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BURLINGTON RESOURCES INC.
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$400,000,000
SHORT-TERM REVOLVING CREDIT AGREEMENT
Dated as of February 25, 1998
As ▇▇▇▇▇▇▇ and Restated as of February 23, 1999
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CHASE BANK OF TEXAS, N.A.,
as Administrative Agent
THE CHASE MANHATTAN BANK,
as Auction Administrative Agent
CITIBANK, N.A.,
as Syndication Agent
BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION,
as Documentation Agent
BANKBOSTON, N.A.,
as Documentation Agent
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TABLE OF CONTENTS
PAGE
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ARTICLE 1 DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms.............................................................1
SECTION 1.02. Computation of Time Periods......................................................18
SECTION 1.03. Accounting and Other Terms.......................................................18
SECTION 1.04. References.......................................................................18
ARTICLE 2 AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. (a) Revolving A Advances.........................................................19
(b) Term A Advances..............................................................19
SECTION 2.02. Making the A Advances............................................................20
SECTION 2.03. Fees.............................................................................22
SECTION 2.04. Reduction of the Commitments.....................................................23
SECTION 2.05. Repayment of A Advances..........................................................23
SECTION 2.06. Interest on A Advances...........................................................23
SECTION 2.07. Additional Interest on Eurodollar
Rate Advances.............................................................................25
SECTION 2.08. Interest Rate Determination......................................................25
SECTION 2.09. Voluntary Conversion of A Advances...............................................27
SECTION 2.10. Prepayments......................................................................28
SECTION 2.11. Increased Costs..................................................................28
SECTION 2.12. Increased Capital................................................................30
SECTION 2.13. Illegality.......................................................................31
SECTION 2.14. Payments and Computations........................................................31
SECTION 2.15. Taxes............................................................................33
SECTION 2.16. Sharing of Payments, Etc.........................................................37
SECTION 2.17. Evidence of Debt.................................................................37
SECTION 2.18. Use of Proceeds..................................................................38
SECTION 2.19. The B Advances...................................................................38
SECTION 2.20. Increase of Commitments..........................................................42
SECTION 2.21. Extension of Stated Termination Date.............................................45
SECTION 2.22. Replacement of Lenders...........................................................47
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ARTICLE 3 CONDITIONS OF EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to
Effectiveness of the Amendment and
Restatement of this Agreement.............................................................48
SECTION 3.02. Conditions Precedent to Each A
Borrowing.................................................................................49
SECTION 3.03. Conditions Precedent to Each B
Borrowing.................................................................................50
ARTICLE 4 REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of
the Borrower..............................................................................51
ARTICLE 5 COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants............................................................54
SECTION 5.02. Negative Covenants...............................................................56
SECTION 5.03. Reporting Requirements...........................................................61
ARTICLE 6 EVENTS OF DEFAULT
SECTION 6.01. Events of Default................................................................64
ARTICLE 7 THE ADMINISTRATIVE AGENT
SECTION 7.01. Authorization and Action.........................................................68
SECTION 7.02. Administrative Agent's Reliance,
Etc.......................................................................................69
SECTION 7.03. Chase and Affiliates.............................................................69
SECTION 7.04. Lender Credit Decision...........................................................70
SECTION 7.05. Indemnification..................................................................70
SECTION 7.06. Successor Administrative Agent...................................................71
SECTION 7.07 Auction Administrative Agent.......................................................71
ARTICLE 8 MISCELLANEOUS
SECTION 8.01. Amendments, Etc..................................................................72
SECTION 8.02. Notices, Etc.....................................................................72
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SECTION 8.03. No Waiver; Remedies..............................................................73
SECTION 8.04. Costs and Expenses; Indemnity....................................................74
SECTION 8.05. Right of Set-off.................................................................75
SECTION 8.06. Binding Effect...................................................................75
SECTION 8.07. Assignments and Participations...................................................76
SECTION 8.08. Confidentiality..................................................................81
SECTION 8.09. Consent to Jurisdiction..........................................................82
SECTION 8.10. Governing Law....................................................................83
SECTION 8.11. Execution in Counterparts........................................................83
SECTION 8.12. WAIVER OF JURY TRIAL.............................................................83
Schedule I -- Material Subsidiaries
Schedule II -- Pricing Grid
Exhibit A Form of Note
Exhibit B Form of Notice of A Borrowing
Exhibit C Form of Notice of B Borrowing
Exhibit D Form of Assignment and Acceptance
Exhibit E Form of New Lender Agreement
Exhibit F Form of Commitment Increase Agreement
Exhibit G Form of Extension Request
Exhibit H Form of Opinion of Senior Vice President, Law
for Borrower
Exhibit I Form of Opinion of ▇▇▇▇▇, Day, ▇▇▇▇▇▇ &
▇▇▇▇▇, New York Counsel for Borrower
Exhibit J Form of Designation Agreement
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SHORT-TERM REVOLVING CREDIT AGREEMENT
Dated as of February 25, 1998
As Amended and Restated as of February 23, 1999
BURLINGTON RESOURCES INC., a Delaware corporation (the "Borrower"), the
financial institutions (the "Initial Lenders") listed on the signature pages
hereof, Chase Bank of Texas, N.A., as administrative agent for the Lenders
hereunder (in such capacity, the "Administrative Agent"), The Chase Manhattan
Bank, as auction administrative agent for the Lenders (in such capacity, the
"Auction Administrative Agent"), Citibank, N.A., as syndication agent for the
Lenders (in such capacity, the "Syndication Agent"), and Bank of America
National Trust and Savings Association and BankBoston, N.A., as documentation
agents for the Lenders (in such capacity, individually, a "Documentation Agent"
and, collectively, the "Documentation Agents"), agree as follows:
ARTICLE 1
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.1. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
"A ADVANCE" means an advance by a Lender to the Borrower as part of an
A Borrowing, and refers to a Base Rate Advance or a Eurodollar Rate Advance
(each of which shall be a "TYPE" of A Advance).
"A BORROWING" means a borrowing consisting of A Advances of the same
Type made on the same day by the Lenders pursuant to Section 2.01 and, in the
case of Eurodollar Rate Advances, having Interest Periods of
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the same duration, it being understood that there may be more than one A
Borrowing on a particular day.
"ADMINISTRATIVE QUESTIONNAIRE" means, with respect to each Lender, an
administrative questionnaire in the form prepared by the Administrative Agent
and submitted to the Administrative Agent (with a copy to the Borrower) duly
completed by such ▇▇▇▇▇▇.
"ADVANCE" means an A Advance or a B Advance.
"AFFILIATE" means, as to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such
Person or is a director or officer of such Person. The term "CONTROLS"
(including the terms "CONTROLLED BY" or "UNDER COMMON CONTROL WITH") means, with
respect to any Person, the possession, direct or indirect, of the power to vote
10% or more (or in the case of an "AFFILIATE" of any Lender, 5% or more) of the
securities having ordinary voting power for the election of directors of such
Person or to direct or cause the direction of the management and policies of
such Person, whether through ownership of voting securities or by contract or
otherwise. Neither a director nor an officer of the Borrower, in such capacity,
shall be deemed, for purposes of this Agreement, an Affiliate.
"AGREEMENT" means this Short-Term Revolving Credit Agreement, together
with all exhibits and schedules hereto, as may be amended or otherwise modified
from time to time pursuant to the terms hereof.
"APPLICABLE LENDING OFFICE" means, with respect to each Lender, (i) in
the case of an A Advance, such Lender's Domestic Lending Office in respect of
Base Rate Advances and such ▇▇▇▇▇▇'s Eurodollar Lending Office in respect of
Eurodollar Rate Advances and (ii) in the case of a B Advance, the office of such
Lender notified by such Lender to the Administrative Agent as its Applicable
Lending Office with respect to such B Advance.
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"ARRANGER" means Chase Securities Inc.
"ASSIGNMENT AND ACCEPTANCE" means an assignment and acceptance entered
into by a Lender (other than a Designated Bidder) and an Eligible Assignee, and
accepted by the Administrative Agent, in substantially the form of Exhibit D
hereto.
"B ADVANCE" means an advance by a Lender to the Borrower as part of a B
Borrowing resulting from the auction bidding procedure described in Section
2.19.
"B BORROWING" means a borrowing consisting of simultaneous B Advances
to the Borrower from each of the Lenders whose offer to make one or more B
Advances as part of such borrowing has been accepted by the Borrower under the
auction bidding procedure described in Section 2.19, it being understood that
there may be more than one B Borrowing on a particular day.
"B REDUCTION" has the meaning specified in Section 2.01(a).
"BASE RATE" means, for each day in any period, a fluctuating interest
rate per annum as shall be in effect from time to time which rate per annum
shall at all times for such day be equal to the higher of:
(i) The rate of interest announced publicly by the Administrative
Agent in the United States with respect to loans made in the United States, from
time to time, as the Administrative Agent's base or prime rate as in effect for
such day; and
(ii) 0.50% per annum above the Effective Federal Funds Rate for such
day.
"BASE RATE ADVANCE" means an A Advance which bears interest as provided
in Section 2.06(a)(i).
"BORROWING" means an A Borrowing or a B Borrowing.
"BUSINESS DAY" means a day of the year on which banks are not required
or authorized to close in New York, New York and, if the applicable Business Day
relates to any Eurodollar Rate Advances, on which dealings are carried on in the
London interbank market.
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"BUSINESS ENTITY" means a partnership, corporation (including a
business trust), limited liability company, joint stock company, trust,
unincorporated association, joint venture or other entity.
"CAPITALIZATION" means the sum (without duplication) of (i)
consolidated Debt of the Borrower and its consolidated Subsidiaries, plus (ii)
the aggregate amount of Guaranties by the Borrower or its consolidated
Subsidiaries, plus (iii) the sum of the preferred stock and common stockholders'
equity of the Borrower, plus (iv) the cumulative amount by which Consolidated
Tangible Net Worth shall have been reduced by reason of non-cash write-downs of
long-term assets subsequent to December 31, 1997 (but excluding any such amount
with respect to assets of Project Finance Subsidiaries), minus (v) to the extent
otherwise included in determining the amounts computed under clause (iii) above,
the aggregate investment (net of any Project Financing) of the Borrower and its
consolidated Subsidiaries in Project Finance Subsidiaries.
"CHASE" means Chase Bank of Texas, N.A., and its successors.
"CLAM" means CLAM Petroleum B.V., a Netherlands company, and ▇▇▇▇'s
successors.
"CLAM CREDIT AGREEMENT" means the Amended and Restated Credit Agreement
dated as of July 25, 1985, among MaraLou Netherlands Partnership, CLAM, the
banks parties thereto and ▇▇▇▇▇▇, as agent for such banks, as amended and
restated as of August 15, 1997, or any successor credit agreement entered into
for the purpose of refinancing such Amended and Restated Credit Agreement, in
each case, as amended, restated, extended or otherwise modified from time to
time.
"COMMITMENT" has the meaning specified in Section 2.01(a).
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"COMMITMENT EXPIRATION DATE" has the meaning specified in Section
2.21(a).
"COMMITMENT INCREASE NOTICE" has the meaning specified in Section
2.20(a).
"COMMITMENT INCREASE AGREEMENT" has the meaning specified in Section
2.20(c).
"COMMITMENT PERCENTAGE" means as to any Lender at any time, the
percentage that such ▇▇▇▇▇▇'s Commitment then constitutes of the aggregate
Commitments (or, at any time after the Commitments shall have expired or
terminated, the percentage that the aggregate principal amount of such ▇▇▇▇▇▇'s
Advances then outstanding constitutes of the aggregate principal amount of the
Advances then outstanding).
"CONSOLIDATED TANGIBLE NET WORTH" means, on a consolidated basis, the
excess of (i) the sum of (x) the preferred stock and common stockholders' equity
of the Borrower and (y) the cumulative amount by which Consolidated Tangible Net
Worth shall have been reduced by reason of non-cash write-downs of long-term
assets subsequent to December 31, 1997, over (ii) the intangible assets of the
Borrower and its consolidated Subsidiaries.
"CONTINGENT GUARANTY" has the meaning specified in the definition of
the term "Guaranty" contained in this Section 1.01.
"CONVERT", "CONVERSION" and "CONVERTED" each refers to a conversion of
A Advances of one Type into A Advances of another Type pursuant to Section 2.08,
2.09 or 2.13.
"DEBT" of any Person means, without duplication (i) indebtedness of
such Person for borrowed money, (ii) obligations of such Person (other than any
portion of any trade payable obligation of such Person which shall not have
remained unpaid for 91 days or more from the later of (A) the original due date
of such portion and (B) the customary payment date in the industry and relevant
market for such portion) to pay the deferred
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purchase price of property or services, (iii) obligations of such Person as
lessee under leases which shall have been or should be, in accordance with
generally accepted accounting principles, recorded as capital leases, and (iv)
Overdue Reimbursement Obligations; provided, however, that where any such
indebtedness or obligation of such Person is made jointly, or jointly and
severally, with any third party or parties, which are not the Borrower or any of
its consolidated Subsidiaries, the amount thereof for the purposes of this
definition only shall be the pro rata portion thereof payable by such Person, so
long as such third party or parties have not defaulted on its or their joint and
several portions thereof, and provided, further, that the following shall not at
any time constitute Debt: (1) obligations of such Person to reimburse a bank or
other Person in respect of amounts paid under a letter of credit or similar
instrument that are not Overdue Reimbursement Obligations, (2) Project
Financing, (3) the ▇▇▇▇▇▇ Gold Loans unless, at such time, for any reason
whatsoever, (A) no royalty income shall have accrued under the Royalty Agreement
dated as of December 5, 1984 between Copper Range Company, a Michigan
corporation, and LL&E during the three consecutive fiscal quarters of LL&E most
recently ended prior to such time or (B) any payment required to have been made
to LL&E under such agreement prior to such time shall not have been paid on, or
within 30 days after, the date such payment is due and (4) amounts borrowed by
the Borrower and its Subsidiaries under life insurance policies issued to one or
more of the foregoing and covering employees or former employees of one or more
of the foregoing not in excess of the cash surrender value of such policies.
"DESIGNATED BIDDER" means (i) an Affiliate of a Lender or (ii) a
special purpose corporation that is engaged in making, purchasing or otherwise
investing in commercial loans in the ordinary course of its business and that
issues (or the parent of which issues) commercial paper rated at least "Prime-1"
by ▇▇▇▇▇'▇ or "A-1" by S&P or a comparable rating from the successor of either
of them, that, in the case of either clause (i) or (ii) above, (1) is organized
under the laws of
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the United States or any state thereof, (2) shall have become a party hereto
pursuant to subsections (e), (f) and (g) of Section 8.07, and (3) is not
otherwise a Lender. Notwithstanding the foregoing, each Designated Bidder shall
be subject to the written consent of the Borrower and the Administrative Agent,
such consent not to be unreasonably withheld.
"DESIGNATION AGREEMENT" means a designation agreement entered into by
the Borrower, a Lender (other than a Designated Bidder) and a Designated Bidder,
and accepted by the Administrative Agent, in substantially the form of Exhibit K
hereto.
"DOMESTIC LENDING OFFICE" means, with respect to any Lender, the office
of such Lender specified as its "Domestic Lending Office" in its Administrative
Questionnaire, or in the Assignment and Acceptance or New Lender Agreement
pursuant to which it became a Lender, or such other office of such Lender as
such Lender may from time to time specify to the Borrower and the Administrative
Agent.
"EFFECTIVE DATE" means the date on which the conditions precedent set
forth in Section 3.01 have been satisfied (or compliance therewith shall have
been waived by the Lenders), which date the Administrative Agent will promptly
confirm to the Borrower and the Lenders in writing, and which date shall be no
earlier than February 23, 1999.
"EFFECTIVE FEDERAL FUNDS RATE" means, for any day, the weighted average
of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York or, if such rate is not so published for any
day which is a Business Day, the average of the quotations for such day on such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.
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"ELIGIBLE ASSIGNEE" means, with respect to any particular assignment
under Section 8.07, any bank or other financial institution approved in writing
by the Borrower expressly with respect to such assignment and, except as to such
an assignment by Chase so long as Chase is the Administrative Agent hereunder,
the Administrative Agent as an Eligible Assignee for purposes of this Agreement,
provided that neither the Administrative Agent's nor the Borrower's approval
shall be unreasonably withheld, and provided further that no such approval shall
be necessary if (i) the assignee is an Affiliate of the assigning Lender and
such assignment constitutes 100% of the assigning ▇▇▇▇▇▇'s Commitment, the A
Advances owing to it and the Note or Notes held by it, (ii) the assignee was a
Lender immediately prior to such assignment or (iii) if an Event of Default
shall then be continuing.
"EQUITY INTERESTS" means any capital stock, partnership, joint venture,
member or limited liability company interest, beneficial interest in a trust or
similar entity or other equity interest or investment of whatever nature.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings issued
from time to time thereunder.
"ERISA AFFILIATE" means any Person who is a member of the Borrower's
controlled group within the meaning of Section 4001(a)(14)(A) of ERISA.
"EUROCURRENCY LIABILITIES" has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as in
effect from time to time.
"EURODOLLAR LENDING OFFICE" means, with respect to each Lender, the
office of such Lender specified as its "Eurodollar Lending Office" in its
Administrative Questionnaire or in the Assignment and Acceptance or Commitment
Increase Agreement pursuant to which it became a Lender (or, if no such office
is specified,
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its Domestic Lending Office) or such other office of such Lender as such Lender
may from time to time specify to the Borrower and the Administrative Agent.
"EURODOLLAR RATE" means, for any Interest Period for each Eurodollar
Rate Advance comprising part of the same A Borrowing, the interest rate per
annum equal to the average (rounded upward to the nearest whole multiple of 1/16
of 1% per annum, if such average is not such a multiple) of the rate per annum
at which deposits in U.S. dollars are offered by the principal office of each of
the Reference Banks in London, England, to prime banks in the London interbank
market at 11:00 A.M. (London, England time) two Business Days before the first
day of such Interest Period in an amount comparable to the amount of such A
Borrowing and for a period equal to such Interest Period. The Eurodollar Rate
for the Interest Period for each Eurodollar Rate Advance comprising part of the
same A Borrowing shall be determined by the Administrative Agent on the basis of
applicable rates furnished to and received by the Administrative Agent from the
Reference Banks two Business Days before the first day of such Interest Period,
subject, however, to the provisions of Section 2.08.
"EURODOLLAR RATE ADVANCE" means an A Advance which bears interest
determined by reference to the Eurodollar Rate, as provided in Section
2.06(a)(ii).
"EURODOLLAR RATE MARGIN" means for any date the percentage per annum
applicable on such date as set forth in the row labeled "LIBOR Applicable
Margin" on Schedule II hereto, which is based on the ratings (or lack thereof)
by Moody's or S&P or both of the public long-term senior unsecured debt
securities of the Borrower.
"EURODOLLAR RESERVE PERCENTAGE" of any Lender for any Interest Period
for any Eurodollar Rate Advance means the reserve percentage applicable during
such Interest Period under regulations issued from time to time by the Board of
Governors of the Federal Reserve System (or if more than one such percentage
shall be so
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applicable, the daily average of such percentages for those days in such
Interest Period during which any such percentage shall be so applicable) for
determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) for such Lender with respect
to liabilities or assets consisting of or including Eurocurrency Liabilities
having a term equal to such Interest Period.
"EVENTS OF DEFAULT" has the meaning specified in Section 6.01.
"EXTENSION REQUEST" means each request by the Borrower made pursuant to
Section 2.21 for the Lenders to extend the Stated Termination Date, which shall
contain the information in respect of such extension specified in Exhibit G and
shall be delivered to the Administrative Agent in writing.
"FACILITY FEE PERCENTAGE" means for any date the percentage per annum
applicable on such date as set forth in the row labeled "Facility Fee" on
Schedule II hereto, which is based on the ratings (or lack thereof) by Moody's
or S&P or both of the public long-term senior unsecured debt securities of the
Borrower.
"FINAL MATURITY DATE" means the first anniversary of the Stated
Termination Date or, if such day is not a Business Day, the next preceding
Business Day.
"GUARANTY", "GUARANTEED" and "GUARANTEEING" each means any act by which
a Person assumes, guarantees, endorses or otherwise incurs direct or contingent
liability in connection with, or agrees to purchase or otherwise acquire or
otherwise assures a creditor against loss in respect of, any Debt or Project
Financing of any Person other than the Borrower or any of its consolidated
Subsidiaries (excluding (i) any liability by endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary
course of business, (ii) any liability in connection with obligations of the
Borrower or any of its consolidated Subsidiaries, including obligations
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under any conditional sales agreement, equipment trust financing or equipment
lease, (iii) any liability or other act of the Borrower or any of its
Subsidiaries under arrangements entered into in connection with the CLAM Credit
Agreement, and (iv) any such act in connection with a Project Financing that
either (A) guarantees to the provider of such Project Financing or any other
Person performance of the acquisition, improvement, installation, design,
engineering, construction, development, completion, maintenance or operation of,
or otherwise affects any such act in respect of, all or any portion of the
project that is financed by such Project Financing or performance by a Project
Financing Subsidiary of certain obligations to Persons other than the provider
of such Project Financing, except during any period, and then only to the
extent, that such guaranty is a direct guaranty of payment of such Project
Financing (other than a guaranty of payment of the type referred to in subclause
(B) below) or (B) is contingent upon, or the obligation to pay or perform under
which is contingent upon, the occurrence or existence of any event or condition
other than or in addition to (1) the passage of time, (2) any Project Financing
becoming due, (3) the commencement of bankruptcy, insolvency or similar
proceedings by the obligor on any Project Financing or (4) the failure of the
obligor on any Project Financing to satisfy a financial ratio, covenant or other
similar financial measurement test, but only during such period as such act is
not by its terms presently enforceable, or if so enforceable, there is not a
reasonable probability that the guarantor will be called upon to perform
thereunder (or to make capital contributions in lieu of performance thereunder)
(any such act referred to in this clause (iv) being a "CONTINGENT GUARANTY"));
provided, however, that for the purposes of this definition the liability of the
Borrower or any of its Subsidiaries with respect to any obligation as to which a
third party or parties are jointly, or jointly and severally, liable as a
guarantor or otherwise as contemplated hereby and have not defaulted on its or
their portions thereof, shall be only its pro rata portion of such obligation.
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"INDEMNIFIED PARTY" means any or all of the Lenders, the Arranger and
the Administrative Agent.
"INSUFFICIENCY" means, with respect to any Plan, the amount, if any, of
its unfunded benefit liabilities, as defined in Section 4001(a)(18) of ERISA.
"INTEREST PERIOD" means, for each Eurodollar Rate Advance comprising
part of the same A Borrowing, the period beginning on the date of such Advance
or the date of the Conversion of any Advance into such Advance and ending on the
last day of the period selected by the Borrower pursuant to the provisions below
and, thereafter, each subsequent period commencing on the last day of the
immediately preceding Interest Period and ending on the last day of the period
selected by the Borrower pursuant to the provisions below. The duration of each
such Interest Period for a Eurodollar Rate Advance shall be (i) one, two, three
or six months upon notice received by the Administrative Agent not later than
12:00 noon (New York City time) on the third Business Day prior to the first day
of such Interest Period, or (ii) subject to availability to each Lender, nine or
twelve months upon notice received by the Administrative Agent not later than
12:00 noon (New York City time) on the fourth Business Day prior to the first
day of such Interest Period, in each case as the Borrower may select; provided,
however, that:
(A) the duration of any Interest Period which commences before the
Termination Date and would otherwise end after the Termination Date shall end on
the Termination Date and the duration of any Interest Period which would
otherwise end after the Final Maturity Date shall end on the Final Maturity
Date;
(B) if the last day of such Interest Period would otherwise occur on
a day which is not a Business Day, such last day shall be extended to the next
succeeding Business Day, except if such extension would cause such last day to
occur in a new calendar month, then such last day shall occur on the next
preceding Business Day;
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(C) Interest Periods commencing on the same date for A Advances
comprising the same A Borrowing shall be of the same duration; and
(D) any Interest Period which begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such Interest Period) shall, subject to
clause (A) above, end on the last Business Day of a calendar month.
"LENDERS" means the Initial Lenders, each bank or other financial
institution that shall become a party hereto pursuant to Section 2.20, each
Eligible Assignee that shall become a party hereto pursuant to Section 8.07(a),
(b) and (d) and, except when used in reference to an A Advance, an A Borrowing,
a Commitment or a term related to any of the foregoing, each Designated Bidder.
"LIEN" means any lien, security interest or other charge or
encumbrance, or any assignment of the right to receive income, or any other type
of preferential arrangement, in each case to secure any Debt or any Guaranty of
any Person; provided that (i) the creation of interests in property of the
character commonly referred to as a "royalty interest" or "overriding royalty
interest", farmouts, joint operating or unitization agreements, or other similar
transactions in the ordinary course of business and (ii) borrowings under life
insurance policies as described in clause (4) of the proviso to the definition
of "Debt" shall not be deemed to create a Lien.
"LL&E" means The Louisiana Land and Exploration Company, a Maryland
corporation and a wholly-owned Subsidiary of the Borrower.
"LONG-TERM REVOLVING CREDIT AGREEMENT" means the Long-Term Revolving
Credit Agreement dated as of February 25, 1998 as amended and restated as of
February 23, 1999 among the Borrower, the financial institutions party thereto,
Chase, as administrative agent for such financial institutions, The Chase
Manhattan Bank, as auction administrative agent for such financial institutions,
Citibank, N.A., as
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syndication agent for such financial institutions, and Bank of America National
Trust and Savings Association and BankBoston, N.A., as documentation agents for
such financial institutions.
"MAJORITY LENDERS" means at any time Lenders holding at least 51% of
the then aggregate unpaid principal amount of the Notes held by Lenders, or, if
no such principal amount is then outstanding, Lenders having at least 51% of the
Commitments.
"MARGIN STOCK" means "margin stock" as defined in Regulation U of the
Board of Governors of the Federal Reserve System, as in effect from time to
time.
"MATERIAL ADVERSE EFFECT" means a material adverse effect on the
financial condition or operations of the Borrower and its consolidated
Subsidiaries on a consolidated basis.
"MATERIAL PLAN" means any Plan the assets of which exceed $50,000,000
or the liabilities of which for unfunded vested benefits determined on a plan
termination basis (in accordance with Title IV of ERISA) exceed $10,000,000.
"MATERIAL SUBSIDIARY" means, from time to time, any Subsidiary of the
Borrower (other than a Project Financing Subsidiary) then owning assets
(determined on a consolidated basis) that equal or exceed 10% of the book value
of the consolidated assets of the Borrower and its consolidated Subsidiaries at
such time.
