EXHIBIT 10.43
CREDIT AND REIMBURSEMENT AGREEMENT
THIS CREDIT AND REIMBURSEMENT AGREEMENT (the "Agreement") is made and
dated as of the 1st day of November, 1999, by and among SANWA BANK CALIFORNIA
("Sanwa"), as agent (the "Agent") for the Lenders referenced below, KEYBANK
NATIONAL ASSOCIATION, as Bond L/C Issuing Bank for the Bond Letter of Credit
referred to below (in such capacity, the "Bond L/C Issuing Bank") and as co-
agent (the "Co-Agent"), Sanwa Bank California, as issuing bank for the Standard
Letters of Credit referred to below (the "Standard L/C Issuing Bank"), the
Lenders from time to time party hereto, and ATG INC., a California corporation
(the "Company").
RECITALS
(A) The Company has asked the Agent, the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank and the Lenders to extend credit to it (i) for Bond
working capital, (ii) for general corporate purposes, (iii) to refinance certain
term debt, and (iv) to credit enhance those certain Solid Waste Revenue Bonds,
1999 (ATG Inc. Project) (the "Bonds") in the aggregate principal amount of
$26,500,000 to be issued by the Port of Xxxxxx Economic Development Corporation
(the "Issuer") pursuant to a Trust Indenture dated as of November 1, 1999 (the
"Indenture") between the Issuer and the trustee party thereto (the "Trustee"),
the proceeds of which are to be lent to the Company pursuant to a Loan Agreement
dated as of November 1, 1999 (the "Loan Agreement") between the Issuer and the
Company for the purpose of financing the costs of designing, acquiring,
construction, renovation, expansion and equipping of the ATG Inc. Richland
Environmental Technology Complex, for non-thermal and thermal treatment of low
level mixed solid waste, including functionally related and subordinate
facilities for the temporary storage of such waste prior to its treatment and
after its treatment pending transportation to offsite disposal facilities
located in Richland, Washington (the "Project").
(B) Subject to the terms and conditions contained in this Agreement,
(i) the Lenders have agreed to extend such credit to the Company, (ii) the
Standard L/C Issuing Bank has agreed to issue Standard Letters of Credit as a
sub-facility of such credit, (iii) the Bond L/C Issuing Bank has agreed to issue
its irrevocable direct pay Bond Letter of Credit to the Trustee substantially in
the form of that attached hereto as Exhibit A (as amended, extended and replaced
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from time to time, the "Bond Letter of Credit"), (iv) the Lenders have agreed
to purchase an undivided participation interest in such Standard Letters of
Credit, the Standard L/C Obligations, the Bond Letter of Credit and the Bond L/C
Obligations (those terms and capitalized terms not otherwise defined herein are
defined in Paragraph 16 below), and (v) Sanwa has agreed to act as Agent for the
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Lenders with respect thereto.
NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Bond Letter of Credit Facility.
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1(a) Bond Letter of Credit.
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(1) On the terms and subject to the conditions set forth
herein, the Bond L/C Issuing Bank shall issue the Bond Letter of Credit for
the account of the Company in support of the Bonds and the Company's
obligations under the Loan Agreement. The Bond Letter of Credit shall: (1)
be in a maximum available amount not to exceed $26,500,000 plus forty seven
(47) days interest thereon calculated at twelve percent (12%) per annum on
the basis of a year of 365 days, (2) have a term of five (5) years, and (3)
otherwise be in form and substance satisfactory to the Agent, the Bond L/C
Issuing Bank and all of the Lenders.
(2) Not more than 270 nor less than 240 days prior to any
termination date of the Bond Letter of Credit, the Company may, by written
request delivered to the Agent and to the Bond L/C Issuing Bank, request
that the termination date thereof be extended by five (5) years. If the
Bond L/C Issuing Bank, the Agent, and each of the Lenders agree, in their
respective sole discretion, that the termination date may be so extended,
the Agent shall give written notice to the Company not less than 180 days
prior to the then scheduled termination date. Any failure to give such
notice shall be deemed notice that the termination date will not be so
extended. The Agent and the Bond L/C Issuing Bank agree to direct the
Trustee as beneficiary under the Bond Letter of Credit to deliver to the
Agent a copy of each Bond L/C Drawing, and the Bond L/C Issuing Bank agrees
promptly to notify the Agent promptly upon payment of each Bond L/C Drawing
thereunder, reimbursement for each Bond L/C Drawing, and any failure to be
reimbursed in accordance with the provisions of Paragraph 1(b) below.
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1(b) Repayment of Bond L/C Drawings under Bond Letter of Credit. Any
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Bond L/C Drawing under the Bond Letter of Credit shall be payable in full on the
date of such Bond L/C Drawing. Such payments shall be made by the Company or:
(1) In the case of Bond L/C Drawings made solely to pay
scheduled interest on the Bonds, by causing payments to be made from the
Interest Reserve Account. The Company agrees to maintain on deposit in the
Interest Reserve Account an amount sufficient to make each such payment.
(2) In the case of Bond L/C Drawings made to purchase Bonds, so
long as no Potential Default or Event of Default shall have occurred and be
continuing, by conversion to an Interim Bond Loan in accordance with
Paragraph 2(c) below.
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(3) In the case of all other payments, by purchases of
participations by the Lenders in accordance with Paragraph 1(c) below
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The Bond L/C Issuing Bank shall notify the Agent of each Bond L/C Drawing (other
than a Bond L/C Drawing made solely to pay regularly scheduled interest payments
on the Bonds). The Bond L/C Issuing Bank agrees to honor reimbursement of Bond
L/C Drawings by payment from sources other than assets of the Company.
1(c) Purchase of Participation Interests; Risk Sharing. Upon the
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issuance of the Bond Letter of Credit, the Lenders shall be automatically deemed
to have
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purchased an undivided participation interest therein and in all pro rata in
accordance with their respective Percentage Shares. The Lenders hereby
absolutely and unconditionally (including, without limitation, following the
occurrence of an Event of Default) agree to purchase and sell among themselves
the dollar amount of any Bond L/C Drawing and any other Bond L/C Obligation
which is not paid on the date when due by the Company, so that each unrepaid
Bond L/C Drawing and any other Bond L/C Obligation shall be held and
participated in by the Lenders in accordance with their respective Percentage
Shares in accordance with the terms and conditions of this Agreement.
1(d) Absolute Bond L/C Obligation to Repay. The Company's
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obligation to repay Bond L/C Drawings and other Bond L/C Obligations shall be
absolute, irrevocable and unconditional under any and all circumstances
whatsoever and irrespective of any set-off, counterclaim or defense to payment
which the Company may have or have had, against the Agent, the Bond L/C Issuing
Bank, any Lender or any other Person, including, without limitation, any set-
off, counterclaim or defense based upon or arising out of:
(1) Any lack of validity or enforceability of this Agreement or
any of the other Bond Loan Documents;
(2) Any amendment or waiver of or any consent to departure from
the terms of the Bond Letter of Credit;
(3) The existence of any claim, setoff, defense or other right
which the Company or any other Person may have at any time against the
Trustee or any other beneficiary of the Bond Letter of Credit or any
transferee of the Bond Letter of Credit (or any Person for whom the
Trustee, any such other beneficiary or any such transferee may be acting);
(4) Any allegation that any demand, statement or any other
document presented under the Bond Letter of Credit is forged, fraudulent,
invalid or insufficient in any respect, or that any statement therein is
untrue or inaccurate in any respect whatsoever or that variations in
punctuation, capitalization, spelling or format were contained in the
drafts or any statements presented in connection with any Bond L/C Drawing;
(5) Any payment by the Bond L/C Issuing Bank under the Bond
Letter of Credit against presentation of a draft or certificate that does
not strictly comply with the terms of the Bond Letter of Credit, or any
payment made by the Bond L/C Issuing Bank under the Bond Letter of Credit
to any Person purporting to be a trustee in bankruptcy, debtor-in-
possession, assignee for the benefit of creditors, liquidator, receiver or
other representative of or successor to any beneficiary or any transferee
of the Bond Letter of Credit, including any arising in connection with any
insolvency proceeding;
(6) Any exchange or release of any guaranty supporting the Bond
L/C Obligations or any exchange, release or non-perfection of any
collateral securing the Bond L/C Obligations; or
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(7) Any other circumstance or happening whatsoever, whether or
not similar to any of the foregoing, including any other circumstance that
might otherwise constitute a defense available to, or a discharge of the
Company.
Nothing contained herein shall constitute a waiver of any rights of the Company
against the Agent, the Bond L/C Issuing Bank or any Lender arising out of the
gross negligence or willful misconduct of such Person in connection with the
Bond Letter of Credit.
2. Loan Facility.
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2(a) Revolving Credit Limit. On the terms and subject to the
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conditions set forth herein, the Lenders severally agree that they shall from
time to time to but not including the Revolving Loan Maturity Date, make
revolving loans (the "Revolving Loans" or a "Revolving Loan"), pro rata in
accordance with their respective Percentage Shares, in aggregate amounts not to
exceed at any one time outstanding (including Revolving Loans constituting the
conversion of Standard L/C Drawings under Standard Letters of Credit funded
pursuant to Paragraph 3(b) below): (1) the Revolving Credit Limit as in effect
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from time to time, less (2) the aggregate dollar amount of Standard Letters of
Credit Outstanding on such date.
2(b) Principal Repayment of Revolving Loans. The Company shall
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pay the principal amount of each Revolving Loan on the Revolving Loan Maturity
Date. Principal amounts prepaid hereunder may be reborrowed on the terms and
subject to the conditions set forth in Paragraph 9(b) below, it being expressly
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acknowledged and agreed that the credit facility provided under this Paragraph 2
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is a revolving facility.
2(c) Interim Bond Loans. Bond L/C Drawings made on the Bond Let
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ter of Credit to purchase Bonds pursuant to the Indenture for which the Bond L/C
Issuing Bank is not reimbursed on the same day shall constitute loans ("Interim
Bond Loans") made by the Bond L/C Issuing Bank. Upon a Bond L/C Drawing
constituting an Interim Bond Loan, each of the Lenders shall be automatically
deemed to have purchased an undivided participation interest therein and in all
rights and obligations relating thereto pro rata in accordance with their
respective Percentage Shares. The Lenders hereby absolutely and unconditionally
(including, without limitation, following the occurrence of an Event of Default)
agree to purchase and sell among themselves the dollar amount of any Interim
Bond Loan (all as provided in Paragraph 4(b)(5) below), so that each Interim
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Bond Loan shall be held and participated in by the Lenders in accordance with
their respective Percentage Shares.
2(d) Principal Repayment of Interim Bond Loans. The Company
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shall pay the principal amount of each Interim Bond Loan on the earlier of (i)
receipt by the Lenders of the proceeds from remarketing of the Bonds purchased
with the Bond L/C Drawing giving rise to such Interim Bond Loan, (ii) ninety
(90) days after the date that such Bonds are purchased by a Bond L/C Drawing, or
(iii) the Revolving Loan Maturity Date.
3. Standard Letter of Credit Facility
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3(a) Issuance of Standard Letters of Credit. On the terms and
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subject to the conditions set forth herein, the Standard L/C Issuing Bank shall
from time to time from and after the Effective Date, issue standby and
commercial/documentary letters of credit (each a
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"Standard Letter of Credit" and, collectively, the "Standard Letters of Credit")
for the account of the Company in an aggregate amount available for drawing
thereunder not to exceed the lesser of (1) the Revolving Credit Limit, minus the
aggregate dollar amount of Revolving Loans outstanding minus the aggregate
amount of Standard Letters of Credit Outstanding, and (2) $5,000,000.00. Each
Standard Letter of Credit shall be requested by the Company at least three
Business Days prior to the proposed issuance date by delivery to the Standard
L/C Issuing Bank of a duly executed Standard Letter of Credit Application, with
a copy to the Agent, accompanied by all other Standard Loan Documents which the
Standard L/C Issuing Bank may require as a condition to the issuance thereof. No
Standard Letter of Credit shall have a stated expiration date (or provide for
the extension of such stated expiration date or the issuance of any replacement
therefor) later than the earlier of: (i) the 364th day following the issuance
date thereof, and (ii) the Revolving Loan Maturity Date.
3(b) Repayment of Standard L/C Drawings under Standard Letters
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of Credit. Any Standard L/C Drawing shall be payable in full by the Company
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on the date of such Standard L/C Drawing; provided, however, that if all of the
conditions to the making of a Revolving Loan (except the delivery of a Loan
Request) are satisfied on the date of such Standard L/C Drawing, unless the
Company shall otherwise have reimbursed the Standard L/C Issuing Bank on or
prior to the time of such drawing, the Company shall be deemed to have requested
that such Standard L/C Drawing be repaid from Revolving Loans made in accordance
with Paragraph 4(b)(2) below.
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3(c) Purchase of Participation Interests; Risk Sharing. Upon
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the issuance of each Standard Letter of Credit, the Lenders shall be
automatically deemed to have purchased an undivided participation interest
therein and in all rights and obligations relating thereto pro rata in
accordance with their respective Percentage Shares. The Lenders hereby
absolutely and unconditionally (including, without limitation, following the
occurrence of an Event of Default) agree to purchase and sell among themselves
the dollar amount of any Standard L/C Drawing which is not paid on the date when
due by the Company (from the proceeds of Revolving Loans or otherwise), so that
each unrepaid Standard L/C Drawing on a Standard Letter of Credit shall be held
and participated in by the Lenders in accordance with their respective
Percentage Shares.
3(d) Absolute Standard L/C Obligation to Repay. The Company's
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obligation to repay Standard L/C Drawings and other Standard L/C Obligations
shall be absolute, irrevocable and unconditional under any and all circumstances
whatsoever and irrespective of any set-off, counterclaim or defense to payment
which the Company may have or have had, against the Agent, the Standard L/C
Issuing Bank, any Lender or any other Person, including, without limitation, any
set-off, counterclaim or defense based upon or arising out of:
(1) Any lack of validity or enforceability of this
Agreement or any of the other Standard Loan Documents;
(2) Any amendment or waiver of or any consent to departure
from the terms of the respective Standard Letter of Credit;
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(3) The existence of any claim, setoff, defense or other
right which the Company or any other Person may have at any time against
any beneficiary of the Standard Letters of Credit or any transferee of the
Standard Letters of Credit (or any Person for whom any such beneficiary or
any such transferee may be acting);
(4) Any allegation that any demand, statement or any other
document presented under the Standard Letters of Credit is forged,
fraudulent, invalid or insufficient in any respect, or that any statement
therein is untrue or inaccurate in any respect whatsoever or that
variations in punctuation, capitalization, spelling or format were
contained in the drafts or any statements presented in connection with any
Standard L/C Drawing;
(5) Any payment by the Standard L/C Issuing Bank under any
Standard Letter of Credit against presentation of a draft or certificate
that does not strictly comply with the terms of such Standard Letter of
Credit, or any payment made by the Standard L/C Issuing Bank under any
Standard Letter of Credit to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit of creditors,
liquidator, receiver or other representative of or successor to any
beneficiary or any transferee of a Standard Letter of Credit, including any
arising in connection with any insolvency proceeding;
(6) Any exchange or release of any guaranty supporting the
Standard L/C Obligations or any exchange, release or non-perfection of any
collateral securing the Standard L/C Obligations; or
(7) Any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing, including any other
circumstance that might otherwise constitute a defense available to, or a
discharge of the Company.
Nothing contained herein shall constitute a waiver of any rights of the Company
against the Agent, the Standard L/C Issuing Bank or any Lender arising out of
the gross negligence or willful misconduct of such Person in connection with any
Standard Letter of Credit.
4. Interest on Loans, Conversion of Loans, Illegality of Loans,
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Requirements of Law pertaining to Loans, Funding, Prepayments and Prepayment
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Penalties.
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4(a) Interest Billing and Payment Requirements. Interest
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accruing on Base Rate Loans shall be payable monthly, in arrears, for each month
on the last Business Day of each such month in the amount set forth in an
interest billing for such Loans delivered by the Agent to the Company (which
delivery may be telephonic and later confirmed in writing). Interest accruing on
LIBOR Loans shall be payable, in arrears, on the last day of the applicable
Interest Period therefor, or in the case of LIBOR Loans with Interest Periods
ending later than three months from the date funded, at the end of each three
month period from the date funded and at the end of the applicable Interest
Period therefor.
4(b) Election of Type of Loans; Conversion Options; Funding of
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Loans.
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(1) Base Rate and LIBOR Options. All Loans shall either be Base
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Rate Loans bearing interest calculated at the Base Rate plus the Base Rate
Spread or LIBOR Loans bearing interest, during any Interest Period, at
LIBOR for such Interest Period plus the LIBOR Spread; provided, however,
that (i) if the Company shall fail to elect to have a Loan funded as a
LIBOR Loan, such Loan shall be a Base Rate Loan; (ii) no Loan may be funded
as a LIBOR Loan so long as a Potential Default or Event of Default has
occurred and is continuing; and (iii) at the election of the Agent, upon
the occurrence of a Potential Default or an Event of Default, all LIBOR
Loans then outstanding shall immediately be converted to Base Rate Loans.
(2) Funding of Loans. Subject to the other terms and conditions
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of this Agreement, the Company may elect from time to time to have Loans
funded by giving the Agent irrevocable notice of such election no later
than: (i) in the case of a Base Rate Loan, 10:00 a.m. (Los Angeles time) on
the requested funding date, and (ii) in the case of a LIBOR Loan, 10:00
a.m. (Los Angeles time) on the third Eurodollar Business Day preceding the
proposed funding date. The principal amount of each LIBOR Loan shall be in
the minimum amount of $1,000,000.00 and whole multiples of $100,000.00 in
excess thereof. The Company may elect from time to time to convert Loans
outstanding: (i) as LIBOR Loans to Base Rate Loans by giving the Agent
irrevocable notice of such election no later than 10:00 a.m. (Los Angeles
time) on the last day of the Interest Period for such LIBOR Loan, and (ii)
as Base Rate Loans to LIBOR Loans by giving the Agent irrevocable notice of
such election no later than 10:00 a.m. (Los Angeles time) on the third
Eurodollar Business Day preceding the proposed conversion date; provided,
that, no more than six (6) Interest Periods may be in effect at any one
time. Any conversion of LIBOR Loans may only be made on the last day of the
applicable Interest Period. No Base Rate Loan may be converted into a LIBOR
Loan if an Event of Default or Potential Default has occurred and is
continuing at the requested conversion date. All or any part of outstanding
Loans may be converted as provided herein, provided that partial
conversions shall be in an amount not less than the amount required
pursuant to the second sentence of this subparagraph (2).
(3) Continuation of LIBOR Loans. The Company may elect from
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time to time to have any LIBOR Loan continued as such upon the expiration
of the Interest Period applicable thereto by giving the Agent irrevocable
notice of such election no later than 10:00 a.m. (Los Angeles time) on the
third Eurodollar Business Day preceding the last day of such Interest
Period; provided, however, that no LIBOR Loan may be continued as such when
any Event of Default or Potential Default has occurred and is continuing,
but shall be automatically converted to a Base Rate Loan on the last day of
the Interest Period applicable thereto. The Agent shall notify the Company
promptly that such automatic conversion will occur. If the Company shall
fail to give notice of its election to continue a LIBOR Loan as such as
provided above, the Company shall be deemed to have elected to convert the
affected LIBOR Loan to a Base Rate Loan on the last day of the applicable
Interest Period.
(4) Revolving Loan Requests.
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(i) Each request for the funding, continuation or
conversion of a Revolving Loan shall be evidenced by the timely
delivery by the Company to the Agent of a duly executed Loan Request
(which delivery may be by facsimile transmission).
(ii) Upon receipt of a Loan Request for the funding of a new
Revolving Loan or upon the date of any Standard L/C Drawing with
respect to a Standard Letter of Credit which, in accordance with this
Agreement, is to be reimbursed from the proceeds of a Revolving Loan,
the Agent shall notify each Lender of such Lender's Percentage Share
thereof no later than 11:00 a.m. (Los Angeles time) on the date such
Loan Request is received by the Agent or such Standard L/C Drawing
made (said notice by the Agent to the Lenders to be given
telephonically and confirmed by facsimile transmission). Each Lender
shall make its Percentage Share of the proposed Revolving Loan
available to the Agent, in same-day funds, on the funding date at the
Contact Office of the Agent, at such account as the Agent shall
designate no later than 12:00 noon (Los Angeles time). The failure of
any Lender to advance its Percentage Share of a proposed Revolving
Loan shall not relieve any other Lender of its obligation hereunder to
advance its Percentage Share thereof, but no Lender shall be
responsible for the failure of any other Lender to make any such
advance. Nothing contained herein shall in any manner or to any extent
be deemed to constitute a waiver by the Company of any rights, powers
and remedies which it may have against any Lender for failure of such
Lender to fund its Percentage Share of Revolving Loans as required by
the Loan Documents.
(5) Purchases by Lenders of Interests in Interim Bond Loans.
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(i) Each Lender shall pay to the Bond L/C Issuing Bank a
purchase price for each Interim Bond Loan to be purchased by such
Lender in accordance with Paragraph 2(c) equal to such Lender's
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Percentage Share of the principal amount of such Interim Bond Loan.
Such payment shall be made on the dates described and in accordance
with the other provisions of this Paragraph 4(b)(5).
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(ii) If the Agent shall receive notice from the Bond L/C
Issuing Bank or from the Company no later than 10:00 a.m. (Los Angeles
time) on a Business Day that Interim Bond Loans shall be made on such
day, then the Agent shall notify each Lender of such Lender's
Percentage Share thereof no later than 11:00 a.m. (Los Angeles time)
on such day (said notice by the Agent to the Lenders to be given
telephonically and confirmed by facsimile transmission), and each
Lender shall make its Percentage Share of the Interim Bond Loans
available to the Bond L/C Issuing Bank, in same-day funds, on such
Business Day, at such account as the Bond L/C Issuing Bank shall
designate no later than 12:00 noon (Los Angeles time). If the Agent
shall receive notice from the Bond L/C Issuing Bank or from the
Company after 11:00 a.m. (Los Angeles time) on a Business Day that
Interim Bond Loans shall be made on such day or as soon as possible
thereafter, then the Agent promptly shall notify each Lender of such
Lender's
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Percentage Share thereof, and each Lender shall make its Percentage
Share of the proposed Interim Bond Loan available to the Bond L/C
Issuing, Bank in same-day funds, at such account as the Bond L/C
Issuing Bank shall designate no later than 12:00 noon (Los Angeles
time) on the next succeeding Business Day. Promptly upon receipt of
such funds, the Bond L/C Issuing Bank shall notify the Agent of the
amount received from each Lender.
(iii) The failure of any Lender to advance its Percentage
Share of an Interim Bond Loan shall not relieve any other Lender of
its obligation hereunder to advance its Percentage Share thereof, but
no Lender shall be responsible for the failure of any other Lender to
make any such advance. Nothing contained herein shall in any manner or
to any extent be deemed to constitute a waiver by the Company of any
rights, powers and remedies which it may have against any Lender for
failure of such Lender to fund its Percentage Share of Interim Bond
Loans as required by the Loan Documents.
4(c) Illegality. Notwithstanding any other provisions herein, if
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any law, regulation, treaty or directive or any change therein or in the
interpretation or application thereof, shall make it unlawful for any Lender to
make or maintain LIBOR Loans as contemplated by this Agreement: (1) the
commitment of such Lender hereunder to make or to continue LIBOR Loans or to
convert Base Rate Loans to LIBOR Loans shall forthwith be canceled and (2) such
Lender's Percentage Share of Revolving Loans then outstanding as LIBOR Loans, if
any, shall be converted automatically to Base Rate Loans at the end of their
respective Interest Periods or within such earlier period as may be required by
law. In the event of a conversion of any such Loan prior to the end of its
applicable Interest Period the Company hereby agrees promptly to pay any Lender
affected thereby, upon demand, the amounts required pursuant to Paragraph 4(d)
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below, it being agreed and understood that such conversion shall constitute a
prepayment for all purposes hereof. The provisions hereof shall survive the
termination of this Agreement and payment of the outstanding Loans and all other
amounts payable hereunder.
4(d) Requirements of Law; Increased Costs. In the event that any
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applicable law, order, regulation, treaty or directive issued by any central
bank or other governmental authority, agency or instrumentality or in the
governmental or judicial interpretation or application thereof, or compliance by
any Lender with any request or directive (whether or not having the force of
law) issued by any central bank or other governmental authority, agency or
instrumentality:
(1) Does or shall subject any Lender to any tax of any
kind whatsoever with respect to this Agreement or any Loans made hereunder,
or change the basis of taxation of payments to such Lender of principal,
fee, interest or any other amount payable hereunder (except for change in
the rate of tax on the overall net income of such Lender);
(2) Does or shall impose, modify or hold applicable any
reserve, capital requirement, special deposit, compulsory [revolving] loan
or similar requirements against assets held by, or deposits or other
liabilities in or for the account of, advances or revolving loans by, or
other credit extended by, or any other acquisition
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of funds by, any office of such Lender which are not otherwise included in
the determination of interest payable on the Obligations on account of
Loans; or
(3) Does or shall impose on such Lender any other
condition;
and the result of any of the foregoing is to increase the cost to such Lender of
making, renewing or maintaining any Loan or to reduce any amount receivable in
respect thereof or the rate of return on the capital of such Lender or any
corporation controlling such Lender, then, in any such case, the Company shall
promptly pay to the Agent for the account of such Lender, upon receipt of the
notice described in the next sentence, any additional amounts necessary to
compensate such Lender for such additional cost or reduced amounts receivable or
rate of return as determined by such Lender with respect to this Agreement or
Loans made hereunder. If a Lender becomes entitled to claim any additional
amounts pursuant to this Paragraph 4(d), it shall promptly notify the Agent
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(with a copy to the Company) of the event by reason of which it has become so
entitled. A certificate as to any additional amounts payable pursuant to the
foregoing sentence containing the calculation thereof in reasonable detail
submitted to the Company shall be conclusive in the absence of manifest error.
The provisions hereof shall survive the termination of this Agreement and
payment of the outstanding Loans and all other amounts payable hereunder.
4(e) Funding. Each Lender shall be entitled to fund all or any
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portion of its Loans in any manner it may determine in its sole discretion,
including, without limitation, in the Grand Cayman inter-bank market, the London
inter-bank market and within the United States.
4(f) Prepayments
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(1) The Company may prepay Loans (other than LIBOR Loans)
hereunder in whole or in part at any time, it being acknowledged and agreed
that LIBOR Loans may not be voluntarily prepaid prior to the last day of
their applicable Interest Periods.
(2) The Company shall pay in connection with any
prepayment hereunder all interest accrued but unpaid on Loans to which such
prepayment is applied, and all prepayment premiums, if any, on LIBOR Loans
to which such prepayment is applied, concurrently with payment to the Agent
of any principal amounts.
4(g) Prepayment Premium. In addition to all other payment
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obligations hereunder, in the event: (1) any Loan which is outstanding as a
LIBOR Loan is prepaid prior to the last day of the applicable Interest Period or
(2) the Company shall fail to continue or to make a conversion to a LIBOR Loan
after the Company has given notice thereof as provided in Paragraph 4(b) above,
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then the Company shall immediately pay to the Lenders holding the Loans prepaid
or not made, continued or converted, through the Agent, an additional premium
sum compensating each Lender for losses, costs and expenses incurred by such
Lender in connection with such prepayment or such failure to borrow, continue or
convert. The Company acknowledges that such losses, costs and expenses are
difficult to quantify and that, in the case of the prepayment of or failure to
continue or convert to a LIBOR Loan, the following formula
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represent a fair and reasonable estimate of such losses, costs and expenses:
Days remaining in
Interest Period if
LIBOR Rate for prepaid, or in the
Interest Period case of failure to convert
when prepaid or, or to continue the proposed
in the case Interest Period
of failure to ----------------------------
Being Prepaid or convert or to 360
Not Being Converted continue, as quoted
or Continued by the Agent on
Eurodollar Business
Day after receipt of
notice thereof by the
Agent plus LIBOR Spread
For purposes of calculating the current LIBOR for the days remaining in the
Interest Period for both the increment being prepaid or not converted or
continued said current LIBOR shall be an interest rate interpolated between
LIBOR quoted for standard calender periods for subsequent months maturities in
accordance with normal conventions. A certificate as to any additional amounts
payable pursuant to the foregoing sentence containing the calculation thereof
in reasonable detail submitted by a Lender to the Company shall be conclusive
in the absence of manifest error. The provisions hereof shall survive the
termination of this Agreement and the payment of all other Obligations.
5. Requirements of Law; Increased Costs pertaining to the Bond Letter
------------------------------------------------------------------
of Credit and Standard Letters of Credit. In the event that any applicable
----------------------------------------
law, order, regulation, treaty or directive issued by any central bank or other
Governmental Authority, agency or instrumentality or in the governmental or
judicial interpretation or application thereof, or compliance by the Bond L/C
Issuing Bank, the Standard L/C Issuing Bank or any Lender with any request or
directive (whether or not having the force of law) issued by any central bank or
other Governmental Authority, agency or instrumentality:
(1) Does or shall subject the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank or any Lender to any tax of any kind whatsoever
with respect to this Agreement, the Bond Letter of Credit, Bond Loan
Documents, Standard Letters of Credit, Standard Loan Documents or the
transactions contemplated hereby or thereby, or change the basis of
taxation of payments to the Bond L/C Issuing Bank, the Standard L/C Issuing
Bank or such Lender of principal, fee, interest or any other amount payable
hereunder (except for change in the rate of tax on the overall net income
of the Bond L/C Issuing Bank, the Standard L/C Issuing Bank or such
Lender);
(2) Does or shall impose, modify or hold applicable any
reserve, capital requirement, special deposit, compulsory or similar
requirements against assets held by, or deposits or other liabilities in or
for the account of, advances or revolving loans by, or other credit
extended by, or any other acquisition of funds by, any
11
office of the Bond L/C Issuing Bank, the Standard L/C Issuing Bank or such
Lender which are not otherwise included in the determination of interest
payable on the Bond L/C Obligations or the Standard L/C Obligations; or
(3) Does or shall impose on the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank or such Lender any other condition;
and the result of any of the foregoing is to increase the cost to the Bond L/C
Issuing Bank, the Standard L/C Issuing Bank or such Lender of issuing, renewing,
maintaining, supporting or participating in the Bond Letter of Credit, any
Standard Letter of Credit or to reduce any amount receivable in respect thereof
or the rate of return on the capital of the Bond L/C Issuing Bank, the Standard
L/C Issuing Bank or such Lender or any corporation controlling the Bond L/C
Issuing Bank, the Standard L/C Issuing Bank or such Lender, then, in any such
case, the Company shall promptly pay to the Bond L/C Issuing Bank, the Standard
L/C Issuing Bank or such Lender, upon its written demand made through the Agent,
any additional amounts necessary to compensate the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank or such Lender for such additional cost or reduced
amounts receivable or rate of return as determined by the Bond L/C Issuing Bank,
the Standard L/C Issuing Bank or such Lender. If the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank or a Lender becomes entitled to claim any additional
amounts pursuant to this Paragraph 5, it shall promptly notify the Company
-----------
through the Agent of the event by reason of which it has become so entitled. A
certificate as to any additional amounts payable pursuant to the foregoing
sentence containing the calculation thereof in reasonable detail submitted by
the Bond L/C Issuing Bank, the Standard L/C Issuing Bank or the Lender to the
Company through the Agent shall be conclusive in the absence of manifest error.
The provisions hereof shall survive the termination of this Agreement and
payment of the unrepaid Bond L/C Drawings, Standard L/C Obligations and all
other Bond L/C Obligations and Standard L/C Obligations.
6. Evidence of Obligations; Nature and Place of Payment; Default
-------------------------------------------------------------
Interest; Computations, Allocations, Telephonic Notice.
------------------------------------------------------
6(a) Open Book Account. The obligation of the Company to repay
-----------------
the Loans, the Bond L/C Drawings and Standard L/C Drawings shall be evidenced by
a notation on the books and records of the Agent and each Lender. The Agent
shall deliver a monthly statement of account to the Company and each Lender
setting forth the unpaid balance of Loans outstanding hereunder. Such statement
shall (absent clerical error) be deemed conclusively correct and accepted by the
Company and the Lenders unless any of such Persons notifies the Agent to the
contrary within ten (10) Business Days following delivery of such statement.
Upon any advance, conversion or prepayment with respect to any Loan, each Lender
is hereby authorized to record the date and amount of each such advance and
conversion made by such Lender, or the date and amount of each such payment or
prepayment of principal of Loan made by such Company, the applicable Interest
Period and interest rate with respect thereto, on its books (or by any analogous
method any Lender may elect consistent with its customary practices) and any
such recordation shall constitute prima facie evidence of the accuracy of the
----- -----
information so recorded absent manifest error. The failure of the Agent or any
Lender to make any such notation shall not affect in any manner or to any extent
the Company's Obligations hereunder.
12
6(b) Nature and Place of Payments. All payments made on account
----------------------------
of the Obligations shall be made by the Company to the Agent for the account of
the Bond L/C Issuing Bank, the Standard L/C Issuing Bank, the Lenders or the
Agent, as applicable, without setoff or counterclaim, in lawful money of the
United States of America in immediately available same day funds, free and clear
of and without deduction for any taxes, fees or other charges of any nature
whatsoever imposed by any taxing authority and must be received by the Agent by
10:00 a.m. (Los Angeles time) on the day of payment, it being expressly agreed
and understood that if a payment is received after 10:00 a.m. (Los Angeles time)
by the Agent, such payment will be considered to have been made by the Company
on the next succeeding Business Day and interest thereon shall be payable by the
Company at the then applicable rate during such extension. All payments on
account of the Obligations shall be made to the Agent through its Contact
Office. If any payment required to be made by the Company hereunder becomes due
and payable on a day other than a Business Day, the due date thereof shall be
extended to the next succeeding Business Day and interest thereon shall be
payable at the then applicable rate during such extension. The Agent is hereby
irrevocably authorized by the Company, upon prior notice to the Company (which
notice may be telephonic), to debit the general operating account of the
Company, if any, maintained with the Agent for the full amount of monthly and
periodic interest xxxxxxxx, fees and other Obligations payable hereunder;
provided, however, that the failure of the Agent to so debit such account shall
not in any manner or to any extent affect the obligation of the Company to pay
such Obligations as provided herein and in the other Loan Documents.
6(c) Default Interest. Notwithstanding anything to the contrary
----------------
contained herein, on any date that there shall have occurred and be continuing
an Event of Default, any and all Obligations outstanding shall bear interest at
a per annum rate equal to two percent (2%) in excess of the highest rate
applicable to Loans under this Agreement.
6(d) Computations. All computations of interest and fees payable
------------
hereunder shall be based upon a year of three hundred and sixty (360) days for
the actual number of days elapsed.
6(e) Allocation of Payments Received. Prior to the occurrence of
-------------------------------
an Event of Default and acceleration of the Obligations, all amounts received by
the Agent on account of Obligations under this Agreement shall be applied as the
Company may direct in writing, subject to the requirement that disbursements to
the Lenders shall be in accordance with their respective Percentage Shares.
Amounts shall be disbursed by the Agent to the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank, and the Lenders by wire transfer on the date of
receipt if received by the Agent before 10:00 a.m. (Los Angeles time) or if
received later, by 12:00 noon (Los Angeles time) on the next succeeding Business
Day, without further interest payable by the Agent. Following the occurrence of
an Event of Default and acceleration of the Obligations, all amounts received by
the Agent on account of the Obligations shall be disbursed by the Agent as
follows:
(1) First, to the payment of reasonable expenses incurred
by the Agent in the performance of its duties and enforcement of its rights
under the Loan Documents, including, without limitation, all costs and
expenses of collection, attorneys' fees, court costs and foreclosure
expenses;
13
(2) Then, to the Lenders, pro rata in accordance with
their respective Percentage Shares, until all outstanding Loans and
unrepaid Bond L/C Drawings and Standard L/C Drawings and interest accrued
thereon and all other Obligations have been paid in full, said amounts to
be allocated first to interest and then, but only after all accrued
interest has been paid in full, to principal of Loans and unrepaid Bond L/C
Drawings and Standard L/C Drawings;
(3) Then, but only if there remain Outstanding the Bond
Letter of Credit or any Standard Letters of Credit, to the Agent to hold as
cash collateral for the obligation of the Company to reimburse any future
Bond L/C Drawings or Standard L/C Drawings as the same may occur, until the
Bond Letter of Credit and the Standard Letters of Credit are no longer
Outstanding; and
(4) Then, to such Persons as may be legally entitled
thereto.
6(f) Telephonic/Facsimile Communications. Any agreement of
-----------------------------------
the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and the
Lenders herein to receive certain notices by telephone or facsimile is solely
for the convenience and at the request of the Company. The Agent, the Bond L/C
Issuing Bank, the Standard L/C Issuing Bank and the Lenders shall be entitled to
rely on the authority of any Person purporting to be an authorized Person, and
the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and the
Lenders shall not have any liability to the Company or other Person on account
of any action taken or not taken by the Agent, the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank or the Lenders in reliance upon such telephonic or
facsimile notice. The obligation of the Company to pay the Obligations shall not
be affected in any way or to any extent by any failure by the Agent, the Bond
L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders to receive
written confirmation of any telephonic or facsimile notice or the receipt by the
Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders
of a confirmation which is at variance with the terms understood by the Agent,
the Bond L/C Issuing Bank and the Standard L/C Issuing Bank and the Lenders to
be contained in the telephonic or facsimile notice. The Agent, the Bond L/C
Issuing Bank, the Standard L/C Issuing Bank and the Lenders shall not be
relieved of liability under the preceding sentence for their gross negligence or
willful misconduct in acting solely upon written or facsimile notice.
7. Fees. The Company shall pay the following fees:
----
7(a) Bond Letter of Credit Fees.
--------------------------
(1) To the Agent for the pro rata benefit of the Lenders,
including the Bond L/C Issuing Bank in its capacity as such, in accordance
with their respective Percentage Shares on or before the date of issuance
by the Bond L/C Issuing Bank of the Bond Letter of Credit, in advance, for
the period from the date of issuance of the Bond Letter of Credit to and
including December 31, 1999 and in advance on the last day of each March,
June, September and December thereafter, a non-refundable Bond Letter of
Credit fee in an amount calculated on the basis of a 360 day year for the
actual number of days in the applicable calculation period ending on such
date at a rate per
14
annum equal to the Bond Letter of Credit Fee Percentage on the face amount
of the Bond Letter of Credit on the required payment date.
(2) To the Bond L/C Issuing Bank, for its sole account,
such fees as may be separately set forth in a letter between the Company
and the Bond L/C Issuing Bank .
(3) To the Bond L/C Issuing Bank, such drawing, transfer
and other standard fees relating to the Bond Letter of Credit as are
customarily charged by Bond L/C Issuing Bank to its customers from time to
time with respect to similar letters of credit issued by it.
7(b) Facility Fee. To the Agent for the pro rata benefit of the
------------
Lenders in accordance with their respective Percentage Shares, on or before the
Effective Date, on the last Business Day of the last month of each calendar
quarter (and on the Revolving Loan Maturity Date) for the such calendar quarter
(or portion thereof), a facility fee in the amount set forth in a fee billing
delivered by the Agent to the Company, which facility fee shall be computed at
the per annum rate of one half of one percent (0.5%) on the average daily
Revolving Credit Limit in effect during the immediately preceding calendar
quarter (or portion thereof).
7(c) Standard Letter of Credit Fees.
------------------------------
(1) To the Agent for the pro rata benefit of the Lenders,
including the Standard L/C Issuing Bank in its capacity as such, in
accordance with their respective Percentage Shares on or before the date of
issuance by the Standard L/C Issuing Bank of each Standard Letter of
Credit, in advance, for the period from the date of issuance of such
Standard Letter of Credit to and including December 31, 1999 and in advance
on the last day of each March, June, September, and December thereafter, a
non-refundable Standard Letter of Credit fee in an amount calculated on the
basis of a 360 day year for the actual number of days in the applicable
calculation period at a rate per annum equal to the Standard Letter of
Credit Fee Percentage on the face amount of the Standard Letters of Credit
Outstanding on the required payment date
(2) To the Standard L/C Issuing Bank, for its sole
account, such fees as may be separately set forth in a letter between the
Company and the Standard L/C Issuing Bank.
(3) To the Standard L/C Issuing Bank, such drawing,
transfer and other standard fees relating to the Standard Letter of Credit
as are customarily charged by Standard L/C Issuing Bank to its customers
from time to time with respect to similar letters of credit issued by it.
7(d) Agent's Fees. To the Agent for its sole account such fees
------------
as shall be separately set forth in a writing between the Agent and the Company
from time to time.
7(e) Interest on Delayed Funding. If any Lender fails to make
---------------------------
funds available to the Agent, the Bond L/C Issuing Bank or any other Lender
promptly when payable
15
in accordance with this Agreement, such amount shall bear interest until paid at
the Federal Funds Rate.
8. Security Documents; Guaranties; Additional Documents.
----------------------------------------------------
8(a) Security Documents . As credit support for the Interim Bond
------------------
Loans, the Revolving Loans, Standard L/C Obligations, the participations of the
Lenders in respect of the Standard L/C Obligations and Bond L/C Obligations,
interest and fees thereon and all other Obligations, the Company will execute
and deliver, and cause each Guarantor to execute and deliver to the Agent, for
the benefit of the Bond L/C Issuing Bank, the Standard L/C Issuing Bank, and the
Lenders, Security Agreements substantially in the form of Exhibits B-1 and B-2,
------------ ---
respectively, to this Agreement, a Bond Pledge Agreement substantially in the
form of Exhibit J to this Agreement, and such financing statements, documents
---------
and instruments (collectively, the "Security Documents").as are in the Agent's
judgment necessary or desirable to obtain, subject only to Permitted Liens, a
first priority perfected security interest in the Collateral except (i)
Collateral that, in the ordinary course of business, is temporarily moved to
jurisdictions in which such security interest is not perfected and (ii)
Collateral in the nature of bank accounts that serve as clearing accounts in
which not more than $100,000 is maintained on deposit.
8(b) Guaranties. As credit support for the Obligations, the
----------
Company shall cause each now existing and hereafter created or acquired U.S.
domestic Subsidiary of the Company (each, a "Guarantor") to execute and deliver
to the Agent for the benefit of the Lenders a credit guaranty in the form of
Exhibit C (each, a "Guaranty" and, collectively, the "Guaranties") to this
---------
Agreement.
8(c) Additional Documents. The Company agrees to execute and
--------------------
deliver and to cause to be executed and delivered to the Agent from time to time
such documents, instruments and agreements as are in the Agent's judgment
necessary or desirable to (i) obtain for the Agent on behalf of the Bond L/C
Issuing Bank, the Standard L/C Issuing Bank and the Lenders the benefits
intended to be conveyed by the parties as contemplated by this Agreement and the
other Loan Documents. Without limiting the generality of the foregoing, the
Company agrees to (a) cause to be executed and delivered to the Agent from each
Subsidiary created after the date of this Agreement (1) a Guaranty; (2) Security
Documents granting to the Agent a perfected security interest in substantially
all Property of such Subsidiary; and (3) such organizational documents,
resolutions, incumbency certificates, and opinions or the Agent may reasonably
request in connection with the foregoing, and (b) execute and deliver such
additional documents as from time to time may be required to prevent payments by
the Bond L/C Issuing Bank on account of the Bonds from constituting preferential
transfers to the holders of the Bonds under the United States Bankruptcy Code.
9. Conditions to Revolving Loans and Issuance of Letters of Credit.
----------------------------------------------------------------
9(a) First Revolving Loan and Issuance. As conditions precedent
---------------------------------
to the issuance of the Bond Letter of Credit or the first Standard Letter of
Credit, and to the making of the first Revolving Loan:
16
(1) The Company shall have delivered or shall have had
delivered to the Agent, in form and substance satisfactory to the Agent and
its counsel, each of the following (with sufficient copies for each of the
Lenders):
(i) A duly executed copy of this Agreement;
(ii) A duly executed copy of a Guaranty from each of
the Guarantors;
(iii) A duly executed copy of each Security Document;
(iv) The Approved Budget, the Approved Construction
Schedule, and report from an independent engineer acceptable to the
Lenders with respect to review of the Construction Plans, the
feasibility of the Project, addressing the Approved Budget, Approved
Construction Schedule, and such other matters as the Lenders may
request;
(v) Loss payee endorsements, additional insured
certificates, and other certificates of insurance acceptable to the
Agent evidencing the insurance required to be maintained by the
Company pursuant to Paragraph 11(i) below;
---------------
(vi) A true and correct copy of each of the Bond
Documents;
(vii) Such credit applications, financial
statements, authorizations and such information concerning the
Company, the Guarantors and their respective business, operations and
condition (financial and otherwise) as any Lender may reasonably
request;
(viii) Certified copies of resolutions of the Board
of Directors of the Company approving the execution and delivery of
the Loan Documents and Bond Documents to which the Company is party;
(ix) A certificate of the Secretary or Assistant
Secretary of the Company certifying the names and true signatures of
the officers of the Company authorized to sign the Loan Documents and
Bond Documents to which the Company is party;
(x) Certified copies of resolutions of each of the
Guarantors approving the execution and delivery of the Guaranty to be
executed by such Guarantor;
(xi) A certificate of an authorized officer of the
Guarantors certifying the names and true signatures of the officer(s)
of the
17
Guarantor authorized to sign the Guaranty to be executed by such
Guarantor;
(xii) An opinion of counsel to the Company and the
Guarantors, which counsel shall be satisfactory to the Agent,
substantially in the form of that attached hereto as Exhibit D;
---------
(xiii) An opinion of Bond Counsel (as defined in the
Indenture) either addressed to the Lender or authorizing the Lenders
to rely on such opinion with respect to the Bond Documents and such
other matters as the Agent may reasonably request;
(xiv) The Bonds shall have received a rating from a
nationally recognized rating agency acceptable to the Agent and the
Bond L/C Issuing Bank;
(xv) Evidence satisfactory to the Agent and the
Bond L/C Issuing Bank and the Lenders that all conditions precedent to
the issuance of the Bonds (other than delivery of the Bond Letter of
Credit) have been satisfied and that the Bonds will be issued on terms
satisfactory to the Agent, the Bond L/C Issuing Bank and the Lenders.
(2) All acts and conditions (including, without
limitation, the obtaining of any necessary regulatory approvals and the
making of any required filings, recordings or registrations) required to be
done and performed and to have happened precedent to the execution,
delivery and performance of the Loan Documents and to constitute the same
legal, valid and binding obligations, enforceable in accordance with their
respective terms, shall have been done and performed and shall have
happened in due and strict compliance with all applicable laws.
(3) All documentation, including, without limitation,
documentation for corporate and legal proceedings in connection with the
transactions contemplated by the Loan Documents shall be satisfactory in
form and substance to the Agent, the Bond L/C Issuing Bank, the Standard
L/C Issuing Bank, the Lenders and their counsel.
