the Assignee to the
Administrative Agent and the Borrower for acceptance. Once such Assignment is
accepted by
63
the Administrative Agent, the LC Issuing Bank and the Borrower, and subject to
all of the following occurring, then, on and after the Effective Date stated in
it (A) the Assignee automatically shall become a party to this Agreement and, to
the extent provided in that Assignment, shall have the Rights and obligations of
a Lender under the Credit Documents, (B) in the case of an Assignment covering
all of the remaining portion of the assignor Lender's Rights and obligations
under the Credit Documents, the assignor Lender shall cease to be a party to the
Credit Documents, (C) the Borrower shall execute and deliver to the assignor
Lender and the Assignee the appropriate Notes in accordance with this Agreement
following the transfer, (D) upon delivery of the Notes under clause (C) the
assignor Lender shall return to the Borrower all Notes previously delivered to
that Lender under this Agreement, and (E) Schedule 2 shall be automatically
amended to reflect the name, address, telecopy number and Commitment of the
Assignee and the remaining Commitment (if any) of the assignor Lender, and the
Administrative Agent shall prepare and circulate to the Borrower, the LC Issuing
Bank and the Lenders an amended Schedule 2 reflecting those changes.
Notwithstanding the foregoing, no Assignee may be recognized as a party to the
Credit Documents (and the assignor Lender shall continue to be treated for all
purposes as the party to the Credit Documents) with respect to the Rights and
obligations assigned to that Assignee until the actions described in clauses (C)
and (D) have occurred. The Obligation is registered on the books of the Borrower
as to both principal and any stated interest, and transfers of (as opposed to
participations in) principal of and interest on the Obligations may be made only
in accordance with this Section.
SECTION 14.11. VENUE, SERVICE OF PROCESS AND JURY TRIAL.
THE BORROWER IN EACH CASE FOR ITSELF AND ITS SUCCESSORS AND ASSIGNS,
IRREVOCABLY (A) SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS IN
NEW YORK, (B) WAIVES, TO THE FULLEST EXTENT LAWFUL, ANY
OBJECTION THAT IT MAY NOW OR IN THE FUTURE HAVE TO THE LAYING OF VENUE OF ANY
LITIGATION ARISING OUT OF OR IN CONNECTION WITH ANY CREDIT DOCUMENT AND THE
OBLIGATIONS BROUGHT IN ANY STATE COURT IN THE CITY OF
NEW YORK,
NEW YORK OR IN
ANY UNITED STATES DISTRICT COURT IN THE STATE OF
NEW YORK, (C) WAIVES ANY CLAIMS
THAT ANY LITIGATION BROUGHT IN ANY OF THE FOREGOING COURTS HAS BEEN BROUGHT IN
AN INCONVENIENT FORUM, (D) CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF
THOSE COURTS IN ANY LITIGATION BY THE MAILING OF COPIES OF THAT PROCESS BY
CERTIFIED MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID, BY HAND DELIVERY OR
BY DELIVERY BY A NATIONALLY-RECOGNIZED COURIER SERVICE, AND SERVICE SHALL BE
DEEMED COMPLETE UPON DELIVERY OF THE LEGAL PROCESS AT ITS ADDRESS FOR PURPOSES
OF THIS AGREEMENT, (E) AGREES THAT ANY LEGAL PROCEEDING AGAINST ANY PARTY TO ANY
CREDIT DOCUMENT ARISING OUT OF OR IN CONNECTION WITH THE CREDIT DOCUMENTS OR THE
OBLIGATIONS MAY BE BROUGHT IN ONE OF THE FOREGOING COURTS, AND (F) IRREVOCABLY
WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ITS RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY CREDIT
DOCUMENT. The scope of each of the foregoing waivers is intended to be all
encompassing of any and all disputes that may be filed in any court and that
relate to the
64
subject matter of this transaction, including, without limitation, contract
claims, tort claims, breach of duty claims and all other common law and
statutory claims. THE BORROWER ACKNOWLEDGES THAT THESE WAIVERS ARE A MATERIAL
INDUCEMENT TO THE ADMINISTRATIVE AGENT'S, THE LC ISSUING BANK'S AND EACH
LENDER'S AGREEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT THE
ADMINISTRATIVE AGENT AND EACH LENDER HAS ALREADY RELIED ON THESE WAIVERS IN
ENTERING INTO THIS AGREEMENT, AND THAT ADMINISTRATIVE AGENT, THE LC ISSUING BANK
AND EACH LENDER WILL CONTINUE TO RELY ON EACH OF THESE WAIVERS IN RELATED FUTURE
DEALINGS. THE BORROWER FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED
THESE WAIVERS WITH ITS LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY
AGREES TO EACH WAIVER FOLLOWING CONSULTATION WITH LEGAL COUNSEL. The waivers in
this section are irrevocable, meaning that they may not be modified either
orally or in writing, and these waivers apply to any future renewals,
extensions, amendments, modifications or replacements in respect of the
applicable Credit Document. In connection with any Litigation, this Agreement
may be filed as a written consent to a trial by the court.
SECTION 14.12. NON-RECOURSE TO THE GENERAL PARTNER.
Neither the General Partner nor any director, officer, employee,
stockholder, member, manager or agent of the General Partner shall have any
liability for any obligations of the Borrower or any other Company under this
Agreement or any other Credit Document or for any claim based on, in respect of
or by reason of, such obligations or their creation, including any liability
based upon or arising by operation of law as a result of, the status or capacity
of the General Partner as the "general partner" of the Borrower or any other
Company. By executing this Agreement, the Administrative Agent, the LC Issuing
Bank and each Lender expressly waives and releases all such liability.
SECTION 14.13. CONFIDENTIALITY.
The Administrative Agent, the LC Issuing Bank and each Lender agrees
(on behalf of itself and each of its Affiliates, and its and each of their
respective Representatives) to keep and maintain any non-public information
supplied to it by or on behalf of any Company which is identified as being
confidential and shall not use any such information for any purpose other than
in connection with the administration or enforcement of this transaction.
However, nothing herein shall limit the disclosure of any such information (a)
to the extent required by Legal Requirement, (b) to counsel of the
Administrative Agent, the LC Issuing Bank or any Lender in connection with the
transactions provided for in this Agreement, (c) to bank examiners, auditors and
accountants, or (d) any Assignee or Participant (or prospective Assignee or
Participant) so long as such Assignee or Participant (or prospective Assignee or
Participant) first enters into a confidentiality agreement with the
Administrative Agent or such Lender.
SECTION 14.14. ENTIRETY.
THE CREDIT DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE BORROWER,
THE LENDERS, THE LC ISSUING BANK AND THE
65
ADMINISTRATIVE AGENT WITH RESPECT TO SUBJECT MATTER SET FORTH THEREIN AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.
EXECUTED as of the date first stated in this
Credit Agreement.
TEPPCO Partners, L.P. TEPPCO PARTNERS, L.P., as Xxxxxxxx
Xxxxxxx Xxxxx Xxxx.