"MOODY'S" means ▇▇▇▇▇'▇ Investors Service.
"▇▇▇▇▇▇" means ▇▇▇▇▇▇ Guaranty Trust Company of New York, and its
successors.
"▇▇▇▇▇▇ GOLD LOANS" means the obligations of LL&E under the respective
Credit Agreements dated as of December 23, 1994 and March 31, 1995 between LL&E
and ▇▇▇▇▇▇, or under any additional credit agreements on substantially similar
terms, in each case, as amended, restated, extended or otherwise modified from
time to time, provided that the aggregate outstanding amount
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borrowed thereunder shall at no time exceed 35,000 ounces of gold.
"MULTIEMPLOYER PLAN" means a "multiemployer plan" as defined in Section
4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate is making or
accruing an obligation to make contributions, or has within any of the preceding
five plan years made or accrued an obligation to make contributions, such plan
being maintained pursuant to one or more collective bargaining agreements.
"MULTIPLE EMPLOYER PLAN" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, which (i) is maintained for employees of the
Borrower or an ERISA Affiliate and at least one Person other than the Borrower
and its ERISA Affiliates or (ii) was so maintained and in respect of which the
Borrower or an ERISA Affiliate could have liability under Section 4064 or 4069
of ERISA in the event such plan has been or were to be terminated.
"NEW LENDER" has the meaning specified in Section 2.20(b).
"NEW LENDER AGREEMENT" has the meaning specified in Section 2.20(b).
"NOTE" means a promissory note of the Borrower payable to the order of
any Lender, in substantially the form of Exhibit A hereto, evidencing the
aggregate indebtedness of the Borrower to such Lender resulting from the
Advances made by such ▇▇▇▇▇▇.
"NOTICE OF A BORROWING" has the meaning specified in Section 2.02(a).
"NOTICE OF B BORROWING" has the meaning specified in Section 2.19(a).
"OBJECTING LENDERS" has the meaning specified in Section 2.21(a).
"OFFERED INCREASE AMOUNT" has the meaning specified in Section 2.20(a).
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"ORIGINAL EFFECTIVE DATE" means February 25, 1998.
"OVERDUE REIMBURSEMENT OBLIGATIONS" means with respect to any Person
non-contingent obligations of such Person to reimburse a bank or other Person in
respect of amounts paid under a letter of credit or similar instrument that are
not paid on or prior to the fifth Business Day after the due date therefor.
"PBGC" means the Pension Benefit Guaranty Corporation (or any
successor).
"PERMITTED ASSETS" means (i) hydrocarbon or other reserves (including
proved, probable, possible or speculative reserves), (ii) properties, assets,
rights or business related to reserves (including real property, gathering
systems, plants, pipelines, equipment and processing and treatment facilities),
(iii) other fixed or operating assets and (iv) Equity Interests in any and all
Business Entities that are or become Subsidiaries of the Borrower owning assets
referred to in any of the foregoing clauses.
"PERMITTED LIENS" means
(i) inchoate Liens and charges imposed by law and incidental to
construction, maintenance, development or operation of properties, or the
operation of business, in the ordinary course of business if payment of the
obligation secured thereby is not yet overdue or if the validity or amount of
which is being contested in good faith by the Borrower or any Subsidiary of the
Borrower;
(ii) Liens for taxes, assessments, obligations under workers'
compensation or other social security legislation or other governmental
requirements, charges or levies, in each case not yet overdue;
(iii) Liens reserved in any oil, gas or other mineral lease entered
into in the ordinary course of business for rent, royalty or delay rental under
such lease and for compliance with the terms of such lease;
(iv) easements, servitudes, rights-of-way and other rights, exceptions,
reservations, conditions, limitations, covenants and other restrictions which do
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not materially interfere with the operation, value or use of the properties
affected thereby;
(v) conventional provisions contained in any contracts or agreements
affecting properties under which the Borrower or a Subsidiary of the Borrower is
required immediately before the expiration, termination or abandonment of a
particular property to reassign to the Borrower's or a Subsidiary's predecessor
in title all or a portion of the Borrower's or such Subsidiary's rights, titles
and interests in and to all or a portion of such property;
(vi) any Lien reserved in a grant or conveyance in the nature of a
farm-out or conditional assignment to the Borrower or any of its Subsidiaries
entered into in the ordinary course of business on reasonable terms to secure
undertakings of the Borrower or such Subsidiary in such grant or conveyance;
(vii) any Lien consisting of (A) statutory landlord's liens under
leases to which the Borrower or any Subsidiary of the Borrower is a party or
other Liens on leased property reserved in leases thereof for rent or for
compliance with the terms of such leases, (B) rights reserved to or vested in
any municipality or governmental, statutory or public authority to control or
regulate any property of the Borrower or any of its Subsidiaries or to use such
property in any manner which does not materially impair the use of such property
for the purposes for which it is held by the Borrower or any such Subsidiary,
(C) obligations or duties to any municipality or public authority with respect
to any franchise, grant, license, lease or permit and the rights reserved or
vested in any governmental authority or public utility to terminate any such
franchise, grant, license, lease or permit or to condemn or expropriate any
property, and (D) zoning laws and ordinances and municipal regulations;
(viii) Liens on Equity Interests in, or Debt or other obligations of,
CLAM owned by the Borrower or any of its Subsidiaries, which Liens secure Debt
of CLAM; and
(ix) any Lien on any assets (including Equity Interests and other
obligations) securing Debt incurred or assumed for the purpose of financing all
or any part of the cost of acquiring, improving, installing,
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designing, engineering, developing (including drilling), or constructing such
assets, provided that such Lien attaches to such assets concurrently with or
within 360 days after the acquisition or completion of development, construction
or installation thereof or improvement thereto.
"PERSON" means an individual, a Business Entity, or a country or any
political subdivision thereof or any agency or instrumentality of such country
or subdivision.
"PLAN" means a Single Employer Plan or a Multiple Employer Plan.
"PROJECT FINANCING" means any Debt incurred to finance or refinance the
acquisition, improvement, installation, design, engineering, construction,
development, completion, maintenance or operation of, or otherwise in respect
of, all or any portion of any project, or any asset related thereto, and any
Guaranty with respect thereto, other than any portion of such Debt or Guaranty
permitting or providing for recourse against the Borrower or any of its
Subsidiaries other than (i) recourse to the Equity Interests in, Debt or other
obligations of, or assets of, one or more Project Financing Subsidiaries, and
(ii) such recourse as exists under any Contingent Guaranty.
"PROJECT FINANCING SUBSIDIARY" means any Subsidiary of the Borrower
whose principal purpose is to incur Project Financing, or to become a direct or
indirect partner, member or other equity participant or owner in a Business
Entity so created, and substantially all the assets of which Subsidiary or
Business Entity are limited to those assets being financed (or to be financed),
or the operation of which is being financed (or to be financed), in whole or in
part by a Project Financing or to Equity Interests in, or Debt or other
obligations of, one or more other such Subsidiaries or Business Entities.
"RE-ALLOCATION DATE" has the meaning specified in Section 2.20(e).
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"REFERENCE BANKS" means The Chase Manhattan Bank, Citibank, N.A. and
Bank of America National Trust and Savings Association.
"REGISTER" has the meaning specified in Section 8.07(c).
"REQUIRED LENDERS" means Lenders (i) that are not Objecting Lenders
with respect to any previous Extension Request and (ii) that have Commitment
Percentages aggregating at least 51% of the aggregate Commitment Percentages of
such non-Objecting Lenders.
"REVOLVING A ADVANCE" means an A Advance made or to be made by a Lender
pursuant to Section 2.01(a).
"S&P" means Standard and Poor's Ratings Group, a division of
▇▇▇▇▇▇-▇▇▇▇, Inc. on the Original Effective Date.
"SINGLE EMPLOYER PLAN" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (i) is maintained for employees of the
Borrower or an ERISA Affiliate and no Person other than the Borrower and its
ERISA Affiliates or (ii) was so maintained and in respect of which the Borrower
or an ERISA Affiliate could have liability under Section 4069 of ERISA in the
event such plan has been or were to be terminated.
"STATED TERMINATION DATE" means February 21, 2000, or such later date
as shall be determined pursuant to the provisions of Section 2.21 with respect
to non-Objecting Lenders, provided that if such date is not a Business Day, the
Stated Termination Date shall be the next preceding Business Day.
"SUBSIDIARY" means, as to any Person, any Business Entity of which
shares of stock or other Equity Interests having ordinary voting power (other
than stock or such other Equity Interests having such power only by reason of
the happening of a contingency) to elect a majority of the board of directors or
other managers of such Business Entity are at the time owned, directly or
indirectly through one or more Subsidiaries, or both, by such Person. Unless
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otherwise qualified, all references to a "Subsidiary" or to "Subsidiaries" in
this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.
"TERMINATION DATE" means the earlier of (i) the Stated Termination Date
and (ii) the date of termination in whole of the Commitments pursuant to Section
2.04 or 6.01.
"TERMINATION EVENT" means (i) a "reportable event," as such term is
described in Section 4043 of ERISA (other than a "reportable event" not subject
to the provision for 30-day notice to the PBGC), or an event described in
Section 4062(e) of ERISA, or (ii) the withdrawal of the Borrower or any ERISA
Affiliate from a Multiple Employer Plan during a plan year in which it was a
"substantial employer," as such term is defined in Section 4001(a)(2) of ERISA,
or the incurrence of liability by the Borrower or any ERISA Affiliate under
Section 4064 of ERISA upon the termination of a Multiple Employer Plan, or (iii)
the filing of a notice of intent to terminate a Plan or the treatment of a Plan
amendment as a termination under Section 4041 of ERISA, or (iv) the institution
of proceedings to terminate a Plan by the PBGC under Section 4042 of ERISA, or
(v) the conditions set forth in Section 302(f)(1)(A) and (B) of ERISA to the
creation of a lien upon property or rights to property of the Borrower or any
ERISA Affiliate for failure to make a required payment to a Plan are satisfied,
or (vi) the adoption of an amendment to a Plan requiring the provision of
security to such Plan, pursuant to Section 307 of ERISA, or (vii) any other
event or condition which might constitute grounds under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to administer, any Plan.
"TERM A ADVANCE" means an A Advance made or to be made by a Lender
pursuant to Section 2.01(b).
"TYPE" has the meaning specified in the definition of "A Advance".
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"WITHDRAWAL LIABILITY" shall have the meaning given such term under
Part I of Subtitle E of Title IV of ERISA.
SECTION 1.2. Computation of Time Periods. Unless otherwise stated in
this Agreement, in the computation of a period of time from a specified date to
a later specified date, the word "from" means "from and including" and the words
"to" and "until" each means "to but excluding."
SECTION 1.3. Accounting and Other Terms. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles either (i) consistent with those principles
applied in the preparation of the annual financial statements referred to in
Section 4.01(e), or (ii) not so materially inconsistent with such principles
that a covenant contained in Section 5.01 or 5.02 would be calculated or
construed in a materially different manner or with materially different results
than if such covenant were calculated or construed in accordance with clause (i)
of this Section 1.03. "INCLUDE", "INCLUDES" and "INCLUDING" shall be deemed to
be followed by "without limitation" whether or not they are in fact followed by
such words or words of like import. References to any agreement or contract are
to such agreement or contract as amended, modified or supplemented from time to
time in accordance with the terms hereof and thereof.
SECTION 1.4. References. The words "HEREOF", "HEREIN" and "HEREUNDER"
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Article, Section, Schedule and Exhibit references are to this Agreement unless
otherwise specified.
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ARTICLE 2
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.1. (a Revolving A Advances. Each Lender severally agrees, on
the terms and conditions hereinafter set forth, to make A Advances to the
Borrower from time to time on any Business Day during the period from the
Effective Date to and including the Termination Date in an aggregate amount not
to exceed at any time outstanding the amount set forth opposite such ▇▇▇▇▇▇'s
name on the signature pages hereof under the caption "COMMITMENTS", or, if such
Lender has entered into any Assignment and Acceptance or Commitment Increase
Agreement or a New Lender Agreement, set forth for such Lender in the Register
maintained by the Administrative Agent pursuant to Section 8.07(c), as such
amount may be reduced pursuant to Section 2.04 (such Lender's "COMMITMENT"),
provided that the aggregate amount of the Commitments of the Lenders shall be
deemed used from time to time to the extent of the aggregate amount of the B
Advances then outstanding and such deemed use of the aggregate amount of such
Commitments shall be applied to all the Lenders ratably according to their
respective Commitments (such deemed use of the aggregate amount of the
Commitments being a "B REDUCTION"). Each A Borrowing consisting of Revolving A
Advances shall be in an aggregate amount of $10,000,000 in the case of an A
Borrowing comprised of Base Rate Advances and $25,000,000 in the case of an A
Borrowing comprised of Eurodollar Rate Advances, or, in either case an integral
multiple of $1,000,000 in excess thereof (or, in the case of an A Borrowing of
Base Rate Advances, the aggregate unused Commitments, if less) and shall consist
of A Advances of the same Type made on the same day by the Lenders ratably
according to their respective Commitments. Within the limits of each Lender's
Commitment, the Borrower may make more than one Borrowing on any Business Day
and may borrow, prepay pursuant to Section 2.10, and reborrow under this Section
2.01(a).
(b) Term A Advances. Each Lender severally agrees, at the option of the
Borrower and on the terms and conditions set forth in this Agreement, to make an
A Advance to the Borrower on the Stated Termination Date in an aggregate amount
up to but not exceeding the amount of its Commitment. Each A Borrowing
consisting
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of Term A Advances shall be in an aggregate amount of $10,000,000 in the case of
an A Borrowing comprised of Base Rate Advances and $25,000,000 in the case of an
A Borrowing comprised of Eurodollar Rate Advances, or, in either case an
integral multiple of $1,000,000 in excess thereof and shall consist of A
Advances of the same Type made on the Stated Termination Date by the Lenders
ratably according to their respective Commitments.
SECTION 2.2. Making the A Advances.
(a Each A Borrowing shall be made on notice by the Borrower to the
Administrative Agent (a "NOTICE OF A BORROWING") received by the Administrative
Agent, (i) in the case of a proposed A Borrowing comprised of Base Rate
Advances, not later than 10:00 A.M. (New York City time) on the Business Day of
such proposed A Borrowing, and (ii) in the case of a proposed A Borrowing
comprised of Eurodollar Rate Advances, not later than 12:00 noon (New York City
time) on the third Business Day prior to the date of such proposed A Borrowing.
Each Notice of A Borrowing shall be by telecopy, telefax or other
teletransmission or by telephone (and if by telephone, confirmed promptly by
telecopier, telefax or other teletransmission), in substantially the form of
Exhibit B hereto, specifying therein the requested (w) date of such A Borrowing,
(x) Type of A Advances comprising such A Borrowing and, additionally, whether
such A Borrowing consists of Revolving A Advances or Term A Advances, (y)
aggregate amount of such A Borrowing, and (z) in the case of an A Borrowing
comprised of Eurodollar Rate Advances, the initial Interest Period for each such
A Advance. Each Lender shall, before 1:00 p.m. (New York City time) on the date
of such A Borrowing, make available for the account of its Applicable Lending
Office to the Administrative Agent in care of The Chase Manhattan Bank, Agency
Services, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention:
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, Reference: Burlington Resources Inc., or at such other location
designated by notice from the Administrative Agent to the Lenders pursuant to
Section 8.02, in same day funds, such Lender's ratable portion of such
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A Borrowing. Immediately after the Administrative Agent's receipt of such funds
and upon fulfillment of the applicable conditions set forth in Article 3, the
Administrative Agent will make such funds available to the Borrower at The Chase
Manhattan Bank, One Chase Manhattan Plaza, 8th Floor, New York, NY 10081, or at
any account of the Borrower maintained by the Administrative Agent (or any
successor Administrative Agent) designated by the Borrower and agreed to by the
Administrative Agent (or such successor Administrative Agent), in same day
funds.
(b Each Notice of A Borrowing shall be irrevocable and binding on the
Borrower. In the case of any A Borrowing which the related Notice of A Borrowing
specified is to be comprised of Eurodollar Rate Advances, if such A Advances are
not made as a result of any failure to fulfill on or before the date specified
for such A Borrowing the applicable conditions set forth in Article 3, the
Borrower shall indemnify each Lender against any loss, cost or expense incurred
by such Lender as a result of such failure, including any loss, cost or expense
incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Lender to fund the A Advance to be made by such Lender as part
of such A Borrowing.
(c If any Lender makes a Term A Advance to the Borrower hereunder on a
day on which the Borrower is to repay all or any part of an outstanding
Revolving A Advance from such Lender, such Lender shall apply the proceeds of
its Term A Advance to make such repayment and only an amount equal to the
difference (if any) between the amount being borrowed and the amount being
repaid shall be made available by such Lender to the Administrative Agent as
provided in subsection 2.02(a), or remitted by the Borrower to the
Administrative Agent as provided in Section 2.14, as the case may be.
(d Unless the Administrative Agent shall have received notice from a
Lender prior to the date of any A Borrowing that such Lender will not make
available to the Administrative Agent such ▇▇▇▇▇▇'s ratable portion of such A
Borrowing, the Administrative Agent may assume that such ▇▇▇▇▇▇ has made such
portion available to the Administrative Agent on the date of such
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A Borrowing in accordance with subsections (a) and (c) of this Section 2.02 and
the Administrative Agent may, in reliance upon such assumption, make available
to the Borrower on such date a corresponding amount. If and to the extent such
Lender shall not have so made such ratable portion available to the
Administrative Agent, such Lender and the Borrower severally agree to repay to
the Administrative Agent forthwith on demand such corresponding amount together
with interest thereon, for each day from the date such amount is made available
to the Borrower until the date such amount is repaid to the Administrative
Agent, at the Effective Federal Funds Rate for such day. If such Lender shall
repay to the Administrative Agent such corresponding amount, such amount so
repaid shall constitute such Lender's A Advance to the Borrower as part of such
A Borrowing for purposes of this Agreement.
(e The failure of any Lender to make the A Advance to be made by it as
part of any A Borrowing shall not relieve any other Lender of its obligation, if
any, hereunder to make its A Advance on the date of such A Borrowing, but no
Lender shall be responsible for the failure of any other Lender to make the A
Advance to be made by such other Lender on the date of any A Borrowing.
SECTION 2.3. Fees.
(a FACILITY FEE. The Borrower agrees to pay to the Administrative Agent
for the account of each Lender (other than a Designated Bidder) a facility fee
on the average daily amount of such Lender's Commitment, whether or not used or
deemed used, from the Effective Date in the case of each Initial Lender and from
the effective date specified in the Assignment and Acceptance or Commitment
Increase Agreement pursuant to which it became a Lender in the case of each
other Lender, in each case until the Termination Date, payable quarterly in
arrears on the last day of each March, June, September and December during the
term of such ▇▇▇▇▇▇'s Commitment and on the Termination Date, at a rate per
annum equal to the Facility Fee Percentage in effect from time to time.
(b UTILIZATION FEE. The Borrower agrees to pay to the Administrative
Agent for the account of each
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Lender a utilization fee of 0.25% per annum on the average daily amount of such
Lender's Advances during any period (each such period, a "Utilization Fee
Period") during the term of this Agreement commencing on the Effective Date or
on a subsequent January 1, April 1, July 1 or October 1 and ending in each case
on the earliest to occur of the next succeeding March 31, June 30, September 30
or December 31 and the Termination Date, if during such Utilization Fee Period
the average daily outstanding amount of all Advances was greater than 25% of the
average daily amount of all Commitments. If a utilization fee is owing in
respect of any Utilization Fee Period, such fee shall be payable on the last day
of such Utilization Fee Period.
(c AGENCY FEE. The Borrower agrees to pay to the Administrative Agent,
for its own account, such agency fees as may be separately agreed to in writing
by the Borrower and the Administrative Agent, such fees to be in the amounts and
payable on the dates as may be so agreed to.
(d ARRANGEMENT ▇▇▇. The Borrower agrees to pay to the Administrative
Agent, for its own account, an arrangement fee in the amount and payable on the
date separately agreed to in writing by the Administrative Agent and the
Borrower.
SECTION 2.4. Reduction of the Commitments. The Borrower shall have the
right, upon at least three Business Days' notice to the Administrative Agent, to
terminate in whole or reduce ratably in part the unused portions of the
Commitments of the Lenders (being the amount by which such Commitments exceed
the aggregate outstanding principal amount of all Advances), provided that each
partial reduction shall be in the aggregate amount of $20,000,000 or any whole
multiple of $1,000,000 in excess thereof.
SECTION 2.5. Repayment of A Advances. (a) The Borrower shall repay to
each Lender on the Termination Date the aggregate principal amount of the
Revolving A Advances, together with accrued interest thereon, then owing to such
Lender.
(b) The Borrower shall repay to each Lender on the Final Maturity Date
the aggregate principal amount of
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the Term A Advances, together with accrued interest thereon, then owing to such
▇▇▇▇▇▇.
SECTION 2.6. Interest on A Advances.
(a ORDINARY INTEREST. The Borrower shall pay interest on the unpaid
principal amount of each A Advance owing to each Lender from the date of such A
Advance until such principal amount is due (whether at stated maturity, by
acceleration or otherwise), at the following rates:
(i BASE RATE ADVANCES. During such periods as such A Advance
is a Base Rate Advance, a rate per annum equal at all times to the Base
Rate in effect from time to time plus, in the case of any Term A
Advance, as additional interest in lieu of the facility fee, the
Facility Fee Percentage in effect from time to time, payable quarterly
in arrears on the last day of each March, June, September and December
during such periods and on the date such Base Rate Advance shall be
Converted or due (whether at stated maturity, by acceleration or
otherwise).
(ii EURODOLLAR RATE ADVANCES. During such periods as such A
Advance is a Eurodollar Rate Advance, a rate per annum equal at all
times during each Interest Period for such A Advance to the sum of the
Eurodollar Rate for such Interest Period plus the Eurodollar Rate
Margin in effect from time to time plus, in the case of any Term A
Advance, as additional interest in lieu of the facility fee, the
Facility Fee Percentage in effect from time to time, payable on the
last day of each such Interest Period and, if any such Interest Period
has a duration of more than three months, on each day which occurs
during such Interest Period every three months from the first day of
such Interest Period and, if such A Advance is Converted into a Base
Rate Advance on any date other than the last day of any Interest Period
for such A Advance, on the date of such Conversion or, if later, the
Business Day on which the Borrower shall have received at least one
Business Day's prior notice from the Administrative Agent or the
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applicable Lender of the amount of unpaid interest accrued on such A
Advance to the date of such Conversion.
(iii ADDITIONAL INTEREST ON TERM A ADVANCES. In addition to
amounts payable under clause (i) or (ii) above in respect of any Term A
Advance, the Borrower shall pay to each Lender hereunder as additional
interest an amount in lieu of the utilization fee equal to 0.25% per
annum on the average daily amount of such Lender's Term A Advances
during any period (each such period, an "Additional Interest Period")
during the term of this Agreement commencing on the Termination Date or
on a subsequent January 1, April 1, July 1 or October 1 and ending in
each case on the earliest to occur of the next succeeding March 31,
June 30, September 30 or December 31 and the Final Maturity Date, if
during such Additional Interest Period the average daily outstanding
amount of all Term A Advances was greater than 25% of the aggregate
amount of all the Commitments on the Termination Date. If additional
interest is owing in respect of any Additional Interest Period, such
amount shall be payable on the last day of such Additional Interest
Period.
(b DEFAULT INTEREST. The Borrower shall pay interest on the unpaid
principal amount of each Advance that is not paid when due (whether at stated
maturity, by acceleration or otherwise) from the date on which such amount is
due until such amount is paid in full, payable on demand, at a rate per annum
equal at all times (i) from such due date to the last day of the then existing
Interest Period therefor, in the case of each Eurodollar Rate Advance, to 1% per
annum above the interest rate per annum required to be paid on such A Advance
immediately prior to the date on which such amount became due and (ii) from and
after the last day of the then existing Interest Period therefor, in the case of
each Eurodollar Rate Advance, and at all times in the case of each Base Rate
Advance or B Advance, to 1% per annum above the Base Rate in effect from time to
time.
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SECTION 2.7. Additional Interest on Eurodollar Rate Advances. If any
Lender shall determine in good faith that reserves under regulations of the
Board of Governors of the Federal Reserve System are required to be maintained
by it in respect of, or a portion of its costs of maintaining reserves under
such regulations is properly attributable to, one or more of its Eurodollar Rate
Advances, the Borrower shall pay to such Lender additional interest on the
unpaid principal amount of each such Eurodollar Rate Advance payable on the same
day or days on which interest is payable on such A Advance, at an interest rate
per annum up to but not exceeding at all times during each Interest Period for
such A Advance the excess of (i) the rate obtained by dividing the Eurodollar
Rate for such Interest Period by a percentage equal to 100% minus the Eurodollar
Reserve Percentage, if any, for such Lender for such Interest Period over (ii)
the Eurodollar Rate for such Interest Period. Any Lender wishing to require
payment of such additional interest (x) shall so notify the Borrower and the
Administrative Agent, in which case such additional interest on the Eurodollar
Rate Advances of such Lender shall be payable to such Lender at the place
indicated in such notice with respect to each Interest Period commencing at
least five Business Days after the giving of such notice and (y) shall furnish
to the Borrower at least five Business Days prior to each date on which interest
is payable on the Eurodollar Rate Advances an officer's certificate setting
forth the amount to which such Lender is then entitled under this Section, which
certificate shall be conclusive and binding for all purposes, absent manifest
error.
SECTION 2.8. Interest Rate Determination.
(a Each Reference Bank agrees to furnish to the Administrative Agent
timely information for the purpose of determining each Eurodollar Rate. If any
one or more of the Reference Banks shall not furnish such timely information to
the Administrative Agent for the purpose of determining any such interest rate,
the Administrative Agent shall determine such interest rate
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on the basis of timely information furnished by the remaining Reference Banks.
(b The Administrative Agent shall give prompt notice to the Borrower
and the Lenders of the applicable interest rate determined by the Administrative
Agent for purposes of Section 2.06(a)(i) or (ii), and the applicable rate, if
any, furnished by each Reference Bank for the purpose of determining the
applicable interest rate under Section 2.06(a)(ii).