9 (b) Conditions to making each Revolving Loan and issuance
-----------------------------------------------------
of each Standard Letter of Credit. As conditions precedent to the issuance of
---------------------------------
any subsequent Standard Letter of Credit and the making of any Revolving Loan,
(1) In the case of a Standard Letter of Credit, there
shall have been delivered to the Standard L/C Issuing Bank, through the
Agent, the required Standard Letter of Credit Application therefor.
(2) In the case of a Revolving Loan, the required Loan
Request therefor.
18
(3) The representations and warranties of the Company
and Guarantors contained in the Loan Documents shall be accurate and
complete in all material respects as if made on and as of the date of the
Revolving Loan is to be made or the Standard Letter of Credit is to be
issued.
(4) There shall not have occurred an Event of Default
or Potential Default.
9(c) Conditions to disbursements of funds from
-----------------------------------------
Disbursement Account. As conditions precedent to disbursement from the
--------------------
Disbursement Account established in Section 11(m) hereof to or for the account
of the Company, unless waived by the Lenders, each of the following conditions
shall have been fulfilled to the Agent's satisfaction:
(1) The Agent shall have received a written
request for disbursement from the Company, in form and substance
satisfactory to the Agent.
(2) The representations and warranties of the
Company and Guarantors contained in the Loan Documents shall be accurate
and complete in all material respects as if made on and as of the date of
the requested disbursement.
(3) There shall not then be continuing an Event
of Default or Potential Default.
(4) At least ten (10) Business Days prior to the
requested disbursement, there shall have been delivered to the Agent or its
designee (i) a report, setting forth such details concerning the progress
of the Project as the Agent, the Independent Engineer or the Construction
Manager may require, including without limitation: (A) a detailed breakdown
of all costs covered by the Approved Budget, including an itemization of
(1) all costs accrued as of the date of requested disbursement, (2) all
costs accrued and unpaid as of such date, (3) all costs projected to be
necessary to complete the Project, and (4) the application of all past
disbursements; (B) a current construction progress schedule consistent with
the Approved Construction Schedule; and (C) all changes from the previous
report which are known or reasonably anticipated by the Company; (ii)
evidence of proper application of all past disbursements, including without
limitation the following: (A) an unconditional partial waiver of lien from
each contractor and subcontractor, in form and substance satisfactory to
the Agent or its designee, covering the full amount of all past
disbursements for direct construction costs through the date of the most
recent disbursement; and (B) an unconditional final waiver of lien, in form
and substance satisfactory to the Agent or its designee, from each
contractor and each subcontractor who, as of the most recent disbursement,
had completed the work covered by its contract or subcontract, covering the
full amount due each such contractor or subcontractor; and (iii) such other
documents and information as the Agent, the Independent Engineer, or the
Construction Manager may reasonably require.
(5) With respect to disbursements for direct construction
costs, the work of construction shall be progressing or shall have been
completed to the Agent's
19
satisfaction, based on the inspection and findings of the Agent, the
Independent Engineer, or the Construction Manager.
(6) At the option of the Agent, each disbursement for
direct construction costs may be subject to a holdback (the "Retainage") of
up to ten percent (10%) of the amount of all direct construction costs
incurred through the date of such disbursement; provided, however, that no
such Retainage shall be required for (i) contracts or subcontracts of less
than $10,000 or (ii) for materials and supplies purchased directly from
vendors and suppliers. The amount of such Retainage shall be disbursed to
or for the account of the Company upon determination by the Agent, the
Independent Engineer, or the Construction Manager that (i) the Project has
been completed in accordance with the Construction Plans and all
Requirements of Law, and the Company shall have furnished to the Agent, at
the Company's expense, a standard AIA form of Certificate of Project
Completion, signed by the Company and Company's architect, certifying that
the construction work has been completed in a good and workmanlike manner
and in accordance with such plans; (ii) a valid notice of completion shall
have been recorded and the applicable lien periods shall have expired, or,
in lieu thereof, the Agent shall have received and approved final lien
waivers and releases, in form and substance satisfactory to the Agent, from
all contractors, subcontractors, laborers and materialmen employed or
furnishing materials in connection with the construction work; (iii) all
claims of lien and stop notices that may have been recorded or notice
thereof served on the Agent, the Issuer or the Trustee shall have either
been paid in full and released or the Company shall have posted a surety
bond sufficient to discharge the same; (iv) if requested by the Agent, the
Company shall have delivered or caused to be delivered to the Agent a
complete set of "as built" working drawings for the Project; (v) the Agent
shall have received evidence of appropriate approvals from all Governmental
Authorities regarding completion of the construction work, which approvals
shall be evidenced by an irrevocable certificate for the permanent
occupancy thereof to the extent such approval is a condition to the lawful
use and occupancy of the Project; and (vi) at the request of the Agent, the
Company shall have delivered to the Agent copies of all agreements, permits
and licenses issued in connection with or required for the construction
Project, and all insurance policies or certificates required under
Paragraph 9(a)(1)(viii) of this Agreement, to the
-----------------------
extent not previously delivered.
10. Representations and Warranties of the Company. As an
---------------------------------------------
inducement to the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing
Bank and each Lender to enter into this Agreement, the Company represents and
warrants to the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank
and each Lender that:
10(a) Financial Condition. The financial statements, dated the
-------------------
Statement Date and the Interim Date, copies of which have heretofore been
furnished to each Lender by the Agent, are complete and correct and present
fairly in accordance with GAAP the financial condition of the Company and its
consolidated Subsidiaries at such dates and the consolidated and consolidating
results of their operations and changes in financial position for the fiscal
periods then ended.
20
10(b) No Change. Since the Interim Date there has been no
---------
material adverse change in the business, operations, assets or financial or
other condition of the Company or the Company and its Subsidiaries taken as a
whole. Except as expressly disclosed in writing to the Agent, the Bond L/C
Issuing Bank, the Standard L/C Issuing Bank and the Lenders prior to the
Effective Date, from the Interim Date through the Effective Date, neither the
Company nor any of its Subsidiaries has entered into, incurred or assumed any
material long-term debt, mortgages, leases or oral or written commitments, nor
commenced any significant project, nor made any purchase or acquisition of any
significant property.
10(c) Corporate Existence; Compliance with Law. The Company and
----------------------------------------
each of its Subsidiaries: (1) is duly organized, validly existing and in good
standing as a corporation under the laws of the jurisdiction of its organization
and is qualified to do business in each jurisdiction where its ownership of
property or conduct of business requires such qualification and where failure to
qualify would have a Material Adverse Effect, (2) has the corporate power and
authority and the legal right to own and operate its property and to conduct
business in the manner in which it does and proposes so to do, and (3) is in
compliance with all Requirements of Law and Contractual Obligations, the failure
to comply with which could have a Material Adverse Effect.
10(d) Corporate Power; Authorization; Enforceable Obligations.
-------------------------------------------------------
The Company and each of its Subsidiaries has the corporate power and authority
and the legal right to execute, deliver and perform the Loan Documents to which
it is a party and has taken all necessary corporate action to authorize the
execution, delivery and performance of such Loan Documents. The Loan Documents
to which the Company or any of its Subsidiaries is party have been duly executed
and delivered on behalf of such Person and constitute legal, valid and binding
obligations of such Person enforceable against such Person in accordance with
their respective terms, subject to the effect of applicable bankruptcy and other
similar laws affecting the rights of creditors generally and the effect of
equitable principles whether applied in an action at law or a suit in equity.
10(e) No Legal Bar. The execution, delivery and performance of
------------
the Loan Documents to which the Company or any of its Subsidiaries is party, the
borrowing under the Revolving Loan Agreement and the use of the proceeds
thereof, will not violate any Requirement of Law or any Contractual Obligation
of the Company or any of its Subsidiaries the violation of which could have a
Material Adverse Effect or result in the creation of any Lien on any assets of
the Company or any of its Subsidiaries.
10(f) No Material Litigation. Except as disclosed on Exhibit E
---------------------- ---------
hereto, no litigation, investigation or proceeding of or before any arbitrator,
court or Governmental Authority is pending or, to the knowledge of the Company,
threatened by or against the Company or any of its Subsidiaries or against any
of such parties' properties or revenues which is likely to be adversely
determined and which, if adversely determined, is likely to have a Material
Adverse Effect.
10(g) Taxes. The Company and each of its Subsidiaries have
-----
filed or caused to be filed all tax returns that are required to be filed and
have paid all taxes shown to be due and payable on said returns or on any
assessments made against them or any of their
21
property other than taxes which are being contested in good faith by appropriate
proceedings and as to which the Company or applicable Subsidiary has established
adequate reserves in conformity with GAAP.
10(h) Investment Company Act. The Company is not an "investment
----------------------
company" or a company "controlled" by an "investment company" within the meaning
of the Investment Company Act of 1940, as amended.
10(i) Subsidiaries. Attached hereto as Exhibit F is an accurate
------------ ---------
and complete list of the Subsidiaries, their respective jurisdictions of
incorporation and the percentage of their capital stock owned by the Company or
other Subsidiaries. All of the issued and outstanding shares of capital stock of
such Subsidiaries have been duly authorized and issued and are fully paid and
non-assessable.
10(j) Federal Reserve Board Regulations. Neither the Company nor
---------------------------------
any of its Subsidiaries is engaged or will engage, 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 respective meanings of
such terms under Regulation U. No part of the proceeds of any funding under this
Agreement or any Bond L/C Drawing or Standard L/C Drawing will be used for
"purchasing" or "carrying" "margin stock" as so defined or for any purpose which
violates, or which would be inconsistent with, the provisions of the Regulations
of the Board of Governors of the Federal Reserve System.
10(k) ERISA. The Company and each of its Subsidiaries are in
-----
compliance in all respects with the requirements of ERISA and no Reportable
Event has occurred under any Plan maintained by the Company or any of its
Subsidiaries which is likely to result in the termination of such Plan for
purposes of Title IV of ERISA.
10(l) Assets. The Company and each of its Subsidiaries has good
------
and marketable title to all property and assets reflected in the financial
statements dated the Interim Date referred to in Paragraph 10(a) above, except
---------------
property and assets sold or otherwise disposed of in compliance with Paragraph
---------
12(h) below and otherwise in the ordinary course of business subsequent to the
-----
Interim Date. Neither the Company nor any of its Subsidiaries has outstanding
Liens on any of its properties or assets nor are there any security agreements
to which the Company or any of its Subsidiaries is a party, or title retention
agreements, whether in the form of leases or otherwise, of any personal property
except as reflected in the financial statements referred to in Paragraph 10(a)
---------------
above or as permitted under Paragraph 12(a) below.
---------------
10(m) Securities Acts. The Company has not issued any
---------------
unregistered securities in violation of the registration requirements of Section
5 of the Securities Act of 1933, as amended, or any other law, and is not
violating any rule, regulation or requirement under the Securities Act of 1933,
as amended, or the Securities and Exchange Act of 1934, as amended. The Company
is not required to qualify an indenture under the Trust Indenture Act of 1939,
as amended, in connection with its execution and delivery of the Loan Documents.
10(n) Consents, Etc. No consent, approval, authorization of, or
-------------
registration, declaration or filing with any Governmental Authority or any other
Person is
22
required on the part of the Company or any of its Subsidiaries in
connection with the conduct of its business or the execution and delivery of the
Loan Documents or the performance of or compliance with the terms, provisions
and conditions hereof or thereof other than such as have been obtained prior to
or concurrently with the occurrence of the Effective Date.
10(o) Copyrights, Patents, Trademarks and Licenses, etc. The
--------------------------------------------------
Company owns or is licensed or otherwise has the right to use all of the
patents, trademarks, service marks, trade names, copyrights, contractual
franchises, authorizations and other rights that are reasonably necessary for
the operation of its business, without conflict with the rights of any other
Person. To the best knowledge of the Company, no slogan or other advertising
device, product, process, method, substance, part or other material now
employed, or now contemplated to be employed, by the Company infringes upon any
rights held by any other Person. Except as specifically disclosed in Exhibit E
---------
hereto, no claim or litigation regarding any of the foregoing is pending or, to
the knowledge of the Company, threatened, and, to the knowledge of the Company,
no patent, invention, device, application, principle or any statute, law, rule,
regulation, standard or code is pending or proposed, which, in either case,
could, reasonably be expected to have a Material Adverse Effect.
10(p) Hazardous Materials. Except for incidents that (1) have
-------------------
been fully remediated in accordance with all applicable Hazardous Materials
Laws; (2) would not violate Paragraph 11(j)(2) below if such circumstance
------------------
occurred to the date of this Agreement; or (3) are disclosed in filings
heretofore made by the Company with the Securities and Exchange Commission,
neither the Company nor, to the best knowledge of the Company, any other Person
has in violation of any Requirements of Law: (1) caused or permitted any
Hazardous Materials to be released or disposed of in, on, under or about any
Property or any part thereof; (2) caused or permitted to be incorporated into or
utilized in the construction of any improvements located on any Property any
chemical, material, or substance to which exposure is prohibited, limited or
regulated by any Hazardous Materials Laws or which, even if not so regulated, is
known to pose a hazard (either in its present form or if disturbed or removed)
to the health and safety of the occupants of or visitors to such Property or of
property adjacent to such Property; or (3) discovered the presence on or under
any Property of any underground tanks used for the storage of Hazardous
Materials or any occurrence or condition on any Property or any property
adjacent to or in the vicinity of such Property that could cause such Property
or any part thereof to be subject to any restrictions on the ownership,
occupancy, transferability or use of such Property under any Hazardous Materials
Laws.
10(q) Regulated Entities. The Company is not subject to
------------------
regulation under the Public Utility Holding Company Act of 1935, the Federal
Power Act, the Interstate Commerce Act, any state public utilities code, or any
other Federal or state statute or regulation limiting its ability to incur
Indebtedness.
10(r) Approved Budget. On a line-by-line and total basis the
---------------
costs shown in the Approved Budget, to the best of the Company's belief,
represent the total of all costs, expenses and fees that the Company expects to
pay or may be or become obligated to pay to construct the Project.
23
10(s) Bond Document Representations. Each of the representations and
-----------------------------
warranties made by the Company in any of the Bond Documents is true and correct
in all material respects.
10(t) Security Documents. The Security Documents are effective to
------------------
create in favor of the Agent, for the ratable benefit of the Lenders, the Bond
L/C Issuing Bank, the Standard L/C Issuing Bank, and the Lenders a legal, valid
and enforceable security interest in the Collateral and, when duly recorded or
filed, the Liens granted under the Security Documents shall constitute a fully
perfected first priority Lien on, and security interest in, all right, title and
interest of the grantors thereunder in such Collateral, subject only to
Permitted Liens and any pari passu Lien in favor of the Trustee.
10(u) Solvency. The Company and each of its Subsidiaries is, and at
--------
all times during the term of this Agreement will be, Solvent after giving effect
to each of the Loan Documents.
10(v) Year 2000. The Company and each of its Subsidiaries has made a
---------
full and complete assessment of the Year 2000 Issues and has a realistic and
achievable program for remediating the Year 2000 Issues on a timely basis and in
a manner such that a Material Adverse Effect would not reasonably be expected to
occur (the "Year 2000 Program"). Based on such assessment and on the Year 2000
Program the Company does not reasonably anticipate that Year 2000 Issues will
have a Material Adverse Effect.
11. Affirmative Covenants. The Company hereby covenants and agrees
---------------------
with the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and
each Lender that, as long the Bond Letter of Credit or any Standard Letter of
Credit is Outstanding or any Bond L/C Obligations, Standard L/C Obligations or
other Obligations remain unpaid or the Lenders have any commitment to extend
credit under this Agreement, unless otherwise agreed by the Agent and the
Required Lenders in writing, the Company shall:
11(a) Financial Statements. Furnish or cause to be furnished
--------------------
to the Agent and to each of the Lenders directly:
(1) Within ninety (90) days after the last day of each
fiscal year of the Company, consolidated statements of income and
statements of changes in financial position for such year and balance
sheets as of the end of such year presented fairly in accordance with GAAP
and accompanied by an unqualified report of a firm of independent certified
public accountants reasonably acceptable to the Agent;
(2) Within forty five (45) days after the last day of each
fiscal quarter, consolidated statements of income and changes in financial
position for such calendar quarter and balance sheets as of the end of such
calendar quarter of the Company and its Subsidiaries;
(3) Concurrently with the delivery of each of the financial
statements delivered pursuant to subparagraph (1) and (2) above, a
Compliance Certificate of the chief financial officer of the Company
stating that such financial statements are presented fairly in accordance
with GAAP, confirming as of the last day of
24
such fiscal period the continuing accuracy and completeness of all
representations and warranties of the Company set forth in the Loan
Documents or, with respect to any representation and warranty made as of a
specific date, the accuracy and completeness as of such date, and that
there does not exist a Potential Default or an Event of Default hereunder;
(4) Within ninety (90) days after the last day of each fiscal
year, cash flow projections for the current fiscal year prepared in form
and detail acceptable to the Agent;
(5) Promptly upon filing, a copy of each Form 10-Q, 8-K, and
any other form or filing that the Company files from time to time with the
Securities and Exchange Commission.
11(b) Other Information. Promptly furnish or cause to be furnished to
-----------------
the Agent (with the Agent providing the same to each of the Lenders):
(1) Upon request of the Agent or the Bond L/C Issuing Bank,
evidence satisfactory to the requesting Person that the Company and each of
its Subsidiaries are in full compliance with Paragraphs 11(i) (Insurance)
----------------
and 11(j) (Hazardous Materials) below and that the representations in
-----
Paragraphs 10(c) (Corporate Existence; Compliance with Law); 10(e) (No
---------------- -----
Legal Bar), 10(p) (Hazardous Materials) and 10(n) (Consents) above are and
----- -----
have been at all applicable times true and correct in all materials
respects.
(2) Such additional financial and other information,
including, without limitation, financial statements of the Company and the
Guarantors as the Agent or any Lender (through the Agent) may from time to
time reasonably request.
11(c) Payment of Indebtedness. Itself, and shall cause each of its
-----------------------
Subsidiaries to, pay, discharge or otherwise satisfy at or before maturity or
before it becomes delinquent, defaulted or accelerated, as the case may be, all
its Indebtedness (including taxes), except Indebtedness being contested in good
faith and for which provision is made to the satisfaction of the Agent for the
payment thereof in the event the Company or such Subsidiary is found to be
obligated to pay such Indebtedness and which Indebtedness is thereupon promptly
paid by the Company or such Subsidiary.
11(d) Maintenance of Existence and Properties. Itself, and shall
---------------------------------------
cause each of its Subsidiaries to, maintain its corporate existence and maintain
all rights, privileges, licenses, approvals, franchises, properties and assets
necessary or desirable in the normal conduct of its business, and comply with
all Contractual Obligations and Requirements of Law the failure to comply with
which could have a Material Adverse Effect.
11(e) Inspection of Property; Books and Records; Discussions. Itself,
------------------------------------------------------
and shall cause each of its Subsidiaries to, keep proper books of record and
account in which full, true and correct entries in conformity with GAAP and all
Requirements of Law the failure to comply with which could have a Material
Adverse Effect shall be made of all dealings and
25
transactions in relation to its business and activities, and permit
representatives of the Agent, the Bond L/C Issuing Bank, the Standard L/C
Issuing Bank, the Independent Engineer, the Construction Manager or any Lender
(at no cost or expense to the Company or any Subsidiary and during normal
business hours (unless there shall have occurred and be continuing an Event of
Default)) to visit and inspect any of its properties (including, without
limitation, the Project) and examine and make abstracts from any of its books
and records at any reasonable time and as often as may reasonably be desired by
the Agent or any Lender and to discuss the business, operations, properties and
financial and other condition of the Company and any of its Subsidiaries with
officers and employees of such parties, and with their independent certified
public accountants.
11(f) Notices. Promptly give written notice to the Agent and
-------
each of the Lenders directly of:
(1) The occurrence of any Potential Default or Event of
Default;
(2) Any litigation or proceeding affecting the Company or
any of its Subsidiaries which is likely to be resolved adversely and which
if resolved adversely could have a Material Adverse Effect;
(3) The occurrence of any change that might result in a
Material Adverse Effect; and
(4) Prior to the occurrence thereof, the formation of any
Subsidiary following the Effective Date.
11(g) Expenses. Pay all reasonable out-of-pocket expenses
--------
(including fees and disbursements of counsel): (1) of the Agent incident to the
preparation, negotiation and administration of the Loan Documents and the
protection of the rights of the Lenders, the Bond L/C Issuing Bank the Standard
L/C Issuing Bank, and the Lenders under the Loan Documents, including, without
limitation, the costs and expenses of the Independent Engineer and the
Construction Manager; and (2) of the Agent, the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank and each of the Lenders incident to the enforcement of
payment of the Obligations, whether by judicial proceedings or otherwise,
including, without limitation, in connection with bankruptcy, insolvency,
liquidation, reorganization, moratorium or other similar proceedings involving
the Company or a "workout" of the Obligations. The obligations of the Company
under this Paragraph 11(g) shall be effective and enforceable whether or not the
---------------
Bond Letter of Credit, any Standard Letter of Credit or any Loan is issued or
made hereunder and shall survive payment of all other Obligations.
11(h) Loan Documents. Itself and cause each of the Guarantors to
--------------
comply with and observe all terms and conditions of the Loan Documents and Bond
Documents to which it is a party.
11(i) Insurance.
---------
26
(1) Itself and cause each of its Subsidiaries to obtain and
maintain insurance with responsible companies in such amounts and against
such risks as are usually carried by corporations engaged in similar
businesses similarly situated, and furnish any of the Lenders on request
(made through the Agent) full information as to all such insurance.
Without limiting the generality of the foregoing, the Company shall (i)
maintain insurance with at least the limits and coverage described on
Exhibit G hereto and with insurance companies with a Best rating no less
---------
than that of the insurance companies issuing the policies described on such
Exhibit G , (ii) cause the Agent, for the benefit of itself, the Bond L/C
---------
Issuing Bank, the Standard L/C Issuing Bank and the Lenders, to be named as
loss payee on all casualty insurance maintained by the Company and the
Subsidiaries, and (iii) cause the Agent, for the benefit of itself, the
Bond L/C Issuing Bank, the Standard L/C Issuing Bank, and the Lenders, to
be named as additional insured on all other insurance maintained by the
Company and its Subsidiaries. Proceeds of casualty insurance on account of
the Project, until the Project is completed, shall be paid to the Agent for
deposit into the Disbursement Account and may be withdrawn therefrom in
accordance with the provisions of this Agreement.
(2) After completion of the Project, upon the happening of any
casualty to the Project or any part thereof, Company shall give prompt
written notice thereof to Agent. If the Company reasonably determines that
the cost of restoration, repairs, replacement, rebuilding or alterations of
the Project (all of which temporary repairs, protection of property and
permanent restoration, repairs, replacements, building and alterations are
hereinafter collectively referred to as the "Restoration") will not exceed
the sum of five hundred thousand dollars ($500,000) and that the damage to
the Project is covered by applicable insurance, then, upon approval by the
Agent, which shall not be unreasonably withheld, the Company shall promptly
commence the Restoration and diligently pursue Restoration activities until
completion, in compliance with all applicable laws and regulations. The
Company shall be entitled to receive any insurance proceeds paid as a
result of the damage but shall promptly pay any costs of Restoration that
exceed insurance available therefor.
(3) If the Company reasonably believes that the cost of
Restoration described in this section will be greater than five hundred
thousand dollars ($500,000), then all proceeds of insurance shall be
payable to Agent. The Company hereby authorizes payment of such insurance
directly to the Agent by the insurer. for application first toward
reimbursement of all costs and expenses of the Agent in connection with
recovery of the same, and then, except as set forth below in this section,
shall be applied in the sole and absolute discretion of the Agent to the
payment or prepayment of the Indebtedness in such order as Agent may
determine; provided, however, if the Company shall have furnished to the
Agent an estimate of the cost of Restoration accompanied by an architect's
certificate as to such costs and appropriate final plans and specifications
for Restoration of the Project, all of which shall be approved by Agent,
the Project so restored or rebuilt shall be of at least equal value and
substantially the same character as prior to the damage or destruction and
appropriate for the purposes for which they were originally erected, the
Company shall have furnished the Agent with evidence satisfactory to the
Agent that the Project so restored and/or reconstructed and their use fully
comply with all zoning and building laws, ordinances
27
and regulations, and with all other applicable federal, state, and
municipal laws and requirements, if the estimated cost of restoration
exceeds the amounts available, the Company shall have furnished a
satisfactory bond of completion or deposited with the Agent such sums as
may be necessary to pay such excess costs, the Company shall not then be in
default under any of the Loan Documents, then the insurance, less the
actual costs, fees and expenses, if any, incurred in connection with
adjustment of loss and the Agent's administrative expenses relating to such
loss and the disbursement of the proceeds shall be applied by the Agent to
the payment of all the costs of the Restoration, and shall be paid out in
accordance with the procedures set forth in Paragraph 9(c) from time to
--------------
time as such Restoration progresses upon the written request of the Company
if the work for which payment is requested has been done in a good and
workmanlike manner and substantially in accordance with the plans and
specifications therefor.
11(j) Hazardous Materials. Itself, and shall cause each of its
-------------------
Subsidiaries to:
(1) Unless otherwise described in filings delivered to
the Agent pursuant to Paragraph 11(a) above, immediately advise the Agent
--------------
in writing if (i) any Hazardous Materials Claims in an aggregate amount in
excess of $100,000.00 are hereafter asserted; (ii) any discharge, release,
or disposal of any Hazardous Materials in, on, or under any Property would,
if remediation of such condition were required by any applicable
governmental agency with jurisdiction over such Property, result in
remediation costs in excess of $100,000.00.
(2) Use its best, commercially reasonable efforts to keep
and maintain each Property in compliance with, and not cause or permit any
Property to be in violation of, any Hazardous Material Laws, and in all
events shall ensure that in the event any discharge, release or disposal of
any Hazardous Materials has occurred in, on, under, or about any Property
that such incident does not have a Material Adverse Effect.
11(k) Compliance with Laws. Itself, and shall cause each of its
--------------------
Subsidiaries to, comply, in all material respects with all Requirements of Law
and Contractual Obligations the failure to comply with which could have a
Material Adverse Effect.
11(l) Project Construction Covenants.
------------------------------
(1) If the Agent or the Construction Manager at any time
shall determine in its reasonable discretion that (i) the Approved Budget
is inadequate to insure completion of the Project in accordance with the
Construction Plans and all Requirements of Law according to the Approved
Construction Schedule or (ii) amounts on deposit in the Disbursement
Account are insufficient to complete the Project in accordance with the
Construction Plans, promptly, upon receipt of written demand by the Agent,
deposit or cause to be deposited in the Construction Account such amount as
the Agent or the Construction Manager deems necessary to complete the
Project in accordance with the Construction Plans and the Approved
Construction Schedule. Upon such deposit, the Approved Budget shall be
deemed modified accordingly.
28
(2) Promptly upon issuance of the Bond Letter of Credit,
commence construction of the Project under the Construction Plans and shall
cause such construction to continue with diligence and continuity in
compliance with the Approved Budget and Approved Construction Schedule;
provided, however, that the Approved Construction Schedule may be extended
for a period equal to proven delays caused by fire, earthquake or other
acts of God, acts of public enemies, riot, insurrection, governmental
regulation of the sale of materials and supplies or the transportation
thereof, strikes directly affecting the work of construction or shortages
of material or labor resulting directly from governmental control or
diversion, but in no event shall any milestone or completion pursuant to
the Approved Construction Schedule be extended for such causes for more
than a total of forty-five (45) days without the prior written consent of
the Agent or the Construction Manager.
(3) Construct the Project in accordance with the
Construction Plans and shall not, without the prior written consent of the
Agent or the Construction Manager, agree to any material change order or
any changes that (i) would increase the Approved Budget by more than
$250,000, or (ii) would cause the aggregate of all change orders (whether
proposed or executed) to exceed $750,000, unless such change order shall be
submitted to the Agent for its prior written approval on a form acceptable
to the Agent or the Construction Manager, accompanied, by a copy of the
contract to which such change order relates.
(4) Acknowledge that the Agent and the Construction Manager
may require up to ten (10) days after receiving information and
confirmations to respond to change orders, and the Company consents to such
delays and agrees to cooperate diligently with the Agent in the gathering
of the information required. In addition, the Company acknowledges and
agrees that neither the Agent nor the Construction Manager is under any
duty to review, advise or inform the Company of, and the Agent's or
Construction Manager's approval or disapproval shall not constitute a
warranty or representation about, the quality or suitability of the plans
or any modification, amendment or supplement thereto.
(5) During the construction period, permit the Agent and
the Construction Manager (i) to have free entry and access to the Project
and to all sites away from the Project where materials that are to be
incorporated into the Project are stored; (ii) at the Company's expense, to
inspect all work done, labor performed and materials furnished for use in
the Project; (iii) if Company does not provide satisfactory information to
contact directly or otherwise communicate with any contractor or
subcontractor; and (iv) to examine, copy and make extracts of, all books,
records, accounting data, subcontracts and other documents pertaining to
the Company or the Project and all contractors and subcontractors supplying
goods or services in connection with the construction of the Project. The
Company shall cooperate with and shall use commercially reasonable efforts
to cause all contractors and all subcontractors to cooperate with the Agent
and the Construction Manager. Said books, records, accounting data,
subcontracts and documents shall be made available to the Bank promptly
upon written demand therefor. The Company shall require or cause its
contractors to require
29
that all contracts relating to the Project contain an acknowledgement of
the foregoing inspection rights, except where such rights have been waived
by the Agent in writing.
(6) Acknowledge that neither the Agent nor the
Construction Manager is under any duty to supervise or to inspect the work
of construction, the labor performed therefor, the materials used therein
or any books and records. The Company agrees that any inspections by the
Agent and Construction Manager are for the sole purpose of preserving the
Agent's rights hereunder and that the Company is not entitled to rely upon
the same with respect to materials, workmanship, compliance with the
approved plans or otherwise. The Company intends and agrees to conduct its
own investigations and inspections of the construction, the labor performed
and materials supplied to determine that the quality of the Project and all
other requirements of the construction are being performed in a manner
satisfactory to the Company. The Company agrees to immediately notify the
Agent and the Construction Manager, in writing, should the same be in any
manner unsatisfactory. A failure to inspect the construction of the
Project, any part thereof or any books and records relating thereto, shall
not constitute a waiver of any of the Agent's rights hereunder. Inspection
not followed by notice of default shall not constitute a waiver of any
default then existing; nor shall it constitute an acknowledgement that
there has been or will be compliance with the plans approved by the Agent,
Independent Engineer or Construction Manager or that the construction is
free from defective materials or workmanship.
(7) Promptly discharge or cause to be discharged any
mechanics' or materialmen's liens or claims of lien filed or otherwise
asserted against the Project or any funds due any contractor and any
proceedings for the enforcement thereof and shall promptly discharge or
cause to be discharged any stop notices received by the Agent, the Issuer,
or the Trustee; provided, however, that so long as no proceedings shall
have been commenced for the enforcement of such claims or liens, the
Company shall have the right to contest in good faith and with reasonable
diligence the validity of any such liens or claims. In the case of stop
notices, the Company shall have the right to contest, in good faith and
with reasonable diligence, the validity of any stop notice, provided that
the Company shall immediately file with the Agent, Construction Manager and
the Trustee a bond in the form and amount required by law in order to
release such stop notice. Neither the Agent nor the Construction Manager
shall have any obligation to consent to any further disbursements until all
stop notices have been fully released, bonded or discharged.
11(m) Disbursement Account, Sinking Fund Account and Excess Cash
----------------------------------------------------------
Account.
-------
(1) On or prior to the date of this Agreement, the
Company shall establish one or more accounts (collectively, the
"Disbursement Account") to be maintained with the Trustee, the Agent
or other Person acceptable to the Agent into which the Company shall
deposit or cause to be deposited (i) the proceeds of the Bonds lent or
to be lent to it pursuant to the Loan Agreement, (ii) the proceeds of
any insurance maintained by the Company pursuant to this Agreement and
paid to the Agent in accordance herewith, and (iii) other amounts
30
that may, from time to time, be deposited or held therein. The Agent
agrees to consent to and to authorize the disbursement of amounts from
time to time on deposit in the Disbursement Account on the conditions
contained in Paragraph 9(c) above in accordance with the terms of this
--------------
Agreement and the Indenture.
(2) On or prior to the date of this Agreement, the
Company shall establish an account (the "Sinking Fund Account") with
the Agent or other Person acceptable to the Agent into which the
Company shall deposit or cause to be deposited on or prior to the last
day of each fiscal quarter, beginning March 31, 2001, an amount equal
to $500,000. Amounts from time to time on deposit in the Sinking Fund
Account shall be held for application against the Bond L/C Obligations
in accordance with this Agreement and, upon termination of this
Agreement and final repayment in full of all Obligations hereunder
shall be disbursed to or for the account of the Company.
(3) On or prior to the date of this Agreement, the
Company shall establish an account (the "Excess Cash Fund Account")
with the Agent or other Person acceptable to the Agent into which the
Company shall deposit or cause to be deposited on or before April 1st
in each year, commencing April 1, 2001, an amount equal to 50% of the
Company's Excess Cash Flow for the preceding fiscal year. Amounts from
time to time on deposit in the Excess Cash Fund Account shall be held
for application against the Bond L/C Obligations in accordance with
this Agreement and, upon termination of this Agreement and final
repayment in full of all Obligations hereunder shall be disbursed to
or for the account of the Company
(4) The Company hereby grants to the Agent, for the
benefit of the Lenders, the Bond L/C Issuing Bank, and the Standard
L/C Issuing Bank a first priority perfected security interest in any
and all rights of the Company in the Disbursement Account, the Sinking
Fund Account and the Excess Cash Fund (subject to any security
interest in favor of the Trustee for the benefit of the holders of the
Bonds from time to time) and all amounts and investments from time to
time on deposit therein. With the prior written consent of the Agent,
but subject to the security interests granted hereby and to any
limitations in the Indenture or otherwise deemed reasonably necessary
by Bond Counsel to preserve the tax-exempt nature of the interest on
the Bonds, amounts from time to time on deposit in the Disbursement
Account, Sinking Fund Account, and the Excess Cash Account may be
invested, at the option of the Company, in Cash Equivalent
Investments.
11(n) Trustee and Remarketing Agent. Cause the Trustee and the
-----------------------------
Remarketing Agent (as defined in the Indenture) at all times to be satisfactory
to the Agent in its sole discretion and, to the extent required in the Bond
Documents, the Issuer.
11(o) Use of Revolving Loan Proceeds and Standard Letters of
------------------------------------------------------
Credit. Use the Revolving Loans and the Standard Letters of Credit for
------
working capital, general
31
corporate purposes and to refinance term indebtedness in an aggregate amount of
not to exceed $3,222,000.
12. Negative Covenants. The Company hereby covenants and agrees with
------------------
the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and each
Lender that, as long the Bond Letter of Credit or any Standard Letter of Credit
is Outstanding or any Bond L/C Obligations, Standard L/C Obligations or other
Obligations remain unpaid or the Lenders have any commitment to extend credit
under this Agreement, without the prior written consent of the Agent and the
Required Lenders, Company shall not and shall not permit any Subsidiary to:
12(a) Liens. Create, incur, assume or suffer to exist any Lien
-----
upon any of its Property except Permitted Liens.
12(b) Indebtedness. Create, incur, assume or suffer to exist, or
------------
otherwise become or be liable in respect of any Indebtedness except:
(1) The Bond L/C Obligations, the Standard L/C
Obligations and the other Obligations;
(2) Indebtedness reflected in the financial statements
referred to in Paragraph 10(a) above;
---------------
(3) Trade debt incurred in the ordinary course of
business;
(4) Indebtedness secured by Liens permitted under
Paragraph 12(a) above;
---------------
(5) Indebtedness of the Company under the Loan Agreement;
and
(6) Other Permitted Debt.
12(c) Consolidation and Merger. Liquidate or dissolve or enter
-------------------------
into any consolidation, merger, partnership, joint venture, syndicate or other
combination except that the Company or a Subsidiaries may liquidate,
consolidate or merger if the Company or such Subsidiary is the surviving entity.
12(d) Acquisitions. Purchase or acquire or incur liability for
------------
the purchase or acquisition of any or all of the assets or business of any
person, firm or corporation, other than in the ordinary course of business and
in connection with the Project.
12(e) Payment of Dividends. Declare or pay any dividends upon
--------------------
its shares of stock now or hereafter outstanding or make any distribution of
assets to its stockholders as such, whether in cash, property or securities,
except dividends to the Company and dividends payable in shares of capital stock
and cash in lieu of fractional shares or in options, warrants or other rights to
purchase shares of capital stock.
32
12(f) Purchase or Retirement of Stock. Acquire, purchase, redeem
-------------------------------
or retire any shares of its capital stock now or hereafter owned by any Person
other than the Company.
12(g) Investments; Advances. Make or commit to make any advance,
---------------------
revolving loan or extension of credit or capital contribution to, or purchase
any stock, bonds, notes, debentures or other securities of, or make any other
investment in, any Person other than in the ordinary course of business.
12(h) Sale of Assets. Sell, lease, assign, transfer or otherwise
--------------
dispose of any of its assets (other than obsolete or worn out property or in
connection with the discontinuance of operations, any such discontinuance to be
based upon a reasonable business plan), whether now owned or hereafter acquired,
other than in the ordinary course of business as presently conducted and at fair
market value.
12(i) Capital Expenditures. Make or commit to make Capital
--------------------
Expenditures in any year in excess of the amount budgeted therefor as set forth
in a budget delivered to the Agent on or prior to the beginning of such fiscal
year but, in any event, not in excess of, in any year beginning with 2000, (i)
$5,000,000 plus (ii) the principal amount of the proceeds of the Bonds disbursed
to the Company pursuant to the Indenture.
12(j) Restriction on Negative Pledges. Grant, enter into or
-------------------------------
permit to remain in effect any agreement with any Person which would have the
effect of prohibiting or restricting in any manner the Company or any of its
Subsidiaries from granting to the Agent for the benefit of the Lenders, the Bond
L/C Issuing Bank and Standard L/C Issuing Bank such Liens upon assets and
properties of the Company and its Subsidiaries as the Company, such Subsidiaries
and the Lenders might otherwise agree.
12(k) Formation of Additional Subsidiaries. Following the
------------------------------------
Effective Date, form or permit any Subsidiary to form any additional Subsidiary
unless such Subsidiary promptly executes ad delivers to the Agent for the
benefit of the Lenders, a Guaranty, Security Documents and such other documents
as contemplated by Paragraph 8 above.
-----------
12(l) Modification of Bond Documents. Except as may be required
------------------------------
in the opinion of Bond Counsel to preserve the tax-exempt nature of the interest
on the Bonds, initiate or permit the initiation of any voluntary redemption of
Bonds or amend, modify or waive or suffer to be amended, modified or waived any
Bond Documents or any other Bond Documents or assign, transfer, pledge or
hypothecate any of its rights under any of the Bond Documents.
12(m) Financial Covenants. On a consolidated basis:
-------------------
(1) As at the end of any fiscal quarter, permit the Net
Funded Debt/ EBITDA Ratio to exceed (i) as of September 30, 1999, December
31, 1999 or March 31, 2000, 3.50: 1.00; (ii) as of June 31, 2000 or
September 30, 2000, 3.25:1.00; (iii) thereafter, 2.50:1.00.
33
(2) As of the end of any fiscal quarter, permit the Debt
Service Ratio to be less than 1.50: 1.00.
(3) As of the end of any fiscal quarter, permit the
Current Ratio to be less than (i) as of September 30, 1999, December 31,
1999, or March 31, 2000, 1.10:1.00; (ii) as of June 30, 2000 and September
30, 2000, 1.25:1.00; and (ii) thereafter, 1.50:1.00.
(4) At any time, permit the Tangible Net Worth to be less
than (i) until the end of fiscal year 1999, the Company's Tangible Net
Worth as at June, 1999 and (ii) beginning as of the end of fiscal year
1999, the Company's Tangible Net Worth as at December 31, 1999 plus, as of
the end of each fiscal year thereafter, Net Profit After Tax plus an amount
equal to Net Proceeds of Equity Securities Issuances.
12(n) Change in Officers. During the two (2) years after the
------------------
date of this Agreement, permit Xxxxxx Xxxx or Xxxxx Xxxx to cease to serve the
functions of President or Executive Vice President, respectively, in the Company
unless a successor is appointed by the Company which successor is of reasonably
comparable stature in the industry in which the Company is engaged.
13. Events of Default. Upon the occurrence of any of the following
-----------------
events (an "Event of Default"):
13(a) The Company shall fail to pay (i) any Bond L/C Drawing or
Standard L/C Drawing on the date when due, (ii) any Loan on the date when due,
or (iii) within three days of the date when due any other Obligation; or
13(b) Any representation or warranty made by the Company or any
Guarantor in this Agreement or in any other Loan Document or Bond Document shall
be inaccurate or incomplete in any material respect on or as of the date made;
or
13(c) The Company or any Guarantor shall fail to maintain its
corporate existence or shall default in the observance or performance of any
covenant or agreement contained in Paragraphs 11(j), 11(k), 12(i) or 12(m)
------------------------------ -----
above; or
13(d) The Company or any Guarantor shall fail to observe or
perform any other term or provision contained in this Agreement or in any other
Loan Document or Bond Document and such failure shall continue for ten (10)
days; or
13(e) The Company or any Subsidiary shall default in any payment
of principal of or interest on any Indebtedness, which Indebtedness is in an
aggregate amount in excess of $1,000,000.00 or any other event shall occur, the
effect of which is to permit such Indebtedness then to be declared or otherwise
to become due prior to its stated maturity; or
13(f) (1) The Company or any of its Subsidiaries, shall commence
any case, proceeding or other action (i) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief entered
with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
34
seeking reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts, or
(ii) seeking appointment of a receiver, trustee, custodian or other similar
official for it or for all or any substantial part of its assets, or the Company
or any of its Subsidiaries shall make a general assignment for the benefit of
its creditors; or (2) there shall be commenced against the Company or any of its
Subsidiaries, any case, proceeding or other action of a nature referred to in
clause (1) above which (i) results in the entry of an order for relief or any
such adjudication or appointment, or (ii) remains undismissed, undischarged or
unbonded for a period of forty-five (45) days; or (3) there shall be commenced
against the Company or any of its Subsidiaries, any case, proceeding or other
action seeking issuance of a warrant of attachment, execution, distraint or
similar process against all or substantially all of its assets which results in
the entry of an order for any such relief which shall not have been vacated,
discharged, stayed, satisfied or bonded pending appeal within sixty (60) days
from the entry thereof; or (4) the Company or any of its Subsidiaries, shall
take any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in (other than in connection with a final settlement), any of the
acts set forth in clause (1), (2) or (3) above; or (5) the Company or any of its
Subsidiaries, shall generally not, or shall be unable to, or shall admit in
writing its inability to pay its debts as they become due; or
13(g) (1) Any Person shall engage in any "prohibited
transaction" (as defined in Section 406 of ERISA or Section 4975 of the Code)
involving any Plan, (2) any "accumulated funding deficiency" (as defined in
Section 302 of ERISA), whether or nor waived, shall exist with respect to any
Plan, (3) a Reportable Event shall occur with respect to, or proceedings shall
commence to have a trustee appointed, or a trustee shall be appointed, to
administer or to terminate, any Single Employer Plan, which Reportable Event or
institution of proceedings is, in the reasonable opinion of the Agent, likely to
result in the termination of such Plan for purposes of Title IV of ERISA, and,
in the case of a Reportable Event, the continuance of such Reportable Event
unremedied for ten days after notice of such Reportable Event pursuant to
Section 4043(a), (c) or (d) of ERISA is given or the continuance of such
proceedings for ten days after commencement thereof, as the case may be, (4) any
Single Employer Plan shall terminate for purposes of Title IV of ERISA, (5) any
withdrawal liability to a Multiemployer Plan shall be incurred by the Company or
(6) any other event or condition shall occur or exist; and in each case in
clauses (1) through (6) above, such event or condition, together with all other
such events or conditions, if any, is likely to subject the Company or any of
its Subsidiaries to any tax, penalty or other liabilities in the aggregate
material in relation to the business, operations, property or financial or other
condition of the Company or the Company and its Subsidiaries taken as a whole;
or
13(h) One or more judgments or decrees shall be entered against
the Company or any of its Subsidiaries and such judgments or decrees (other than
decrees involving amounts in the aggregate of less than $100,000.00) shall not
have been vacated, discharged, stayed, satisfied or bonded pending appeal within
thirty (30) days from the entry thereof or in any event later than five days
prior to the date of any proposed sale thereunder; or
13(i) The Company shall voluntarily suspend the transaction of
business for more than five days in any calendar year; or
35
13(j) Any Guarantor shall fail to observe or perform any
provision of its Guaranty or shall attempt to rescind or revoke its Guaranty,
with respect to future transactions or otherwise; or
13(k) Subject only to Permitted Liens, the Agent shall fail to
have a fully perfected first priority security interest in the Collateral, for
the benefit of the Bank L/C Issuing Bank, the Standard L/C Issuing Bank, and the
Lenders; or
13(l) An Event of Taxability shall occur or, without the prior
written consent of the Agent, the Bonds shall be called or be subject to being
called for redemption or purchase in lieu of redemption prior to their scheduled
maturity; or
13(m) An Event of Default (as defined in the Indenture, the Loan
Agreement or any other Bond Document) shall occur;
THEN, automatically upon the occurrence of an Event of Default under Paragraph
---------
13(f) above, at the option of any Lender upon the occurrence of an Event of
-----
Default under Paragraph 13(a) above and, in all other cases, at the option of
---------------
the Required Lenders without demand upon or presentment to the Company, all of
which are hereby expressly waived:
(i) Acceleration of Bond Letter of Credit Obligations. The
-------------------------------------------------
aggregate contingent liability of the Company to reimburse future Bond L/C
Drawings with respect to the Bond Letter of Credit and all other Bond L/C
Obligations shall become immediately due and payable. All amounts paid by the
Company on account of the aggregate contingent liability of the Company under
Outstanding Bond Letter of Credit shall be held by the Agent as collateral
security for the benefit of the Bond L/C Issuing Bank and the Lenders until the
Bond Letter of Credit is no longer Outstanding and all unrepaid Bond L/C
Drawings and other Bond L/C Obligations have been paid in full with interest
thereon as provided herein, the Company hereby being automatically deemed to
have granted to the Agent, the Bond L/C Issuing Bank and the Lenders a first
priority, perfected security interest in all such monies and to have authorized
the Agent to debit such monies in satisfaction of the obligation of the Company
to repay Bond L/C Drawings; provided, that, nothing contained herein shall in
any manner or to any extent affect the liability of the Company with respect to
Bond L/C Drawings and other Bond L/C Obligations in the event for whatever
reason the Agent does not so debit such monies on account thereof.
(ii) Exercise of Remedies under Indenture. The Agent, the Bond
------------------------------------
L/C Issuing Bank and the Lenders shall have those rights, powers and remedies
provided under the Indenture, including, without limitation, the right to notify
the Trustee that an Event of Default has occurred under this Agreement and that
the Bonds shall be redeemed or called for purchase in lieu of redemption.