0000 Xxxxx Xxxxxxx, Xxxxx 0000 By TEXAS EASTERN PRODUCTS
Xxxxxxx, XX 00000 PIPELINE COMPANY, LLC, as
Attn: General Partner
Phone: 000-000-0000
Fax: 000-000-0000 By /s/ Xxxxxxx X. Xxxxxxx
-------------------------
Xxxxxxx X. Xxxxxxx
Senior Vice President, Chief
Financial Officer & Treasurer
SunTrust Bank SUNTRUST BANK, as Administrative
000 Xxxxxxxxx Xxxxxx, N.E., 10th Floor Agent and Lender
Xxxxxxx, XX 00000
Attn: By /s/ Xxxxx X. Xxxxxxx
--------------------------
Xxxxx X. Xxxxxxx
Phone: Director
Fax:
UBS AG, STAMFORD BRANCH
By /s/ Xxxxxxxx X'Xxxxx
------------------------
Xxxxxxxx X'Xxxxx
Director
Banking Products Services
By /s/ Xxxxxxx X. Saint
-----------------------
Xxxxxxx X. Saint
Associate Director
Banking Products Services, US
THE BANK OF NOVA SCOTIA
By /s/ Xxxxxx Xxxx
----------------------
Xxxxxx Xxxx
Senior Manager Loan Operations
BANK ONE, NA
By /s/ Xxxxxx Xxxxxxx
----------------------
Xxxxxx Xxxxxxx
Vice President
FIRST UNION NATIONAL BANK
By /s/ Xxxxxxx Xxxxxxxx
----------------------
Xxxxxxx Xxxxxxxx
Vice President
THE BANK OF NEW YORK
By /s/ Xxxxxxx X. Xxxxxx
-----------------------
Xxxxxxx X. Xxxxxx
Vice President
BNP PARIBAS
By /s/ Xxx Xxxxxxxx
----------------------
Xxx Xxxxxxxx
Director
By /s/ Xxxx Xxxxxxxx
----------------------
Xxxx Xxxxxxxx
Vice President
CREDIT LYONNAIS NEW YORK BRANCH
By /s/ Xxxxxxx Xxxxxxxxx
-------------------------
Xxxxxxx Xxxxxxxxx
Senior Vice President
ROYAL BANK OF CANADA
By /s/ Xxxxx X. XxXxxxxxx
------------------------
Xxxxx X. XxXxxxxxx
Manager
WESTDEUTSCHE LANDESBANK
GIROZENTRALE, NEW YORK BRANCH
By /s/ Xxx Xxxxxxxxxx
-----------------------
Xxx Xxxxxxxxxx
Managing Director
By /s/ Xxxxxxx X. Xxxxxxxx
--------------------------
Xxxxxxx X. Xxxxxxxx
Associate Director
THE ROYAL BANK OF SCOTLAND PLC
By /s/ Xxxxxxxx X. Dundee
--------------------------
Xxxxxxxx X. Dundee
Senior Vice President
BANK OF AMERICA, NATIONAL
ASSOCIATION
By /s/ Xxxxxx X. XxXxxx
------------------------
Xxxxxx X. XxXxxx
Managing Director
KBC BANK N.V.
By /s/ Xxxxxx Xxxxxxxx
-------------------------
Xxxxxx Xxxxxxxx
First Vice President
By /s/ Xxxxxxx xxx Xxxxxx
------------------------
Xxxxxxx xxx Xxxxxx
Associate
NATEXIS BANQUES POPULAIRES
By /s/ Xxxxxx Xxxxx
-----------------------
Xxxxxx Xxxxx
Vice President
By /s/ Xxxxx X. Xxxxxxx, III
----------------------------
Xxxxx X. Xxxxxxx, III
Vice President and Group Manager
BANK HAPOALIM B.M.
By /s/ Xxxxx Xxxx Xxxxx
----------------------------
Xxxxx Xxxx Xxxxx
Senior Vice President & Corporate
Manager
THE INDUSTRIAL BANK OF JAPAN,
LIMITED
By /s/ Xxxxxx Xxxxxxxx
----------------------------
Xxxxxx Xxxxxxxx
Senior Vice President and Deputy
General Manager
BANK OF COMMUNICATIONS, NEW YORK
BRANCH
By /s/ Li, De Cai
----------------------
Li, De Cai
General Manager
SCHEDULE 2
LENDERS AND COMMITMENTS
LENDER COMMITMENT
UBS AG, Stamford Branch 50,000,000.00
000 Xxxxxxxxxx Xxxxxxxxx
Xxxxxxxx, XX 00000
Attn: Xxxxxxx X. XxXxxxxx
Director
Phone: 000-000-0000
Fax: 000-000-0000
SunTrust Bank 49,013,605.23
000 Xxxxxxxxx Xx. X.X.
00xx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxxx X. Xxxxxx, Xx.
Managing Director
Phone: 000-000-0000
Fax: 000-000-0000
The Bank of Nova Scotia 45,680,272.10
Atlanta Agency
000 Xxxxxxxxx Xxxxxx X.X., Xxxxx 0000
Xxxxxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
Director
Phone: 000-000-0000
Fax: 000-000-0000
LENDER COMMITMENT
Bank One, NA 45,680,272.10
Mail Code IL1-0362
0 Xxxx Xxx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxxxxx Xxxxxxxxxxx
Vice President
Phone: 000-000-0000
Fax: 000-000-0000
First Union National Bank 45,680,272.10
0000 Xxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000-0000
Attn: Xxxxxxx X. Xxxxxxxx
Vice President, Energy Investment Banking
Phone: 000-000-0000
Fax: 000-000-0000
The Bank of New York 34,965,986.39
Oil & Gas Division
Xxx Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx X. Xxxxxx
Vice President
Phone: 000-000-0000
Fax: 000-000-0000
BNP Paribas 34,965,986.39
0000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Attn: Xxxx X. Xxxxxx
Assistant Vice President
Phone: 000-000-0000
Fax: 000-000-0000
Credit Lyonnais New York Branch 34,965,986.39
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000-0000
Attn: Philippe Soustra
Executive Vice President
Phone: 000-000-0000
Fax: 000-000-0000
LENDER COMMITMENT
Royal Bank of Canada 34,965,986.39
(Royal Bank Financial Group)
Global Bank - Debt Products
0000 Xxxx Xxx Xxxx.
Xxxxxxx, XX 00000
Attn: Xxxxx XxXxxxxxx
Manager
Phone: 000-000-0000
Fax: 000-000-0000
Westdeutsche Landesbank Girozentrale, New York Branch 28,571,428.57
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx X. Xxxxxxxxx
Director, Credit Department
Phone: 000-000-0000
Fax: 000-000-0000
The Royal Bank of Scotland plc 27,823,129.25
New York Branch
00 Xxxx 00xx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxxx
Phone: 000-000-0000
Fax: 000-000-0000
Bank of America, National Association 17,108,843.53
Energy & Power - Houston
000 Xxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Attn: Xxxx Xxxxxx
Managing Director
Phone: 000-000-0000
Fax: 000-000-0000
KBC Bank N.V. 17,108,843.53
New York Branch
000 Xxxx 00xx Xxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxxx X. Xxxxxxxx
Vice President
Phone: 000-000-0000
000-000-0000
LENDER COMMITMENT
Natexis Banque Populaires 10,714,286.00
000 Xxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attn: Xxxxxx Xxxxxxx
Vice President and Group Manager
Phone: 000-000-0000
Fax: 000-000-0000
Bank Hapoalim B.M. 9,965,986.39
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxxx
Assistant Vice President
Phone: 000-000-0000
Fax: 000-000-0000
The Industrial Bank of Japan, Limited 9,965,986.39
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxx Xxxxxxxxxxx
Vice President
Phone: 000-000-0000
Fax: 000-000-0000
Bank of Communications, New York Branch 2,823,129.25
One Exchange Plaza
00 Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxx
Senior Vice President & Senior Manager
Phone: 212-376-8030 ext. 120
Fax: 000-000-0000
TOTAL COMMITMENTS $500,000,000.00
SCHEDULE 5
CLOSING DOCUMENTS
Unless otherwise specified, all documents are dated either March __, 2002
(the "CLOSING DATE"), or a date no earlier than 30 days before the Closing
Date (a "CURRENT DATE").