(c If fewer than two Reference Banks furnish timely information to the
Administrative Agent for determining the Eurodollar Rate for any applicable A
Advances,
(i the Administrative Agent shall give the Borrower and each
Lender prompt notice by telephone (confirmed in writing) that the
interest rate cannot be determined for such applicable A Advances,
(ii each such A Advance that is a Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period
therefor, Convert into a Base Rate Advance (or if such A Advance is
then a Base Rate Advance, will continue as a Base Rate Advance), and
(iii the obligations of the Lenders to make, or to Convert A
Advances into, Eurodollar Rate Advances, as the case may be, shall be
suspended until the Administrative Agent shall notify the Borrower and
the Lenders that the circumstances causing such suspension no longer
exist.
(d If, with respect to any Eurodollar Rate Advances, the Majority
Lenders determine and give notice to the Administrative Agent that as a result
of conditions in or generally affecting the relevant market, the rates of
interest determined on the basis of the Eurodollar Rate for any Interest Period
for such A Advances will not adequately reflect the cost to such Majority
Lenders of making, funding or maintaining their respective Eurodollar Rate
Advances for such Interest Period, the Administrative Agent shall forthwith so
notify the Borrower and the Lenders, whereupon,
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(i each such Eurodollar Rate Advance will automatically, on
the last day of the then existing Interest Period therefor, Convert
into a Base Rate Advance, and
(ii the obligation of the Lenders to make, or to Convert A
Advances into, Eurodollar Rate Advances shall be suspended until the
Administrative Agent shall notify the Borrower and the Lenders that the
circumstances causing such suspension no longer exist.
(e If the Borrower shall fail to select the duration of any Interest
Period for any Eurodollar Rate Advances in accordance with the provisions
contained in the definition of "Interest Period" in Section 1.01, the
Administrative Agent will forthwith so notify the Borrower and the Lenders and
such Eurodollar Rate Advances will automatically, on the last day of the then
existing Interest Period therefor, Convert into Base Rate Advances.
(f On the date on which the aggregate unpaid principal amount of A
Advances comprising any A Borrowing shall be reduced, by payment or prepayment
or otherwise, to less than $10,000,000, such A Advances shall, if they are
Eurodollar Rate Advances, automatically Convert into Base Rate Advances, and on
and after such date the right of the Borrower to Convert such A Advances into
Eurodollar Rate Advances shall terminate; provided, however, that if and so long
as each such A Advance shall be, or be elected to be Converted to, Eurodollar
Rate Advances having the same Interest Period as Eurodollar Rate Advances
comprising another A Borrowing or other A Borrowings, and the aggregate unpaid
principal amount of all such Eurodollar Rate Advances shall, or upon such
Conversion will, equal or exceed $20,000,000, the Borrower shall have the right
to continue all such Eurodollar Rate Advances as, or to Convert all such A
Advances into, Eurodollar Rate Advances having such Interest Period.
SECTION 2.9. Voluntary Conversion of A Advances. The Borrower may on
any Business Day, upon notice given to the Administrative Agent, not later than
12:00 noon (New York City time) on the third Business Day prior to the date of
the proposed Conversion, and
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subject to the provisions of Section 2.08, 2.11 and 2.13, Convert all A Advances
of one Type comprising the same A Borrowing into A Advances of the other Type;
provided, however, that any Conversion of any Eurodollar Rate Advances into Base
Rate Advances made on any day other than the last day of an Interest Period for
such Eurodollar Rate Advances shall be subject to the provisions of Section
8.04(b). Each such notice of a Conversion shall, within the restrictions
specified above, specify (i) the date of such Conversion, (ii) the A Advances to
be Converted, and (iii) if such Conversion is into Eurodollar Rate Advances, the
duration of the Interest Period for each such Eurodollar Rate Advance.
SECTION 2.10. Prepayments. The Borrower may, upon (i) in the case of
Eurodollar Rate Advances, at least three Business Days notice or (ii) in the
case of Base Rate Advances, telephonic notice not later than 12:00 noon (New
York City time) on the date of prepayment, to the Administrative Agent which
specifies the proposed date and aggregate principal amount of the prepayment and
the Type of A Advances to be prepaid, and if such notice is given the Borrower
shall, prepay the outstanding principal amounts of the A Advances comprising the
same A Borrowing in whole or ratably in part, together with accrued interest to
the date of such prepayment on the amount prepaid; provided, however, that (x)
each partial prepayment shall be in an aggregate principal amount not less than
$10,000,000 or an integral multiple of $1,000,000 in excess thereof and (y) in
the event of any such prepayment of Eurodollar Rate Advances on any day other
than the last day of an Interest Period for such Eurodollar Rate Advances, the
Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant
to, and to the extent required by, Section 8.04(b); provided, further, however,
that the Borrower will use its best efforts to give notice to the Administrative
Agent of the proposed prepayment of Base Rate Advances on the Business Day prior
to the date of such proposed prepayment.
SECTION 2.11. Increased Costs.
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(a If, due to either (i) the introduction after the Original
Effective Date of or any change after the Original Effective Date (including any
change by way of imposition or increase of reserve requirements or assessments
other than those referred to in the definition of "Eurodollar Reserve
Percentage" contained in Section 1.01) in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request issued or made
after the Original Effective Date from or by any central bank or other
governmental authority (whether or not having the force of law), in each case
above other than those referred to in Section 2.12, there shall be any increase
in the cost to any Lender of agreeing to make, fund or maintain, or of making,
funding or maintaining, Eurodollar Rate Advances funded in the interbank
Eurodollar market, then the Borrower shall from time to time, upon demand by
such Lender (with a copy of such demand to the Administrative Agent), pay to the
Administrative Agent for the account of such Lender additional amounts
sufficient to reimburse such Lender for all such increased costs (except those
incurred more than 60 days prior to the date of such demand; for the purposes
hereof any cost or expense allocable to a period prior to the publication or
effective date of such an introduction, change, guideline or request shall be
deemed to be incurred on the later of such publication or effective date). Each
Lender agrees to use its best reasonable efforts promptly to notify the Borrower
of any event referred to in clause (i) or (ii) above, provided that the failure
to give such notice shall not affect the rights of any Lender under this Section
2.11(a) (except as otherwise expressly provided above in this Section 2.11(a)).
A certificate as to the amount of such increased cost, submitted to the Borrower
and the Administrative Agent by such Lender, shall be conclusive and binding for
all purposes, absent manifest error. After one or more Lenders have notified the
Borrower of any increased costs pursuant to this Section 2.11, the Borrower may
specify by notice to the Administrative Agent and the affected Lenders that,
after the date of such notice whenever the election of a Eurodollar Rate Advance
by the
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Borrower for an Interest Period or portion thereof would give rise to such
increased costs, such election shall not apply to the A Advances of such Lender
or Lenders during such Interest Period or portion thereof, and, in lieu thereof,
such A Advances shall during such Interest Period or portion thereof be Base
Rate Advances. Each Lender agrees to use its best reasonable efforts (including
a reasonable effort to change its Applicable Lending Office or to transfer its
affected A Advances to an Affiliate of such Lender) to avoid, or minimize the
amount of, any demand for payment from the Borrower under this Section 2.11,
provided that such avoidance would not, in the reasonable judgment of such
Lender, be otherwise disadvantageous to such Lender.
(b In the event that any Lender shall change its Eurodollar Lending
Office and such change results (at the time of such change) in increased costs
to such Lender, the Borrower shall not be liable to such Lender for such
increased costs incurred by such Lender to the extent, but only to the extent,
that such increased costs shall exceed the increased costs which such Lender
would have incurred if the Eurodollar Lending Office of such Lender had not been
so changed, but, subject to subsection (a) of this Section 2.11 and to Section
2.13, nothing herein shall require any Lender to change its Eurodollar Lending
Office for any reason.
SECTION 2.12. Increased Capital. If either (i) the introduction of or
any change in or in the interpretation of any law or regulation or (ii)
compliance by any Lender with any guideline or request from any central bank or
other governmental authority (whether or not having the force of law) affects or
would affect the amount of capital required or expected to be maintained by such
Lender or any corporation controlling such Lender (including any determination
after the Original Effective Date by any such central bank, governmental
authority or comparable agency that, for purposes of capital adequacy
requirements, the Commitments hereunder do not constitute commitments with an
original maturity of one year or less) and such Lender determines that the
amount of such capital is increased by or based upon
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the existence of such ▇▇▇▇▇▇'s commitment to lend hereunder and other
commitments of this type, then, within ten days after demand, and delivery to
the Borrower of the certificate referred to in the last sentence of this Section
2.12 by such ▇▇▇▇▇▇ (with a copy of such demand to the Administrative Agent),
the Borrower shall pay to the Administrative Agent for the account of such
Lender, from time to time as specified by such ▇▇▇▇▇▇, additional amounts
sufficient to compensate such Lender or such corporation in the light of such
circumstances, to the extent that such Lender reasonably determines such
increase in capital to be allocable to the existence of such ▇▇▇▇▇▇'s commitment
to lend hereunder (except any such increase in capital incurred more than, or
compensation attributable to the period before, 90 days prior to the date of
such demand; for the purposes hereof any increase in capital allocable to, or
compensation attributable to, a period prior to the publication or effective
date of such an introduction, change, guideline or request shall be deemed to be
incurred on the later of such publication or effective date). Each Lender agrees
to use its best reasonable efforts promptly to notify the Borrower of any event
referred to in clause (i) or (ii) above, provided that the failure to give such
notice shall not affect the rights of any Lender under this Section 2.12 (except
as otherwise expressly provided above in this Section 2.12). A certificate in
reasonable detail as to the basis for, and the amount of, such compensation
submitted to the Borrower and the Administrative Agent by such Lender shall, in
the absence of manifest error, be conclusive and binding for all purposes.
SECTION 2.13. Illegality. Notwithstanding any other provision of this
Agreement, if the introduction of or any change in or in the interpretation of
any law or regulation shall make it unlawful, or any central bank or other
governmental authority shall assert that it is unlawful, for any Lender or its
Applicable Lending Office to perform its obligations hereunder to make
Eurodollar Rate Advances or to continue to fund or maintain such Advances
hereunder, such Lender may, by notice to the Borrower and the Administrative
Agent, suspend the right of the Borrower to elect Eurodollar
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Rate Advances from such Lender and, if necessary in the reasonable opinion of
such Lender to comply with such law or regulation, Convert all such Eurodollar
Rate Advances of such Lender to Base Rate Advances at the latest time permitted
by the applicable law or regulation, and such suspension and, if applicable,
such Conversion shall continue until such Lender notifies the Borrower and the
Administrative Agent that the circumstances making it unlawful for such Lender
to perform such obligations no longer exist (which such Lender shall promptly do
when such circumstances no longer exist). So long as the obligation of any
Lender to make Eurodollar Rate Advances has been suspended under this Section
2.13, all Notices of A Borrowing specifying A Advances of such Type shall be
deemed, as to such Lender, to be requests for Base Rate Advances. Each Lender
agrees to use its best reasonable efforts (including a reasonable effort to
change its Applicable Lending Office or to transfer its affected A Advances to
an affiliate) to avoid any such illegality, provided that such avoidance would
not, in the reasonable judgment of such Lender, be otherwise disadvantageous to
such Lender.
SECTION 2.14. Payments and Computations.
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(a The Borrower shall make each payment hereunder (including under
Section 2.03, 2.05, 2.06 or 2.19) and under the Notes, whether the amount so
paid is owing to any or all of the Lenders or to the Administrative Agent, not
later than 1:00 P.M. (New York City time) without setoff, counterclaim, or any
other deduction whatsoever, on the day when due in U.S. dollars to the
Administrative Agent in care of The Chase Manhattan Bank, Agency Services, ▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, Reference: Burlington Resources Inc., or at such other location
designated by notice to the Borrower from the Administrative Agent and agreed to
by the Borrower, in same day funds. Each such payment made by the Borrower for
the account of any Lender hereunder, when so made to the Administrative Agent,
shall be deemed duly made for all purposes of this Agreement and the Notes,
except that if at any time any such payment is rescinded or must otherwise be
returned by the Administrative Agent or any Lender upon the bankruptcy,
insolvency or reorganization of the Borrower or otherwise, such payment shall be
deemed not to have been so made. The Administrative Agent will promptly
thereafter cause to be distributed like funds relating to the payment of
principal or interest or fees ratably (other than amounts payable pursuant to
Section 2.07, 2.11, 2.12, 2.13, 2.15, 2.19 or 8.04(b)) to the Lenders for the
account of their respective Applicable Lending Offices, and like funds relating
to the payment of any other amount payable to any Lender to such Lender for the
account of its Applicable Lending Office, in each case to be applied in
accordance with the terms of this Agreement. Upon its acceptance of an
Assignment and Acceptance and recording of the information contained therein in
the Register pursuant to Section 8.07(d), from and after the effective date
specified in such Assignment and Acceptance, the Administrative Agent shall make
all payments hereunder and under the Notes in respect of the interest assigned
thereby to the Lender assignee thereunder, and the parties to such Assignment
and Acceptance shall make all appropriate adjustments in such payments for
periods prior to such effective date directly between themselves.
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(b All computations of interest based on the Base Rate and of facility
fees and utilization fees (or amounts in lieu thereof) shall be made by the
Administrative Agent on the basis of a year of 365 or 366 days, as the case may
be, and all computations of interest based on the Eurodollar Rate, or the
Effective Federal Funds Rate shall be made by the Administrative Agent, and all
computations of interest pursuant to Section 2.07 shall be made by each Lender
with respect to its own Eurodollar Rate Advances, on the basis of a year of 360
days, in each case for the actual number of days (including the first day but
excluding the last day) occurring in the period for which such interest or fees
are payable. Each determination by the Administrative Agent (or, in the case of
Section 2.07, 2.11, 2.12, 2.13, 2.15, 2.19 or 8.04(b), by each Lender with
respect to its own Advances) of an interest rate or an increased cost, loss or
expense or increased capital or of illegality or taxes hereunder shall be
conclusive and binding for all purposes if made reasonably and in good faith.
(c Whenever any payment hereunder or under the Notes shall be stated to
be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or facility fees, as the case
may be; provided, however, if such extension would cause payment of interest on
or principal of Eurodollar Rate Advances to be made in the next following
calendar month, such payment shall be made on the next preceding Business Day.
(d Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Lenders hereunder
that the Borrower will not make such payment in full, the Administrative Agent
may assume that the Borrower has made such payment in full to the Administrative
Agent on such date and the Administrative Agent may, in reliance upon such
assumption, cause to be distributed to each Lender on such due date an amount
equal to the amount then due such Lender. If and to the extent the Borrower
shall not have so made such payment in full to
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the Administrative Agent, each Lender shall repay to the Administrative Agent
forthwith on demand such amount distributed to such Lender together with
interest thereon, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the Administrative
Agent, at a rate equal to the Effective Federal Funds Rate for such day.
SECTION 2.15. Taxes.
(a Any and all payments by the Borrower hereunder or under the Notes
shall be made in accordance with Section 2.14, free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions,
charges or withholdings, and all liabilities with respect thereto, excluding in
the case of each Indemnified Party, (i) all taxes, levies, imposts, deductions,
charges, or withholdings, and all liabilities with respect thereto, imposed on
or determined by reference to its income or profits, and all franchise taxes,
and (ii) all other taxes, levies, imposts, deductions, charges, or withholdings
in effect at the time that such Indemnified Party executed this Agreement or
otherwise became an "Indemnified Party" hereunder, and liabilities with respect
thereto, imposed on it by reason of the jurisdiction in which such Indemnified
Party is organized, domiciled, resident or doing business, or any political
subdivision thereof, or by reason of the jurisdiction of its Applicable Lending
Office or any other office from which it makes or maintains any extension of
credit hereunder or any political subdivision thereof (all such non-excluded
taxes, levies, imposts, deductions, charges, withholdings and liabilities in
respect of payments under this Agreement or under the Notes being herein
referred to as "TAXES"). If the Borrower shall be required by law to deduct any
Taxes from or in respect of any sum payable hereunder or under any Note to any
Indemnified Party, (i) the sum payable shall be increased as may be necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under
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this Section 2.15) such Indemnified Party receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower (or the
Administrative Agent, as applicable) shall make such deductions at the
applicable statutory rate and (iii) the Borrower (or the Administrative Agent,
as applicable) shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law, provided that
the Borrower shall not be required to pay any additional amount (and shall be
relieved of any liability with respect thereto) pursuant to this subsection (a)
(or pursuant to Section 2.15(c), except to the extent Section 2.15(c) relates to
Other Taxes) to any Indemnified Party that either (x) on the date such
Indemnified Party executed this Agreement or otherwise became an "Indemnified
Party" hereunder, both (A) was not entitled to submit a U.S. Internal Revenue
Service form 1001 (relating to such Indemnified Party, and entitling it to a
complete exemption from withholding on all amounts to be received by such
Indemnified Party, including fees, pursuant to this Agreement or the Advances)
or a U.S. Internal Revenue Service form 4224 (relating to all amounts to be
received by such Indemnified Party, including fees, pursuant to this Agreement
and the Advances) and (B) is not a United States person (as such term is defined
in Section 7701(a)(30) of the Internal Revenue Code), or (y) has failed to
submit any form or certificate that it was required to file or provide pursuant
to subsection (d) of this Section 2.15 and is entitled to file or give, as
applicable, under applicable law, provided, further, that should an Indemnified
Party become subject to Taxes because of its failure to deliver a form required
hereunder, the Borrower shall take such administrative steps as such Indemnified
Party shall reasonably request to assist such Indemnified Party to recover such
Taxes, and provided further, that each Indemnified Party, with respect to
itself, agrees to indemnify and hold harmless the Borrower from any taxes,
penalties, interest and other expenses, costs and losses incurred or payable by
the Borrower as a result of the failure of the Borrower to
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comply with its obligations under clauses (ii) or (iii) above in reliance on any
form or certificate provided to it by such Indemnified Party pursuant to this
Section 2.15. If any Indemnified Party receives a net credit or refund in
respect of such Taxes or amounts so paid by the Borrower, it shall promptly
notify the Borrower of such net credit or refund and shall promptly pay such net
credit or refund to the Borrower, provided that the Borrower agrees to return
such net credit or refund if the Indemnified Party to which such net credit or
refund is applicable, is required to repay it.
(b) In addition, the Borrower agrees to pay any present or future stamp
or documentary taxes or any other excise or property taxes, charges or similar
levies which arise from any payment made hereunder or under the Notes or from
the execution, delivery or registration of, or otherwise with respect to, this
Agreement or the Notes (hereinafter referred to as "OTHER TAXES").
(c) The Borrower will indemnify each Indemnified Party for the full
amount of Taxes or Other Taxes (including any Taxes or Other Taxes imposed by
any jurisdiction on amounts payable under this Section 2.15) paid by such
Indemnified Party and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto except as a result of the gross
negligence (which shall in any event include the failure of such Indemnified
Party to provide to the Borrower any form or certificate that it was required to
provide pursuant to subsection (d) below) or willful misconduct of such
Indemnified Party, whether or not such Taxes or Other Taxes were correctly or
legally asserted. This indemnification shall be made within 30 days from the
date such Indemnified Party makes written demand therefor.
(d) On or prior to the date on which each Indemnified Party that is
not a United States person (as such term is defined in Section 7701(a)(30) of
the Internal Revenue Code) executes this Agreement or otherwise becomes an
"Indemnified Party" hereunder, such Indemnified Party shall provide the Borrower
and
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the Administrative Agent with U.S. Internal Revenue Service form 1001 or 4224,
as appropriate, or any successor form prescribed by the U.S. Internal Revenue
Service, certifying that such Indemnified Party is fully exempt from United
States withholding taxes with respect to all payments to be made to such
Indemnified Party hereunder, or other documents satisfactory to the Borrower
indicating that all payments to be made to such Indemnified Party hereunder are
fully exempt from such taxes. Thereafter and from time to time, each such
Indemnified Party shall submit to the Borrower and the Administrative Agent such
additional duly completed and signed copies of one or the other of such forms
(or such successor forms as shall be adopted from time to time by the relevant
United States taxing authorities) as may be (i) notified by the Borrower to such
Indemnified Party and (ii) required under then-current United States law or
regulations to avoid United States withholding taxes on payments in respect of
all amounts to be received by such Indemnified Party pursuant to this Agreement
or the Notes, including fees. Upon the request of the Borrower from time to
time, each Indemnified Party that is a United States person (as such term is
defined in Section 7701(a)(30) of the Internal Revenue Code) shall submit to the
Borrower a certificate to the effect that it is such a United States person. If
any Indemnified Party determines, as a result of any change in applicable law,
regulation or treaty, or in any official application or interpretation thereof,
that it is unable to submit to the Borrower any form or certificate that such
Indemnified Party is obligated to submit pursuant to this subsection (d), or
that such Indemnified Party is required to withdraw or cancel any such form or
certificate previously submitted, such Indemnified Party shall promptly notify
the Borrower and the Administrative Agent of such fact.
(e) Any Indemnified Party claiming any additional amounts payable
pursuant to this Section 2.15 shall use its best reasonable efforts (consistent
with its internal policy and legal and regulatory restrictions) to change the
jurisdiction of its Applicable Lending Office if the making of such a change
would avoid the
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need for, or reduce the amount of, any such additional amounts which may
thereafter accrue and would not, in the reasonable judgment of such Indemnified
Party, be otherwise disadvantageous to such Indemnified Party.
(f) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower and each
Indemnified Party contained in this Section 2.15 shall survive the payment in
full of principal and interest hereunder and under the Notes.
SECTION 2.16. Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the A Advances made by it (other than
pursuant to Section 2.07, 2.11, 2.12, 2.13, 2.15 or 8.04(b)) in excess of its
ratable share of payments on account of the A Advances obtained by all the
Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the A Advances made by them as shall be necessary to cause
such purchasing Lender to share the excess payment ratably with each of them,
provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each Lender
shall be rescinded and each Lender shall repay to the purchasing Lender the
purchase price to the extent of such Lender's ratable share (according to the
proportion of (i) the amount of the participation purchased from such Lender as
a result of such excess payment to (ii) the total amount of such excess payment)
of such recovery together with an amount equal to such ▇▇▇▇▇▇'s ratable share
(according to the proportion of (A) the amount of such ▇▇▇▇▇▇'s required
repayment to (B) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. The Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section may, to
the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully
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as if such Lender were the direct creditor of the Borrower in the amount of such
participation.
SECTION 2.17. Evidence of Debt. The indebtedness of the Borrower to
each Lender in respect of principal of and interest on the Advances shall be
evidenced by a Note payable to the order of such ▇▇▇▇▇▇ and delivered hereunder
by the Borrower. Notwithstanding the provisions of the Notes for notations to be
made on the grid attached thereto, any Lender may maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of the
Borrower resulting from Advances and payments made from time to time hereunder
and under the Note payable to its order. In any legal action or proceeding in
respect of this Agreement or such Note, the entries made in such account or
accounts shall be conclusive evidence of the existence and amounts of the
obligations of the Borrower therein recorded, absent manifest error.
SECTION 2.18. Use of Proceeds. Proceeds of the Advances may be used for
general corporate purposes of the Borrower and its Subsidiaries, including for
acquisitions and for payment of commercial paper issued by the Borrower.
SECTION 2.19. The B Advances. (a) Each Lender severally agrees that the
Borrower may make B Borrowings under this Section 2.19 from time to time on any
Business Day during the period from the Effective Date until the earlier of (I)
the Termination Date or (II) the date falling 30 days prior to the Stated
Termination Date, in the manner set forth below; provided that (x) each B
Borrowing shall be in an aggregate amount of $25,000,000 or an integral multiple
of $5,000,000 in excess thereof and (y) following the making of each B
Borrowing, the aggregate number of outstanding B Borrowings shall not exceed
seven and the aggregate amount of all Advances then outstanding shall not exceed
the aggregate amount of the Commitments of the Lenders (computed without regard
to any B Reduction).
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(i) The Borrower may request a B Borrowing under this Section
2.19 by delivering to the Administrative Agent, by telecopy, telefax or
other teletransmission, a notice of a B Borrowing (a "NOTICE OF B
BORROWING"), in substantially the form of Exhibit C hereto, specifying
the date and aggregate amount of the proposed B Borrowing, the maturity
date for repayment of each B Advance to be made as part of such B
Borrowing (which maturity date may not be earlier than the date
occurring 30 days after the date of such B Borrowing or later than the
earlier of (x) 180 days after the date of such B Borrowing or (y) the
Stated Termination Date), the interest payment date or dates relating
thereto, and any other terms to be applicable to such B Borrowing, not
later than 10:00 A.M. (New York City time) (A) at least one Business
Day prior to the date of the proposed B Borrowing, if the Borrower
shall specify in the Notice of B Borrowing that the rates of interest
to be offered by the Lenders shall be fixed rates per annum and (B) at
least four Business Days prior to the date of the proposed B Borrowing,
if the Borrower shall instead specify in the Notice of B Borrowing the
basis to be used by the Lenders in determining the rates of interest to
be offered by them. The Administrative Agent shall in turn promptly
notify each Lender of each request for a B Borrowing received by it
from the Borrower by sending such Lender a copy of the related Notice
of B Borrowing.
(ii) Each Lender may, if in its sole and absolute discretion it
elects to do so, irrevocably offer to make one or more B Advances to
the Borrower as part of such proposed B Borrowing at a rate or rates of
interest specified by such Lender in its sole discretion, by notifying
the Administrative Agent (which shall give prompt notice thereof to the
Borrower), before 10:00 A.M. (New York City time) (x) on the date of
such proposed B Borrowing in the case of a Notice of B Borrowing
delivered pursuant to clause
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(A) of paragraph (i) above, and (y) three Business Days before the date
of such proposed B Borrowing in the case of a Notice of B Borrowing
delivered pursuant to clause (B) of paragraph (i) above, of the maximum
amount of each B Advance which such Lender would be willing to make as
part of such proposed B Borrowing (which amount may, subject to clause
(y) of the proviso to the first sentence of this Section 2.19(a),
exceed such ▇▇▇▇▇▇'s Commitment), the rate or rates of interest
therefor and such Lender's Applicable Lending Office with respect to
such B Advance; provided that if the Administrative Agent or an
Affiliate thereof in its capacity as a Lender shall, in its sole
discretion, elect to make any such offer, it shall notify the Borrower
of such offer before 9:45 A.M. (New York City time) on the date on
which notice of such election is to be given to the Administrative
Agent by the other Lenders. If any Lender shall elect not to make such
an offer, such Lender shall so notify the Administrative Agent, before
10:00 A.M. (New York City time) on the date on which notice of such
election is to be given to the Administrative Agent by the other
Lenders, and such Lender shall not be obligated to, and shall not, make
any B Advance as part of such B Borrowing; provided that the failure by
any Lender to give such notice shall not cause such Lender to be
obligated to make any B Advance as part of such proposed B Borrowing.