(iii) Termination of Commitment. The agreement of the Lenders
-------------------------
to extend credit to or for the account of the Company pursuant to this Agreement
shall terminate.
(iv) Loans. The Loans shall be immediately due and payable.
------
(v) Standard Letters of Credit. The aggregate contingent
---------------------------
liability of the Company to reimburse future Standard L/C Drawings with respect
to the Standard Letters of
36
Credit and all other Standard L/C Obligations shall become immediately due and
payable. All amounts paid by the Company on account of the aggregate contingent
liability of the Company under Outstanding Standard Letter of Credit shall be
held by the Agent as collateral security for the benefit of the Standard L/C
Issuing Bank and the Lenders until the Standard Letter of Credit are no longer
Outstanding and all unrepaid Standard L/C Drawings and other Standard L/C
Obligations have been paid in full with interest thereon as provided herein, the
Company hereby being automatically deemed to have granted to the Agent, the
Standard L/C Issuing Bank and the Lenders a first priority, perfected security
interest in all such monies and to have authorized the Agent to debit such
monies in satisfaction of the obligation of the Company to repay Standard L/C
Drawings; provided, that, nothing contained herein shall in any manner or to any
extent affect the liability of the Company with respect to Standard L/C Drawings
and other Standard L/C Obligations in the event for whatever reason the Agent
does not so debit such monies on account thereof.
(vi) Rights under Documents. The Agent, the Bond
----------------------
L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders may exercise
such other rights and remedies as are available to them under this Agreement,
the Loan Documents and the Bond Documents. In such instance, the Company hereby
agrees to take such actions and execute such instruments, consistent with such
rights and remedies as are afforded it by law, as shall be deemed necessary or
desirable, in the Lenders' sole discretion, to effectuate the exercise of such
rights and remedies.
(vii) General. The Agent and the Lenders may
-------
exercise such other rights and remedies as are available to them under law or
equity or any other agreement.
14. The Agent, Bond L/C Issuing Bank and Standard L/C
-------------------------------------------------
Issuing Bank.
------------
14(a) Appointment. Each Lender hereby irrevocably
-----------
designates and appoints the Agent and the Co-Agent as the agents of such Lender
under the Loan Documents and each such Lender hereby irrevocably authorizes the
Agent and the Co-Agent, as the agent for such Lender, to take such action on its
behalf under the provisions of the Loan Documents and to exercise such powers
and perform such duties as are expressly delegated to the Agent or Co-Agent by
the terms of the Loan Documents, together with such other powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
elsewhere in the Loan Documents, either the Agent nor the Co-Agent shall have
any duties or responsibilities, except those expressly set forth herein or
therein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into the Loan Documents or otherwise exist against the Agent or the Co-
Agent. The Company shall pay to the Agent an agency fee in such amount and at
such times as the Agent and the Company may from time to time agree in writing.
14(b) Delegation of Duties. Each of the Agent,
--------------------
the Standard L/C Issuing Bank and the Bond L/C Issuing Bank may execute any of
its duties under the Loan Documents by or through agents or attorneys-in-fact
and shall be entitled to advice of counsel concerning all matters pertaining to
such duties. Neither the Agent, Co-Agent the Standard L/C Issuing Bank nor the
Bond L/C Issuing Bank shall be responsible for the negligence or misconduct of
any agents or attorneys-in-fact selected by it with reasonable care.
37
14(c) Exculpatory Provisions. Neither the Agent,
----------------------
the Co-Agent, the Standard L/C Issuing Bank, the Bond L/C Issuing Bank nor any
of their respective officers, directors, employees, agents, attorneys-in-fact or
affiliates shall be (1) liable for any action lawfully taken or omitted to be
taken by it or such Person under or in connection with the Loan Documents
(except for its or such Person's own gross negligence or willful misconduct), or
(2) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by the Company or any officer
thereof contained in the Loan Documents or in any certificate, report, statement
or other document referred to or provided for in, or received by the Agent, the
Co-Agent, the Bond L/C Issuing Bank or the Standard L/C Issuing Bank under or in
connection with the Loan Documents or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of the Loan Documents or for any
failure of the Company to perform its obligations hereunder. Neither the Agent,
the Co-Agent, the Bond L/C Issuing Bank nor the Standard L/C Issuing Bank shall
be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, the Loan Documents or to inspect the properties, books or records of the
Company.
14(d) Reliance by Agent, Co-Agent, Bond L/C
-------------------------------------
Issuing Bank and Standard L/C Issuing Bank. Each of the Agent, the Co-Agent,
------------------------------------------
the Bond L/C Issuing Bank and the Standard L/C Issuing Bank shall be entitled to
rely, and shall be fully protected in relying, upon any note, writing,
resolution, notice, consent, certification, affidavit, letter, cablegram,
telegram, telecopy, telex or teletype message, statement, order or other
document or conversation reasonably believed by it to be genuine and correct and
to have been signed, sent or made by the proper Person or Persons and upon
advice and statements of legal counsel (including, without limitation, counsel
to the Company), independent accountants and other experts selected by the
Agent, the Co-Agent, the Bond L/C Issuing Bank and the Standard L/C Issuing
Bank. Each of the Agent, the Bond L/C Issuing Bank, and the Standard L/C Issuing
Bank may deem and treat the payee of any note as the owner thereof for all
purposes. As to the Lenders: (1) each of the Agent, the Co-Agent, the Bond L/C
Issuing Bank and the Standard L/C Issuing Bank shall be fully justified in
failing or refusing to take any action under the Loan Documents unless it shall
first receive such advice or concurrence of the Required Lenders or all of the
Lenders, as appropriate, or it shall first be indemnified to its satisfaction by
the Lenders ratably in accordance with their respective Percentage Shares
against any and all liability and expense which may be incurred by it by reason
of taking or continuing to take any action (except for liabilities and expenses
resulting from the Agent's gross negligence or willful misconduct), and (2) each
of the Agent, the Co-Agent, the Bond L/C Issuing Bank and the Standard L/C
Issuing Bank shall in all cases be fully protected in acting, or in refraining
from acting, under the Loan Documents in accordance with a request of the
Required Lenders or all of the Lenders, as appropriate, and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the
Lenders.
14(e) Notice of Default. Neither the Agent, the
-----------------
Co-Agent, the Bond L/C Issuing Bank nor the Standard L/C Issuing Bank shall be
deemed to have knowledge or notice of the occurrence of any Potential Default or
Event of Default hereunder unless such Person has received notice from a Lender
or the Company referring to the Loan Documents, describing such Potential
Default or Event of Default and stating that such notice is a "notice of
default." In the event that the Agent, the Co-Agent, the Bond L/C Issuing Bank
or the Standard L/C Issuing Bank receives such a notice, such Person shall give
notice thereof to the Lenders. The Agent
38
shall take such action with respect to such Potential Default or Event of
Default as shall be reasonably directed by the Required Lenders provided that
such action is consistent with the provisions of this Agreement; provided that,
unless and until the Agent shall have received such directions, the Agent may
(but shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Potential Default or Event of Default as it shall
deem advisable in the best interest of the Lenders.
14(f) Non-Reliance. Each Lender expressly
------------
acknowledges that neither the Agent, the Co-Agent, the Bond L/C Issuing Bank,
the Standard L/C Issuing Bank nor any of their respective officers, directors,
employees, agents, attorneys-in-fact or affiliates has made any representations
or warranties to it and that no act by the Agent, the Co-Agent, the Bond L/C
Issuing Bank or the Standard L/C Issuing Bank hereinafter taken, including any
review of the affairs of the Company, shall be deemed to constitute any
representation or warranty by the Agent, the Co-Agent, the Bond L/C Issuing
Bank, or the Standard L/C Issuing Bank to any Lender. Each Lender represents to
the Agent, the Co-Agent, the Bond L/C Issuing Bank and the Standard L/C Issuing
Bank that it has, independently and without reliance upon the Agent, the Co-
Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of the
Company and made its own decision to enter into this Agreement. Each Lender also
represents that it will, independently and without reliance upon the Agent, the
Co-Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank or any other
Lender, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit analysis, appraisals and decisions
in taking or not taking action under this Agreement, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Company. Except for notices, reports and other documents expressly required to
be furnished to the Lenders by the Agent, the Co-Agent, the Bond L/C Issuing
Bank, or the Standard L/C Issuing Bank hereunder, neither the Agent, the Bond
L/C Issuing Bank or the Standard L/C Issuing Bank shall have any duty or
responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, financial and other condition or
creditworthiness of the Company which may come into the possession of the Agent,
the Co-Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank or any of
their respective officers, directors, employees, agents, attorneys-in-fact or
affiliates.
14(g) Indemnification. The Lenders agree to
---------------
indemnify each of the Agent, the Co-Agent, the Bond L/C Issuing Bank, and the
Standard L/C Issuing Bank acting in their respective capacities as such (to the
extent not reimbursed by the Company and without limiting the obligation of the
Company to do so), ratably according to the respective amounts of their
Percentage Shares, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever which may at any time (including without
limitation at any time following the payment of the Bond L/C Obligations) be
imposed on, incurred by or asserted against the Agent, the Co-Agent, the Bond
L/C Issuing Bank or the Standard L/C Issuing Bank in any way relating to or
arising out of the Loan Documents or any documents contemplated by or referred
to herein or the transactions contemplated hereby or any action taken or omitted
by the Agent, the Co-Agent, the Bond L/C Issuing Bank or the Standard L/C
Issuing Bank under or in connection with any of the
39
foregoing; provided that no Lender shall be liable for the payment of any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the Agent's,
the Co-Agent's, the Bond L/C Issuing Bank's, or the Standard L/C Issuing Bank's
gross negligence or willful misconduct. The agreements in this subsection shall
survive the payment of the Obligations.
14(h) Individual Capacity. Each of the Agent,
-------------------
the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and their respective
affiliates may make revolving loans to, accept deposits from and generally
engage in any kind of business with the Company as though the Agent were not the
Agent hereunder, the Bond L/C Issuing Bank were not the Bond L/C Issuing Bank
hereunder, and the Standard L/C Issuing Bank were not the Standard L/C Issuing
Bank hereunder. With respect to such revolving loans made or renewed by them,
each of the Agent, the Bond L/C Issuing Bank, and the Standard L/C Issuing Bank
shall have the same rights and powers under the Loan Documents as any Lender and
may exercise the same as though it were not the Agent, the Co-Agent, the Bond
L/C Issuing Bank, or the Standard L/C Issuing Bank and the terms "Lender" and
"Lenders" shall include the Agent, the Co-Agent, the Bond L/C Issuing Bank and
the Standard L/C Issuing Bank in their individual capacities.
14(i) Successor Agent or Co-Agent. The Agent or
---------------------------
Co-Agent may resign as Agent or Co-Agent under the Loan Documents upon sixty
(60) days' notice to the Lenders and agrees that it will so resign in the event
it ceases to hold any Percentage Share of the Obligations. The Agent Co-Agent
may be removed from such capacity in the event the Lenders (other than the Agent
or Co-Agent, as the case may be) shall determine in their reasonable business
judgment that the Agent or Co-Agent has consistently failed to perform the
obligations of the Agent or Co-Agent hereunder. If the Agent or Co-Agent shall
resign or be removed as provided herein, then the Lenders (other than the Agent
or the Co-Agent, as the case may be) shall appoint from among the Lenders a
successor agent or, if such Lenders are unable to agree on the appointment of a
successor agent, the Agent or Co-Agent, as the case may be, shall appoint a
successor agent for the Lenders (which successor agent shall, in either case and
assuming that there does not exist a Potential Default or Event of Default, be
reasonably acceptable to the Company), whereupon such successor agent shall
succeed to the rights, powers and duties of the Agent or Co-Agent, and the term
"Agent" or "Co-Agent" shall mean such successor agent effective upon its
appointment, and the former Agent's or Co-Agent's rights, powers and duties as
Agent or Co-Agent shall be terminated, without any other or further act or deed
on the part of such former Agent or Co-Agent or any of the parties to this
Agreement or any of the Loan Documents or successors thereto. After any retiring
Agent's or Co-Agent's resignation hereunder as Agent or Co-Agent, the provisions
of this Paragraph 14 shall inure to its benefit as to any actions taken or
------------
omitted to be taken by it while it was Agent under the Loan Documents.
14(j) Actions by Bond L/C Issuing Bank. Promptly
--------------------------------
upon receipt or delivery, the Bond L/C Issuing Bank agrees to deliver to the
Agent all material notices, communications and other documents received or
delivered by the Bond L/C Issuing Bank pursuant to the Indenture in its capacity
as the "Bank" as defined therein. Except in respect of the Bond Letter of Credit
or as otherwise deemed necessary by the Bond L/C Issuing Bank (and not
disadvantageous to the Agent and the Lenders), the Bond L/C Issuing Bank agrees
not to grant any consents, to give any notices or to take any other actions
under the Indenture in its
40
capacity as the "Bank" as defined therein without the prior consent of the
Agent. The Bond L/C Issuing Bank hereby authorizes the Agent to act on behalf of
the Bond L/C Issuing Bank in giving consents and notices on behalf of the Bond
L/C Issuing Bank under the Bond Documents and further authorizes the Trustee and
Issuer to rely on such consents and notices as if they were given by the Bond
L/C Issuing Bank.
15. Miscellaneous Provisions.
------------------------
15(a) No Assignment. The Company may not assign
-------------
its rights or obligations under this Agreement without the prior written consent
of one hundred percent (100%) of the Agent, the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank and the Lenders. Subject to the foregoing, all
provisions contained in this Agreement or any document or agreement referred to
herein or relating hereto shall inure to the benefit of the Agent, the Bond L/C
Issuing Bank, the Standard L/C Issuing Bank and each Lender, its successors and
assigns, and shall be binding upon the Company, its successors and assigns.
15(b) Amendment.
---------
(1) Except as otherwise provided in this
Agreement, this Agreement may be amended or terms or provisions hereof
waived only in a writing signed by the Required Lenders, the Agent and
the Company.
(2) This Agreement may not be amended or
waived to do the following without the consent of the Agent and all of
the Lenders: (1) reduce the rate of interest or fees on, or modify the
required amount or due date for, any Loan, Bond L/C Drawing, Standard
L/C Drawing, or any other Obligations, (2) extend, amend or replace the
Bond Letter of Credit or extend the Revolving Loan Maturity Date, (3)
modify any Lender's Percentage Share, (4) modify any provision of the
Loan Documents requiring one hundred percent (100%) of the Lenders to
act, (5) modify the definition of "Required Lenders," (6) release any
Subsidiary from its obligations under its Guaranty or release any
collateral at any time held for the Obligations, (7) release all or
substantially all of the Collateral (but nothing herein shall prevent
the Agent from releasing any Lien on Collateral that is transferred in
accordance with the terms of this Agreement or from reconveying any
Lien conveyed pursuant to the United States Assignment of Claims Act)
or (8) amend this Paragraph 15(b).
---------------
(3) No provision of this Agreement
governing the rights or obligations of the Agent, the Bond L/C Issuing
Bank or the Standard L/C Issuing Bank shall be amended or waived
without the consent of the Agent, the Bond L/C Issuing Bank or the
Standard L/C Issuing Bank, respectively.
(4) It is expressly agreed and understood
that the failure by the Required Lenders to elect to accelerate the
Loans or the contingent liability of the Company with respect to the
Outstanding Bond Letter of Credit or Outstanding Standard Letter of
Credit or to accelerate other Obligations hereunder and/or to
participate in the extension or renewal of the Bond Letter of Credit or
Standard Letter of Credit shall not constitute an amendment or waiver
of any term or provision of this Agreement.
41
15(c) Cumulative Rights; No Waiver. The rights,
----------------------------
powers and remedies of the Agent, the Bond L/C Issuing Bank, the Standard L/C
Issuing Bank and the Lenders hereunder are cumulative and in addition to all
rights, power and remedies provided under any and all agreements between the
Company and any of such Persons relating hereto, at law, in equity or otherwise.
Any delay or failure by the Agent, the Bond L/C Issuing Bank, the Standard L/C
Issuing Bank or the Lenders to exercise any right, power or remedy shall not
constitute a waiver thereof by such Persons, and no single or partial exercise
by any of such Persons of any right, power or remedy shall preclude other or
further exercise thereof or any exercise of any other rights, powers or
remedies.
15(d) Entire Agreement. This Agreement and the
----------------
documents and agreements referred to herein embody the entire agreement and
understanding between the parties hereto and supersede all prior agreements and
understandings relating to the subject matter hereof and thereof.
15(e) Survival. All representations, warranties,
--------
covenants and agreements herein contained on the part of the Company shall
survive the termination of this Agreement and shall be effective until the
Obligations are paid and performed in full or longer as expressly provided
herein.
15(f) Notices. All notices given by any party to
--------
the others shall be in writing unless otherwise provided for herein, delivered
by facsimile transmission, by personal delivery or by overnight courier,
addressed to the party as set forth on Schedule 1 attached hereto, as such
----------
Schedule 1 may be amended from time to time. Any party may change the address to
----------
which notices are to be sent by notice of such change to each other party given
as provided herein. Such notices shall be effective on the date received.
15(g) Governing Law. This Agreement shall be
-------------
governed by and construed in accordance with the internal laws of the State of
California without giving effect to its choice of law rules.
15(h) Counterparts. This Agreement and the other
------------
Loan Documents may be executed in any number of counterparts, all of which
together shall constitute one agreement.
15(i) Sharing of Payments. If any Lender shall
-------------------
receive and retain any payment, whether by setoff, application of deposit
balance or security, or otherwise, in respect of the Loans or Obligations
arising out of the Bond Letter of Credit or Standard Letters of Credit in excess
of such Lender's Percentage Share thereof, then such Lender shall purchase from
the other Lenders for cash and at face value and without recourse, such
participation in such Obligations held by them as shall be necessary to cause
such excess payment to be shared ratably as aforesaid with each of them;
provided, that if such excess payment or part thereof is thereafter recovered
from such purchasing Lender, the related purchases from the other Lenders shall
be rescinded ratably and the purchase price restored as to the portion of such
excess payment so recovered, but without interest.
15(j) Consent to Jurisdiction. ANY LEGAL ACTION OR
-----------------------
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
42
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF CALIFORNIA OR OF THE
UNITED STATES FOR THE CENTRAL DISTRICT OF CALIFORNIA, AND BY EXECUTION AND
DELIVERY OF THIS AGREEMENT, EACH OF THE COMPANY, THE AGENT, THE BOND L/C ISSUING
BANK, THE STANDARD L/C ISSUING BANK AND THE LENDERS CONSENTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH
OF THE COMPANY, THE AGENT, THE BOND L/C ISSUING BANK, THE STANDARD L/C ISSUING
BANK AND THE LENDERS IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION
TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT
--------------------
MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. THE
COMPANY, THE AGENT, THE BOND L/C ISSUING BANK, THE STANDARD L/C ISSUING BANK AND
THE LENDERS EACH WAIVE PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY CALIFORNIA LAW.
15(k) Waiver of Jury Trial. THE COMPANY, THE
--------------------
LENDERS, THE BOND L/C ISSUING BANK, THE STANDARD L/C ISSUING BANK AND THE AGENT
EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER LOAN
DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION,
PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST
ANY OTHER PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER
WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE COMPANY, THE
LENDERS, THE BOND L/C ISSUING BANK, THE STANDARD L/C ISSUING BANK AND THE AGENT
EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT
TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE
THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS
SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE
OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE
OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY
TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS.
15(l) Indemnity. Whether or not the transactions
---------
contemplated hereby are consummated, the Company shall indemnify and hold the
Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and each Lender
and each of their respective officers, directors, employees, counsel, agents and
attorneys-in-fact (each, an "Indemnified Person") harmless from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, charges, expenses and disbursements (including
reasonable attorney's fees and expenses, including the documented cost of
internal counsel) of any kind or nature whatsoever which may at any time
(including at any time following repayment of the Obligations and the
termination, resignation or replacement of the Agent or replacement of the Bond
L/C Issuing
43
Bank, the Standard L/C Issuing Bank or any Lender) be imposed on, incurred by or
asserted against any such Person in any way relating to or arising out of this
Agreement or any document contemplated by or referred to herein, or the
transactions contemplated hereby, or any action taken or omitted by any such
Person under or in connection with any of the foregoing, including with respect
to any investigation, litigation or proceeding (including any insolvency
proceeding or appellate proceeding) related to or arising out of this Agreement
or the issuance, renewal or modification of the Bond Letter of Credit or any
Standard Letter of Credit or the making of any Loan or the use of the proceeds
of any Bond L/C Drawing, any Standard Letter of Credit or Loan whether or not
any Indemnified Person is a party thereto (all the foregoing, collectively, the
"Indemnified Liabilities"); provided, however, that the Company shall have no
obligation hereunder to any Indemnified Person with respect to Indemnified
Liabilities resulting from the gross negligence or willful misconduct of such
Indemnified Person. The agreements in this Paragraph 15(l) shall survive payment
---------------
of all other Bond L/C Obligations.
15(m) Marshalling; Payments Set Aside. Neither the
-------------------------------
Agent nor the Lenders shall be under any obligation to marshal any assets in
favor of the Company or any other Person or against or in payment of any or all
of the Obligations. To the extent that the Company makes a payment or payments
to the Agent or the Lenders (through the Agent), or the Agent on behalf of the
Lenders enforces their Liens or exercise their rights of set-off, and such
payment or payments or the proceeds of such enforcement or set-off or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by the
Agent in its discretion) to be repaid to a trustee, receiver or any other party
in connection with any insolvency proceeding, or otherwise, then (1) to the
extent of such recovery the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or set-off had not occurred, and
(2) each Lender severally agrees to pay to the Agent upon demand its ratable
share of the total amount so recovered from or repaid by the Agent.
15(n) Set-off. In addition to any rights and
-------
remedies of the Lenders provided by law, in this Agreement and the other Loan
Documents, if an Event of Default exists, each Lender is authorized at any time
and from time to time, without prior notice to the Company (but only with prior
written notice to and the written consent of the Agent at any time at which the
Obligations are secured by any interest in real property), any such notice being
waived by the Company to the fullest extent permitted by law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final) at any time held by, and other indebtedness at any time owing to, such
Lender to or for the credit or the account of the Company against any and all
Bond L/C Obligations owing to such Lender, now or hereafter existing,
irrespective of whether or not the Agent or such Lender shall have made demand
under this Agreement or any Loan Document and although such Obligations may be
contingent or unmatured. Each Lender agrees promptly to notify the Company and
the Agent after any such set-off and application made by such Lender; provided,
however, that the failure to give such notice shall not affect the validity of
such set-off and application.
15(o) Severability. The illegality or
------------
unenforceability of any provision of this Agreement or any other Loan Document
or any instrument or agreement required hereunder
44
or thereunder shall not in any way affect or impair the legality or
enforceability of the remaining provisions hereof or thereof.
15(p) No Third Parties Benefited. This Agreement
--------------------------
and the other Loan Documents are made and entered into for the sole protection
and legal benefit of the Company, the Lenders, the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank and the Agent, and their permitted successors and
assigns, and no other Person shall be a direct or indirect legal beneficiary of,
or have any direct or indirect cause of action or claim in connection with, this
Agreement or any of the other Loan Documents. Neither the Agent, the Bond L/C
Issuing Bank, the Standard L/C Issuing Bank nor any Lender shall have any
obligation to any Person not a party to this Agreement or other Loan Documents
other than, in the case of the Bond L/C Issuing Bank, to the Trustee or other
beneficiary under the Bond Letter of Credit or, in the case of the Standard L/C
Issuing Bank, to the beneficiary of the relevant Letter of Credit.
15(q) Assignments and Participations.
------------------------------
(1) The Agent may and any Lender, with the consent of
the Agent may, in the ordinary course of its business and in accordance
with applicable law, at any time assign to one or more Eligible
Assignees all or any part of its rights and obligations under the Loan
Documents. Such assignment shall be in such form as may be agreed to by
the parties thereto. The consent of the Company, which shall not be
unreasonably withheld, shall be required prior to an assignment
becoming effective with respect to an Eligible Assignee which is not a
Lender or any Affiliate thereof; provided, however, that if a Potential
Default or Event of Default has occurred and is continuing, the consent
of the Company shall not be required. Each such assignment with respect
to an Eligible Assignee which is not a Lender or any Affiliate thereof,
shall (unless each of the Company and the Agent otherwise consents) be
in an amount not less than the lesser of (i) $5,000,000 (treating an
assignment to any fund that invests in bank loans and an assignment to
any other fund that invests in bank loans and is managed by the same
investment advisor of such fund or by an affiliate of such investment
advisor as a single assignment for purposes of the minimum amount) or
(ii) the remaining amount of the assigning Lender's Revolving Loans.
(2) Upon (i) delivery to the Agent of an assignment,
together with any consents required by Paragraph 15(q)(1) and (ii)
------------------
except in the case of an assignment by a Lender to an assignee that is
already a Lender or an Affiliate of such assigning Lender, payment of a
$3,000 fee to the Agent for processing such assignment (unless such fee
is waived by the Agent), such assignment shall become effective on the
effective date specified in such assignment. The assignment shall
constitute a representation by the Eligible Assignee to the effect that
none of the consideration used to make the purchase of the Revolving
Loans under the applicable assignment agreement constitutes "plan
assets" as defined under ERISA and that the rights and interests of the
Eligible Assignee in and under the Loan Documents will not be "plan
assets" under ERISA or, if composed of "plan assets" will not result in
a "prohibited transaction" or Reportable Event. On and after the
effective date of such assignment, such Eligible Assignee shall for all
purposes be a Lender party to this Agreement and any other Loan
Document executed by or on behalf of the Lenders and shall have all the
rights and obligations of a Lender under the
45
Loan Documents, to the same extent as if it were an original party
hereto, and no further consent or action by the Company, the Lenders or
the Agent shall be required to release the transferor Lender with
respect to the percentage of the Revolving Loans assigned to such
Eligible Assignee. Upon the consummation of any assignment to an
Eligible Assignee pursuant to this Paragraph 15(q), the transferor
---------------
Lender, the Agent and the Company shall, if the transferor Lender or
the Eligible Assignee desires that its Revolving Loans be evidenced by
notes, make appropriate arrangements so that new notes or, as
appropriate, replacement notes are issued to such transferor Lender and
new notes or, as appropriate, replacement notes, are issued to such
Eligible Assignee, in each case in principal amounts reflecting their
respective Revolving Loans, as adjusted pursuant to such assignment.
(3) Any Lender may, in the ordinary course of its business and
in accordance with applicable law, at any time sell to one or more
banks or other entities ("Participants") participating interests in any
portion of the Revolving Loans of such Lender, any note held by such
Lender, or any other interest of such Lender under the Loan Documents;
provided that, so long as no Potential Default or Event of Default has
occurred hereunder, any Lender selling a participation (other than to
an Affiliate) shall give prior written notice to the Company of such
sale. In the event of any such sale by a Lender of participating
interests to a Participant, such Lender's obligations under the Loan
Documents shall remain unchanged, such Lender shall remain solely
responsible to the other parties hereto for the performance of such
obligations, such Lender shall remain the owner of its Revolving Loans
and the holder of any note issued to it in evidence thereof for all
purposes under the Loan Documents, all amounts payable by the Company
under this Agreement shall be determined as if such Lender had not sold
such participating interests, and the Company and the Agent shall
continue to deal solely and directly with such Lender in connection
with such Lender's rights and obligations under the Loan Documents.
Each Lender shall retain the sole right to approve, without the consent
of any Participant, any amendment, modification or waiver of any
provision of the Loan Documents other than any amendment, modification
or waiver with respect to any Revolving Loan in which such Participant
has an interest which forgives principal, interest, fees or any
Obligations or reduces the interest rate or fees payable with respect
to any such Revolving Loans, extends the Revolving Loan Maturity Date,
postpones any date fixed for any regularly-scheduled payment of
principal of or interest on any Loan in which such Participant has an
interest, or any regularly-scheduled payment of fees on any such
Revolving Loan or releases all or substantially all of the Collateral.
except upon final payment in full of all Obligations secured thereby.
The Company agrees that each Participant shall be deemed to have the
rights of setoff provided in this Agreement in respect of its
participating interest in amounts owing under the Loan Documents to the
same extent as if the amount of its participating interest were owing
directly to it as a Lender under the Loan Documents, provided that each
Lender shall retain the right of setoff provided in this Agreement with
respect to the amount of participating interests sold to each
Participant. The Lenders agree to share with each Participant, and each
Participant, by exercising the right of setoff provided in this
Agreement, agrees to share with each Lender, any amount received
pursuant to the exercise of its right of setoff, such amounts to be
shared in accordance with this Agreement as if each Participant were a
Lender.
46
(4) The Company authorizes each Lender to disclose to any
Participant or Eligible Assignee or any other Person acquiring an
interest in the Loan Documents by operation of law and any prospective
Participant or Eligible Assignee any and all information in such
Lender's possession concerning the creditworthiness of the Company,
including without limitation any information contained in any reports;
provided that each Transferee and prospective Participant or Eligible
Assignee agrees to be bound by this Paragraph 15.
------------
(5) Notwithstanding any other provision in this Agreement, any
Lender may at any time create a security interest in, or pledge, all or
any portion of its rights under and interest in this Agreement in favor
of the Federal Reserve Bank in accordance with Regulation A of the FRB
or U.S. Treasury Regulation 31 CFR ss.203.14, and such Federal Reserve
Bank may enforce such pledge or security interest in any manner
permitted under applicable law.
15(r) Confidentiality. The Agent and each Lender
---------------
agrees to hold any confidential information which it may receive from the
Company pursuant to this Agreement in confidence, except for disclosure (i) to
its Affiliates and to other Lenders and their respective Affiliates, (ii) to
legal counsel, accountants, and other professional advisors to such Lender or to
a Transferee or proposed Transferee agreeing to be bound hereby, (iii) to
regulatory officials, (iv) to any Person as required by law, regulation, or
legal process, (v) to any Person in connection with any legal proceeding to
which such Lender is a party, provided that if practicable to do so, the Company
shall be given reasonable advance notice thereof, (vi) to such Lender's direct
or indirect contractual counterparties in swap agreements or to legal counsel,
accountants and other professional advisors to such counterparties.
15(s) Statutory Notice. The Agent and each Lender
----------------
hereby notifies the Company that:
ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO
FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER
WASHINGTON LAW.
16. Definitions. For purposes of this Agreement, the terms
-----------
set forth below shall have the following meanings:
"Affiliate" shall mean, as to any Person, any other Person
---------
directly or indirectly controlling, controlled by or under direct or indirect
common control with, such Person. "Control" as used herein means with respect to
any business entity the power to direct the management and policies of such
business entity.
"Agent" shall have the meaning given such term in the
-----
introductory paragraph hereof and shall include any successor to Sanwa as the
initial "Agent" hereunder.
"Agreement" shall mean this Agreement, as the same may be
---------
amended, extended or replaced from time to time.
47
"Approved Budget" shall mean a budget for construction of the
---------------
Project (as amended from time to time in accordance with this Agreement)
pursuant to the Construction Plans in form and detail satisfactory to the
Independent Engineer and the Agent, a copy of which has been delivered to the
Agent pursuant to Paragraph 9(a) above and shall include all change orders
--------------
reflected therein.
"Approved Construction Schedule" shall mean a schedule for
------------------------------
construction of the Project (as amended from time to time in accordance with
this Agreement) pursuant to the Construction Plans in accordance with the
Approved Budget in form and detail satisfactory to the Independent Engineer and
the Agent, a copy of which has been delivered to the Agent pursuant to Paragraph
---------
9(a) above.
----
"Base Rate" shall mean the higher of: (a) the annual rate of
---------
interest announced from time to time by Sanwa as its "reference rate" and (b)
one half of one percent (0.50%) above the Effective Federal Funds Rate.
"Base Rate Loan" shall mean a Loan bearing interest calculated
--------------
based on the Base Rate.
"Base Rate Spread" shall have the meaning set forth in
----------------
Appendix I hereto.
----------
"Bonds" shall have the meaning given such term in Recital A
----- ---------
above.
"Bond Documents" shall mean the Indenture, the Loan Agreement,
--------------
and each other document, agreement and instrument executed and delivered in
connection therewith.
"Bond Loan Documents" shall mean the Bond Letter of Credit
-------------------
and, to the extent governing the Bond Letter of Credit, this Agreement, the
Security Documents and any and all other documents, instruments and agreements
executed by the Company or any of the Guarantors in connection herewith or
therewith, as any of the same may be amended, extended or replaced from time to
time.
"Bond L/C Drawing" shall mean any drawing under the Bond
----------------
Letter of Credit.
"Bond L/C Issuing Bank" shall have the meaning set forth in
---------------------
the introductory paragraph hereof above.
"Bond L/C Obligations" shall mean any and all debts,
--------------------
obligations and liabilities of the Company to the Agent, the Bond L/C Issuing
Bank and the Lenders (whether now existing or hereafter arising, voluntary or
involuntary, whether or not jointly owed with others, direct or indirect,
absolute or contingent, liquidated or unliquidated, and whether or not from time
to time decreased or extinguished and later increased, created or incurred),
arising out of or related to the Bond Letters of Credit.
"Bond Letter of Credit" shall have the meaning set forth in
---------------------
Recital B above.
---------
"Bond Letter of Credit Fee Percentage" shall have the meaning
------------------------------------
set forth on Appendix I hereto.
----------
48
"Business Day" shall mean any day other than a Saturday, a
------------
Sunday or a day on which banks in San Francisco, California are authorized or
obligated to close their regular banking business.
"Capital Expenditures" shall mean, for any period, the
--------------------
aggregate of all expenditures by the Company and its Subsidiaries for the
acquisition or leasing of fixed or capital assets or additions to equipment
(including replacements, capitalized repairs and improvements during such
period) which should be capitalized under GAAP on a consolidated balance sheet
of the Company and its Subsidiaries less net proceeds from sales of fixed or
----
capital assets received by the Company or any of its Subsidiaries during such
period. For the purpose of this definition, the purchase price of equipment
which is purchased simultaneously with the trade-in of existing equipment owned
by the Company or any of its Subsidiaries or with insurance proceeds shall be
included in Capital Expenditures only to the extent of the gross amount of such
purchase price less the credit granted by the seller of such equipment for such
equipment being traded in at such time, or the amount of such proceeds, as the
case may be.
"Capital Lease Obligations" of a Person shall mean the amount
-------------------------
of the obligations of such Person under Capitalized Leases which would be shown
as a liability on a balance sheet of such Person prepared in accordance with
GAAP.
"Capitalized Lease" of a Person means any lease of property by
-----------------
such Person as lessee which would be capitalized on a balance sheet of such
Person prepared in accordance with GAAP.
"Cash Equivalent Investments" means:
---------------------------
(i) short-term obligations of, guaranteed by, or backed by
the full faith and credit of, the United States of America;
(ii) investments in commercial paper rated A-1 or better by
Standard & Poor's Ratings Services, a division of The XxXxxx-Xxxx
Companies, or any successor thereto, or P-1 or better from Xxxxx'x
Investors Service, Inc. or any successor thereto;
(iii) demand deposit accounts maintained in the ordinary
course of business, certificates of deposit issued by and time deposits
with commercial banks (whether domestic or foreign) having capital and
surplus in excess of $100,000,000;
(iv) fully collateralized repurchase agreements with a term
of not more than 30 days for securities described in clause (i) of this
definition and entered into with a financial institution satisfying the
criteria described in clause (iii) of this definition;
(v) investments in money market funds substantially all the
assets of which are comprised of securities of the types described in
clauses (i) through (iv) of this definition.
"Cash Proceeds" shall mean with respect to any Equity
-------------
Securities Issuance cash payments (including any cash received by way of
deferred payment pursuant to, or monetization of, a note receivable or
otherwise, but only as and when so received) received in respect thereof.
49
"Collateral" shall mean the collateral described in the
----------
Security Documents.
"Commonly Controlled Entity" of a Person shall mean a Person,
--------------------------
whether or not incorporated, which is under common control with such Person
within the meaning of Section 414(c) of the Internal Revenue Code.
"Compliance Certificate" shall mean a certificate conforming
----------------------
with the requirements of Paragraph 11(a)(3) above.
------------------
"Construction Manager" shall mean a manager acting on behalf
--------------------
of the Agent, the Bond L/C Issuing Bank, and the Lenders in connection with the
Project.
"Construction Plans" shall mean the plans and specifications
------------------
of the Company for the construction of the Project, which plans include one or
more fixed price contracts (as amended from time to time with the prior written
consent of the Agent) for the acquisition of equipment to be incorporated into
the Project, all as acceptable to the Agent and the Independent Engineer,
providing for insurance, bonding, and other matters acceptable to the
Independent Engineer and the Agent.
"Contact Office" shall mean the office of the Agent located at
--------------
0000 Xxxxxxxx, Xxxxxxx XX 00000 or such other office as the Agent may notify the
Company, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank, and the
Lenders from time to time in writing.
"Contingent Obligation" shall mean, with respect to the
---------------------
Company and its Subsidiaries, any obligation (except the endorsement in the
ordinary course of business of negotiable instruments for deposit or collection)
of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend
or other obligation of any other Person in any manner, whether directly or
indirectly, including (without limitation) obligations incurred through an
agreement, contingent or otherwise, by such Person (i) to purchase such
indebtedness or obligation or any property constituting security therefor; (ii)
to advance or supply funds (a) for the purchase or payment of such indebtedness
or obligation, or (b) to maintain any working capital or other balance sheet
condition or any income statement condition of any other Person or otherwise to
advance or make available funds for the purchase or payment of such indebtedness
or obligation; (iii) to lease properties or to purchase properties or services
primarily for the purpose of assuring the owner of such indebtedness or
obligation of the ability of any other Person to make payment of the
indebtedness or obligation; or (iv) otherwise to assure the owner of such
indebtedness or obligation against loss in respect thereof. In any computation
of the indebtedness or other liabilities of the obligor under any Contingent
Obligation, the indebtedness or other obligations that are the subject of such
Contingent Obligation shall be assumed to be direct obligations of such obligor.
"Contractual Obligation" as to any Person shall mean any
----------------------
provision of any security issued by such Person or of any agreement, instrument
or undertaking to which such Person is a party or by which it or any of its
property is bound.
"Current Assets" shall have the meaning given to such term by
--------------
GAAP.
50
"Current Liabilities" shall mean, as of any date of
-------------------
determination, the total liabilities of the Company and its Subsidiaries,
determined on a consolidated basis, which would be shown as current liabilities
on a balance sheet prepared in accordance with GAAP, plus the principal amount
of outstanding Revolving Loans.
"Current Ratio" shall mean, as of any date, the ratio,
-------------
determined on a consolidated basis for the Company and its Subsidiaries, of
Current Assets to Current Liabilities.
"CPLTD" shall mean, for any period, without duplication, for
-----
the Company and its Subsidiaries, on a consolidated basis, the sum of the
current portion of scheduled principal payments on Net Funded Debt.
"Debt" shall mean, with respect to the Company and its
----
Subsidiaries on a consolidated basis, without duplication, (i) its liabilities
for borrowed money; (ii) its liabilities for the deferred purchase price of
property acquired by such Person (excluding accounts payable arising in the
ordinary course of business but including, without limitation, all liabilities
created or arising under any conditional sale or other title retention agreement
with respect to any such property); (iii) its Capital Lease Obligations; (iv)
all liabilities for borrowed money secured by any Lien with respect to any
property owned by such Person (whether or not it has assumed or otherwise become
liable for such liabilities); and (v) any Contingent Obligation of such Person
with respect to liabilities of a type described in any of clauses (i) through
(iv) hereof. Debt of any Person shall include all obligations of such Person of
the character described in clauses (i) through (v) to the extent such Person
remains legally liable in respect thereof notwithstanding that any such
obligation is deemed to be extinguished under GAAP.
"Debt Service Ratio" shall mean, as of any date, the ratio of
------------------
(i) Net Profit After Tax plus Non-Cash Charges for the four fiscal quarters most
recently ended to (ii) CPLTD for such period.
"Disbursement Account" shall have the meaning set forth in
--------------------
Paragraph 11(m) above.
---------------
"EBITDA" shall mean, for any period, for the Company and its
------
Subsidiaries on a consolidated basis, determined in accordance with GAAP, (i)
gross revenues (including interest income) for such period minus (ii) expenses
deducted in determining net income for such period plus (iii) to the extent
deducted in determining net income for such period (a) provision for income
taxes, (b) interest expense, and (c) depreciation, amortization, and other non-
cash charges. Extraordinary items and gains or losses on (and proceeds from)
sales or dispositions of assets outside the ordinary course of business shall be
excluded in the calculation of EBITDA.
"Effective Date" shall mean the date on which all conditions
--------------
precedent set forth in Paragraph 9(a) above have been met to the satisfaction of
--------------
the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and the
Lenders.
"Effective Federal Funds Rate" shall mean on any date the rate
----------------------------
per annum equal to the weighted average of the rates on overnight federal funds
transactions with members of the Federal Reserve System arranged by federal
funds brokers, as published for such day (of if such day is not a Business Day,
for the next preceding Business Day) by the Federal Reserve Bank of
51
New York or, if such rate is not so published for any day that is a Business
Day, the average of the quotations for such day on such transactions received by
the Agent from three funds brokers of recognized standing selected by the Agent.
"Eligible Assignee" shall mean (i) a commercial bank organized
-----------------
under the laws of the United States, or any state thereof, and having a combined
capital and surplus of at least $100,000,000; (ii) a commercial bank organized
under the laws of any other country which is a member of the Organization for
Economic Cooperation and Development (the "OECD"), or a political subdivision of
any such country, and having a combined capital and surplus of at least
$100,000,000; provided that such bank is acting through a branch or agency
located in the United States; (iii) any Affiliate of a Lender; (iv) any other
entity which is an "accredited investor" (as defined in Regulation D under the
Securities Exchange Act of 1934, and regulations promulgated thereunder) which
extends credit or buys loans as one of its businesses, including insurance
companies, mutual funds and lease financing companies; or (v) any other entity
approved by the Company and the Administrative Agent; provided that neither the
Company nor any employee benefit plan subject to ERISA shall be an Eligible
Assignee.
"Equity Securities Issuance" shall mean the issuance by the
--------------------------
Company or any of its Subsidiaries of capital stock, including common and
preferred stock, limited liability company membership interests, partnership
interests or other similar equity interests, regardless of associated voting
rights, and Securities convertible into such capital stock, limited liability
company membership interests, partnership interests or other similar equity
interests.
"ERISA" shall mean the Employee Retirement Income Security Act
-----
of 1974, as the same may from time to time be supplemented or amended.
"Eurodollar Business Day" shall mean a Business Day upon which
-----------------------
commercial banks in London, England are open for domestic and international
business.
"Eurodollar Rate" shall mean, with respect to any LIBOR Loan
---------------
for the Interest Period applicable to such LIBOR Loan, the rate for the
applicable Interest Period shown on Page 1701 of the Xxxxxx-Xxxxxx screen for
the corresponding deposits of U.S. dollars three Eurodollar Business Days prior
to the first day of such Interest Period or such rate as is otherwise determined
by the Agent with reference to the British Banker's Association, or, if such
rates are not available, the arithmetic average as determined by the Agent of
the rates at which deposits in immediately available U.S. dollars in an amount
equal to the amount of such LIBOR Loan having a maturity approximately equal to
such Interest Period are offered to three reference banks to be selected by the
Agent in the London interbank market, at approximately 11:00 a.m. (London time)
three Eurodollar Business Days prior to the first day of such Interest Period.
"Eurodollar Reserve Percentage" shall mean with respect to an
-----------------------------
Interest Period for a LIBOR Loan, the maximum aggregate reserve requirement
(including all basic, supplemental, marginal and other reserves and taking into
account any transitional adjustments) which is imposed under Regulation D on
eurocurrency liabilities.
"Event of Default" shall have the meaning given such term in
----------------
Paragraph 13 above.
------------
52
"Event of Taxability" shall have the meaning set forth in the
-------------------
Indenture.
"Excess Cash Flow" shall mean, for any fiscal year of the Company and
----------------
its Subsidiaries beginning with the year 2000, determined on a consolidated
basis, (i) net profit plus (ii) depreciation deducted in determining such net
profit minus (iii) the principal amount of liabilities for borrowed money and
Capital Lease Obligations paid during such period minus (iv) Permitted MMT
Payments made during such period minus (v) capital expenditures not financed
with the proceeds of Bonds or Loans made pursuant to this Agreement.
"Excess Cash Account" shall have the meaning given such term in
-------------------
Paragraph 11(m) above.
---------------
"Funded Debt" shall mean, with respect to the Company and its
-----------
Subsidiaries on a consolidated basis, all Debt which by its terms or by the
terms of any instrument or agreement relating thereto matures, or which is
otherwise payable or unpaid, one year or more from, or is indirectly or
indirectly renewable or extendible at the option of the obligor in respect
thereof to a date one year or more (including, without limitation, an option of
such obligor under a revolving credit or similar agreement obligating the lender
or lenders to extend credit over a period of one year or more) from, the date of
the creation thereof, provided that Funded Debt shall include, as at any date of
determination, current maturities of Funded Debt.
"Federal Funds Rate" shall mean, for any day, the rate set forth in
------------------
the weekly statistical release designated as H.15 (519), or any successor
publication, published by the Federal Reserve Bank of New York (including any
such successor "H.15 (519)") on the preceding Business Day opposite the caption
"Federal Funds (Effective);" or, if for any relevant day such rate is not so
published, the rate for such day will be the arithmetic mean as determined by
the Agent of rates for the last transaction in overnight Federal funds arranged
prior to 9:00 a.m. (New York City time) on that day by each of three leading
bankers of federal funds transactions in New York City selected by the Agent.
"GAAP" shall mean generally accepted accounting principles in the
----
United States of America in effect from time to time.
"Governmental Authority" shall mean any nation or government, any
----------------------
state or other political subdivision thereof, or any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.
"Guarantors" shall have the meaning given to such term in Paragraph
---------- ---------
8(b) above.
----
"Guaranty" shall have the meaning given such term in Paragraph 8(b)
-------- --------------
above.
"Hazardous Materials" shall mean:
-------------------
(i) "Hazardous substances", "hazardous wastes," "hazardous
materials," or "toxic substances," as defined in any of the Hazardous
Material Laws;
(ii) Any pollutant or contaminant, or hazardous, dangerous or toxic
chemical, material, waste or substance ("pollutant") which Hazardous
Material Laws
53
prohibit, limit or otherwise regulate as to use, exposure, release,
generation, manufacture, sale, transport, handling, storage, treatment,
reuse, presence, disposal or recycling;
(iii) Petroleum, crude oil or any fraction of petroleum or crude oil;
(iv) Any radioactive material, including any source, special nuclear
or by-product material, as defined at 42 U.S.C.(S).2011 et seq., and
-- --
amendments thereto and reauthorizations thereof;
(v) Asbestos-containing materials in any form or condition; and
(vi) Polychlorinated biphenyls.