1. AMENDED AND RESTATED CREDIT AGREEMENT (the "CREDIT AGREEMENT"), dated
as of March __, 2002, among TEPPCO PARTNERS, L.P., a Delaware limited
partnership (the "BORROWER"), certain Lenders and SUNTRUST BANK, as the
Administrative Agent and the LC Issuing Bank (the defined terms in
which have the same meanings when used in this schedule), accompanied
by:
Schedule 2 - Lenders and Commitments
Schedule 5 - Closing Documents
Schedule 7.2 - List of Companies and
Significant Subsidiaries
Schedule 7.8 - Litigation
Schedule 7.10 - Environmental Matters
Schedule 7.11 - Employee Plan Matters
Schedule 7.12 - Existing Debt
Schedule 7.13 - Existing Liens
Schedule 7.15 - Affiliate Transactions
Schedule 7.20 - Restrictions on Distributions
Exhibit A - Form of Note
Exhibit B - Form of Guaranty
Exhibit C-1 - Form of Borrowing Request
Exhibit C-2 - Form of Notice of Conversion
Exhibit C-3 - Form of Request for Issuance
Exhibit C-4 - Form of Compliance
Certificate (Borrower)
Exhibit D - Form of Opinion of Counsel
Exhibit E - Form of Assignment and
Assumption Agreement
2. NOTES, dated the Closing Date, executed by the Borrower, substantially
in the form of Exhibit A to the Credit Agreement, one payable to each
Lender in the amount stated beside its name below:
LENDER AMOUNT
------ ------
UBS AG, Stamford Branch 50,000,000.00
SunTrust Bank 49,013,605.23
The Bank of Nova Scotia 45,680,272.10
Bank One, NA 45,680,272.10
First Union National Bank 45,680,272.10
The Bank of New York 34,965,986.39
BNP Paribas 34,965,986.39
Credit Lyonnais New York 34,965,986.39
Branch
Royal Bank of Canada 34,965,986.39
Westdeutsche Landesbank 28,571,428.57
Girozentrale, New York
Branch
The Royal Bank of 27,823,129.25
Scotland plc
Bank of America, 17,108,843.53
National Association
KBC Bank N.V. 17,108,843.53
LENDER AMOUNT
------ ------
Natexis Banques 10,714,286.00
Populaires
Bank Hapoalim B.M. 9,965,986.39
The Industrial Bank of 9,965,986.39
Japan, Limited
Bank of Communications, 2,823,129.25
New York Branch
3. GUARANTY, executed by each of TCTM, TE Products, Midstream and Jonah
Gas, each dated as of the Closing Date, each in substantially the form
of EXHIBIT B to the Credit Agreement.
4. COMPLIANCE CERTIFICATE, dated and prepared as of the initial Extension
of Credit (the "FUNDING DATE"), executed by a Responsible Officer on
behalf of the Borrower in substantially the form of Exhibit C-4 to the
Credit Agreement.
5. INSURANCE POLICIES OR BINDERS dated as of Current Dates and reflecting
the insurance coverage required by Section 8.9 of the Credit Agreement.
6. COMPLETION OF DUE DILIGENCE satisfactory to the Administrative Agent as
to the absence of any Liens not otherwise permitted by Section 9.3 of
the Credit Agreement.
7. PAYMENT OF ALL FEES payable to the Administrative Agent, its
Affiliates, the LC Issuing Bank and the Lenders pursuant to Section 4
of the Credit Agreement and each Credit Document, on or before the
Funding Date.
8. PAYMENT OF LEGAL FEES and expenses incurred by counsel to
Administrative Agent through the Funding Date.
9. CONSTITUENT DOCUMENTS of the Borrower and each Guarantor as of the
Closing Date certified by a Responsible Officer of the Borrower.
10. CERTIFICATES OF APPROPRIATE GOVERNMENTAL AUTHORITIES of the following
jurisdictions, dated as of Current Dates, with respect to the
existence, authority to transact business and good standing of the
following Persons:
PERSON JURISDICTION(s) DATE
------ --------------- ----
TCTM Delaware 3/15/02
Texas 3/26/02
Midstream Colorado 3/01/02
Delaware 3/15/02
Texas 3/26/02
Wyoming 3/26/02
-2-
PERSON JURISDICTION(s) DATE
------ --------------- ----
TE Products Arkansas 3/26/02
Delaware 3/15/02
Illinois 3/26/02
Indiana 3/26/02
Kentucky 3/26/02
Louisiana 3/25/02
Missouri 3/26/02
New York 3/25/02
Ohio 3/37/02
Pennsylvania 3/26/02
Rhode Island 3/27/02
Texas 3/26/02
West Virginia 3/26/02
TEPPCO GP Arkansas 3/26/02
Delaware 3/15/02
Illinois 3/26/02
Indiana 3/26/02
Kentucky 3/26/02
Louisiana 3/25/02
Missouri 3/26/02
New York 3/27/02
Pennsylvania 3/26/02
Rhode Island 3/27/02
Texas 3/26/02
West Virginia 3/26/02
Wyoming 3/26/02
Borrower Delaware 3/15/02
Texas 3/26/02
Texas Eastern Delaware 3/15/02
11. OFFICERS' CERTIFICATE dated as of the Closing Date, executed by the
President or a Vice President and by the Secretary of an Assistant
Secretary of Texas Eastern certifying (a) resolutions adopted by Texas
Eastern's directors authorizing the executing and delivery of the
Credit Documents on behalf of Texas Eastern and the Borrower, as the
case may be, (b) each FINA/BASF
-3-
Contract is in full force and effect and has not been amended, and (c)
the incumbency and signatures of officers of Texas Eastern authorized
to execute and deliver any Credit Document.
Annex A - Resolutions of Texas Eastern's's Directors
Annex B - Certificate of Formation of Texas Eastern
Annex C - Limited Liability Company Agreement of Texas
Eastern
Annex D - Agreement of Limited Partnership of the Borrower
12. OFFICERS' CERTIFICATE executed by the President or a Vice President and
by the Secretary or an Assistant Secretary of TEPPCO GP certifying (a)
resolutions adopted by TEPPCO GP's directors authorizing the executing
and delivery of the Credit Documents on behalf of TEPPCO GP and each
Guarantor, as the case may be, and (b) the incumbency and signatures of
officers of TEPPCO GP authorized to execute and deliver any Credit
Document.
Annex A - Resolutions of TEPPCO GP's Directors
Annex B - Certificate of Formation of TEPPCO GP
Annex C - Agreement of Limited Partnership of each Guarantor
13. OPINION dated the Funding Date, of Fulbright & Xxxxxxxx L.L.P., as
counsel to Texas Eastern, the Borrower, TEPPCO GP and the Guarantors,
addressed to the Administrative Agent and the Lenders, and in
substantially the form of Exhibit D to the Credit Agreement.
14. COPIES of the Current Financials.
15. Such other documents and items as the Administrative Agent may
reasonably request.
-4-
SCHEDULE 7.2
COMPANIES AND NAMES
QUALIFIED OTHER NAMES NAME CHANGE
JURISDICTION TO DO USED IN IN LAST
COMPANY OF FORMATION BUSINESS PAST 5 YEARS 4 MONTHS OWNED BY
------- ------------ --------- ------------ ----------- --------
SCHEDULE 7.8
LITIGATION
SCHEDULE 7.10
ENVIRONMENTAL MATTERS
SCHEDULE 7.11
EMPLOYEE PLAN MATTERS
SCHEDULE 7.12
EXISTING DEBT
SCHEDULE 7.13
EXISTING LIENS
SCHEDULE 7.15
AFFILIATE TRANSACTIONS
EXHIBIT A
FORM OF NOTE
$__________ [Date]
FOR VALUE RECEIVED, TEPPCO PARTNERS, L.P., a Delaware limited
partnership (the "MAKER"), promises to pay to the order of
______________________ (the "PAYEE"), the principal amount of $__________,
together with interest on the unpaid amounts thereof from time to time
outstanding.