(iii) The Borrower shall, in turn, before 11:00 A.M. (New York
City time) (x) on the date of such proposed B Borrowing, in the case of
a Notice of B Borrowing delivered pursuant to clause (A) of paragraph
(i) above and (y) three Business Days before the date of such proposed
B Borrowing in the case of a Notice of B Borrowing delivered pursuant
to clause (B) of paragraph (i) above, either
(A) cancel such B Borrowing by giving the
Administrative Agent notice to that effect, or
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(B) accept one or more of the offers made by any
Lender or Lenders pursuant to paragraph (ii) above, in order
of the lowest to highest rates of interest or margins (or, if
two or more Lenders bid at the same rates of interest, and the
amount of accepted offers is less than the aggregate amount of
such offers, the amount to be borrowed from such Lenders as
part of such B Borrowing shall be allocated among such Lenders
pro rata on the basis of the maximum amount offered by such
Lenders at such rates or margin in connection with such B
Borrowing), in any aggregate amount up to the aggregate amount
initially requested by the Borrower in the relevant Notice of
B Borrowing, by giving notice to the Administrative Agent of
the amount of each B Advance (which amount shall be equal to
or greater than the minimum amount, and equal to or less than
the maximum amount, notified to the Borrower by the
Administrative Agent on behalf of such Lender for such B
Advance pursuant to paragraph (ii) above) to be made by each
Lender as part of such B Borrowing, and reject any remaining
offers made by Lenders pursuant to paragraph (ii) above by
giving the Administrative Agent notice to that effect.
(iv) If the Borrower notifies the Administrative Agent that
such B Borrowing is cancelled pursuant to paragraph (iii)(A) above, the
Administrative Agent shall give prompt notice thereof to the Lenders
and such B Borrowing shall not be made.
(v) If the Borrower accepts one or more of the offers made by
any Lender or Lenders pursuant to paragraph (iii)(B) above, the
Administrative Agent shall in turn promptly notify (A) each Lender that
has made an offer as described in paragraph (ii) above, of the date and
aggregate amount of such B Borrowing and whether or not any offer or
offers made by such Lender pursuant to paragraph (ii) above have been
accepted by the
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Borrower, (B) each Lender that is to make a B Advance as part of such B
Borrowing, of the amount of each B Advance to be made by such Lender as
part of such B Borrowing, and (C) each Lender that is to make a B
Advance as part of such B Borrowing, upon receipt, that the
Administrative Agent has received forms of documents appearing to
fulfill the applicable conditions set forth in Article 3. Each Lender
that is to make a B Advance as part of such B Borrowing shall, before
12:00 noon (New York City time) on the date of such B Borrowing
specified in the notice received from the Administrative Agent pursuant
to clause (A) of the preceding sentence or any later time when such
Lender shall have received notice from the Administrative Agent
pursuant to clause (C) of the preceding sentence, make available for
the account of its Applicable Lending Office to the Administrative
Agent at its address referred to in Section 8.02 such ▇▇▇▇▇▇'s portion
of such B Borrowing, in same day funds. Upon fulfillment of the
applicable conditions set forth in Article 3 and after receipt by the
Administrative Agent of such funds, the Administrative Agent will make
such funds available to the Borrower at the Administrative Agent's
aforesaid address. Promptly after each B Borrowing the Administrative
Agent will notify each Lender of the amount of the B Borrowing, the
consequent B Reduction and the dates upon which such B Reduction
commenced and will terminate.
(b) Within the limits and on the conditions set forth in this Section
2.19, the Borrower may from time to time borrow under this Section 2.19, repay
or prepay pursuant to subsection (c) below, and reborrow under this Section
2.19.
(c) The Borrower shall repay to the Administrative Agent for the
account of each Lender which has made a B Advance, or each other holder of a
Note, on the maturity date of each B Advance (such maturity date being that
specified by the Borrower for repayment in the related Notice of B Borrowing and
provided in the Note evidencing such B Advance), the then unpaid
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principal amount of such B Advance. The Borrower shall have no right to prepay
any B Advance unless, and then only on the terms, specified by the Borrower for
such B Advance in the related Notice of B Borrowing delivered pursuant to
Section 2.19(a)(i) and set forth in the Note evidencing such B Advance or unless
the holder of such B Advance otherwise consents in writing to such prepayment.
(d) The Borrower shall pay interest on the unpaid principal amount of
each B Advance from the date of such B Advance to the date the principal amount
of such B Advance is repaid in full at the rate of interest for such B Advance
specified by the Lender making such B Advance in its notice delivered pursuant
to subsection (a)(ii) above on the interest date or dates specified by the
Borrower for such B Advance in the related Notice of B Borrowing and set forth
in the Note evidencing such B Advance, subject to Section 2.06(b).
(e) Each time that the Borrower gives a Notice of B Borrowing, the
Borrower shall pay to the Administrative Agent for its own account such fee as
may be agreed between the Borrower and the Administrative Agent from time to
time, whether or not any B Borrowing is in fact made.
(f) Following the making of each B Borrowing, the Borrower agrees that
it will be in compliance with the limitations set forth in clause (y) of the
proviso to the first sentence of Section 2.19(a).
(g) The failure of any Lender to make the B Advance to be made by it as
part of any B Borrowing shall not relieve any other Lender of its obligation, if
any, hereunder to make its B Advance on the date of such B Borrowing, but no
Lender shall be responsible for the failure of any other Lender to make the B
Advance to be made by such other Lender on the date of any B Borrowing. If any
Designated Bidder fails to make the B Advance to be made by it as part of any B
Borrowing, such Designated Bidder shall not thereafter have the right to offer
to make any B Advance without the prior written consent of the Borrower and the
Administrative Agent.
SECTION 2.20. Increase of Commitments. (a) At any time after the
Effective Date, provided that no Event
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of Default shall have occurred and be continuing, the Borrower may request an
increase of the aggregate Commitments by notice to the Administrative Agent in
writing of the amount (the "OFFERED INCREASE AMOUNT") of such proposed increase
(such notice, a "COMMITMENT INCREASE NOTICE"). Any such Commitment Increase
Notice must offer each Lender the opportunity to subscribe for its pro rata
share of the increased Commitments. If any portion of the increased Commitments
is not subscribed for by the Lenders, the Borrower may, in its sole discretion,
but with the consent of the Administrative Agent as to any Person that is not at
such time a Lender (which consent shall not be unreasonably withheld), offer to
any existing Lender or to one or more additional banks or financial institutions
the opportunity to participate in all or a portion of such unsubscribed portion
of the increased Commitments pursuant to paragraph (b) or (c) below, as
applicable.
(b) Any additional bank or financial institution that the Borrower
selects to offer participation in the increased Commitments, and that elects to
become a party to this Agreement and obtain a Commitment, shall execute a New
Lender Agreement with the Borrower and the Administrative Agent, substantially
in the form of Exhibit E (a "NEW LENDER AGREEMENT"), whereupon such bank or
financial institution (a "NEW LENDER") shall become a Lender for all purposes
and to the same extent as if originally a party hereto and shall be bound by and
entitled to the benefits of this Agreement, and the signature pages hereof shall
be deemed to be amended to add the name and Commitment of such New Lender,
provided that the Commitment of any such New Lender shall be in an amount not
less than $10,000,000.
(c) Any Lender that accepts an offer to it by the Borrower to increase
its Commitment pursuant to this Section 2.20 shall, in each case, execute a
Commitment Increase Agreement with the Borrower and the Administrative Agent,
substantially in the form of Exhibit F (a "COMMITMENT INCREASE AGREEMENT"),
whereupon such Lender shall be bound by and entitled to the benefits of this
Agreement with respect to the full amount of its Commitment as so increased, and
the
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signature pages hereof shall be deemed to be amended to so increase the
Commitment of such Lender.
(d) The effectiveness of any New Lender Agreement or Commitment
Increase Agreement shall be contingent upon receipt by the Administrative Agent
of such corporate resolutions of the Borrower and legal opinions of counsel to
the Borrower as the Administrative Agent shall reasonably request with respect
thereto, in each case, in form and substance satisfactory to the Administrative
Agent.
(e) If any bank or financial institution becomes a New Lender pursuant
to Section 2.20(b) or any Lender's Commitment is increased pursuant to Section
2.20(c), additional A Advances made on or after the effectiveness thereof (the
"RE-ALLOCATION DATE") shall be made pro rata based on the Commitment Percentages
in effect on and after such Re-Allocation Date (except to the extent that any
such pro rata borrowings would result in any Lender making an aggregate
principal amount of A Advances in excess of its Commitment, in which case such
excess amount will be allocated to, and made by, such New Lender and/or Lenders
with such increased Commitments to the extent of, and pro rata based on, their
respective Commitments), and continuations of Eurodollar Rate Advances
outstanding on such Re-Allocation Date shall be effected by repayment of such
Eurodollar Rate Advances on the last day of the Interest Period applicable
thereto and the making of new Eurodollar Rate Advances pro rata based on such
new Commitment Percentages. In the event that on any such Re-Allocation Date
there is an unpaid principal amount of Base Rate Advances, the Borrower shall
make prepayments thereof and borrowings of Base Rate Advances so that, after
giving effect thereto, the Base Rate Advances outstanding are held pro rata
based on such new Commitment Percentages. In the event that on any such
Re-Allocation Date there is an unpaid principal amount of Eurodollar Rate
Advances, such Eurodollar Rate Advances shall remain outstanding with the
respective holders thereof until the expiration of their respective Interest
Periods (unless the applicable Borrower elects to prepay any thereof in
accordance with the applicable provisions of this
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Agreement), and interest on and repayments of such Eurodollar Rate Advances will
be paid thereon to the respective Lenders holding such Eurodollar Rate Advances
pro rata based on the respective principal amounts thereof outstanding.
(f) Notwithstanding anything to the contrary in this Section 2.20, (i)
no increase pursuant to this Section 2.20 shall be effective without the consent
of the Required Lenders, (ii) no Lender shall have any obligation to increase
its Commitment unless it agrees to do so in its sole discretion and (iii) the
aggregate amount by which the Commitments hereunder are increased pursuant to
this Section 2.20 shall not exceed $120,000,000.
(g) The Borrower shall execute and deliver a Note to each new bank or
other financial institution becoming a Lender.
SECTION 2.21. Extension of Stated Termination Date. (a) Not earlier
than 65 days prior to and not later than 45 days prior to the Stated Termination
Date then in effect, provided that no Event of Default shall have occurred and
be continuing, the Borrower may request an extension of such Stated Termination
Date by submitting to the Administrative Agent an Extension Request containing
the information in respect of such extension specified in Exhibit G, which the
Administrative Agent shall promptly furnish to each Lender. Each Lender shall,
by the later of (i) the date 30 days after its receipt from the Administrative
Agent of the applicable Extension Request and (ii) the date 30 days prior to the
Stated Termination Date, notify the Borrower and the Administrative Agent of its
election to extend or not extend the Stated Termination Date as requested in
such Extension Request. If the Required Lenders shall approve in writing the
extension of the Stated Termination Date requested in such Extension Request,
and unless the Borrower shall elect to give notice for a Term A Advance pursuant
to Section 2.01(b), the Stated Termination Date shall automatically and without
any further action by any Person be extended for an additional 364 days provided
that the Commitment of any Lender that does not consent in writing within the
period specified above (an
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"OBJECTING LENDER") shall, unless earlier terminated in accordance with this
Agreement, expire on the Stated Termination Date in effect on the date of such
Extension Request (such Stated Termination Date, if any, referred to as the
"COMMITMENT EXPIRATION DATE" with respect to such Objecting Lender). If, within
the period specified above, the Required Lenders shall not approve in writing
the extension of the Stated Termination Date requested in an Extension Request,
the Stated Termination Date shall not be extended pursuant to such Extension
Request. The Administrative Agent shall promptly notify (y) the Lenders and the
Borrower of any extension of the Stated Termination Date pursuant to this
Section 2.21 and (z) the Borrower of any Lender that becomes an Objecting
Lender.
(b) A Advances owing to any Objecting Lender on the Commitment
Expiration Date, together with accrued interest thereon, any amounts payable
pursuant to Sections 2.06, 2.07, 2.11, 2.12, 2.15 and 8.04(b) and any accrued
and unpaid facility fee or utilization fee or other amounts payable with respect
to such Lender shall be repaid in full on or before such Commitment Expiration
Date.
(c) The Borrower shall have the right, so long as no Event of Default
has occurred and is then continuing, upon giving notice to the Administrative
Agent and the Objecting Lenders in accordance with Section 2.10, to prepay in
full the A Advances of the Objecting Lenders, together with accrued interest
thereon, any amounts payable pursuant to Sections 2.06, 2.07, 2.11, 2.12, 2.15
and 8.04(b) and any accrued and unpaid facility fee or utilization fee or other
amounts payable to the Objecting Lenders hereunder and, upon giving not less
than three Business Days' notice to the Objecting Lenders and the Administrative
Agent, to cancel the whole or part of the Commitments of the Objecting Lenders.
(d) Notwithstanding the foregoing, if any Lender becomes an Objecting
Lender, the Borrower may, at its own expense and in the sole discretion and
prior to the then Stated Termination Date, require such Lender (and each related
Designated Bidder (as defined herein or in the Long-Term Revolving Credit
Agreement)) to transfer
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or assign, in whole or in part, without recourse (in accordance with Section
8.07), all or part of its interests, rights and obligations under this Agreement
and the Long-Term Revolving Credit Agreement to an Eligible Assignee (provided
that the Borrower, with the full cooperation of such Lender, can identify an
Eligible Assignee that is ready, willing and able to be an assignee with respect
thereto) which shall assume such assigned obligations (which assignee may be
another Lender, if such assignee Lender accepts such assignment); provided that
(A) the assignee or the Borrower, as the case may be, shall have paid to such
Lender in immediately available funds the principal of and interest accrued to
the date of such payment on the Advances made by it hereunder and the "Advances"
made by it under, and as defined in, the Long-Term Revolving Credit Agreement
and all other amounts owed to it hereunder and thereunder, including any amounts
owing pursuant to Section 8.04(b) (or the comparable provision of the Long-Term
Revolving Credit Agreement) and any amounts that would be owing under such
Section (or comparable provision) if such Advances and "Advances" (as so
defined) were prepaid on the date of such assignment, and (B) such assignment
does not conflict with any law, rule or regulation or order of any governmental
authority. Any assignee that becomes a Lender as a result of such an assignment
made pursuant to this paragraph (d) shall be deemed to have consented to the
applicable Extension Request and, therefore, shall not be an Objecting Lender.
SECTION 2.22. Replacement of Lenders. If any Lender requests
compensation under Sections 2.07, 2.11 or 2.12 or if the Borrower is required to
pay any additional amount to any Lender or any taxing authority or other
authority for the account of any Lender pursuant to Section 2.15, or if any
Lender suspends the right of the Borrower to elect Eurodollar Rate Advances from
such Lender pursuant to Section 2.13, or if any Lender defaults in its
obligation to fund Advances hereunder, then the Borrower may, at its sole
expense and effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance with
and
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subject to the restrictions contained in Section 8.07), all its interests,
rights and obligations under this Agreement (other than any outstanding B
Advances held by it) and the Long-Term Revolving Credit Agreement (other than "B
Advances" under, and as defined in, the Long-Term Revolving Credit Agreement) to
an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Borrower
shall have received the prior written consent of the Administrative Agent, which
consent shall not unreasonably be withheld, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Advances (other
than B Advances) hereunder and its "Advances" (other than "B Advances") (each as
defined in the Long-Term Revolving Credit Agreement), accrued interest thereon,
accrued fees, accrued costs in connection with compensation under Sections 2.07,
2.11 or 2.12 or payments required to be made pursuant to Section 2.15, if any,
and all other amounts payable to it hereunder and thereunder, from the assignee
(to the extent of such outstanding principal and accrued interest and fees) or
the Borrower (in the case of all other amounts) and (iii) in the case of any
such assignment resulting from a claim for compensation under Sections 2.07,
2.11 or 2.12 or payments required to be made pursuant to Section 2.15, such
assignment will result in a reduction in such compensation or payments. A Lender
shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to apply.
ARTICLE 3
CONDITIONS OF EFFECTIVENESS AND LENDING
SECTION 3.1. Conditions Precedent to Effectiveness of the Amendment and
Restatement of this Agreement. The amendment and restatement of this Agreement
as of
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the Effective Date shall become effective when (i) it shall have been executed
by the Borrower, the Administrative Agent and ▇▇▇▇▇▇, in its capacity as
Administrative Agent under this Agreement immediately prior to the effectiveness
of the amendment and restatement of this Agreement, (ii) the Administrative
Agent and the Borrower either shall have been notified by each Initial Lender
that such Initial Lender has executed it or shall have received a counterpart of
this Agreement executed by such Initial Lender, and (iii) the Administrative
Agent shall have received the following, each dated the date of delivery thereof
unless otherwise specified below (which date shall be selected by the Borrower
and be the same for all documents and all Lenders), in form and substance
satisfactory to the Administrative Agent and (except for the Notes) in
sufficient copies for each Lender:
(a) The Notes, to the order of the Lenders, respectively.
(b) Certified copies of the resolutions of the Board of Directors of
the Borrower approving the borrowings contemplated hereby and authorizing the
execution of this Agreement and the Notes, and of all documents evidencing other
necessary corporate action and governmental approvals, if any, with respect to
this Agreement and the Notes.
(c) A certificate of the Secretary or an Assistant Secretary of the
Borrower (i) certifying names and true signatures of officers of the Borrower
authorized to sign this Agreement and the Notes and the other documents to be
delivered hereunder and (ii) if the Effective Date is other than February 23,
1999, certifying that the representations and warranties contained in Section
4.01 are true and correct as of the Effective Date.
(d) A favorable opinion of the Borrower's Senior Vice President, Law,
in substantially the form of Exhibit H hereto.
(e) A favorable opinion of ▇▇▇▇▇, Day, ▇▇▇▇▇▇ & ▇▇▇▇▇, New York
counsel to the Borrower, in substantially the form of Exhibit I hereto.
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(f) Evidence satisfactory to the Administrative Agent of payment of
any loans outstanding under this Agreement immediately prior to the
effectiveness of such amendment and restatement, together with all accrued
interest and fees thereunder.
The Borrower and the Initial Lenders agree that upon the effectiveness of such
amendment and restatement the "Commitments" of the Initial Lenders shall be as
set forth on the signature pages hereof under the caption "Commitments" and the
Borrower and the Initial Lenders (for this purpose constituting the "Majority
Lenders" under this Agreement immediately prior to such effectiveness) further
agree that the Commitments of each Lender not continuing as an Initial Lender
upon such effectiveness shall terminate automatically upon the Effective Date
without further action by any party.
SECTION 3.2. Conditions Precedent to Each A Borrowing. The obligation
of each Lender to make an A Advance (including the initial A Advance) on the
occasion of any A Borrowing shall be subject to the further conditions precedent
that on or before the date of such A Borrowing this Agreement shall have become
effective pursuant to Section 3.01 and that on the date of such A Borrowing,
before and immediately after giving effect to such A Borrowing and to the
application of the proceeds therefrom, the following statements shall be true
and correct, and the giving by the Borrower of the applicable Notice of A
Borrowing and the acceptance by the Borrower of the proceeds of such A Borrowing
shall constitute its representation and warranty that on and as of the date of
such A Borrowing, before and immediately after giving effect thereto and to the
application of the proceeds therefrom, the following statements are true and
correct:
(a) Each representation and warranty contained in Section 4.01 is
correct in all material respects as though made on and as of such date (or, if
such representation and warranty is stated to be made as at a specific date or
for a specific period, as at the
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original specified date or with respect to the original specified period);
(b) No event has occurred and is continuing, or would result from such
A Borrowing, which constitutes an Event of Default or would constitute an Event
of Default but for the requirement that notice be given or time elapse or both;
and
(c) The aggregate amount of the borrowings under this Agreement
(including such A Borrowing) and under other agreements or facilities or
evidenced by other instruments or documents is not in excess of the aggregate
amount of such borrowings approved as of such date by the Board of Directors of
the Borrower.
SECTION 3.3. Conditions Precedent to Each B Borrowing. The obligation
of each Lender which is to make a B Advance on the occasion of any B Borrowing
(including the initial B Borrowing) shall be subject to the further conditions
precedent that (i) at or before the time required by paragraph (iii) of Section
2.19(a), the Administrative Agent shall have received the written confirmatory
notice of such B Borrowing contemplated by such paragraph, (ii) on or before the
date of such B Borrowing this Agreement shall have become effective pursuant to
Section 3.01, and (iii) on the date of such B Borrowing, before and immediately
after giving effect to such B Borrowing and to the application of the proceeds
therefrom, the following statements shall be true and correct, and the giving by
the Borrower of the applicable Notice of B Borrowing and the acceptance by the
Borrower of the proceeds of such B Borrowing shall constitute its representation
and warranty that on and as of the date of such B Borrowing, before and
immediately after giving effect thereto and to the application of the proceeds
therefrom, the following statements are true and correct:
(a) Each representation and warranty contained in Section 4.01 is
correct in all material respects as though made on and as of such date (or, if
such representation and warranty is stated to be made as at a specific date or
for a specific period, as at the original specified date or with respect to the
original specified period);
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(b) No event has occurred and is continuing, or would result from such
B Borrowing, which constitutes an Event of Default or would constitute an Event
of Default but for the requirement that notice be given or time elapse or both;
and
(c) The aggregate amount of the borrowings under this Agreement
(including such B Borrowing) and under other agreements or facilities or
evidenced by other instruments or documents is not in excess of the aggregate
amount of such borrowings approved as of such date by the Board of Directors of
the Borrower.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES
SECTION 4.1. Representations and Warranties of the Borrower. The
Borrower represents and warrants as follows:
(a) The Borrower is a corporation duly incorporated, validly existing
and in good standing under the laws of the State of Delaware. Each Material
Subsidiary is duly incorporated, validly existing and in good standing in the
jurisdiction of its incorporation. The Borrower and each Material Subsidiary
possess all corporate powers and all other authorizations and licenses necessary
to engage in its business and operations as now conducted, the failure to obtain
or maintain which would have a Material Adverse Effect. Each Subsidiary which
is, on and as of the Effective Date, a Material Subsidiary is listed on Schedule
I hereto.
(b) The execution, delivery and performance by the Borrower of this
Agreement and the Notes are within the Borrower's corporate powers, have been
duly authorized by all necessary corporate action, and do not contravene (i) the
Borrower's certificate of incorporation or by-laws or (ii) law or any
contractual restriction binding on or affecting the Borrower.
(c) No authorization or approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body is required for
the due
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execution, delivery and performance by the Borrower of this Agreement or the
Notes which has not been duly made or obtained, except those (i) required in the
ordinary course to comply with ongoing covenant obligations of the Borrower
hereunder the performance of which is not yet due and (ii) that will, in the
ordinary course of business in accordance with this Agreement, be duly made or
obtained on or prior to the time or times the performance of such obligations
shall be due.
(d) This Agreement constitutes, and the Notes when delivered hereunder
shall constitute, legal, valid and binding obligations of the Borrower
enforceable against the Borrower in accordance with their respective terms,
except as may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors rights generally or by
general principles of equity.
(e) The consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as at December 31, 1997 and the related consolidated
statements of income and cash flow for the fiscal year then ended, reported on
by PricewaterhouseCoopers LLC, independent public accountants, and the
consolidated balance sheet of the Borrower and its consolidated subsidiaries as
at September 30, 1998 and the related consolidated statements of income and cash
flow for the nine-month period then ended, certified by the chief financial
officer of the Borrower, copies of each of which have been furnished to the
Administrative Agent and the Initial Lenders, fairly present the consolidated
financial condition of the Borrower and such Subsidiaries as at December 31,
1997, and September 30, 1998, respectively, and the consolidated results of
their operations for such fiscal periods, subject in the case of the September
30, 1998, statements to normal year-end adjustments, all in accordance with
generally accepted accounting principles consistently applied. From September
30, 1998 to and including the Effective Date there has been no material adverse
change in such condition or results of operations.
(f) As at the Effective Date, there is no action, suit or proceeding
pending, or to the knowledge of the
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Borrower threatened, against or involving the Borrower or any Material
Subsidiary in any court, or before any arbitrator of any kind, or before or by
any governmental body, which in the reasonable judgment of the Borrower (taking
into account the exhaustion of all appeals) would have a material adverse effect
on the consolidated financial condition of the Borrower and its consolidated
Subsidiaries taken as a whole, or which purports to affect the legality,
validity, binding effect or enforceability of this Agreement or the Notes.
(g) The Borrower and each consolidated Subsidiary have duly filed all
tax returns required to be filed, and duly paid and discharged all taxes,
assessments and governmental charges upon it or against its properties now due
and payable, the failure to file or pay which, as applicable, would have a
Material Adverse Effect, unless and to the extent only that the same are being
contested in good faith and by appropriate proceedings by the Borrower or the
appropriate Subsidiary.
(h) Except to the extent permitted pursuant to Section 5.02(e),
neither the Borrower nor any Material Subsidiary is subject to any contractual
restrictions which limit the amount of dividends payable by any Subsidiary.
(i) No Termination Event has occurred or is reasonably expected to
occur with respect to any Plan which, with the giving of notice or lapse of
time, or both, would constitute an Event of Default under Section 6.01(g).
(j) Neither the Borrower nor any ERISA Affiliate has incurred, or is
reasonably expected to incur, any Withdrawal Liability to any Multiemployer Plan
that, when aggregated with all other amounts required to be paid to
Multiemployer Plans in connection with Withdrawal Liability (as of the date of
determination), exceeds 5% of the Consolidated Tangible Net Worth of the
Borrower.
(k) Neither the Borrower nor any ERISA Affiliate has received any
notification that any Multiemployer Plan is in reorganization or has been
terminated, within the meaning of Title IV of ERISA, and no
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Multiemployer Plan is reasonably expected to be in reorganization or to be
terminated within the meaning of Title IV of ERISA the effect of which
reorganization or termination would be the occurrence of an Event of Default
under Section 6.01(i).
(l) The Borrower 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.
(m) The Borrower is not a "holding company" or a "subsidiary company"
of a "holding company", or an "affiliate" of a "holding company" or of a
"subsidiary company" of a "holding company", or a "public utility" within the
meaning of the Public Utility Holding Company Act of 1935, as amended.