"Hazardous Materials Claims" shall mean any enforcement, cleanup,
--------------------------
removal or other governmental or regulatory action or order with respect to the
Property, pursuant to any Hazardous Materials Laws, and/or any claim asserted in
writing by any third party relating to damage, contribution, cost recovery
compensation, loss or injury resulting from any Hazardous Materials.
"Hazardous Materials Laws" shall mean any applicable federal, state or
------------------------
local laws, ordinances or regulations relating to Hazardous Materials.
"Indebtedness" of any Person shall mean all items of indebtedness
------------
which, in accordance with GAAP and practices, would be included in determining
liabilities as shown on the liability side of a statement of condition of such
Person as of the date as of which indebtedness is to be determined, including,
without limitation, all obligations for money borrowed and capitalized lease
obligations, and shall also include all indebtedness and liabilities of others
assumed or guaranteed by such Person or in respect of which such Person is
secondarily or contingently liable (other than by endorsement of instruments in
the course of collection) whether by reason of any agreement to acquire such
indebtedness or to supply or advance sums or otherwise, including, without
limitation, reimbursement obligations with respect to letters of credit issued
for the account of such Person.
"Independent Engineer" shall mean an independent engineer acting on
--------------------
behalf of the Agent, the Bond L/C Issuing Bank, and the Lenders in connection
with the Project.
"Interest Period" shall mean with respect to any Loan which is being
---------------
maintained as a LIBOR Loan, the period commencing on the date such Loan is
advanced and ending one, two, three, four or six months thereafter, as
designated in the related Loan Request; provided, however, that (a) any Interest
Period which would otherwise end on a day which is not a Eurodollar Business Day
shall be extended to the next succeeding Eurodollar Business Day unless by such
extension it would fall in another calendar month, in which case such Interest
Period shall end on the immediately preceding Eurodollar Business Day, (b) any
Interest Period which begins on a day for which there is no numerically
corresponding day in the calendar month in which such Interest Period is to end
shall, subject to the provisions of clause (a) above, end on the last day of
such calendar month, and (c) no Interest Period shall end after, in the case of
a Loan being maintained as a LIBOR Loan, the regularly scheduled Revolving Loan
Maturity Date.
54
"Interest Reserve Account" shall mean an account established, at the
------------------------
option of the Agent, with the Trustee, the Agent, the Bond L/C Issuing Bank, or
other Person acceptable to the Agent in which the Company shall maintain amounts
sufficient for disbursement to reimburse the Bond L/C Issuing Bank immediately
upon drawing on the Bond Letter of Credit to pay scheduled interest on the Bonds
in accordance with Paragraph 1(b)(1) above.
-----------------
"Interim Bond Loans" shall have the meaning set forth in Paragraph
------------------ ---------
2(c) above.
----
"Interim Date" shall mean June 30, 1999.
------------
"Issuer" shall have the meaning given such term in Recital A above.
------ ---------
"Lenders" shall mean the Lenders from time to time party hereto.
-------
"LIBOR" shall mean, with respect to any LIBOR Loan for the Interest
-----
Period applicable to such LIBOR Loan, the rate per annum (rounded upward, if
necessary, to the next higher 1/16 of one percent) calculated as of the first
day of such Interest Period in accordance with the following formula:
LIBOR = ER
-------
1-ERP
where
ER = Eurodollar Rate
ERP = Eurodollar Reserve Percentage
"LIBOR Loan" shall mean a Loan bearing interest calculated based on
----------
LIBOR.
"LIBOR Spread" shall have the meaning set forth on Appendix I hereto.
----- ----------
"Lien" shall mean any security interest, mortgage, pledge, lien, claim
----
on property, charge or encumbrance (including any conditional sale or other
title retention agreement), any lease in the nature thereof, and the filing of
or agreement to give any financial statement under the Uniform Commercial Code
of any jurisdiction.
"Loan" shall mean a Revolving Loan or an Interim Bond Loan.
----
"Loan Agreement" shall have the meaning given such term in Recital A
-------------- ---------
above.
"Loan Documents" shall mean the this Agreement, the Security Documents
--------------
and any and all other documents, instruments and agreements executed by the
Company or any of the Guarantors in connection herewith or therewith, as any of
the same may be amended, extended or replaced from time to time.
"Loan Request" shall mean a request for a Revolving Loan in form
------------
satisfactory to the Agent.
55
"Material Adverse Effect" shall mean a material adverse effect on (i)
-----------------------
the business, Property, condition (financial or otherwise) or results of
operations, of the Company and its Subsidiaries, taken as a whole, (ii) the
ability of the Company and its Subsidiaries to perform their respective
obligations under the Loan Documents to which they are parties, or (iii) the
validity or enforceability of any of the Loan Documents or the rights or
remedies of the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank
or the Lenders thereunder.
"Multiemployer Plan" as to any Person shall mean a Plan of such Person
------------------
which is a multiemployer plan as defined in Section 4001(a)(3) of ERISA.
"Net Funded Debt" shall mean, as of any date, (i) the sum of Funded
---------------
Debt, the face amount of Standard Letters of Credit Outstanding plus, without
duplication, Subordinated Debt minus (ii) the amount then on deposit in the
Disbursement Account, the Sinking Fund Account, and the Excess Cash Account.
"Net Funded Debt/EBITDA Ratio" shall mean, as of any date, the ratio
----------------------------
of (i) the Net Funded Debt to (ii) EBITDA for the preceding four fiscal
quarters.
"Net Proceeds" shall mean the Cash Proceeds received by the Company
------------
and its Subsidiaries net of the sum of (i) reasonable fees, commissions,
expenses and costs paid or payable by the Company and its Subsidiaries to third
parties in connection with the event giving rise to such Cash Proceeds and (ii)
the amount of all taxes paid (or reasonably estimated to be payable) by the
Company and its Subsidiaries in connection with the event giving rise to such
Cash Proceeds.
"Net Profit After Tax" shall mean, for any period, for the Company and
--------------------
its Subsidiaries on a consolidated basis, determined in accordance with GAAP,
(i) gross revenues (including interest income) for such period minus (ii)
expenses (including provision for income taxes, interest expense, depreciation,
amortization and other non-cash charges) deducted in determining net income for
such period.
"Obligations" shall mean all unpaid principal of and accrued and
-----------
unpaid interest on the Loans, all Bond L/C Obligations, all Standard L/C
Obligations, all accrued and unpaid fees and all expenses, reimbursements,
indemnities and other obligations of the Company to the Lenders, the Bond L/C
Issuing Bank, the Standard L/C Issuing Bank, or the Agent under the Loan
Documents.
"Other Permitted Debt" shall mean Indebtedness described on Exhibit H
-------------------- ---------
attached hereto.
"Other Permitted Secured Debt" shall mean Indebtedness described as
----------------------------
such on Exhibit I attached hereto.
---------
"Outstanding" shall mean the Bond Letter of Credit or a Standard
-----------
Letter of Credit when it has not been canceled, expired unutilized or fully
drawn upon and reference to the "amount" of the Outstanding Bond Letter of
Credit or an Outstanding Standard Letter of Credit shall be deemed to mean the
amount available for drawing thereunder.
56
"PBGC" shall mean the Pension Benefit Guaranty Corporation established
----
pursuant to Subtitle A of Title IV of ERISA and any successor thereto.
"Percentage Share" shall mean, for any Lender at any date that
----------------
percentage set forth as such on Schedule 2 attached hereto, as said Schedule 2
---------- ----------
may be modified from time to time by the Agent to reflect assignments made
pursuant to Paragraph 15(q) above and as otherwise modified from time to time
---------------
with the consent of one hundred percent (100%) of the Lenders.
"Permitted Liens" shall mean:
---------------
(i) Liens or charges for current taxes, assessments or other
governmental charges which are not delinquent or which remain payable
without penalty, or the validity of which are contested in good faith by
appropriate proceedings upon stay of execution of the enforcement thereof,
provided the Company or such Subsidiary, as applicable, shall have set
aside on its books and shall maintain adequate reserves for the payment of
same in conformity with GAAP.
(ii) Liens, deposits or pledges made to secure statutory
obligations, surety or appeal bonds, or bonds to obtain, or to obtain the
release of, attachments, writs of garnishment or for stay of execution, or
to secure the performance of bids, tenders, contracts (other than for the
payment of borrowed money), leases or for purposes of like general nature
in the ordinary course of the business of the Company or such Subsidiary.
(iii) Purchase money security interests for property hereafter
acquired, conditional sale agreements, or other title retention agreements,
with respect to property hereafter acquired; provided, however, that no
such security interest or agreement shall extend to any property other than
the property acquired.
(iv) Statutory Liens of landlord's, carriers, warehousemen,
mechanics, materialmen and other similar Liens imposed by law and created
in the ordinary course of business for amounts not yet due or which are
being contested in good faith by appropriate proceedings and with respect
to which adequate reserves are being maintained in conformity with GAAP.
(v) Attachment and judgment Liens not otherwise constituting an
Event of Default any of which Liens are in existence less than forty-five
(45) days after the entry thereof or with respect to which execution has
been stayed, payment is covered in full by insurance, or the Company or
such Subsidiary shall in good faith be prosecuting an appeal or proceedings
for review and shall have set aside on its books such reserves as may be
required by GAAP with respect to such judgment or award.
(vi) Liens incidental to the conduct of the business or the
ownership of the property of the Company or such Subsidiary which were not
incurred in connection with borrowed money and which do not in the
aggregate materially detract from the value of the property or materially
impair the use thereof in the operation of the business.
57
(vii) Liens securing Other Permitted Secured Debt.
(viii) Liens in favor of the Trustee pursuant to the Bond Documents.
"Permitted MMT Payments" shall mean the "earn out payments" payable by
----------------------
the Company in connection with the purchase of Molten Metal Technologies, Inc.
pursuant to that certain Asset Purchase Agreement dated as of December 1, 1998
between the Company and Molten Metal Technologies, Inc.
"Person" shall mean any corporation, natural person, firm, joint
------
venture, partnership, limited liability company, trust, unincorporated
organization, government or any department or agency of any government.
"Plan" shall mean as to any Person, any pension plan that is covered
----
by Title IV of ERISA and in respect of which such Person or a Commonly
Controlled Entity of such Person is an "employer" as defined in Section 3(5) of
ERISA.
"Potential Default" shall mean an event which but for the lapse of
-----------------
time or the giving of notice, or both, would constitute an Event of Default.
"Project Agreements" shall mean the plans, specifications, contracts
------------------
and other engineering, architectural or construction agreements pursuant to
which the Project has been planned, designed, constructed and equipped.
"Property" shall mean, collectively and severally, any and all real
--------
property, including all improvements and fixtures thereon, owned or occupied by
the Company or any of its Subsidiaries.
"Regulation D" shall mean Regulation D of the Board of Governors of
------------
the Federal Reserve System (12 C.F.R. (S). 221), as the same may from time to
time be amended, supplemented or superseded.
"Reportable Event" shall mean a reportable event as defined in Title
----------------
IV of ERISA, except actions of general applicability by the Secretary of Labor
under Section 110 of ERISA.
"Required Lenders" shall mean the Lenders holding not less than sixty-
----------------
six and two-third percent (66 2/3%) of the Percentage Shares; provided, however,
that at any time during which the number of Lenders hereunder are less than
three, the term "Required Lenders" shall mean one hundred percent (100%) of the
Lenders.
"Requirements of Law" shall mean as to any Person the Certificate of
-------------------
Incorporation and ByLaws or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation, or a final and binding
determination of an arbitrator or a determination of a court or other
Governmental Authority, in each case applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is
subject.
"Revolving Credit Limit" shall mean:
----------------------
58
(i) until December 31, 2000, $18,000,000; from December 31, 2000
until December 31, 2001, $16,500,000; and from and after December 31, 2001,
$15,000,000; minus
(ii) an amount (up to but not in excess of $5,000,000) equal to 50%
of (i) Net Proceeds of Equity Securities Issuances minus (ii) on the last day of
each year beginning on December 31, 2000, $1,500,000; minus
(iii) any amount by which the Revolving Credit Limit may be reduced in
accordance with the written request of the Company delivered to the Agent not
less than five (5) Business Days prior to the proposed effectiveness of such
reduction; provided, that any such reduction shall be in a minimum amount of
$500,000 and in increments of $500,000 in excess thereof.
"Revolving Loan" shall have the meaning set forth in Paragraph 2(a)
--------------
above.
"Revolving Loan Maturity Date" shall mean September 30, 2004.
----------------------------
"Securities" shall mean any stock, shares, partnership interests,
----------
limited liability company interests, voting trust certificates, certificates of
interest or participation in any profit sharing agreement or arrangement,
options, warrants, bonds, debentures, notes or other evidences of indebtedness,
secured or unsecured, convertible, subordinated or otherwise, or in general any
instruments commonly known as "securities" or any certificates of interest,
shares or participations in temporary or interim certificates for the purchase
or acquisition of, or any right to subscribe to, purchase or acquire, any of the
foregoing.
"Security Documents" shall have the meaning given to such term in
------------------
Paragraph 8(a).
"Single Employer Plan" shall mean as to any Person any Plan of such
--------------------
Person which is not a Multiemployer Plan.
"Sinking Fund Account" shall have the meaning set forth in Paragraph
-------------------- ---------
11(m) above.
-----
"Solvent" means, as to any Person at any time, that (i) the fair value
-------
of the property of such Person is greater than the amount of such Person's
liabilities (including disputed liabilities evaluated for purposes of Section
101(31) of the United States Bankruptcy Code and, in the alternative, for
purposes of the California Uniform Fraudulent Transfer Act); (ii) the present
fair salable value of the property of such Person is not less than the amount
that will be required to pay the probable liability of such Person on its debts
as they become absolute and matured; (iii) such Person is able to realize upon
its property and pay its debts and other liabilities (including disputed,
contingent and unliquidated liabilities) as they mature in the normal course of
business; (iv) such Person does not intend to, and does not believe that it
will, incur debts or liabilities beyond such Person's ability to pay as such
debts and liabilities mature; and (v) such Person is not engaged in business or
a transaction, for which such Person's property would constitute unreasonably
small capital.
59
"Standard Loan Documents" shall mean the Standard Letters of Credit
-----------------------
and, to the extent governing the Standard Letters of Credit, this Agreement, the
Security Documents and any and all other documents, instruments and agreements
executed by the Company or any of the Guarantors in connection herewith or
therewith, as any of the same may be amended, extended or replaced from time to
time.
"Standard Letter of Credit" shall have the meaning set forth in
-------------------------
Paragraph 3(a) above.
--------------
"Standard Letter of Credit Application" shall mean an application for
-------------------------------------
a Standard Letter of Credit in the standard form required by the Standard L/C
Issuing Bank.
"Standard L/C Drawing" shall mean any drawing under a Standard Letter
--------------------
of Credit.
"Standard L/C Issuing Bank" shall have the meaning set forth in the
-------------------------
introductory paragraph hereof above.
"Standard L/C Obligations" shall mean any and all debts, obligations
------------------------
and liabilities of the Company to the Agent, the Standard L/C Issuing Bank and
the Lenders (whether now existing or hereafter arising, voluntary or
involuntary, whether or not jointly owed with others, direct or indirect,
absolute or contingent, liquidated or unliquidated, and whether or not from time
to time decreased or extinguished and later increased, created or incurred),
arising out of or related to Standard Letters of Credit.
"Standard Letter of Credit Fee Percentage" shall have the meaning set
----------------------------------------
forth on Appendix I hereto.
----------
"Statement Date" shall mean December 31, 1998.
--------------
"Subordinated Debt" shall mean Debt subordinated to the Obligations on
-----------------
terms and conditions satisfactory to the Lenders.
"Subsidiary" shall mean with respect to any Person, any corporation
----------
more than fifty percent (50%) of the stock of which having by the terms thereof
ordinary voting power to elect the board of directors, managers or trustees of
such corporation shall, at the time as of which any determination is being made,
be owned by such Person, either directly or through Subsidiaries of such Person
(irrespective of whether or not at the time stock of any other class or classes
of such corporation shall have or might have voting power by reason of the
happening of any contingency).
"Tangible Net Worth" shall mean for the Company and its Subsidiaries,
------------------
on a consolidated basis, at any time of determination:
(i) the total assets of the Company and its Subsidiaries which would
be shown as assets on a consolidated balance sheet of the Company and its
Subsidiaries, as of such time prepared in accordance with GAAP, after
eliminating all amounts properly attributable to minority interests, if
any, in the stock and surplus of Subsidiaries, minus
60
(ii) the total liabilities of the Company and its Subsidiaries which
would be shown as liabilities on a consolidated balance sheet of the
Company and its Subsidiaries as of such time prepared in accordance with
GAAP, minus
(iii) the net book amount of all assets of the Company and its
Subsidiaries (after deducting any reserves applicable thereto) which would
be shown as intangible assets on a consolidated balance sheet of the
Company and its Subsidiaries as of such time prepared in accordance with
GAAP, including, without limitation, good will, trademarks, trade names,
service marks, brand names, copyrights, patents and unamortized debt
discount and expense, organizational expenses and the excess of the equity
in any Subsidiary over the cost of the investment in such Subsidiary.
"Year 2000 Issues" means anticipated costs, problems and uncertainties
----------------
associated with the inability of certain computer applications to effectively
handle data including dates on and after January 1, 2000, as such inability
affects the business, operations and financial condition of the Company and its
Subsidiaries' material customers, suppliers and vendors.
61
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the day and year first above written.
ATG INC., a California corporation
By: /s/ Xxxxx Xxxx
------------------------------------
Name: Xxxxx Xxxx
----------------------------------
Title: Executive Vice President
---------------------------------
SANWA BANK CALIFORNIA, as Agent
By /s/ Xxxx X. Xxxxx
-------------------------------------
Name Xxxx X. Xxxxx
----------------------------------
Title Vice President
---------------------------------
SANWA BANK CALIFORNIA, as Standard L/C
Issuing Bank and a Lender
By /s/ Xxxxxxxx Xxxxxx
-------------------------------------
Name Xxxxxxxx Xxxxxx
-----------------------------------
Title Vice President/Manager
----------------------------------
KEYBANK NATIONAL ASSOCIATION, as Bond
L/C Issuing Bank, Co-Agent and a Lender
By: /s/ Xxxx Xxxxxxxxxxx
------------------------------------
Name: Xxxx Xxxxxxxxxxx
----------------------------------
Title: Vice President
---------------------------------
FIRST BANK OF CALIFORNIA, as a Lender
By: /s/ Xxxxxxx X. Xxxxxx
------------------------------------
Name: Xxxxxxx X. Xxxxxx
----------------------------------
Title: Vice President
---------------------------------
S-2
IMPERIAL BANK, as a Lender
By: /s/ Xxxxxxxxx Xxxxxx
------------------------------------
Name: Xxxxxxxxx Xxxxxx
----------------------------------
Title: Vice President
---------------------------------
GENERAL BANK, as a Lender
By: /s/ Xxxx Xx
------------------------------------
Name: Xxxx Xx
----------------------------------
Title: VP & Assistant Regional Manager
---------------------------------
S-2
LIST OF APPENDIXES, SCHEDULES AND EXHIBITS
Schedule 1 Notice Addresses
Schedule 2 Percentage Share
Appendix I Pricing Schedule
Exhibit A Form of Bond Letter of Credit
Exhibit B-1 Form of Security Agreement
Exhibit B-2 Form of Security Agreement
Exhibit C Form of Guaranty
Exhibit D Form of Opinion
Exhibit E Material Litigation
Exhibit F List of Subsidiaries
Exhibit G Insurance (Limits and Coverage)
Exhibit H Other Permitted Debt
Exhibit I Other Permitted Secured Debt
Exhibit J Bond Pledge Agreement
SCHEDULE 1
(NOTICE ADDRESSES)
Company
-------
ATG INC.
00000 Xxxxxxx Xxxx.
Xxxxxxx, XX 00000
Attn: Xx. Xxxxx Xxxx, Executive Vice President
Xx. Xxxxx Xxxxxxxxxx, Chief Financial Officer
Telephone: 000-000-0000
Facsimile: 000-000-0000
Agent
-----
Sanwa Bank California
Oakland Commercial Banking Center
0000 Xxxxxxxx
Xxxxxxx, XX 00000
Attn: Xxxxxxxx Xxxxxx, Vice President/ Manager
Telephone: 000-000-0000
Facsimile: 000-000-0000
with a copy to:
Sanwa Bank California
Syndications
000 Xxxxx Xxxxxxxx Xxxxxx (X00-00)
Xxx Xxxxxxx, XX 00000
Attn: Xxxx Xxxxx, Vice President
Telephone: 000-000-0000
Facsimile: 000-000-0000
Bond L/C Issuing Bank, Co-Agent
-------------------------------
Xxxx Xxxxxxxxxxx
KeyBank National Association
Mailcode WA-31-10-4871
000 Xxxxx Xxx., 00xx Xxxxx
Xxxxxxx, XX 00000-0000
Telephone: 000-000-0000
Facsimile: 000-000-0000
with respect to the Letter of Credit
------------------------------------
KeyBank National Association
International Division
Mailcode WA-31-10-5260
000 0xx Xxxxxx, 00xx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxxxxxxx Xxxxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
Lenders
-------
First Bank of California
0000 Xxxxxx Xxxx Xxxx
Xxxxxxx, XX 00000
Attn: Xxxxxxx X. Xxxxx, Senior Vice President
General Bank
0000 Xx Xxxx
Xxxxxxxxx, XX 00000
Attn: Xxxx Xxx, Senior Vice President/Manager
Imperial Bank
San Francisco Regional Xxxxxx
000 Xxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000
Attn: Xxxx Xxxxxxx, Regional Vice President
SCHEDULE 2
(Percentage Share)
---------------------------------------------------------------------------------------------------------------------
LENDER PERCENTAGE SHARE
------ ----------------
---------------------------------------------------------------------------------------------------------------------
Sanwa Bank California 26.666666667%
---------------------------------------------------------------------------------------------------------------------
Key Bank 22.222222222%
---------------------------------------------------------------------------------------------------------------------
General Bank 18.888888889%
---------------------------------------------------------------------------------------------------------------------
Imperial Bank 18.888888889%
---------------------------------------------------------------------------------------------------------------------
First Bank of California 13.333333333%
---------------------------------------------------------------------------------------------------------------------
APPENDIX I
PRICING SCHEDULE
The LIBOR Spread, Base Rate Spread, Bond Letter of Credit Fee Percentage
and Standard Letter of Credit Fee Percentage shall be calculated according to
the following schedule, beginning on the 181st day after the date of this
Agreement, based on the Net Funded Debt/EBITDA Ratio as set forth in the
Compliance Certificate most recently delivered to the Lenders pursuant to
Paragraph 11(a) of this Agreement. Such calculations shall be effective (and
--------------- -----------------------------------------
interest rates and fees adjusted accordingly) effective on the 181st day after
------------------------------------------------------------------------------
the date of this Agreement and, thereafter, on the date that the Agent receives
-------------------------------------------------------------------------------
each such Compliance Certificate.
--------------------------------
Until the 181st day after the date of this Agreement and, at any time
thereafter, if a Compliance Certificate is not delivered in accordance with
Paragraph 11(a) of this Agreement, the LIBOR Spread, Base Rate Spread, Bond
---------------
Letter of Credit Fee Percentage and Standard Letter of Credit Fee Percentage
shall be calculated according to the following schedule based on the assumption
that the Net Funded Debt/EBITDA Ratio is 3.25 to 1.00 or greater.
-------------------------------------------------------------------------------------------------------------------------------
If the Net Funded Debt/EBITDA Ratio is: The LIBOR Spread is: The Base Rate Spread The Bond Letter of The Standard Letter
-------------------------------------- ------------------- -------------------- ------------------ -------------------
is: Credit Fee of Credit Fee
---------- -------------
Percentage is: Percentage is:
------------- --------------
-------------------------------------------------------------------------------------------------------------------------------
Equal to or greater than 3.25 to 1.00 2.75% 0.75% 2.75% 2.50%
-------------------------------------------------------------------------------------------------------------------------------
Equal to or greater than 2.75 to 2.50% 0.50% 2.50% 2.00%
1.00 but less than 3.25 to 1.00
-------------------------------------------------------------------------------------------------------------------------------
Equal to or greater than 2.25 to 2.25% .25% 2.25% 1.75%
1.00 but less than 2.75 to 1.00
-------------------------------------------------------------------------------------------------------------------------------
Equal to or greater than 1.75 to 2.00% 0.00% 2.00% 1.50%
1.00 but less than 2.25 to 1.00
-------------------------------------------------------------------------------------------------------------------------------
Less than 1.75 to 1.00 1.75% 0.00% 1.75% 1.25%
-------------------------------------------------------------------------------------------------------------------------------
---------------------------------------
KeyBank National Association
Letter of Credit No. WSL __________
Page 1 of _____
---------------------------------------
EXHIBIT A
KEYBANK NATIONAL ASSOCIATION
International Division
000 Xxxxx Xxxxxx, 00/xx/ Xxxxx
Xxxxxxxx: XX 31-10-5260
Xxxxxxx, XX 00000
Date: November _____, 1999
Letter of Credit No. WSL __________
To: BNY Western Trust Company ("Trustee")
000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxxxxx 00000
Attention: Corporate Trust Division
Amount: USD $____________
Expiration Date: November _____, 2004
Ladies and Gentlemen:
We hereby establish in your favor at the request and for the account of ATG
Inc., a California corporation ("Borrower"), our irrevocable letter of credit in
the amount of U.S. $_____________ (_____________ DOLLARS) in connection with the
Bonds (as defined below) available with ourselves by sight payment against
presentation of one or more signed and dated demands ("Signed Demands")
addressed and delivered by you to us at KeyBank National Association,
International Division, 000 Xxxxx Xxxxxx, 00xx Xxxxx, Xxxxxxxx XX-00-00-0000,
Xxxxxxx, XX 00000-0000, Telephone: (000) 000-0000, Facsimile: (000) 000-0000,
Attention: Xxxxxxxx Xxxxxxx (or such other person as we may from time to time
specify), each in the form of Annex A (an "A Drawing"), Annex B (a "B Drawing"),
Annex C (a "C Drawing"), Annex D (a "D Drawing"), Annex E (an "E Drawing"), or
Annex F (an "F Drawing") hereto, with all instructions in brackets therein being
complied with.
Each such presentation must be made on a Business Day (as hereinafter
defined) to us at or before 5:00 p.m., Seattle time on or before November _____,
2004, or, if such date is not a Business Day, then at or before 5:00 p.m.
Seattle time, on or before the first (1st) succeeding Business Day (the
"Expiration Date"). As used herein the term "Business Day" shall mean a day of
the year on which our Seattle office is open for business.
The amount of any demand presented hereunder will be the amount inserted in
numbered Paragraph 4 of said demand. By honoring any such demand we make no
representation as to the correctness of the amount demanded.
1
---------------------------------------
KeyBank National Association
Letter of Credit No. WSL __________
Page 2 of _____
---------------------------------------
We hereby agree with you that each demand presented hereunder in full
compliance with the terms hereof will be duly honored by our payment to you of
the amount of such demand, in immediately available funds:
(i) not later than 10:00 a.m., Seattle time, on the Business Day following the
Business Day on which such demand is presented to us as aforesaid if such
presentation is made to us at or before noon, Seattle time.
or
(ii) not later than 10:00 a.m., Seattle time, on the second Business Day
following the Business Day on which such demand is presented to us as
aforesaid, if such presentation is made to us after noon, Seattle time.
Notwithstanding the foregoing, any demand presented hereunder, in full
compliance with the terms hereof, for a C Drawing or D Drawing will be duly
honored (i) not later than 12:00 noon, Seattle time, on the Business Day on
which such demand is presented to us as aforesaid if such presentation is made
to us at or before 9:00 a.m., Seattle time, and (ii) not later than 11:00 a.m.,
Seattle time, on the Business Day following the Business Day on which such
demand is presented to us as aforesaid if such presentation if made to us after
9:00 a.m., Seattle time.
If the remittance instructions included with any demand presented under
this Letter of Credit require that payment is to be made by transfer to an
account with us or with another bank, we and/or such other bank may rely solely
on the account number specified in such instructions even if the account is in
the name of a person or entity different from the intended payee.
With respect to any demand that is honored hereunder, the total amount of
this Letter of Credit shall be reduced as follows:
(A) With respect to any A Drawing, the total amount of this Letter of Credit
shall be reduced, as to all demands subsequent to the applicable demand, by
the amount of the applicable demand as of the date of presentation of such
demand and shall not be reinstated;
(B) With respect to any B Drawing, the total amount of this Letter of Credit
shall be reduced, as to all demands subsequent to the applicable demand, by
an amount equal to forty-seven (47) days interest calculated at a rate of
12% per annum on the basis of a year of 365 days on the principal amount of
the Bonds being redeemed as set forth in the Annex B delivered in
connection with such drawing;
(C) With respect to any C Drawing or D Drawing, the total amount of this Letter
of Credit shall be reduced, as to all demands subsequent to the applicable
demand, by the amount of the applicable demand as of the date of
presentation of such demand subject to reinstatement in full or in part, if
and to the extent, prior to the Expiration Date, we
2
---------------------------------------
KeyBank National Association
Letter of Credit No. WSL __________
Page 3 of _____
---------------------------------------
are reimbursed from remarketing proceeds for all or a portion of such
demand, at which time we shall advise you in writing of such reinstatement
and the amount reinstated; and
(D) With respect to any F Drawing, the total amount of this Letter of Credit
shall be reduced, as to all demands subsequent to the applicable demand, by
the amount of the applicable demand as of the date of presentation of such
demand; provided, however, that such amount shall be automatically
-------- -------
reinstated on the tenth (10th) calendar day following the date of
presentation of such demand unless (i) you shall have received notice from
us by telegraph, telex, courier service or registered mail at the above
address within seven (7) calendar days after the presentation of such
demand that there shall be no such reinstatement, or (ii) the tenth (10th)
calendar day after such presentation would be after the Expiration Date.
Upon presentation to us of an E Drawing in compliance with the terms of
this Letter of Credit, no further demand whatsoever may be presented hereunder.
An F Drawing shall not be presented to us (i) more than once during any
twenty-seven (27) calendar day period, or (ii) with respect to any single F
Drawing, for an amount more than $______________.
Only you, as Trustee, may make a drawing under this Letter of Credit. Upon
the payment to you or your account of the amount specified in a sight draft
drawn hereunder, we shall be fully discharged on our obligation under this
Letter of Credit with respect to such sight draft, and we shall not thereafter
be obligated to make any further payments under this Letter of Credit in respect
of such sight draft to you or to any other person who may have made to you or
who makes to you a demand for payment of principal of or interest on any of the
Bonds.
Except as otherwise provided herein, this Letter of Credit shall be
governed by and construed in accordance with the Uniform Customs and Practice
for Documentary Credits (1993 Revision), Publication No. 500 of the
International Chamber of Commerce (the "UCP"); provided, however, that Article
41, paragraphs d, e, f, g, h, i and j of Article 48 and the second sentence of
Article 17 shall not apply to this Letter of Credit. Furthermore, as provided in
the first sentence of Article 17 of the UCP, we assume no liability or
responsibility for consequences arising out of the interruption of our business
by Acts of God, riots, civil commotions, insurrections, wars or any other causes
beyond our control, or strikes or lockouts. As to matters not covered by the UCP
and to the extent not inconsistent with the UCP or made inapplicable by this
Letter of Credit, this Letter of Credit shall be governed by the laws of the
State of Ohio, including the Uniform Commercial Code as in effect in the State
of Ohio.
This Letter of Credit is transferable and may be transferred more than
once, but in each case only in the amount of the full unutilized balance hereof
to any single transferee who you shall have advised us pursuant to Annex G has
succeeded BNY Western Trust Company or a
3
---------------------------------------
KeyBank National Association
Letter of Credit No. WSL __________
Page 4 of _____
---------------------------------------
successor trustee as Trustee under the Trust Indenture dated as of November 1,
1999 as supplemented from time to time (the "Indenture") between the Port of
Xxxxxx Economic Development Corporation (the "Issuer") and BNY Western Trust
Company, as Trustee, pursuant to which U.S. $_____________________ in aggregate
principal amount of the Solid Waste Revenue Bonds, 1999 (ATG Inc. Project) (the
"Bonds") were issued. Transfers may be effected without charge to the transferor
and only through ourselves and only upon presentation to us of a duly executed
instrument of transfer in the form attached hereto as Annex G. Any transfer of
this Letter of Credit as aforesaid must be endorsed by us on the reverse hereof
and may not change the place of presentation of demands from our office in
Seattle, Washington. Transfer of the amount available under this Letter of
Credit to such transferee shall be effected by the presentation to us of this
Letter of Credit accompanied by a transfer fee of $500.00 and the transfer form
in the form attached hereto as Annex G and, unless this Letter of Credit is so
presented to us, we shall have no obligation hereunder to any transferee. Upon
such transfer, we will either endorse the transfer on the reverse of this Letter
of Credit, and forward it directly to such transferee with our customary notice
of transfer or issue a replacement of this Letter of Credit in the maximum
amount then available hereunder.
Communications with respect to this Letter of Credit shall be in writing
and shall be addressed to KeyBank National Association, International Division,
000 Xxxxx Xxxxxx, 00xx Xxxxx, Xxxxxxxx XX-00-00-0000, Xxxxxxx, Xxxxxxxxxx 00000,
Phone: 000-000-0000, Fax No.: 000-000-0000, Attention: Xxxxxxxx Xxxxxxx,
specifically referring thereon to KeyBank National Association Irrevocable
Letter of Credit No. WSL _______________.
All payments hereunder shall be made from our own funds.
Upon the earliest of (i) the honoring by us of the final drawing available
to be made hereunder, (ii) our receipt of this outstanding Letter of Credit and
a written certificate signed by your officer and an authorized representative of
the Company in the form of Annex E and Annex F hereto appropriately completed,
or (iii) the Expiration Date, this Letter of Credit shall automatically
terminate and be delivered to us for cancellation.
This Letter of Credit sets forth in full our undertaking, and such
undertaking shall not in any way be modified, amended, amplified or limited by
reference to any document, instrument or agreement referred to herein
(including, without limitation, the Bonds and the Indenture), except the UCP to
the extent the UCP is not inconsistent with or made inapplicable by this Letter
of Credit; and any such reference shall not be deemed to incorporate herein by
reference any document, instrument or agreement except the UCP.
Very truly yours,
KEYBANK NATIONAL ASSOCIATION, a national
banking association
4
---------------------------------------
KeyBank National Association
Letter of Credit No. WSL __________
Page 5 of _____
---------------------------------------
By: ___________________________________________
Xxxxxxxx Xxxxxxx, Vice President
By: ____________________________________________
Xxxxx X. X. Xxxxx, Letter of Credit Officer
5
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KeyBank National Association
Letter of Credit No. WSL __________
Page 6 of _____
---------------------------------------
ANNEX A
To: KEYBANK NATIONAL ASSOCIATION
International Division, 000 Xxxxx Xxxxxx, 00xx Floor
Mailcode WA-31-10-5260
Xxxxxxx, XX 00000
Re: KeyBank National Association
Irrevocable Letter of Credit No. WSL ____________
FOR THE URGENT ATTENTION OF LETTER OF CREDIT MANAGER.
[INSERT NAME OF BENEFICIARY] (THE "TRUSTEE") HEREBY CERTIFIES TO KEYBANK
NATIONAL ASSOCIATION (THE "BANK") WITH REFERENCE TO IRREVOCABLE LETTER OF CREDIT
NO. WSL ________________ (THE "LETTER OF CREDIT"; THE TERMS THE "BONDS",
"BUSINESS DAY" AND THE "INDENTURE" USED HEREIN SHALL HAVE THEIR RESPECTIVE
MEANINGS SET FORTH IN THE LETTER OF CREDIT) THAT:
(1) THE TRUSTEE IS THE TRUSTEE OR A SUCCESSOR TRUSTEE UNDER THE INDENTURE.
(2) THE TRUSTEE IS MAKING A DEMAND FOR PAYMENT UNDER THE LETTER OF CREDIT
WITH RESPECT TO THE PAYMENT OF PRINCIPAL UPON AN OPTIONAL AND/OR
MANDATORY REDEMPTION OF LESS THAN ALL OF THE BONDS CURRENTLY
OUTSTANDING.
(3) THE AMOUNT OF THIS DEMAND FOR PAYMENT WAS COMPUTED IN ACCORDANCE WITH
THE TERMS AND CONDITIONS OF THE BONDS AND THE INDENTURE AND IS
DEMANDED IN ACCORDANCE WITH THE INDENTURE, WHICH AMOUNT PLEASE REMIT
TO THE UNDERSIGNED AS FOLLOWS:
[INSERT REMITTANCE INSTRUCTIONS].
(4) THE AMOUNT HEREBY DEMANDED UNDER THE LETTER OF CREDIT IS $[INSERT
AMOUNT].
(5) THE TRUSTEE HAS CONTACTED OR ATTEMPTED TO CONTACT BY TELEPHONE AND
TELEFACSIMILE AN OFFICER OF THE BANK'S LETTER OF CREDIT OFFICE IN
SEATTLE, WASHINGTON REGARDING THIS DEMAND.
6
---------------------------------------
KeyBank National Association
Letter of Credit No. WSL __________
Page 7 of _____
---------------------------------------
(6) IF THIS DEMAND IS RECEIVED BY YOU AT OR BEFORE NOON, SEATTLE TIME ON A
BUSINESS DAY, YOU MUST MAKE PAYMENT ON THIS DEMAND AT OR BEFORE 10.00
A.M., SEATTLE TIME, ON THE NEXT BUSINESS DAY. IF THIS DEMAND IS
RECEIVED BY YOU AFTER NOON, SEATTLE TIME, ON A BUSINESS DAY, YOU MUST
MAKE PAYMENT ON THIS DEMAND AT OR BEFORE 10:00 A.M., SEATTLE TIME, ON
THE SECOND BUSINESS DAY FOLLOWING SUCH BUSINESS DAY.
[INSERT NAME OF BENEFICIARY]
[FOR SIGNED DEMANDS ONLY, INSERT SIGNATURE AND DATE]
7
---------------------------------------
KeyBank National Association
Letter of Credit No. WSL 991510
Page 8 of 19
---------------------------------------
ANNEX B
To: KEYBANK NATIONAL ASSOCIATION
International Division, 000 Xxxxx Xxxxxx, 00xx Floor
Mailcode WA-31-10-5260
Xxxxxxx, XX 00000
Re: KeyBank National Association
Irrevocable Letter of Credit No. WSL ______________
FOR THE URGENT ATTENTION OF LETTER OF CREDIT MANAGER.
[INSERT NAME OF BENEFICIARY] (THE "TRUSTEE") HEREBY CERTIFIES TO KEYBANK
NATIONAL ASSOCIATION (THE "BANK") WITH REFERENCE TO IRREVOCABLE LETTER OF CREDIT
NO. WSL ________________ (THE "LETTER OF CREDIT"; THE TERMS THE "BONDS",
"BUSINESS DAY" AND THE "INDENTURE" USED HEREIN SHALL HAVE THEIR RESPECTIVE
MEANINGS SET FORTH IN THE LETTER OF CREDIT) THAT:
(1) THE TRUSTEE IS THE TRUSTEE OR A SUCCESSOR TRUSTEE UNDER THE INDENTURE.
(2) THE TRUSTEE IS MAKING A DEMAND FOR PAYMENT UNDER THE LETTER OF CREDIT
WITH RESPECT TO THE PAYMENT OF UNPAID INTEREST UPON AN OPTIONAL AND/OR
MANDATORY REDEMPTION OF LESS THAN ALL OF THE BONDS CURRENTLY
OUTSTANDING IN AN AGGREGATE PRINCIPAL AMOUNT OF $_______________.
(3) THE AMOUNT OF THIS DEMAND FOR PAYMENT WAS COMPUTED IN ACCORDANCE WITH
THE TERMS AND CONDITIONS OF THE BONDS AND THE INDENTURE AND IS
DEMANDED IN ACCORDANCE WITH THE INDENTURE, WHICH AMOUNT PLEASE REMIT
TO THE UNDERSIGNED AS FOLLOWS:
[INSERT REMITTANCE INSTRUCTIONS].
(4) THE AMOUNT HEREBY DEMANDED UNDER THE LETTER OF CREDIT IS $INSERT
AMOUNT].
(5) THE TRUSTEE HAS CONTACTED OR ATTEMPTED TO CONTACT BY TELEPHONE AND
TELEFACSIMILE AN OFFICER OF THE BANK'S LETTER OF CREDIT OFFICE IN
SEATTLE, WASHINGTON REGARDING THIS DEMAND.
8
---------------------------------------
KeyBank National Association
Letter of Credit No. WSL __________
Page 9 of 19
---------------------------------------
(6) IF THIS DEMAND IS RECEIVED BY YOU AT OR BEFORE NOON, SEATTLE TIME ON A
BUSINESS DAY, YOU MUST MAKE PAYMENT ON THIS DEMAND AT OR BEFORE 10:00
A.M., SEATTLE TIME, ON THE NEXT BUSINESS DAY. IF THIS DEMAND IS
RECEIVED BY YOU AFTER NOON, SEATTLE TIME, ON A BUSINESS DAY, YOU MUST
MAKE PAYMENT ON THIS DEMAND AT OR BEFORE 10:00 A.M., SEATTLE TIME, ON
THE SECOND BUSINESS DAY FOLLOWING SUCH BUSINESS DAY.
[INSERT NAME OF BENEFICIARY]
[FOR SIGNED DEMANDS ONLY, INSERT SIGNATURE AND DATE]
9
--------------------------------------
KeyBank National Association
Letter of Credit No. WSL ____
Page 10 of 19
--------------------------------------
ANNEX C
To: KEYBANK NATIONAL ASSOCIATION
International Division, 000 Xxxxx Xxxxxx, 00xx Floor
Mailcode WA-31-10-5260
Xxxxxxx, XX 00000
Re: KeyBank National Association
Irrevocable Letter of Credit No. WSL ______________
[INSERT NAME OF BENEFICIARY] (THE "TRUSTEE") HEREBY CERTIFIES TO KEYBANK
NATIONAL ASSOCIATION (THE "BANK") WITH REFERENCE TO IRREVOCABLE LETTER OF CREDIT
NO. WSL ______________ (THE "LETTER OF CREDIT"; THE TERMS THE "BONDS", "BUSINESS
DAY" AND THE "INDENTURE" USED HEREIN SHALL HAVE THEIR RESPECTIVE MEANINGS SET
FORTH IN THE LETTER OF CREDIT) THAT:
(1) THE TRUSTEE IS THE TRUSTEE OR A SUCCESSOR TRUSTEE UNDER THE INDENTURE.
(2) THE TRUSTEE IS MAKING A DEMAND FOR PAYMENT UNDER THE LETTER OF CREDIT
WITH RESPECT TO THE PAYMENT OF THE PRINCIPAL AMOUNT OF THOSE BONDS
WHICH THE REMARKETING AGENT (AS DEFINED IN THE INDENTURE) HAS BEEN
UNABLE TO REMARKET WITHIN THE TIME LIMITS ESTABLISHED IN THE
INDENTURE.
(3) THE AMOUNT OF THIS DEMAND FOR PAYMENT WAS COMPUTED IN ACCORDANCE WITH
THE TERMS AND CONDITIONS OF THE BONDS AND THE INDENTURE AND IS
DEMANDED IN ACCORDANCE WITH THE INDENTURE, WHICH AMOUNT PLEASE REMIT
TO THE UNDERSIGNED AS FOLLOWS:
[INSERT REMITTANCE INSTRUCTIONS].
(4) THE AMOUNT HEREBY DEMANDED UNDER THE LETTER OF CREDIT IS $[INSERT
AMOUNT].
(5) THE TRUSTEE HAS CONTACTED OR ATTEMPTED TO CONTACT BY TELEPHONE AND
TELEFACSIMILE AN OFFICER OF THE BANK'S LETTER OF CREDIT OFFICE IN
SEATTLE, WASHINGTON REGARDING THIS DEMAND.
(6) THE TRUSTEE: (A) IS DELIVERING OR CAUSING TO BE DELIVERED TO THE
SANWA BANK CALIFORNIA ("AGENT"), AS AGENT FOR BANK AND OTHERS, A
PRINCIPAL AMOUNT OF THE BONDS, REGISTERED IN THE
10
--------------------------------------
KeyBank National Association
Letter of Credit No. WSL ____
Page 11 of 19
--------------------------------------
NAME OF THE BORROWER AS PLEDGOR AND AGENT AS PLEDGOR AND AGENT AS
PLEDGEE, EQUAL TO THE AMOUNT OF THE DRAFT ACCOMPANYING THIS
CERTIFICATE; IS DELIVERING OR CAUSING TO BE DELIVERED TO THE AGENT,
------------------------------------------------------
A WRITTEN CONFIRMATION THAT THE BOOK ENTRIES HAVE BEEN MADE SO THAT
-------------------------------------------------------------------
A PRINCIPAL AMOUNT OF THE BONDS IS HELD BY THE TRUSTEE FOR THE
--------------------------------------------------------------
ACCOUNT OF THE BORROWER AS PLEDGOR AND AGENT AS PLEDGEE, EQUAL TO THE
---------------------------------------------------------------------
AMOUNT OF THE DRAFT ACCOMPANYING THIS CERTIFICATE; (B) ACKNOWLEDGES
--------------------------------------------------
THE PLEDGE BY THE BORROWER TO AGENT OF THE BONDS DELIVERED PURSUANT TO
CLAUSE (A), AND (C) AGREES THAT ALL PAYMENTS OF PRINCIPAL, PREMIUM, IF
ANY, AND INTEREST MADE ON SUCH BONDS SHALL BE MADE TO AGENT, SO LONG
AS AGENT IS THE PLEDGEE OF SUCH BONDS.
(7) THE PRINCIPAL AMOUNT OF THE BONDS DELIVERED TO THE REMARKETING AGENT
WHICH THE REMARKETING AGENT HAS BEEN UNABLE TO REMARKET IS
$____________. THE AMOUNT OF INTEREST UPON SUCH BONDS WHICH HAS
ACCRUED BUT IS UNPAID IS $__________________. THE AMOUNT OF THE DRAFT
ACCOMPANYING THIS CERTIFICATE DOES NOT EXCEED SUCH AMOUNT DUE AS THE
PRINCIPAL OF THE BONDS AND INTEREST ACCRUED THEREON.
(8) UPON RECEIPT BY THE TRUSTEE OF THE AMOUNT DEMANDED HEREBY, (A) THE
TRUSTEE WILL DELIVER IT TO BOND HOLDERS ONLY FOR THE PURPOSE OF
PAYMENT OF THE PURCHASE PRICE OF THE BONDS REFERENCED IN THE SECOND
PARAGRAPH HEREOF, (B) NO PORTION OF IT SHALL BE APPLIED BY THE TRUSTEE
FOR ANY OTHER PURPOSE, AND (C) NO PORTION OF IT SHALL BE COMMINGLED
WITH OTHER FUNDS HELD BY THE TRUSTEE. THIS DRAWING IS MADE IN
ACCORDANCE WITH THE PROVISIONS OF THE INDENTURE AND THE LETTER OF
CREDIT.
(9) IF THIS DEMAND IS RECEIVED BY YOU AT OR BEFORE 9:00 A.M., SEATTLE TIME
ON A BUSINESS DAY, YOU MUST MAKE PAYMENT ON THIS DEMAND AT OR BEFORE
12:00 noon., SEATTLE TIME, ON SAID BUSINESS DAY. IF THIS DEMAND IS
RECEIVED BY YOU AFTER 9:00 A.M., SEATTLE TIME, ON A BUSINESS DAY, YOU
MUST MAKE PAYMENT ON THIS DEMAND AT OR BEFORE 11:00 A.M., SEATTLE
TIME, ON THE BUSINESS DAY FOLLOWING SAID BUSINESS DAY.
[INSERT NAME OF BENEFICIARY]
[FOR SIGNED DEMANDS ONLY, INSERT SIGNATURE AND DATE]
11
------------------------------------
KeyBank National Association
Letter of Credit No. WSL ____
Page 12 of 19
------------------------------------
ANNEX D
To: KEYBANK NATIONAL ASSOCIATION
International Division, 000 Xxxxx Xxxxxx, 00xx Floor
Mailcode WA-31-10-5260
Xxxxxxx, XX 00000
Re: KeyBank National Association
Irrevocable Letter of Credit No. WSL ______________
FOR THE URGENT ATTENTION OF LETTER OF CREDIT MANAGER.
(INSERT NAME OF BENEFICIARY] (THE "TRUSTEE") HEREBY CERTIFIES TO KEYBANK
NATIONAL ASSOCIATION (THE "BANK") WITH REFERENCE TO IRREVOCABLE LETTER OF
CREDIT NO. WSL ___________ (THE "LETTER OF CREDIT"; THE TERMS THE "BONDS",
"BUSINESS DAY" AND THE "INDENTURE" USED HEREIN SHALL HAVE THEIR RESPECTIVE
MEANINGS SET FORTH IN THE LETTER OF CREDIT) THAT:
(1) THE TRUSTEE IS THE TRUSTEE OR A SUCCESSOR TRUSTEE UNDER THE INDENTURE.
(2) THE TRUSTEE IS MAKING A DEMAND FOR PAYMENT UNDER THE LETTER OF CREDIT
WITH RESPECT TO THE PAYMENT OF THE UNPAID INTEREST ON THOSE BONDS
WHICH THE REMARKETING AGENT (AS DEFINED IN THE INDENTURE) HAS BEEN
UNABLE TO REMARKET WITHIN THE TIME LIMITS ESTABLISHED IN THE
INDENTURE.
(3) THE AMOUNT OF THIS DEMAND FOR PAYMENT WAS COMPUTED IN ACCORDANCE WITH
THE TERMS AND CONDITIONS OF THE BONDS AND THE INDENTURE AND IS
DEMANDED IN ACCORDANCE WITH THE INDENTURE, WHICH AMOUNT PLEASE REMIT
TO THE UNDERSIGNED AS FOLLOWS:
[INSERT REMITTANCE INSTRUCTIONS].
(4) THE AMOUNT HEREBY DEMANDED UNDER THE LETTER OF CREDIT IS $[INSERT
AMOUNT].
(5) THE TRUSTEE HAS CONTACTED OR ATTEMPTED TO CONTACT BY TELEPHONE AND
TELEFACSIMILE AN OFFICER OF THE BANK'S LETTER OF CREDIT OFFICE IN
SEATTLE, WASHINGTON REGARDING THIS DEMAND.
12
------------------------------------
KeyBank National Association
Letter of Credit No. WSL ____
Page 13 of 19
------------------------------------
(6) IF THIS DEMAND IS RECEIVED BY YOU AT OR BEFORE 9:00 A.M., SEATTLE TIME
ON A BUSINESS DAY, YOU MUST MAKE PAYMENT ON THIS DEMAND AT OR BEFORE
12:00 noon., SEATTLE TIME, ON SAID BUSINESS DAY. IF THIS DEMAND IS
RECEIVED BY YOU AFTER SAID 9:00 A.M., SEATTLE TIME, ON A BUSINESS DAY,
YOU MUST MAKE PAYMENT ON THIS DEMAND AT OR BEFORE 11:00 A.M., SEATTLE
TIME, ON THE BUSINESS DAY FOLLOWING SAID BUSINESS DAY.
[INSERT NAME OF BENEFICIARY]
[FOR SIGNED DEMANDS ONLY, INSERT SIGNATURE AND DATE]
13
------------------------------------
KeyBank National Association
Letter of Credit No. WSL ____
Page 14 of 19
------------------------------------
ANNEX E
To: KEYBANK NATIONAL ASSOCIATION
International Division, 000 Xxxxx Xxxxxx, 00xx Floor
Mailcode WA-31-10-5260
Xxxxxxx, XX 00000
Re: KeyBank National Association
Irrevocable Letter of Credit No. WSL ______________
FOR THE URGENT ATTENTION OF LETTER OF CREDIT MANAGER.
[INSERT NAME OF BENEFICIARY] (THE "TRUSTEE") HEREBY CERTIFIES TO KEYBANK
NATIONAL ASSOCIATION (THE "BANK") WITH REFERENCE TO IRREVOCABLE LETTER OF CREDIT
NO. WSL ________________ (THE "LETTER OF CREDIT"; THE TERMS THE "BONDS",
"BUSINESS DAY" AND THE "INDENTURE" USED HEREIN SHALL HAVE THEIR RESPECTIVE
MEANINGS SET FORTH IN THE LETTER OF CREDIT) THAT:
(1) THE TRUSTEE IS THE TRUSTEE OR A SUCCESSOR TRUSTEE UNDER THE INDENTURE.
(2) THE TRUSTEE IS MAKING A DEMAND FOR PAYMENT UNDER THE LETTER OF CREDIT
WITH RESPECT TO THE PAYMENT, AT STATED MATURITY, UPON ACCELERATION
FOLLOWING AN EVENT OF DEFAULT, OR UPON REDEMPTION AS A WHOLE, OF THE
TOTAL UNPAID PRINCIPAL OF, AND UNPAID INTEREST ON, ALL OF THE BONDS
WHICH ARE PRESENTLY OUTSTANDING.
(3) THE AMOUNT OF THIS DEMAND FOR PAYMENT WAS COMPUTED IN ACCORDANCE WITH
THE TERMS AND CONDITIONS OF THE BONDS AND THE INDENTURE AND IS
DEMANDED IN ACCORDANCE WITH THE INDENTURE, WHICH AMOUNT PLEASE REMIT
TO THE UNDERSIGNED AS FOLLOWS:
[INSERT REMITTANCE INSTRUCTIONS].
(4) THE AMOUNT HEREBY DEMANDED UNDER THE LETTER OF CREDIT IS $[INSERT
AMOUNT WHICH IS THE SUM OF THE TWO AMOUNTS SET FORTH IN PARAGRAPH 5,
BELOW].
(5) THE AMOUNT OF THIS DEMAND IS EQUAL TO THE SUM OF (A) $[INSERT AMOUNT]
BEING DRAWN IN RESPECT OF THE PAYMENT OF UNPAID PRINCIPAL OF THE BONDS
AND (B) $[INSERT AMOUNT] BEING DRAWN IN RESPECT OF THE PAYMENT OF
UNPAID INTEREST ON THE BONDS.
14
------------------------------------
KeyBank National Association
Letter of Credit No. WSL ____
Page 15 of 19
------------------------------------
(6) THE TRUSTEE HAS CONTACTED OR ATTEMPTED TO CONTACT BY TELEPHONE AND
TELEFACSIMILE AN OFFICER OF THE BANK'S LETTER OF CREDIT OFFICE IN
SEATTLE, WASHINGTON REGARDING THIS DEMAND.
(7) IF THIS DEMAND IS RECEIVED BY YOU AT OR BEFORE NOON, SEATTLE TIME ON A
BUSINESS DAY, YOU MUST MAKE PAYMENT ON THIS DEMAND AT OR BEFORE 10:00
A.M., SEATTLE TIME, ON THE NEXT BUSINESS DAY. IF THIS DEMAND IS
RECEIVED BY YOU AFTER NOON, SEATTLE TIME, ON A BUSINESS DAY, YOU MUST
MAKE PAYMENT ON THIS DEMAND AT OR BEFORE 10:00 A.M., SEATTLE TIME, ON
THE SECOND BUSINESS DAY FOLLOWING SUCH BUSINESS DAY.
[INSERT NAME OF BENEFICIARY]
[FOR SIGNED DEMANDS ONLY, INSERT SIGNATURE AND DATE]
15
------------------------------------
KeyBank National Association
Letter of Credit No. WSL ____
Page 16 of 19
------------------------------------
ANNEX F
To: KEYBANK NATIONAL ASSOCIATION
International Division, 000 Xxxxx Xxxxxx, 00xx Floor
Mailcode WA-31-10-5260
Xxxxxxx, XX 00000
Re: KeyBank National Association
Irrevocable Letter of Credit No. WSL ______________
FOR THE URGENT ATTENTION OF LETTER OF CREDIT MANAGER.
[INSERT NAME OF BENEFICIARY] (THE "TRUSTEE") HEREBY CERTIFIES TO KEYBANK
NATIONAL ASSOCIATION (THE "BANK") WITH REFERENCE TO IRREVOCABLE LETTER OF CREDIT
NO. WSL ______________ (THE "LETTER OF CREDIT"; THE TERMS THE "BONDS", "BUSINESS
DAY" AND THE "INDENTURE" USED HEREIN SHALL HAVE THEIR RESPECTIVE MEANINGS SET
FORTH IN THE LETTER OF CREDIT) THAT:
(1) THE TRUSTEE IS THE TRUSTEE OR A SUCCESSOR TRUSTEE UNDER THE INDENTURE.
(2) THE TRUSTEE IS MAKING A DEMAND FOR PAYMENT UNDER THE LETTER OF CREDIT
WITH RESPECT TO THE PAYMENT, ON AN INTEREST PAYMENT DATE (AS DEFINED
IN THE INDENTURE), OF UNPAID INTEREST WITH RESPECT TO THE BONDS.
(3) THE AMOUNT OF THIS DEMAND FOR PAYMENT WAS COMPUTED IN ACCORDANCE WITH
THE TERMS AND CONDITIONS OF THE BONDS AND THE INDENTURE AND IS
DEMANDED IN ACCORDANCE WITH THE INDENTURE, WHICH AMOUNT PLEASE REMIT
TO THE UNDERSIGNED AS FOLLOWS: [INSERT REMITTANCE INSTRUCTIONS].
(4) THE AMOUNT HEREBY DEMANDED UNDER THE LETTER OF CREDIT IS $[INSERT
AMOUNT].
(5) THE TRUSTEE HAS CONTACTED OR ATTEMPTED TO CONTACT BY TELEPHONE AND
TELEFACSIMILE AN OFFICER OF THE BANK'S LETTER OF CREDIT OFFICE IN
SEATTLE, WASHINGTON REGARDING THIS DEMAND AT LEAST ONE (1) BUSINESS
DAY PRIOR TO THIS DEMAND.
(6) IF THIS DEMAND IS RECEIVED BY YOU AT OR BEFORE NOON, SEATTLE TIME ON A
BUSINESS DAY, YOU MUST MAKE PAYMENT ON THIS
16
------------------------------------
KeyBank National Association
Letter of Credit No. WSL ____
Page 17 of 19
------------------------------------
DEMAND AT OR BEFORE 10:00 A.M., SEATTLE TIME, ON THE NEXT BUSINESS
DAY. IF THIS DEMAND IS RECEIVED BY YOU AFTER NOON, SEATTLE TIME, ON A
BUSINESS DAY, YOU MUST MAKE PAYMENT ON THIS DEMAND AT OR BEFORE 10:00
A.M., SEATTLE TIME, ON THE SECOND BUSINESS DAY FOLLOWING SUCH BUSINESS
DAY.
[INSERT NAME OF BENEFICIARY]
[FOR SIGNED DEMANDS ONLY, INSERT SIGNATURE AND DATE]
17
------------------------------------
KeyBank National Association
Letter of Credit No. WSL ____
Page 18 of 19
------------------------------------
ANNEX G
To: KEYBANK NATIONAL ASSOCIATION
International Division, 000 Xxxxx Xxxxxx, 00xx Floor
Mailcode WA-31-10-5260
Xxxxxxx, XX 00000
Re: KeyBank National Association
Irrevocable Letter of Credit No. WSL ______________
Ladies and Gentlemen:
For value received, we hereby irrevocably assign and transfer all of our
rights under the above-captioned Letter of Credit, as heretofore and hereafter
amended, extended or increased, to:
______________________________
[Name of Transferee]
______________________________
______________________________
______________________________
[Address of Transferee]
By this transfer, all of our rights in the Letter of Credit are transferred
to the transferee, and the transferee shall have sole rights as beneficiary
under the Letter of Credit, including sole rights relating to any amendments,
whether increases or extensions or other amendments, and whether now existing or
hereafter made. You are hereby irrevocably instructed to advise future
amendment(s) of the Letter of Credit to the transferee without our consent or
notice to us.
The original of such Letter of Credit is returned herewith, and in
accordance therewith we ask you to endorse the within transfer on the reverse
thereof, and forward it directly to the Transferee with your customary notice of
transfer, or issue a replacement Letter of Credit to the Transferee as provided
therein.
18
------------------------------------
KeyBank National Association
Letter of Credit No. WSL ____
Page 19 of 19
------------------------------------
You are hereby advised that the transferee named above has succeeded BNY
Western Trust Company or a successor trustee, as Trustee under the Indenture of
Trust dated as of November 1, 1999 as may be supplemented from time to time (the
"Indenture") between the Port of Xxxxxx Economic Development Corporation (the
"Issuer") and BNY Western Trust Company, as Trustee, pursuant to which U.S.
$24,930,000 in aggregate principal amount of Solid Waste Rate Revenue Bonds,
1999 (ATG Inc. Project) were issued.
Very truly yours,
[Insert Name of Transferor]
By: _________________________
[Insert Name and Title]
TRANSFEROR'S SIGNATURE GUARANTEED
By: ___________________________
[Bank Name]
By: ________________________
[Insert Name and Title]
By its signature below, the undersigned transferee acknowledges that it has
duly succeeded BNY Western Trust Company or a successor trustee as Trustee under
the Indenture.
[Insert Name of Transferee]
By:
[Insert Name and Title]
SECURITY AGREEMENT
THIS SECURITY AGREEMENT (the "Security Agreement") is made and dated as of
November 1, 1999 by and between ATG INC., a California corporation ("Debtor"),
and SANWA BANK CALIFORNIA, as agent (in such capacity, the "Agent") for the Bond
L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders under (and as
those terms and capitalized terms not otherwise defined herein are defined in)
that certain Credit and Reimbursement Agreement dated as of November 1, 1999 by
and among Debtor, the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing
Bank and the Lenders from time to time party thereto (as amended, extended and
replaced from time to time, the "Credit Agreement").
RECITALS
A. Pursuant to the Credit Agreement, the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank and the Lenders have agreed to extend credit to Debtor
from time to time.
B. As a condition precedent to the obligation to continue to extend credit
under the Credit Agreement and as security for the payment and performance of
Debtor's Obligations, Debtor is required to execute and deliver this Security
Agreement, and to grant to the Agent on behalf of itself, the Bond L/C Issuing
Bank, the Standard L/C Issuing Bank and the Lenders (collectively, the "Secured
Parties") and to create a security interest in certain property of Debtor, as
hereinafter provided.
NOW, THEREFORE, in consideration of the above Recitals and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Appointment of Agent. Pursuant to Paragraph 14 of the Credit
--------------------
Agreement, each Secured Party has appointed the Agent as its agent under the
Loan Documents (including, without limitation, this Security Agreement), and the
Agent has accepted such appointment. The Agent shall act as secured party,
agent, bailee and custodian for the exclusive benefit of the Secured Parties
with respect to the Collateral (as defined below). The Agent agrees that the
Agent will act with respect to the Collateral for the exclusive benefit of the
Secured Parties and is not, and shall not at any time in the future be, in any
manner or to any extent, subject to the direction or control of Debtor except as
expressly permitted hereunder, under the other Loan Documents or as required by
law.
2. Grant of Security Interest. Debtor hereby pledges, assigns and grants
--------------------------
to the Agent, for the benefit of the Secured Parties, a security interest in the
property
1
described in Paragraph 3 below (collectively and severally, the "Collateral") to
secure payment and performance of the Obligations.
3. Collateral. The Collateral shall consist of all right, title and
----------
interest of Debtor in and to the following:
3(a) All now existing and hereafter arising receivables, accounts,
contracts, contract rights, chattel paper, documents, instruments, investment
property, and general intangibles of Debtor (including U.S. Governmental claims
and receivables governed by the Federal Assignment of Claims Act of 1940, as
amended ("Assignment of Claims Act"), whether or not arising out of or in
connection with the sale or lease of goods or the rendering of services, and all
rights of Debtor now and hereafter arising in and to all security agreements,
guaranties, leases and other writings securing or otherwise relating to any such
receivables, accounts, contracts, contract rights, chattel paper, documents,
instruments and general intangibles;
3(b) All inventory of Debtor, now owned and hereafter acquired,
wherever located, including, without limitation, all merchandise, goods and
other personal property which are held for sale or lease, all raw materials,
work in process, materials used or consumed in Debtor's business and finished
goods, all goods in which Debtor has an interest in mass or a joint or other
interest or gifts of any kind (including goods in which Debtor has an interest
or right as consignee), and all goods which are returned to or repossessed by
Debtor, together with all additions and accessions thereto and replacements
therefor and products thereof and documents therefor;
3(c) All equipment of Debtor, now owned and hereafter acquired,
wherever located, and all parts thereof and all accessions, additions,
attachments, improvements, substitutions and replacements thereto and therefor,
including, without limitation, all machinery, tools, dies, blueprints,
catalogues, computer hardware and software, furniture, furnishings and fixtures;
3(d) All now existing and hereafter acquired Computer Hardware and
Software Collateral, Copyright Collateral, Patent Collateral, Trademark
Collateral and Trade Secrets Collateral (as those terms are defined in Paragraph
13 below) (collectively, the "Intellectual Property Collateral");
3(e) All deposit accounts, now existing and hereafter arising or
established, maintained in Debtor's name with any financial institution,
including, without limitation, those accounts described more particularly on
Schedule 1 attached hereto, and any and all funds at any time held therein and
----------
all certificates, instruments and other writings, if any, from time to time
representing, evidencing or deposited into such accounts, and all interest,
dividends, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of the foregoing;
2
3(f) All now existing and hereafter acquired books, records,
writings, data bases, information and other property relating to, used or useful
in connection with, embodying, incorporating or referring to, any of the
foregoing Collateral;
3(g) All other property of Debtor now or hereafter in the
possession, custody or control of the Agent, and all property of Debtor in which
the Agent now has or hereafter acquires a security interest for the benefit of
the Secured Parties;
3(h) Rights under insurance policies, letter of credit rights, and
supporting obligations, including without limitation guaranties;
3(i) All now existing and hereafter acquired cash and cash
equivalents held by Debtor not otherwise included in the foregoing Collateral;
and
3(j) All products and proceeds of the foregoing Collateral. For
purposes of this Security Agreement, the term "proceeds" includes whatever is
receivable or received when Collateral or proceeds thereof is sold, collected,
exchanged or otherwise disposed of, whether such disposition is voluntary or
involuntary, and includes, without limitation, all rights to payment, including
return premiums, with respect to any insurance relating thereto.
Nothing herein is intended to grant to the Secured Parties a Security
Interest in specific assets, if any, of Debtor that the Secured Parties may
agree from time to time, pursuant to the Credit Agreement, shall not constitute
Collateral.
4. Debtor Obligations. The Obligations secured by this Security Agreement
------------------
shall consist of all Obligations of Debtor as defined in the Credit Agreement,
including, without limitation all obligations under each other Loan Document,
whether now existing or hereafter arising, voluntary or involuntary, whether or
not jointly owed with others, direct or indirect, absolute or contingent,
liquidated or unliquidated, and whether or not from time to time decreased or
extinguished and later increased, created or incurred.
5. Representations and Warranties. In addition to all representations and
------------------------------
warranties of Debtor set forth in the other Loan Documents, which are
incorporated herein by this reference, Debtor hereby represents and warrants
that:
5(a) Except as permitted by Paragraph 12(a) of the Credit Agreement
and except for the Lien in favor of the Agent for the benefit of the Secured
Parties granted hereunder, no Person has (or, in the case of after-acquired
Collateral, at the time Debtor acquires rights therein, will have) any right,
title, claim or interest (by way of security interest or other Lien or charge)
in, against or to the Collateral.
5(b) All information heretofore, herein or hereafter supplied to
the Agent or any Secured Party by or on behalf of Debtor with respect to the
Collateral is accurate and complete in all material respects.
3
5(c) Debtor has delivered to the Agent all instruments, chattel
paper and other items of Collateral in which a security interest is or may be
perfected by possession, together with such additional writings, including,
without limitation, assignments, with respect thereto as the Agent shall
request.
6. Covenants and Agreements of Debtor. In addition to all covenants and
----------------------------------
agreements of Debtor set forth in the other Loan Documents, which are
incorporated herein by this reference, Debtor hereby agrees, at no cost or
expense to the Agent or any of the Secured Parties:
6(a) To do all acts that may be necessary to maintain, preserve and
protect the Collateral and the priority and perfected nature of the security
interest of the Agent for the benefit of the Secured Parties therein;
6(b) With respect to Collateral in possession of a third party,
upon the written request of the Agent, to join with the Agent in notifying the
third party of the Secured Parties' security interest and obtaining an
acknowledgment from the third party that it is holding the Collateral for the
benefit of the Secured Parties;
6(c) Upon the written request of the Agent, to cooperate with the
Agent in obtaining control agreements in form and substance satisfactory to the
Agent with respect to Collateral consisting of deposit accounts, investment
property, letter of credit rights, and electronic chattel paper;
6(d) Not to create any chattel paper without placing a legend on
the chattel paper acceptable to the Agent indicating that the Secured Parties
have a security interest in the chattel paper;
6(e) Not to use or permit any Collateral to be used unlawfully or
in violation of any provision of this Security Agreement, any other agreement
with the Agent and/or the Secured Parties related hereto, or any law, rule,
regulation, order, writ, judgment, injunction, decree or award binding on Debtor
or affecting any of the Collateral or any contractual obligation affecting any
of the Collateral;
6(f) To pay promptly when due all taxes, assessments, charges,
encumbrances and Liens now or hereafter imposed upon or affecting any
Collateral;
6(g) To appear in and defend any action or proceeding which may
affect its title to or the Agent's interest on behalf of the Secured Parties in
the Collateral;
6(h) Not to surrender or lose possession of (other than to the
Agent), sell, encumber, lease, rent, or otherwise dispose of or transfer any
Collateral or right or interest therein except as expressly provided herein and
in the other Loan Documents, and to keep the Collateral free of all levies and
security interests or other Liens or charges except as permitted by the Credit
Agreement; provided, however,
4
that, unless an Event of Default shall have occurred and be continuing, Debtor
may, in the ordinary course of business, sell or lease any Collateral consisting
of inventory;
6(i) To account fully for and promptly deliver to the Agent, in the
form received, all documents, chattel paper, instruments and agreements
constituting Collateral hereunder and all proceeds of the Collateral received,
all endorsed to the Agent or in blank, as requested by the Agent, and until so
delivered all such documents, instruments, agreements and proceeds shall be held
by Debtor in trust for the Agent for the benefit of the Secured Parties,
separate from all other property of Debtor;
6(j) To keep separate, accurate and complete records of the
Collateral and to provide the Agent and each of the Secured Parties with such
records and such other reports and information relating to the Collateral as the
Agent or any Secured Party may reasonably request from time to time;
6(k) To give the Agent thirty (30) days prior written notice of any
change in Debtor's chief place of business, Debtor's state of incorporation or
legal name or trade name(s) or style(s) referred to in Paragraph 11 below;
6(l) To keep the records concerning the Collateral at the
location(s) referred to in Paragraph 11 below and not to remove such records
from such location(s) without the prior written consent of the Agent;
6(m) To keep the Collateral at the location(s) referred to in
Paragraph 11 below and not to remove the Collateral from such location(s)
without the prior written consent of the Agent;
6(n) To keep the Collateral in good condition and repair and not to
cause or permit any waste or unusual or unreasonable depreciation of the
Collateral;
6(o) Unless Debtor shall either reasonably and in good faith
determine that such Collateral is of negligible economic value to Debtor or that
there is a valid purpose to do otherwise not to: (1) permit any Patent
Collateral to lapse or become abandoned or dedicated to the public or otherwise
be unenforceable; (2) fail to continue to use any of the Trademark Collateral in
order to maintain all of the Trademark Collateral in full force free from any
claim of abandonment for non-use, (3) fail to maintain as in the past the
quality of products and services offered under all of the Trademark Collateral,
(4) fail to employ all of the Trademark Collateral registered with any Federal
or state or foreign authority with an appropriate notice of such registration,
(5) adopt or use any other Trademark which is confusingly similar or a colorable
imitation of any of the Trademark Collateral, (6) use any of the Trademark
Collateral registered with any Federal or state or foreign authority except for
the uses for which registration or application for registration of all of the
Trademark Collateral has been made, or (7) do or permit any act or knowingly
omit to do any act whereby any of the Trademark Collateral may lapse or become
invalid or unenforceable; (viii) do or permit
5
any act or knowingly omit to do any act whereby any of the Copyright Collateral
or any of the Trade Secrets Collateral may lapse or become invalid or
unenforceable or placed in the public domain except upon expiration of the end
of an unrenewable term of a registration thereof;
6(p) To notify the Agent immediately if it knows, or has reason to
know, that any application or registration relating to any material item of the
Intellectual Property Collateral may become abandoned or dedicated to the public
or placed in the public domain or invalid or unenforceable, or of any adverse
determination or development (including the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, the United States Copyright Office or any foreign counterpart
thereof or any court) regarding Debtor's ownership of any of the Intellectual
Property Collateral, its right to register the same or to keep and maintain and
enforce the same;
6(q) Not to file an application for the registration of any
Intellectual Property Collateral with the United States Patent and Trademark
Office, the United States Copyright Office or any similar office or agency in
any other country or any political subdivision thereof, unless it promptly
informs the Agent, and upon request of the Agent, executes and delivers any and
all agreements, instruments, documents and papers as the Agent may reasonably
request to evidence the Agent's security interest in such Intellectual Property
Collateral and the goodwill and general intangibles of Debtor relating thereto
or represented thereby;
6(r) With respect to Intellectual Property that is or becomes
Collateral hereunder, promptly to execute and deliver to the Agent agreements in
the forms of Exhibit A, Exhibit B, Exhibit C and Exhibit D hereto; and
--------- ---------- --------- ---------
6(s) With respect to rights of the Agent in Collateral that are or
become subject to compliance with the Assignment of Claims Act, promptly to
deliver to the Agent an agreement in the form of Exhibit E hereto, fully
---------
executed and acknowledged on behalf of the United States or appropriate agency
or instrumentality thereof.
7. Authorized Action by Agent. Debtor hereby agrees that:
--------------------------
7(a) From time to time, without presentment, notice or demand, and
without affecting or impairing in any way the rights of the Agent with respect
to the Collateral, the obligations of Debtor hereunder or the Obligations, the
Agent may, but shall not be obligated to and shall incur no liability to Debtor,
any Secured Party or any third party for failure to take any action which Debtor
is obligated by this Security Agreement to do and to exercise such rights and
powers as Debtor might exercise with respect to the Collateral.
6
7(b) The Agent may execute in its own name or in the name of Debtor
and file one or more financing statements describing the Collateral in such
jurisdictions as deemed appropriate by the Agent from time to time.
7(c) The Agent may file photostatic or other copies of financing
statements signed or authenticated by Debtor or of this Security Agreement in
such jurisdictions as deemed appropriate by the Agent from time to time.
7(d) Debtor hereby irrevocably appoints the Agent as its attorney-
in-fact to exercise such rights and powers, including without limitation, to
collect by legal proceedings or otherwise and endorse, receive and receipt for
all dividends, interest, payments, proceeds and other sums and property now or
hereafter payable on or on account of the Collateral.
7(e) Enter into any extension, reorganization, deposit, merger,
consolidation or other agreement pertaining to, or deposit, surrender, accept,
hold or apply other property in exchange for the Collateral.
7(f) Insure, process and preserve the Collateral.
7(g) Transfer the Collateral to its own or its nominee's name.
7(h) Make any compromise or settlement, and take any action it
deems advisable, with respect to the Collateral.
7(i) Subject to the provisions of Paragraph 8 below, notify any
obligor on any Collateral to make payment directly to the Agent.
8. Collection of Collateral Payments.
---------------------------------
8(a) Debtor shall, at its sole cost and expense, endeavor to obtain
payment, when due and payable, of all sums due or to become due with respect to
any Collateral ("Collateral Payments" or a "Collateral Payment"), including,
without limitation, the taking of such action with respect thereto as the Agent
or any Secured Party may reasonably request, or, in the absence of such request,
as Debtor may reasonably deem advisable; provided, however, that Debtor shall
not, without the prior written consent of the Agent and the Secured Parties,
grant or agree to any rebate, refund, compromise or extension with respect to
any Collateral Payment or accept any prepayment on account thereof. Upon the
request of the Agent at the direction of all the Secured Parties, Debtor will
notify and direct any party who is or might become obligated to make any
Collateral Payment, to make payment thereof to such accounts as the Agent may
direct in writing and to execute all instruments and take all action required by
the Agent to ensure the rights of the Agent for the benefit of the Secured
Parties in any Collateral subject to the Federal Assignment of Claims Act of
1940, as amended.
7
8(b) Upon the request of the Agent, which request will be made only
following the occurrence of an Event of Default, Debtor will, forthwith upon
receipt, transmit and deliver to the Agent, in the form received, all cash,
checks, drafts and other instruments for the payment of money (properly endorsed
where required so that such items may be collected by the Agent) which may be
received by Debtor at any time as payment on account of any Collateral Payment
and if such request shall be made, until delivery to the Agent, such items will
be held in trust for the Agent and the Secured Parties and will not be
commingled by Debtor with any of its other funds or property. Thereafter, the
Agent is hereby authorized and empowered to endorse the name of Debtor on any
check, draft or other instrument for the payment of money received by the Agent
on account of any Collateral Payment if the Agent believes such endorsement is
necessary or desirable for purposes of collection.
8(c) Debtor will indemnify and save harmless the Agent from and
against all reasonable liabilities and expenses on account of any adverse claim
asserted against the Agent relating to any moneys received by the Agent on
account of any Collateral Payment and such obligation of Debtor shall continue
in effect after and notwithstanding the discharge of Debtor Obligations and the
release of the security interest granted in Paragraph 2 above.
9. Power of Attorney.
-----------------
9(a) Debtor hereby grants to the Agent for the benefit of the
Secured Parties an exclusive, irrevocable power of attorney, with full power and
authority in the place and stead of Debtor to take all such action permitted
under Paragraph 7. Debtor agrees to reimburse the Agent upon demand for any
costs and expenses, including, without limitation, attorneys' fees, the Agent
may incur while acting as Debtor's attorney-in-fact hereunder, all of which
costs and expenses are included in the Obligations secured hereby. It is further
agreed and understood between the parties hereto that such care as the Agent
gives to the safekeeping of its own property of like kind shall constitute
reasonable care of the Collateral when in the Agent's possession; provided,
however, that the Agent shall not be required to make any presentment, demand or
protest, or give any notice and need not take any action to preserve any rights
against any prior party or any other person in connection with the Obligations
or with respect to the Collateral.
9(b) Debtor hereby grants to the Secured Parties a present,
irrevocable, paid-up royalty-free world wide and non-exclusive license under all
Intellectual Property Collateral owned by Debtor or licensed to Debtor with the
right to sublicense (both on the date hereof and in the future) to make, have
made, reproduce, have reproduced, prepare derivative works of, perform, or
display (publicly or otherwise) or otherwise use, sell, lease or distribute any
products or processes, except Intellectual Property Collateral as to which the
Secured Parties have a perfected security interest that permits exercise of the
remedies set forth herein upon an Event of Default. The Secured Parties shall
have the right to sublicense (with the right of any sublicensee to grant further
sublicenses) or unconditionally assign such license without Debtor's
8
consent, limited only in the case of licenses to Debtor of intellectual property
owned by unaffiliated third parties to the extent permitted in the applicable
license. Such license may be subject to the payment of royalties by Debtor to
third parties.
10. Remedies. Upon the occurrence of an Event of Default, the Agent may,
--------
without notice to or demand on Debtor and in addition to all rights and remedies
available to the Agent and the Secured Parties with respect to the Obligations,
at law, in equity or otherwise, do any one or more of the following:
10(a) Foreclose or otherwise enforce the Agent's security interest
in any manner permitted by law or provided for in this Security Agreement.
10(b) Sell, lease or otherwise dispose of any Collateral at one or
more public or private sales at the Agent's place of business or any other place
or places, including, without limitation, any broker's board or securities
exchange, whether or not such Collateral is present at the place of sale, for
cash or credit or future delivery, on such terms and in such manner as the Agent
may determine.
10(c) Recover from Debtor all costs and expenses, including,
without limitation, reasonable attorneys' fees (including the allocated cost of
internal counsel), incurred or paid by the Agent or any Secured Party in
exercising any right, power or remedy provided by this Security Agreement.
10(d) Require Debtor to assemble the Collateral and make it
available to the Agent at a place to be designated by the Agent.
10(e) Enter onto property where any Collateral is located and take
possession thereof with or without judicial process.
10(f) Prior to the disposition of the Collateral, store, process,
repair or recondition it or otherwise prepare it for disposition in any manner
and to the extent the Agent deems appropriate and in connection with such
preparation and disposition, without charge, use any trademark, tradename,
copyright, patent or technical process used by Debtor.
Debtor shall be given five (5) Business Days' prior notice of the time and place
of any public sale or of the time after which any private sale or other intended
disposition of Collateral is to be made, which notice Debtor hereby agrees shall
be deemed reasonable notice thereof. Upon any sale or other disposition
pursuant to this Security Agreement, the Agent shall have the right to deliver,
assign and transfer to the purchaser thereof the Collateral or portion thereof
so sold or disposed of. Each purchaser at any such sale or other disposition
(including the Agent) shall hold the Collateral free from any claim or right of
whatever kind, including any equity or right of redemption of Debtor and Debtor
specifically waives (to the extent permitted by law) all rights of redemption,
stay or appraisal which it has or may have under any rule of law or statute now
existing or hereafter adopted.
9
11. Place of Business; Collateral Location; Records Location. Debtor
--------------------------------------------------------
represents that its chief place of business is as set forth on Schedule 2
----------
attached hereto; that the only trade name(s) or style(s) used by Debtor are set
forth on said Schedule 2; and that, except as otherwise disclosed to the Agent
----------
in writing prior to the date hereof, the Collateral and Debtor's records
concerning the Collateral are located at its chief place of business.
12. Miscellaneous Provisions.
------------------------
12(a) Binding on Successors and Assigns. All provisions contained
---------------------------------
in this Security Agreement or any document or agreement referred to herein or
relating hereto shall inure to the benefit of the Agent and the Secured Parties
and their respective successors and assigns, and shall be binding upon the
Debtor, its successors and assigns.
12(b) Amendment. This Security Agreement may not be amended or
---------
terms or provisions hereof waived unless such amendment or waiver is in writing
and signed by the Agent and the Debtor.
12(c) Cumulative Rights; No Waiver. The rights, powers and remedies
----------------------------
of the Agent, and the Secured Parties hereunder are cumulative and in addition
to all rights, power and remedies provided under any and all agreements between
the Debtor and any of such Persons relating hereto, at law, in equity or
otherwise. Any delay or failure by the Agent or the Secured Parties to exercise
any right, power or remedy shall not constitute a waiver thereof by such
Persons, and no single or partial exercise by any of such Persons of any right,
power or remedy shall preclude other or further exercise thereof or any exercise
of any other rights, powers or remedies.
12(d) Entire Agreement. This Security Agreement and the documents
----------------
and agreements referred to herein embody the entire agreement and understanding
between the parties hereto and supersede all prior agreements and understandings
relating to the subject matter hereof and thereof.
12(e) Survival. All representations, warranties, covenants and
--------
agreements herein contained on the part of the Debtor shall survive the
termination of this Security Agreement and shall be effective until the
Obligations are paid and performed in full or longer as expressly provided
herein.
12(f) Notices. All notices given by any party to the others shall
-------
be in writing unless otherwise provided for herein, delivered by facsimile
transmission, by personal delivery or by overnight courier, addressed to the
party as set forth in the Credit Agreement.
12(g) Governing Law. This Security Agreement shall be governed by
-------------
and construed in accordance with the internal laws of the State of California
without giving effect to its choice of law rules.
12(h) Counterparts. This Security Agreement may be executed in any
------------
number of counterparts, all of which together shall constitute one agreement.
10
12(i) Severability. The illegality or unenforceability of any
------------
provision of this Security Agreement or any instrument or agreement required
hereunder shall not in any way affect or impair the legality or enforceability
of the remaining provisions hereof or thereof.
12(j) Waiver of Hearing. Debtor expressly waives any
-----------------
constitutional or other right to a judicial hearing prior to the time the Agent
takes possession or disposes of the Collateral upon the occurrence of an Event
of Default.
13. Intellectual Property Collateral. For purposes of this Security
--------------------------------
Agreement, the following capitalized terms shall have the following meanings:
"Computer Hardware and Software Collateral" means all of Debtor's
-----------------------------------------
right, title and interest in all now existing and hereafter created or acquired:
(a) Computer and other electronic data processing hardware,
integrated computer systems, central processing units, memory units, display
terminals, printers, features, computer elements, card readers, tape drives,
hard and soft disk drives, cables, electrical supply hardware, generators, power
equalizers, accessories and all peripheral devices and other related computer
hardware;
(b) Software programs (including both source code, object code and
all related applications and data files), whether owned, licensed or leased,
designed for use on the computers and electronic data processing hardware
described in subparagraph (a) above;
(c) Firmware associated therewith;
(d) Documentation (including flow charts, logic diagrams, manuals,
guides and specifications) with respect to such hardware, software and firmware
described in subparagraph (a) through (c) above; and
(e) Rights with respect to all of the foregoing, including, without
limitation, any and all of Debtor's copyrights, licenses, options, warranties,
service contracts, program services, test rights, renewal rights and
indemnifications and any substitutions, replacements, additions or model
conversions of any of the foregoing.
"Copyright Collateral" means all of Debtor's right, title and interest in
--------------------
now existing and hereafter created or acquired copyrights and all semi-conductor
chip product mask works of Debtor, whether statutory or common law, registered
or unregistered, now or hereafter in force throughout the world including,
without limitation, all of Debtor's right, title and interest in and to all
copyrights and mask works registered in the United States Copyright Office or
anywhere else in the world, and all applications for registration thereof,
whether pending or in preparation, all copyright and mask work licenses, the
right of Debtor to xxx for past, present and future infringements of any
thereof, all rights of Debtor corresponding thereto throughout the world, all
extensions and renewals of any thereof and all proceeds of the
11
foregoing, including, without limitation, licenses, royalties, income, payments,
claims damages and proceeds of suit.
"Patent Collateral" means all of Debtor's right, title and interest in now
-----------------
existing and hereafter created or acquired:
(a) Letters patent and applications for letters patent throughout
the world, including all of Debtor's patent applications in preparation for
filing anywhere in the world and with the United States Patent and Trademark
Office;
(b) Patent licenses;
(c) Reissues, divisions, continuations, continuations-in-part,
extensions, renewals and reexaminations of any of the items described in clauses
-------
(a) and (b); and
--- ---
(d) Proceeds of, and rights associated with, the foregoing
(including license royalties and proceeds of infringements suits), the right of
Debtor to xxx third parties for past, present or future infringements of any
patent or patent application of Debtor, and for breach of enforcement of any
patent license, and all rights corresponding thereto throughout the world.
"Trademark Collateral" means all of Debtor's right, title and interest in
--------------------
now existing and hereafter created or acquired:
(a) Trademarks, trade names, corporate names, business names,
fictitious business names, trade styles, service marks, certification makers,
collective marks, logos, other source of business identifiers, prints and labels
on which any of the foregoing have appeared or appear, designs and general
intangibles of a like nature (all of the foregoing items in this clause (a)
being collectively called a "Trademark"), now existing anywhere in the world or
hereafter adopted or acquired, whether currently in use or not, all
registrations and recordings thereof and all applications in connection
therewith, whether pending or in preparation for filing, including
registrations, recordings and applications in the United States Patent and
Trademark Office or in any office or agency of the United States of America or
any State thereof or any foreign country;
(b) Trademark licenses;
(c) Reissues, extensions or renewals of any of the items described
in clauses (a) and (b);
----------- ---
(d) The goodwill of the business of Debtor connected with the use
of, and symbolized by the items described in, clauses (a) and (b), and
----------- ---
12
(e) Proceeds of, and rights of Debtor associated with, the
foregoing, including any claim by Debtor against third parties for past, present
or future infringement or dilution of any Trademark, Trademark registration or
Trademark license, or for any injury to the goodwill associated with the use of
any such Trademark or for breach or enforcement of any Trademark license.
"Trade Secrets Collateral" means common law and statutory trade secrets and
------------------------
all other confidential or proprietary or useful information and all know-how
obtained by or used in or contemplated at any time for use in the business of
Debtor (all of the foregoing being collectively called a "Trade Secret"),
whether or not such Trade Secret has been reduced to a writing or other tangible
form including all documents and things embodying, incorporating or referring in
any way to such Trade Secret, all Trade Secret licenses, including the right to
xxx for and to enjoin and to collect damages for the actual or threatened
misappropriation of any Trade Secret and for the breach or enforcement of any
such Trade Secret license.
13
EXECUTED as of the day and year first above written.
ATG INC., a California corporation
By: /s/ Xxxxx Xxxx
------------------------------------
Name: Xxxxx Xxxx
------------------------------------
Title: Executive Vice President
------------------------------------
SANWA BANK CALIFORNIA, as Agent
By: /s/ Xxxxxxxx Xxxxxx
------------------------------------
Name: Xxxxxxxx Xxxxxx
------------------------------------
Title: Vice President/Manager
------------------------------------
S
LIST OF SCHEDULES AND EXHIBITS
Schedule 1 Existing Deposit Accounts
Schedule 2 Locations of Equipment, Inventory, Places of Business, Chief
Executive Office, and Books and Records and Tradenames
Exhibit A Supplemental Security Agreement (Trademarks)
Exhibit B Supplemental Security Agreement (Patents)
Exhibit C Supplemental Security Agreement (Copyrights)
Exhibit D Irrevocable Power of Attorney
Exhibit E Notice of Assignment of Governmental Claims
Schedule 1
----------
to Security Agreement
---------------------
Deposit Accounts
as of October 29, 1999
for Richland Washington
Institution where Account Number Amount in Account
----------------- -------------- -----------------
Account is held
---------------
Xxxxx Fargo Bank 0359-633633 $ 23,754.57
Schedule 1
----------
to Security Agreement
---------------------
Deposit Accounts
(as of October 29, 1999)
for Catalytics, Tennessee
Institution where Account Number Amount in Account
----------------- -------------- -----------------
Account is held
---------------
Sanwa Bank-Catalytics 1137-59158 $ -
Sanwa Bank-Catalytics Restricted 1130-58587 $ 55,907.96
XXX Xxxxxxxxxxxx (Xxxxxxxxxx) XXXXX0000-0 $ 3,151.58
Schedule 1
----------
to Security Agreement
---------------------
Deposit Accounts
as of October 29, 1999
for Nuclear, Tennessee
Institution where Account Number Amount in Account
----------------- -------------- -----------------
Account is held
---------------
Sanwa Bank-Nuclear Services 1139-59157 $ -
Schedule 2
----------
To Security Agreement
---------------------
Locations of Equipment, Inventory, Places of Business,
Chief Executive Office and Books and Records and Tradenames
The equipment, inventory, books and records of ATG, Inc. and its subsidiaries
are located at the following places of business:
ATG Corporate Office ATG Nuclear Services
00000 Xxxxxxx Xxxx. 0000 Xxxx Xxxxx Xxxx
Xxxxxxx, XX 00000 Xxxxxxxx, XX 00000
(000) 000-0000/(000) 000-0000 (000) 000-0000
Fax: (000) 000-0000 Fax: (000) 000-0000
Fax: (000) 000-0000
ATG Richland Facility ATG Catalytics
0000 Xxxxxxxx Xxxx. 0000 Xxxx Xxxxx Xxxx
Xxxxxxxx, XX 00000 Xxxxxxxx, XX 00000
(000) 000-0000/(000) 000-0000 (000) 000-0000
Fax: (000) 000-0000 Fax: (000) 000-0000
Fax: (000) 000-0000
ATG Operations - Oak Ridge ATG Columbia Maintenance Fac.
000 Xxxxx Xxxxxx Xxxx 0000 Xxxxxxxx Xxxx
Xxx Xxxxx, XX 00000 Xxxxxxxx, XX 00000
(000) 000-0000/(000) 000-0000 (000) 000-0000
Fax: (000) 000-0000 Fax: (000) 000-0000
ATG Nuclear Services ATG - Hawaii
000 Xxxxx Xxxxxx Xxxx 0000 Xxxxxx Xxxxxx
Xxx Xxxxx, XX 00000 Suite 801 - Airport Center
(000) 000-0000/(000) 000-0000 Xxxxxxxx, XX 00000
Fax: (000) 000-0000 (000) 000-0000
Fax: (000) 000-0000
87
EXHIBIT A
---------
TO SECURITY AGREEMENT
---------------------
SUPPLEMENTAL SECURITY AGREEMENT
(Trademarks)
THIS SUPPLEMENTAL SECURITY AGREEMENT (the "Supplemental Trademark
Agreement") is made and dated this 1st day of November, 1999 by and between ATG
INC., a California corporation ("Debtor"), and SANWA BANK CALIFORNIA, as agent
(in such capacity, the "Agent") for itself, the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank and the Lenders under (and as those terms and
capitalized terms not otherwise defined herein are defined in) that certain
Credit and Reimbursement Agreement dated as of November 1, 1999 by and among
Debtor, the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and
the Lenders from time to time party thereto (as amended, extended and replaced
from time to time, the "Credit Agreement").
RECITALS
A. Pursuant to that certain Security Agreement dated as of even date
herewith between Debtor and the Agent (the "Security Agreement"), Debtor has
granted to the Agent a perfected security interest in certain assets of Debtor,
including, without limitation, all patents, trademarks, service marks, trade
names, copyrights, goodwill, licenses and other intellectual property owned by
Debtor or used in Debtor's business.
B. The parties hereto desire to supplement the Security Agreement as
it relates to certain of such intellectual property consisting generally of
trademarks and to create hereby a document appropriate for recordation in the
Patent and Trademark Office of the United States (the "PTO").
NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Confirmation of Grant of Security Interest. Debtor hereby
------------------------------------------
confirms the grant of security interest, pledge, assignment and mortgage set
forth in the Security Agreement and acknowledges that the Collateral (as defined
in the Security Agreement) described therein includes, without limitation, all
of Debtor's right, title and interest in the following (the "Trademark
Collateral"):
1
(a) All trademarks, service marks, designs, logos, indicia,
tradenames, corporate names, company names, business names, fictitious
business names, trade styles and other source, product and business
identifiers pertaining to the products, services and business of Debtor,
whether now owned or hereafter acquired, including, without limitation, the
trademarks specifically described on Schedule I attached hereto, as the
----------
same may be amended or replaced from time to time with the consent of the
Agent;
(b) All now existing and hereafter arising registrations and
applications for registration relating to any of the foregoing, all
renewals and extensions thereof throughout the world in perpetuity, and all
rights to make such applications and to renew and extend the same;
(c) All now existing and hereafter arising rights and licenses to
make, have made, use and/or sell any items disclosed and claimed by any of
the foregoing;
(d) All now existing and hereafter arising right (but not the
obligation) to register claims under any state, federal or foreign
trademark law or regulation;
(e) All now existing and hereafter arising rights, claims and
interests under licensing or other contracts pertaining to any of the
foregoing to the extent such rights are assignable;
(f) All now existing and hereafter arising documents, instruments and
agreements which reveal the name and address of sources of supply,
distribution methods and all terms of purchase, rental, license or use and
delivery for all materials, products and components used in connection with
any of the foregoing;
(g) All now existing and hereafter arising specifications as to and
quality control manuals used in connection with the operations conducted
under the name of or in connection with the foregoing;
(h) All now existing and hereafter arising goodwill associated with
any of the foregoing;
(i) All now existing and hereafter arising right (but not the
obligation) to xxx or bring opposition or cancellation proceedings in the
name of Debtor or the Agent for past, present and future infringements of
any of the foregoing;
(j) All products and proceeds of any of the foregoing.
2. Additional Representation and Warranty and Covenant. In addition to
---------------------------------------------------
all representations and warranties, covenants and agreements set forth in the
Security Agreement, Debtor hereby:
2
(a) Represents and warrants that Schedule I attached hereto sets
----------
forth an accurate and complete list of all trademarks owned by Debtor which
are registered with the PTO as of the date hereof; and
(b) Agrees to promptly notify the Agent in writing of any additional
trademarks registered with the PTO of which Debtor becomes the owner and to
amend Schedule I accordingly.
----------
3. No Present Assignment. Neither the Security Agreement, this
---------------------
Supplemental Trademark Agreement nor any other document, instrument or agreement
creates or is intended to create a present assignment of the Trademark
Collateral. Subject to the rights of the Agent under the Security Agreement and
this Supplemental Trademark Agreement, it is the intention of the parties hereto
that Debtor continue to own the Trademark Collateral and that upon the
indefeasible payment and performance in full of Debtor Obligations, the rights
of the Agent under the Security Agreement and this Supplemental Trademark
Agreement in and to the Trademark Collateral shall be released and terminated.
4. Relationship to Security Agreement. The Trademark Collateral shall
----------------------------------
constitute Collateral for all purposes of the Security Agreement and the other
Loan Documents and the Agent shall have all rights, powers and remedies with
respect to the Trademark Collateral to the same extent as they have with respect
to other Collateral. Reference is hereby made to the Security Agreement, the
terms and conditions of which are incorporated herein by this reference.
3
EXECUTED as of the day and year first above written.
ATG INC.,
a California corporation
By:______________________________
Name:____________________________
Title:___________________________
SANWA BANK CALIFORNIA,
as Agent
By:______________________________
Name:____________________________
Title:___________________________
4
Schedule I to
-------------
Trademark Security Agreement
----------------------------
List of Trademarks
[To be Provided by Debtor]
EXHIBIT B
---------
TO SECURITY AGREEMENT
---------------------
SUPPLEMENTAL SECURITY AGREEMENT
(Patents)
THIS SUPPLEMENTAL SECURITY AGREEMENT (the "Supplemental Patent
Agreement") is made and dated this 1st day of November, 1999 by and between ATG
INC., a California corporation ("Debtor"), and SANWA BANK CALIFORNIA, as agent
(in such capacity, the "Agent") for itself, the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank and the Lenders under (and as those terms and
capitalized terms not otherwise defined herein are defined in) that certain
Credit and Reimbursement Agreement dated as of November 1, 1999 by and among
Debtor, the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and
the Lenders from time to time party thereto (as amended, extended and replaced
from time to time, the "Credit Agreement").
RECITALS
A. Pursuant to that certain Security Agreement dated as of even date
herewith between Debtor and the Agent (the "Security Agreement"), Debtor has
granted to the Agent a perfected security interest in certain assets of Debtor,
including, without limitation, all patents, trademarks, service marks, trade
names, mask works, copyrights, goodwill, licenses and other intellectual
property owned by Debtor or used in Debtor's business.
B. The parties hereto desire to supplement the Security Agreement as
it relates to certain of such intellectual property consisting generally of
patents and to create hereby a document appropriate for recordation in the
Patent and Trademark Office of the United States (the "PTO").
NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Confirmation of Grant of Security Interest. Debtor hereby confirms the
------------------------------------------
grant of security interest, pledge, assignment and mortgage set forth in the
Security Agreement and acknowledges that the Collateral (as defined in the
Security Agreement) described therein includes, without limitation, all of
Debtor's right, title and interest in the following (the "Patent Collateral"):
1
(a) All now existing or hereafter created or acquired, patents,
letters patents, inventions, patent applications and rights and works
protectable by patent, and, except to the extent prohibited by the terms
thereof, all agreements in respect of patents owned by third parties,
including, without limitation, the patents specifically described on
Schedule I attached hereto, as the same may be amended or replaced from
----------
time to time with the consent of the Agent;
(b) All now existing and hereafter arising registrations and
applications for registration relating to any of the foregoing, all
renewals and extensions thereof throughout the world in perpetuity, and all
rights to make such applications and to renew and extend the same;
(c) All now existing and hereafter arising rights and licenses to
make, have made, use and/or sell the inventions disclosed and claimed by
any of the foregoing;
(d) All now existing and hereafter arising right (but not the
obligation) to register claims under any state, federal or foreign patent
law or regulation;
(e) All now existing and hereafter arising rights, claims and
interests under licensing or other contracts pertaining to any of the
foregoing to the extent such rights are assignable;
(f) All now existing and hereafter arising documents, instruments and
agreements which reveal the name and address of sources of supply,
distribution methods and all terms of purchase, rental, license or use and
delivery for all materials, products and components used in connection with
any of the foregoing;
(g) All now existing and hereafter arising specifications as to and
quality control manuals used in connection with the operations utilizing
any of the foregoing;
(h) All now existing and hereafter arising goodwill associated with
any of the foregoing;
(i) All now existing and hereafter arising right (but not the
obligation) to xxx or bring opposition or cancellation proceedings in the
name of Debtor or the Agent for past, present and future infringements of
any of the foregoing; and
(j) All products and proceeds of any of the foregoing.
2. Additional Representation and Warranty and Covenant. In addition to
---------------------------------------------------
all representations and warranties, covenants and agreements set forth in the
Security Agreement, Debtor hereby:
2
(a) Represents and warrants that Schedule I attached hereto sets forth
----------
an accurate and complete list of all patents owned by Debtor which are
registered with the PTO as of the date hereof; and
(b) Agrees to promptly notify the Agent in writing of any additional
patents registered with the PTO of which Debtor becomes the owner and to
amend Schedule I accordingly.
----------
3. No Present Assignment. Neither the Security Agreement, this
---------------------
Supplemental Patent Agreement nor any other document, instrument or agreement
creates or is intended to create a present assignment of the Patent Collateral.
Subject to the rights of the Agent under the Security Agreement and this
Supplemental Patent Agreement, it is the intention of the parties hereto that
Debtor continue to own the Patent Collateral and that upon the indefeasible
payment and performance in full of Debtor Obligations, the rights of the Agent
under the Security Agreement and this Supplemental Patent Agreement in and to
the Patent Collateral shall be released and terminated.
4. Relationship to Security Agreement. The Patent Collateral shall
----------------------------------
constitute Collateral for all purposes of the Security Agreement and the other
Loan Documents and the Agent shall have all rights, powers and remedies with
respect to the Patent Collateral to the same extent as they have with respect to
other Collateral. Reference is hereby made to the Security Agreement, the terms
and conditions of which are incorporated herein by this reference.
3
EXECUTED as of the day and year first above written.
ATG INC.,
a California corporation
By:_________________________________
Name:_______________________________
Title:______________________________
SANWA BANK CALIFORNIA,
as Agent
By:_________________________________
Name:_______________________________
Title:______________________________
4
Schedule I
----------
to Patent Security Agreement
----------------------------
Description of Patents
[To be Provided by Debtor]
EXHIBIT C
---------
TO SECURITY AGREEMENT
---------------------
SUPPLEMENTAL SECURITY AGREEMENT
(Copyrights)
THIS SUPPLEMENTAL SECURITY AGREEMENT (the "Supplemental Copyright
Agreement") is made and dated this 1st day of November, 1999 by and between ATG
INC., a California corporation ("Debtor"), and SANWA BANK CALIFORNIA, as agent
(in such capacity, the "Agent") for itself, the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank and the Lenders under (and as those terms and
capitalized terms not otherwise defined herein are defined in) that certain
Credit and Reimbursement Agreement dated as of November 1, 1999 by and among
Debtor, the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and
the Lenders from time to time party thereto (as amended, extended and replaced
from time to time, the "Credit Agreement").
RECITALS
A. Pursuant to that certain Security Agreement dated as of even date
herewith between Debtor and the Agent (the "Security Agreement"), Debtor has
granted to the Agent a perfected security interest in certain assets of Debtor,
including, without limitation, all patents, trademarks, service marks, trade
names, copyrights, goodwill, licenses and other intellectual property owned by
Debtor or used in Debtor's business.
B. The parties hereto desire to supplement the Security Agreement as
it relates to certain of such intellectual property consisting generally of
copyrights and to create hereby a document appropriate for recordation in the
Copyright Office of the United States (the "Copyright Office").
NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Confirmation of Grant of Security Interest. Debtor hereby confirms the
------------------------------------------
grant of the security interest, pledge, assignment and mortgage set forth in the
Security Agreement and acknowledges that the Collateral (as defined in the
Security Agreement) described therein includes, without limitation, all of
Debtor's right, title and interest in the following (the "Copyright
Collateral"):
(a) All copyrights of Debtor, whether now owned or hereafter
acquired, including, without limitation, copyrights in the titles
specifically described on
1
Schedule I attached hereto, as the same may be amended or replaced from
----------
time to time with the consent of the Agent;
(b) All now existing and hereafter arising registrations and
applications for registration relating to any of the foregoing, all
renewals and extensions thereof throughout the world in perpetuity, and all
rights to make such applications and to renew and extend the same;
(c) All now existing and hereafter arising rights and licenses to
make, have made, use and/or sell any items disclosed and claimed by any of
the foregoing;
(d) All now existing and hereafter arising right (but not the
obligation) to register claims under any state, federal or foreign
copyright law or regulation;
(e) All now existing and hereafter arising rights, claims and
interests under licensing or other contracts pertaining to any of the
foregoing;
(f) All now existing and hereafter arising documents, instruments
and agreements which reveal the name and address of sources of supply,
distribution methods and all terms of purchase, rental, license or use and
delivery for all materials, products and components used in connection with
any of the foregoing;
(g) All now existing and hereafter arising goodwill associated with
any of the foregoing;
(h) All now existing and hereafter arising right (but not the
obligation) to xxx or bring opposition or cancellation proceedings in the
name of Debtor or the Agent for past, present and future infringements of
any of the foregoing;
(i) All products and Proceeds of any of the foregoing.
2. Additional Representation and Warranty and Covenant. In addition to
---------------------------------------------------
all representations and warranties, covenants and agreements set forth in the
Security Agreement, Debtor hereby:
(a) Represents and warrants that Schedule I attached hereto sets
----------
forth an accurate and complete list of all copyrights owned by Debtor which
are registered with the Copyright Office; and
(b) Agrees to promptly notify the Agent in writing of any additional
copyright of which Debtor becomes the owner and to amend Schedule I
----------
accordingly.
3. No Present Assignment. Neither the Security Agreement, this
---------------------
Supplemental Copyright Agreement nor any other document, instrument or agreement
creates or is
2
intended to create a present assignment of the Copyright Collateral. Subject to
the rights of the Agent under the Security Agreement and this Supplemental
Copyright Agreement, it is the intention of the parties hereto that Debtor
continue to own the Copyright Collateral and that upon the indefeasible payment
and performance in full of Debtor Obligations, the rights of the Agent under the
Security Agreement and this Supplemental Copyright Agreement in and to the
Copyright Collateral shall be released and terminated.
4. Relationship to Security Agreement. The Copyright Collateral shall
----------------------------------
constitute Collateral for all purposes of the Security Agreement and the other
Loan Documents and the Agent shall have all rights, powers and remedies with
respect to the Copyright Collateral to the same extent as they have with respect
to other Collateral. Reference is hereby made to the Security Agreement, the
terms and conditions of which are incorporated herein by this reference.
EXECUTED as of the day and year first above written.
ATG INC.,
a California corporation
By:________________________________
Name:______________________________
Title:_____________________________
SANWA BANK CALIFORNIA, as Agent
By:________________________________
Name:______________________________
Title:_____________________________
3
Schedule 1
----------
to Copyright Security Agreement
-------------------------------
Description of Copyrights
[To be Provided by Debtor]
EXHIBIT D
---------
TO SECURITY AGREEMENT
---------------------
IRREVOCABLE POWER OF ATTORNEY
ATG INC., a California corporation, having an office in 00000 Xxxxxxx
Xxxx., Xxxxxxx, XX 00000 ("Debtor") hereby grants to SANWA BANK CALIFORNIA, as
agent ("Agent"), an exclusive Irrevocable Power of Attorney to (i) transfer
copyrights and applications therefor owned by Debtor from time to time, (ii)
transfer trademarks and applications therefor owned by Debtor from time to time,
(iii) transfer patents and applications therefor owned by Debtor from time to
time, (iv) renew, extend, and protect the foregoing, and (v) register and record
any such transfer, renewal, extension and protection, all in accordance with
that certain Credit and Reimbursement Agreement dated as of November 1, 1999
among Debtor, Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank
and the Lenders from time to time party thereto (the "Credit Agreement" and as
those terms and other capitalized terms not otherwise defined herein are defined
in the Credit Agreement) and related documents.
1. The Power of Attorney granted hereunder shall be effective as of
the date hereof and shall last for as long as any now existing or hereafter
arising Obligations of Debtor remain outstanding (other than surviving indemnity
obligations).
2. The Power of Attorney granted herein shall be irrevocable
throughout the duration of its life specified in Paragraph 1 above and is
-----------
coupled with an interest; it is created for the benefit of the attorney in fact,
Agent, rather than for Debtor.
3. This Power of Attorney is created simultaneously with the
imposition of other obligations upon Debtor in favor of Agent under the Credit
Agreement.
4. The Power of Attorney granted hereunder gives and grants unto said
attorney in fact, Agent, full power of substitution to substitute another party
for Agent in accordance with the Credit Agreement.
5. The Power of Attorney granted herein is created to secure the
performance of the obligations under the Credit Agreement and the other Loan
Documents and shall be exercisable by Agent only after the occurrence and during
the continuance of an Event of Default.
1
IN WITNESS WHEREOF, Debtor has caused this Irrevocable Power of
Attorney to be executed by its officer thereunto duly authorized, as of November
1, 1999.
ATG INC.,
a California corporation
By: _______________________________
Name:______________________________
Title:_____________________________
2
EXHIBIT E
---------
TO SECURITY AGREEMENT
---------------------
NOTICE OF ASSIGNMENT OF GOVERNMENTAL CLAIMS
_____________________
_____________________
_____________________
(address to one of the parties specified in 32.802(e)).
This has reference to Contract No. _____ dated _____________, 199_, entered
into between _________________________ [contractor's name and address] (the
"Contractor") and [government agency, name of office, and address], for
_________ [describe nature of the contract].
Moneys due or to become due under the contract described above have been
assigned to the undersigned under the provisions of the Assignment of Claims Act
of 1940, as amended, 31 U.S.C. 3727, 41 U.S.C. 15.
A true copy of the instrument of assignment executed by the Contractor on
[date], is attached to this notice as Exhibit A.
---------
Payments due or to become due under this contract should be made to the
undersigned assignee.
Please return to the undersigned the three enclosed copies of this notice
with appropriate notations showing the date and hour of receipt, and signed by
the person acknowledging receipt on behalf of the addressee.
____________________________________
(name of assignee)
By: ________________________________
(signature of signing officer)
________________________
________________________
________________________
(address of assignee)
1
ACKNOWLEDGEMENT
Receipt is acknowledged of the above notice and of a copy of the instrument
of assignment. They were received at _______ (a.m.) (p.m.) on ___________,
1999.
____________________________________
(signature)
____________________________________
(title)
On behalf of
____________________________________
(name of addressee of this notice)
2
TRADEMARK SECURITY AGREEMENT
THIS SUPPLEMENTAL SECURITY AGREEMENT (the "Supplemental Trademark
Agreement") is made and dated this 1st day of November, 1999 by and between ATG
INC., a California corporation ("Debtor"), and SANWA BANK CALIFORNIA, as agent
(in such capacity, the "Agent") for itself, the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank and the Lenders under (and as those terms and
capitalized terms not otherwise defined herein are defined in) that certain
Credit and Reimbursement Agreement dated as of November 1, 1999 by and among
Debtor, the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and
the Lenders from time to time party thereto (as amended, extended and replaced
from time to time, the "Credit Agreement").
RECITALS
A. Pursuant to that certain Security Agreement dated as of even date
herewith between Debtor and the Agent (the "Security Agreement"), Debtor has
granted to the Agent a perfected security interest in certain assets of Debtor,
including, without limitation, all patents, trademarks, service marks, trade
names, copyrights, goodwill, licenses and other intellectual property owned by
Debtor or used in Debtor's business.
B. The parties hereto desire to supplement the Security Agreement as it
relates to certain of such intellectual property consisting generally of
trademarks and to create hereby a document appropriate for recordation in the
Patent and Trademark Office of the United States (the "PTO").
NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Confirmation of Grant of Security Interest. Debtor hereby confirms
------------------------------------------
the grant of security interest, pledge, assignment and mortgage set forth in the
Security Agreement and acknowledges that the Collateral (as defined in the
Security Agreement) described therein includes, without limitation, all of
Debtor's right, title and interest in the following (the "Trademark
Collateral"):
(a) All trademarks, service marks, designs, logos, indicia,
tradenames, corporate names, company names, business names, fictitious
business names, trade styles and other source, product and business
identifiers pertaining to the products, services and business of Debtor,
whether now owned or hereafter acquired, including, without limitation, the
trademarks specifically described on Schedule I attached hereto, as the
----------
same may be amended or replaced from time to time with the consent of the
Agent;
1
(b) All now existing and hereafter arising registrations and
applications for registration relating to any of the foregoing, all
renewals and extensions thereof throughout the world in perpetuity, and all
rights to make such applications and to renew and extend the same;
(c) All now existing and hereafter arising rights and licenses to
make, have made, use and/or sell any items disclosed and claimed by any of
the foregoing;
(d) All now existing and hereafter arising right (but not the
obligation) to register claims under any state, federal or foreign
trademark law or regulation;
(e) All now existing and hereafter arising rights, claims and
interests under licensing or other contracts pertaining to any of the
foregoing to the extent such rights are assignable;
(f) All now existing and hereafter arising documents, instruments and
agreements which reveal the name and address of sources of supply,
distribution methods and all terms of purchase, rental, license or use and
delivery for all materials, products and components used in connection with
any of the foregoing;
(g) All now existing and hereafter arising specifications as to and
quality control manuals used in connection with the operations conducted
under the name of or in connection with the foregoing;
(h) All now existing and hereafter arising goodwill associated with
any of the foregoing;
(i) All now existing and hereafter arising right (but not the
obligation) to xxx or bring opposition or cancellation proceedings in the
name of Debtor or the Agent for past, present and future infringements of
any of the foregoing;
(j) All products and proceeds of any of the foregoing.
2. Additional Representation and Warranty and Covenant. In addition to
---------------------------------------------------
all representations and warranties, covenants and agreements set forth in the
Security Agreement, Debtor hereby:
(a) Represents and warrants that Schedule I attached hereto sets
----------
forth an accurate and complete list of all trademarks owned by Debtor which
are registered with the PTO as of the date hereof; and
(b) Agrees to promptly notify the Agent in writing of any additional
trademarks registered with the PTO of which Debtor becomes the owner and to
amend Schedule I accordingly.
----------
3. No Present Assignment. Neither the Security Agreement, this
---------------------
Supplemental Trademark Agreement nor any other document, instrument or agreement
creates or is intended to create a present assignment of the Trademark
Collateral. Subject to the rights of the Agent under the Security Agreement and
this Supplemental Trademark Agreement, it is the intention of the parties hereto
that Debtor continue to own the Trademark Collateral and that upon the
2
indefeasible payment and performance in full of Debtor Obligations, the rights
of the Agent under the Security Agreement and this Supplemental Trademark
Agreement in and to the Trademark Collateral shall be released and terminated.
4. Relationship to Security Agreement. The Trademark Collateral shall
----------------------------------
constitute Collateral for all purposes of the Security Agreement and the other
Loan Documents and the Agent shall have all rights, powers and remedies with
respect to the Trademark Collateral to the same extent as they have with respect
to other Collateral. Reference is hereby made to the Security Agreement, the
terms and conditions of which are incorporated herein by this reference.
3
EXECUTED as of the day and year first above written.
ATG INC.,
a California corporation
By: /s/ Xxxxx Xxxx
-------------------------------
Name: Xxxxx Xxxx
-----------------------------
Title: Executive Vice President
----------------------------
SANWA BANK CALIFORNIA,
as Agent
By: /s/ Xxxxxxxx Xxxxxx
-------------------------------
Name: Xxxxxxxx Xxxxxx
-----------------------------
Title: Vice President/Manager
----------------------------
4
Schedule I to
-------------
Trademark Security Agreement
----------------------------
List of Trademarks
Trademark # Trademark Registered Trademark
----------- -------------------- ---------
75/251,800 11/19/97 SAFGLAS
EXHIBIT B-1
PATENT SECURITY AGREEMENT
THIS SUPPLEMENTAL SECURITY AGREEMENT (the "Supplemental Patent Agreement")
is made and dated this 1st day of November, 1999 by and between ATG INC., a
California corporation ("Debtor"), and SANWA BANK CALIFORNIA, as agent (in such
capacity, the "Agent") for itself, the Bond L/C Issuing Bank, the Standard L/C
Issuing Bank and the Lenders under (and as those terms and capitalized terms not
otherwise defined herein are defined in) that certain Credit and Reimbursement
Agreement dated as of November 1, 1999 by and among Debtor, the Agent, the Bond
L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders from time to
time party thereto (as amended, extended and replaced from time to time, the
"Credit Agreement").
RECITALS
A. Pursuant to that certain Security Agreement dated as of even date
herewith between Debtor and the Agent (the "Security Agreement"), Debtor has
granted to the Agent a perfected security interest in certain assets of Debtor,
including, without limitation, all patents, trademarks, service marks, trade
names, mask works, copyrights, goodwill, licenses and other intellectual
property owned by Debtor or used in Debtor's business.
B. The parties hereto desire to supplement the Security Agreement as it
relates to certain of such intellectual property consisting generally of patents
and to create hereby a document appropriate for recordation in the Patent and
Trademark Office of the United States (the "PTO").
NOW, THEREFORE, in consideration of the above Recitals and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Confirmation of Grant of Security Interest. Debtor hereby confirms the
------------------------------------------
grant of security interest, pledge, assignment and mortgage set forth in the
Security Agreement and acknowledges that the Collateral (as defined in the
Security Agreement) described therein includes, without limitation, all of
Debtor's right, title and interest in the following (the "Patent Collateral"):
(a) All now existing or hereafter created or acquired, patents,
letters patents, inventions, patent applications and rights and works
protectable by patent, and, except to the extent prohibited by the terms
thereof, all agreements in respect of patents owned by third parties,
including, without limitation, the
1
patents specifically described on Schedule I attached hereto, as the same
----------
may be amended or replaced from time to time with the consent of the Agent;
(b) All now existing and hereafter arising registrations and
applications for registration relating to any of the foregoing, all
renewals and extensions thereof throughout the world in perpetuity, and all
rights to make such applications and to renew and extend the same;
(c) All now existing and hereafter arising rights and licenses to
make, have made, use and/or sell the inventions disclosed and claimed by
any of the foregoing;
(d) All now existing and hereafter arising right (but not the
obligation) to register claims under any state, federal or foreign patent
law or regulation;
(e) All now existing and hereafter arising rights, claims and
interests under licensing or other contracts pertaining to any of the
foregoing to the extent such rights are assignable;
(f) All now existing and hereafter arising documents, instruments and
agreements which reveal the name and address of sources of supply,
distribution methods and all terms of purchase, rental, license or use and
delivery for all materials, products and components used in connection with
any of the foregoing;
(g) All now existing and hereafter arising specifications as to and
quality control manuals used in connection with the operations utilizing
any of the foregoing;
(h) All now existing and hereafter arising goodwill associated with
any of the foregoing;
(i) All now existing and hereafter arising right (but not the
obligation) to xxx or bring opposition or cancellation proceedings in the
name of Debtor or the Agent for past, present and future infringements of
any of the foregoing; and
(j) All products and proceeds of any of the foregoing.
2. Additional Representation and Warranty and Covenant. In addition to
---------------------------------------------------
all representations and warranties, covenants and agreements set forth in the
Security Agreement, Debtor hereby:
2
(a) Represents and warrants that Schedule I attached hereto sets
----------
forth an accurate and complete list of all patents owned by Debtor which
are registered with the PTO as of the date hereof; and
(b) Agrees to promptly notify the Agent in writing of any additional
patents registered with the PTO of which Debtor becomes the owner and to
amend Schedule I accordingly.
----------
3. No Present Assignment. Neither the Security Agreement, this
---------------------
Supplemental Patent Agreement nor any other document, instrument or agreement
creates or is intended to create a present assignment of the Patent Collateral.
Subject to the rights of the Agent under the Security Agreement and this
Supplemental Patent Agreement, it is the intention of the parties hereto that
Debtor continue to own the Patent Collateral and that upon the indefeasible
payment and performance in full of Debtor Obligations, the rights of the Agent
under the Security Agreement and this Supplemental Patent Agreement in and to
the Patent Collateral shall be released and terminated.
4. Relationship to Security Agreement. The Patent Collateral shall
----------------------------------
constitute Collateral for all purposes of the Security Agreement and the other
Loan Documents and the Agent shall have all rights, powers and remedies with
respect to the Patent Collateral to the same extent as they have with respect to
other Collateral. Reference is hereby made to the Security Agreement, the terms
and conditions of which are incorporated herein by this reference.
3
EXECUTED as of the day and year first above written.
ATG INC.,
a California corporation
By: /s/ Xxxxx Xxxx
-------------------------------------
Name: Xxxxx Xxxx
-----------------------------------
Title: Executive Vice president
----------------------------------
SANWA BANK CALIFORNIA,
as Agent
By: /s/ Xxxxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxxxx Xxxxxx
-----------------------------------
Title: Vice President/Manager
----------------------------------
4
Schedule I
----------
to Patent Security Agreement
----------------------------
Description of Patents
Patent # Patent Issued Title of Invention
-------- ------------- ------------------
5,809,911 9/22/98 Multi-Zone Waste Processing Reactor System (ATG)
IRREVOCABLE POWER OF ATTORNEY
ATG INC., a California corporation, having an office in 00000 Xxxxxxx
Xxxx., Xxxxxxx, XX 00000 ("Debtor") hereby grants to SANWA BANK CALIFORNIA, as
agent ("Agent"), an exclusive Irrevocable Power of Attorney to (i) transfer
copyrights and applications therefor owned by Debtor from time to time, (ii)
transfer trademarks and applications therefor owned by Debtor from time to time,
(iii) transfer patents and applications therefor owned by Debtor from time to
time, (iv) renew, extend, and protect the foregoing, and (v) register and record
any such transfer, renewal, extension and protection, all in accordance with
that certain Credit and Reimbursement Agreement dated as of November 1, 1999
among Debtor, Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank
and the Lenders from time to time party thereto (the "Credit Agreement" and as
those terms and other capitalized terms not otherwise defined herein are defined
in the Credit Agreement) and related documents.
1. The Power of Attorney granted hereunder shall be effective as of the
date hereof and shall last for as long as any now existing or hereafter arising
Obligations of Debtor remain outstanding (other than surviving indemnity
obligations).
2. The Power of Attorney granted herein shall be irrevocable throughout
the duration of its life specified in Paragraph 1 above and is coupled with an
-----------
interest; it is created for the benefit of the attorney in fact, Agent, rather
than for Debtor.
3. This Power of Attorney is created simultaneously with the imposition of
other obligations upon Debtor in favor of Agent under the Credit Agreement.
4. The Power of Attorney granted hereunder gives and grants unto said
attorney in fact, Agent, full power of substitution to substitute another party
for Agent in accordance with the Credit Agreement.
5. The Power of Attorney granted herein is created to secure the
performance of the obligations under the Credit Agreement and the other Loan
Documents and shall be exercisable by Agent only after the occurrence and during
the continuance of an Event of Default.
1
IN WITNESS WHEREOF, Debtor has caused this Irrevocable Power of Attorney to
be executed by its officer thereunto duly authorized, as of November 1, 1999.
ATG INC.,
a California corporation
By: /s/ Xxxxx Xxxx
---------------------------------
Name: Xxxxx Xxxx
--------------------------------
Title: Executive Vice President
-------------------------------
2
SECURITY AGREEMENT
THIS SECURITY AGREEMENT (the "Security Agreement") is made and dated as of
1st of November, 1999 by and between ATG RICHLAND CORPORATION, a Washington
corporation; ATG NUCLEAR SERVICES LLC, a Delaware limited liability company; and
ATG CATALYTICS LLC, a Delaware limited liability company (collectively, the
"Debtors" and each a "Debtor"), and SANWA BANK CALIFORNIA, as agent (in such
capacity, the "Agent") for the Bond L/C Issuing Bank, the Standard L/C Issuing
Bank and the Lenders under (and as those terms and capitalized terms not
otherwise defined herein are defined in) that certain Credit and Reimbursement
Agreement dated as of November 1, 1999 by and among ATG Inc. ("ATG"), the
Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders
from time to time party thereto (as amended, extended and replaced from time to
time, the "Credit Agreement").
RECITALS
A. Pursuant to the Credit Agreement, the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank and the Lenders have agreed to extend credit to ATG
from time to time.
B. As a condition precedent to the obligation to continue to extend
credit under the Credit Agreement, the Debtors have executed and delivered the
Continuing Guaranty dated as of November 1, 1999 (the "Guaranty") for the
benefit of the Agent pursuant to which the Debtors have guaranteed payment of
the Obligations (as defined in the Credit Agreement).
C. As a condition precedent to the obligation to continue to extend
credit under the Credit Agreement, and as security for the payment and
performance of Debtors' obligations under the Guaranty (the "Obligations"), the
Debtors are required to execute and deliver this Security Agreement, and to
grant to the Agent on behalf of itself, the Bond L/C Issuing Bank, the Standard
L/C Issuing Bank and the Lenders (collectively, the "Secured Parties") and to
create a security interest in certain property of Debtors, as hereinafter
provided.
NOW, THEREFORE, in consideration of the above Recitals and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Appointment of Agent. Pursuant to Paragraph 14 of the Credit
--------------------
Agreement, each Secured Party has appointed the Agent as its agent under the
Loan Documents (including, without limitation, this Security Agreement), and the
Agent has accepted
1
such appointment. The Agent shall act as secured party, agent, bailee and
custodian for the exclusive benefit of the Secured Parties with respect to the
Collateral (as defined below). The Agent agrees that the Agent will act with
respect to the Collateral for the exclusive benefit of the Secured Parties and
is not, and shall not at any time in the future be, in any manner or to any
extent, subject to the direction or control of Debtor except as expressly
permitted hereunder, under the other Loan Documents or as required by law.
2. Grant of Security Interest. Each Debtor hereby pledges, assigns and
--------------------------
grants to the Agent, for the benefit of the Secured Parties, a security interest
in the property described in Paragraph 3 below (collectively and severally, the
"Collateral") to secure payment and performance of the Obligations.
3. Collateral. The Collateral shall consist of all right, title and
----------
interest of each Debtor in and to the following:
3(a) All now existing and hereafter arising receivables,
accounts, contracts, contract rights, chattel paper, documents, instruments,
investment property, and general intangibles of such Debtor (including U.S.
Governmental claims and receivables governed by the Federal Assignment of Claims
Act of 1940, as amended ("Assignment of Claims Act"), whether or not arising out
of or in connection with the sale or lease of goods or the rendering of
services, and all rights of such Debtor now and hereafter arising in and to all
security agreements, guaranties, leases and other writings securing or otherwise
relating to any such receivables, accounts, contracts, contract rights, chattel
paper, documents, instruments and general intangibles;
3(b) All inventory of such Debtor, now owned and hereafter
acquired, wherever located, including, without limitation, all merchandise,
goods and other personal property which are held for sale or lease, all raw
materials, work in process, materials used or consumed in such Debtor's business
and finished goods, all goods in which such Debtor has an interest in mass or a
joint or other interest or gifts of any kind (including goods in which such
Debtor has an interest or right as consignee), and all goods which are returned
to or repossessed by such Debtor, together with all additions and accessions
thereto and replacements therefor and products thereof and documents therefor;
3(c) All equipment of such Debtor, now owned and hereafter
acquired, wherever located, and all parts thereof and all accessions, additions,
attachments, improvements, substitutions and replacements thereto and therefor,
including, without limitation, all machinery, tools, dies, blueprints,
catalogues, computer hardware and software, furniture, furnishings and fixtures;
3(d) All now existing and hereafter acquired Computer Hardware
and Software Collateral, Copyright Collateral, Patent Collateral, Trademark
Collateral and Trade Secrets Collateral (as those terms are defined in Paragraph
13 below) (collectively, the "Intellectual Property Collateral");
2
3(e) All deposit accounts, now existing and hereafter arising or
established, maintained in such Debtor's name with any financial institution,
including, without limitation, those accounts described more particularly on
Schedule 1 attached hereto, and any and all funds at any time held therein and
----------
all certificates, instruments and other writings, if any, from time to time
representing, evidencing or deposited into such accounts, and all interest,
dividends, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of the foregoing;
3(f) All now existing and hereafter acquired books, records,
writings, data bases, information and other property relating to, used or useful
in connection with, embodying, incorporating or referring to, any of the
foregoing Collateral;
3(g) All other property of such Debtor now or hereafter in the
possession, custody or control of the Agent, and all property of such Debtor in
which the Agent now has or hereafter acquires a security interest for the
benefit of the Secured Parties;
3(h) Rights under insurance policies, letter of credit rights,
and supporting obligations, including without limitation guaranties;
3(i) All now existing and hereafter acquired cash and cash
equivalents held by such Debtor not otherwise included in the foregoing
Collateral; and
3(j) All products and proceeds of the foregoing Collateral. For
purposes of this Security Agreement, the term "proceeds" includes whatever is
receivable or received when Collateral or proceeds thereof is sold, collected,
exchanged or otherwise disposed of, whether such disposition is voluntary or
involuntary, and includes, without limitation, all rights to payment, including
return premiums, with respect to any insurance relating thereto.
Nothing herein is intended to grant to the Secured Parties a Security
Interest in specific assets, if any, of such Debtor that the Secured Parties may
agree from time to time, pursuant to the Credit Agreement, shall not constitute
Collateral.
4. Debtors' Obligations. The Obligations secured by this Security
--------------------
Agreement shall consist of all [obligations of Debtors under the Guaranty and
under any other Loan Document], whether now existing or hereafter arising,
voluntary or involuntary, whether or not jointly owed with others, direct or
indirect, absolute or contingent, liquidated or unliquidated, and whether or not
from time to time decreased or extinguished and later increased, created or
incurred.
5. Representations and Warranties. In addition to all representations
------------------------------
and warranties of each Debtor set forth in the other Loan Documents, which are
incorporated herein by this reference, each Debtor hereby represents and
warrants that:
3
5(a) Except [as permitted by Paragraph 12(a) of the Credit
Agreement and except] for the Lien in favor of the Agent for the benefit of the
Secured Parties granted hereunder, no Person has (or, in the case of after-
acquired Collateral, at the time such Debtor acquires rights therein, will have)
any right, title, claim or interest (by way of security interest or other Lien
or charge) in, against or to the Collateral.
5(b) All information heretofore, herein or hereafter supplied to
the Agent or any Secured Party by or on behalf of such Debtor with respect to
the Collateral is accurate and complete in all material respects.
5(c) Such Debtor has delivered to the Agent all instruments,
chattel paper and other items of Collateral in which a security interest is or
may be perfected by possession, together with such additional writings,
including, without limitation, assignments, with respect thereto as the Agent
shall request.
6. Covenants and Agreements of Debtors. In addition to all covenants and
-----------------------------------
agreements of each Debtor set forth in the other Loan Documents, which are
incorporated herein by this reference, each Debtor hereby agrees, at no cost or
expense to the Agent or any of the Secured Parties:
6(a) To do all acts that may be necessary to maintain, preserve
and protect the Collateral and the priority and perfected nature of the security
interest of the Agent for the benefit of the Secured Parties therein;
6(b) With respect to Collateral in possession of a third party,
upon the written request of the Agent, to join with the Agent in notifying the
third party of the Secured Parties' security interest and obtaining an
acknowledgment from the third party that it is holding the Collateral for the
benefit of the Secured Parties;
6(c) Upon the written request of the Agent, to cooperate with
the Agent in obtaining control agreements in form and substance satisfactory to
the Agent with respect to Collateral consisting of deposit accounts, investment
property, letter of credit rights, and electronic chattel paper;
6(d) Not to create any chattel paper without placing a legend on
the chattel paper acceptable to the Agent indicating that the Secured Parties
have a security interest in the chattel paper;
6(e) Not to use or permit any Collateral to be used unlawfully
or in violation of any provision of this Security Agreement, any other agreement
with the Agent and/or the Secured Parties related hereto, or any law, rule,
regulation, order, writ, judgment, injunction, decree or award binding on such
Debtor or affecting any of the Collateral or any contractual obligation
affecting any of the Collateral;
6(f) To pay promptly when due all taxes, assessments, charges,
encumbrances and Liens now or hereafter imposed upon or affecting any
Collateral;
4
6(g) To appear in and defend any action or proceeding which may
affect its title to or the Agent's interest on behalf of the Secured Parties in
the Collateral;
6(h) Not to surrender or lose possession of (other than to the
Agent), sell, encumber, lease, rent, or otherwise dispose of or transfer any
Collateral or right or interest therein except as expressly provided herein and
in the other Loan Documents, and to keep the Collateral free of all levies and
security interests or other Liens or charges except as permitted by the Credit
Agreement; provided, however, that, unless an Event of Default shall have
occurred and be continuing, such Debtor may, in the ordinary course of business,
sell or lease any Collateral consisting of inventory;
6(i) To account fully for and promptly deliver to the Agent, in
the form received, all documents, chattel paper, instruments and agreements
constituting Collateral hereunder and all proceeds of the Collateral received,
all endorsed to the Agent or in blank, as requested by the Agent, and until so
delivered all such documents, instruments, agreements and proceeds shall be held
by such Debtor in trust for the Agent for the benefit of the Secured Parties,
separate from all other property of such Debtor;
6(j) To keep separate, accurate and complete records of the
Collateral and to provide the Agent and each of the Secured Parties with such
records and such other reports and information relating to the Collateral as the
Agent or any Secured Party may reasonably request from time to time;
6(k) To give the Agent thirty (30) days prior written notice of
any change in such Debtor's chief place of business, such Debtor's state of
incorporation or legal name or trade name(s) or style(s) referred to in
Paragraph 11 below;
6(l) To keep the records concerning the Collateral at the
location(s) referred to in Paragraph 11 below and not to remove such records
from such location(s) without the prior written consent of the Agent;
6(m) To keep the Collateral at the location(s) referred to in
Paragraph 11 below and not to remove the Collateral from such location(s)
without the prior written consent of the Agent;
6(n) To keep the Collateral in good condition and repair and not
to cause or permit any waste or unusual or unreasonable depreciation of the
Collateral;
6(o) Unless such Debtor shall either reasonably and in good
faith determine that such Collateral is of negligible economic value to such
Debtor or that there is a valid purpose to do otherwise not to: (1) permit any
Patent Collateral to lapse or become abandoned or dedicated to the public or
otherwise be unenforceable; (2) fail to continue to use any of the Trademark
Collateral in order to maintain all of the
5
Trademark Collateral in full force free from any claim of abandonment for non-
use, (3) fail to maintain as in the past the quality of products and services
offered under all of the Trademark Collateral, (4) fail to employ all of the
Trademark Collateral registered with any Federal or state or foreign authority
with an appropriate notice of such registration, (5) adopt or use any other
Trademark which is confusingly similar or a colorable imitation of any of the
Trademark Collateral, (6) use any of the Trademark Collateral registered with
any Federal or state or foreign authority except for the uses for which
registration or application for registration of all of the Trademark Collateral
has been made, or (7) do or permit any act or knowingly omit to do any act
whereby any of the Trademark Collateral may lapse or become invalid or
unenforceable; (viii) do or permit any act or knowingly omit to do any act
whereby any of the Copyright Collateral or any of the Trade Secrets Collateral
may lapse or become invalid or unenforceable or placed in the public domain
except upon expiration of the end of an unrenewable term of a registration
thereof;
6(p) To notify the Agent immediately if it knows, or has reason
to know, that any application or registration relating to any material item of
the Intellectual Property Collateral may become abandoned or dedicated to the
public or placed in the public domain or invalid or unenforceable, or of any
adverse determination or development (including the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, the United States Copyright Office or any foreign counterpart
thereof or any court) regarding such Debtor's ownership of any of the
Intellectual Property Collateral, its right to register the same or to keep and
maintain and enforce the same;
6(q) Not to file an application for the registration of any
Intellectual Property Collateral with the United States Patent and Trademark
Office, the United States Copyright Office or any similar office or agency in
any other country or any political subdivision thereof, unless it promptly
informs the Agent, and upon request of the Agent, executes and delivers any and
all agreements, instruments, documents and papers as the Agent may reasonably
request to evidence the Agent's security interest in such Intellectual Property
Collateral and the goodwill and general intangibles of such Debtor relating
thereto or represented thereby;
6(r) With respect to Intellectual Property that is or becomes
Collateral hereunder, promptly to execute and deliver to the Agent agreements in
the forms of Exhibit A, Exhibit B, Exhibit C and Exhibit D hereto; and
--------- ---------- --------- ---------
6(s) With respect to rights of the Agent in Collateral that are
or become subject to compliance with the Assignment of Claims Act, promptly to
deliver to the Agent an agreement in the form of Exhibit E hereto, fully
---------
executed and acknowledged on behalf of the United States or appropriate agency
or instrumentality thereof.
7. Authorized Action by Agent. Each Debtor hereby agrees that:
--------------------------
6
7(a) From time to time, without presentment, notice or demand,
and without affecting or impairing in any way the rights of the Agent with
respect to the Collateral, the obligations of such Debtor hereunder or the
Obligations, the Agent may, but shall not be obligated to and shall incur no
liability to such Debtor, any Secured Party or any third party for failure to
take any action which such Debtor is obligated by this Security Agreement to do
and to exercise such rights and powers as such Debtor might exercise with
respect to the Collateral.
7(b) The Agent may execute in its own name or in the name of
such Debtor and file one or more financing statements describing the Collateral
in such jurisdictions as deemed appropriate by the Agent from time to time.
7(c) The Agent may file photostatic or other copies of financing
statements signed or authenticated by such Debtor or of this Security Agreement
in such jurisdictions as deemed appropriate by the Agent from time to time.
7(d) Such Debtor hereby irrevocably appoints the Agent as its
attorney-in-fact to exercise such rights and powers, including without
limitation, to collect by legal proceedings or otherwise and endorse, receive
and receipt for all dividends, interest, payments, proceeds and other sums and
property now or hereafter payable on or on account of the Collateral.
7(e) Enter into any extension, reorganization, deposit, merger,
consolidation or other agreement pertaining to, or deposit, surrender, accept,
hold or apply other property in exchange for the Collateral.
7(f) Insure, process and preserve the Collateral.
7(g) Transfer the Collateral to its own or its nominee's name.
7(h) Make any compromise or settlement, and take any action it
deems advisable, with respect to the Collateral.
7(i) Subject to the provisions of Paragraph 8 below, notify any
obligor on any Collateral to make payment directly to the Agent.
8. Collection of Collateral Payments.
---------------------------------
8(a) Each Debtor shall, at its sole cost and expense, endeavor
to obtain payment, when due and payable, of all sums due or to become due with
respect to any Collateral ("Collateral Payments" or a "Collateral Payment"),
including, without limitation, the taking of such action with respect thereto as
the Agent or any Secured Party may reasonably request, or, in the absence of
such request, as such Debtor may reasonably deem advisable; provided, however,
that such Debtor shall not, without the prior written consent of the Agent and
the Secured Parties, grant or agree to any rebate, refund, compromise or
extension with respect to any Collateral Payment
7
or accept any prepayment on account thereof. Upon the request of the Agent at
the direction of all the Secured Parties, such Debtor will notify and direct any
party who is or might become obligated to make any Collateral Payment, to make
payment thereof to such accounts as the Agent may direct in writing and to
execute all instruments and take all action required by the Agent to ensure the
rights of the Agent for the benefit of the Secured Parties in any Collateral
subject to the Federal Assignment of Claims Act of 1940, as amended.
8(b) Upon the request of the Agent, which request will be made
only following the occurrence of an Event of Default, each Debtor will,
forthwith upon receipt, transmit and deliver to the Agent, in the form received,
all cash, checks, drafts and other instruments for the payment of money
(properly endorsed where required so that such items may be collected by the
Agent) which may be received by such Debtor at any time as payment on account of
any Collateral Payment and if such request shall be made, until delivery to the
Agent, such items will be held in trust for the Agent and the Secured Parties
and will not be commingled by such Debtor with any of its other funds or
property. Thereafter, the Agent is hereby authorized and empowered to endorse
the name of such Debtor on any check, draft or other instrument for the payment
of money received by the Agent on account of any Collateral Payment if the Agent
believes such endorsement is necessary or desirable for purposes of collection.
8(c) Each Debtor will indemnify and save harmless the Agent from
and against all reasonable liabilities and expenses on account of any adverse
claim asserted against the Agent relating to any moneys received by the Agent on
account of any Collateral Payment and such obligation of such Debtor shall
continue in effect after and notwithstanding the discharge of such Debtor's
Obligations and the release of the security interest granted in Paragraph 2
above.
9. Power of Attorney.
-----------------
9(a) Each Debtor hereby grants to the Agent for the benefit of
the Secured Parties an exclusive, irrevocable power of attorney, with full power
and authority in the place and stead of such Debtor to take all such action
permitted under Paragraph 7. Each Debtor agrees to reimburse the Agent upon
demand for any costs and expenses, including, without limitation, attorneys'
fees, the Agent may incur while acting as such Debtor's attorney-in-fact
hereunder, all of which costs and expenses are included in the Obligations
secured hereby. It is further agreed and understood between the parties hereto
that such care as the Agent gives to the safekeeping of its own property of like
kind shall constitute reasonable care of the Collateral when in the Agent's
possession; provided, however, that the Agent shall not be required to make any
presentment, demand or protest, or give any notice and need not take any action
to preserve any rights against any prior party or any other person in connection
with the Obligations or with respect to the Collateral.
9(b) Each Debtor hereby grants to the Secured Parties a present,
irrevocable, paid-up royalty-free world wide and non-exclusive license under all
8
Intellectual Property Collateral owned by such Debtor or licensed to such Debtor
with the right to sublicense (both on the date hereof and in the future) to
make, have made, reproduce, have reproduced, prepare derivative works of,
perform, or display (publicly or otherwise) or otherwise use, sell, lease or
distribute any products or processes, except Intellectual Property Collateral as
to which the Secured Parties have a perfected security interest that permits
exercise of the remedies set forth herein upon an Event of Default. The Secured
Parties shall have the right to sublicense (with the right of any sublicensee to
grant further sublicenses) or unconditionally assign such license without such
Debtor's consent, limited only in the case of licenses to such Debtor of
intellectual property owned by unaffiliated third parties to the extent
permitted in the applicable license. Such license may be subject to the payment
of royalties by such Debtor to third parties.
10. Remedies. Upon the occurrence of an Event of Default, the Agent may,
--------
without notice to or demand on any Debtor and in addition to all rights and
remedies available to the Agent and the Secured Parties with respect to the
Obligations, at law, in equity or otherwise, do any one or more of the
following:
10(a) Foreclose or otherwise enforce the Agent's security
interest in any manner permitted by law or provided for in this Security
Agreement.
10(b) Sell, lease or otherwise dispose of any Collateral at one
or more public or private sales at the Agent's place of business or any other
place or places, including, without limitation, any broker's board or securities
exchange, whether or not such Collateral is present at the place of sale, for
cash or credit or future delivery, on such terms and in such manner as the Agent
may determine.
10(c) Recover from any Debtor all costs and expenses, including,
without limitation, reasonable attorneys' fees (including the allocated cost of
internal counsel), incurred or paid by the Agent or any Secured Party in
exercising any right, power or remedy provided by this Security Agreement.
10(d) Require each Debtor to assemble the Collateral and make it
available to the Agent at a place to be designated by the Agent.
10(e) Enter onto property where any Collateral is located and
take possession thereof with or without judicial process.
10(f) Prior to the disposition of the Collateral, store,
process, repair or recondition it or otherwise prepare it for disposition in any
manner and to the extent the Agent deems appropriate and in connection with such
preparation and disposition, without charge, use any trademark, tradename,
copyright, patent or technical process used by any Debtor.
9
Each Debtor shall be given five (5) Business Days' prior notice of the time and
place of any public sale or of the time after which any private sale or other
intended disposition of Collateral is to be made, which notice such Debtor
hereby agrees shall be deemed reasonable notice thereof. Upon any sale or other
disposition pursuant to this Security Agreement, the Agent shall have the right
to deliver, assign and transfer to the purchaser thereof the Collateral or
portion thereof so sold or disposed of. Each purchaser at any such sale or
other disposition (including the Agent) shall hold the Collateral free from any
claim or right of whatever kind, including any equity or right of redemption of
any Debtor and each Debtor specifically waives (to the extent permitted by law)
all rights of redemption, stay or appraisal which it has or may have under any
rule of law or statute now existing or hereafter adopted.
11. Place of Business; Collateral Location; Records Location. Each Debtor
--------------------------------------------------------
represents that its chief place of business is as set forth on Schedule 2
----------
attached hereto; that the only trade name(s) or style(s) used by such Debtor are
set forth on said Schedule 2; and that, except as otherwise disclosed to the
----------
Agent in writing prior to the date hereof, the Collateral and such Debtor's
records concerning the Collateral are located at its chief place of business.
12. Miscellaneous Provisions.
------------------------
12(a) Binding on Successors and Assigns. All provisions
---------------------------------
contained in this Security Agreement or any document or agreement referred to
herein or relating hereto shall inure to the benefit of the Agent and the
Secured Parties and their respective successors and assigns, and shall be
binding upon each Debtor, its successors and assigns.
12(b) Amendment. This Security Agreement may not be amended or
---------
terms or provisions hereof waived unless such amendment or waiver is in writing
and signed by the Agent and each Debtor.
12(c) Cumulative Rights; No Waiver. The rights, powers and
----------------------------
remedies of the Agent, and the Secured Parties hereunder are cumulative and in
addition to all rights, power and remedies provided under any and all agreements
between any Debtor and any of such Persons relating hereto, at law, in equity or
otherwise. Any delay or failure by the Agent or the Secured Parties to exercise
any right, power or remedy shall not constitute a waiver thereof by such
Persons, and no single or partial exercise by any of such Persons of any right,
power or remedy shall preclude other or further exercise thereof or any exercise
of any other rights, powers or remedies.
12(d) Entire Agreement. This Security Agreement and the
----------------
documents and agreements referred to herein embody the entire agreement and
understanding between the parties hereto and supersede all prior agreements and
understandings relating to the subject matter hereof and thereof.
12(e) Survival. All representations, warranties, covenants and
--------
agreements herein contained on the part of the Debtors shall survive the
termination of this Security
10
Agreement and shall be effective until the Obligations are paid and performed in
full or longer as expressly provided herein.
12(f) Notices. All notices given by any party to the others
--------
shall be in writing unless otherwise provided for herein, delivered by facsimile
transmission, by personal delivery or by overnight courier, addressed to the
party as set forth in the Guaranty.
12(g) Governing Law. This Security Agreement shall be governed
-------------
by and construed in accordance with the internal laws of the State of California
without giving effect to its choice of law rules.
12(h) Counterparts. This Security Agreement may be executed in
------------
any number of counterparts, all of which together shall constitute one
agreement.
12(i) Severability. The illegality or unenforceability of any
------------
provision of this Security Agreement or any instrument or agreement required
hereunder shall not in any way affect or impair the legality or enforceability
of the remaining provisions hereof or thereof.
12(j) Waiver of Hearing. Each Debtor expressly waives any
-----------------
constitutional or other right to a judicial hearing prior to the time the Agent
takes possession or disposes of the Collateral upon the occurrence of an Event
of Default.
13. Intellectual Property Collateral. For purposes of this Security
--------------------------------
Agreement, the following capitalized terms shall have the following meanings:
"Computer Hardware and Software Collateral" means all of each Debtor's
-----------------------------------------
right, title and interest in all now existing and hereafter created or acquired:
(a) Computer and other electronic data processing hardware,
integrated computer systems, central processing units, memory units, display
terminals, printers, features, computer elements, card readers, tape drives,
hard and soft disk drives, cables, electrical supply hardware, generators, power
equalizers, accessories and all peripheral devices and other related computer
hardware;
(b) Software programs (including both source code, object code
and all related applications and data files), whether owned, licensed or leased,
designed for use on the computers and electronic data processing hardware
described in subparagraph (a) above;
(c) Firmware associated therewith;
(d) Documentation (including flow charts, logic diagrams,
manuals, guides and specifications) with respect to such hardware, software and
firmware described in subparagraph (a) through (c) above; and
11
(e) Rights with respect to all of the foregoing, including,
without limitation, any and all of such Debtor's copyrights, licenses, options,
warranties, service contracts, program services, test rights, renewal rights and
indemnifications and any substitutions, replacements, additions or model
conversions of any of the foregoing.
"Copyright Collateral" means all of each Debtor's right, title and
--------------------
interest in now existing and hereafter created or acquired copyrights and all
semi-conductor chip product mask works of such Debtor, whether statutory or
common law, registered or unregistered, now or hereafter in force throughout the
world including, without limitation, all of such Debtor's right, title and
interest in and to all copyrights and mask works registered in the United States
Copyright Office or anywhere else in the world, and all applications for
registration thereof, whether pending or in preparation, all copyright and mask
work licenses, the right of such Debtor to xxx for past, present and future
infringements of any thereof, all rights of such Debtor corresponding thereto
throughout the world, all extensions and renewals of any thereof and all
proceeds of the foregoing, including, without limitation, licenses, royalties,
income, payments, claims damages and proceeds of suit.
"Patent Collateral" means all of each Debtor's right, title and
-----------------
interest in now existing and hereafter created or acquired:
(a) Letters patent and applications for letters patent
throughout the world, including all of such Debtor's patent applications in
preparation for filing anywhere in the world and with the United States Patent
and Trademark Office;
(b) Patent licenses;
(c) Reissues, divisions, continuations, continuations-in-part,
extensions, renewals and reexaminations of any of the items described in clauses
-------
(a) and (b); and
--- ---
(d) Proceeds of, and rights associated with, the foregoing
(including license royalties and proceeds of infringements suits), the right of
such Debtor to xxx third parties for past, present or future infringements of
any patent or patent application of such Debtor, and for breach of enforcement
of any patent license, and all rights corresponding thereto throughout the
world.
"Trademark Collateral" means all of each Debtor's right, title and
--------------------
interest in now existing and hereafter created or acquired:
(a) Trademarks, trade names, corporate names, business names,
fictitious business names, trade styles, service marks, certification makers,
collective marks, logos, other source of business identifiers, prints and labels
on which any of the foregoing have appeared or appear, designs and general
intangibles of a like nature (all of the foregoing items in this clause (a)
being collectively called a "Trademark"), now
12
existing anywhere in the world or hereafter adopted or acquired, whether
currently in use or not, all registrations and recordings thereof and all
applications in connection therewith, whether pending or in preparation for
filing, including registrations, recordings and applications in the United
States Patent and Trademark Office or in any office or agency of the United
States of America or any State thereof or any foreign country;
(b) Trademark licenses;
(c) Reissues, extensions or renewals of any of the items
described in clauses (a) and (b);
----------- ---
(d) The goodwill of the business of such Debtor connected with
the use of, and symbolized by the items described in, clauses (a) and (b), and
----------- ---
(e) Proceeds of, and rights of such Debtor associated with, the
foregoing, including any claim by such Debtor against third parties for past,
present or future infringement or dilution of any Trademark, Trademark
registration or Trademark license, or for any injury to the goodwill associated
with the use of any such Trademark or for breach or enforcement of any Trademark
license.
"Trade Secrets Collateral" means common law and statutory trade
------------------------
secrets and all other confidential or proprietary or useful information and all
know-how obtained by or used in or contemplated at any time for use in the
business of each Debtor (all of the foregoing being collectively called a "Trade
Secret"), whether or not such Trade Secret has been reduced to a writing or
other tangible form including all documents and things embodying, incorporating
or referring in any way to such Trade Secret, all Trade Secret licenses,
including the right to xxx for and to enjoin and to collect damages for the
actual or threatened misappropriation of any Trade Secret and for the breach or
enforcement of any such Trade Secret license.
13
EXECUTED as of the day and year first above written.
ATG RICHLAND CORPORATION, a
Washington corporation
By: /s/ Xxxxx Xxxx
-------------------------------
Name: Xxxxx Xxxx
-----------------------------
Title: Vice President
----------------------------
ATG NUCLEAR SERVICES LLC, a Delaware
limited liability company
By: /s/ Xxxxx Xxxx
-------------------------------
Name: Xxxxx Xxxx
-----------------------------
Title: Vice President
----------------------------
ATG CATALYTICS LLC, a Delaware limited
liability company
By: /s/ Xxxxx Xxxx
-------------------------------
Name: Xxxxx Xxxx
-----------------------------
Title: Vice President
----------------------------
SANWA BANK CALIFORNIA, as Agent
By: /s/ Xxxxxxxx Xxxxxx
-------------------------------
Name: Xxxxxxxx Xxxxxx
-----------------------------
Title: Vice President/Manager
----------------------------
S
LIST OF SCHEDULES AND EXHIBITS
Schedule 1 Existing Deposit Accounts
Schedule 2 Locations of Equipment, Inventory, Places of Business, Chief
Executive Office, and Books and Records and Tradenames
Exhibit A Supplemental Security Agreement (Trademarks)
Exhibit B Supplemental Security Agreement (Patents)
Exhibit C Supplemental Security Agreement (Copyrights)
Exhibit D Supplemental Security Agreement (Assignment of Governmental
Claims)
Exhibit E Notice of Assignment of Governmental Claims
Schedule 1
----------
to Security Agreement
---------------------
Deposit Accounts
(as of October 29, 1999)
for ATG, Tennessee
Institution where Account Number Amount in Account
----------------- -------------- -----------------
Account is Held
---------------
Sanwa Bank-Tennessee Office 113-55660 $ 1,898.20
Schedule 1
----------
to Security Agreement
---------------------
Deposit Accounts
as of October 29, 1999
for Fremont California
Institution where Account Number Amount in Account
----------------- -------------- -----------------
Account is held
---------------
Sanwa Bank-A/P 1134-55654 $ -
Sanwa Bank-P/R 1136-55653 $ -
Sanwa Bank-Per Diem 1132-55655 $ -
Sanwa Bank Concentration 1138-55652 $ 957,535,64
Union Bank 00000000 $ 1,389,15
Sanwa Bank-Tennessee 1139-55660 $ 1,898,20
Sanwa Bank-Money Market 1137-58446 $ 168,817.25
Sanwa Bank-Money Value 1137-55157 $ 2,668.85
Xxx Xxxxxx 487-07279 $ 1,461.78
Xxxxxx Brothers 000-00000-00 $ 19.78
General Bank 0000000000 $ 47,974.80
Schedule 2
----------
To Security Agreement
---------------------
Locations of Equipment, Inventory, Places of Business,
Chief Executive Office and Books and Records and Tradenames
The equipment, inventory, books and records of ATG, In. and its subsidiaries are
located at the following places of business:
ATG Corporate Office ATG Nuclear Services
00000 Xxxxxxx Xxxx. 0000 Xxxx Xxxxx Xxxx
Xxxxxxx, XX 00000 Xxxxxxxx, XX 00000
(000)000-0000/(800) 227-284 (000) 000-0000
Fax: (000) 000-0000 Fax: (000) 000-0000
Fax: (000) 000-0000
ATG Richland Facility ATG Catalytics
0000 Xxxxxxxx Xxxx. 0000 Xxxx Xxxxx Xxxx
Xxxxxxxx, XX 00000 Xxxxxxxx, XX 00000
(000) 000-0000/(000) 000-0000 (000) 000-0000
Fax: (000) 000-0000 Fax: (000) 000-0000
Fax: (000) 000-0000
ATG Operations - Oak Ridge ATG Columbia Maintenance Fac.
000 Xxxxx Xxxxxx Xxxx 0000 Xxxxxxxx Xxxx
Xxx Xxxxx, XX 00000 Xxxxxxxx, XX 00000
(000) 000-0000/(000) 000-0000 (000) 000-0000
Fax: (000) 000-0000 Fax (000) 000-0000
ATG Nuclear Services ATG - Hawaii
000 Xxxxx Xxxxxx Xxxx 0000 Xxxxxx Xxxxxx
Xxx Xxxxx, XX 00000 Suite 801 - Airport Center
(000) 000-0000/(000) 000-0000 Xxxxxxxx, XX 00000
Fax: (000) 000-0000 (000) 000-0000
Fax: (000) 000-0000
EXHIBIT A
---------
TO SECURITY AGREEMENT
---------------------
SUPPLEMENTAL SECURITY AGREEMENT
(Trademarks)
THIS SUPPLEMENTAL SECURITY AGREEMENT (the "Supplemental Trademark
Agreement") is made and dated this 1st day of November, 1999 by and between ATG
RICHLAND CORPORATION, a Washington corporation; ATG NUCLEAR SERVICES LLC, a
Delaware limited liability company; and ATG CATALYTICS LLC, a Delaware limited
liability company (collectively, the "Debtors" and each a "Debtor"), and SANWA
BANK CALIFORNIA, as agent (in such capacity, the "Agent") for itself, the Bond
L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders under (and as
those terms and capitalized terms not otherwise defined herein are defined in)
that certain Credit and Reimbursement Agreement dated as of November 1, 1999 by
and among ATG Inc., the Agent, the Bond L/C Issuing Bank, the Standard L/C
Issuing Bank and the Lenders from time to time party thereto (as amended,
extended and replaced from time to time, the "Credit Agreement").
RECITALS
A. Pursuant to that certain Security Agreement dated as of even date
herewith between, inter alia, Debtor and the Agent (the "Security Agreement"),
Debtor has granted to the Agent a perfected security interest in certain assets
of Debtor, including, without limitation, all patents, trademarks, service
marks, trade names, copyrights, goodwill, licenses and other intellectual
property owned by Debtor or used in Debtor's business.
B. The parties hereto desire to supplement the Security Agreement as it
relates to certain of such intellectual property consisting generally of
trademarks and to create hereby a document appropriate for recordation in the
Patent and Trademark Office of the United States (the "PTO").
NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Confirmation of Grant of Security Interest. Debtor hereby
------------------------------------------
confirms the grant of security interest, pledge, assignment and mortgage set
forth in the Security Agreement and acknowledges that the Collateral (as defined
in the Security Agreement) described
1
therein includes, without limitation, all of Debtor's right, title and interest
in the following (the "Trademark Collateral"):
(a) All trademarks, service marks, designs, logos, indicia,
tradenames, corporate names, company names, business names, fictitious
business names, trade styles and other source, product and business
identifiers pertaining to the products, services and business of Debtor,
whether now owned or hereafter acquired, including, without limitation, the
trademarks specifically described on Schedule I attached hereto, as the
----------
same may be amended or replaced from time to time with the consent of the
Agent;
(b) All now existing and hereafter arising registrations and
applications for registration relating to any of the foregoing, all
renewals and extensions thereof throughout the world in perpetuity, and all
rights to make such applications and to renew and extend the same;
(c) All now existing and hereafter arising rights and licenses to
make, have made, use and/or sell any items disclosed and claimed by any of
the foregoing;
(d) All now existing and hereafter arising right (but not the
obligation) to register claims under any state, federal or foreign
trademark law or regulation;
(e) All now existing and hereafter arising rights, claims and
interests under licensing or other contracts pertaining to any of the
foregoing to the extent such rights are assignable;
(f) All now existing and hereafter arising documents, instruments and
agreements which reveal the name and address of sources of supply,
distribution methods and all terms of purchase, rental, license or use and
delivery for all materials, products and components used in connection with
any of the foregoing;
(g) All now existing and hereafter arising specifications as to and
quality control manuals used in connection with the operations conducted
under the name of or in connection with the foregoing;
(h) All now existing and hereafter arising goodwill associated with
any of the foregoing;
(i) All now existing and hereafter arising right (but not the
obligation) to xxx or bring opposition or cancellation proceedings in the
name of Debtor or the Agent for past, present and future infringements of
any of the foregoing;
(j) All products and proceeds of any of the foregoing.
2
2. Additional Representation and Warranty and Covenant. In addition to
---------------------------------------------------
all representations and warranties, covenants and agreements set forth in the
Security Agreement, Debtor hereby:
(a) Represents and warrants that Schedule I attached hereto sets
----------
forth an accurate and complete list of all trademarks owned by Debtor which
are registered with the PTO as of the date hereof; and
(b) Agrees to promptly notify the Agent in writing of any
additional trademarks registered with the PTO of which Debtor becomes the
owner and to amend Schedule I accordingly.
----------
3. No Present Assignment. Neither the Security Agreement, this
---------------------
Supplemental Trademark Agreement nor any other document, instrument or agreement
creates or is intended to create a present assignment of the Trademark
Collateral. Subject to the rights of the Agent under the Security Agreement and
this Supplemental Trademark Agreement, it is the intention of the parties hereto
that Debtor continue to own the Trademark Collateral and that upon the
indefeasible payment and performance in full of Debtor Obligations, the rights
of the Agent under the Security Agreement and this Supplemental Trademark
Agreement in and to the Trademark Collateral shall be released and terminated.
4. Relationship to Security Agreement. The Trademark Collateral shall
----------------------------------
constitute Collateral for all purposes of the Security Agreement and the other
Loan Documents and the Agent shall have all rights, powers and remedies with
respect to the Trademark Collateral to the same extent as they have with respect
to other Collateral. Reference is hereby made to the Security Agreement, the
terms and conditions of which are incorporated herein by this reference.
3
EXECUTED as of the day and year first above written.
ATG RICHLAND CORPORATION, a Washington corporation
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
ATG NUCLEAR SERVICES LLC, a Delaware limited liability
company
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
ATG CATALYTICS LLC, a Delaware limited liability
company
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
SANWA BANK CALIFORNIA,
as Agent
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
4
Schedule I to
-------------
Trademark Security Agreement
----------------------------
List of Trademarks
[To be Provided by each Debtor]
EXHIBIT B
---------
TO SECURITY AGREEMENT
---------------------
SUPPLEMENTAL SECURITY AGREEMENT
(Patents)
THIS SUPPLEMENTAL SECURITY AGREEMENT (the "Supplemental Patent
Agreement") is made and dated this 1st day of November, 1999 by and between ATG
RICHLAND CORPORATION, a Washington corporation; ATG NUCLEAR SERVICES LLC, a
Delaware limited liability company; and ATG CATALYTICS LLC, a Delaware limited
liability company (collectively, the "Debtors" and each a "Debtor"), and SANWA
BANK CALIFORNIA, as agent (in such capacity, the "Agent") for itself, the Bond
L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders under (and as
those terms and capitalized terms not otherwise defined herein are defined in)
that certain Credit and Reimbursement Agreement dated as of November 1, 1999 by
and among ATG Inc., the Agent, the Bond L/C Issuing Bank, the Standard L/C
Issuing Bank and the Lenders from time to time party thereto (as amended,
extended and replaced from time to time, the "Credit Agreement").
RECITALS
A. Pursuant to that certain Security Agreement dated as of even date
herewith between, inter alia, Debtor and the Agent (the "Security Agreement"),
Debtor has granted to the Agent a perfected security interest in certain assets
of Debtor, including, without limitation, all patents, trademarks, service
marks, trade names, mask works, copyrights, goodwill, licenses and other
intellectual property owned by Debtor or used in Debtor's business.
B. The parties hereto desire to supplement the Security Agreement as
it relates to certain of such intellectual property consisting generally of
patents and to create hereby a document appropriate for recordation in the
Patent and Trademark Office of the United States (the "PTO").
NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Confirmation of Grant of Security Interest. Debtor hereby
------------------------------------------
confirms the grant of security interest, pledge, assignment and mortgage set
forth in the Security Agreement and acknowledges that the Collateral (as defined
in the Security Agreement) described therein includes, without limitation, all
of Debtor's right, title and interest in the following (the "Patent
Collateral"):
1
(a) All now existing or hereafter created or acquired, patents,
letters patents, inventions, patent applications and rights and works
protectable by patent, and, except to the extent prohibited by the terms
thereof, all agreements in respect of patents owned by third parties,
including, without limitation, the patents specifically described on
Schedule I attached hereto, as the same may be amended or replaced from
----------
time to time with the consent of the Agent;
(b) All now existing and hereafter arising registrations and
applications for registration relating to any of the foregoing, all
renewals and extensions thereof throughout the world in perpetuity, and all
rights to make such applications and to renew and extend the same;
(c) All now existing and hereafter arising rights and licenses to
make, have made, use and/or sell the inventions disclosed and claimed by
any of the foregoing;
(d) All now existing and hereafter arising right (but not the
obligation) to register claims under any state, federal or foreign patent
law or regulation;
(e) All now existing and hereafter arising rights, claims and
interests under licensing or other contracts pertaining to any of the
foregoing to the extent such rights are assignable;
(f) All now existing and hereafter arising documents, instruments and
agreements which reveal the name and address of sources of supply,
distribution methods and all terms of purchase, rental, license or use and
delivery for all materials, products and components used in connection with
any of the foregoing;
(g) All now existing and hereafter arising specifications as to and
quality control manuals used in connection with the operations utilizing
any of the foregoing;
(h) All now existing and hereafter arising goodwill associated with
any of the foregoing;
(i) All now existing and hereafter arising right (but not the
obligation) to xxx or bring opposition or cancellation proceedings in the
name of Debtor or the Agent for past, present and future infringements of
any of the foregoing; and
(j) All products and proceeds of any of the foregoing.
2. Additional Representation and Warranty and Covenant. In addition to
---------------------------------------------------
all representations and warranties, covenants and agreements set forth in the
Security Agreement, Debtor hereby:
2
(a) Represents and warrants that Schedule I attached hereto sets forth
----------
an accurate and complete list of all patents owned by Debtor which are
registered with the PTO as of the date hereof; and
(b) Agrees to promptly notify the Agent in writing of any additional
patents registered with the PTO of which Debtor becomes the owner and to
amend Schedule I accordingly.
----------
3. No Present Assignment. Neither the Security Agreement, this
---------------------
Supplemental Patent Agreement nor any other document, instrument or agreement
creates or is intended to create a present assignment of the Patent Collateral.
Subject to the rights of the Agent under the Security Agreement and this
Supplemental Patent Agreement, it is the intention of the parties hereto that
Debtor continue to own the Patent Collateral and that upon the indefeasible
payment and performance in full of Debtor Obligations, the rights of the Agent
under the Security Agreement and this Supplemental Patent Agreement in and to
the Patent Collateral shall be released and terminated.
4. Relationship to Security Agreement. The Patent Collateral shall
----------------------------------
constitute Collateral for all purposes of the Security Agreement and the other
Loan Documents and the Agent shall have all rights, powers and remedies with
respect to the Patent Collateral to the same extent as they have with respect to
other Collateral. Reference is hereby made to the Security Agreement, the terms
and conditions of which are incorporated herein by this reference.
3
EXECUTED as of the day and year first above written.
ATG RICHLAND CORPORATION, a Washington corporation
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
ATG NUCLEAR SERVICES LLC, a Delaware limited liability
company
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
ATG CATALYTICS LLC, a Delaware limited liability
company
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
SANWA BANK CALIFORNIA,
as Agent
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
4
Schedule I
----------
to Patent Security Agreement
----------------------------
Description of Patents
[To be Provided by each Debtor]
EXHIBIT C
---------
TO SECURITY AGREEMENT
---------------------
SUPPLEMENTAL SECURITY AGREEMENT
(Copyrights)
THIS SUPPLEMENTAL SECURITY AGREEMENT (the "Supplemental Copyright
Agreement") is made and dated this 1st day of November, 1999 by and between ATG
RICHLAND CORPORATION, a Washington corporation; ATG NUCLEAR SERVICES LLC, a
Delaware limited liability company; and ATG CATALYTICS LLC, a Delaware limited
liability company (collectively, the "Debtors" and each a "Debtor"), and SANWA
BANK CALIFORNIA, as agent (in such capacity, the "Agent") for itself, the Bond
L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders under (and as
those terms and capitalized terms not otherwise defined herein are defined in)
that certain Credit and Reimbursement Agreement dated as of November 1, 1999 by
and among ATG Inc., the Agent, the Bond L/C Issuing Bank, the Standard L/C
Issuing Bank and the Lenders from time to time party thereto (as amended,
extended and replaced from time to time, the "Credit Agreement").
RECITALS
A. Pursuant to that certain Security Agreement dated as of even date
herewith between, inter alia, Debtor and the Agent (the "Security Agreement"),
Debtor has granted to the Agent a perfected security interest in certain assets
of Debtor, including, without limitation, all patents, trademarks, service
marks, trade names, copyrights, goodwill, licenses and other intellectual
property owned by Debtor or used in Debtor's business.
B. The parties hereto desire to supplement the Security Agreement as
it relates to certain of such intellectual property consisting generally of
copyrights and to create hereby a document appropriate for recordation in the
Copyright Office of the United States (the "Copyright Office").
NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Confirmation of Grant of Security Interest. Debtor hereby
------------------------------------------
confirms the grant of the security interest, pledge, assignment and mortgage set
forth in the Security Agreement and acknowledges that the Collateral (as defined
in the Security Agreement) described therein includes, without limitation, all
of Debtor's right, title and interest in the following (the "Copyright
Collateral"):
2
(a) All copyrights of Debtor, whether now owned or hereafter
acquired, including, without limitation, copyrights in the titles
specifically described on Schedule I attached hereto, as the same may be
----------
amended or replaced from time to time with the consent of the Agent;
(b) All now existing and hereafter arising registrations and
applications for registration relating to any of the foregoing, all
renewals and extensions thereof throughout the world in perpetuity, and all
rights to make such applications and to renew and extend the same;
(c) All now existing and hereafter arising rights and licenses to
make, have made, use and/or sell any items disclosed and claimed by any of
the foregoing;
(d) All now existing and hereafter arising right (but not the
obligation) to register claims under any state, federal or foreign
copyright law or regulation;
(e) All now existing and hereafter arising rights, claims and
interests under licensing or other contracts pertaining to any of the
foregoing;
(f) All now existing and hereafter arising documents, instruments and
agreements which reveal the name and address of sources of supply,
distribution methods and all terms of purchase, rental, license or use and
delivery for all materials, products and components used in connection with
any of the foregoing;
(g) All now existing and hereafter arising goodwill associated with
any of the foregoing;
(h) All now existing and hereafter arising right (but not the
obligation) to xxx or bring opposition or cancellation proceedings in the
name of Debtor or the Agent for past, present and future infringements of
any of the foregoing;
(i) All products and Proceeds of any of the foregoing.
2. Additional Representation and Warranty and Covenant. In addition to
---------------------------------------------------
all representations and warranties, covenants and agreements set forth in the
Security Agreement, Debtor hereby:
(a) Represents and warrants that Schedule I attached hereto sets
----------
forth an accurate and complete list of all copyrights owned by Debtor which
are registered with the Copyright Office; and
(b) Agrees to promptly notify the Agent in writing of any additional
copyright of which Debtor becomes the owner and to amend Schedule I
----------
accordingly.
3
3. No Present Assignment. Neither the Security Agreement, this
---------------------
Supplemental Copyright Agreement nor any other document, instrument or agreement
creates or is intended to create a present assignment of the Copyright
Collateral. Subject to the rights of the Agent under the Security Agreement and
this Supplemental Copyright Agreement, it is the intention of the parties hereto
that Debtor continue to own the Copyright Collateral and that upon the
indefeasible payment and performance in full of Debtor Obligations, the rights
of the Agent under the Security Agreement and this Supplemental Copyright
Agreement in and to the Copyright Collateral shall be released and terminated.
4. Relationship to Security Agreement. The Copyright Collateral shall
----------------------------------
constitute Collateral for all purposes of the Security Agreement and the other
Loan Documents and the Agent shall have all rights, powers and remedies with
respect to the Copyright Collateral to the same extent as they have with respect
to other Collateral. Reference is hereby made to the Security Agreement, the
terms and conditions of which are incorporated herein by this reference.
EXECUTED as of the day and year first above written.
ATG RICHLAND CORPORATION, a
Washington corporation
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
ATG NUCLEAR SERVICES LLC, a Delaware
limited liability company
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
4
ATG CATALYTICS LLC, a Delaware limited
liability company
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
SANWA BANK CALIFORNIA, as Agent
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
5
Schedule 1
----------
to Copyright Security Agreement
-------------------------------
Description of Copyrights
[To be Provided by each Debtor]
EXHIBIT D
---------
TO SECURITY AGREEMENT
---------------------
IRREVOCABLE POWER OF ATTORNEY
ATG RICHLAND CORPORATION, a Washington corporation; ATG NUCLEAR SERVICES
LLC, a Delaware limited liability company; and ATG CATALYTICS LLC, a Delaware
limited liability company having offices in 00000 Xxxxxxx Xxxx., Xxxxxxx, XX
00000 (collectively, the "Debtors" and each a "Debtor"), hereby grants to SANWA
BANK CALIFORNIA, as agent ("Agent"), an exclusive Irrevocable Power of Attorney
to (i) transfer copyrights and applications therefor owned by Debtor from time
to time, (ii) transfer trademarks and applications therefor owned by Debtor from
time to time, (iii) transfer patents and applications therefor owned by Debtor
from time to time, (iv) renew, extend, and protect the foregoing, and (v)
register and record any such transfer, renewal, extension and protection, all in
accordance with that certain Credit and Reimbursement Agreement dated as of
November 1, 1999 among ATG Inc., Agent, the Bond L/C Issuing Bank, the Standard
L/C Issuing Bank and the Lenders from time to time party thereto (the "Credit
Agreement" and as those terms and other capitalized terms not otherwise defined
herein are defined in the Credit Agreement) and related documents.
1. The Power of Attorney granted hereunder shall be effective as of
the date hereof and shall last for as long as any now existing or hereafter
arising Obligations (as defined in the Security Agreement) of Debtor remain
outstanding (other than surviving indemnity obligations).
2. The Power of Attorney granted herein shall be irrevocable
throughout the duration of its life specified in Paragraph 1 above and is
-----------
coupled with an interest; it is created for the benefit of the attorney in fact,
Agent, rather than for Debtor.
3. This Power of Attorney is created simultaneously with the
imposition of other obligations upon Debtor in favor of Agent under the Loan
Documents.
4. The Power of Attorney granted hereunder gives and grants unto
said attorney in fact, Agent, full power of substitution to substitute another
party for Agent in accordance with the Loan Documents.
5. The Power of Attorney granted herein is created to secure the
performance of the obligations under the Guaranty and the other Loan Documents
and shall be exercisable by Agent only after the occurrence and during the
continuance of an Event of Default.
1
IN WITNESS WHEREOF, Debtor has caused this Irrevocable Power of
Attorney to be executed by its officer thereunto duly authorized, as of November
1, 1999.
ATG RICHLAND CORPORATION, a
Washington corporation
By:
_______________________________________
Name:
_______________________________________
Title:
_______________________________________
ATG NUCLEAR SERVICES LLC, a Delaware
limited liability company
By:
_______________________________________
Name:
_______________________________________
Title:
_______________________________________
ATG CATALYTICS LLC, a Delaware limited
liability company
By:
_______________________________________
Name:
_______________________________________
Title:
_______________________________________
2
EXHIBIT E
---------
TO SECURITY AGREEMENT
---------------------
NOTICE OF ASSIGNMENT OF GOVERNMENTAL CLAIMS
_____________________
_____________________
_____________________
(address to one of the parties specified in 32.802(e)).
This has reference to Contract No. _____ dated _____________, 199_, entered
into between _________________________ [contractor's name and address] (the
"Contractor") and [government agency, name of office, and address], for
_________ [describe nature of the contract].
Moneys due or to become due under the contract described above have been
assigned to the undersigned under the provisions of the Assignment of Claims Act
of 1940, as amended, 31 U.S.C. 3727, 41 U.S.C. 15.
A true copy of the instrument of assignment executed by the Contractor on
[date], is attached to this notice as Exhibit A.
---------
Payments due or to become due under this contract should be made to the
undersigned assignee.
Please return to the undersigned the three enclosed copies of this notice
with appropriate notations showing the date and hour of receipt, and signed by
the person acknowledging receipt on behalf of the addressee.
____________________________________
(name of assignee)
By: ________________________________
(signature of signing officer)
________________________
________________________
________________________
(address of assignee)
3
ACKNOWLEDGEMENT
Receipt is acknowledged of the above notice and of a copy of the instrument
of assignment. They were received at _______ (a.m.) (p.m.) on ___________,
1999.
____________________________________
(signature)
____________________________________
(title)
On behalf of
____________________________________
(name of addressee of this notice)
5
PATENT SECURITY AGREEMENT
THIS SUPPLEMENTAL SECURITY AGREEMENT (the "Supplemental Patent
Agreement") is made and dated this 1st day of November, 1999 by and between ATG
CATALYTICS LLC, a Delaware limited liability company ("Debtor"), and SANWA BANK
CALIFORNIA, as agent (in such capacity, the "Agent") for itself, the Bond L/C
Issuing Bank, the Standard L/C Issuing Bank and the Lenders under (and as those
terms and capitalized terms not otherwise defined herein are defined in) that
certain Credit and Reimbursement Agreement dated as of November 1, 1999 by and
among ATG Inc., the Agent, the Bond L/C Issuing Bank, the Standard L/C Issuing
Bank and the Lenders from time to time party thereto (as amended, extended and
replaced from time to time, the "Credit Agreement").
RECITALS
A. Pursuant to that certain Security Agreement dated as of even date
herewith between, inter alia, Debtor and the Agent (the "Security Agreement"),
Debtor has granted to the Agent a perfected security interest in certain assets
of Debtor, including, without limitation, all patents, trademarks, service
marks, trade names, mask works, copyrights, goodwill, licenses and other
intellectual property owned by Debtor or used in Debtor's business.
B. The parties hereto desire to supplement the Security Agreement as
it relates to certain of such intellectual property consisting generally of
patents and to create hereby a document appropriate for recordation in the
Patent and Trademark Office of the United States (the "PTO").
NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Confirmation of Grant of Security Interest. Debtor hereby confirms
------------------------------------------
the grant of security interest, pledge, assignment and mortgage set forth in the
Security Agreement and acknowledges that the Collateral (as defined in the
Security Agreement) described therein includes, without limitation, all of
Debtor's right, title and interest in the following (the "Patent Collateral"):
(a) All now existing or hereafter created or acquired, patents,
letters patents, inventions, patent applications and rights and works
protectable by patent, and, except to the extent prohibited by the terms
thereof, all agreements
1
in respect of patents owned by third parties, including, without
limitation, the patents specifically described on Schedule I attached
----------
hereto, as the same may be amended or replaced from time to time with the
consent of the Agent;
(b) All now existing and hereafter arising registrations and
applications for registration relating to any of the foregoing, all
renewals and extensions thereof throughout the world in perpetuity, and all
rights to make such applications and to renew and extend the same;
(c) All now existing and hereafter arising rights and licenses to
make, have made, use and/or sell the inventions disclosed and claimed by
any of the foregoing;
(d) All now existing and hereafter arising right (but not the
obligation) to register claims under any state, federal or foreign patent
law or regulation;
(e) All now existing and hereafter arising rights, claims and
interests under licensing or other contracts pertaining to any of the
foregoing to the extent such rights are assignable;
(f) All now existing and hereafter arising documents, instruments and
agreements which reveal the name and address of sources of supply,
distribution methods and all terms of purchase, rental, license or use and
delivery for all materials, products and components used in connection with
any of the foregoing;
(g) All now existing and hereafter arising specifications as to and
quality control manuals used in connection with the operations utilizing
any of the foregoing;
(h) All now existing and hereafter arising goodwill associated with
any of the foregoing;
(i) All now existing and hereafter arising right (but not the
obligation) to xxx or bring opposition or cancellation proceedings in the
name of Debtor or the Agent for past, present and future infringements of
any of the foregoing; and
(j) All products and proceeds of any of the foregoing.
2. Additional Representation and Warranty and Covenant. In addition to
---------------------------------------------------
all representations and warranties, covenants and agreements set forth in the
Security Agreement, Debtor hereby:
2
(a) Represents and warrants that Schedule I attached hereto sets
----------
forth an accurate and complete list of all patents owned by Debtor which
are registered with the PTO as of the date hereof; and
(b) Agrees to promptly notify the Agent in writing of any additional
patents registered with the PTO of which Debtor becomes the owner and to
amend Schedule I accordingly.
----------
3. No Present Assignment. Neither the Security Agreement, this
---------------------
Supplemental Patent Agreement nor any other document, instrument or agreement
creates or is intended to create a present assignment of the Patent Collateral.
Subject to the rights of the Agent under the Security Agreement and this
Supplemental Patent Agreement, it is the intention of the parties hereto that
Debtor continue to own the Patent Collateral and that upon the indefeasible
payment and performance in full of Debtor Obligations, the rights of the Agent
under the Security Agreement and this Supplemental Patent Agreement in and to
the Patent Collateral shall be released and terminated.
4. Relationship to Security Agreement. The Patent Collateral shall
----------------------------------
constitute Collateral for all purposes of the Security Agreement and the other
Loan Documents and the Agent shall have all rights, powers and remedies with
respect to the Patent Collateral to the same extent as they have with respect to
other Collateral. Reference is hereby made to the Security Agreement, the terms
and conditions of which are incorporated herein by this reference.
3
EXECUTED as of the day and year first above written.
ATG CATALYTICS LLC, a Delaware limited liability
company
By: /s/ Xxxxx Xxxx
-------------------------------
Name: Xxxxx Xxxx
-----------------------------
Title: Manager
----------------------------
SANWA BANK CALIFORNIA,
as Agent
By: /s/ Xxxxxxxx Xxxxxx
-------------------------------
Name: Xxxxxxxx Xxxxxx
-----------------------------
Title: Vice President/Manager
----------------------------
4
Schedule I
----------
to Patent Security Agreement
----------------------------
Description of Patents
Patent Right for Non Exclusive Use in the QCEP processing
Patent # Patent Issued Title of Invention
-------- ------------- ------------------
5,443,572 8/22/95 Apparatus and Method for a
Submerged Injection of a Feed
Composition into a Molten Metal
Bath (MMT)
PATENT SECURITY AGREEMENT
THIS SUPPLEMENTAL SECURITY AGREEMENT (the "Supplemental Patent
Agreement") is made and dated this 1st day of November, 1999 by and between ATG
NUCLEAR SERVICES LLC, a Delaware limited liability company ("Debtor") and SANWA
BANK CALIFORNIA, as agent (in such capacity, the "Agent") for itself, the Bond
L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders under (and as
those terms and capitalized terms not otherwise defined herein are defined in)
that certain Credit and Reimbursement Agreement dated as of November 1, 1999 by
and among ATG Inc., the Agent, the Bond L/C Issuing Bank, the Standard L/C
Issuing Bank and the Lenders from time to time party thereto (as amended,
extended and replaced from time to time, the "Credit Agreement").
RECITALS
A. Pursuant to that certain Security Agreement dated as of even date
herewith between, inter alia, Debtor and the Agent (the "Security Agreement"),
Debtor has granted to the Agent a perfected security interest in certain assets
of Debtor, including, without limitation, all patents, trademarks, service
marks, trade names, mask works, copyrights, goodwill, licenses and other
intellectual property owned by Debtor or used in Debtor's business.
B. The parties hereto desire to supplement the Security Agreement as
it relates to certain of such intellectual property consisting generally of
patents and to create hereby a document appropriate for recordation in the
Patent and Trademark Office of the United States (the "PTO").
NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1. Confirmation of Grant of Security Interest. Debtor hereby confirms
------------------------------------------
the grant of security interest, pledge, assignment and mortgage set forth in the
Security Agreement and acknowledges that the Collateral (as defined in the
Security Agreement) described therein includes, without limitation, all of
Debtor's right, title and interest in the following (the "Patent Collateral"):
(a) All now existing or hereafter created or acquired, patents,
letters patents, inventions, patent applications and rights and works
protectable by patent, and, except to the extent prohibited by the terms
thereof, all agreements in respect of patents owned by third parties,
including, without limitation, the patents specifically described on
Schedule I attached hereto, as the same may be amended or replaced from
----------
time to time with the consent of the Agent;
1
(b) All now existing and hereafter arising registrations and
applications for registration relating to any of the foregoing, all
renewals and extensions thereof throughout the world in perpetuity, and all
rights to make such applications and to renew and extend the same;
(c) All now existing and hereafter arising rights and licenses to
make, have made, use and/or sell the inventions disclosed and claimed by
any of the foregoing;
(d) All now existing and hereafter arising right (but not the
obligation) to register claims under any state, federal or foreign patent
law or regulation;
(e) All now existing and hereafter arising rights, claims and
interests under licensing or other contracts pertaining to any of the
foregoing to the extent such rights are assignable;
(f) All now existing and hereafter arising documents, instruments and
agreements which reveal the name and address of sources of supply,
distribution methods and all terms of purchase, rental, license or use and
delivery for all materials, products and components used in connection with
any of the foregoing;
(g) All now existing and hereafter arising specifications as to and
quality control manuals used in connection with the operations utilizing
any of the foregoing;
(h) All now existing and hereafter arising goodwill associated with
any of the foregoing;
(i) All now existing and hereafter arising right (but not the
obligation) to xxx or bring opposition or cancellation proceedings in the
name of Debtor or the Agent for past, present and future infringements of
any of the foregoing; and
(j) All products and proceeds of any of the foregoing.
2. Additional Representation and Warranty and Covenant. In addition to
---------------------------------------------------
all representations and warranties, covenants and agreements set forth in the
Security Agreement, Debtor hereby:
(a) Represents and warrants that Schedule I attached hereto sets
----------
forth an accurate and complete list of all patents owned by Debtor which
are registered with the PTO as of the date hereof; and
(b) Agrees to promptly notify the Agent in writing of any additional
patents registered with the PTO of which Debtor becomes the owner and to
amend Schedule I accordingly.
----------
3. No Present Assignment. Neither the Security Agreement, this
---------------------
Supplemental Patent Agreement nor any other document, instrument or agreement
creates or is intended to create a present assignment of the Patent Collateral.
Subject to the rights of the Agent under the Security Agreement and this
Supplemental Patent Agreement, it is the intention of the parties hereto that
Debtor continue to own the Patent Collateral and that upon the indefeasible
payment and performance in full of Debtor Obligations, the rights of the Agent
under the
2
Security Agreement and this Supplemental Patent Agreement in and to the Patent
Collateral shall be released and terminated.
4. Relationship to Security Agreement. The Patent Collateral shall
----------------------------------
constitute Collateral for all purposes of the Security Agreement and the other
Loan Documents and the Agent shall have all rights, powers and remedies with
respect to the Patent Collateral to the same extent as they have with respect to
other Collateral. Reference is hereby made to the Security Agreement, the terms
and conditions of which are incorporated herein by this reference.
3
EXECUTED as of the day and year first above written.
ATG NUCLEAR SERVICES LLC,
a Delaware limited liability company
By: /s/ Xxxxx Xxxx
------------------------------
Name: Xxxxx Xxxx
----------------------------
Title: Manager
---------------------------
SANWA BANK CALIFORNIA,
as Agent
By: /s/ Xxxxxxxx Xxxxxx
------------------------------
Name: Xxxxxxxx Xxxxxx
----------------------------
Title: Vice President/Manager
---------------------------
4
Schedule I
----------
to Patent Security Agreement
----------------------------
Description of Patents
Patent # Patent Issued Title of Invention
-------- ------------- ------------------
4,434,074 2/28/1984 Process for Water, Volume Reduction (Vectra)
4,952,339 8/28/1990 Resin Drying System (Vectra)
4,762,647 9/10/1986 Ion Exchange Resin Volume Reduction (Westinghouse)
4,926,046 12/12/1988 Volumetrically Efficient Container (Westinghouse)
4,983,282 11/16/1989 Apparatus for Removing Liquid (Westinghouse)
5,022,995 5/16/1990 Apparatus for Removing Liquid (Westinghouse)
5,143,615 1/25/1991 Apparatus for Removing Liquid (Westinghouse)
5,227,060 7/13/1993 Apparatus for Removing Liquid (Westinghouse)
5,564,103 1/30/1995 Volume Reduction of Depleted Ion Exchange Bead Resin
(Westinghouse)
IRREVOCABLE POWER OF ATTORNEY
ATG RICHLAND CORPORATION, a Washington corporation; ATG NUCLEAR SERVICES
LLC, a Delaware limited liability company; and ATG CATALYTICS LLC, a Delaware
limited liability company, having offices in 00000 Xxxxxxx Xxxx., Xxxxxxx, XX
00000 (collectively, the "Debtors" and each a "Debtor"), hereby grants to SANWA
BANK CALIFORNIA, as agent ("Agent"), an exclusive Irrevocable Power of Attorney
to (i) transfer copyrights and applications therefor owned by Debtor from time
to time, (ii) transfer trademarks and applications therefor owned by Debtor from
time to time, (iii) transfer patents and applications therefor owned by Debtor
from time to time, (iv) renew, extend, and protect the foregoing, and (v)
register and record any such transfer, renewal, extension and protection, all in
accordance with that certain Credit and Reimbursement Agreement dated as of
November 1, 1999 among ATG Inc., Agent, the Bond L/C Issuing Bank, the Standard
L/C Issuing Bank and the Lenders from time to time party thereto (the "Credit
Agreement" and as those terms and other capitalized terms not otherwise defined
herein are defined in the Credit Agreement) and related documents.
1. The Power of Attorney granted hereunder shall be effective as of
the date hereof and shall last for as long as any now existing or hereafter
arising Obligations (as defined in the Security Agreement) of Debtor remain
outstanding (other than surviving indemnity obligations).
2. The Power of Attorney granted herein shall be irrevocable
throughout the duration of its life specified in Paragraph 1 above and is
-----------
coupled with an interest; it is created for the benefit of the attorney in fact,
Agent, rather than for Debtor.
3. This Power of Attorney is created simultaneously with the
imposition of other obligations upon Debtor in favor of Agent under the Loan
Documents.
4. The Power of Attorney granted hereunder gives and grants unto
said attorney in fact, Agent, full power of substitution to substitute another
party for Agent in accordance with the Loan Documents.
5. The Power of Attorney granted herein is created to secure the
performance of the obligations under the Guaranty and the other Loan Documents
and shall be exercisable by Agent only after the occurrence and during the
continuance of an Event of Default.
IN WITNESS WHEREOF, Debtor has caused this Irrevocable Power of
Attorney to be executed by its officer thereunto duly authorized, as of November
1, 1999.
ATG RICHLAND CORPORATION, a Washington
corporation
By: /s/ Xxxxx Xxxx
--------------------------------
Name: Xxxxx Xxxx
------------------------------
Title: Vice President
-----------------------------
ATG NUCLEAR SERVICES LLC, a Delaware limited
liability company
By: /s/ Xxxxx Xxxx
--------------------------------
Name: Xxxxx Xxxx
------------------------------
Title: Manager
-----------------------------
ATG CATALYTICS LLC, a Delaware limited liability
company
By: /s/ Xxxxx Xxxx
--------------------------------
Name: Xxxxx Xxxx
------------------------------
Title: Manager
-----------------------------
CONTINUING GUARANTY
THIS CONTINUING GUARANTY (the "Guaranty") is made and dated as of the
1st day of November, 1999, by ATG RICHLAND CORPORATION, a Washington
corporation; ATG NUCLEAR SERVICES LLC, a Delaware limited liability company; and
ATG CATALYTICS LLC, a Delaware limited liability company (collectively, the
"Guarantors" and each a "Guarantor") for the benefit of SANWA BANK CALIFORNIA,
as agent (in such capacity, the "Agent") for the Bond L/C Issuing Bank, the
Standard L/C Issuing Bank and the Lenders under the Credit Agreement referred to
below. [Capitalized terms used but not otherwise defined herein shall have the
meanings assigned to such terms in the Credit Agreement referred to below.]
RECITALS
A. Pursuant to that certain Credit and Reimbursement Agreement dated
as of November 1, 1999 (as the same may be amended, extended or replaced from
time to time, the "Credit Agreement," and with capitalized terms not otherwise
defined herein used with the meanings given such terms in the Credit Agreement)
by and among ATG Inc., a California corporation (the "Company"), the Agent for
the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders under
the Credit Agreement, the Bond L/C Issuing Bank, the Standard L/C Issuing Bank
and the Lenders from time to time party thereto, the Lenders have agreed to
extend credit to the Company on the terms and subject to the conditions set
forth in the Credit Agreement.
B. Pursuant to the Credit Agreement and as a condition precedent to
the obligation of the Lenders to extend credit thereunder, each Guarantor is
required to execute and deliver this Guaranty to the Agent for the benefit of
the Bond L/C Issuing Bank, the Standard L/C Issuing Bank and the Lenders
(collectively, the "Secured Parties").
NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, each Guarantor hereby agrees as follows:
AGREEMENT
1. Each Guarantor, jointly and severally, hereby irrevocably and
unconditionally guarantees the payment when due, upon maturity, acceleration or
otherwise, of the Obligations, whether heretofore, now, or hereafter made,
incurred or created, whether voluntary or involuntary and however arising,
absolute or contingent, liquidated or unliquidated, determined or undetermined,
whether or not such Obligations are from time to time reduced, or extinguished
and thereafter increased or incurred, whether the Company may be liable
individually or jointly with others, whether or not recovery upon such
Obligations may be or hereafter become barred by any statute of limitations, and
whether or not such Obligations may be or hereafter become otherwise invalid or
unenforceable[; provided, however, that each
Guarantor shall be liable under this Guaranty for the maximum amount of such
liability that can be hereby incurred without rendering this Guaranty, as it
relates to such Guarantor, voidable under applicable law relating to fraudulent
obligations, fraudulent conveyance, or fraudulent transfer, and not for any
greater amount]. This is a continuing guaranty relating to any and all
Obligations including those arising under successive transactions which shall
either continue the Obligations or from time to time renew the same after such
have been satisfied.
2. Each Guarantor, jointly and severally, irrevocably and
unconditionally guarantees the payment of the Obligations whether or not due or
payable by the Company upon: (a) the dissolution, insolvency or business failure
of, or any assignment for benefit of creditors by, or commencement of any
bankruptcy, reorganization, arrangement, moratorium or other debtor relief
proceedings by or against, the Company or any Guarantor, or (b) the appointment
of a receiver for, or the attachment, restraint of or making or levying of any
order of court or legal process affecting, the property of the Company or any
Guarantor, and unconditionally promises to pay such Obligations to the Agent for
the benefit of the Secured Parties, or order, on demand, in lawful money of the
United States.
3. The liability of each Guarantor hereunder is exclusive and
independent of any security for or other guaranty of the Obligations, whether
executed by any Guarantor or by any other party, and the liability of each
Guarantor hereunder is not affected or impaired by (a) any direction of
application of payment by the Company or by any other party, or (b) any other
guaranty, undertaking or maximum liability of any Guarantor or of any other
party as to the Obligations, or (c) any payment on or in reduction of any such
other guaranty or undertaking, or (d) any revocation or release of any
obligations of any other guarantor of the Obligations, or (e) any dissolution,
termination or increase, decrease or change in personnel of any Guarantor, or
(f) any payment made to the Secured Parties or the Agent on the Obligations
which any of such Persons repay to the Company pursuant to court order in any
bankruptcy, reorganization, arrangement, moratorium or other debtor relief
proceeding, and each Guarantor waives any right to the deferral or modification
of such Guarantor's obligations hereunder by reason of any such proceeding.
4. (a) The obligations of each Guarantor hereunder are independent
of the Obligations of the Company, and a separate action or actions may be
brought and prosecuted against any Guarantor whether or not action is brought
against the Company and whether or not the Company be joined in any such action
or actions. Each Guarantor waives, to the fullest extent permitted by law, the
benefit of any statute of limitations affecting its liability hereunder or the
enforcement thereof. Any payment by the Company or other circumstance which
operates to toll any statute of limitations as to the Company shall operate to
toll the statute of limitations as to each Guarantor.
(b) All payments made by any Guarantor under this Guaranty shall
be made without set-off or counterclaim and free and clear of and without
deductions for any present or future taxes, fees, withholdings or conditions of
any nature ("Taxes"). Each Guarantor shall pay any such Taxes, including Taxes
on any amounts so paid, and will promptly furnish each Lender with copies of any
tax receipts or such other evidence of payment as the Secured
2
Parties or the Agent may require. Each Guarantor shall not be liable for such
taxes (including income taxes or franchise taxes) as are imposed on or measured
by each Lender's net income by the jurisdiction (or any political subdivision
thereof) under the laws of which such Lender is organized or maintains a lending
office.
5. Each Guarantor authorizes the Secured Parties and the Agent
(whether or not after termination of this Guaranty), without notice or demand
(except as shall be required by applicable statute and cannot be waived), and
without affecting or impairing its liability hereunder, from time to time to (a)
renew, compromise, extend, increase, accelerate or otherwise change the time for
payment of, or otherwise change the terms of, the Obligations or any part
thereof, including increase or decrease of the rate of interest thereon; (b)
take and hold security for the payment of this Guaranty or the Obligations and
exchange, enforce, waive and release any such security; (c) apply such security
and direct the order or manner of sale thereof as the Secured Parties and the
Agent in their discretion may determine; and (d) release or substitute any one
or more endorsers, guarantors, the Company or other obligors. The Secured
Parties and the Agent may without notice to or the further consent of the
Company or any Guarantor assign this Guaranty in whole or in part to any person
acquiring an interest in the Obligations.
6. It is not necessary for the Secured Parties or the Agent to
inquire into the capacity or power of the Company or the officers acting or
purporting to act on its behalf, and Obligations made or created in reliance
upon the professed exercise of such powers shall be guaranteed hereunder.
7. Each Guarantor waives any right to require the Secured Parties or
the Agent to: (a) proceed against the Company or any other party; (b) proceed
against or exhaust any security held from the Company; or (c) pursue any other
remedy in the Secured Parties' power whatsoever. Each Guarantor waives any
personal defense based on or arising out of any personal defense of the Company
other than payment in full of the Obligations, including, without limitation,
any defense based on or arising out of the disability of the Company, or the
invalidity or unenforceability of the Obligations or any part thereof from any
cause, or the cessation from any cause of the liability of the Company other
than payment in full of the Obligations. The Secured Parties and the Agent may,
at their election, foreclose on any security held for the Obligations by one or
more judicial or nonjudicial sales, or exercise any other right or remedy the
Secured Parties and the Agent may have against the Company, or any security,
without affecting or impairing in any way the liability of any Guarantor
hereunder except to the extent the Obligations have been paid. Each Guarantor
waives any defense arising out of any such election, even though such election
operates to impair or extinguish any right of reimbursement or subrogation or
other right or remedy of such Guarantor against the Company or any security.
Each Guarantor hereby waives any claim or other rights which such Guarantor may
now have or may hereafter acquire against the Company or any other guarantor of
all or any of the Obligations that arise from the existence or performance of
such Guarantor's obligations under this Guaranty or any other of the Loan
Documents (as such claims and rights being referred to as the "Guarantor's
Conditional Rights"), including, without limitation, any right of subrogation,
reimbursement, exoneration, contribution, or indemnification, or any right to
participate in any claim or remedy which the Secured Parties or the Agent have
against the Company or any
3
collateral which the Secured Parties and the Agent now have or hereafter acquire
for the Obligations, whether or not such claim, remedy or right arises in equity
or under contract, statute or common law, by any payment made hereunder or
otherwise, including, without limitation, the right to take or receive from the
Company, directly or indirectly, in cash or other property or setoff or in any
other manner, payment or security on account of such claim or other rights. If,
notwithstanding the foregoing provisions, any amount shall be paid to any
Guarantor on account of Guarantor's Conditional Rights and either (a) such
amount is paid to such Guarantor at any time when the Obligations shall not have
been paid or performed in full, or (b) regardless of when such amount is paid to
such Guarantor any payment made by the Company to the Secured Parties or the
Agent is at any time determined to be a preferential payment, then such amount
paid to such Guarantor shall be deemed to be held in trust for the benefit of
the Secured Parties or the Agent and shall forthwith be paid to the Secured
Parties or the Agent to be credited and applied upon the Obligations, whether
matured or unmatured, in such order and manner as the Secured Parties or the
Agent shall determine. To the extent that any of the provisions of this
Paragraph shall not be enforceable, each Guarantor agrees that until such time
as the Obligations have been paid and performed in full and the period of time
has expired during which any payment made by the Company or such Guarantor to
the Secured Parties or the Agent may be determined to be a preferential payment,
Guarantor's Conditional Rights to the extent not validly waived shall be
subordinate to the Secured Parties' or the Agent's right to full payment and
performance of the Obligations and Guarantor shall not seek to enforce
Guarantor's Conditional Rights during such period. Each Guarantor waives all
presentments, demands for performance, protests and notices, including, without
limitation, notices of nonperformance, notices of protest, notices of dishonor,
notices of acceptance of this Guaranty, and notices of the existence, creation
or incurring of new or additional Obligations. Each Guarantor assumes all
responsibility for being and keeping itself informed of the Company's financial
condition and assets, and of all other circumstances bearing upon the risk of
nonpayment of the Obligations and the nature, scope and extent of the risks
which such Guarantor assumes and incurs hereunder, and agrees that neither the
Secured Parties nor the Agent shall have any duty to advise such Guarantor of
information known to any of them regarding such circumstances or risks. The
Agent hereby agrees to use reasonable efforts to give a copy to each Guarantor
of any formal written notice to the Company of the occurrence of an Event of
Default under the Credit Agreement; provided, however, that the failure of the
Agent to provide any such notice shall not in any manner or to any extent affect
the obligations of any Guarantor hereunder.
8. In addition to the Obligations, each Guarantor agrees to pay
reasonable attorneys' fees (including the allocated costs of internal counsel)
and all other costs and expenses incurred by the Secured Parties and the Agent
in enforcing this Guaranty in any action or proceeding arising out of, or
relating to, this Guaranty. This Guaranty and the liability and obligations of
each Guarantor hereunder are binding upon such Guarantor and its successors and
assigns, and this Guaranty inures to the benefit of and is enforceable by the
Secured Parties and the Agent and their successors, transferees, and assigns.
9. Each Guarantor hereby represents and warrants to the Agent and the
Secured Parties as follows:
4
(a) Such Guarantor: (1) is duly organized, validly existing and
in good standing as a corporation or limited liability company under the laws of
the State of its incorporation or formation and is qualified to do business in
each jurisdiction where its ownership of property or conduct of business
requires such qualification and where failure to qualify would have a material
adverse effect on such Guarantor or its property and/or business or on the
ability of such Guarantor to pay or perform the Obligations, (2) has the
corporate or other power and authority and the legal right to own and operate
its property and to conduct business in the manner in which it does and proposes
so to do, and (3) is in compliance with all Requirements of Law and Contractual
Obligations, the failure to comply with which could have a material adverse
effect on the business, operations, assets or financial or other condition of
such Guarantor or such Guarantor and its consolidated Subsidiaries taken as a
whole.
(b) Such Guarantor has the corporate or other power and
authority and the legal right to execute, deliver and perform this Guaranty and
has taken all necessary corporate action to authorize the execution, delivery
and performance of this Guaranty. This Guaranty has been duly executed and
delivered on behalf of such Guarantor and constitutes the legal, valid and
binding obligation of such Guarantor enforceable against such Guarantor in
accordance with its terms, subject to the effect of applicable bankruptcy and
other similar laws affecting the rights of creditors generally and the effect of
equitable principles whether applied in an action at law or a suit in equity.
(c) The execution, delivery and performance of this Guaranty
will not violate any Requirement of Law or any Contractual Obligation of such
Guarantor or create or result in the creation of any Lien on any assets of such
Guarantor.
(d) No consent, approval, authorization of, or registration,
declaration or filing with any Person is required on the part of such Guarantor
in connection with the execution and delivery of this Guaranty or the
performance of or compliance with the terms, provisions and conditions hereof.
10. No right or power of the Secured Parties or the Agent hereunder
shall be deemed to have been waived by any act or conduct on the part of such
Persons, or by any neglect to exercise such right or power, or by any delay in
so doing; and every right or power shall continue in full force and effect until
specifically waived or released by an instrument in writing executed by the
Secured Parties and the Agent.
11. Each Guarantor agrees to execute any and all further documents,
instruments and agreements as the Agent from time to time reasonably requests to
evidence such Guarantor's obligations hereunder.
12. This Guaranty shall be deemed to be made under and shall be
governed by the laws of the State of California.
13. If any of the provisions of this Guaranty shall contravene or be
held invalid under the laws of any jurisdiction, this Guaranty shall be
construed as if not containing
5
those provisions and the rights and obligations of the parties hereto shall be
construed and enforced accordingly.
14. Neither this Guaranty nor any provision hereof may be amended,
modified, waived, discharged, or terminated except by an instrument in writing
duly signed by or on behalf of the Secured Parties.
15. The rights, powers and remedies of the Secured Parties or the
Agent hereunder are cumulative and not exclusive of any other right, power, or
remedy which Lender or the Agent would otherwise have.
16. All notices, requests, demands, directions, and other
communications provided for hereunder must be in writing and must be personally
delivered, sent by overnight courier or mailed to each Guarantor at the address
set forth on the signature page of this Guaranty or at any other address as may
be designated by such Guarantor in a written notice sent to the Agent in
accordance with the Credit Agreement. Any notice, request, demand, direction,
or other communication given by mail will be deemed effective on the third
calendar day after deposited in the United States mails with first class postage
prepaid, on the next business day after deposited with a reputable overnight
courier, or when delivered if given by personal delivery.
6
Executed as of the day and year first above written.
ATG RICHLAND CORPORATION, a Washington corporation
By: /s/ Xxxxx Xxxx
---------------------------
Name: Xxxxx Xxxx
-------------------------
Title: Vice President
------------------------
ATG NUCLEAR SERVICES LLC, a Delaware limited liability
company
By: /s/ Xxxxx Xxxx
---------------------------
Name: Xxxxx Xxxx
-------------------------
Title: Manager
------------------------
ATG CATALYTICS LLC, a Delaware limited liability
company
By: /s/ Xxxxx Xxxx
---------------------------
Name: Xxxxx Xxxx
-------------------------
Title: Manager
------------------------
S
[LETTERHEAD OF XXXXXX & XXXXXX APPEARS HERE]
November 8, 1999
Sanwa Bank California
Oakland Commercial Banking
0000 Xxxxxxxx
Xxxxxxx, XX 00000
RE: Port of Xxxxxx Economic Development Corporation Solid Waste Revenue
Bonds, 1999 (ATG Inc. Project)
Ladies and Gentlemen:
This firm has acted as counsel for ATG Inc., a California corporation, and
its subsidiaries, ATG Richland Corporation, a Washington Corporation, ATG
Catalytics LLC, a Delaware limited liability company, and ATG Nuclear Services
LLC, a Delaware limited liability company (each a "Transaction Party") with
respect to issuance by the Port of Xxxxxx Economic Development Corporation ("the
"Issuer") of its Solid Waste Revenue Bonds, 1999 (ATG Inc. Project) (the
"Bonds") and the negotiation and execution of the Loan Documents, Bond Documents
and the Bond Loan Documents (collectively the "Documents") as said Documents are
defined in the Credit and Reimbursement Agreement, dated as of November 1, 1999,
by and among ATG Inc., Sanwa Bank California as Agent, KeyBank National
Association as Bond L/C Issuing Bank, First Bank of California, General Bank,
and the Lenders from time to time that are party thereto. We have examined
executed copies of the Documents.
We have also examined other documents and certificates of representatives
of the Transaction Parties as we have deemed necessary as a basis for the
opinions expressed herein.
We have assumed the genuineness of all signatures and documents submitted
to us as originals, that all copies submitted to us conform to the originals,
the legal capacity of all natural persons. As to documents executed by entities
other than the Transaction Parties, we have assumed that each such entity had
the power to enter into and perform its obligations under such documents, and
that such documents have been duly authorized, executed and delivered by, and
are binding upon and enforceable against, such entities.
This opinion is rendered pursuant to the provisions of Section 9 (a) (1)
(xii) of the Credit and Reimbursement Agreement.
Based on the above comments, we are of the following opinion with respect
to the Transaction Parties:
1. ATG Inc. is a corporation duly incorporated, validly existing and in
good standing under the laws of the State of California. ATG Richland
Corporation is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Washington. ATG Nuclear Services LLC is
a limited liability company duly formed, validly existing and in good standing
under the laws of the State of Delaware. ATG Catalytics LLC is a limited
liability company duly formed, validly existing and in good standing under the
laws of the State of Delaware.
2. Each Transaction Party is duly qualified, in good standing, and
authorized to do business in each jurisdiction where the failure to qualify
would have a material adverse affect on its business.
3. Each Transaction Party has the requisite power and authority to
execute and deliver, and to perform and observe the provisions of, each Document
to which such Transaction Party is party and related documents thereto.
4. The execution, delivery and performance of each Document to which each
Transaction Party is party and related documents thereto have been duly
authorized by all requisite corporate or other action of such Transaction Party
and constitute legal, valid and binding obligations of such Transaction Party,
enforceable against such Transaction Party in accordance with their respective
terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and other similar laws of general applicability
relating to or affecting the enforcement of creditors' rights and subject to the
qualification that general equitable principles may limit the availability of
equitable remedies, including without limitation, the remedy of specific
performance.
5. Each Document and related documents thereto have been duly executed and
delivered by each Transaction Party party thereto.
6. To the best of our knowledge, based on due inquiry, neither the
execution, delivery, or performance of any Document or the other documents
contemplated thereby nor the consummation of the transactions contemplated
thereby will (i) conflict with, or result in a violation or breach of the terms,
conditions, or provisions of, or constitute a default under any material
agreement, indenture or other instrument provided to us by a Transaction Party
under which any Transaction Party is bound or (ii) violate or conflict with any
material judgment, decree, order, statute, rule or regulation of any court or
any public, governmental or regulatory agency or body having jurisdiction over
any Transaction Party.
7. Neither the execution, delivery, or performance of any Document or the
other documents contemplated thereby nor the consummation of the transactions
contemplated thereby will conflict with, or result in a violation or breach of
the terms, conditions, or provisions of, or constitute a default under the
certificate or articles of incorporation, limited liability company agreement,
operating agreement or bylaws (as applicable) of any Transaction Party.
8. No authorization, consent, approval, permit or license of, or filing
with, any governmental or public body or authority, any lender or lessor or any
other person or
entity is required to authorize, or is required in connection with, the
execution, delivery, and performance by any Transaction Party of any Documents
or the documents contemplated thereby.
9. Except as set forth in Exhibit E of the Credit and Reimbursement
Agreement, there are no suits, claims or disputes pending or threatened against
or affecting any Transaction Party or any of its subsidiaries, if any, the
adverse determination of which individually or in the aggregate might have a
material adverse effect on the financial condition or operations of such
Transaction Party or impair its ability to perform its obligations under any
Document to which it is party. As to those actions described in Exhibit E of the
Credit and Reimbursement Agreement, which actions are actively contested by ATG
Inc., we are advised that the amount of claimed compensatory damages asserted
against ATG Inc. is within the limits of the comprehensive general liability
insurance policy of the party which has accepted ATG Inc.'s tender of defense
and from which ATG Inc. shall seek indemnification for any costs, damages and
liability which it may incur in connection with said actions. To the extent
damages exceed or are not covered by insurance or are not recoverable by ATG
Inc. from any other party, ATG Inc. has consulted with its respective counsel in
each such action and has determined that its potential exposure does not
constitute a material adverse effect on any of the Transaction Parties.
10. The financing statements attached hereto (the "Financing Statements")
with respect to each Transaction Party are in appropriate forms for filing as
financing statements with the entities and in the jurisdictions set forth on the
schedule attached hereto.
11. Filing of the Financing Statements with the entities and in the
jurisdictions set forth on the schedule attached hereto are the only filings or
recordings necessary to perfect the security interest created by the Security
Agreements in each of the Transaction Party's rights in that part of the
personal property (other than equipment temporarily located in the ordinary
course of business in jurisdictions in which no Financing Statements have been
filed) of the Transaction Parties ("Personal Property") in which a security
interest may be perfected by
the filing of a financing statement with such entities in such jurisdictions.
12. Continuation statements complying with the UCC as in effect in the
jurisdictions set forth on the schedule attached hereto must be filed with the
appropriate jurisdictions not more than six months prior to the expiration of
the five-year period dating from the date of filing of the Financing Statement,
and not more than six months prior to the expiration of each subsequent five-
year period after the original filing, in order to continue the perfection of
the securing interest in the Personal Property. Additional action may be
required to continue such perfection (i) if the relevant Transaction Party
changes its name, identity, or structure, or if there is a change in the
jurisdiction in which its place of business, (or, if it has more than one place
of business, its chief executive office) or the Personal Property is located, or
(ii) with respect to Personal Property constituting "proceeds" under Section
9306 of the relevant UCC.
Very truly yours,
/s/ Xxxxxx X. Xxxxxxx
XXXXXX & XXXXXX, P.C.
By Xxxxxx X. Xxxxxxx
EXHIBIT E -- MATERIAL LITIGATION
The consolidated case listed below arises from an incident occurring in
March, 1997, wherein a piece of ordnance exploded on the premises of a scrap
metal dealer in Fontana, CA. An employee of the scrap metal dealer died and four
others claim personal injuries as a result of the explosion. In 1992, ATG Inc.
had entered into a contract with the U.S. Army to "surface clear" expended
ordnance from a firing range at Ft. Xxxxx, CA. It subcontracted with another
party to perform the work. Although the scrap dealer had purchased expended
ordnance and scrap metal from other military facilities, the scrap dealer
indicated the scrap metal was acquired from Ft. Xxxxx. The allegations assert
that the subcontractor failed to properly certify the ordnance cleared from the
Ft. Xxxxx firing range as free of hazardous and explosive material prior to the
sale of such ordnance to the scrap dealer. The consolidated claims include
personal injury and wrongful death actions, business-related damages by the
scrap dealer, the cost of cleaning up the accident scene, and reimbursement of
workers compensation benefits paid on behalf of the workers.
ATG Inc. vigorously disputes the allegations and has successfully tendered
the defense of the matter to the subcontractor. It will be seeking full
indemnification from the subcontractor for any and all costs, damages and
liability it may incur in these actions. The subcontractor has advised the
company that the claims for compensatory damages are within the policy limits of
its insurance coverage applicable to these claims. While some of the claims also
seek exemplary damages against ATG Inc., the Company believes there will be no
adverse material affect to the Company or its subsidiaries as a result of the
litigation which is still in discovery.
Golden Eagle Insurance Company et al v. Allied Technology Group et al, San
---------------------------------------------------------------------
Bernadino Superior Court Consolidated Case No. SCV 46036.
EXHIBIT F - LIST OF SUBSIDIARIES
STATE OF ATG
-------- ---
SUBSIDIARY INCORPORATION OWNERSHIP %
---------- ------------- -----------
ATG Richland Corporation Washington 100%
ATG Catalytics LLC Delaware 90%
ATG Nuclear Services LLC Delaware 100%
TABLE OF CONTENTS American Nuclear Transporters Ins
----------------- 1 American Nuclear Insurers
Policy # NF-0332
1-1-99 to 0-0-00
Xxxxx x0xx Xxxxxxxx, XX
------------------------------------------------
Credit General Insurance Company
Policy # AAB199-919-03
2 3-15-99 to 3-15-00
Limit $5mm Richland,
Yakima, OakRidge
Cincinnati, Hawaii, Fremont
------------------------------------------------
Northfield Insurance Company
3 Policy #KE990017
4-15-99 to 3-15-2000
Limit $5mm Excess
Liability
------------------------------------------------
American International Specialty Ins
4 Policy #PLS 000-00-00
12-1-98 xx 00-00-00
Limit $2mm to 6mm
Bear Creek TN, Longwood SC
------------------------------------------------
Westchester Fire Insurance Company
Policy #FPL387972
5 7-15-99 to 7-15-00
Limit $2,371,000 Fremont, Richland
Hawaii, Oakridge TN
------------------------------------------------
Westchester Fire Insurance Company
6 Policy #FPL3877973
7-15-99 to 7-15-00
Limit $2.5mm Oakridge
TN, Kingston TN
Columbia SC
------------------------------------------------
New Hampshire Insurance Company
7 Policy #WC 000-00-00
12-1-98 to 12-1-99
Worker Comp Cat Nuc
------------------------------------------------
J & H Xxxxx & XxXxxxxx
8 Nuclear and Master Worker
1/1/99-12/31/99
------------------------------------------------
Auto Insurance
9 Reliance
5-1-99 to 5-1-00
------------------------------------------------
10 Worker Comp Policies All
other States
------------------------------------------------
EXHIBIT G
INSURANCE AND MITIGATING FACTORS TO ENVIRONMENTAL RISK
1. The Company carries Nuclear Insurance for up to $5MM, $2MM, $50MM for any
accident occurring on site in its three primary locations (Washington,
California, and Tennessee). Coverage while material is in transport if
$15MM. The deductible is $10,000 per incident in either case. The risk of
spillage is minimal because waste is primarily solid or sludge material
which is contained in double walled, sealed metal containers that meet
federal standards.
2. The Company carries General Liability Policy for any effects arising from
pollution with a limitation of $15MM per occurrence and a deductible of
$10,000 per loss. The Company carries an excess liability policy for $5MM
over and above its general liability. Buildings which house material
handling equipment are constructed to meet federal safety standards.
Construction requirements vary depending on material being handled. (i.e.
LLRW or LLMW)
3. The Company carries $4.7MM of general property insurance to cover its own
equipment.
4. The Company also seeks indemnification under all of its contracts from the
generator of the waste as well as from licensed haulers.
5. Federal law stipulates that environmental nuclear waste liability, relating
to storing waste is the generators responsibility and not the handler.
Thus, ATG bears no additional liability after disposal.
6. The Company's facilities are subject to frequent and routine inspections by
numerous regulatory agencies. The Company has never received a fine for
safety or license violations. The Company has on-going self-administered
employee health, safety, training, and environmental monitoring programs in
addition to outside inspections.
7. Licensing and permits to operate these types of disposal sites and
processing are comprehensive taking from 2-5 years to obtain. There are
very few participants in the industry given the difficulty of obtaining,
permits, licenses, and insurance.
8. At each operating facility, Richland, WA, Oak Ridge, TN, and Columbia, SC,
the company is required to provide financial assurance to the state that,
in the event the company in unable to meet its obligations, the state will
have recourse to clean up any environmental issues at the site. These
financial assurances can take the form of letters of credits, bonds, or
insurance policies. The company is required to maintain the financial
assurance as a condition of its ongoing permit, i.e. no assurance, no
permit, no business. The company words with the state regulatory agency
that holds jurisdiction to determine the level of financial assurance that
is required. Ultimately, the state regulatory agency must be satisfied
that sufficient coverage is provided. The company currently has the
following financial assurance coverages in place:
Oak Ridge, TN $4.8 million Insurance policy (AIG)
Richland, WA 3.0 million Insurance policy (ECS)
Columbia, SC .3 million Insurance policy (ECS)
Richland mixed waste 1.8 million Insurance policy (ECS)
The Richland mixed waste policy must be delivered to the state 60 days ahead of
receipt of waste. It is expected to be finalized shortly.
See attached listing of policies and claims experience.
Xxxxxxx X. Xxxxxxx
Insurance Broker
--------------------------------------------------------------------------------
Specializing in the Nuclear Services Industry
FAX
Date: 7-2-99
To: Xxxx Xxxxxx/Xxxxxx Xxxx
Company: ATG, Inc.
FAX# 0-000-000-0000
Subject: Sanwa Bank Requirements
Dear Xxxx & Xxxxxx:
As you requested, here's a summary of the insurance for Sanwa Bank. You'll find
that ATG's insurance has had significant improvements over the last few months.
American Nuclear Insurers:
Policy Number NS-0508
Supplier's and Transporters Form Nuclear Liability
Effective 1-1-99 to 1-1-2000
Limit of Liability: $15,000,000
Policy Number NF-0325
Facility Form Nuclear Liability - Fremont
Effective 1-1-99 to 1-1-2000
Limit of Liability $ 2,000,000
Policy Number NF-0332
Facility Form Nuclear Liability - Richland
Effective 1-1-99 to 1-1-2000
Limit of Liability $ 5,000,000
Policy Number NF-0338
Facility Form Nuclear Liability - Oak Ridge
Effective 1-1-99 to 1-1-2000
Coverage Limit: $50,000,000
(Page 1 of 2)
Xxxxxxx X. Xxxxxxx
Insurance Broker (Page 2 of 2)
--------------------------------------------------------------------------------
Specializing in the Nuclear Services Industry
Policy Number 99257
All Risk Property Policy - Fremont
Includes Earthquake, Flood, & Radioactive Contamination
Effective 1-1-99 to 1-1-2000
Limit: $ 3,500,000
Policy Number NF-0336
All Risk Property Policy - Oak Ridge
Includes Earthquake, Flood, & Radioactive Contamination
Effective 1-1-99 to 1-1-2000
Limit: $30,000,000
Credit General Insurance Company:
Policy Number AAB199-919-03
Effective 3/15/99 to 3-15-2000
Limit of Liability:
$5,000,000 Per occurrence
$5,000,000 In the Aggregate
$ 10,000 Per Occurrence Deductible
Coverage includes comprehensive general liability, contractual liability,
pollution liability including from radioactive materials, underground,
explosion, & collapse, personal injury, asbestos and lead abatement. There is
also a sublimit of $ 1,000,000 for professional liability for consultants.
Northfield Insurance Company:
Polity Number KX990017
Effective 3-15-99 to 3-15-2000
Limit of Liability:
$ 5,000,000 Per Occurrence Following Form Excess Liability Over The Credit
General Policy
$ 5,000,000 In the Aggregate Following Form Excess Liability Over The Credit
General Policy
Claims History:
There have been no claims under any American Nuclear Insurers Policy.
Included with this transmission is the claims history for the Credit General
policies.
Very truly yours,
/s/ Dick Vinegar
Xxxx Xxxxxxx
LOSS INFORMATION DATED 3/10/99
INSURED: ALLIED TECHNOLOGY GROUP, INC.
POLICY: CREDIT GENERAL INSURANCE COMPANY
AAB100-919-00
TERM: 3/15/97 TO 3/15/98
CLAIM # DOL CLAIMANT LOSS DESCRIPTION CURRENT STATUS
------------------------------------------------------------------------------------------------
30020 3/18/97 VARIOUS BODILY INJURY OPEN AT $104,864.57
Specializing in The Asbestos Abatement And Hazardous Waste Industry
LOSS INFORMATION DATED 3/10/99
INSURED: ALLIED TECHNOLOGY GROUP, INC.
POLICY: CREDIT GENERAL INSURANCE COMPANY
AAB198-919-02
TERM: 3/15/98 TO 3/15/99
CLAIM # DOL CLAIMANT LOSS DESCRIPTION CURRENT STATUS
------------------------------------------------------------------------------------------------
30775 5/15/98 XXXXXX PROPERTY DAMAGE CLOSED 2/5/99
PAID $10,385.83
31237 2/X/XX XXXXXXXXX PROPERTY DAMAGE OPEN AT $3,410.88
Specializing in The Asbestos Abatement And Hazardous Waste Industry
EXHIBIT II
and
EXHIBIT I
ATG INC.
PERMITTED INDEBTEDNESS
& PERMITTED LIENS
30-Jun-99
ORIGINAL CURRENT MONTHLY INTEREST BALLOON
TYPE DATE LENDER/LESSOR AMOUNT AMOUNT PAYMENT (If added) MATURITY PAYMENT COLLATERAL
---- ---- ------------- ------ ------ ------- ---------- -------- ------- ----------
Existing Loans/Leases
---------------------
Vehicles 8/7/94 Ford Motor 18549 426 375 8/1/99 94 Mercury Sable
10/15/95 US Bank 11051 1075 274 10/15/99 94 Ford Taurus
10/25/96 Union Bank 35050 12274 882 10/20/00 94 Jaguar
12/17/96 Sanwa leasing 22735 9372 561 12/20/00 95 Isuzu
10/1/98 Ford Motor 10552 8656 220 11/15/02 98 Ford Escort
6/23/99 Ford Motor 15972 15972 450 6/23/02 99 Ford Taurus
6/26/95 Union Bank 14952 3494 311 7/1/00 95 Aerostar
Subtotal 51269
Mortgages 5/1/92 Midland Loan Svcs. 1574327 1388407 13736 12/1/01 1336990 Fremont Building
8/6/93 US Bank 750000 159671 12466 P+2.7 8/6/00 Richland property
9/18/97 Sanwa Bank 400000 259993 9500 9/30/02 Fremont Building
Subtotal 1808071
Equipment 4/1/95 GW Leasing 451321 81529 11528 4/1/00 45132 Building 13, Richland(RL)
5/2/97 US Bancorp 581719 307966 14656 6/2/01 Misc. equip.- RL
5/20/97 Safeco 3000000 2267346 48291 5/30/04 SAFGLAS
4/30/97 US Bancorp 30520 18187 648 4/1/02 91 International - RL
10/28/97 Allco Leasing 36738 18615 1355 10/20/00 Misc. equip.- RL
10/3/97 T&W Leasing 447849 310426 10626 8/20/02 Misc. equip.- RL
10/28/97 T&W Leasing 500000 346574 11864 10/20/02 Building #8 - RL
3/1/98 T&W Leasing 470000 142770 11797 3/1/03 Gasification - RL
3/20/98 US Bank 642418 510744 13103 3/20/03 BPU unit - RL
3/11/98 IFCO 29037 20676 523 1/11/03 Hyster forklift
2/11/99 FL Financial 2278488 2156276 47114 3/1/04 SAFGLAS equipment
additions
5/20/99 US Bancorp 525000 486587 12804 5/20/03 MMT assets - Tenn.
5/4/99 Safeco 2505000 2378606 78700 5/1/02 Nuclear Svcs. Equip.
4/3/99 IFCO 25497 24463 523 4/3/04 Forklift
4/30/99 US Bancorp 870000 859769 19192 12/30/04 Parts inventory
5/26/99 CIT Group 99315 98048 2128 6/10/04 Crane - RL
5/26/99 CIT Group 98841 97580 2128 6/10/04 Crane - Tenn.
Subtotal 10126162
Pending Loans/Leases TBD 375000 375000 TBD
--------------------
Mortgages General Bank 0000000 1200000 TBD
GE Capital 2400000 2400000 45048
Equipment
Total 15960502
BOND PLEDGE AGREEMENT
This Bond Pledge Agreement ("Agreement" or "Bond Pledge Agreement")
dated as of November 1, 1999 by and among ATG INC. (the "Company"), SANWA BANK
CALIFORNIA, as Agent (the "Agent") for Lenders (the "Lenders"), including
without limitation KEYBANK NATIONAL ASSOCIATION, under that certain Credit and
Reimbursement Agreement dated as of November 1, 1999 with the Company (as
amended, modified or waived, the "Reimbursement Agreement"), and BNY Western
Trust Company (as "Trustee" under the Indenture described below and herein in
its capacity as "Custodian" under said Indenture) is made and entered into with
reference to the following:
A. Pursuant to that certain Trust Indenture ("Indenture") dated as of
November 1, 1999 by and between Port of Xxxxxx Economic Development Corporation
(the "Issuer") and the Trustee, the Issuer is issuing its $26,500,000 Solid
Waste Revenue Bonds, 1999 (ATG Inc. Project) (the "Bonds").
B. Pursuant to the Indenture, Bonds tendered for purchase at the option
of a bondholder under the Indenture and purchased with funds drawn on the Letter
of Credit (as defined therein) issued by KEYBANK NATIONAL ASSOCIATION (the
"Bank") issued in accordance with the Reimbursement Agreement, which Bonds are
not remarketed by the Remarketing Agent ("Remarketing Agent") as more
particularly described in the Indenture, become Bank Bonds (as defined in the
Indenture).
C. Pursuant to the Reimbursement Agreement and the other Loan Documents
(as defined therein), the Company is obligated (among other matters) to
reimburse the Bank for all funds drawn under the Letter of Credit to purchase
Bonds tendered pursuant to a Purchase Demand (as defined in the Indenture) under
the Indenture which funds are not reimbursed to the Bank immediately following
such drawing with remarketing proceeds received by the Remarketing Agent under
the Indenture.
NOW, THEREFORE, in consideration of the foregoing and for other valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:
1. Defined Terms. Unless otherwise defined herein, the terms used in
-------------
this Agreement shall have the meaning set forth in the Indenture.
2. Pledge. As collateral security for the prompt and complete payment
------
when due of all of the obligations arising under the Reimbursement Agreement and
to further implement and secure the Bank, the Company hereby pledges and grants
to the Agent a security interest in and to all Bank Bonds and all right, title
and interest of the Company in and to the following:
(a) Any amounts remaining in any fund, established under and pursuant
to the Indenture ("Remaining Funds"), after payment in full of (i) the
------
principal of, premium, if any, and interest on the Bonds (or provision for
payment thereof as provided in the
Indenture) and (ii) the fees, charges and expenses of the Trustee and the
Remarketing Agent as provided in the Indenture);
(b) All proceeds of the Remaining Funds;
(c) Any and all Bank Bonds that are not purchased in lieu of
redemption.
3. Release of Pledge. The Agent agrees and acknowledges that the lien
-----------------
of this Agreement and security interest created hereunder in any Bank Bonds from
time to time encumbered by the lien hereof shall be released effective
immediately and automatically, and without any joinder, consent or action by or
notice to the Agent, the Bank or the Company of any kind upon receipt by the
Trustee (or Remarketing Agent) of remarketing proceeds with respect to such Bank
Bonds in an amount sufficient to and which proceeds the Trustee (or Remarketing
Agent) is required to remit to the Bank to reimburse the Bank in full under the
Indenture for any drawing on the Letter of Credit to pay the purchase price for
such Bank Bonds.
4. No Transfer by Trustee or Transfer Agent. The Trustee shall not
----------------------------------------
pledge, hypothecate, transfer or release possession of any Pledged Bond (nor
direct any re-registration of any Pledged Bond on the records of any book entry
depository system authorized under the Indenture) other than in accordance with
the Indenture and this Agreement.
5. Remedies. If any Event of Default shall occur under the Reimbursement
--------
Agreement, the Agent shall have the right to foreclose the lien of the security
interest created hereby in any manner consistent with the Uniform Commercial
Code of the State of California ("UCC") by public or private sale and following
the exercise of any such remedy have the right to demand any Bank Bonds so
acquired to be registered (free and clear of any and all claim or interest of
the Company) in the name of the Agent, a nominee of the Agent or a purchaser at
any such UCC sale.
6. Application of Proceeds. The Agent shall, in the event of exercise
-----------------------
of its rights and remedies hereunder, apply any proceeds received from the sale
of Bank Bonds first to the payment of reasonable costs and expenses incurred by
the Agent in connection with the exercise of such remedies (including reasonable
attorneys' fees and expenses); second to the reimbursement of the Bank and the
other Lenders in full for any and all amounts due to the Bank and the other
Lenders under the Reimbursement Agreement; and then to the extent of funds
remaining to the Trustee for deposit, application and/or disposition pursuant to
the Indenture.
7. Power of Attorney. Subject in all events to the provisions of the
-----------------
Bonds and the Indenture, the Company hereby irrevocably assigns to and appoints
the Agent as its true and lawful attorney-in-fact, coupled with an interest, (i)
to demand and receive proceeds from remarketing of any Bonds to the extent the
Bank or any of the Lenders has not been paid in full for all amounts as may from
time to time be due under the Reimbursement Agreement, (ii) to sign and endorse
without joinder or consent of Company any instrument or document evidencing the
Bank's right to receive such proceeds, and (iii) to do all things and acts
necessary to carry out the intent of this Agreement; provided, however, that the
Agent may not exercise any rights under such power of attorney except after the
occurrence of an Event of Default under the Reimbursement Agreement.
8. Further Assurances. The Company agrees that at any time and from
------------------
time to time upon the written request of the Agent, the Company will execute and
deliver such further documents and do such further acts and things as the Agent
may reasonably request in order to effect the purposes of this Agreement.
9. Severability. Any provision of this Agreement which is prohibited or
------------
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.
10. No Waivers; Cumulative Remedies. The Agent shall not by any act,
-------------------------------
delay, omission, course of dealing or otherwise be deemed to have waived any of
its rights or remedies hereunder, and no waiver or claim of waiver shall be
valid unless in writing, signed by the Agent and then only to the extent therein
set forth. A waiver by the Agent of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy which the Bank
would otherwise have on any future occasion. No failure to exercise, nor any
delay in exercising on the part of the Agent, any right, power or privilege
hereunder, shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies herein provided are cumulative and may be exercised
singly or concurrently, and are not exclusive of any other rights or remedies
provided at law or in equity.
11. Governing Law. This Agreement shall be governed by, and be
-------------
construed and interpreted in accordance with, the laws of the State of
California.
12. Successors and Assigns. This Agreement shall be binding upon the
----------------------
Company and the Agent and shall inure to the benefit of and be enforceable by
the parties hereto and their respective successors and assigns; provided that
this Agreement may not be assigned by the Company without the prior written
consent of the Bank.
13. Attorneys' Fees. The prevailing party in any dispute resulting in
---------------
arbitration, litigation or other proceedings by or among the parties shall be
entitled to its costs and expenses for such proceedings including reasonable
attorneys' fees.
14. Counterparts; Facsimile Transmission. This Agreement may be executed
------------------------------------
in counterpart, including facsimile copies, and together shall be effective as
an original of this Agreement. This Agreement, including the signature page
hereof, shall be effective as an original.
15. Control. The Company agrees and the Trustee acknowledges that the
-------
Agent shall at all times have control (as such term is defined in Section 8106
of the California Uniform Commercial Code) of the Bank Bonds and that,
accordingly, the Bonds at all times shall be (i) if certificated, either
endorsed to or registered in the name of the Agent or its nominee or (ii) if
held by a securities intermediary, either be subject to an agreement of such
securities intermediary to
comply with entitlement orders of the Agent without further consent of the
Company or be registered in the name of the Agent or its nominee as the
entitlement holder.
IN WITNESS WHEREOF, the Company, the Trustee, and the Bank have caused this
Agreement to be duly executed and delivered by a duly authorized officer.
SANWA BANK CALIFORNIA, as Agent ATG INC., as the Company
By: /s/ Xxxxxxxx Xxxxxx By: /s/ Xxxxx Xxxx
-------------------------------- -------------------------------
Its: Vice President/Manager Its: Executive Vice President
------------------------------- ------------------------------
BNY WESTERN TRUST COMPANY, as the
Trustee
By: /s/ Xxxxx Xxxxxx
-------------------------------
Its: Assistant Vice President
------------------------------