This note is a "Note" under the Amended and Restated Credit Agreement,
dated as of March __, 2002 (as renewed, extended, amended, or restated, the
"CREDIT AGREEMENT"), among the Maker, the Payee, certain other Lenders from time
to time and SunTrust Bank, as the Administrative Agent for the Lenders and as
the LC Issuing Bank. All of the terms defined in the Credit Agreement have the
same meanings when used, unless otherwise defined, in this note.
This note incorporates by reference the principal and interest payment
terms in the Credit Agreement for this note, including, without limitation, the
final maturity date for this note, which is the Stated Termination Date.
Principal and interest are payable to the holder of this note by payment to the
Administrative Agent at its offices at 000 Xxxxxxxxx Xxxxxx, X.X., 00xx Xxxxx,
Xxxxxxx, Xxxxxxx 00000 or at any other address of which the Administrative Agent
may notify the Maker in writing.
This note also incorporates by reference all other provisions in the
Credit Agreement applicable to this note including provisions for disbursement
of principal, applicable interest rates before and after certain Events of
Default, voluntary and mandatory prepayments, acceleration of maturity, exercise
of Rights, payment of attorney's fees, courts costs and other costs of
collection, certain waivers by the Maker and other obligors, assurances and
security, choice of New York and United States federal law, usury savings and
other matters applicable to Credit Documents under the Credit Agreement.
TEPPCO PARTNERS, L.P., as the Maker
By TEXAS EASTERN PRODUCTS PIPELINE
COMPANY, LLC, as General Partner
By
------------------------------
Name:
Title:
EXHIBIT B
FORM OF GUARANTY
THIS GUARANTY (this "GUARANTY") is executed as of [_______________], by
[NAME OF GUARANTOR], a ________________ (the "GUARANTOR") and a subsidiary of
TEPPCO PARTNERS, L.P., a Delaware limited partnership (the "BORROWER"), for the
benefit of SUNTRUST BANK (in its capacity as the Administrative Agent for the
lenders (the "LENDERS") now or in the future party to the Credit Agreement
described below, the "ADMINISTRATIVE AGENT"), the LC Issuing Bank (as defined in
the Credit Agreement) and the Lenders.
The Borrower, the Administrative Agent, the LC Issuing Bank and the
Lenders have executed the Amended and Restated Credit Agreement, dated as of
March __, 2002 (as renewed, extended, amended or restated, the "CREDIT
AGREEMENT"). The execution and delivery of this Guaranty are conditions
precedent to the obligations of the Lenders and the LC Issuing Bank to make
Extensions of Credit under the Credit Agreement. All of the terms defined in the
Credit Agreement have the same meanings when used, unless otherwise defined, in
this Guaranty.
ACCORDINGLY, for adequate and sufficient consideration, and in order to
induce the Lenders and the LC Issuing Bank to make Extensions of Credit under
the Credit Agreement, the Guarantor hereby agrees as follows:
1. GUARANTY.
(a) The Guarantor hereby guarantees (jointly and severally
with any other "Guarantor" under the Credit Agreement) to the
Administrative Agent, the LC Issuing Bank and the Lenders
(collectively, the "FINANCE PARTIES") the full and punctual payment
when due (whether at maturity, by acceleration or otherwise), and in
manner specified under the Credit Documents, of all of the Obligations.
This Guaranty is an absolute, unconditional and continuing guaranty of
the full and punctual payment and not of their collectibility only and
is in no way conditioned upon any other means of obtaining their
payment. Should the Borrower default in the payment of any of the
Obligations, the obligations of the Guarantor hereunder shall become
immediately due and payable to the Finance Parties. The obligations of
the Guarantor under this Guaranty (the "GUARANTOR OBLIGATIONS") are
independent of the Obligations, and a separate action or actions may be
brought and prosecuted against the Guarantor to enforce this Guaranty,
irrespective of whether any action is brought against the Borrower or
any other guarantor of the Obligations or whether the Borrower or any
such guarantor is joined in any such action or actions.
(b) The Guarantor further agrees, as the principal obligor and
not as a guarantor only, to pay to the Finance Parties, on demand, all
costs and expenses (including court costs and reasonable legal
expenses) incurred or expended by the Finance Parties in connection
with the enforcement of this Guaranty.
(c) The Guarantor hereby agrees to indemnify each Finance
Party on demand against any loss or liability suffered by such Finance
Party if any of the Obligations is or becomes, unenforceable, invalid
or illegal.
2. CUMULATIVE RIGHTS. If the Guarantor becomes liable for any
indebtedness owing by the Borrower to any Finance Party, other than under this
Guaranty, that liability may not be in any manner impaired or affected by this
Guaranty. The Rights of the Finance Parties under this Guaranty are cumulative
of any and all other Rights that any Finance Party may ever have against the
Guarantor. The exercise by Bank of any Right under this Guaranty or otherwise
does not preclude the concurrent or subsequent exercise of any other Right.
3. LIMITATION ON LIABILITY. Anything in this Guaranty to the contrary
notwithstanding, the obligations of the Guarantor hereunder shall be limited to
a maximum aggregate amount equal to the greatest amount that would not render
the Guarantor's obligations hereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of Title 11 of the United States Code
or any provisions of applicable state law (collectively, the "FRAUDULENT
TRANSFER LAWS"), in each case after giving effect to all other liabilities of
the Guarantor, contingent or otherwise, that are relevant under the fraudulent
transfer laws (specifically excluding, however, any liabilities of the Guarantor
(i) in respect of intercompany indebtedness to the Borrower or Affiliates of the
Borrower to the extent that such indebtedness would be discharged in an amount
equal to the amount paid by the Guarantor hereunder and (ii) under any guaranty
of senior unsecured indebtedness or Debt subordinated in right of payment of the
Obligations, which guaranty shall contain a limitation as to maximum amount
similar to that set forth in this Section, pursuant to which the liability of
the Guarantor hereunder is included in the liabilities taken into account in
determining such maximum amount) and after giving effect as assets to the value
(as determined under the applicable provisions of the fraudulent transfer laws)
of any rights to subrogation, contribution, reimbursement, indemnity or similar
rights of the Guarantor pursuant to (A) applicable law or (B) any agreement
providing for an equitable allocation among the Guarantor and other Affiliates
of the Borrower of obligations arising under guarantees by such parties.
4. SUBORDINATION. All principal of and interest on all indebtedness,
liabilities and obligations of the Companies to the Guarantor (the "SUBORDINATED
DEBT"), whether direct, indirect, fixed, contingent, liquidated, unliquidated,
joint, several or joint and several, now or in the future existing, due or to
become due to the Guarantor, or held or to be held by the Guarantor, whether
created directly or acquired by assignment or otherwise, and whether evidenced
by written instrument or not, is expressly subordinated to the full and final
payment of the Guarantor Obligations (and the Guarantor agrees not to accept any
payment of any Subordinated Debt from the Companies) during any period when any
Event of Default or Potential Default has occurred and is continuing. If the
Guarantor receives any payment of any Subordinated Debt in violation of the
preceding subordination provision, then the Guarantor shall hold that payment in
trust for the Finance Parties and promptly turn it over to the Administrative
Agent, in the form received (with any necessary endorsements), to be applied to
the Guarantor Obligations.
5. SUBROGATION AND CONTRIBUTION. Until the Commitments have been
terminated and the Guarantor Obligations have been fully paid and performed (a)
the Guarantor may not
B-2
assert, enforce or otherwise exercise any Right of subrogation to any of the
Rights or Liens of any Finance Party or any other beneficiary against the
Borrower or any other obligor on the Obligations or any collateral or other
security or any Right of recourse, reimbursement, subrogation, contribution,
indemnification, or similar Right against the Borrower or any other obligor on
the Obligations or any guarantor thereof, (b) the Guarantor defers all of the
foregoing Rights (whether they arise in equity, under contract, by statute,
under common law or otherwise), and (c) the Guarantor defers the benefit of, and
any Right to participate in, any collateral or other security given to any
Finance Party or to any other beneficiary to secure payment of any part of the
Obligations.