(n) Any reprogramming required to permit the proper functioning, in and
following the year 2000, of (i) the computer systems of the Borrower and its
Subsidiaries and (ii) equipment containing embedded microchips (including
systems and equipment supplied by others or with which the Borrower's systems
interface) and the testing of all such systems and equipment, as so
reprogrammed, will be completed by June 30, 1999, except any such reprogramming
or testing of systems or equipment where the failure to so complete would not
reasonably be expected to have a Material Adverse Effect. The cost to the
Borrower and its Subsidiaries of such reprogramming and testing and of the
reasonably foreseeable consequences of year 2000 to the Borrower and its
Subsidiaries (including reprogramming errors and the failure of others' systems
or equipment) will not result in an Event of Default or constitute an Event of
Default but for the requirement that notice be given or time elapse or both and
would not reasonably be expected to have a Material Adverse Effect. Except for
such of the reprogramming referred to in the preceding sentence as may be
necessary, the computer and management information systems of the Borrower and
its Subsidiaries are reasonably expected to be and, with ordinary course
upgrading and maintenance, are reasonably expected to continue for the term of
this Agreement to be, sufficient to permit the Borrower to conduct its
businesses without Material Adverse Effect.
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All representations and warranties made by the Borrower herein or made in any
certificate delivered pursuant hereto shall survive the making of the Advances
and the execution and delivery to the Lenders of this Agreement and the Notes.
ARTICLE 5
COVENANTS OF THE BORROWER
SECTION 5.1. Affirmative Covenants. So long as any Note or other amount
payable by the Borrower hereunder shall remain unpaid or any Lender shall have
any Commitment hereunder, the Borrower will, unless the Majority Lenders shall
otherwise consent in writing:
(a) PRESERVATION OF CORPORATE EXISTENCE, ETC. Preserve and maintain,
and cause each Material Subsidiary to preserve and maintain, its corporate
existence, rights (charter and statutory) and material franchises, except as
otherwise permitted by Section 5.02(c) or 5.02(d).
(b) COMPLIANCE WITH LAWS, ETC. Comply, and cause each Subsidiary to
comply, in all material respects, with all applicable laws, rules, regulations
and orders (including all environmental laws and laws requiring payment of all
taxes, assessments and governmental charges imposed upon it or upon its property
except to the extent contested in good faith by appropriate proceedings) the
failure to comply with which would have a Material Adverse Effect.
(c) VISITATION RIGHTS. At such reasonable times and intervals as the
Administrative Agent or any of the Lenders (other than Designated Bidders) may
desire, permit the Administrative Agent or any of the Lenders (other than
Designated Bidders) to visit the Borrower and to discuss the affairs, finances,
accounts and mineral reserve performance of the Borrower and any of its
Subsidiaries with officers of the Borrower and independent certified public
accountants of the Borrower and any of its Subsidiaries, provided that if an
Event of Default, or an event which with the giving
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of notice or the passage of time, or both, would become an Event of Default, has
occurred and is continuing, the Administrative Agent or any Lender may, in
addition to the other provisions of this subsection (c) and at such reasonable
times and intervals as the Administrative Agent or any of the Lenders may
desire, visit and inspect, under guidance of officers of the Borrower, any
properties significant to the consolidated operations of the Borrower and its
Subsidiaries, and to examine the books and records of account (other than with
respect to any mineral reserve information that the Borrower determines to be
confidential) of the Borrower and any of its Subsidiaries and to discuss the
affairs, finances and accounts of any of the Borrower's Subsidiaries with any of
the officers of such Subsidiary.
(d) BOOKS AND RECORDS. Keep, and cause each of its Subsidiaries to
keep, proper books of record and account, in which full and correct entries
shall be made of all financial transactions and the assets and business of the
Borrower and each Subsidiary in accordance with generally accepted accounting
principles either (i) consistently applied or (ii) applied in a changed manner
that does not, under generally accepted accounting principles or public
reporting requirements applicable to the Borrower, either require disclosure in
the consolidated financial statements of the Borrower and its consolidated
Subsidiaries or require the consent of the accountants which (as required by
Section 5.03(b)) report on such financial statements for the fiscal year in
which such change shall have occurred, or (iii) applied in a changed manner not
covered by clause (ii) above provided such change shall have been disclosed to
the Administrative Agent and shall have been consented to by the accountants
which (as required by Section 5.03(b)) report on the consolidated financial
statements of the Borrower and its consolidated Subsidiaries for the fiscal year
in which such change shall have occurred, provided that if any change referred
to in clause (ii) or (iii) above would not meet the standard set forth in clause
(i) or (ii) of Section 1.03, the Administrative Agent, the Lenders and
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the Borrower agree to amend the covenants contained in Section 5.01 and 5.02 so
that the relative protection afforded thereby to the Lenders and the relative
flexibility afforded thereby to the Borrower will in substance be retained after
such amendment, provided, however, that until such amendment becomes effective
hereunder, the covenants as set forth herein shall remain in full force and
effect and those accounting principles applicable to the Borrower and its
consolidated Subsidiaries which do meet the standards set forth in clause (i) or
(ii) of Section 1.03 shall be applied to determine whether or not the Borrower
is in compliance with such covenants.
(e) MAINTENANCE OF PROPERTIES, ETC. Maintain and preserve, and cause
each Material Subsidiary to maintain and preserve, all of its properties which
are used in the conduct of its business in good working order and condition,
ordinary wear and tear excepted, to the extent that any failure to do so would
have a Material Adverse Effect.
(f) MAINTENANCE OF INSURANCE. Maintain, and cause each Material
Subsidiary to maintain, insurance with responsible and reputable insurance
companies or associations in such amounts and covering such risks as is usually
carried by companies engaged in similar businesses and owning similar properties
in the same general areas in which the Borrower or such Subsidiary operates.
SECTION 5.2. Negative Covenants. So long as any Note or other amount
payable by the Borrower hereunder shall remain unpaid or any Lender shall have
any Commitment hereunder, the Borrower will not, unless the Majority Lenders
shall otherwise consent in writing:
(a) LIENS, ETC. (i) Create, assume or suffer to exist, or permit any
Material Subsidiary to create, assume or suffer to exist, any Liens upon or with
respect to any of the Equity Interests in any Material Subsidiary, whether now
owned or hereafter acquired, or (ii) create or assume, or permit any Material
Subsidiary to create or assume, any Liens upon or with respect to any other
assets material to the consolidated operations of the Borrower and its
consolidated Subsidiaries taken as a whole securing the
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payment of Debt and Guaranties in an aggregate amount (determined without
duplication of amount (so that the amount of a Guaranty will be excluded to the
extent the Debt Guaranteed thereby is included in computing such aggregate
amount)) exceeding the greater of (x) $250,000,000 and (y) 10% of Consolidated
Tangible Net Worth as at the date of such creation or assumption; provided,
however, that this subsection (a) shall not apply to:
(A) Liens on assets acquired by the Borrower or any
of its Subsidiaries after the Original Effective Date to the
extent that such Liens existed at the time of such acquisition
and were not placed thereon by or with the consent of the
Borrower in contemplation of such acquisition;
(B) Liens on Equity Interests acquired after the
Original Effective Date in a Business Entity which has become
or becomes a Subsidiary of the Borrower, or on assets of any
such Business Entity, to the extent that such Liens existed at
the time of such acquisition and were not placed thereon by or
with the consent of the Borrower in contemplation of such
acquisition;
(C) Liens on Margin Stock;
(D) Liens on the Equity Interests in, or Debt or
other obligations of, or assets of, any Project Financing
Subsidiary (or any Equity Interests in, Debt or other
obligations of any Business Entity which are owned by any
Project Financing Subsidiary) securing the payment of a
Project Financing and related obligations;
(E) Permitted Liens;
(F) Liens arising out of the refinancing, extension,
renewal or refunding of any Debt or Guaranty secured by any
Lien permitted by any of the foregoing clauses of this
Section, provided that the principal amount of such Debt or
Guaranty is not
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increased (except by the amount of costs reasonably incurred
in connection with the issuance thereof) and such Debt or
Guaranty is not secured by any additional assets that would
not have been permitted by this Section to secure the Debt or
Guaranty refinanced, extended, renewed or refunded; and
(G) Liens on products and proceeds (including
dividend, interest and like payments on, and insurance and
condemnation proceeds and rental, lease, licensing and similar
proceeds) of, and property evidencing or embodying, or
constituting rights or other general intangibles relating to,
and accessions and improvements to, collateral subject to
Liens permitted by this Section 5.02.
(b) DEBT, ETC. Create, assume or suffer to exist, or permit any of its
consolidated Subsidiaries to create, assume or suffer to exist, any Debt or any
Guaranty unless, immediately after giving effect to such Debt or Guaranty and
the receipt and application of any proceeds thereof or value received in
connection therewith,
(1) the sum (without duplication) of (i)
consolidated Debt of the Borrower and its consolidated
Subsidiaries plus (ii) the aggregate amount (determined on a
consolidated basis) of Guaranties by the Borrower and its
consolidated Subsidiaries is less than 60% of Capitalization,
provided that Debt for borrowed money either maturing within
one year and evidenced by instruments commonly known as
commercial paper, or evidenced by variable demand notes or
other similar short-term financing instruments issued to
commercial banks and trust companies (other than Debt incurred
pursuant to this Agreement or the Long-Term Revolving Credit
Agreement or any replacement therefor), shall not exceed the
aggregate of the Borrower's unused bank lines of credit and
unused credit available to the Borrower
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under financing arrangements with banks or other financial
institutions; and
(2) with respect to any such Debt created or assumed
by a consolidated Subsidiary that is either a Subsidiary of
the Borrower as of the Original Effective Date or a Subsidiary
of the Borrower acquired or created after the Original
Effective Date and owning a material portion of the
consolidated operating assets existing at the Original
Effective Date of the Borrower and its Subsidiaries, the
aggregate amount of Debt of the consolidated Subsidiaries of
the Borrower referred to above in this paragraph (2) owing to
Persons other than the Borrower and its consolidated
Subsidiaries is less than the greater of (i) $500,000,000
(exclusive of public Debt of LL&E existing at the time LL&E
became a Subsidiary, the principal amount of which at such
time was approximately $400,000,000, and any refinancing of
such Debt, in a principal amount not to exceed the principal
amount refinanced) and (ii) 30% of Consolidated Tangible Net
Worth as at the date of incurrence or creation of such Debt.
(c) SALE, ETC. OF ASSETS. Sell, lease or otherwise transfer, or permit
any Material Subsidiary to sell, lease or otherwise transfer (in either case,
whether in one transaction or in a series of transactions, and except, in either
case, to the Borrower or an entity which after giving effect to such transfer
will be or become a Material Subsidiary in which the Borrower's direct or
indirect Equity Interests will be at least as great as its direct or indirect
Equity Interests in the transferor immediately prior thereto, and except as
permitted by Section 5.02(d)), assets constituting all or substantially all of
the consolidated assets of the Borrower and its Material Subsidiaries, provided
that, notwithstanding the foregoing, the Borrower or any Material Subsidiary may
sell, lease or otherwise transfer any Permitted Assets constituting all or
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substantially all of the consolidated assets of the Borrower and its Material
Subsidiaries, so long as (A) such Permitted Assets are sold, leased or otherwise
transferred in exchange for other Permitted Assets and/or (B) the proceeds from
such sale, lease or other transfer, or an amount equal to the proceeds thereof,
are (x) reinvested within one year in Permitted Assets and/or the development of
Permitted Assets and/or (y) used to repay Debt the proceeds of which were or are
being used for investment in, and/or the development of, Permitted Assets;
provided further that, no such sale, lease or other transfer shall be permitted
by the foregoing proviso unless either (1) after giving effect to such sale,
lease or other transfer, no Event of Default, and no event which with lapse of
time or the giving of notice, or both, would constitute an Event of Default,
shall have occurred and be continuing or (2) the Borrower or the relevant
Material Subsidiary, as the case may be, was contractually obligated, prior to
the occurrence of such Event of Default or event, to consummate such sale, lease
or other transfer.
(d) MERGERS, ETC. Merge or consolidate with any Person, or permit any
of its Material Subsidiaries to merge or consolidate with any Person, except
that (i) such a Subsidiary may merge or consolidate with (or liquidate into) any
other Subsidiary or may merge or consolidate with (or liquidate into) the
Borrower, provided that (A) if such Material Subsidiary merges or consolidates
with (or liquidates into) the Borrower, the Borrower shall be the continuing or
surviving corporation, (B) if any such Material Subsidiary merges or
consolidates with (or liquidates into) any other Subsidiary of the Borrower, one
of such Subsidiaries is the surviving corporation and, if either such Subsidiary
is not wholly-owned by the Borrower, such merger or consolidation is on an arm's
length basis and (C) as a result of such merger or consolidation, no Event of
Default, and no event which with lapse of time or the giving of notice, or both,
would constitute an Event of Default, shall have occurred and be continuing, and
(ii) the Borrower or any Material Subsidiary may merge or consolidate with any
other
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corporation (that is, in addition to the Borrower or any Subsidiary of the
Borrower), provided that (A) if the Borrower merges or consolidates with any
such other corporation, the Borrower is the surviving corporation, (B) if any
Material Subsidiary merges or consolidates with any such other corporation, the
surviving corporation is a wholly-owned Material Subsidiary of the Borrower, and
(C) if either the Borrower or any Material Subsidiary merges or consolidates
with any such other corporation, after giving effect to such merger or
consolidation no Event of Default, and no event which with lapse of time or the
giving of notice, or both, would constitute an Event of Default, shall have
occurred and be continuing.
(e) DIVIDEND RESTRICTIONS. Create, or consent or agree to, or permit
any of its Material Subsidiaries existing on the Original Effective Date or any
of its Subsidiaries thereafter created or acquired and owning a material portion
of the consolidated operating assets existing at the Original Effective Date of
the Borrower and its Subsidiaries, to create, or consent or agree to, any
restrictions, contained in any agreement or instrument relating to or evidencing
Debt, on any such Subsidiary's ability to pay dividends or to make advances to
the Borrower or any Subsidiary of the Borrower; provided, however, that this
subsection (e) shall not apply to any such restrictions (including any
extensions of the term of any thereof (by amendment, or continuation thereof in
any refinancing of the Debt to which such restriction relates, or otherwise))
applicable to the Equity Interests in any Subsidiary of the Borrower the Equity
Interests in which are acquired by the Borrower after the Original Effective
Date and which restrictions are existing at the time such Subsidiary first
becomes a Subsidiary of the Borrower and are not placed thereon by or with the
consent of the Borrower in contemplation of such acquisition by the Borrower.
SECTION 5.3. Reporting Requirements. So long as any Note shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will
furnish to each Lender in such reasonable quantities as shall from time to time
be requested by such Lender:
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(a) within 60 days after the end of each of the first three quarters
of each fiscal year of the Borrower, a consolidated balance sheet of the
Borrower and its consolidated Subsidiaries as of the end of such quarter, and
consolidated statements of income and cash flow of the Borrower and its
consolidated Subsidiaries each for the period commencing at the end of the
previous fiscal year and ending with the end of such quarter, certified (subject
to normal year-end adjustments) as to fairness and utilization of generally
accepted accounting principles by the chief financial officer of the Borrower
and accompanied by a certificate of such officer stating (i) that such
statements of income and cash flow and such balance sheet have been prepared in
accordance with generally accepted accounting principles, (ii) whether or not
such officer has knowledge of the occurrence of any Event of Default which is
continuing hereunder or of any event not theretofore remedied which with notice
or lapse of time or both would constitute such an Event of Default and, if so,
stating in reasonable detail the facts with respect thereto, (iii) all relevant
facts in reasonable detail to evidence, and the computations as to, whether or
not the Borrower is in compliance with the requirements set forth in subsection
(b) of Section 5.02, and (iv) a listing of all Material Subsidiaries and
consolidated Subsidiaries of the Borrower showing the extent of its direct and
indirect holdings of their Equity Interests;
(b) within 120 days after the end of each fiscal year of the Borrower,
a copy of the annual report for such year for the Borrower and its consolidated
Subsidiaries containing financial statements for such year reported on by
nationally recognized independent public accountants acceptable to the Lenders,
accompanied by (i) a report signed by said accountants stating that such
financial statements have been prepared in accordance with generally accepted
accounting principles and (ii) a letter from such accountants stating that in
making the investigations necessary for such report they obtained no knowledge,
except as specifically stated therein, of any Event of Default which is
continuing hereunder or of any event
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not theretofore remedied which with notice or lapse of time or both would
constitute such an Event of Default;
(c) within 120 days after the close of each of the Borrower's fiscal
years, a certificate of the chief financial officer of the Borrower stating (i)
whether or not such officer has knowledge of the occurrence of any Event of
Default which is continuing hereunder or of any event not theretofore remedied
which with notice or lapse of time or both would constitute such an Event of
Default and, if so, stating in reasonable detail the facts with respect thereto,
(ii) all relevant facts in reasonable detail to evidence, and the computations
as to, whether or not the Borrower is in compliance with the requirements set
forth in subsection (b) of Section 5.02 and (iii) a listing of all Material
Subsidiaries and consolidated Subsidiaries of the Borrower showing the extent of
its direct and indirect holdings of their Equity Interests;
(d) promptly upon their distribution, copies of all financial
statements, reports and proxy statements which the Borrower or any Material
Subsidiary shall have sent to its public Equity Interest holders;
(e) promptly upon their becoming publicly available, all regular and
periodic financial reports and registration statements which the Borrower or any
Material Subsidiary shall file with the Securities and Exchange Commission or
any national securities exchange other than registration statements relating to
employee benefit plans and to registration statements of securities for selling
security holders;
(f) promptly in writing, notice of all litigation and of all
proceedings before any governmental or regulatory agencies against or involving
the Borrower or any Material Subsidiary, except any litigation or proceeding
which in the reasonable judgment of the Borrower (taking into account the
exhaustion of all appeals) is not likely to have a material adverse effect on
the consolidated financial condition of the Borrower and its consolidated
Subsidiaries taken as a whole;
(g) within three Business Days after an executive officer of the
Borrower obtains knowledge of the occurrence of any Event of Default which is
continuing
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or of any event not theretofore remedied which with notice or lapse of time, or
both, would constitute an Event of Default, notice of such occurrence together
with a detailed statement by a responsible officer of the Borrower of the steps
being taken by the Borrower or the appropriate Subsidiary to cure the effect of
such event;
(h) as soon as practicable and in any event (i) within 30 days after
the Borrower or any ERISA Affiliate knows or has reason to know that any
Termination Event described in clause (i) of the definition of Termination Event
with respect to any Plan has occurred and (ii) within 10 days after the Borrower
or any ERISA Affiliate knows or has reason to know that any other Termination
Event with respect to any Plan has occurred, a statement of the chief financial
officer of the Borrower describing such Termination Event and the action, if
any, which the Borrower or such ERISA Affiliate proposes to take with respect
thereto;
(i) promptly and in any event within two Business Days after receipt
thereof by the Borrower or any ERISA Affiliate, copies of each notice received
by the Borrower or any ERISA Affiliate from the PBGC stating its intention to
terminate any Plan or to have a trustee appointed to administer any Plan;
(j) promptly and in any event within 30 days after the filing thereof
with the Internal Revenue Service, copies of each Schedule B (Actuarial
Information) to the annual report (Form 5500 Series) with respect to each Plan;
(k) promptly and in any event within five Business Days after receipt
thereof by the Borrower or any ERISA Affiliate from the sponsor of a
Multiemployer Plan, a copy of each notice received by the Borrower or any ERISA
Affiliate concerning (i) the imposition of Withdrawal Liability by a
Multiemployer Plan, (ii) the determination that a Multiemployer Plan is, or is
expected to be, in reorganization within the meaning of Title IV of ERISA, (iii)
the termination of a Multiemployer Plan within the meaning of Title IV of ERISA,
or (iv) the amount of liability incurred, or expected to be incurred, by the
Borrower or any ERISA
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Affiliate in connection with any event described in clause (i), (ii) or (iii)
above; and
(l) as soon as practicable but in any event within 60 days of any
notice of request therefor, such other information respecting the financial
condition and results of operations of the Borrower or any Subsidiary as any
Lender through the Administrative Agent may from time to time reasonably
request.
Each balance sheet and other financial statement furnished pursuant to
subsections (a) and (b) of this Section 5.03 shall contain comparative
information which conforms to the presentation required in Form 10-Q and Form
10-K, as appropriate, under the Securities Exchange Act of 1934, as amended.
ARTICLE 6
EVENTS OF DEFAULT
SECTION 6.1. Events of Default. If any of the following events
("EVENTS OF DEFAULT") shall occur and be continuing:
(a) The Borrower shall fail to pay any principal of any Note within
two Business Days after the same shall be due, or any interest on any Note or
any other amount payable hereunder within five Business Days after the same
shall be due; or
(b) Any representation or warranty made or deemed made by the Borrower
herein or by the Borrower (or any of its officers) in connection with this
Agreement shall prove to have been incorrect in any material respect when made
or deemed made; or
(c) The Borrower shall fail to perform or observe any other term,
covenant or agreement contained in this Agreement on its part to be performed or
observed and any such failure shall remain unremedied for 30 days after written
notice thereof shall have been given to the Borrower by the Administrative Agent
or by any Lender with a copy to the Administrative Agent; or
(d) The Borrower or any Material Subsidiary shall fail to pay any Debt
or Guaranty (excluding Debt
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evidenced by the Notes) of the Borrower or such Subsidiary (as the case may be)
in an aggregate principal amount in excess of the greater of (i) $100,000,000
and (ii) 3% of Consolidated Tangible Net Worth at such time, or any installment
of principal thereof or interest or premium thereon, when due (whether by
scheduled maturity, required prepayment, acceleration, demand or otherwise) and
such failure shall continue after the applicable grace period, if any, specified
in the agreement or instrument relating to such Debt or Guaranty; or any other
default under any agreement or instrument relating to any such Debt, or any
other event, shall occur and shall continue after the applicable grace period,
if any, specified in such agreement or instrument, if the effect of such default
or event is to accelerate the maturity of such Debt; provided that,
notwithstanding any provision contained in this subsection (d) to the contrary,
to the extent that pursuant to the terms of any agreement or instrument relating
to any Debt referred to in this subsection (d), any sale, pledge or disposal of
Margin Stock, or utilization of the proceeds thereof would result in a breach of
any covenant contained therein or otherwise give rise to a default or event of
default thereunder and/or acceleration of the maturity of the Debt extended
pursuant thereto and as a result of such terms or of such sale, pledge,
disposal, utilization, breach, default, event of default or acceleration, or the
provisions hereof relating thereto, this Agreement or any Advance hereunder
would otherwise be subject to the margin requirements or any other restriction
under Regulation U issued by the Board of Governors of the Federal Reserve
System, then such breach, default, event of default or acceleration shall not
constitute a default or Event of Default under this subsection (d); or
(e) (i) The Borrower or any Material Subsidiary shall (A) generally
not pay its debts as such debts become due; or (B) admit in writing its
inability to pay its debts generally; or (C) make a general assignment for the
benefit of creditors; or (ii) any proceeding shall be instituted or consented to
by the Borrower or any such Subsidiary seeking to adjudicate
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it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, or other similar official for it or for any substantial part
of its property; or (iii) any such proceeding shall have been instituted against
the Borrower or any such Subsidiary and either such proceeding shall not be
stayed or dismissed for 60 consecutive days or any of the actions referred to
above sought in such proceeding (including the entry of an order for relief
against it or the appointment of a receiver, trustee, custodian or other similar
official for it or any substantial part of its property) shall occur; or (iv)
the Borrower or any such Subsidiary shall take any corporate action to authorize
any of the actions set forth above in this subsection (e); or
(f) Any judgment or order for the payment of money in excess the
greater of (i) $100,000,000 and (ii) 3% of Consolidated Tangible Net Worth at
such time shall be rendered against the Borrower or any Material Subsidiary and
either (i) enforcement proceedings shall have been commenced and are continuing
or have been completed by any creditor upon such judgment or order (other than
any enforcement proceedings consisting of the mere obtaining and filing of a
judgment lien or obtaining of a garnishment or similar order so long as no
foreclosure, levy or similar process in respect of such lien, or payment over in
respect of such garnishment or similar order, has commenced and is continuing or
has been completed) or (ii) there shall be any period of 30 consecutive days
during which a stay of execution or enforcement proceedings (other than those
referred to in the parenthesis in clause (i) above) in respect of such judgment
or order, by reason of a pending appeal, bonding or otherwise, shall not be in
effect; or
(g) Any Termination Event with respect to a Material Plan shall have
occurred and, 30 days after notice thereof shall have been given to the Borrower
by the Lender, (i) such Termination Event shall still
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exist and (ii) the sum (determined as of the date of occurrence of such
Termination Event) of the Insufficiency of such Plan and the Insufficiency of
any and all other Plans with respect to which a Termination Event shall have
occurred and then exist (or in the case of a Plan with respect to which a
Termination Event described in clause (ii) of the definition of Termination
Event shall have occurred and then exist, the liability related thereto), in
each case in respect of which the Borrower or any ERISA Affiliate has liability,
is equal to or greater than $50,000,000; or
(h) The Borrower or any ERISA Affiliate shall have been notified by
the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to
such Multiemployer Plan in an amount which, when aggregated with all other
amounts required to be paid to Multiemployer Plans in connection with Withdrawal
Liabilities (determined as of the date of such notification), exceeds
$50,000,000; or
(i) The Borrower or any ERISA Affiliate shall have been notified by
the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
reorganization or is being terminated, within the meaning of Title IV of ERISA,
if as a result of such reorganization or termination the aggregate annual
contributions of the Borrower and its ERISA Affiliates to all Multiemployer
Plans which are then in reorganization or being terminated have been or will be
increased over the amounts contributed to such Multiemployer Plans for the
respective plan years which include the Original Effective Date by an amount
exceeding $50,000,000; or
(j) Upon completion of, and pursuant to, a transaction, or a series of
transactions (which may include prior acquisitions of capital stock of the
Borrower in the open market or otherwise), involving a tender offer (i) a
"person" (within the meaning of Section 13(d) of the Securities Exchange Act of
1934) other than the Borrower, a Subsidiary of the Borrower or any employee
benefit plan maintained for employees of the Borrower and/or any of its
Subsidiaries or the trustee therefor, shall have acquired direct or indirect
ownership of and paid for in excess of 50% of the outstanding capital stock of
the Borrower entitled
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to vote in elections for directors of the Borrower and (ii) at any time before
the later of (x) six months after the completion of such tender offer and (y)
the next annual meeting of the shareholders of the Borrower following the
completion of such tender offer more than half of the directors of the Borrower
consists of individuals who (a) were not directors before the completion of such
tender offer and (b) were not appointed, elected or nominated by the Board of
Directors in office prior to the completion of such tender offer (other than any
such appointment, election or nomination required or agreed to in connection
with, or as a result of, the completion of such tender offer); or
(k) Any "Event of Default" as defined in the Long-Term Revolving
Credit Agreement shall occur and be continuing;
then, and in any such event, the Administrative Agent shall at the request, or
may with the consent, of the Majority Lenders, by notice to the Borrower, (i)
declare the obligation of each Lender to make Advances to be terminated,
whereupon the same shall forthwith terminate, and (ii) declare the Notes, all
interest thereon and all other amounts payable under this Agreement to be
forthwith due and payable, whereupon the Notes, all such interest and all such
amounts shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrower; provided, however, that if an Event of Default under
subsection (e) of this Section 6.01 (except under clause (i)(A) thereof) shall
occur, (A) the obligation of each Lender to make Advances shall automatically be
terminated and (B) the Notes, all interest thereon and all other amounts payable
under this Agreement shall automatically become and be forthwith due and
payable, without presentment, demand, protest or any notice of any kind, all of
which are hereby expressly waived by the Borrower.