6. NO RELEASE. The Guarantor's obligations under this Guaranty shall
not be released, diminished, or impaired by the occurrence of any one or more of
the following events: (a) Any taking or accepting of any other security or
assurance for the Obligations; (b) any release, surrender, exchange,
subordination, impairment, or loss of any collateral securing the Obligations;
(c) any full or partial release of the liability of any other obligor on the
Obligations (other than as the result of payment on the Obligations); (d) the
modification of, or waiver of compliance with, any terms of any other Credit
Document; (e) any present or future insolvency, bankruptcy, or lack of
corporate, partnership or limited liability company power of any other obligor
at any time liable for the Obligations; (f) any renewal, extension or
rearrangement of the Obligations or any adjustment, indulgence, forbearance or
compromise that may be granted or given by any Finance Party to any other
obligor on the Obligations; (g) any neglect, delay, omission, failure or refusal
of any Finance Party to take or prosecute any action in connection with the
Obligations; (h) any failure of any Finance Party to notify the Guarantor of any
renewal, extension or assignment of any part of the Obligations, or the release
of any security or of any other action taken or refrained from being taken by
any Finance Party against the Borrower, or any new agreement among the Finance
Parties and the Borrower, it being understood that no Finance Party is required
to give the Guarantor notice of any kind under any circumstances whatsoever with
respect to or in connection with any part of the Obligations, other than any
notice specifically required to be given to the Guarantor by applicable Legal
Requirements or elsewhere in this Guaranty; (i) the unenforceability of the
Obligations against any other obligor because they exceed the amount permitted
by applicable Legal Requirements, the act of creating the Obligations is ultra
xxxxx, the officers creating the Obligations exceeded their authority or
violated their fiduciary duties in connection with the Obligations, or
otherwise; or (j) any payment of any part of the Obligations to any Finance
Party is held to constitute a preference under any Debtor Law or for any other
reason any Finance Party is required to refund that payment or make payment to
someone else (and in each such instance this Guaranty shall be reinstated in an
amount equal to that payment).
7. WAIVERS. The Guarantor waives (to the extent lawful and until full
payment of the Guarantor Obligations) all defenses to the enforcement of this
Guaranty (and Rights that may be asserted as defenses to the enforcement of this
Guaranty) including, but not limited to (i) any Right to revoke this Guaranty
with respect to future indebtedness arising under the Credit Agreement; (ii) any
Right to require any Finance Party to do any of the following before the
Guarantor is obligated to pay any part of the Guarantor Obligations or before
any Finance Party may proceed against the Guarantor: (A) xxx or exhaust remedies
against the Borrower and other guarantors or obligors in respect of the
Obligations, (B) xxx on an accrued right of action in respect of the Obligations
or bring any other action, exercise any other right or exhaust all other
B-3
remedies, or (C) enforce rights against the Borrower's assets or the collateral
pledged by the Borrower to secure any part of the Obligations; (iii) any right
relating to the timing, manner or conduct of any Finance Party's enforcement of
rights against the Borrower's assets or the collateral pledged by the Borrower
to secure any part of the Obligations; (iv) if the Guarantor and the Borrower
(or a third party) have each pledged assets to secure any part of the
Obligations or the Guaranteed Obligations or the Guaranteed Obligations, any
right to require any Finance Party to proceed first against the other collateral
before proceeding against collateral pledged by the Guarantor; (v) notice that
this Guaranty has been accepted by any Finance Party and notice of any
indebtedness to which this Guaranty may apply; (vi) any right of the Guarantor
to receive notice from any Finance Party of changes that affect the
creditworthiness of the Borrower; and (vii) except for any notice specifically
required by this Guaranty, presentation, presentment, demand for payment,
protest, notice of protest, notice of dishonor or nonpayment of any
indebtedness, notice of intent to accelerate, notice of acceleration, notice of
any suit or other action by any Finance Party against the Borrower, the
Guarantor or any other Person and any notice to any party liable for the
obligation that is the subject of the suit or action.
8. CREDIT AGREEMENT PROVISIONS. The Guarantor acknowledges that (a) the
Borrower has made certain representations and warranties in the Credit Agreement
with respect to the Guarantor and confirms that each such representation and
warranty is true and correct, with the same effect as set forth herein, and (b)
the Borrower has made certain covenants and agreements in the Credit Agreement
with respect to the Guarantor and agrees to promptly and properly comply with or
be bound by each of them, with the same effect as if set forth herein.
9. RELIANCE AND DUTY TO REMAIN INFORMED. The Guarantor confirms that it
has executed and delivered this Guaranty after reviewing the terms and
conditions of the Credit Documents and all other information as it has deemed
appropriate in order to make its own credit analysis and decision to execute and
deliver this Guaranty. The Guarantor confirms that it has made its own
independent investigation with respect to the Borrower's creditworthiness and is
not executing and delivering this Guaranty in reliance on any representation or
warranty by any Finance Party as to that creditworthiness. The Guarantor
expressly assumes all responsibilities to remain informed of the financial
condition of the Borrower and any circumstances affecting the Borrower's ability
to perform under the Credit Documents to which it is a party or any collateral
securing the Obligations.
10. NO REDUCTION. Subject to Section 3 of this Guaranty, the Guarantor
Obligations may not be reduced, discharged or released because or by reason of
any existing or future offset, claim or defense (except for the defense of
complete and final payment of the Guarantor Obligations) of the Borrower or any
other obligor against any Finance Party or against payment of the Guarantor
Obligations, whether that offset, claim or defense arises in connection with the
Guarantor Obligations or otherwise. Those claims and defenses include, without
limitation, failure of consideration, breach of warranty, fraud, bankruptcy,
incapacity/infancy, statute of limitations, lender liability, accord and
satisfaction, usury, forged signatures, mistake, impossibility, frustration of
purpose and unconscionability.
11. COMMUNICATIONS. For purposes of Section 14.2 of the Credit
Agreement, the Guarantor's address and fax number are the same as the Borrower.
B-4
12. AMENDMENTS, ETC. No amendment, waiver or discharge to or under this
Guaranty is valid unless it is in writing and is signed by the party against
whom it is sought to be enforced and is otherwise in conformity with the
requirements of Section 14.8 of the Credit Agreement.
13. ENTIRETY. THIS GUARANTY AND ANY OTHER CREDIT DOCUMENT TO WHICH THE
GUARANTOR IS A PARTY REPRESENT THE FINAL AGREEMENT AMONG THE GUARANTOR, THE
ADMINISTRATIVE AGENT, THE LENDERS AND THE LC ISSUING BANK WITH RESPECT TO THE
SUBJECT MATTER OF THIS GUARANTY AND ANY SUCH OTHER CREDIT DOCUMENT AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE
PARTIES.
14. ADMINISTRATIVE AGENT AND THE LENDERS AND LC ISSUING BANK. The
Administrative Agent may, without the joinder of any other Finance Party,
exercise any Rights in any Finance Party's favor under or in connection with
this Guaranty. The Administrative Agent's and other Finance Party's Rights and
obligations vis-a-vis each other may be subject to one or more separate
agreements between those parties. However, the Guarantor is not required to
inquire about any such agreement or is subject to any terms of it unless the
Guarantor specifically joins it. Therefore neither the Guarantor nor its
successors or assigns is entitled to any benefits or provisions of any such
separate agreement or is entitled to rely upon or raise as a defense any party's
failure or refusal to comply with the provisions of it.