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ARTICLE 7
THE ADMINISTRATIVE AGENT
SECTION 7.1. Authorization and Action. Each Lender hereby appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement as are delegated to the
Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. As to any matters not expressly provided for by
this Agreement (including enforcement of this Agreement or collection of the
Notes), the Administrative Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from
acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Majority Lenders, and such instructions shall be
binding upon all Lenders and all holders of Notes; provided, however, that the
Administrative Agent shall not be required to take any action which exposes the
Administrative Agent to personal liability or which is contrary to this
Agreement or applicable law. The Administrative Agent agrees to give to each
Lender prompt notice of each notice given to it by the Borrower pursuant to the
terms of this Agreement.
SECTION 7.2. Administrative Agent's Reliance, Etc.. Neither the
Administrative Agent nor any of its directors, officers, agents or employees
shall be liable for any action taken or omitted to be taken by it or them under
or in connection with this Agreement, except for its or their own gross
negligence or willful misconduct. Without limitation of the generality of the
foregoing, the Administrative Agent: (i) may treat the payee of any Note as the
holder thereof until the Administrative Agent receives and accepts an Assignment
and Acceptance entered into by the Lender which is the payee of such Note, as
assignor, and an Eligible Assignee, as assignee, as provided in Section 8.07;
(ii) may consult with legal counsel (including counsel for the Borrower),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good
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faith by it in accordance with the advice of such counsel, accountants or
experts; (iii) makes no warranty or representation to any Lender and shall not
be responsible to any Lender for any statements, warranties or representations
(whether written or oral) made in or in connection with this Agreement; (iv)
shall not have any duty to ascertain or to inquire as to the performance or
observance of any of the terms, covenants or conditions of this Agreement on the
part of the Borrower or to inspect the property (including the books and
records) of the Borrower; (v) shall not be responsible to any Lender for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value
of this Agreement or any other instrument or document furnished pursuant hereto;
and (vi) shall incur no liability under or in respect of this Agreement by
acting upon any notice, consent, certificate or other instrument or writing
(which may be by telegram, telecopy, cable or telex) believed by it to be
genuine and signed or sent by the proper party or parties.
SECTION 7.3. Chase and Affiliates. With respect to its Commitments, the
Advances made by it and the Notes issued to it, Chase shall have the same rights
and powers under this Agreement as any other Lender and may exercise the same as
though it were not the Administrative Agent; and the term "Lender" or "Lenders"
shall, unless otherwise expressly indicated, include Chase in its individual
capacity. Chase and its affiliates may accept deposits from, lend money to, act
as trustee under indentures of, and generally engage in any kind of business
with, the Borrower, any of its Subsidiaries and any Person who may do business
with or own securities of the Borrower or any Subsidiary, all as if Chase were
not the Administrative Agent and without any duty to account therefor to the
other Lenders.
SECTION 7.4. Lender Credit Decision. Each Lender acknowledges that it
has, independently and without reliance upon the Administrative Agent or any
other Lender and based on the financial statements referred to in Section 4.01
and such other documents and
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information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.
SECTION 7.5. Indemnification. THE LENDERS (OTHER THAN THE DESIGNATED
BIDDERS) AGREE TO INDEMNIFY THE ADMINISTRATIVE AGENT (TO THE EXTENT NOT
REIMBURSED BY THE BORROWER), RATABLY ACCORDING TO THE RESPECTIVE PRINCIPAL
AMOUNTS OF THE NOTES THEN HELD BY EACH OF THEM (OR IF NO NOTES ARE AT THE TIME
OUTSTANDING OR IF ANY NOTES ARE HELD BY PERSONS WHICH ARE NOT LENDERS, RATABLY
ACCORDING TO THE RESPECTIVE AMOUNTS OF THEIR COMMITMENTS OR THE RESPECTIVE
AMOUNTS OF THEIR COMMITMENTS IMMEDIATELY PRIOR TO TERMINATION IF THE COMMITMENTS
HAVE BEEN TERMINATED), FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS,
LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES AND
DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER WHICH MAY BE IMPOSED ON, INCURRED
BY, OR ASSERTED AGAINST THE ADMINISTRATIVE AGENT IN ANY WAY RELATING TO OR
ARISING OUT OF THIS AGREEMENT, ANY OF THE NOTES OR ANY OTHER INSTRUMENT OR
DOCUMENT FURNISHED PURSUANT HERETO OR IN CONNECTION HEREWITH, OR ANY ACTION
TAKEN OR OMITTED BY THE ADMINISTRATIVE AGENT UNDER THIS AGREEMENT, OR ANY OF THE
NOTES OR ANY OTHER INSTRUMENT OR DOCUMENT FURNISHED PURSUANT HERETO OR IN
CONNECTION HEREWITH; PROVIDED THAT NO LENDER SHALL BE LIABLE FOR ANY PORTION OF
SUCH LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS,
SUITS, COSTS, EXPENSES OR DISBURSEMENTS RESULTING FROM THE ADMINISTRATIVE
AGENT'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. Without limitation of the
foregoing, each Lender (other than the Designated Bidders) agrees to reimburse
the Administrative Agent promptly upon demand for such ▇▇▇▇▇▇'s ratable share of
any reasonable out-of-pocket expenses (including counsel fees) incurred by the
Administrative Agent in connection with the preparation, execution, delivery,
administration,
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modification, amendment or enforcement (whether through negotiations, legal
proceedings, in bankruptcy or insolvency proceedings, or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, any of
the Notes or any other instrument or document furnished pursuant hereto or in
connection herewith to the extent that the Administrative Agent acts in its
capacity as Administrative Agent and is not reimbursed for such expenses by the
Borrower.
SECTION 7.6. Successor Administrative Agent. The Administrative Agent
may resign at any time by giving written notice thereof to the Lenders and the
Borrower and may be removed at any time with or without cause by the Majority
Lenders. Upon any such resignation or removal, the Majority Lenders shall have
the right to appoint a successor Administrative Agent. If no successor
Administrative Agent shall have been so appointed by the Majority Lenders, and
shall have accepted such appointment, within 30 days after the retiring
Administrative Agent's giving of notice of resignation or the Majority ▇▇▇▇▇▇▇'
removal of the retiring Administrative Agent, then such retiring Administrative
Agent may, on behalf of the Lenders, appoint a successor Administrative Agent,
which shall be a commercial bank organized, or authorized to conduct a banking
business, under the laws of the United States of America or of any State thereof
and having a combined capital and surplus of at least $500,000,000. Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations under this Agreement. After
any retiring Administrative Agent's resignation or removal hereunder as
Administrative Agent, the provisions of this Article 7 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement.
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SECTION 7.7. Auction Administrative Agent. The Administrative Agent
shall until such time as it so notifies the Borrower and the Lenders discharge
its duties under Section 2.19 through the Auction Administrative Agent and all
references to the "Administrative Agent" or to Chase relating to such duties or
made in this Article 7 shall be deemed to also refer to the Auction
Administrative Agent and any Affiliate of Chase serving in such capacity. All
payments to be made to or by the Auction Administrative Agent shall be made
through the Administrative Agent.
ARTICLE 8
MISCELLANEOUS
SECTION 8.1. Amendments, Etc. An amendment or waiver of any provision
of this Agreement or the Notes, or a consent to any departure by the Borrower
therefrom, shall be effective against the Lenders and all holders of the Notes
if, but only if, it shall be in writing and signed by the Majority Lenders or,
where so specified, the Required Lenders (except any amendment to give effect to
increased Commitments and New Lenders, as contemplated by Section 2.20), and
then such a waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given; provided, however, that no such
amendment, waiver or consent shall, unless in writing and signed by all the
Lenders (other than the Designated Bidders), be effective to: (a) waive any of
the conditions specified in Article 3, (b) except as contemplated by Section
2.20, increase the Commitments of the Lenders or subject the Lenders to any
additional obligations, (c) reduce the principal of, or interest on, the Notes
or any facility fees or utilization fees hereunder, (d) except as contemplated
by Section 2.21, postpone any date fixed for any payment of principal of, or
interest on, the Notes or any facility fees or utilization fees hereunder, (e)
change the percentage of the Commitments or of the aggregate unpaid principal
amount of the Notes, which shall be required for the Lenders or any
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of them to take any action under this Agreement, or (f) amend this Section 8.01;
and, provided further that no amendment, waiver or consent shall, unless in
writing and signed by the Administrative Agent in addition to the Lenders
required hereinabove to take such action, affect the rights or duties of the
Administrative Agent under this Agreement or any Note.
SECTION 8.2. Notices, Etc. Except as otherwise provided in Section
2.02(a) or 2.10(ii), all notices and other communications provided for hereunder
shall be in writing and mailed by certified mail, return receipt requested and
postage prepaid, or telecopied, telefaxed or otherwise teletransmitted, or
delivered, if to the Borrower, at ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇
▇▇▇▇▇, Attention: Treasurer, Telefax: (▇▇▇) ▇▇▇-▇▇▇▇; if to any Initial Lender,
at its Domestic Lending Office set forth in such Initial Lender's Administrative
Questionnaire; if to any other Lender at its Domestic Lending Office specified
in the Assignment and Acceptance or Commitment Increase Agreement pursuant to
which it became a Lender or at the address for notices specified in the
Designation Agreement pursuant to which it became a party hereto; if to the
Administrative Agent, in care of The Chase Manhattan Bank, Agency Services, ▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ 10081, Attention: ▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, Telefax: (▇▇▇) ▇▇▇-▇▇▇▇, with a copy to Chase Bank of Texas, N.A., at
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇,
Telefax: (▇▇▇) ▇▇▇-▇▇▇▇; and if to the Auction Administrative Agent, at The
Chase Manhattan Bank, Agency Services, at ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇,
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, Telefax: (▇▇▇) ▇▇▇-▇▇▇▇;
or, as to each party, at such other address as shall be designated by such party
in a written notice to the other parties. All such notices and communications
shall be effective, (a) in the case of any notice or communication given by
certified mail, when receipted for, (b) in the case of any notice or
communication given by telecopy, telefax or other teletransmission, when
confirmed by appropriate answerback, in each case addressed as aforesaid, and
(c) in the case of any notice or
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communication delivered by hand or courier, when so delivered, except that
notices and communications to the Administrative Agent pursuant to Article 2 or
7 shall not be effective until received by the Administrative Agent. A notice
received by the Administrative Agent or a Lender by telephone pursuant to
Section 2.02(a) or 2.10(ii) shall be effective if the Administrative Agent or
▇▇▇▇▇▇ believes in good faith that it was given by an authorized representative
of the Borrower and acts pursuant thereto, notwithstanding the absence of
written confirmation or any contradictory provision thereof.
SECTION 8.3. No Waiver; Remedies. No failure on the part of any Lender
or the Administrative Agent to exercise, and no delay in exercising, any right
hereunder or under any Note shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder or under any Note preclude any
other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.
SECTION 8.4. Costs and Expenses; Indemnity.
(a) The Borrower agrees to pay on demand (i) all reasonable fees and
out-of-pocket expenses of counsel for the Administrative Agent in connection
with the preparation, execution and delivery of this Agreement, the Notes and
the other documents to be delivered hereunder and with respect to advising the
Administrative Agent as to its rights and responsibilities under this Agreement,
(ii) all reasonable costs and expenses incurred by the Administrative Agent and
its Affiliates in initially syndicating all or any portion of the Commitments
hereunder, including the related reasonable fees and out-of-pocket expenses of
counsel for the Administrative Agent or its Affiliates, travel expenses,
duplication and printing costs and courier and postage fees, and excluding any
syndication fees paid to other parties joining the syndicate and (iii) all
out-of-pocket costs and expenses, if any, of the
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Administrative Agent and the Lenders (including reasonable counsel fees and
expenses and the allocated costs of in-house counsel), in connection with the
enforcement (whether through negotiations, legal proceedings, in bankruptcy or
insolvency proceedings, or otherwise) of this Agreement, the Notes and the other
documents to be delivered hereunder and thereunder.
(b) If any payment of principal of, or Conversion of, any Eurodollar
Rate Advance is made by the Borrower to or for the account of a Lender on any
day other than the last day of the Interest Period for such Advance, as a result
of a prepayment pursuant to Section 2.10 or a Conversion pursuant to Section
2.08(f) or Section 2.09 or due to acceleration of the maturity of the Notes
pursuant to Section 6.01 or due to any other reason attributable to the
Borrower, or if the Borrower shall fail to borrow, convert, continue or prepay
any Eurodollar Rate Advance on the date specified in any notice delivered
pursuant hereto, the Borrower shall, upon demand by such Lender (with a copy of
such demand to the Administrative Agent), pay to the Administrative Agent for
the account of such Lender any amounts required to compensate such Lender for
any additional losses, costs or expenses which it may reasonably incur as a
result of such payment or Conversion, including any loss (excluding loss of
anticipated profits), cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by any Lender to fund or
maintain such Advance.
(c) THE BORROWER AGREES TO INDEMNIFY AND HOLD HARMLESS THE
ADMINISTRATIVE AGENT, THE ARRANGER AND EACH LENDER FROM AND AGAINST ANY AND ALL
CLAIMS, DAMAGES, LIABILITIES AND EXPENSES (INCLUDING FEES AND DISBURSEMENTS OF
COUNSEL) WHICH MAY BE INCURRED BY OR ASSERTED AGAINST THE ADMINISTRATIVE AGENT,
THE ARRANGER OR SUCH LENDER IN CONNECTION WITH OR ARISING OUT OF ANY
INVESTIGATION, LITIGATION, OR PROCEEDING (WHETHER OR NOT THE ADMINISTRATIVE
AGENT, THE ARRANGER OR SUCH LENDER IS PARTY THERETO) RELATED TO ANY ACQUISITION
OR PROPOSED ACQUISITION BY THE BORROWER, OR BY ANY SUBSIDIARY OF THE BORROWER,
OF ALL OR ANY PORTION OF THE EQUITY INTERESTS IN, OR SUBSTANTIALLY ALL THE
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ASSETS OF, ANY PERSON OR ANY USE OR PROPOSED USE OF THE ADVANCES BY THE BORROWER
(EXCLUDING ANY CLAIMS, DAMAGES, LIABILITIES OR EXPENSES INCURRED BY REASON OF
THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE PARTY TO BE INDEMNIFIED OR ITS
EMPLOYEES OR ADMINISTRATIVE AGENTS, OR BY REASON OF ANY USE OR DISCLOSURE OF
INFORMATION RELATING TO ANY SUCH ACQUISITION OR USE OR PROPOSED USE OF THE
PROCEEDS BY THE PARTY TO BE INDEMNIFIED OR ITS EMPLOYEES OR ADMINISTRATIVE
AGENTS).
SECTION 8.5. Right of Set-off. Upon the declaration of the Notes as due
and payable pursuant to the provisions of Section 6.01, each Lender is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any
time owing by such Lender to or for the credit or the account of the Borrower
against any and all of the obligations of the Borrower now or hereafter existing
under this Agreement and any Note held by such Lender, irrespective of whether
or not such Lender shall have made any demand under this Agreement or such Note
and although such obligations may be unmatured. Each Lender agrees promptly to
notify the Borrower after any such set-off and application made by such Lender,
provided that the failure to give such notice shall not affect the validity of
such set-off and application. The rights of each Lender under this Section 8.05
are in addition to other rights and remedies (including other rights of set-off)
which such Lender may have.
SECTION 8.6. Binding Effect. This Agreement shall become effective in
accordance with the provisions of Section 3.01, and thereafter shall be binding
upon and inure to the benefit of the Borrower, the Administrative Agent, the
Arranger and each Lender and their respective successors and assigns, except
that the Borrower shall not have the right to assign its rights hereunder or any
interest herein without the prior written consent of all of the Lenders.
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SECTION 8.7. Assignments and Participations.
(a) Each Lender (other than a Designated Bidder) may assign to one or
more banks or other financial institutions all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment,
the A Advances owing to it and the Note or Notes held by it); provided, however,
that (i) each such assignment shall be of a constant, and not a varying,
percentage of all such Lender's rights and obligations under this Agreement
(other than any right to make B Advances, any B Advances or any Notes) and the
same constant percentage of all such Lender's rights and obligations under the
Long-Term Revolving Credit Agreement, if any, unless the Long-Term Revolving
Credit Agreement has been terminated, shall be contemporaneously assigned by
such assigning Lender to the same assignee pursuant to Section 8.07(a) of the
Long-Term Revolving Credit Agreement, (ii) the sum of (x) the amount of the
Commitment of the assigning ▇▇▇▇▇▇ being assigned to the assignee pursuant to
each such assignment (determined as of the date of the Assignment and Acceptance
with respect to such assignment) plus (y) the amount of the "Commitment" of the
assigning Lender under the Long-Term Revolving Credit Agreement
contemporaneously assigned by such assigning Lender to such assignee as
contemplated by clause (i) of this sentence must be equal to or greater than
$25,000,000, or if less, the entire amount of such assigning Lender's
"Commitment" (unless the Borrower and the Administrative Agent shall otherwise
consent, which consent may be withheld for any reason) and must be an integral
multiple of $1,000,000, (iii) each such assignment shall be to an Eligible
Assignee, and (iv) the parties to each such assignment shall execute and deliver
to the Administrative Agent, for its acceptance and recording in the Register,
an Assignment and Acceptance, together with any Note or Notes subject to such
assignment and a processing and recordation fee of $3,000, and shall send to the
Borrower an executed counterpart of such Assignment and Acceptance. Upon such
execution, delivery, acceptance and recording, from and after the effective date
specified in each Assignment and Acceptance, (x) the assignee thereunder
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shall be a party hereto and, to the extent that rights and obligations hereunder
have been assigned to it pursuant to such Assignment and Acceptance, have the
rights and obligations of a Lender hereunder and (y) the Lender assignor
thereunder shall, to the extent that rights and obligations hereunder have been
assigned by it pursuant to such Assignment and Acceptance, relinquish its rights
and be released from its obligations under this Agreement (and, in the case of
an Assignment and Acceptance covering all or the remaining portion of an
assigning Lender's rights and obligations under this Agreement, such Lender
shall cease to be a party hereto, provided, however, such assigning Lender shall
retain any claim with respect to any fee, interest, cost, expense or indemnity
which accrues, or relates to an event that occurs, prior to the date of such
assignment pursuant to Section 2.03, 2.06, 2.07, 2.11, 2.12, 2.15 or 8.04).
(b) By executing and delivering an Assignment and Acceptance, each
Lender assignor thereunder and the assignee thereunder confirm to and agree with
each other and the other parties hereto as follows: (i) other than as provided
in such Assignment and Acceptance, such assigning Lender makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto; (ii) such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will,
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independently and without reliance upon the Administrative Agent, such assigning
Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (v) such assignee confirms
that it is (subject to approval in writing by the Borrower and the
Administrative Agent to the extent required) an Eligible Assignee; (vi) such
assignee appoints and authorizes the Administrative Agent to take such action as
agent on its behalf and to exercise such powers under this Agreement as are
delegated to the Administrative Agent by the terms hereof, together with such
powers as are reasonably incidental thereto; and (vii) such assignee agrees that
it will perform in accordance with their terms all of the obligations which by
the terms of this Agreement are required to be performed by it as a Lender.
(c) The Administrative Agent shall maintain at its address referred to
in Section 8.02 a copy of each Assignment and Acceptance, each Designation
Agreement, each New Lender Agreement and each Commitment Increase Agreement
delivered to and accepted by it and a register for the recordation of the names
and addresses of the Lenders and, with respect to Lenders other than Designated
Bidders, the Commitment of, and principal amount of the A Advances owing to,
each Lender from time to time (the "REGISTER"). The entries in the Register
shall be conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrower or any
Lender at any reasonable time and from time to time upon reasonable prior
notice.
(d) Upon its receipt of an Assignment and Acceptance executed by an
assigning ▇▇▇▇▇▇ and an assignee representing that it is an Eligible Assignee,
together with any Note or Notes subject to such assignment, the Administrative
Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit D hereto, (i) accept
90
95
such Assignment and Acceptance, (ii) record the information contained therein in
the Register and (iii) give prompt notice thereof to the Borrower. Within five
Business Days after its receipt of such notice and its receipt of an executed
counterpart of such Assignment and Acceptance, the Borrower, at its own expense,
shall execute and deliver to the Administrative Agent in exchange for the
surrendered Note or Notes a new Note to the order of such Eligible Assignee and,
if the assigning ▇▇▇▇▇▇ has retained a Commitment hereunder, a new Note to the
order of the assigning Lender. Such new Note or Notes shall be dated the
effective date of such Assignment and Acceptance and shall otherwise be in
substantially the form of Exhibit A hereto.
(e) Each Lender (other than a Designated Bidder) may designate one or
more banks or other entities to have a right to make B Advances as a Lender
pursuant to Section 2.19; provided that (i) such Lender shall have obtained the
written consent of the Administrative Agent and the Borrower, such consent not
to be unreasonably withheld, (ii) no such Lender shall be entitled to make more
than two such designations, (iii) each such Lender making one or more of such
designations shall retain the right to make B Advances as a Lender pursuant to
Section 2.19, (iv) each such designation shall be to a Designated Bidder and (v)
the parties to each such designation shall execute and deliver to the
Administrative Agent, for its acceptance and recording in the Register, a
Designation Agreement. Upon such execution, delivery, acceptance and recording,
from and after the effective date specified in each Designation Agreement, the
designee thereunder shall be a party hereto with a right to make B Advances as a
Lender pursuant to Section 2.19 and the obligations related thereto.
(f) By executing and delivering a Designation Agreement, the Lender
making the designation thereunder and its designee thereunder confirm and agree
with each other and the other parties hereto as follows: (i) such Lender makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection
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96
with this Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement or any other instrument or
document furnished pursuant hereto, (ii) such Lender makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of the Borrower or the performance or observance by the Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such designee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into the
Designation Agreement; (iv) such designee will, independently and without
reliance upon the Administrative Agent, such designating Lender or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement; (v) such designee confirms that it is a Designated
Bidder; (vi) such designee appoints and authorizes the Administrative Agent to
take such action as agent on its behalf and to exercise such powers under this
Agreement as are delegated to the Administrative Agent by the terms hereof,
together with such powers as are reasonably incidental thereto, and (vii) such
designee agrees that it will perform in accordance with their terms all of the
obligations which by the terms of this Agreement are required to be performed by
it as a Lender.
(g) Upon its receipt of a Designation Agreement executed by a
designating ▇▇▇▇▇▇ and a designee representing that it is a Designated Bidder,
the Administrative Agent shall, if such Designation Agreement has been completed
and is substantially in the form of Exhibit K hereto, (i) accept such
Designation Agreement, (ii) record the information contained therein in the
Register and (iii) give prompt notice thereof to the Borrower.
(h) Each Lender may sell participations to one or more banks or other
entities in or to all or a portion
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97
of its rights and obligations under this Agreement (including all or a portion
of its Commitment, and the Advances owing to it and the Note or Notes held by
it); provided, however, that (i) such Lender's obligations under this Agreement
(including its Commitment to the Borrower hereunder) shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations, (iii) such Lender shall remain the holder
of any such Note for all purposes of this Agreement, (iv) the Borrower, the
Administrative Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement, (v) such Lender shall continue to be able to
agree to any modification or amendment of this Agreement or any waiver hereunder
without the consent, approval or vote of any such participant or group of
participants, other than modifications, amendments and waivers which (A)
postpone any date fixed for any payment of, or reduce any payment of, principal
of or interest on such Lender's Note or any facility fees or utilization fees
payable under this Agreement, or (B) increase the amount of such Lender's
Commitment in a manner which would have the effect of increasing the amount of a
participant's participation, or (C) reduce the interest rate payable under this
Agreement and such Lender's Note, or (D) consent to the assignment or the
transfer by the Borrower of any of its rights and obligations under the
Agreement, and (vi) except as contemplated by the immediately preceding clause
(v), no participant shall be deemed to be or to have any of the rights or
obligations of a "Lender" hereunder.
(i) Any Lender may, in connection with any assignment, designation or
participation or proposed assignment, designation or participation pursuant to
this Section 8.07, disclose to the assignee, designee or participant or proposed
assignee, designee or participant, any information relating to the Borrower
furnished to such Lender by or on behalf of the Borrower; provided that, prior
to any such disclosure, the assignee, designee or participant or proposed
assignee, designee or participant shall agree in
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98
writing for the benefit of the Borrower to preserve the confidentiality of any
confidential information relating to the Borrower received by it from such
Lender in a manner consistent with Section 8.08.
(j) Anything in this Agreement to the contrary notwithstanding, any
Lender may at any time create a security interest in all or any portion of its
rights under this Agreement (including the Advances owing to it) and the Notes
issued to it hereunder in favor of any Federal Reserve Bank in accordance with
Regulation A of the Board of Governors of the Federal Reserve System (or any
successor regulation) and the applicable operating circular of such Federal
Reserve Bank.
SECTION 8.8. Confidentiality. Each Lender and the Administrative Agent
(each, a "PARTY") agrees that it will use its best reasonable efforts not to
disclose, without the prior consent of the Borrower (other than to its, or its
Affiliates, employees, auditors, accountants, counsel or other representatives,
whether existing at the Original Effective Date or any subsequent time), any
information with respect to the Borrower which is furnished pursuant to this
Agreement, provided that any party may disclose any such information (i) as has
become generally available to the public, (ii) as may be required or appropriate
in any report, statement or testimony submitted to any municipal, state or
Federal regulatory body having or claiming to have jurisdiction over such party
or to the Board of Governors of the Federal Reserve System or the Federal
Deposit Insurance Corporation or similar organizations (whether in the United
States or elsewhere) or their successors, (iii) as may be required or
appropriate in response to any summons or subpoena or in connection with any
litigation or regulatory proceeding, (iv) in order to comply with any law,
order, regulation or ruling applicable to such party, or (v) to any prospective
assignee, designee or participant in connection with any contemplated assignment
of any rights or obligations hereunder, any designation or any sale of any
participation therein, by such party pursuant to Section 8.07, if such
prospective assignee, designee or participant, as the case may be, executes an
agreement with the Borrower
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99
containing provisions substantially similar to those contained in this Section
8.08; provided, however, that the Borrower acknowledges that the Administrative
Agent has disclosed and may continue to disclose such information as the
Administrative Agent in its sole discretion determines is appropriate to the
Lenders from time to time.
SECTION 8.9. Consent to Jurisdiction.
(a) The Borrower hereby irrevocably submits to the jurisdiction of any
New York State or Federal court sitting in New York City and any appellate court
from any thereof in any action or proceeding by the Administrative Agent, the
Arranger, any Lender or the holder of any Note in respect of, but only in
respect of, any claims or causes of action arising out of or relating to this
Agreement or the Notes (such claims and causes of action, collectively, being
"PERMITTED CLAIMS"), and the Borrower hereby irrevocably agrees that all
Permitted Claims may be heard and determined in such New York State court or in
such Federal court. The Borrower hereby irrevocably waives, to the fullest
extent it may effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any aforementioned court in respect
of Permitted Claims. Service of the summons and complaint and any other process
which may be served by the Administrative Agent, the Arranger, any Lender or the
holder of any Note on the Borrower in any such action or proceeding in any
aforementioned court in respect of Permitted Claims may be made by delivering
separate copies of such process to the Borrower by courier and by certified mail
(return receipt requested), fees and postage prepaid at the Borrower's address
specified pursuant to Section 8.02, to the attention of each of the Treasurer
and the Executive Vice President, Law. The Borrower agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by
law.
(b) Nothing in this Section 8.09 (i) shall affect the right of the
Arranger, the Borrower, any Lender, the holder of any Note or the Administrative
Agent to
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serve legal process in any other manner permitted by law or affect any right
otherwise existing of the Borrower, any Lender, the Arranger, the holder of any
Note or the Administrative Agent to bring any action or proceeding in the courts
of other jurisdictions or (ii) shall be deemed to be a general consent to
jurisdiction in any particular court or a general waiver of any defense or a
consent to jurisdiction of the courts expressly referred to in subsection (a)
above in any action or proceeding in respect of any claim or cause of action
other than Permitted Claims.
SECTION 8.10. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.
SECTION 8.11. Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Delivery to the Administrative Agent of a counterpart executed by a Lender shall
constitute delivery of such counterpart to all of the Lenders.
SECTION 8.12. WAIVER OF JURY TRIAL. THE BORROWER, THE ADMINISTRATIVE
AGENT, AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT, ANY OF THE NOTES OR ANY OTHER INSTRUMENT OR DOCUMENT FURNISHED
PURSUANT HERETO OR IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED
HEREBY.
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101
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.
BURLINGTON RESOURCES INC.
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Title: Vice President &
Treasurer
CHASE BANK OF TEXAS, N.A., as
Administrative Agent
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Vice President
THE CHASE MANHATTAN BANK, as
Auction Administrative Agent
By: /s/ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Title: AVP
CITIBANK, N.A., as Syndication
Agent
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Attorney-In-Fact
102
BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION, as
Documentation Agent
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇▇
Title: Senior Vice President
BANKBOSTON, N.A., as
Documentation Agent
By: /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Title: Director
▇▇▇▇▇▇ GUARANTY TRUST COMPANY
OF NEW YORK, as Original
Administrative Agent
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
103
Commitments The Initial Lenders
----------- -------------------
$45,000,000 CHASE BANK OF TEXAS, N.A.
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Vice President
$45,000,000 CITIBANK, N.A.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Attorney-In-Fact
$45,000,000 BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Senior Vice
President
$45,000,000 BANKBOSTON, N.A.
By: /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Title: Director
104
$30,000,000 MELLON BANK, N.A.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
$30,000,000 ▇▇▇▇▇ FARGO BANK
By: /s/ ▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
$20,000,000 THE BANK OF NEW YORK
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
$20,000,000 THE BANK OF TOKYO-MITSUBISHI, LTD.
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President
$20,000,000 THE NORTHERN TRUST COMPANY
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President
105
$20,000,000 WACHOVIA BANK, N.A.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Senior Vice
President
$20,000,000 BANK OF MONTREAL
By: /s/ ▇.▇. ▇▇▇▇▇▇▇▇
--------------------------------------
Name: ▇.▇. ▇▇▇▇▇▇▇▇
Title: Director
$20,000,000 BANKERS TRUST COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Managing Director
$20,000,000 BARCLAYS BANK PLC
By: /s/ ▇. ▇▇▇▇▇▇▇▇
--------------------------------------
Name: ▇. ▇▇▇▇▇▇▇▇
Title: Associate Director
106
$20,000,000 PARIBAS
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
Title: Vice President
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Vice President
Total Commitments
=================
$ 400,000,000
107
SCHEDULE I
MATERIAL SUBSIDIARIES
Louisiana Land and Exploration Company
Burlington Resources Oil & Gas Company
108
SCHEDULE II
PRICING GRID
-------------------- ------------------ ----------------- ------------------ ------------------ ----------------- ------------------
LEVEL I LEVEL II LEVEL III LEVEL IV LEVEL V LEVEL VI
-------------------- ------------------ ----------------- ------------------ ------------------ ----------------- ------------------
Basis for Pricing If the If the If the If the If the If Levels I-V do
Borrower's Borrower's Borrower's Borrower's Borrower's not apply.
senior unsecured senior senior unsecured senior unsecured senior
long term debt unsecured long long term debt long term debt unsecured long
is rated at term debt is is rated at is rated at term debt is
least A by S&P rated at least least BBB+ by least BBB by S&P rated at least
or A2 by ▇▇▇▇▇'▇. A- by S&P or A3 S&P or Baa1 by or Baa2 by BBB- by S&P or
by ▇▇▇▇▇'▇. ▇▇▇▇▇'▇. ▇▇▇▇▇'▇. Baa3 by ▇▇▇▇▇'▇.
-------------------- ------------------ ----------------- ------------------ ------------------ ----------------- ------------------
Facility Fee .050% .060% .080% .100% .125% .200%
Percentage
-------------------- ------------------ ----------------- ------------------ ------------------ ----------------- ------------------
LIBOR Applicable .175% .190% .220% .250% .325% .550%
Margin
-------------------- ------------------ ----------------- ------------------ ------------------ ----------------- ------------------
The applicable pricing level shall change on the date of any relevant change in
the rating by S&P or ▇▇▇▇▇'▇ of any public long term senior unsecured debt
securities of the Borrower. In the case of split ratings from S&P and ▇▇▇▇▇'▇,
the rating to be used to determine the applicable pricing level is the higher of
the two (e.g., A-/Baa1 results in Level II pricing), provided that in the event
the split is more than one full category, the average (or the higher of two
intermediate ratings) shall be used (e.g., A-/Baa2 results in Level III pricing,
as does A-/Baa3).
109
EXHIBIT A
FORM OF
NOTE
New York, New York
February 23, 1999
For value received, Burlington Resources Inc., a Delaware corporation
(the "BORROWER"), promises to pay to the order of ______________________ (the
"LENDER"), for the account of its Applicable Lending Office, the unpaid
principal amount of each Advance made by the Lender to the Borrower pursuant to
the Credit Agreement referred to below on the maturity date provided for in the
Credit Agreement. The Borrower promises to pay interest on the unpaid principal
amount of each such Advance on the dates and at the rate or rates provided for
in the Credit Agreement. All such payments of principal and interest shall be
made in lawful money of the United States in Federal or other immediately
available funds at the office of The Chase Manhattan Bank, Agency Services, ▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇▇▇
▇▇▇▇▇▇▇.
All Advances made by the Lender, the respective types thereof and all
repayments of the principal thereof shall be recorded by the Lender and, if the
Lender so elects in connection with any transfer or enforcement hereof,
appropriate notations to evidence the foregoing information with respect to each
such Advance then outstanding may be endorsed by the Lender on the schedule
attached hereto, or on a continuation of such schedule attached to and made a
part hereof; provided that the failure of the Lender to make (or any error in
making) any such recordation or endorsement shall not affect the Borrower's
obligations hereunder or under the Credit Agreement.
110
This note is one of the Notes referred to in the Credit Agreement dated
as of February 25, 1998, as amended and restated as of February 23, 1999 among
Burlington Resources Inc., the Lenders party thereto, Chase Bank of Texas, N.A.,
as Administrative Agent for the Lenders thereunder, The Chase Manhattan Bank, as
Auction Administrative Agent for the Lenders, Citibank, N.A., as Syndication
Agent for the Lenders, and Bank of America National Trust and Savings
Association and BankBoston, N.A., as Documentation Agents for the Lenders (as
the same may be amended from time to time, the "CREDIT AGREEMENT"). Terms
defined in the Credit Agreement are used herein with the same meanings.
Reference is made to the Credit Agreement for provisions for the prepayment
hereof and the acceleration of the maturity hereof.
BURLINGTON RESOURCES INC.
By:
--------------------------------------
Name:
Title:
111
ADVANCES AND PAYMENTS OF PRINCIPAL
------------------- ----------------- ---------------- ------------------- -----------------------------------------
AMOUNT OF AMOUNT OF
DATE ADVANCE TYPE OF ADVANCE PRINCIPAL REPAID NOTATION MADE BY
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
------------------- ----------------- ---------------- ------------------- -----------------------------------------
112
EXHIBIT B
FORM OF
NOTICE OF A BORROWING
Date ___________
The Chase Manhattan Bank
Agency Services
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Tel: (▇▇▇) ▇▇▇-▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
copy to:
Chase Bank of Texas, N.A.,
as Administrative Agent under the Credit Agreement referred to below
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Tel: (▇▇▇) ▇▇▇-▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
Ladies and Gentlemen:
The undersigned, Burlington Resources Inc. (the "BORROWER"), refers to
the Short-Term Credit Agreement dated as of February 25, 1998, as amended and
restated as of February 23, 1999 (as the same may be amended from time to time,
the "CREDIT AGREEMENT", the terms defined therein being used herein as therein
defined), among the Borrower, the Lenders parties thereto, Chase Bank of Texas,
N.A., as Administrative Agent, The Chase Manhattan Bank as Auction
Administrative Agent, Citibank, N.A., as Syndication Agent, and Bank of America
National Trust and Savings Association and BankBoston, N.A., as Documentation
Agents. Pursuant to Section 2.02(a) of the Credit Agreement, the Borrower hereby
gives you notice of and requests an A Borrowing under the Credit Agreement (the
"PROPOSED A BORROWING"), and in that connection sets forth below the information
relating to such A Borrowing:
113
1. The Business Day of the Proposed A Borrowing is _________ __,
_____.
2. The Type of A Advances comprising the Proposed A Borrowing is
[Base Rate Advances] [Eurodollar Rate Advances].
3. The aggregate amount of the Proposed A Borrowing is $_______.
4.(1) The Interest Period for each Eurodollar Rate Advance made as
part of the Proposed A Borrowing is [__] month[s].
5. The Proposed A Borrowing shall consist of [Revolving A
Advances] [Term A Advances].
The undersigned hereby certifies that the following statements are true
on the date hereof, and will be true on the date of the Borrowing, before and
immediately after giving effect thereto and to the application of the proceeds
therefrom:
(a) each representation and warranty contained in Section 4.01 is
correct in all material respects as though made on and as of such date (or, if
such representation and warranty is stated to be made as at a specific date or
for a specific period, as at the original specified date or with respect to the
original specified period);
(b) no event has occurred and is continuing, or would result from such
A Borrowing, which constitutes an Event of Default or would constitute an Event
of Default but for the requirement that notice be given or time elapse or both;
and
(c) the aggregate amount of the borrowings under the Credit Agreement
(including the Proposed A Borrowing) and under other agreements or facilities or
evidenced by other instruments or documents is not in excess of the aggregate
amount of such borrowings approved as of such date by the Board of Directors of
the Borrower.
-----------------------------
(1) To be used for Eurodollar Rate Advances only.
114
BURLINGTON RESOURCES INC.
By:
--------------------------------------
Name:
Title:
115
EXHIBIT C
FORM OF
NOTICE OF ▇ ▇▇▇▇▇▇▇▇▇
Date ___________
The Chase Manhattan Bank
Agency Services
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Tel: (▇▇▇) ▇▇▇-▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
copy to:
Chase Bank of Texas, N.A.,
as Administrative Agent under the Credit Agreement referred to below
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Tel: (▇▇▇) ▇▇▇-▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
Ladies and Gentlemen:
The undersigned, Burlington Resources Inc. (the "BORROWER"), refers to
the Short-Term Credit Agreement dated as of February 25, 1998, as amended and
restated as of February 23, 1999 (as the same may be amended from time to time,
the "CREDIT AGREEMENT", the terms defined therein being used herein as therein
defined), among the Borrower, the Lenders parties thereto, Chase Bank of Texas,
N.A., as Administrative Agent, The Chase Manhattan Bank, as Auction
Administrative Agent, Citibank, N.A., as Syndication Agent, and Bank of America
National Trust and Savings Association and BankBoston, N.A., as Documentation
Agents. Pursuant to Section 2.19 of the Credit Agreement, the Borrower hereby
gives you notice of and requests a B Borrowing under the Credit Agreement (the
"PROPOSED B BORROWING"), and in
116
that connection sets forth the terms on which such B Borrowing is requested to
be made:
1. Date of B Borrowing ____________________
2. Proposed Amount of B Borrowing ____________________
3. Maturity Date ____________________
4. Interest Rate Basis ____________________
5. Interest Payment Date(s) ____________________
7. [Other Terms] ____________________
The undersigned hereby certifies that the following statements are true
on the date hereof, and will be true on the date of the Borrowing, before and
immediately after giving effect thereto and to the application of the proceeds
therefrom:
(a) each representation and warranty contained in Section 4.01 is
correct in all material respects as though made on and as of such date (or, if
such representation and warranty is stated to be made as at a specific date or
for a specific period, as at the original specified date or with respect to the
original specified period);
(b) no event has occurred and is continuing, or would result from
such A Borrowing, which constitutes an Event of Default or would constitute an
Event of Default but for the requirement that notice be given or time elapse or
both; and
(c) the aggregate amount of the borrowings under the Credit Agreement
(including the Proposed A Borrowing) and under other agreements or facilities or
evidenced by other instruments or documents is not in excess of the aggregate
amount of such borrowings approved as of such date by the Board of Directors of
the Borrower.
BURLINGTON RESOURCES INC.
By
---------------------------------------
Name:
Title:
117
EXHIBIT D
FORM OF
ASSIGNMENT AND ACCEPTANCE
Dated: _________, 19__
Reference is made to the Short-Term Revolving Credit Agreement dated as
of February 25, 1998, amended and restated as of February 23, 1999 (such
agreement, as in effect on the date hereof and as it may hereafter be amended,
modified or supplemented from time to time, the "CREDIT AGREEMENT") among
Burlington Resources Inc., a Delaware corporation (the "BORROWER"), the Lenders
party thereto (the "LENDERS"), Chase Bank of Texas, N.A., as Administrative
Agent for the Lenders (the "ADMINISTRATIVE AGENT"), The Chase Manhattan Bank, as
Auction Administrative Agent for the Lenders, Citibank, N.A., as Syndication
Agent for the Lenders, and Bank of America National Trust and Savings
Association and BankBoston, N.A., as Documentation Agents. Terms defined in the
Credit Agreement are used herein with the same meaning.
The "Assignor" and the "Assignee" referred to on Schedule 1 hereto
agree as follows:
SECTION (A). The Assignor hereby sells and assigns to the Assignee,
without recourse, and the Assignee hereby purchases and assumes from the
Assignor, that interest in and to all of the Assignor's rights and obligations
under the Credit Agreement as of the date hereof (other than in respect of B
Advances) which represents the percentage interest specified on Schedule 1
hereto of all outstanding rights and obligations under the Credit Agreement
(other than in respect of B Advances), including such interest in the Assignor's
Commitment, the A Advances owing to the Assignor, and the Note[s] held by the
Assignor. After giving effect to such sale and assignment, the Assignee's
Commitment and the amount of the A Advances owing to the Assignee will be as set
forth in Section 2 of Schedule 1 hereof.
SECTION (B). The Assignor (i) represents and warrants that it is the
legal and beneficial owner of the interest being assigned by it hereunder and
that such interest is free and clear
118
of any adverse claim; (ii) represents and warrants that it has made or is
contemporaneously making herewith, to the Assignee as contemplated by Section
8.07 of the Credit Agreement, an assignment under the Long-Term Revolving Credit
Agreement, unless the Long-Term Revolving Credit Agreement has been terminated;
(iii) makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in
connection with the Credit Agreement or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement or any
other instrument or document furnished pursuant thereto; (iv) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower or the performance or observance by the
Borrower of any of its obligations under the Credit Agreement or any other
instrument or document furnished pursuant thereto; [and (v) requests that the
Administrative Agent arrange for the issuance of a new Note or Notes payable to
the order of the Assignee].
SECTION (C). The Assignee (i) confirms that it has received a copy of
the Credit Agreement, together with copies of the financial statements referred
to in Section 4.01 thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (ii) confirms that it has entered into or is
contemporaneously herewith entering into, with the Assignor as contemplated by
Section 8.07 of the Credit Agreement, an assignment under the Long-Term
Revolving Credit Agreement, unless the Long-Term Revolving Credit Agreement has
been terminated; (iii) agrees that it will, independently and without reliance
upon the Administrative Agent, the Assignor or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Credit Agreement; (iv) confirms that it is (subject to approval in writing
by the Borrower and the Administrative Agent to the extent required) an Eligible
Assignee; (v) appoints and authorizes the Administrative Agent to take such
action as agent on its behalf and to exercise such powers under the Credit
Agreement as are delegated to the Administrative Agent by the terms thereof,
together with such powers as are reasonably incidental thereto; (vi) agrees that
it will perform in accordance with their terms all of the obligations which by
the terms of the Credit Agreement are required to be performed by it
119
as a Lender; [and] (vii) specifies as its Domestic Lending Office (and address
for notices) and Eurodollar Lending Office the offices set forth beneath its
name on the signature pages hereof [;and (viii) attaches the forms prescribed by
the Internal Revenue Service of the United States certifying as to the
Assignee's status for purposes of determining exemption from United States
withholding taxes with respect to all payments to be made to the Assignee under
the Credit Agreement and the Notes or such other documents as are necessary to
indicate that all such payments are subject to such rates at a rate reduced by
an applicable tax treaty](1).
SECTION (D). Following the execution of this Assignment and Acceptance
by the Assignor and the Assignee, it will be delivered to the Administrative
Agent for acceptance and recording by the Administrative Agent. The effective
date for this Assignment and Acceptance shall be at least five Business Days
after the execution and delivery thereof to the Administrative Agent, unless
otherwise specified on Schedule 1 hereto (the "EFFECTIVE DATE").
SECTION (E). Upon such acceptance and recording by the Administrative
Agent, as of the Effective Date, (i) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and Acceptance, have
the rights and obligations of a Lender thereunder and (ii) the Assignor shall,
to the extent provided in this Assignment and Acceptance, relinquish its rights
and be released from its obligations under the Credit Agreement, provided,
however, such assigning Lender shall retain any claim with respect to any fee,
interest, cost, expense or indemnity which accrues, or relates to an event that
occurs, prior to the date of such assignment pursuant to Section 2.03, 2.06,
2.07, 2.11, 2.12, 2.15 or 8.04 of the Credit Agreement.
SECTION (F). Upon such acceptance and recording by the Administrative
Agent, from and after the Effective Date, the Administrative Agent shall make
all payments under the Credit Agreement and the Notes in respect of the interest
assigned hereby (including all payments of principal, interest and commitment
fees with respect thereto) to the Assignee. The Assignor and Assignee shall make
all appropriate adjustments in
----------------------
(1) If the Assignee is not a United States person (as such term is
defined in Section 7701(a)(30) of the Internal Revenue Code).
120
payments under the Credit Agreement and the Notes for periods prior to the
Effective Date directly between themselves.
SECTION (G). This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of New York.
IN WITNESS WHEREOF, the parties have caused this Assignment and
Acceptance to be executed by their respective officers thereunto duly authorized
as of the date specified thereon.
121
Schedule 1
to
Assignment and Acceptance
Dated __________
Section 1.
Percentage Interest
assigned: ________%
Section 2.
Assignee's Commitment:
Aggregate Outstanding
Principal $_________
Amount of [A Advances]
owing to the
Assignee: $_________
Section 3.
Effective Date(2):
[NAME OF ASSIGNOR]
By
---------------------------------------
Title:
[NAME OF ASSIGNEE]
By
---------------------------------------
Title:
Domestic Lending Office:
-----------------------
(2) This date should be no earlier than at least five Business Days
after the execution and delivery thereof to the Administrative
Agent.
122
[Address]
Eurocurrency Lending Office:
[Address]
Accepted and Consented to
this __ day of __________, ____:
CHASE BANK OF TEXAS, N.A.,
as Administrative Agent
By
---------------------------------
Name:
Title:
Consented to this
__ day of __________, ____:
BURLINGTON RESOURCES INC.
By
---------------------------------
Name:
Title:
123
EXHIBIT E
FORM OF
NEW LENDER AGREEMENT
This New Lender Agreement dated as of ___________, ____ (this
"AGREEMENT") is by and among (i) Burlington Resources Inc., a Delaware
corporation (the "BORROWER"), (ii) Chase Bank of Texas, N.A., in its capacity as
administrative agent (the "ADMINISTRATIVE AGENT") under the Short-Term Revolving
Credit Agreement dated as of February 25, 1998, as amended and restated as of
February 23, 1999 (as may be amended or otherwise modified from time to time,
the "CREDIT AGREEMENT", capitalized terms that are defined in the Credit
Agreement and not defined herein are used herein as therein defined) among the
Borrower, the lenders party thereto, the Administrative Agent, The Chase
Manhattan Bank, as auction administrative agent, Citibank, N.A., as syndication
agent, and Bank of America National Trust and Savings Association and
BankBoston, N.A., as documentation agents, and (iii) _________ ("NEW LENDER").
Preliminary Statements
A. Pursuant to Section 2.20 of the Credit Agreement, the Borrower
has the right, subject to the terms and conditions thereof, to
effectuate from time to time an increase in the total
Commitments under the Credit Agreement by adding to the Credit
Agreement one or more banks or other financial institutions.
B. The Borrower has given notice to the Administrative Agent of
its intention to increase the total Commitments pursuant to
such Section 2.20 by adding the New Lender to the Credit
Agreement as a Lender with a Commitment of $___________, and
the Administrative Agent is willing to consent thereto.
Accordingly, the parties hereto agree as follows:
SECTION 1. Addition of New Lender. Pursuant to Section 2.20 of the
Credit Agreement, the New Lender is hereby added to the Credit Agreement as a
Lender with a Commitment of $________________. The New Lender specifies as its
Domestic Lending Office and Eurodollar Lending Office the following:
124
Domestic Lending Address:
Office:
Attention:
Telephone:
Telecopy:
Eurodollar Lending Address:
Office:
Attention:
Telephone:
Telecopy:
SECTION 2. New Note. The Borrower agrees to promptly execute and
deliver to the New Lender a Note ("NEW NOTE").
SECTION 3. Consent. The Administrative Agent and the Borrower hereby
consent to the increase in the Commitments and addition of the New Lender
effectuated hereby.
SECTION 4. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.
SECTION 5. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
SECTION 6. Lender Credit Decision. The New Lender acknowledges that it
has, independently and without reliance upon the Administrative Agent or any
other Lender and based on the financial statements referred to in Section 4.01
and such other documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement and to agree to
the various matters set forth herein. The New Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit
125
decisions in taking or not taking action under the Credit Agreement.
SECTION 7. Representations and Warranties of the Borrower. The
Borrower represents and warrants as follows:
(a) The execution, delivery and performance by the Borrower of this
Agreement and the New Note are within the Borrower's corporate powers, have been
duly authorized by all necessary corporate action, and do not contravene (i) the
Borrower's certificate of incorporation or by-laws or (ii) law or any
contractual restriction binding on or affecting the Borrower.
(b) No authorization or approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body is required for
the due execution, delivery and performance by the Borrower of this Agreement or
the New Note which has not been duly made or obtained.
(c) This Agreement constitutes, and the New Note when delivered
hereunder shall constitute, legal, valid and binding obligations of the Borrower
enforceable against the Borrower in accordance with their respective terms,
except as may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors rights generally or by
general principles of equity.
(d) The aggregate amount by which the Commitments under the Credit
Agreement have been increased does not exceed $120,000,000.
(e) No event has occurred and is continuing which constitutes an Event
of Default.
(f) Unless the Long-Term Revolving Credit Agreement has been
terminated, the Borrower has caused, or is simultaneously causing, the New
Lender to become a party to the Long-Term Revolving Credit Agreement pursuant to
Section 2.20 thereof with a "Commitment" (under and as defined in the Long-Term
Revolving Credit Agreement) that constitutes the same percentage of all
"Commitments" thereunder as the percentage that the New Lender's Commitment
under the Credit Agreement constitutes of all Commitments under the Credit
Agreement.
(g) Prior to the increase in Commitment pursuant to this Agreement,
the Borrower has offered the Lenders the right to participate in such increase
by increasing their respective Commitments.
(h) Attached hereto are resolutions duly adopted by the Board of
Directors of the Borrower sufficient to authorize this
126
Agreement and the New Note, and such resolutions are in full force and effect.
SECTION 8. Default. Without limiting any other event that may
constitute an Event of Default, in the event any representation or warranty set
forth herein shall prove to have been incorrect in any material respect when
made, such event shall constitute an "Event of Default" under the Credit
Agreement.