15. PARTIES. This Guaranty benefits the Finance Parties and their
respective successors and permitted assigns and binds the Guarantor and their
successors and assigns. Upon appointment of any successor Administrative Agent
under, and pursuant to the terms of, the Credit Agreement, all of the Rights of
the Administrative Agent under this Guaranty automatically vest in such
successor Administrative Agent without any further act, deed, conveyance or
other formality other than that appointment. The Rights of the Administrative
Agent, the Lenders and the LC Issuing Bank under this Guaranty may be
transferred with any permitted assignment of the Obligations. The Credit
Agreement contains provisions governing assignments of the Obligations and of
Rights and obligations under this Guaranty.
16. VENUE, SERVICE OF PROCESS, AND JURY TRIAL. THE GUARANTOR, FOR
ITSELF AND ITS SUCCESSORS AND ASSIGNS, IRREVOCABLY (A) SUBMITS TO THE
NONEXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS IN NEW YORK, (B)
WAIVES, TO THE FULLEST EXTENT LAWFUL, ANY OBJECTION THAT IT MAY NOW OR IN THE
FUTURE HAVE TO THE LAYING OF VENUE OF ANY LITIGATION ARISING OUT OF OR IN
CONNECTION WITH THIS GUARANTY AND THE GUARANTEED OBLIGATION BROUGHT IN THE
DISTRICT COURTS OF NEW YORK COUNTY, NEW YORK, OR IN THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, (C) WAIVES ANY CLAIMS THAT ANY
LITIGATION BROUGHT IN ANY OF THE FOREGOING COURTS HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM, (D) CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THOSE
COURTS IN ANY LITIGATION BY THE MAILING OF COPIES OF THAT PROCESS BY CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID, BY HAND DELIVERY, OR BY
DELIVERY BY A NATIONALLY-RECOGNIZED COURIER SERVICE, AND SERVICE SHALL BE DEEMED
COMPLETE UPON DELIVERY OF THE LEGAL PROCESS AT ITS ADDRESS FOR PURPOSES OF THIS
AGREEMENT, (E) AGREES THAT ANY LEGAL PROCEEDING AGAINST ANY PARTY TO ANY CREDIT
DOCUMENT ARISING OUT OF OR IN
B-5
CONNECTION WITH THE CREDIT DOCUMENTS OR THE OBLIGATION MAY BE BROUGHT IN ONE OF
THE FOREGOING COURTS, AND (F) IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED
BY LAW ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF ANY CREDIT DOCUMENT. The scope of each of the
foregoing waivers is intended to be all encompassing of any and all disputes
that may be filed in any court and that relate to the subject matter of this
transaction, including, without limitation, contract claims, tort claims, breach
of duty claims, and all other common law and statutory claims. THE GUARANTOR
ACKNOWLEDGES THAT THESE WAIVERS ARE A MATERIAL INDUCEMENT TO EACH FINANCE
PARTY'S AGREEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH FINANCE PARTY
HAS ALREADY RELIED ON THESE WAIVERS IN ENTERING INTO THE CREDIT AGREEMENT AND
THAT EACH FINANCE PARTY WILL CONTINUE TO RELY ON EACH OF THESE WAIVERS IN
RELATED FUTURE DEALINGS. THE GUARANTOR FURTHER WARRANTS AND REPRESENTS THAT IT
HAS REVIEWED THESE WAIVERS WITH ITS LEGAL COUNSEL, AND THAT IT KNOWINGLY AND
VOLUNTARILY AGREES TO EACH WAIVER FOLLOWING CONSULTATION WITH LEGAL COUNSEL. The
waivers in this paragraph are irrevocable, meaning that they may not be modified
either orally or in writing, and these waivers apply to any future renewals,
extensions, amendments, modifications, or replacements in respect of this
Guaranty. In connection with any Litigation, this Guaranty may be filed as a
written consent to a trial by the court.
17. GOVERNING LAW. This Guaranty shall be governed by, and construed in
accordance with, the law of the State of New York and the United States of
America.
B-6
EXECUTED as of the date first stated in this Guaranty.
[NAME OF GUARANTOR]
By
-------------------------------------
Name:
Title:
EXECUTED by the Administrative Agent solely in acknowledgment of
Paragraph 15 above.
SUNTRUST BANK, as Administrative Agent
By
-------------------------------------
Name:
Title:
EXHIBIT C-1
FORM OF BORROWING REQUEST
AGENT: SunTrust Bank DATE: ,
------------ -------
BORROWER: TEPPCO PARTNERS, L.P.
--------------------------------------------------------------------------------
This notice is delivered under Article 2 of the Amended and Restated
Credit Agreement, dated as of March __, 2002 (as renewed, extended and amended,
the "CREDIT AGREEMENT"), among the Borrower, the Administrative Agent, the LC
Issuing Bank and certain lenders. Terms defined in the Credit Agreement have the
same meanings when used (unless otherwise defined) in this request.
The Borrower requests a Borrowing under the Credit Agreement as
follows:
Borrowing Date(1)
--------------
Amount of Borrowing(2) $
--------------
Type of Borrower(3)
--------------
LIBOR Rate Borrowing, the Interest Period(4) months
--------
The Borrower certifies that on the date of this request and on the
above Borrowing Date (after giving effect to the requested Borrowing) (a) all of
the representations and warranties in the Credit Documents are and will be true
and correct in all material respects (unless they speak to a specific date or
the facts on which they are based have been changed by transactions contemplated
or permitted by the Credit Agreement), (b) no Material Adverse Event, Event of
Default or Potential Default has or will have occurred and is or will be
continuing, and (c) the amount of the Borrowing will not cause any of the
limitations in Section 2.1 or 2.5 to be exceeded.
TEPPCO PARTNERS, L.P., the Borrower
By TEXAS EASTERN PRODUCTS
PIPELINE COMPANY, LLC, as
General Partner
By
------------------------------
Name:
(5)Title:
-----------------------
(1) Business Day of request for Base Rate Borrowing or at least second Business
Day after request for LIBOR Rate Borrowing.
(2) Not less than $1,000,000 or a $100,000 greater multiple for a Base Rate
Borrowing and not less than $10,000,000 or a $1,000,000 greater multiple
for a LIBOR Rate Borrowing.
(3) LIBOR Rate Borrowing or Base Rate Borrowing.
(4) 1, 2, 3 or 6 months.
(5) Must be a Responsible Officer.
EXHIBIT C-2
FORM OF NOTICE OF CONVERSION
AGENT: SunTrust Bank DATE: ,
--------------- -----
BORROWER: TEPPCO PARTNERS, L.P.
--------------------------------------------------------------------------------
This notice is delivered under Section 3.10 of the Amended and Restated
Credit Agreement, dated as of March __, 2002 (as renewed, extended and amended,
the "CREDIT AGREEMENT"), among the Borrower, the Administrative Agent, the LC
Issuing Bank and certain lenders. Terms defined in the Credit Agreement have the
same meanings when used (unless otherwise defined) in this notice.
The Borrower presently has a ________ (6) Borrowing (the "EXISTING
BORROWING") in the amount of $___________, which, if a LIBOR Rate Borrowing, has
an Interest Period of _____(7) ending on ________. On ___________ (the
"CONVERSION DATE"), the Borrower shall partially pay, continue in full or part
as the same Type of Borrowing, or convert in full or part to another Type of
Borrowing and (if applicable) with the Interest Period(s) designated below
[check applicable boxes]:
[ ] Amount to be paid, if any, $ .
--------------------
[ ] Balance to be in the following Types of Borrowings with (if
applicable) the following Interest Period(s):
TYPE(1) AMOUNT(2) INTEREST PERIOD(3)
------- --------- ------------------
$
------- ------------- ------------------
$
------- ------------- ------------------
$
------- ------------- ------------------
$
------- ------------- ------------------
The Borrower certifies that on the date of this notice and on the
Conversion Date (and after giving effect to the above actions) (a) all of the
representations and warranties in the Credit Documents will be true and correct
in all material respects (unless they speak to a specific date or the facts on
which they are based have been changed by transactions contemplated or expressly
permitted by the Credit Agreement) and (b) no Material Adverse Event, Default or
Potential Default has or will have occurred and is or will be continuing.
-------------------
(6) Base Rate or LIBOR Rate.
(7) 1, 2, 3 or 6 months.
TEPPCO PARTNERS, L.P., as Borrower
By TEXAS EASTERN PRODUCTS PIPELINE
COMPANY, LLC, as General Partner
By
--------------------------------
Name:
(8)Title:
---------------
(8) Must be a Responsible Officer.
C-2-2
EXHIBIT C-3
FORM OF REQUEST FOR ISSUANCE
AGENT: SunTrust Bank DATE: ,
-------------- -------
BORROWER: TEPPCO PARTNERS, L.P.
--------------------------------------------------------------------------------
This notice is delivered under Section 2.5(a) of the Amended and
Restated Credit Agreement, dated as of March __, 2002 (as renewed, extended and
amended, the "CREDIT AGREEMENT"), among the Borrower, the Administrative Agent,
the LC Issuing Bank and certain lenders. Terms defined in the Credit Agreement
have the same meanings when used (unless otherwise defined) in this request.
The Borrower requests the [issuance][extension][modification]
[amendment] of a Letter of Credit under the Credit Agreement as follows:
Date of [issuance][extension][modification][amendment]
---------------------
Stated amount $
---------------------
Name and Address of the beneficiary
----------------------
Drawing conditions
-------------------------------------------------------------------
-------------------------------------------------------------------
-------------------------------------------------------------------
Stated Expiry Date
----------------------
The Borrower certifies that on the date of this request and on the date
of the Extension of Credit proposed above (after giving effect to the requested
Extension of Credit) (a) all of the representations and warranties in the Credit
Documents are and will be true and correct in all material respects (unless they
speak to a specific date or the facts on which they are based have been changed
by transactions contemplated or permitted by the Credit Agreement), (b) no
Material Adverse Event, Event of Default, or Potential Default has or will have
occurred and is or will be continuing, and (c) the amount of the Letter of
Credit will not cause any of the limitations in Section 2.1 or 2.5 to be
exceeded.
TEPPCO PARTNERS, L.P., as Borrower
By TEXAS EASTERN PRODUCTS PIPELINE
COMPANY, LLC, as General
Partner
By
--------------------------------
Name:
(9)Title:
------------------
(9) Must be a Responsible Officer.
EXHIBIT C-4
FORM OF COMPLIANCE CERTIFICATE
(BORROWER)
FOR THE FISCAL QUARTER/YEAR ENDED _____________ (the "SUBJECT PERIOD")
AGENT: SunTrust Bank DATE: ,
------- ------
BORROWER: TEPPCO PARTNERS, L.P.
--------------------------------------------------------------------------------
This notice is delivered under Section 8.1 of the Amended and Restated
Credit Agreement, dated as of March __, 2002 (as renewed, extended and amended,
the "CREDIT AGREEMENT"), among the Borrower, the Administrative Agent, the LC
Issuing Bank and certain lenders. Terms defined in the Credit Agreement have the
same meanings when used (unless otherwise defined) in this certificate.
In my capacity as a Responsible Officer, and on behalf of the Borrower,
I certify to the Administrative Agent, the LC Issuing Bank and each Lender on
the date of this certificate that (a) I am a Responsible Officer, (b) the
Borrower's Financial Statements attached to this certificate were prepared in
accordance with GAAP and present fairly its consolidated and (if annual
Financials) consolidating financial condition and results of operation as of,
and for the fiscal quarter or year, as the case may be, ended on, the last day
of the Subject Period, (c) a review of the activities of the Companies during
the Subject Period has been made under my supervision with a view to determining
whether, during the Subject Period, the Companies performed and complied with
all of their obligations under the Credit Documents, and, during the Subject
Period, to my knowledge (i) the Companies performed, and complied with all of
their obligations under the Credit Documents (except for the deviations, if any,
described on a schedule attached to this certificate) in all material respects
and (ii) no Event of Default (nor any Potential Default) has occurred which has
not been cured or waived (except the Events of Default or Potential Defaults, if
any, described on the schedule attached to this certificate), and (d) to my
knowledge, the status of compliance by the Companies with Article 10 of the
Credit Agreement at the end of the Subject Period is as described on the
schedule attached to this certificate.
By
--------------------------------
Name:
(10)Title:
[COMPLIANCE CERTIFICATE NOT EFFECTIVE WITHOUT COMPLETED SCHEDULE ATTACHED]
-----------------
(10) Must be a Responsible Officer.
SCHEDULE TO COMPLIANCE CERTIFICATE
(For Fiscal Quarter/Year Ended )
A. Describe deviations from performance or compliance with covenants,
if any, pursuant to clause (c)(i) of the attached certificate. If none, so
state.
B. Describe Potential Defaults and Events of Default, if any, pursuant
to clause (c)(ii) of the attached certificate. If none, so state.
C. Reflect compliance with Article 10 at the end of the subject period
on a consolidated basis pursuant to clause (d) of the attached certificate. The
following table is a short-hand reflection of that compliance and must be
completed fully in accordance with the express language of the Credit Agreement.
COVENANT AT END OF SUBJECT PERIOD
-------- ------------------------
SECTION 10.1 MINIMUM CONSOLIDATED NET WORTH
a. The Consolidated Net Worth of the Borrower as of the last day $
of the subject period ------------- --------------
b. 80% of the Consolidated Net Worth of the Borrower as of $
December 31, 2000 ------------- --------------
c. 100% of the Net Cash Proceeds of all Equity Events occurring $
after December 31, 2000 ------------- --------------
d. MINIMUM --- Sum of Line (b) and Line (c) $
------------- --------------
SECTION 10.2 MAXIMUM CONSOLIDATED FUNDED DEBT/PRO FORMA EBITDA RATIO
a. Consolidated Funded Debt as of the last day of subject period $
------------- --------------
b. Pro Forma EBITDA for the four consecutive fiscal quarters $
ending with last day of subject period ------------- --------------
c. Ratio of Line (a) to Line (b) _____ to 1.00
------------- --------------
d. MAXIMUM -- 4.50 to 1.00
------------- --------------
SECTION 10.3 FIXED CHARGE COVERAGE RATIO
C-4-2
COVENANT AT END OF SUBJECT PERIOD
-------- ------------------------
a. EBITDA of the Borrower as of the last day of Subject Period $
------------ ------------
b. Interest Expense for the four consecutive fiscal quarters
ending with last day of Subject Period (excluding Interest
Expense of Excluded Subsidiaries) $
------------ ------------
c. Maintenance Capital Expenditures for the four consecutive
fiscal quarters ending with last day of Subject Period
(excluding Maintenance Capital Expenditures of Excluded
Subsidiaries) $
------------ ------------
d. Sum of Line (b) and Line (c) $
------------ ------------
e. Ratio of Line (a) to Line (d) ___ to 1.00
------------ ------------
f. Minimum 1.75 to 1.00
------------ ------------
C-4-3
EXHIBIT D
OPINION OF COUNSEL
[TO BE COMPLETED ONCE FORM IS AGREED UPON]
EXHIBIT E
ASSIGNMENT AGREEMENT
THIS AGREEMENT (the "AGREEMENT") is entered into as of _______, between
______________ (the "ASSIGNOR") and ______________ (the "ASSIGNEE").
TEPPCO PARTNERS, L.P., a Delaware limited partnership (the "BORROWER"),
the Lenders and SUNTRUST BANK, as the Administrative Agent for the Lenders and
as the LC Issuing Bank, are parties to the Amended and Restated Credit
Agreement, dated as of March __, 2002 (as renewed, extended, amended, or
restated, the "CREDIT Agreement"), all of the defined terms in which have the
same meanings when used, unless otherwise defined, in this Agreement. This
Agreement is entered into as required by Section 14.10(d) of the Credit
Agreement and is not effective (unless otherwise provided in that Section) until
consented to by the Borrower, the Administrative Agent and the LC Issuing Bank,
which consents may not under the Credit Agreement be unreasonably withheld.
ACCORDINGLY, for adequate and sufficient consideration, the Assignor
and the Assignee agree as follows:
1. ASSIGNMENT. By this agreement, and effective as of ______________
(which must be at least five Business Days after the execution and delivery of
this agreement to both the Administrative Agent and, if required, the Borrower,
for consent, the "EFFECTIVE DATE"), the Assignor sells and assigns to the
Assignee (without recourse to the Assignor), and the Assignee purchases and
assumes from the Assignor [a ___% interest of the Assignor's Commitment] [and]
[a ___% interest in the Assignor's Borrowings] as of the Effective Date, and all
related rights and obligations under the Credit Agreement (the "ASSIGNED
INTEREST"), which, if not equal to 100%, must be a percentage, when computed as
an aggregate dollar amount, that is at least $5,000,000.
2. ASSIGNOR PROVISIONS. The Assignor (a) represents and warrants to the
Assignee that, as of the Effective Date, the Assignor is the legal and
beneficial owner of the Assigned Interest, which is free and clear of any
adverse claim, and (b) makes no representation or warranty to the Assignee and
assumes no responsibility to the Assignee with respect to (i) any statements,
warranties, or representations made in or in connection with any Credit
Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency, or value of any Credit Document, or (iii) the financial condition
of the Borrower or any Company or the performance or observance by any Company
of any of its obligations under any Credit Document.
3. ASSIGNEE PROVISIONS. The Assignee (a) represents and warrants to the
Assignor, the Borrower, the Administrative Agent and the LC Issuing Bank that
the Assignee is legally authorized to enter into this Agreement, (b) confirms
that it has received a copy of the Credit Agreement, copies of the Current
Financials, and such other documents and information as it deems appropriate to
make its own credit analysis and decision to enter into this Agreement, (c)
agrees with Assignor, the Borrower, the Administrative Agent and the LC Issuing
Bank that the
Assignee shall (independently and without reliance upon the Administrative
Agent, the Assignor, or any other Lender and based on such documents and
information as the Assignee deems appropriate at the time) continue to make its
own credit decisions in taking or not taking action under the Credit Documents,
(d) appoints and authorizes the Administrative Agent to take such action as the
Administrative Agent on its behalf and to exercise such powers under the Credit
Documents as are delegated to the Administrative Agent by the terms of the
Credit Documents and all other reasonably-incidental powers, and (e) agrees with
the Assignor, the Borrower and the Administrative Agent that the Assignee shall
perform and comply with all provisions of the Credit Documents applicable to the
Lenders in accordance with their respective terms. If the Assignee is not
organized under the laws of the United States of America or one of its states,
it (i) represents and warrants to Assignor, the Administrative Agent, and the
Borrower that no Taxes are required to be withheld by Assignor, the
Administrative Agent, or the Borrower with respect to any payments to be made to
it in respect of the Obligation, and it has furnished to the Administrative
Agent and the Borrower two duly completed copies of either U.S. Internal Revenue
Service W-8BEN or W-8ECI or any other form acceptable to the Administrative
Agent that entitles the Assignee to exemption from U.S. federal withholding Tax
on all interest payments under the Credit Documents, (ii) covenants to provide
the Administrative Agent and the Borrower a new Form W-8BEN or W-8ECI or other
form acceptable to the Administrative Agent upon the expiration or obsolescence
of any previously delivered form according to law, duly executed and completed
by it, and to comply from time to time with all laws with regard to the
withholding Tax exemption, and (iii) agrees with the Administrative Agent and
the Borrower that, if any of the foregoing is not true or the applicable forms
are not provided, then the Administrative Agent and the Borrower (without
duplication) may deduct and withhold from interest payments under the Credit
Documents any United States federal-income Tax at the full rate applicable under
the IRC.
4. CREDIT AGREEMENT AND COMMITMENTS. From and after the Effective Date
(a) the Assignee shall be a party to the Credit Agreement and (to the extent
provided in this Agreement) shall have the Rights and obligations of a Lender
under the Credit Documents and (b) the Assignor shall (to the extent provided in
this agreement) relinquish its Rights and be released from its obligations under
the Credit Documents. On the Effective Date, after giving effect to this
Agreement, but without giving effect to any other assignments or reductions in
the Commitments by the Borrower that have not yet become effective, the
Assignor's total Commitment (which must be at least $10,000,000), and the
Assignee's total Commitment will be $_______________ and $_________________,
respectively.
5. NOTES. The Assignor and the Assignee request the Borrower to issue
new Notes to the Assignor and the Assignee in the amounts of their respective
Commitments under Paragraph 4 above and otherwise issued in accordance with the
Credit Agreement. Upon delivery of those Notes, the Assignor shall return to the
Borrower all Notes previously delivered to the Assignor under the Credit
Agreement.
6. PAYMENTS AND ADJUSTMENTS. From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned Interest
(including payments of principal, interest, fees and other amounts) to the
Assignee. The Assignor and the Assignee shall make all appropriate adjustments
in payments for periods before the Effective
E-2
Date by the Administrative Agent or with respect to the making of this
assignment directly between themselves.
7. CONDITIONS PRECEDENT. Paragraphs 1 through 6 above are not effective
until (a) counterparts of this agreement are executed and delivered by the
Assignor and the Assignee to (and are executed in the spaces below by) the
Borrower and the Administrative Agent and (b) the Administrative Agent receives
from Assignor a $1,000 processing fee.
8. COMMUNICATIONS. For purposes of Section 14.2 of the Credit
Agreement, the Assignee's address, telephone number and telecopy number (until
changed under that Section) are beside its signature below.
9. AMENDMENTS, ETC. No amendment, waiver or discharge to or under this
Agreement is valid unless in a writing that is signed by the party against whom
it is sought to be enforced and is otherwise in conformity with the requirements
of the Credit Agreement.
10. ENTIRETY. THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE
ASSIGNOR AND THE ASSIGNEE ABOUT ITS SUBJECT MATTER AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
ASSIGNOR AND THE ASSIGNEE. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
ASSIGNOR AND THE ASSIGNEE.
11. PARTIES. This agreement binds and benefits the Assignor, the
Assignee and their respective successors and assigns that are permitted under
the Credit Agreement.
EXECUTED as of the date first stated in this Agreement.
[ASSIGNOR] [ASSIGNEE]
By By
--------------------------- -------------------------
Name: Name:
Title: Title:
Address
----------------------
-----------------------------
-----------------------------
Phone
-----------------------
Fax
-------------------------
E-3
As of the Effective Date, the Borrower, the Administrative Agent and
the LC Issuing Bank consent to this Agreement and the transactions contemplated
in it.
TEPPCO PARTNERS, L.P., as Borrower SUNTRUST BANK, as Administrative
Agent
By TEXAS EASTERN PRODUCTS
PIPELINE COMPANY, LLC,
as General Partner By
------------------------------
Name:
Title:
By
----------------------
Name:
Title: By
------------------------------
Name:
Title:
SUNTRUST BANK, as LC Issuing Bank
By
------------------------------
Name:
Title:
E-4