SECTION 9. Expenses. The Borrower agrees to pay on demand all costs and
expenses of the Administrative Agent in connection with the preparation,
negotiation, execution and delivery of this Agreement and the New Note,
including, without limitation, the reasonable fees and out-of-pocket expenses of
counsel for the Administrative Agent with respect thereto.
SECTION 10. Effectiveness. When, and only when, the Administrative
Agent shall have received counterparts of, or telecopied signature pages of,
this Agreement executed by the Borrower, the Administrative Agent and the New
Lender, this Agreement shall become effective as of the date first written
above.
127
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
BORROWER:
BURLINGTON RESOURCES INC.
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
ADMINISTRATIVE AGENT:
CHASE BANK OF TEXAS, N.A., as
Administrative Agent
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
NEW LENDER:
-----------------------------------------
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
128
EXHIBIT F
FORM OF
COMMITMENT INCREASE AGREEMENT
This Commitment Increase Agreement dated as of ___________, ____ (this
"AGREEMENT") is by and among (i) Burlington Resources Inc., a Delaware
corporation (the "BORROWER"), (ii) Chase Bank of Texas, N.A., in its capacity as
administrative agent (the "ADMINISTRATIVE AGENT") under the Short-Term Revolving
Credit Agreement dated as of February 25, 1998, as amended and restated as of
February 23, 1999 (as the same may be amended or otherwise modified from time to
time, the "CREDIT AGREEMENT", capitalized terms that are defined in the Credit
Agreement and not defined herein are used herein as therein defined) among the
Borrower, the lenders party thereto, the Administrative Agent, The Chase
Manhattan Bank, as Auction Administrative Agent, Citibank, N.A., as syndication
agent, and Bank of America National Trust and Savings Association and
BankBoston, N.A., as documentation agents, and (iii) _________ ("INCREASING
LENDER").
Preliminary Statements
A. Pursuant to Section 2.20 of the Credit Agreement, the Borrower
has the right, subject to the terms and conditions thereof, to
effectuate from time to time an increase in the total
Commitments under the Credit Agreement by agreeing with a
Lender to increase that ▇▇▇▇▇▇'s Commitment.
B. The Borrower has given notice to the Administrative Agent of
its intention to increase the total Commitments pursuant to
such Section 2.20 by increasing the Commitment of the
Increasing Lender from $_______ to $________, and the
Administrative Agent is willing to consent thereto.
Accordingly, the parties hereto agree as follows:
SECTION 1. Increase of Commitment. Pursuant to Section 2.20 of the
Credit Agreement, the Commitment of the Increasing Lender is hereby increased
from $________ to $__________.
129
SECTION 2. Consent. The Administrative Agent hereby consents to the
increase in the Commitment of the Increasing Lender effectuated hereby.
SECTION 3. Governing Law. This Agreement shall be governed by, and
construed in accordance with the laws of the State of New York.
SECTION 4. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
SECTION 5. Lender Credit Decision. The Increasing Lender acknowledges
that it has, independently and without reliance upon the Administrative Agent or
any other Lender and based on the financial statements referred to in Section
4.01 and such other documents and information as it has deemed appropriate, made
its own credit analysis and decision to enter into this Agreement and to agree
to the various matters set forth herein. The Increasing Lender also acknowledges
that it will, independently and without reliance upon the Administrative Agent
or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Credit Agreement.
SECTION 6. Representations and Warranties of the Borrower. The
Borrower represents and warrants as follows:
(a) The execution, delivery and performance by the Borrower of this
Agreement are within the Borrower's corporate powers, have been duly authorized
by all necessary corporation action, and do not contravene (i) the Borrower's
certificate of incorporation or by-laws or (ii) law or any contractual
restriction binding on or affecting the Borrower.
(b) No authorization or approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body is required for
the due execution, delivery and performance by the Borrower of this Agreement
which has not been duly made or obtained.
(c) This Agreement constitutes legal, valid and binding obligations of
the Borrower enforceable against the Borrower in
130
accordance with their respective terms, except as may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors rights generally or by general principles of equity.
(d) The aggregate amount by which the Commitments under the Credit
Agreement have been increased does not exceed $120,000,000.
(e) No event has occurred and is continuing which constitutes an Event
of Default.
(f) Unless the Long-Term Revolving Credit Agreement has been
terminated, the Borrower has caused, or is simultaneously causing, the
Increasing Lender's "Commitment" (as defined in the Long-Term Revolving Credit
Agreement) to be increased pursuant to Section 2.20 thereof by the same
percentage as the Increasing Lender's Commitment under the Credit Agreement is
being increased pursuant to Section 2.20 of the Credit Agreement.
(g) Attached hereto are resolutions duly adopted by the Board of
Directors of the Borrower sufficient to authorize this Agreement, and such
resolutions are in full force and effect.
SECTION 7. Default. Without limiting any other event that may
constitute an Event of Default, in the event any representation or warranty set
forth herein shall prove to have been incorrect in any material respect when
made, such event shall constitute an "Event of Default" under the Credit
Agreement.
SECTION 8. Expenses. The Borrower agrees to pay on demand all costs and
expenses of the Administrative Agent in connection with the preparation,
negotiation, execution and delivery of this Agreement, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for the
Administrative Agent with respect thereto.
SECTION 9. Effectiveness. When, and only when, the Administrative Agent
shall have received counterparts of, or telecopied signature pages of, this
Agreement executed by the Borrower, the Administrative Agent and the Increasing
Lender, this Agreement shall become effective as of the date first written
above.
131
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
BORROWER:
BURLINGTON RESOURCES INC.
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
ADMINISTRATIVE AGENT:
CHASE BANK OF TEXAS, N.A., as
Administrative Agent
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
INCREASING LENDER:
-----------------------------------------
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
132
EXHIBIT G
FORM OF
EXTENSION REQUEST
The Chase Manhattan Bank
Agency Services
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Tel: (▇▇▇) ▇▇▇-▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
copy to:
Chase Bank of Texas, N.A.,
as Administrative Agent under the Credit Agreement referred to below
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Tel: (▇▇▇) ▇▇▇-▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
Ladies and Gentlemen:
The undersigned, Burlington Resources Inc. (the "BORROWER"), refers to
the Short-Term Credit Agreement dated as of February 25, 1998, as amended and
restated as of February 23, 1999 (as the same may be amended from time to time,
the "CREDIT AGREEMENT", the terms defined therein being used herein as therein
defined), among the Borrower, the Lenders parties thereto, Chase Bank of Texas,
N.A., as Administrative Agent, The Chase Manhattan Bank, as Auction
Administrative Agent, Citibank, N.A., as Syndication Agent, and Bank of America
National Trust and Savings Association and BankBoston, N.A., as Documentation
Agents. Pursuant to Section 2.21(a) of the Credit Agreement, the Borrower hereby
gives you notice of and requests an extension of the Stated Termination Date
under the Credit Agreement, and in that connection sets forth below the
information relating to such extension:
133
The requested Stated Termination Date is _______________ __, ____.(1)
The undersigned hereby certifies that the following statements are true
on the date hereof, and will be true on the date the Stated Termination Date is
extended:
(a) this Extension Request is being made not earlier than 65 days
prior to and not later than 45 days prior to the Stated Termination Date now in
effect;
(b) no event has occurred and is continuing which constitutes an
Event of Default.
BURLINGTON RESOURCES INC.
By:
--------------------------------------
Name:
Title:
--------------------------
(1) Such requested Stated Termination Date shall be 364 days from the
presently effective Stated Termination Date.
134
EXHIBIT H
FORM OF
OPINION OF SENIOR VICE PRESIDENT, LAW FOR BORROWER
February 23, 1999
To each of the Lenders and the Agents
Referred to Below
c/o Chase Bank of Texas, N.A.
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Ladies and Gentlemen:
This opinion is furnished to you pursuant to Section 3.01(d) of the Short-Term
Revolving Credit Agreement, dated as of February 25, 1998, as amended and
restated as of February 23, 1999 (the "Credit Agreement"), among Burlington
Resources Inc., a Delaware corporation (the "Borrower"), the financial
institutions party thereto (each a "Lender," and together the "Lenders"), Chase
Bank of Texas, N.A., as Administrative Agent for the Lenders, The Chase
Manhattan Bank, as Auction Administrative Agent, Citibank, N.A., as Syndication
Agent, and Bank of America National Trust and Savings Association and
BankBoston, N.A., as Documentation Agents. Unless the context otherwise
requires, all capitalized terms used herein without definition shall have the
meanings ascribed to them in the Credit Agreement.
I am Senior Vice President, Law of the Borrower, and I, or attorneys over whom I
exercise supervision, have acted as counsel for the Borrower in connection with
the preparation, execution and delivery of the Credit Agreement.
In that connection, I or such attorneys have examined:
(1) The Credit Agreement, executed by the parties thereto;
135
(2) The Notes executed by the Borrower; and
(3) The other documents furnished by the Borrower pursuant to
Section 3.01 of the Credit Agreement.
I, or attorneys over whom I exercise supervision, have also examined the
originals, or copies certified to our satisfaction, of the agreements,
instruments and other documents, and all of the orders, writs, judgments,
awards, injunctions and decrees, which affect or purport to affect the
Borrower's ability to perform the Borrower's obligations under the Credit
Agreement or the Notes (collectively referred to herein as the "Documents"). In
addition, I, or attorneys over whom I exercise supervision, have examined the
originals, or copies certified to our satisfaction, of such other corporate
records of the Borrower, certificates of public officials and of officers of the
Borrower, and agreements, instruments and other documents, as I have deemed
necessary as a basis for the opinions hereinafter expressed. In all such
examinations, I, or attorneys over whom I exercise supervision, have assumed the
legal capacity of all natural persons executing documents, the genuineness of
all signatures on original or certified, conformed or reproduction copies of
documents of all parties (other than, with respect to the Documents, the
Borrower), the authenticity of original and certified documents and the
conformity to original or certified copies of all copies submitted to such
attorneys or me as conformed or reproduction copies. As to various questions of
fact relevant to the opinions expressed herein, I have relied upon, and assume
the accuracy of, representations and warranties contained in the Credit
Agreement and certificates and oral or written statements and other information
of or from public officials, officers and/or representatives of the Borrower and
others.
To the extent it may be relevant to the opinions expressed herein, I have
assumed that the parties to the Documents other than the Borrower have the power
to enter into and perform such documents and that such documents have been duly
authorized, executed and delivered by, and constitute legal, valid and binding
obligations of, such parties.
The opinions expressed below are limited to the federal laws of the United
States and, to the extent relevant hereto, the General Corporation Law of the
State of Delaware, as currently in effect. I assume no obligation to supplement
this opinion if any
136
applicable laws change after the date hereof or if I become aware of any facts
that might change the opinions expressed herein after the date hereof.
Based upon the foregoing and upon such investigation as I have deemed necessary,
and subject to the limitations, qualifications and assumptions set forth herein,
I am of the following opinion:
1. The Borrower (i) is a corporation duly incorporated and existing in
good standing under the laws of the State of Delaware, and (ii)
possesses all the corporate powers and all other authorizations and
licenses necessary to engage in its business and operations as now
conducted, the failure to obtain or maintain which would have a
Material Adverse Effect.
2. The execution, delivery and performance by the Borrower of the
Documents are within the Borrower's corporate powers and have been duly
authorized by all necessary corporate action in respect of or by the
Borrower (except to the extent that the Borrower seeks to exercise its
right under Section 2.20 of the Credit Agreement to effect an increase
of Commitments), and do not contravene (i) the Borrower's Certificate
of Incorporation or By-Laws, in each case as amended, (ii) any federal
law, rule or regulation applicable to the Borrower (excluding
provisions of federal law expressly referred to in and covered by the
opinion of ▇▇▇▇▇, Day, ▇▇▇▇▇▇ & ▇▇▇▇▇ delivered to you in connection
with the transactions contemplated hereby), or (iii) any contractual
restriction binding on or affecting the Borrower. The Documents have
been duly executed and delivered on behalf of the Borrower.
3. No authorization or approval or other action by, and no notice to or
filing with, any federal governmental authority or regulatory body
(including, without limitation, the Federal Energy Regulatory
Commission) is required for the due execution, delivery and performance
by the Borrower of the Documents, except those required in the ordinary
course of business in connection with the performance by the Borrower
of its obligations under certain covenants and warranties contained in
the Documents.
4. To the best of my knowledge, there is no action, suit or proceeding
pending or overtly threatened against or involving
137
the Borrower or any of its Material Subsidiaries, which, in my
reasonable judgment (taking into account the exhaustion of all
appeals), would have a material adverse effect upon the consolidated
financial condition of the Borrower and its consolidated Subsidiaries
taken as a whole, or which purports to affect the legality, validity,
binding effect or enforceability of any Document.
These opinions are given as of the date hereof and are solely for your benefit
in connection with the transactions contemplated by the Credit Agreement. These
opinions may not be relied upon by you for any other purpose or relied upon by
any other person for any purpose without my prior written consent.
Very truly yours,
▇. ▇▇▇▇▇ ▇▇▇▇▇▇▇
Senior Vice President, Law
138
EXHIBIT I
FORM OF
OPINION OF ▇▇▇▇▇, DAY, ▇▇▇▇▇▇ & ▇▇▇▇▇, NEW YORK
COUNSEL FOR BORROWER
February 23, 1999
To Each of the Lenders and the Administrative Agent
Referred to Below
c/o Chase Bank of Texas, N.A.
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Re: Short-Term Revolving Credit Agreement, dated as of February 25, 1998, and
amended and restated as of February 23, 1999
Ladies and Gentlemen:
We have acted as special New York counsel for Burlington Resources
Inc., a Delaware corporation (the "Company"), in connection with the Short-Term
Revolving Credit Agreement, dated as of February 25, 1998, and amended and
restated as of February 23, 1999 (as so amended and restated, the "Credit
Agreement"), among the Company, the financial institutions party thereto (each a
"Lender," and together the "Lenders"), Chase Bank of Texas, N.A., as
Administrative Agent for the Lenders, Citibank, N.A., as Syndication Agent for
the Lenders, Bank of America National Trust and Savings Association and
BankBoston, N.A., as Documentation Agents for the Lenders, and The Chase
Manhattan Bank, as Auction Administrative Agent for the Lenders. This opinion is
delivered to you pursuant to Section 3.01(e) of the Credit Agreement.
Capitalized terms used herein and not otherwise defined herein have the meanings
assigned to such terms in the Credit Agreement. The Uniform Commercial Code, as
amended and in effect in the State of New York, is referred to herein as the "NY
UCC." With your permission, all assumptions and statements of reliance herein
have been made without any independent investigation or verification on our part
except to the extent otherwise expressly stated, and we express no opinion with
respect to the subject matter or accuracy of such assumptions or items upon
which we have relied.
139
In connection with the opinions expressed herein, we have examined such
documents, records and matters of law as we have deemed necessary or appropriate
for the purposes of this opinion. We have examined, among other documents, the
following:
(a) A facsimile of an executed copy of the Credit Agreement;
(b) A facsimile of an executed copy of each of the Notes; and
(c) A facsimile of the Officer's Certificate of the Company delivered
to us in connection with this opinion, a copy of which is attached
hereto as Annex A.
The documents referred to in items (a) and (b) above are referred to herein
collectively as the "Documents."
In all such examinations, we have assumed the legal capacity of all
natural persons executing documents, the genuineness of all signatures, the
authenticity of original and certified documents and the conformity to original
or certified copies of all copies submitted to us as conformed or reproduction
copies. As to various questions of fact relevant to the opinions expressed
herein, we have relied upon, and assume the accuracy of, representations and
warranties contained in the Documents and certificates and oral or written
statements and other information of or from representatives of the Company and
others and assume compliance on the part of all parties to the Documents with
their covenants and agreements contained therein. With respect to the opinions
expressed in paragraph (a) below, our opinions are limited (x) to our actual
knowledge of the Company's specially regulated business activities and
properties based solely upon an officer's certificate in respect of such matters
and without any independent investigation or verification on our part and (y) to
our review of only those laws and regulations that, in our experience, are
normally applicable to transactions of the type contemplated by the Documents.
To the extent it may be relevant to the opinions expressed herein, we
have assumed that the parties to the Documents other
140
than the Company have the power to enter into and perform such documents and to
consummate the transactions contemplated thereby and that such documents have
been duly authorized, executed and delivered by, and constitute legal, valid and
binding obligations of, such parties.
Based upon the foregoing, and subject to the limitations,
qualifications and assumptions set forth herein, we are of the opinion that:
(a) The execution and delivery to the Administrative Agent and the
Lenders by the Company of the Documents and the performance by the Company of
its obligations thereunder (i) do not require under present law any filing or
registration by the Company with, or approval or consent to the Company of, any
governmental agency or authority of the State of New York, except those, if any,
required in the ordinary course of business in connection with the performance
by the Company of its obligations under certain covenants contained in the
Documents and (ii) do not violate any present law, or present regulation of any
governmental agency or authority, of the State of New York applicable to the
Company or its property.
(b) Each of the Documents constitutes an enforceable obligation of the
Company in accordance with its terms.
(c) The borrowings by the Borrower under the Credit Agreement and the
applications of the proceeds thereof as provided in the Credit Agreement will
not violate Regulation T, U or X of the Board of Governors of the Federal
Reserve System.
The opinions set forth above are subject to the following
qualifications:
(A) We express no opinion as to:
(i) the effect of any law of any jurisdiction other than
the State of New York wherein the Administrative Agent or any Lender
may be located or wherein enforcement of any document referred to above
may be sought that limits the rates of interest legally chargeable or
collectible; and
141
(ii) any filing, registration, approval or consent of the
Federal Energy Regulatory Commission or any other United States federal
agency or authority needed in connection with the execution, delivery
and performance by the Company of the Documents, the consummation of
the transactions contemplated thereby and compliance with the terms and
conditions thereof.
(B) Our opinions above are subject to (i) applicable bankruptcy,
insolvency, reorganization, fraudulent transfer, voidable preference, moratorium
or similar laws, and related judicial doctrines, from time to time in effect
affecting creditors' rights and remedies generally, (ii) general principles of
equity (including, without limitation, standards of materiality, good faith,
fair dealing and reasonableness, equitable defenses and limits on the
availability of equitable remedies), whether such principles are considered in a
proceeding at law or in equity and (iii) the qualification that certain other
provisions of the Documents may be unenforceable in whole or in part under the
laws (including judicial decisions) of the State of New York or the United
States of America, but the inclusion of such provisions does not affect the
validity as against the Company of the Documents as a whole, and the Documents
contain adequate provisions for enforcing payment of the obligations governed
thereby, subject to the other qualifications contained in this letter.
(C) We express no opinion as to the enforceability of any provision in
the Documents:
(i) permitting the Administrative Agent, any Lender or any
other person or entity to enforce any right or remedy thereunder,
except in compliance with the NY UCC and other applicable federal,
state, local and foreign laws; or
(ii) relating to indemnification, contribution or
exculpation in connection with violations of any securities laws or
statutory duties or public policy, or in connection with willful,
reckless or unlawful acts or gross negligence of the indemnified or
exculpated party or the party receiving contribution; or
142
(iii) relating to exculpation of any party in connection
with its own negligence that a court would determine in the
circumstances under applicable law to be unfair or insufficiently
explicit; or
(iv) providing that any Lender or other person or entity
may exercise set-off rights other than in accordance with and pursuant
to applicable law; or
(v) relating to forum selection to the extent the forum
is a federal court; or
(vi) relating to forum selection to the extent that the
enforceability of any such provision is to be determined by any court
other than a court of the State of New York; or
(vii) relating to choice of governing law to the extent
that the enforceability of any such provision is to be determined by
any court other than a court of the State of New York; or
(viii) specifying that provisions thereof may be waived
only in writing, to the extent that an oral agreement or an implied
agreement by trade practice or course of conduct has been created that
modifies any provision of such Documents; or
(ix) giving any person or entity the power to accelerate
obligations without any notice to the obligor.
(D) Our opinions as to enforceability are subject to the effect of
generally applicable rules of law that:
(i) provide that forum selection clauses in contracts are
not necessarily binding on the court(s) in the forum selected; and
(ii) limit the availability of a remedy under certain
circumstances when another remedy has been elected; and
(iii) may, where less than all of a contract may be
unenforceable, limit the enforceability of the balance of
143
the contract to circumstances in which the unenforceable portion is not
an essential part of the agreed exchange; and
(iv) govern and afford judicial discretion regarding the
determination of damages and entitlement to attorneys' fees and other
costs.
(E) We express no opinion as to the enforceability of any purported
waiver, release, variation, disclaimer, consent or other agreement to similar
effect (all of the foregoing, collectively, a "Waiver") by the Company under any
of the Documents to the extent limited by provisions of applicable law
(including judicial decisions), or to the extent that such a Waiver applies to a
right, claim, duty, defense or ground for discharge otherwise existing or
occurring as a matter of law (including judicial decisions), except to the
extent that such a Waiver is effective under and is not prohibited by or void or
invalid under applicable law (including judicial decisions).
(F) For purposes of our opinions above, insofar as they relate to the
Company, we have assumed that (i) the Company is a corporation validly existing
in good standing in its jurisdiction of incorporation, has all requisite power
and authority, and has obtained all requisite corporate, shareholder, third
party and governmental authorizations, consents and approvals, and made all
requisite filings and registrations, necessary to execute, deliver and perform
the Documents (except to the extent noted in paragraph (a) above), and that such
execution, delivery and performance will not violate or conflict with any law,
rule, regulation, order, decree, judgment, instrument or agreement binding upon
or applicable to it or its properties (except to the extent noted in paragraph
(a) above, and (ii) the Documents have been duly executed and delivered by the
Company.
(G) For purposes of the opinions set forth in paragraph (c) above, we
have assumed that (i) neither the Administrative Agent nor any of the Lenders
has or will have the benefit of any agreement or arrangement (excluding the
Documents) pursuant to which any Advances are directly or indirectly secured by
▇▇▇▇▇▇ ▇▇▇▇▇, (ii) neither the Administrative Agent nor any of the Lenders nor
any of their respective affiliates has extended or will extend any other credit
to the Company directly or indirectly secured by ▇▇▇▇▇▇ ▇▇▇▇▇ and (iii) neither
the
144
Administrative Agent nor any of the Lenders has relied or will rely upon any
Margin Stock as collateral in extending or maintaining any Advances pursuant to
the Credit Agreement.
We express no opinion as to the effect of the compliance or
noncompliance of each of the addressees with any state or federal laws or
regulations applicable to each of them by reason of their status as or
affiliation with a federally insured depository institution, except as expressly
set forth in paragraph (c) above.
The opinions expressed herein are limited to the federal laws of the
United States of America (in the case of the matters covered in paragraph (c)
above) and the laws of the State of New York (in the case of the matters covered
in paragraphs (a) and (b) above), as currently in effect. Our opinions are
limited to those expressly set forth herein, and we express no opinions by
implication.
The opinions expressed herein are solely for the benefit of the
Administrative Agent and the Lenders and may not be relied on in any manner or
for any purpose by any other person or entity.
Very truly yours,
▇▇▇▇▇, DAY, ▇▇▇▇▇▇ & ▇▇▇▇▇
145
EXHIBIT J
FORM OF
DESIGNATION AGREEMENT
Dated ___________
Reference is made to the Short-Term Revolving Credit Agreement dated as
of February 25, 1998, as amended and restated as of February 23, 1999 (such
agreement, as in effect on the date hereof and as it may hereafter be amended,
modified or supplemented from time to time, being the "CREDIT AGREEMENT") among
Burlington Resources Inc., a Delaware corporation (the "BORROWER"), the Lenders
party thereto (the "LENDERS"), Chase Bank of Texas, N.A., as Administrative
Agent for the Lenders (the "ADMINISTRATIVE AGENT"), The Chase Manhattan Bank, as
Auction Administrative Agent, Citibank, N.A., as Syndication Agent for the
Lenders, and Bank of America National Trust and Savings Association and
BankBoston, N.A., as Documentation Agents. Terms defined in the Credit Agreement
are used herein with the same meaning.
______________ (the "DESIGNATOR"), ____________ (the "DESIGNEE"), and
Burlington Resources Inc., a Delaware corporation (the "BORROWER"), agree as
follows:
1. The Designator designates the Designee, and the Designee hereby
accepts such designation, to have a right to make B Advances pursuant to Section
2.19 of the Credit Agreement.
2. The Designator makes no representations or warranties and assumes
no responsibility with respect to (i) any statements, warranties or
representations made in or in connection with the Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Credit Agreement or any other instrument or document furnished pursuant
thereto and (ii) the financial condition of the Borrower or the performance or
observance by the Borrower of any of its obligations under the Credit Agreement
or any other instrument or document furnished pursuant thereto.
3. The Designee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements referred to
in Section 4.01 thereof and such other
146
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Designation Agreement; (ii) agrees that
it will, independently and without reliance upon the Administrative Agent, the
Designator or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement; (iii) confirms that it
is a Designated Bidder; (iv) appoints and authorizes the Administrative Agent to
take such action as agent on its behalf and to exercise such powers under the
Credit Agreement as are delegated to the Administrative Agent by the terms
thereof, together with such powers as are reasonably incidental thereto; (v)
agrees that it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Agreement are required to be
performed by it as a Lender; and (vi) specifies as its Applicable Lending Office
with respect to B Advances (and address for notices) the offices set forth
beneath its name on the signature pages hereof.
4. Following the execution of this Designation Agreement by the
Designator, the Designee and the Borrower, it will be delivered to the
Administrative Agent for acceptance and recording by the Administrative Agent.
The effective date of this Designation Agreement shall be the date of acceptance
thereof by the Administrative Agent, unless otherwise specified on the signature
page hereto (the "EFFECTIVE DATE").
5. Upon such acceptance and recording by the Administrative Agent, as
of the Effective Date, the Designee shall be a party to the Credit Agreement
with a right to make B Advances as a Lender pursuant to Section 2.19 of the
Credit Agreement and the rights and obligations of a Lender related thereto.
6. This Designation Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.
IN WITNESS WHEREOF, the parties have caused this Designation Agreement
to be executed by their respective officers thereunto duly authorized, as of the
date first above written.
Effective Date:(2)
_______________, 19___
-------------------------
(2) This date should be no earlier than the date of acceptance by the
Administrative Agent.
147
[NAME OF DESIGNATOR]
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
[NAME OF DESIGNEE]
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
Applicable Lending Office
(and addresses for notices)
[Address
BURLINGTON RESOURCES INC.
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
Accepted and Approved this
____ day of ___________, 19__
CHASE BANK OF TEXAS, N.A.,
as Administrative Agent
By:
--------------------------------
Name:
Title:
