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U.S. $300,000,000 Exhibit 10.24
364 DAY COMPETITIVE ADVANCE/REVOLVING CREDIT AGREEMENT
among
UNION PACIFIC RESOURCES GROUP INC.,
as Borrower
and
TEXAS COMMERCE BANK NATIONAL ASSOCIATION,
as Administrative Agent
and
THE CHASE MANHATTAN BANK,
as Auction Administration Agent
BANK OF AMERICA NT&SA,
as Documentation Agent
NATIONSBANK OF TEXAS, N.A.,
as Syndication Agent
and
THE BANKS NAMED HEREIN,
as Banks
Dated as of November 25, 1997
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364 DAY COMPETITIVE ADVANCE/REVOLVING CREDIT AGREEMENT
This 364 DAY COMPETITIVE ADVANCE/REVOLVING CREDIT AGREEMENT is
entered into as of November 25, 1997, among UNION PACIFIC RESOURCES GROUP INC.,
a Utah corporation (the "Borrower"), the Banks (hereinafter defined), TEXAS
COMMERCE BANK NATIONAL ASSOCIATION, as Administrative Agent (hereinafter
defined), THE CHASE MANHATTAN BANK, as Auction Administration Agent (hereinafter
defined), BANK OF AMERICA NT&SA, as Documentation Agent (as hereinafter
defined), and NATIONSBANK OF TEXAS, N.A., as Syndication Agent (as hereinafter
defined).
ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01 Certain Defined Terms. As used in this Agreement,
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):
"Adjusted CD Rate" means, for each Adjusted CD Rate Advance
comprising part of the same Contract Borrowing, an interest rate per annum equal
to the lesser of (i) the Maximum Rate and (ii) the sum of (a) a rate per annum
equal to the product of (i) the Fixed CD Rate in effect for the Interest Period
then applicable to such Advance and (ii) 1.00 plus the Domestic Reserve
Percentage, plus (b) the Assessment Rate. For purposes hereof, the term "Fixed
CD Rate" shall mean the arithmetic average (rounded upwards, if necessary, to
the next 1/100 of 1%) of the prevailing rates per annum bid at or about 10:00
a.m. (New York City time) to Administrative Agent on the first Business Day of
the Interest Period then applicable to such Contract Borrowing by three
negotiable certificate of deposit dealers of recognized standing for the
purchase at face value of negotiable certificates of deposit of Administrative
Agent in a principal amount approximately equal to Administrative Agent's
portion of such Contract Borrowing and with a maturity comparable to such
Interest Period.
"Adjusted CD Rate Advance" means a Contract Advance that bears
interest based on the Adjusted CD Rate.
"Adjusted CD Rate Contract Borrowing" means a Contract
Borrowing that bears interest based on the Adjusted CD Rate.
"Administrative Agent" means Texas Commerce Bank National
Association, and its permitted successor or successors as administrative agent
for the Banks under this Agreement.
"Advance" means any Contract Advance or Competitive Advance.
"Affiliate" of a Person means any other individual or entity
who directly or indirectly controls, is controlled by, or is under common
control with that Person; provided that, for purposes of Sections 4.01(k) and
5.02(g) hereof, the Subsidiaries of Borrower shall not be considered Affiliates
of the Borrower or any Subsidiary (including any Restricted Subsidiary), and
Borrower shall not be considered an "Affiliate" of a Subsidiary (including any
Restricted Subsidiary). For purposes of such definition, "control," "controlled
by," and "under common control with" mean possession, directly or indirectly, of
power to direct or cause the direction of management or policies (whether
through ownership of voting securities or other interests, by contract, or
otherwise).
"Agent" means, collectively, Administrative Agent,
Documentation Agent, Syndication Agent, and Auction Administration Agent.
"Agreement" means this Agreement, as amended, modified and
supplemented from time to time, including, without limitation, any such
supplement in respect of Competitive Advances under Section 2.03.
"Alternate Base Rate" means, for any day, a rate per annum
equal to the lesser of (i) the Maximum Rate and (ii) the greatest of (a) the
Prime Rate in effect on such day, (b) the Base CD Rate in effect on such day
plus 1% and (c) the Federal Funds Effective Rate in effect on such day plus 1/2
of 1%. For purposes hereof, "Prime Rate" shall mean the rate of interest per
annum publicly announced from time to time by the Administrative Agent as its
prime rate in effect at its principal office in Houston, Texas (which prime rate
may not necessarily represent the lowest or best rate actually charged to a
customer); each change in the Prime Rate shall be effective on the date such
change is publicly announced as effective. "Base CD Rate" shall mean the sum of
(a) the product of (i) the Three-Month Secondary CD Rate and (ii) 1.00 plus the
Domestic Reserve Percentage and (b) the Assessment Rate. "Three-Month Secondary
CD Rate" shall mean, for any day, the secondary market rate for three-month
certificates of deposit reported as being in effect on such day (or, if such day
shall not be a Business Day, the next preceding Business Day) by the Board of
Governors of the Federal Reserve System through the public information telephone
line of the Federal Reserve Bank of New York (which rate will, under the current
practices of such Board, be published in Federal Reserve Statistical Release
H.15(519) during the week following such day), or, if such rate shall not be so
reported on such day or such next preceding Business Day, the average (rounded
upwards, if necessary, to the next 1/16 of 1%) of the secondary market
quotations for three-month certificates of deposit of major money center banks
received at approximately 10:00 a.m. (New York City time) on such day (or, if
such day shall not be a Business Day, on the next preceding Business Day) by the
Administrative Agent from three New York City negotiable certificate of deposit
dealers of recognized standing selected by it. "Federal Funds Effective Rate"
shall mean, for any day, the weighted average (rounded upwards, if necessary, to
the next 1/16 of 1%) of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of
Dallas, or, if such rate is not so published for any day which is a Business
Day, the average (rounded upwards, if necessary, to the next 1/16 of 1%) of the
quotations for the day of such transactions received by the Administrative Agent
from three Federal funds brokers of recognized standing selected by it. If for
any reason the Administrative Agent shall have determined (which determination
shall be conclusive absent manifest error) that it is unable to ascertain the
Base CD Rate or the Federal Funds Effective Rate or both for any reason,
including the inability of the Administrative Agent to obtain sufficient
quotations in accordance with the terms hereof, the Alternate Base Rate shall be
determined without regard to clause (b) or (c),or both, of the first sentence of
this definition, as appropriate, until the circumstances giving rise to such
inability no longer exist. Any change in the Alternate Base Rate due to a change
in the Maximum Rate, Prime Rate, the Three-Month Secondary CD Rate or the
Federal Funds Effective Rate shall be effective on the effective date of such
change in the Maximum Rate, Prime Rate, the Three-Month Secondary CD Rate or the
Federal Funds Effective Rate, respectively.
"Alternate Base Rate Advance" means a Contract Advance which
bears interest computed at the Alternate Base Rate.
"Applicable Margin" means, on any date of determination of the
interest rate for any Adjusted CD Rate Contract Borrowing or Eurodollar Rate
Contract Borrowing or of any Facility Fees, the applicable percentage set forth
in the table below for the Type of Borrowing or Facility Fees, as appropriate,
which corresponds to the ratings (or implied ratings) established by both S&P
and Moody's applicable to the Borrower's senior, unsecured, non-credit-enhanced
long term indebtedness for borrowed money ("Index Debt") on such date of
determination:
Applicable Margin Applicable Margin
for Adjusted CD for Eurodollar Applicable
Ratings Rate Contract Rate Contract Margin for
Borrowings Borrowings Facility Fees
===================================== ================== ================= =============
Category 1
----------
Equal to or higher than A by S&P; .295% .17% .055%
Equal to or higher than A2 by Moody's
2
Applicable Margin Applicable Margin
for Adjusted CD for Eurodollar Applicable
Ratings Rate Contract Rate Contract Margin for
Borrowings Borrowings Facility Fees
===================================== ================== ================= =============
Category 2
----------
A- by S&P; .315% .19% .06%
A3 by Moody's
Category 3
----------
BBB+ by S&P; .35% .225% .075%
Baa1 by Moody's
Category 4
----------
BBB by S&P; .40% .275% .10%
Baa2 by Moody's
Category 5
----------
Lower than BBB by S&P; .425% .30% .15%
Lower than Baa2 by Moody's
For purposes of the foregoing, (i) if neither Moody's nor S&P shall have in
effect a rating for Index Debt (other than by reason of the circumstances
referred to in the last sentence of this definition), then both such rating
agencies will be deemed to have established ratings for Index Debt in Category
5; (ii) if only one of Moody's or S&P shall have in effect a rating for Index
Debt, the Borrower and the Banks will negotiate in good faith to agree upon
another rating agency to be substituted by an amendment to this Agreement for
the rating agency which shall not have a rating in effect, and in the absence of
such amendment the Applicable Margin will be determined by reference to the
available rating; (iii) if the ratings established by Moody's and S&P shall fall
within different Categories, the Applicable Margin shall be determined by
reference to the numerically lower Category; (for example, if the rating from
S&P is in Category 1 and the rating from Xxxxx'x is in Category 2, the
Applicable Margin shall be determined by reference to Category 1); and (iv) if
any rating established by Moody's or S&P shall be changed (other than as a
result of a change in the rating system of either Moody's or S&P), such change
shall be effective as of the date on which such change is first announced by the
rating agency making such change. Each change in the Applicable Margin shall
apply during the period commencing on the effective date of such change and
ending on the date immediately preceding the effective date of the next such
change. If the rating system of either Moody's or S&P shall change prior to the
Maturity Date, the Borrower and the Banks shall negotiate in good faith to amend
the references to specific ratings in this definition to reflect such changed
rating system. If both Moody's and S&P shall cease to be in the business of
rating corporate debt obligations, the Borrower and the Banks shall negotiate in
good faith to agree upon a substitute rating agency and to amend the references
to specific ratings in this definition to reflect the ratings used by such
substitute rating agency.
"Applicable Lending Office" means, with respect to each Bank,
such Bank's Domestic Lending Office in the case of an Alternate Base Rate
Advance, such Bank's CD Lending Office in the case of an Adjusted CD Rate
Advance, such Bank's Eurodollar Lending Office in the case of a Eurodollar Rate
Contract Advance and, in the case of a Competitive Advance, the office or
affiliate of such Bank notified by such Bank to the Borrower and the
Administrative Agent as such Bank's Applicable Lending Office with respect to
such Competitive Advance.
"Applicable Rate" means:
(i) with respect to Adjusted CD Rate
Advances, the Adjusted CD Rate plus the Applicable
Margin for Adjusted CD Rate Contract Borrowings;
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(ii) with respect to Alternate Base Rate
Advances, the Alternate Base Rate; and
(iii) with respect to Eurodollar Rate
Contract Advances, the Eurodollar Rate plus the
Applicable Margin for Eurodollar Rate Contract
Borrowings;.
"Assessment Rate" means for any date of determination, the
annual rate (rounded upwards, if necessary, to the next 1/100 of 1%) most
recently estimated by the Administrative Agent as the then current net annual
assessment rate that will be employed in determining amounts payable by the
Administrative Agent to the Federal Deposit Insurance Corporation (or any
successor) for insurance by such Corporation (or such successor) of time
deposits made in dollars at the Administrative Agent's domestic offices.
"Assignment and Acceptance" means an assignment and acceptance
entered into by a Bank and an Eligible Assignee, and accepted by the
Administrative Agent, in substantially the form of Exhibit B hereto.
"Auction Administration Agent" means The Chase Manhattan Bank
and its successors as Auction Administration Agent under this Agreement.
"Banks" means the financial institutions named on Schedule I
(as the same may be amended from time to time by Administrative Agent to reflect
assignments made in accordance with Section 8.07 of this Agreement), and any and
all other financial institutions which from time to time become parties to this
Agreement pursuant to the terms and conditions of Section 8.07 of this
Agreement.
"Borrowing" means a Contract Borrowing or a Competitive
Borrowing.
"Business Day" means a day of the year on which banks are not
required or authorized to close in Dallas, Texas, and, if the applicable
Business Day relates to any Eurodollar Rate Advances, on which dealings are
carried on in the London interbank market.
"CD Lending Office" means, with respect to any Bank, the
office or affiliate of such Bank specified as its "CD Lending Office" opposite
its name on Schedule I hereto or in the Assignment and Acceptance pursuant to
which it became a Bank (or, if no such office or affiliate is specified, its
Domestic Lending Office), or such other office or affiliate of such Bank as such
Bank may from time to time specify to the Borrower and the Administrative Agent.
"Closing Date" means the date upon which this Agreement is
executed and delivered and all conditions precedent specified in Section 3.01
have been satisfied or waived.
"Code" means the Internal Revenue Code of 1986, as the same
may be amended from time to time.
"Commitment" has the meaning specified in Section 2.01(a).
"Competitive Advance" means an advance by a Bank to the
Borrower as part of a Competitive Borrowing resulting from the competitive
bidding procedure described in Section 2.03, and refers to a Fixed Rate
Competitive Advance or a Eurodollar Rate Competitive Advance.
"Competitive Borrowing" means a Borrowing consisting of
simultaneous Competitive Advances of the same Type from each of the Banks whose
offer to make a Competitive Advance as part of such Borrowing has been accepted
by the Borrower under the competitive bidding procedure described in Section
2.03.
"Competitive Reduction" means, as to any Bank as at any date,
an amount equal to such Bank's pro rata (in accordance with the Commitments)
share of the aggregate amount of all Competitive Advances outstanding on such
date (giving effect to the payment of any Competitive Advances to be made on
such date).
4
"Contract Advance" means an advance by a Bank to the Borrower
as part of a Contract Borrowing and refers to an Adjusted CD Rate Advance, an
Alternate Base Rate Advance, or a Eurodollar Rate Contract Advance.
"Contract Borrowing" means a Borrowing consisting of
simultaneous Contract Advances of the same Type made ratably by all of the Banks
pursuant to Section 2.01(a).
"Debt" means (i) indebtedness for borrowed money, (ii)
obligations evidenced by bonds, debentures, notes or other similar instruments,
(iii) obligations to pay the deferred purchase price of property (excluding
obligations under agreements for the purchase of goods in the normal course of
business, but including obligations under agreements relating to the issuance of
performance letters of credit or acceptance financing), (iv) obligations as
lessee under leases which shall have been or should be, in accordance with
generally accepted accounting principles, recorded as capital leases, (v)
obligations as account party under all letters of credit, and without
duplication, all drafts drawn and unpaid thereunder; (vi) obligations under
direct or indirect guaranties in respect of, and obligations (contingent or
otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor
against loss in respect of, indebtedness or obligations of others of the kinds
referred to in clauses (i) through (v) above; and (vii) liabilities in respect
of unfunded vested benefits under Plans covered by Title IV of ERISA; provided
that, "Debt" of the Borrower and its Subsidiaries shall not include (a) any
rental obligations, guaranties, or other lease obligations or financial
assurances existing on the date of this Agreement and relating to the leveraged
lease of the Corpus Christi, Texas, petrochemical complex and refinery, or (b)
any obligations as account party under letters of credit issued in connection
with, or in lieu of, any obligations described in the preceding clause (a)
arising at any time after the date of this Agreement.
"Documentation Agent" means Bank of America NT&SA, and its
permitted successor or successors as documentation agent for the Banks under
this Agreement.
"Domestic Lending Office" means, with respect to any Bank, the
office or affiliate of such Bank specified as its "Domestic Lending Office"
opposite its name on Schedule I hereto or in the Assignment and Acceptance
pursuant to which it became a Bank, or such other office or affiliate of such
Bank as such Bank may from time to time specify to the Borrower and the
Administrative Agent.
"Domestic Reserve Percentage" means, for any Interest Period,
the reserve percentage applicable on the first day of such Interest Period under
regulations issued from time to time by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maximum reserve
requirement (including, but not limited to, any emergency, supplemental, or
other marginal reserve requirement) for a member bank of the Federal Reserve
System in Dallas, Texas, with deposits exceeding one billion dollars with
respect to liabilities consisting of or including (among other liabilities) U.S.
dollar nonpersonal time deposits in the United States with a maturity equal to
such Interest Period.
"EBITDAX" means with respect to any Person for any period of
calculation the sum of (i) operating income (before adjustments for income
taxes, interest expense, or extraordinary gains or losses) for such period, (ii)
depreciation, depletion, and amortization for such period, and (iii) exploration
expenses for such period all determined in accordance with generally accepted
accounting principles.
"Eligible Assignee" means: (a) any of the following entities,
if approved in writing by the Borrower (if no Event of Default then exists) and
Administrative Agent: (i) a commercial bank organized under the laws of the
United States, or any state thereof, and having total assets in excess of
$3,000,000,000 and a combined capital and surplus of at least $150,000,000; (ii)
a commercial bank organized under the laws of any other country which is a
member of the OECD, or a political subdivision of any such country, and having
total assets in excess of $3,000,000,000 and a combined capital and surplus of
at least $150,000,000, provided that such bank is acting through a branch or
agency located in the United States, in the country in which it is organized or
in another country which is also a member of the OECD; and (iii) the central
bank of any country which is a member of the OECD, or (b) a Bank or an Affiliate
of any Bank.
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time.
5
"ERISA Affiliate" means any trade or business (whether or not
incorporated) which is a member of a group of which the Borrower is a member and
which is under common control within the meaning of the regulations under
Section 414 of the Code.
"Eurocurrency Liabilities" has the meaning assigned to that
term in Regulation D of the Board of Governors of the Federal Reserve System (or
any successor regulation), as in effect from time to time.
"Eurodollar Lending Office" means, with respect to any Bank,
the office or affiliate of such Bank specified as its "Eurodollar Lending
Office" opposite its name on Schedule I hereto or in the Assignment and
Acceptance pursuant to which it became a Bank (or, if no such office or
affiliate is specified, its Domestic Lending office), or such other office or
affiliate of such Bank as such Bank may from time to time specify to the
Borrower and the Administrative Agent.
"Eurodollar Rate" means, for each Eurodollar Rate Advance
comprising part of the same Borrowing, an interest rate per annum equal to the
lesser of (1) the Maximum Rate and (2) a rate of interest determined on the
basis of at least two offered rates for deposits in United States dollars for a
period equal to the applicable Interest Period commencing on the first day of
such Interest Period, appearing on the Reuters Screen LIBO Page as of 11:00 a.m.
(London time) on the day that is two Business Days prior to the first day of the
Interest Period. If at least two such offered rates appear on the Reuters Screen
LIBO Page, the rate with respect to such Interest Period will be the arithmetic
average (rounded upwards to the next 1/16th of 1%) of such offered rates. If
fewer than two offered rates appear, "Eurodollar Rate" in respect of any
Interest Period will be determined on the basis of the rates at which deposits
in United States dollars are offered by the Administrative Agent at
approximately 11:00 a.m. (London time) on the day that is two Business Days
preceding the first day of such Interest Period to prime banks in the London
interbank market for a period equal to such Interest Period commencing on the
first day of such Interest Period.
"Eurodollar Rate Advance" means any Eurodollar Rate Contract
Advance or Eurodollar Rate Competitive Advance.
"Eurodollar Rate Competitive Advance" means a Competitive
Advance which bears interest based on the Eurodollar Rate.
"Eurodollar Rate Contract Advance" means a Contract Advance
which bears interest based on the Eurodollar Rate.
"Eurodollar Rate Contract Borrowing" means a Contract
Borrowing that bears interest based on the Eurodollar Rate.
"Eurodollar Rate Reserve Percentage" of any Bank for any
Eurodollar Rate Advance means the reserve percentage applicable to such Bank on
(i) in the case of a Contract Advance, the first day of the Interest Period then
applicable to such Contract Advance and (ii) in the case of a Competitive
Advance, the date of such Competitive Advance, under regulations issued from
time to time by the Board of Governors of the Federal Reserve System (or any
successor) for determining the reserve requirement (including, without
limitation, any emergency, supplemental or other marginal reserve requirement)
under Regulation D promulgated by the Board of Governors of the Federal Reserve
System, or any successor or supplemental regulations, then applicable to such
Bank with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities having a term equal to such Interest Period or the term
of such Competitive Advance, as the case may be.
"Events of Default" has the meaning specified in Section 6.01.
"Existing Credit Agreement" means that certain Competitive
Advance/Revolving Credit Agreement dated as of April 16, 1996 (as amended,
extended, renewed, or restated), by and among Borrower, Texas Commerce Bank
National Association as Administrative Agent, The Chase Manhattan Bank as
Auction Administration Agent, Bank of
6
America NT&SA as Documentation Agent, NationsBank of Texas, N.A. as Syndication
Agent, and certain other Banks named therein.
"Financial Officer" of any corporation shall mean the chief
financial officer, principal accounting officer, Treasurer, or Controller of
such corporation.
"Fixed Rate" means an interest rate per annum (expressed in
the form of a decimal to no more than four decimal places) specified by a Bank
making a Competitive Advance under the competitive bidding procedure described
in Section 2.03.
"Fixed Rate Competitive Advance" means a Competitive Advance
which bears interest based on the Fixed Rate.
"Index Debt" has the meaning specified in the definition of
"Applicable Margin" in Section 1.01.
"Interest Period" means, (i) for each Contract Advance
comprising part of the same Contract Borrowing, the period commencing on the
date of such Contract Advance or on the last day of the immediately preceding
Interest Period applicable to such Contract Advance, as the case may be, and
ending on the last day of the period selected by the Borrower pursuant to the
provisions below; or (ii) for each Competitive Advance comprising part of the
same Competitive Borrowing, the period commencing on the date of such
Competitive Advance, as the case may be, and ending on the maturity selected by
the Borrower pursuant to the provisions of Section 2.03(a). The duration of each
such Interest Period shall be (a) in the case of an Alternate Base Rate Advance,
until the next succeeding March 31, June 30, September 30, or December 31, (b)
in the case of an Adjusted CD Rate Advance, 30, 60, 90, or 180 days (by notice
to Administrative Agent pursuant to Section 2.02(a)), and (c) in the case of a
Eurodollar Rate Advance, 1 month or 2, 3, or 6 months, as the Borrower may
select (in the case of Contract Advance) by notice to the Administrative Agent
pursuant to Section 2.02(a), and in the case of Competitive Advances, by notice
to Administrative Agent pursuant to Section 2.03(a); provided, however, that:
(i) Interest Periods commencing on the same
date for Contract Advances comprising part of the
same Contract Borrowing shall be of the same
duration;
(ii) whenever the last day of any Interest
Period would otherwise occur on a day other than a
Business Day in both Dallas, Texas and London, the
last day of such Interest Period shall be extended to
occur on the next succeeding Business Day in both
such cities, provided, in the case of any Interest
Period for a Eurodollar Rate Advance, that if such
extension would cause the last day of such Interest
Period to occur in the next following calendar month,
the last day of such Interest Period shall occur on
the next preceding Business Day in both such cities;
and
(iii) no Interest Period shall end on a date
later than the Maturity Date.
"Lien" means any mortgage, pledge, lien, encumbrance, charge,
or security interest of any kind, granted, or created to secure Debt.
"Loan Papers" means (a) this Agreement, certificates delivered
pursuant to this Agreement, and Exhibits and Schedules thereto; and (b) all
renewals, extensions, restatements of, or supplements, or amendments to any of
the foregoing.
"Majority Banks" means at any time Banks that in the aggregate
(a) hold at least 51% of the Commitments, and (b) after the expiry or
termination of the Commitments, hold at least 51% of the aggregate unpaid
principal amount of the Advances.
"Material Plan" means either (i) a Plan under which the
present value of the vested benefits exceeds the fair market value of the assets
of such Plan allocable to such benefits by more than $20,000,000 or (ii) a Plan
whose assets have a market value in excess of $100,000,000.
7
"Maturity Date" November 23, 1998 (or such later date to which
the Commitments are extended in accordance with Section 2.10).
"Maximum Amount" and "Maximum Rate" means, for each Bank, the
maximum non-usurious amount and the maximum non-usurious rate of interest which,
under applicable law, such Bank is permitted to contract for, charge, take,
reserve, or receive on the Obligation.
"Moody's" means Xxxxx'x Investors Service, Inc. or any
successor thereto.
"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 three plan years made or accrued an obligation to make contributions.
"Notice of Contract Borrowing" has the meaning specified in
Section 2.02(a).
"Notice of Competitive Borrowing" has the meaning specified in
Section 2.03(a).
"Obligation" means all present and future indebtedness,
liabilities, and obligations, and all renewals and extensions thereof, or any
part thereof, now or hereafter owed to Administrative Agent or any Bank by the
Borrower arising from, by virtue of, or pursuant to any Loan Paper, together
with all interest accruing thereon, fees, costs, and expenses payable under the
Loan Papers.
"OECD" means the Organization for Economic Cooperation and
Development.
"Participating Bank" has the meaning specified in Section
2.03(a)(v).
"PBGC" means the Pension Benefit Guaranty Corporation and any
entity succeeding to any or all of its functions under ERISA.
"Person" means an individual, partnership, corporation
(including a business trust), joint stock company, trust, unincorporated
association, joint venture or other entity, or a government or any political
subdivision or agency thereof.
"Plan" means an employee benefit plan (other than a
Multiemployer Plan) maintained for employees of the Borrower or any ERISA
Affiliate and covered by Title IV of ERISA.
"Principal Property" means (i) any property owned or leased by
the Borrower or any Subsidiary, or any interest of the Borrower or any
Subsidiary in property, which is considered by the Borrower to be capable of
producing oil, gas, or minerals in commercial quantities, (ii) any refinery,
smelter, processing, or manufacturing plant owned or leased by the Borrower or
any Subsidiary, (iii) all present and future oil, gas, other liquid and gaseous
hydrocarbons, and other minerals now or hereafter produced from any other
Principal Property or to which the Borrower or its Subsidiaries may be entitled
as a result of its ownership of any Principal Property, and (iv) all real and
personal assets owned or leased by Borrower or any Subsidiary used in the
drilling, gathering, processing, transportation, or marketing of any oil, gas,
other liquid and gaseous hydrocarbons, or minerals, except (a) any such real or
personal assets related thereto employed in transportation, distribution, or
marketing or (b) any refinery, smelter, processing, or manufacturing plant, or
portion thereof, which property described in clauses (a) or (b) hereof, in the
opinion of the Board of Directors of the Borrower, is not a principal plant or
principal facility in relation to the activities of the Borrower and its
Restricted Subsidiaries taken as a whole.
"Principal Subsidiaries" means those Subsidiaries listed on
Schedule II hereto, as such Schedule may be amended and supplemented from time
to time.
"Register" has the meaning specified in Section 8.07(c).
8
"Reportable Event" means an event described in Section 4043(b)
of ERISA with respect to which the 30-day notice requirement has not been waived
by the PBGC.
"Restricted Subsidiary" means any Subsidiary which owns or
leases (as lessor or lessee) a Principal Property, but does not include any
Subsidiary the principal business of which is leasing machinery, equipment,
vehicles, or other properties none of which is a Principal Property, or
financing accounts receivable, or engaging in ownership and development of any
real property which is not a Principal Property.
"S&P" means Standard and Poor's Rating Group, a division of
McGraw Hill, Inc., a New York corporation, or any successor thereto.
"Subsidiary" of a Person means any corporation or other
similar entity of which more than 50% of the outstanding capital stock having
ordinary voting power to elect a majority of the Board of Directors of such
corporation or entity (irrespective of whether or not at the time capital stock
of any other class or classes of such corporation or entity shall or might have
voting power upon the occurrence of any contingency) is at the time directly or
indirectly owned by such Person, by such Person and one or more other
Subsidiaries of such Person, or by one or more other Subsidiaries of such
Person.
"Syndication Agent" means NationsBank of Texas, N.A., and its
permitted successor or successors as Syndication Agent under this Agreement.
"Termination Date" means the Maturity Date or the earlier date
of termination in whole of the Commitments pursuant to Section 2.06 or 6.01.
"Termination Event" means (i) a "Reportable Event" described
in Section 4043 of ERISA and the regulations issued thereunder (other than a
"Reportable Event" not subject to the provision for 30-day notice to the PBGC
under such regulations), or (ii) the withdrawal of the Borrower or any of its
ERISA Affiliates from a Plan during a plan year in which it was a "substantial
employer" as defined in Section 4001(a)(2) of ERISA, 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, or (v) 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.
"Type", when used in respect of any Advance or Borrowing,
refers to the Rate by reference to which interest on such Advance or on the
Advances comprising such Borrowing is determined. For purposes hereof, "Rate"
shall include the Eurodollar Rate, the Adjusted CD Rate, the Alternate Base
Rate, and the Fixed Rate.
SECTION 1.02 Computation of Time Periods. In this Agreement in
the computation of periods of time from a specified date to a later specified
date, the word "from" means "from and including" and the words "to" and "until"
each means "to but excluding".
SECTION 1.03 Accounting Terms. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles from time to time in effect, and all accounting
principles shall be applied on a consistent basis so that the accounting
principles in a current period are comparable in all respects to those applied
during the preceding comparable period.
SECTION 1.04 Number and Gender of Words. Whenever in any Loan
Papers the singular number is used, the same shall include the plural, where
appropriate, and vice versa, and words of any gender shall include each other
gender, where appropriate.
9
ARTICLE II. AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01 The Contract Advances.
(a) Each Bank severally agrees, on the terms and
conditions hereinafter set forth, to make Contract Advances to the Borrower from
time to time on any Business Day during the period from the Closing Date until
the Termination Date in an aggregate amount not to exceed at any time
outstanding the amount set opposite such Bank's name on Schedule I, as such
amount may be reduced pursuant to Section 2.06 or increased pursuant to Section
2.17 or reduced or increased by Section 8.07 (such Bank's obligation to make
such Contract Advances being hereinafter referred to as such Bank's
"Commitment"); provided, however, that at no time shall the aggregate
outstanding principal amount of Contract Advances and Competitive Advances
exceed the aggregate amount of the Commitments. Each Contract Borrowing shall be
in an aggregate amount of not less than $10,000,000 (subject to the terms of
this Section 2.01(a)) or an integral multiple of $1,000,000 in excess thereof
and shall consist of Contract Advances of the same Type made on the same day by
the Banks ratably accordingly to their respective Commitments.
(b) Within the limits and on the conditions set forth
in this Section 2.01, the Borrower may from time to time borrow under this
Section 2.01, prepay under Section 2.07(c), and reborrow under this Section
2.01.
SECTION 2.02 Making the Contract Advances.
(a) Each Contract Borrowing shall be made on notice,
given (i) in the case of a Borrowing consisting of Alternate Base Rate Advances,
not later than 10:30 a.m. (New York City time) on the day of the proposed
Borrowing; (ii) in the case of a Borrowing consisting of Adjusted CD Rate
Advances, not later than 10:30 a.m. (New York City time) on the second Business
Day prior to the day of the proposed Borrowing; and (iii) in the case of a
Borrowing consisting of Eurodollar Rate Contract Advances, not later than 10:30
a.m. (New York City time) on the third Business Day prior to the date of the
proposed Contract Borrowing, by the Borrower to the Administrative Agent, which
shall give to each Bank prompt notice thereof by cable or telecopy. Each such
notice of a Contract Borrowing (a "Notice of Contract Borrowing") shall be in
substantially the form of Exhibit A-1 hereto, specifying therein the requested
(i) date of such Contract Borrowing, (ii) Type of Contract Advances comprising
such Contract Borrowing, (iii) aggregate amount of such Contract Borrowing and
(iv) Interest Period. Each Bank shall, before 12:00 noon (New York City time) on
the date of any such Contract Borrowing, make available for the account of its
Applicable Lending Office to the Administrative Agent at its address referred to
in Section 8.02, in same day funds, such Bank's ratable portion of such Contract
Borrowing. Upon the Administrative Agent's receipt of such funds and upon
fulfillment of the applicable conditions set forth in Article III, the
Administrative Agent will make such funds available to the Borrower at the
Administrative Agent's aforesaid address.
(b) Each Notice of Contract Borrowing shall be
irrevocable and binding on the Borrower. In the case of any Contract Borrowing
which the related Notice of Contract Borrowing specifies is to be comprised of
Eurodollar Rate Contract Advances or Adjusted CD Rate Advances, the Borrower
shall indemnify each Bank against any loss, cost, or expense incurred by such
Bank as a result of any failure by the Borrower to complete such Borrowing
(whether or not due to a failure to fulfill on or before the date specified in
such Notice of Contract Borrowing the applicable conditions set forth in Article
III), such losses, costs, and expenses to include, without limitation, any loss
(including loss of anticipated profits), cost, or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by such Bank
to fund the Contract Advance to be made by such Bank as part of such Contract
Borrowing when such Contract Advance, as a result of such failure, is not made
on such date.
(c) Unless the Administrative Agent shall have
received notice from a Bank prior to the date of any Contract Borrowing that
such Bank will not make available to the Administrative Agent such Bank's
ratable portion of such Contract Borrowing, the Administrative Agent may assume
that such Bank has made such portion available to the Administrative Agent on
the date of such Contract Borrowing in accordance with Section 2.02(a) 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 that such
Bank shall not have so made such ratable portion available to
10
the Administrative Agent, such Bank 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 (i) in the case of the Borrower, the interest rate applicable at the
time to Contract Advances comprising such Contract Borrowing and (ii) in the
case of such Bank, an interest rate equal at all times to the Federal Funds
Effective Rate. If such Bank shall repay to the Administrative Agent such
corresponding amount, such amount so repaid shall constitute such Bank's
Contract Advance as part of such Contract Borrowing for purposes of this
Agreement.
(d) The failure of any Bank to make the Contract
Advance to be made by it as part of any Contract Borrowing shall not relieve any
other Bank of its obligation, if any, hereunder to make its Contract Advance on
the date of such Contract Borrowing, but no Bank shall be responsible for the
failure of any other Bank to make the Contract Advance to be made by such other
Bank on the date of any Contract Borrowing.
SECTION 2.03 The Competitive Advances.
(a) Each Bank severally agrees that the Borrower may
make Competitive Borrowings under this Section 2.03 from time to time on any
Business Day during the period from the Closing Date until the Termination Date,
in each case on the terms and conditions hereinafter set forth; provided,
however, that at no time shall the aggregate amount of Contract Advances and
Competitive Advances outstanding exceed the aggregate amount of the Commitments.
Each Competitive Borrowing shall consist of Competitive Advances of the same
Type made on the same day.
(i) The Borrower may request a Competitive
Borrowing under this Section 2.03 by delivering to
the Administrative Agent and Auction Administration
Agent, (A) in the case of a Borrowing consisting of
Fixed Rate Competitive Advances, by not later than
10:30 a.m. (New York City time) one Business Day
prior to the day of the proposed Competitive
Borrowing, and (B) in the case of a Borrowing
consisting of Eurodollar Rate Competitive Advances,
by not later than 10:30 a.m. (New York City time) on
the fourth Business Day prior to the date of the
proposed Competitive Borrowing, a notice of a
Competitive Borrowing (a "Notice of Competitive
Borrowing"), in substantially the form of Exhibit A-2
hereto, specifying the proposed (1) date of such
Competitive Borrowing, (2) Type of Competitive
Advances comprising such Competitive Borrowing, (3)
aggregate amount, which shall not be less than
$10,000,000 or an integral multiple of $1,000,000 in
excess thereof) of such Competitive Borrowing, (4)
maturity date for repayment of each Competitive
Advance to be made as part of such Competitive
Borrowing (which maturity date shall be, in the case
of a Fixed Rate Competitive Borrowing, not earlier
than seven days after the date of such Borrowing,
and, in the case of a Eurodollar Rate Competitive
Borrowing, not later than 1 month or 2, 3 or 6 months
after the date of such Borrowing, as the Borrower
shall elect) and (5) any other terms to be applicable
to such Competitive Borrowing. The Auction
Administration Agent shall in turn promptly deliver
(by cable or telecopy) to each Bank a notice of
competitive bid request, in substantially the form of
Exhibit A-3, notifying the Banks of each request for
a Competitive Borrowing received by it from the
Borrower and of the terms contained in such Notice of
Competitive Borrowing.
(ii) Each Bank shall, if, in its sole
discretion, it elects to do so, irrevocably offer to
make one or more Competitive Advances to the Borrower
as part of such proposed Competitive Borrowing at a
rate or rates of interest specified by such Bank in
its sole discretion, by notifying (by telecopy, cable
or telephone [in the case of telephone, immediately
confirmed by telecopy]) the Auction Administration
Agent (which shall give prompt notice thereof to the
Borrower), (A) in the case of a Fixed Rate
Competitive Borrowing, before 10:00 a.m. (New York
City time) on the date of such proposed Competitive
Borrowing specified in the Notice of Competitive
Borrowing delivered with respect thereto, and (B) in
the case of a Eurodollar Rate Competitive Borrowing,
before 10:00 a.m. (New York City time) on the third
Business Day prior to the date of such proposed
Competitive Borrowing specified in the Notice of
Competitive Borrowing delivered with respect thereto,
of the maximum amount of each Competitive Advance
which such Bank would be
11
willing to make as part of such proposed Competitive
Borrowing (which amount may, subject to the proviso
to the first sentence of this Section 2.03(a), exceed
such Bank's Commitment), the rate or rates of
interest therefor (and whether reserves are included
therein) and such Bank's Applicable Lending Office
with respect to each such Competitive Advance and any
other terms and conditions required by such Bank;
provided that, if Auction Administration Agent in its
capacity as a Bank 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 specified herein for notice of
offers by the other Banks. Each competitive bid shall
be submitted by a Bank to the Auction Administration
Agent on a competitive bid form substantially similar
to Exhibit A-4. If any Bank shall fail to notify the
Auction Administration Agent, before the time
specified herein for notice of offers, that it elects
to make such an offer, such Bank shall be deemed to
have elected not to make such an offer, and such Bank
shall not be obligated or entitled to, and shall not,
make any Competitive Advance as part of such
Competitive Borrowing. If any Bank shall provide
telephonic notice to the Auction Administration Agent
of its election to make an offer, but such telephonic
notice has not been confirmed by telecopy to the
Auction Administration Agent at or before the time
specified herein for notice of offers, the Auction
Administration Agent may, in its sole discretion and
without liability to such Bank or the Borrower, elect
whether or not to provide notice thereof to the
Borrower.
(iii) The Borrower shall, in turn, (A) in
the case of a Fixed Rate Competitive Borrowing,
before 11:00 a.m. (New York City time) on the date of
such proposed Competitive Borrowing specified in the
Notice of Competitive Borrowing delivered with
respect thereto, and (B) in the case of a Eurodollar
Rate Competitive Borrowing, before 11:00 a.m. (New
York City time) on the third Business Day prior to
the date of such proposed Competitive Borrowing
specified in the Notice of Competitive Borrowing
delivered with respect thereto, either:
(A) cancel such proposed
Competitive Borrowing by giving the Auction
Administration Agent notice to that effect,
or
(B) accept one or more of the
offers made by any Bank or Banks pursuant to
paragraph (ii) above, in its sole
discretion, by giving notice to the Auction
Administration Agent of the amount of each
Competitive Advance (which amount shall be
equal to or greater than $1,000,000, and
equal to or less than the maximum amount
offered by such Bank, notified to the
Borrower by the Auction Administration Agent
on behalf of such Bank for such Competitive
Advance pursuant to paragraph (ii) above) to
be made by each Bank as part of such
Competitive Borrowing, and reject any
remaining offers made by Banks pursuant to
paragraph (ii) above, by giving the Auction
Administration Agent notice to that effect;
provided, however, that the aggregate amount
of such offers accepted by the Borrower
shall be equal at least to $10,000,000 or an
integral multiple of $1,000,000 in excess
thereof. Each such notice of competitive bid
acceptance/rejection from the Borrower shall
be in a form substantially similar to
Exhibit A-5.
(iv) If the Borrower notifies the Auction
Administration Agent that such Competitive Borrowing
is canceled pursuant to paragraph (iii)(A) above, the
Auction Administration Agent shall give prompt notice
(by cable or telecopy) thereof to the Banks, and such
Competitive Borrowing shall not be made.
(v) If the Borrower accepts one or more of
the offers made by any Bank or Banks pursuant to
paragraph (iii)(B) above, such offer or offers and
the Notice of Competitive Borrowing in respect
thereof shall constitute a supplement to this
Agreement in respect of such Competitive Borrowing
and the Competitive Advances made pursuant thereto,
and the Auction Administration Agent shall in turn
promptly notify (A) each Bank that has made an offer
as described in paragraph (ii) above of the date and
aggregate amount of such Competitive Borrowing, the
interest rate thereon, and whether or not any offer
or offers made by such Bank pursuant to paragraph
(ii) above
12
have been accepted by the Borrower, and (B) each Bank
that is to make a Competitive Advance as part of such
Competitive Borrowing (a "Participating Bank" as to
such Competitive Borrowing) of the amount of each
Competitive Advance to be made by such Bank as part
of such Competitive Borrowing and the maturity date
for the repayment of each such Competitive Advance
(together with a confirmation of the Auction
Administration Agent's understanding of the interest
rate and any other terms applicable to each such
Competitive Advance; the Auction Administration Agent
shall assume, unless notified by such Bank to the
contrary, that its understanding of such information
is correct). Each such Participating Bank shall,
before 12:00 noon (New York City time) on the date of
such Competitive Borrowing specified in the notice
received from the Auction Administration Agent
pursuant to clause (A) 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 Bank's
portion of such Competitive Borrowing, in same-day
funds. Upon fulfillment of the applicable conditions
set forth in Article III 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 Competitive
Borrowing, the Auction Administration Agent will
notify each Bank of the amount of the Competitive
Borrowing, such Bank's Competitive Reduction
resulting therefrom, and the date upon which such
Competitive Reduction commenced and is anticipated to
terminate.
(b) Within the limits and on the conditions set forth
in this Section 2.03, the Borrower may from time to time borrow under this
Section 2.03, repay pursuant to Section 2.07(b), prepay under Section 2.07(c),
and reborrow under this Section 2.03.
SECTION 2.04 Conversion and Continuation of Contract
Borrowings. The Borrower shall have the right at any time upon prior irrevocable
notice to the Administrative Agent (i) not later than 12:00 noon (New York City
time), one Business Day prior to conversion, to convert any Borrowing consisting
of Eurodollar Rate Contract Advances or Adjusted CD Rate Advances into a
Borrowing consisting of Alternate Base Rate Advances, (ii) not later than 10:00
a.m. (New York City time), two Business Days prior to conversion or
continuation, to convert any Borrowing consisting of Eurodollar Rate Contract
Advances or Alternate Base Rate Advances into a Borrowing consisting of Adjusted
CD Rate Advances or to continue any Borrowing consisting of Adjusted CD Rate
Advances for an additional Interest Period, (iii) not later than 10:00 a.m. (New
York City time), three Business Days prior to conversion or continuation, to
convert any Borrowing consisting of Alternate Base Rate Advances or Adjusted CD
Rate Advances into a Borrowing consisting of Eurodollar Rate Contract Advances
or to continue any Borrowing consisting of Eurodollar Contract Advances for an
additional Interest Period, (iv) not later than 10:00 a.m. (New York City time),
three Business Days prior to conversion, to convert the Interest Period with
respect to any Borrowing consisting of Eurodollar Rate Contract Advances to
another permissible Interest Period, and (v) not later than 10:00 a.m. (New York
City time), two Business Days prior to conversion, to convert the Interest
Period with respect to any Borrowing consisting of Adjusted CD Rate Advances to
another permissible Interest Period, subject in each case to the following:
(a) each conversion or continuation shall be made pro
rata among the Banks in accordance with the respective principal amounts of the
Advances comprising the converted or continued Contract Borrowing;
(b) if less than all the outstanding principal amount
of any Contract Borrowing shall be converted or continued, the aggregate
principal amount of such Contract Borrowing converted or continued shall be an
amount of $10,000,000 or an integral multiple of $1,000,000 in excess thereof;
(c) accrued interest on an Advance (or portion
thereof) being converted shall be paid by the Borrower at the time of
conversion;
(d) if any Borrowing consisting of Eurodollar Rate
Contract Advances or Adjusted CD Rate Advances is converted at a time other than
the end of the Interest Period applicable thereto, the Borrower shall pay, upon
demand, any amounts due to the Banks pursuant to Section 8.04(b) as a result of
such conversion;
13
(e) any portion of a Contract Borrowing maturing or
required to be repaid in less than one month may not be converted into or
continued as a Borrowing consisting of Eurodollar Rate Contract Advances;
(f) any portion of a Borrowing maturing or required
to be repaid in less than 30 days may not be converted into or continued as a
Borrowing consisting of Adjusted CD Rate Advances;
(g) any portion of a Borrowing consisting of
Eurodollar Rate Contract Advances or Adjusted CD Rate Advances which cannot be
converted into or continued as such by reason of clauses (e) and (f) above shall
be automatically converted at the end of the Interest Period in effect for such
Borrowing into a Borrowing consisting of Alternate Base Rate Advances; and
(h) no Interest Period may be selected for any
Borrowing consisting of Eurodollar Rate Contract Advances or Adjusted CD Rate
Advances that would end later than the Maturity Date.
Each notice pursuant to this Section 2.04 shall be irrevocable
and shall refer to this Agreement and specify (i) the identity and amount of the
Contract Borrowing that the Borrower requests be converted or continued, (ii)
whether such Contract Borrowing is to be converted to or continued as a
Borrowing consisting of Eurodollar Rate Contract Advances, Adjusted CD Rate
Advances, or Alternate Base Rate Advances, (iii) if such notice requests a
conversion, the date of such conversion (which shall be a Business Day), and
(iv) if such Contract Borrowing is to be converted to or continued as a
Borrowing consisting of Eurodollar Rate Contract Advances or Adjusted CD Rate
Advances, the Interest Period with respect thereto. If no Interest Period is
specified in any such notice with respect to any conversion to or continuation
as a Borrowing consisting of Eurodollar Rate Contract Advances or Adjusted CD
Rate Advances, the Borrower shall be deemed to have selected an Interest Period
of one month's duration, in the case of a Borrowing consisting of Eurodollar
Rate Contract Advances, or 30 days' duration, in the case of a Borrowing
consisting of Adjusted CD Rate Advances. The Administrative Agent shall advise
the other Banks of any notice given pursuant to this Section 2.04 and of each
Bank's portion of any converted or continued Contract Borrowing. If the Borrower
shall not have given notice in accordance with this Section 2.04 to continue any
Contract Borrowing into a subsequent Interest Period (and shall not otherwise
have given notice in accordance with this Section 2.04 to convert such Contract
Borrowing), such Contract Borrowing shall, at the end of the Interest Period
applicable thereto (unless repaid pursuant to the terms hereof), automatically
be continued into a new Interest Period as a Borrowing consisting of Alternate
Base Rate Advances.
SECTION 2.05 Fees.
(a) Facility Fees. Borrower shall pay to each Bank,
through the Administrative Agent, a facility fee on the average daily amount of
the Commitment of such Bank (whether used or unused) for the period from and
including the Closing Date, up to but excluding the Termination Date at a rate
per annum equal to the Applicable Margin for Facility Fees. Accrued facility
fees shall be payable in arrears, commencing on the last day of the calendar
quarter in which the Closing Date occurs, and thereafter, quarterly on the last
day of each March, June, September, and December and on the Termination Date.
(b) Fees of Administrative Agent and Chase Securities
Inc. Borrower shall pay to Administrative Agent and Chase Securities Inc.,
solely for their own respective accounts, the fees described in the separate
letter agreement dated November 5, 1997, among the Borrower, Administrative
Agent, and Chase Securities Inc. on the dates specified therein.
SECTION 2.06 Optional Reduction of the Commitments. The
Borrower shall have the right, upon at least two Business Days' irrevocable
notice to the Administrative Agent, to terminate in whole or reduce ratably in
part the respective Commitments of the Banks; provided, however, that (i) each
partial reduction shall be in the aggregate amount of $10,000,000 or in an
integral multiple of $1,000,000 in excess thereof, and (ii) no such
termination or reduction shall be made which would reduce the Commitments to an
amount less than the aggregate outstanding principal amount of the Advances. The
Administrative Agent shall promptly thereafter notify each Bank of such
termination or reduction.
14
SECTION 2.07 Repayment of Advances; Prepayment.
(a) The Borrower shall repay to the Administrative
Agent for the account of each Bank the principal amount of each Contract Advance
made by each Bank on the Maturity Date.
(b) The Borrower shall repay to the Administrative
Agent, for the account of each Participating Bank which has made a Competitive
Advance, on the maturity date of each Competitive Advance (such maturity date
being that specified by the Borrower for repayment of such Competitive Advance
in the Notice of Competitive Borrowing delivered with respect thereto) the then
unpaid principal amount of such Competitive Advance.
(c) The Borrower may, on notice given to the
Administrative Agent (i) in the case of Alternate Base Rate Advances, not later
than 10:30 a.m. (New York City time) on the day of the proposed prepayment, and
(ii) in the case of Adjusted CD Rate Advances and Eurodollar Rate Contract
Advances, not later than 10:30 a.m. (New York City time) on the second Business
Day prior to the day of the proposed prepayment, stating the proposed date and
aggregate principal amount of the prepayment, and if such notice is given, the
Borrower shall, prepay the outstanding principal amounts of the Contract
Advances constituting part of the same Contract Borrowing in whole or ratably in
part; provided, however, that any such partial prepayment shall be in an
aggregate principal amount not less than $10,000,000, or in an integral multiple
of $1,000,000 in excess thereof, and provided further, that any such prepayment
of Adjusted CD Rate Advances or Eurodollar Rate Contract Advances shall be
subject to the provisions of Section 8.04(b) hereof. The Borrower may not prepay
any principal amount of any Competitive Advance unless the Participating Bank
making such Competitive Advance shall have expressly agreed thereto. The
Administrative Agent shall promptly notify each Bank of any prepayments pursuant
to this Section 2.07(c) promptly after any such prepayment. The Borrower shall
have no right to prepay any principal amount of any Advance except as expressly
set forth in this Section 2.07(c).
SECTION 2.08 Interest. The Borrower shall pay interest on each
Advance made by each Bank from the date of such Advance until paid in full, at
the following rates per annum:
(i) Contract Advances. If such Advance is a
Contract Advance, the Applicable Rate from time to
time for such Contract Advance from the date of such
Advance until the last day of the last Interest
Period therefor, payable on the last day of each
Interest Period and, in the case of any Interest
Period longer than 90 days (in the case of Adjusted
CD Rate Advances) or three months (in the case of
Eurodollar Rate Contract Advances), on such 90th day
or the last day of such three-month period, as the
case may be.
(ii) Competitive Advances. If such Advance
is a Competitive Advance, a rate per annum equal at
all times from the date of such Advance until the
maturity thereof to the rate of interest for such
Competitive Advance specified by the Participating
Bank making such Competitive Advance in its notice
with respect thereto delivered pursuant to Section
2.03 (a)(ii) above, payable on the proposed maturity
date specified by the Borrower for such Competitive
Advance in the related Notice of Competitive
Borrowing delivered pursuant to Section 2.03 (a)(i)
above; provided, that in the case of Advances with
maturities of greater than three months, interest
shall be payable at the end of each three-month
period for such Advance.
(iii) Default Amounts. In the case of any
past-due amounts of the principal of, or (to the
fullest extent permitted by law) interest on, any
Advance, from the date such amount becomes due until
paid in full, payable on demand, a rate per annum
equal at all times to 2% above the Alternate Base
Rate in effect from time to time.
SECTION 2.09 Alternate Rate of Interest. If Banks having more
than 66-2/3% of the Commitments shall, at least one Business Day before the date
of any requested Borrowing, notify the Administrative Agent that the Eurodollar
Rate for any Eurodollar Rate Advances or the Adjusted CD Rate for any Adjusted
CD Rate Advances comprising such Borrowing will not adequately reflect the cost
to such Banks of making or funding their respective
15
Advances for such Borrowing, the right of the Borrower to select Advances of
such Type for such Borrowing or any subsequent Borrowing shall be suspended
until the Administrative Agent shall notify the Borrower and the Banks that the
circumstances causing such suspension no longer exist, and (i) any request by
the Borrower for a Eurodollar Rate Competitive Advance shall be of no force and
effect and shall be denied by the Administrative Agent and (ii) any request by
the Borrower for a Eurodollar Rate Contract Advance or an Adjusted CD Rate
Advance shall be deemed to be a request for an Alternate Base Rate Advance.
SECTION 2.10 Optional Renewal of Commitments.
(a) Optional Renewal Procedures. Borrower may request
that the Maturity Date be extended for all or a portion of the Commitments to a
date which is no later than the 364th day after the then-current Maturity Date;
provided that, any such extension request shall be made in writing (an
"Extension Request") by Borrower and delivered to Administrative Agent no more
than 30 days prior to (but no later than 20 days prior to) the then-current
Maturity Date. Promptly upon receipt of an Extension Request, Administrative
Agent shall notify Banks of such request.
(i) Banks' Response to Extension Request.
The Banks may, at their option, accept or reject such
Extension Request by giving written notice to
Administrative Agent delivered no earlier than 20
days prior to (but no later than 10 days prior to)
the then-effective Maturity Date (the "Response
Date"). If any Bank shall fail to give such notice to
Administrative Agent by the Response Date, such Bank
shall be deemed to have rejected the requested
extension. If the Extension Request is not consented
to by Banks holding at least 51% of the Commitments
by the Response Date, the Extension Request will be
rejected, and the Commitments will terminate on the
then-current Maturity Date. If the Banks holding at
least 51% of the Commitments consent to the Extension
Request by the Response Date, the Maturity Date for
those Banks consenting to the extension (for purposes
of this Section 2.10(a), the "Accepting Banks") shall
be automatically extended to the date which is the
364th day after the then-current Maturity Date.
(ii) Additional Procedures to Extend the
Rejected Amount. If the Extension Request is
consented to by Banks holding not less than 51% of
the Commitments, but fewer than all Banks (any Bank
not consenting to the Extension Request being
referred to in this Section 2.10(a) as a "Rejecting
Bank"), then Administrative Agent shall, within 48
hours of making such determination, notify the
Accepting Banks and Borrower of the aggregate
Commitments held by the Rejecting Banks (as used in
this Section 2.10(a), the "Rejected Amount"). Each
Accepting Bank shall have the right, but not the
obligation, to elect to increase its respective
Commitments by an amount not to exceed the Rejected
Amount, which election shall be made by notice from
each Accepting Bank to the Administrative Agent given
not later than five days after the date notified by
Administrative Agent, specifying the amount of such
proposed increase in such Accepting Bank's
Commitment. If the aggregate amount of the proposed
increases in the Commitments of all Accepting Banks
making such an election does not equal or exceed the
Rejected Amount, then Borrower shall have the right
to add one or more financial institutions (which are
not Rejecting Banks and which are Eligible Assignees)
as Banks (as used in this Section 2.10(a), a
"Purchasing Bank") to replace such Rejecting Banks,
which Purchasing Banks shall have aggregate
Commitments not greater than those of the Rejecting
Banks (less any increases in the Commitments of
Accepting Banks, as described in the following clause
(iii)). The transfer of Commitments and outstanding
Borrowings from Rejecting Banks to Purchasing Banks
or Accepting Banks shall take place on the effective
date of, and pursuant to the execution, delivery, and
acceptance of, an Assignment and Acceptance in
accordance with the procedures set forth in Section
8.07.
(iii) Adjustments to, and Terminations of,
Commitments.
(A) If less than 100% of the
Commitments are extended (whether by virtue
of Borrower's failure to request an
extension of the total Commitments or by
virtue of any Bank not consenting to any
Extension Request), then the Commitments
shall automatically
16
be reduced on the Maturity Date on which the
applicable approved extension is effective
by an amount equal to (as the case may be)
(i) the portion of the Commitments not
requested to be extended by Borrower in its
Extension Request or (ii) the amount of the
Rejected Amount (to the extent not replaced
by Accepting Banks or Purchasing Banks
pursuant to the procedures set forth in the
foregoing Section 2.10(a)(ii)). Each
Rejecting Bank shall have no further
obligation or Commitment following the
Maturity Date on which the applicable
approved extension is effective, other than
any obligation accruing prior to such date
as provided herein.
(B) If the aggregate amount of the
proposed increases in the Commitments of all
Accepting Banks making an election to
increase their respective Commitments is in
excess of the Rejected Amount, then (i) the
Rejected Amount shall be allocated pro rata
among such Accepting Banks based on the
respective amounts of the proposed increases
to Commitments elected by such Accepting
Banks; and (ii) the respective Commitments
of each such Accepting Bank shall be
increased by the respective amount allocated
pursuant to clause (i) of this Section
2.10(a)(iii)(B), such that, after giving
effect to the approved extensions and all
such terminations and increases, no
reduction will occur in the aggregate amount
of the Commitments.
(C) If the aggregate amount of the
proposed increases to the Commitments of all
Accepting Banks making such an election to
so increase their respective Commitments
equals the Rejected Amount, then the
respective Commitments of such Accepting
Banks shall be increased by the respective
amounts of their proposed increases, such
that, after giving effect to the approved
extensions and all such terminations and
increases, no reduction will occur in the
aggregate amount of the Commitments.
(D) If the aggregate amount of the
proposed increases to the Commitments of all
Accepting Banks making such an election is
less than the Rejected Amount, then (i) the
respective Commitments of each such
Accepting Bank shall be increased by the
respective amount of its proposed increase;
and (ii) the amount of the Commitments shall
be reduced by the amount of the Rejected
Amount (to the extent not replaced by the
Accepting Banks or the Purchasing Banks, if
any).
(b) Acknowledgments Regarding Obligation to Renew.
Borrower acknowledges that (i) neither Administrative Agent nor any Bank has
made any representations to Borrower regarding its intent to agree to any
extensions set forth in this Section, (ii) neither Administrative Agent nor any
Bank shall have any obligation to extend the Commitments (or any portion
thereof), and (iii) Administrative Agent's and Banks' agreement to one or more
extensions shall not commit Administrative Agent or the Banks to any additional
extensions.
(c) Payment to Rejecting Banks. If, after giving
effect to any transfer of a Rejecting Bank's Commitments to an Accepting Bank or
a Purchasing Bank under Section 2.10(a)(ii) above, there are any amounts owed by
Borrower to such Rejecting Bank under the Loan Papers, then such amount is due
and payable by Borrower to such Rejecting Bank on the Maturity Date prior to
giving effect to the approved extension under Section 2.10(a)(i) above.
SECTION 2.11 Increased Costs; Increased Capital.
(a) If due to either (i) the introduction of or any
change after the date hereof (other than any change by way of imposition or
increase of reserve requirements, in the case of Adjusted CD Rate Advances,
included in the Domestic Reserve Percentage or, in the case of Eurodollar Rate
Advances, included in the Eurodollar Rate Reserve Percentage) in or in the
interpretation of any law or regulation or (ii) the compliance with any
guideline or request received from any central bank or other governmental
authority after the date hereof (whether or not having the force of law), there
shall be any increase in the cost to any Bank of agreeing to make or making,
funding, or maintaining Adjusted CD Rate Advances or Eurodollar Rate Advances,
then the Borrower shall from time to time,
17
upon demand by such Bank (with a copy of such demand to the Administrative
Agent), pay to the Administrative Agent for the account of such Bank additional
amounts sufficient to compensate such Bank for such increased cost. Increased
costs shall not include income, stamp, or other taxes, imposts, duties, charges,
fees, deductions, or withholdings imposed, levied, collected, withheld, or
assessed by the United States of America or any political subdivision or taxing
authority thereof or therein (including Puerto Rico) or of the country in which
any Bank's principal office or Applicable Lending office may be located or any
political subdivision or taxing authority thereof or therein. Each Bank agrees
that, upon the occurrence of any event giving rise to a demand under this
Section 2.11(a) with respect to the Eurodollar Lending Office or the CD Lending
Office of such Bank, it will, if requested by the Borrower and to the extent
permitted by law or the relevant governmental authority, endeavor in good faith
and consistent with its internal policies to avoid or minimize the increase in
costs resulting from such event by endeavoring to change its Eurodollar Lending
Office or CD Lending Office, as appropriate; provided, however, that such
avoidance or minimization can be made in such a manner that such Bank, in its
sole determination, suffers no economic, legal, or regulatory disadvantage. A
certificate as to the amount of and specifying in reasonable detail the basis
for such increased cost, submitted to the Borrower and the Administrative Agent
by such Bank, shall constitute such demand and shall, in the absence of manifest
error, be conclusive and binding for all purposes.
(b) If either (i) the introduction after the date
hereof of, or any change after the date hereof in or in the interpretation of,
any law or regulation or (ii) the compliance by any Bank with any guideline or
request received from any central bank or other governmental authority after the
date hereof (whether or not having the force of law), affects or would affect
the amount of capital required or expected to be maintained by such Bank or any
corporation controlling such Bank and such Bank determines that the amount of
such capital is increased by or based upon the existence of its Advances or
Commitment, then the Borrower shall, from time to time, upon demand by such Bank
(with a copy of such demand to the Administrative Agent), immediately pay to the
Administrative Agent for the account of such Bank additional amounts sufficient
to compensate such Bank to the extent that such Bank determined such increase in
capital to be allocable to the existence of such Bank's Advances or Commitment.
A certificate as to the amount of such increased capital and specifying in
reasonable detail the basis therefor, submitted to the Borrower and the
Administrative Agent by such Bank, shall constitute such demand and shall, in
the absence of manifest error, be conclusive and binding for all purposes. Each
Bank shall use all reasonable efforts to mitigate the effect upon the Borrower
of any such increased capital requirement and shall assess any cost related to
such increased capital on a nondiscriminatory basis among the Borrower and other
borrowers of such Bank to which it applies and such Bank shall not be entitled
to demand or be compensated for any increased capital requirement unless it is,
as a result of such law, regulation, guideline, or request, such Bank's policy
generally to seek to exercise such rights, where available, against other
borrowers of such Bank.
(c) Notwithstanding the foregoing provisions of this
Section 2.11, (i) the Borrower shall not be required to reimburse any Bank for
any increased costs incurred more than three months prior to the date that such
Bank notifies the Borrower in writing thereof and (ii) in the event any Bank
grants a participation in an Advance pursuant to Section 8.07, the Borrower
shall not be obligated to reimburse for increased costs with respect to such
Advance to the extent that the aggregate amount thereof exceeds the aggregate
amount for which the Borrower would have been obligated if such Bank had not
made such participation.
SECTION 2.12 Additional Interest on Eurodollar Rate Advances.
The Borrower shall pay to the Administrative Agent for the account of each Bank
any costs which such Bank determines are attributable to such Bank's compliance
with regulations of the Board of Governors of the Federal Reserve System
requiring the maintenance of reserves with respect to liabilities or assets
consisting of or including Eurocurrency Liabilities. Such costs shall be paid to
the Administrative Agent for the account of such Bank in the form of additional
interest on the unpaid principal amount of each Eurodollar Rate Advance of such
Bank, from the date of such Advance until such principal amount is paid in full,
at an interest rate per annum equal at all times to the remainder obtained by
subtracting (i) the Eurodollar Rate for the applicable period for such Advance
from (ii) the rate obtained by dividing such Eurodollar Rate by a percentage
equal to 100% minus the Eurodollar Rate Reserve Percentage of such Bank for such
period, payable on each date on which interest is payable on such Advance. Such
additional interest shall be determined by such Bank and notified to the
Borrower and the Administrative Agent. A certificate setting forth the amount of
such additional interest, submitted to the Borrower and the Administrative Agent
by such Bank, shall be conclusive and binding for all purposes, absent manifest
error.
18
SECTION 2.13 Change in Legality. If any Bank shall, at least
three Business Days before the date of any requested Borrowing consisting of
Eurodollar Rate Advances or at least two Business Days before the date of any
requested Borrowing consisting of Adjusted CD Rate Advances, notify the
Administrative Agent that the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or that any central
bank or other governmental authority asserts that it is unlawful, for such Bank
or its Applicable Lending Office to perform its obligations hereunder to make,
fund, or maintain Eurodollar Rate Advances or Adjusted CD Rate Advances
hereunder, the right of the Borrower to select Advances of such Type from such
Bank for such Borrowing or any subsequent Borrowing shall be suspended until
such Bank shall notify the Administrative Agent that the circumstances causing
such suspension no longer exist; and during the period when such obligation of
such Bank is suspended, any Borrowing consisting of Eurodollar Rate Advances or
Adjusted CD Rate Advances, as the case may be, shall not exceed the Commitments
of the other Banks less the aggregate amount of any Competitive Advances then
outstanding, and shall be made by the other Banks pro rata according to their
respective Commitments.
SECTION 2.14 Payments and Computations.
(a) The Borrower shall make each payment hereunder
from a bank account of the Borrower located in the United States not later than
11:00 a.m. (New York City time) on the day when due in U.S. dollars to the
Administrative Agent at its address referred to in Section 8.02 in same-day
funds. The Administrative Agent will promptly thereafter cause to be distributed
like funds to the Banks entitled thereto for the account of their respective
Applicable Lending Offices, in each case to be applied in accordance with the
terms of this Agreement.
(b) All computations of interest based on the
Alternate Base Rate shall be made by the Administrative Agent on the basis of a
year of 365 or 366 days, as the case may be, when determined by reference to the
Prime Rate and on the basis of a year of 360 days at all other times; and all
computations of fees and of interest based on the Adjusted CD Rate, the
Eurodollar Rate, or the Fixed Rate shall be made by the Administrative Agent on
the basis of a year of 360 days, in each case for the actual number of days
(including the first day but excluding the last day) occurring in the period for
which such interest or fees are payable. Each determination by the
Administrative Agent of an interest rate hereunder shall be conclusive and
binding for all purposes, absent manifest error.
(c) Whenever any payment hereunder 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 be included in
the computation of payment of interest or fees, as the case may be; provided,
however, that, 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 Banks 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 Bank on such due
date an amount equal to the amount then due such Bank. If and to the extent the
Borrower shall not have so made such payment in full to the Administrative
Agent, each Bank shall repay to the Administrative Agent forthwith on demand
such amount distributed to such Bank together with interest thereon, for each
day from the date such amount is distributed to such Bank until the date such
Bank repays such amount to the Administrative Agent, at the Federal Funds
Effective Rate.
(e) Each Bank shall maintain on its books a loan
account in the name of the Borrower in which shall be recorded all Advances made
by such Bank to the Borrower, the interest rate, and the maturity date of each
such Advance and all payments of principal and interest made by the Borrower
with respect to such Advances. The obligation of the Borrower to repay the
Advances made by each Bank and to pay interest thereon shall be evidenced by the
entries from time to time made in the loan account of such Bank maintained
pursuant to this Section 2.14(e); provided that, the failure to make an entry
with respect to an Advance shall not affect the obligations of the Borrower
hereunder with respect to such Advance. In case of any dispute, action, or
proceeding relating to any Advance, the
19
entries in such loan account shall be prima facie evidence of the amount of
such Advance and of any amounts paid or payable with respect thereto.
(f) The Administrative Agent shall maintain on its
books a set of accounts in which shall be recorded all Advances made by the
Banks to the Borrower, the interest rates, and maturity dates of such Advances
and all payments of principal and interest made thereon. In case of any
discrepancy between the entries in the Administrative Agent's books and the
entries in any Bank's books, such Bank's records shall be considered correct, in
the absence of manifest error.
SECTION 2.15 Taxes on Payments.
(a) All payments made by the Borrower under this
Agreement shall be made free and clear of, and without reduction for or on
account of, any income, stamp, or other taxes, imposts, duties, charges, fees,
deductions, or withholdings, imposed, levied, collected, withheld, or assessed
by the United States of America (or by any political subdivision or taxing
authority thereof or therein) as a result of (i) the introduction after the date
hereof of any law, regulation, treaty, directive, or guideline (whether or not
having the force of law), or (ii) any change after the date hereof in any law,
regulation, treaty, directive, or guideline (whether or not having the force of
law), or (iii) any change after the date hereof in the interpretation or
application of any law, regulation, treaty, directive, or guideline (whether or
not having the force of law), or (iv) any such taxes, imposts, duties, charges,
fees, deductions, or withholdings being imposed, levied, collected, withheld, or
assessed at a greater rate than the rate that would have been applicable had
such an introduction or change not been made, but only to the extent of the
increase in such rate ("Withholding Taxes"). If any Withholding Taxes are
required to be withheld from any amounts payable to or for the account of any
Bank hereunder, the amounts so payable to or for the account of such Bank shall
be increased to the extent necessary to yield to such Bank (after payment of all
Withholding Taxes) interest or any such other amounts payable hereunder at the
rates or in the amounts payable to or for the account of such Bank under this
Agreement prior to such introduction or change. Whenever any Withholding Tax is
payable by the Borrower, as promptly as possible thereafter, the Borrower shall
send to the Administrative Agent, for the account of such Bank, a certified copy
of an original official receipt showing payment thereof. If the Borrower fails
to pay any Withholding Taxes when due to the appropriate taxing authority or
fails to remit to the Administrative Agent, for the account of any Bank the
required receipts or other required documentary evidence, the Borrower shall
indemnify such Bank or the Administrative Agent for any incremental taxes,
interest, or penalties that may become payable by such Bank or the
Administrative Agent as a result of any such failure.
(b) At least four Business Days prior to the first
Borrowing or, if the first Borrowing does not occur within thirty days after the
date of execution of this Agreement, by the end of such thirty day period, each
Bank that is organized outside the United States agrees that it will deliver to
the Borrower and the Administrative Agent two duly completed copies of United
States Internal Revenue Service Form 1001 (or such other documentation or
information as may, under applicable United States federal income tax statutes
or regulations, be required in order to claim an exemption or reduction from
United States income tax withholding by reason of an applicable treaty with the
United States, such documentation or other information being hereafter referred
to as "Form 1001") or Form 4224 (or such other documentation or information as
may, under applicable United States federal income tax statutes or regulations,
be required in order to claim an exemption from United States income tax
withholding for income that is effectively connected with the conduct of a trade
or business within the United States, such documentation or other information
being hereafter referred to as "Form 4224"), as the case may. be, indicating in
each case that such Bank is either entitled to receive payments under this
Agreement without deduction or withholding of any United States federal income
taxes or, as the case may be, is subject to such limited deduction or
withholding as it is capable of recovering in full from a source other than the
Borrower. Each Bank which delivers to the Borrower and the Administrative Agent
a Form 1001 or Form 4224 pursuant to the next preceding sentence further
undertakes to deliver to the Borrower and the Administrative Agent two further
copies of the said Form 1001 or 4224, or successor applicable form or
certificate, as the case may be, as and when the previous form filed by it
hereunder shall expire or shall become incomplete or inaccurate in any respect,
unless in any of such cases an event has occurred prior to the date on which any
such delivery would otherwise be required which renders such form inapplicable.
20
(c) If at any time any Bank by reason of payment by
the Borrower of any Withholding Taxes obtains a credit against, or return or
reduction of, any tax payable by it, or any other currently realized tax
benefit, which it would not have enjoyed but for such payment ("Tax Benefit"),
such Bank shall thereupon pay to the Borrower the amount which such Bank shall
certify to be the amount that, after payment, will leave such Bank in the same
economic position it would have been in had it received no such Tax Benefit
("Equalization Amount"); provided, however, that if such Bank shall subsequently
determine that it has lost the benefit of all or a portion of such Tax Benefit,
the Borrower shall promptly remit to such Bank the amount certified by such Bank
to be the amount necessary to restore such Bank to the position it would have
been in if no payment had been made pursuant to this Section 2.15(c); provided,
further, however, that if such Bank shall be prevented by applicable law from
paying the Borrower all or any portion of the Equalization Amount owing to the
Borrower such payment need not be made to the extent such Bank is so prevented
and the amount not paid shall be credited to the extent lawful against future
payment owing to such Bank; provided, further, however, that the aggregate of
all Equalization Amounts paid by any Bank shall in no event exceed the aggregate
of all amounts paid by the Borrower to such Bank in respect of Withholding Taxes
plus, in the case of a Tax Benefit that occurs by reason of a refund interest
actually received from the relevant taxing authority with respect to such
refund. A certificate submitted in good faith by the Bank pursuant to this
Section 2.15(c) shall be deemed conclusive absent manifest error.
(d) In the event a Bank shall become aware that the
Borrower is required to pay any additional amount to it pursuant to Section
2.15(a), such Bank shall promptly notify the Administrative Agent and the
Borrower of such fact and shall use reasonable efforts, consistent with legal
and regulatory restrictions, to change the jurisdiction of its Applicable
Lending Office if the making of such change (i) would avoid the need for, or
reduce the amount of, any such additional amounts that may thereafter accrue,
(ii) would not, in the good faith determination of such Bank, be disadvantageous
for regulatory or competitive reasons to such Bank, and (iii) would not require
such Bank to incur any cost or forego any economic advantage for which the
Borrower shall not have agreed to reimburse and indemnify such Bank.
(e) Notwithstanding the foregoing provisions of this
Section 2.15, in the event any Bank grants a participation in any Advance
pursuant to Section 8.07, the Borrower shall not be obligated to pay any taxes,
imposts, duties, charges, fees, deductions, or withholdings to the extent that
the aggregate amount thereof exceeds the aggregate amount for which the Borrower
would have been obligated if such Bank had not granted such participation.
SECTION 2.16 Sharing of Payments, Etc. If any Bank shall
obtain any payment (whether voluntary, involuntary, through the exercise of any
right of setoff or otherwise) on account of the Contract Advances made by it
(other than pursuant to Sections 2.11, 2.15, 2.17, 8.04, or 8.07(g) hereof) in
excess of its ratable share of payments on account of the Contract Advances
obtained by all the Banks, then such Bank shall forthwith purchase from the
other Banks through the Administrative Agent such participations in the Contract
Advances made by them as shall be necessary to cause such purchasing Bank 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 Bank, such purchase from each Bank shall be rescinded, and such Bank
shall repay to the purchasing Bank the purchase price to the extent of such
recovery, together with an amount equal to such Bank's ratable share (according
to the proportion that the (i) the amount of such Bank's required repayment
bears to (ii) the total amount so recovered from the purchasing Bank) of any
interest or other amount paid or payable by the purchasing Bank in respect of
the total amount so recovered. The Borrower agrees that any Bank so purchasing a
participation from another Bank pursuant to this Section 2.16 may, to the
fullest extent permitted by law, exercise all its rights of payment (including
the right of setoff) with respect to such participation as fully as if such Bank
were the direct creditor of the Borrower in the amount of such participation.
SECTION 2.17 Removal of a Bank. The Borrower shall have the
right, by giving at least 15 Business Days' prior notice in writing to the
affected Bank and the Administrative Agent, at any time when no Event of Default
and no event which with the passage of time or the giving of notice or both
would become an Event of Default has occurred and is then continuing, to remove
as a party hereto any Bank having a credit rating of C/D (or its equivalent) or
lower by Thomson BankWatch, Inc. (or any successor thereto), such removal to be
effective as of the date specified in such notice from the Borrower (a "Removal
Date"), which date, for any Adjusted CD Rate Advance or any Eurodollar Rate
Contract Advance, shall be the last day of an Interest Period and, for any
Competitive Advance, shall
21
be the maturity date of such Competitive Advance. On any Removal Date, the
Borrower shall repay all the outstanding Advances of the affected Bank
applicable to such Removal Date, together with all accrued interest, fees, and
all other amounts owing hereunder to such Bank. Upon each such Removal Date and
receipt of the related payment referred to above, the Commitment relating to the
Advances so paid on such Removal Date, together with all unused Commitment, of
such affected Bank shall terminate, and such Bank shall cease thereafter to
constitute a Bank hereunder. The Borrower shall have the right to offer to one
or more Banks the right to increase their Commitments up to, in the aggregate
for all such increases, the Commitment of any Bank which is removed pursuant to
the foregoing provisions of this Section 2.17 (such Commitment being herein
called an "Unallocated Commitment") effective on the relevant Removal Date, it
being understood that no Bank shall be obligated to increase its Commitment in
response to any such offer. The Borrower shall also have the right to offer all
or any portion of an Unallocated Commitment to one or more Eligible Assignees
not parties hereto having a credit rating higher than C/D (or its equivalent) by
Thomson BankWatch, Inc. (or any successor thereto), and, upon each such bank's
acceptance of such offer and execution and delivery of an instrument agreeing to
the terms and conditions hereof (including, without limitation, the provisions
of Section 8.07 regarding Bank assignments), each such bank shall become a Bank
hereunder with a Commitment in an amount specified in such instrument. The
obligations of the Borrower described in Sections 2.11, 8.04, and 8.15 shall
survive for the benefit of any Bank removed pursuant to this Section 2.17
notwithstanding such removal.
ARTICLE III. CONDITIONS OF LENDING
SECTION 3.01 Conditions Precedent to Closing. The obligation
of each Bank to make an Advance on the occasion of the initial Borrowing is
subject to the conditions precedent that the Administrative Agent shall have
received, on or before the Closing Date (unless otherwise indicated), the
following, each dated the same day (unless otherwise indicated), in form and
substance satisfactory to the Administrative Agent and in sufficient copies for
each Bank:
(a) Certified copies of the resolutions of the Board
of Directors of the Borrower, approving this Agreement and of all documents
evidencing other necessary corporate action and governmental approvals, if any,
with respect to this Agreement.
(b) A certificate of the Secretary or an Assistant
Secretary of the Borrower, certifying the names and true signatures of the
officers of the Borrower authorized to sign this Agreement and the other
documents to be delivered hereunder.
(c) Copies of the currently-effective articles or
certificates of incorporation of the Borrower, and all amendments thereto,
accompanied by certificates that such copies are correct and complete, one dated
a date not more than 60 days prior to the date of the initial Borrowing, issued
by the appropriate governmental authority of the State of Utah and one dated the
date of the initial Borrowing, executed by the President, a Vice President, the
Secretary, or an Assistant Secretary of the Borrower.
(d) Copies of the currently-effective Bylaws, and all
amendments thereto, of the Borrower, accompanied by a certificate dated the date
of the initial Borrowing, certifying that such copy is correct and complete,
executed by the President, a Vice President, the Secretary, or Assistant
Secretary of the Borrower.
(e) Favorable opinions of counsel of the Borrower and
special New York counsel to the Borrower, substantially in the forms of Exhibit
C-1 and C-2 respectively, hereto and as to such other matters as any Bank
through the Administrative Agent may reasonably request.
(f) A favorable opinion of Xxxxxx and Xxxxx, L.L.P.,
counsel for the Administrative Agent, substantially in the form of Exhibit D
hereto.
(g) Executed copies of this Agreement and all other
Loan Papers contemplated hereby.
22
(h) Evidence that all fees payable on or prior to the
date of the initial Borrowing have been paid to Administrative Agent and Chase
Securities Inc. as provided for in Section 2.05, and to the extent not
previously paid, reimbursement to Administrative Agent for all reasonable fees
and expenses incurred in connection with the negotiation, preparation, and
closing of the transactions evidenced by the Loan Papers (including, without
limitation, reasonable attorneys' fees and expenses).
SECTION 3.02 Conditions Precedent to Each Borrowing. The
obligation of each Bank to make an Advance in connection with any Borrowing
(including without limitation, the initial Borrowing) shall be subject to the
further conditions precedent that on the date of such Borrowing, (i)
Administrative Agent shall have received a Notice of Contract Borrowing or
Notice of Competitive Borrowing, executed and completed by a Financial Officer
of the Borrower, and (ii) the following statements shall be true (and each of
the giving of the applicable Notice of Contract Borrowing or Notice of
Competitive Borrowing and the acceptance by the Borrower of the proceeds of such
Borrowing shall constitute a representation and warranty by the Borrower that on
the date of such Borrowing such statements are true):
(a) the representations and warranties contained in
Section 4.01 (excluding for all Borrowings, other than the
initial Borrowings, those contained in subsections (f), (j),
(k), and (l) thereof) are correct on and as of the date of
such Borrowing, before and after giving effect to such
Borrowing and to the application of the proceeds therefrom, as
though made on and as of such date; and
(b) no event has occurred and is continuing, or would
result from such Borrowing or from the application of the
proceeds therefrom, which constitutes an Event of Default.
ARTICLE IV. REPRESENTATIONS AND WARRANTIES
SECTION 4.01 Representations and Warranties of the Borrower.
The Borrower represents and warrants as follows:
(a) The Borrower is a corporation duly organized,
validly existing, and in good standing under the laws of the State of Utah.
(b) 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 corporate action, and do not contravene (i) the
Borrower's charter or by-laws or (ii) any 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, regulatory body, or
other Person is required for the due execution, delivery, and performance by the
Borrower of this Agreement except such as has been duly obtained or made and are
in full force and effect.
(d) This Agreement is the legal, valid, and binding
obligation of the Borrower enforceable against the Borrower in accordance with
its terms.
(e) (i) The statement of consolidated financial
position of the Borrower and its consolidated Subsidiaries as of December 31,
1996, and the related statements of consolidated income and consolidated changes
in common stockholders' equity of the Borrower and its consolidated Subsidiaries
for the fiscal year then ended, copies of which have been furnished to each
Bank, fairly present the financial condition of the Borrower and its
consolidated Subsidiaries as at such date and present the financial condition of
the Borrower and its consolidated Subsidiaries for the period ended on such
date, all in accordance with generally accepted accounting principles
consistently applied.
23
(ii) The statement of consolidated financial
position of the Borrower and its consolidated Subsidiaries as of June 30, 1997,
and the related statements of consolidated income and consolidated changes in
common stockholders' equity of the Borrower and its consolidated Subsidiaries
for the fiscal quarter then ended, copies of which have been furnished to each
Bank, fairly present the financial condition of the Borrower and its
consolidated Subsidiaries as at such date and present the financial condition of
the Borrower and its consolidated Subsidiaries for the period ended on such
date, all in accordance with generally accepted accounting principles
consistently applied, and since June 30, 1997, there has been no material
adverse change in such condition or operations.
(f) There is no pending or threatened action or
proceeding affecting the Borrower or any of its consolidated Subsidiaries before
any court, governmental agency, or arbitrator, (i) which purports to affect the
legality, validity or enforceability of this Agreement or (ii) except as set
forth in public documents filed with the Securities and Exchange Commission or
otherwise disclosed publicly on or prior to the date of the initial Borrowing,
which may be reasonably expected to materially adversely affect the financial
condition or operations of the Borrower or any of its Subsidiaries, taken as a
whole.
(g) After applying the proceeds of each Advance, not
more than 25% of the value of the assets of the Borrower and its Subsidiaries
(as determined in good faith by the Borrower) that are subject to Section
5.02(a)(i) will consist of or be represented by margin stock (within the meaning
of Regulation U issued by the Board of Governors of the Federal Reserve System).
(h) The Borrower is not engaged in the business of
extending credit for the purpose of purchasing or carrying margin stock (within
the meaning of Regulation U issued by the Board of Governors of the Federal
Reserve System), and no proceeds of any Advance will be used for any purpose
which violates the provisions of the regulations of said Board. If requested by
any Bank or the Administrative Agent, the Borrower will furnish to the
Administrative Agent and each Bank a statement in conformity with the
requirements of Federal Reserve Form U-1 referred to in said Regulation U, the
statements made in which shall be such, in the opinion of each Bank, as to
permit the transactions contemplated hereby in accordance with said Regulation
U.
(i) No Termination Event has occurred nor is
reasonably expected to occur with respect to any Plan which may materially
adversely affect the financial condition or operations of the Borrower and its
Subsidiaries, taken as a whole. Neither the Borrower nor any of its ERISA
Affiliates has incurred nor reasonably expects to incur any withdrawal liability
under ERISA to any Multiemployer Plan which may reasonably be expected to
materially adversely affect the financial condition or operations of the
Borrower and its Subsidiaries, taken as a whole. Schedule B (Actuarial
Information) to the 1994 annual report (Form 5500 Series) with respect to each
Plan, copies of which have been filed with the Internal Revenue Service and
furnished to each Bank, is complete and accurate in all material respects and in
all material respects fairly presents the funding status of each Plan. No
Reportable Event has occurred and is continuing with respect to any Plan which
may materially adversely affect the financial condition or operations of the
Borrower and its Subsidiaries, taken as a whole.
(j) On the date of the initial Borrowing (and after
giving effect to the transactions contemplated by the Loan Papers), Borrower is
Solvent. For purposes hereof, "Solvent" means, as to a Person, that (a) the
aggregate fair market value of such Person's assets exceeds its liabilities
(whether contingent, subordinated, unmatured, unliquidated, or otherwise), (b)
such Person has sufficient cash flow to enable it to pay its Debts as they
mature, and (c) such Person does not have unreasonably small capital to conduct
such Person's business. In computing the amount of contingent liabilities at any
time; for purposes of determining solvency, it is intended that such liabilities
will be computed at the amount which, in light of all the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability.
(k) Except as disclosed in public documents filed
with the Securities and Exchange Commission or otherwise disclosed publicly on
or prior to the date of the initial Borrowing, neither Borrower nor any
Restricted Subsidiary is a party to a material transaction with any of its
Affiliates, other than transactions in the ordinary course of business and upon
fair and reasonable terms not materially less favorable than the Borrower or
such Restricted
24
Subsidiary could obtain or could become entitled to in an arm's-length
transaction with a Person that was not its Affiliate.
(l) The proportion that the combined EBITDAX of the
Principal Subsidiaries bears to the consolidated EBITDAX for the Borrower and
its Subsidiaries is not less than 80%.
(m) No Event of Default under the Existing Credit
Agreement or any event or existence of any circumstance which, with the giving
of notice or lapse of time or both, would become an Event of Default under the
Existing Credit Agreement exists.
ARTICLE V. COVENANTS OF THE BORROWER
SECTION 5.01 Affirmative Covenants. So long as any Advance
shall remain unpaid or any Bank shall have any Commitment hereunder, the
Borrower will, and, in the case of Section 5.01(a), will cause its Subsidiaries
to, unless the Majority Banks shall otherwise consent in writing:
(a) Keep Books; Corporate Existence; Maintenance of
Properties; Compliance with Laws; Insurance.
(i) keep proper books of record and account,
all in accordance with generally accepted accounting
principles;
(ii) preserve and keep in full force and
effect its existence, and preserve and keep in full
force and effect its licenses, rights, and franchises
to the extent it deems necessary to carry on its
business;
(iii) maintain and keep, or cause to be
maintained and kept, its properties in good repair,
working order, and condition, and from time to time
make or cause to be made all needful and proper
repairs, renewals, replacements, and improvements, in
each case to the extent it deems necessary to carry
on its business;
(iv) use its reasonable efforts to comply in
all material respects with all material applicable
statutes, regulations, and orders of, and all
material applicable restrictions imposed by, any
governmental agency in respect of the conduct of its
business and the ownership of its properties, to the
extent it deems necessary to carry on its business,
except such as are being contested in good faith by
appropriate proceedings;
(v) insure and keep insured its properties
in such amounts (and with such self insurance and
deductibles) as it deems necessary to carry on its
business and to the extent available on premiums and
other terms which the Borrower or any Subsidiary, as
the case may be, deems appropriate. Any of such
insurance may be carried by, through, or with any
captive or affiliated insurance company or by way of
self-insurance as the Borrower or any Subsidiary, as
the case may be, deems appropriate; and
(vi) use the proceeds of Advances for
general corporate purposes and to repurchase or
refinance, from time to time, commercial paper issued
by the Borrower.
Nothing in this subsection shall prohibit the Borrower or any of its
Subsidiaries from discontinuing any business, forfeiting any license, right, or
franchise or discontinuing the operation or maintenance of any of its properties
to the extent it deems appropriate in the conduct of its business.
(b) Reporting Requirements. Furnish to the Banks:
25
(i) as soon as available and in any event
within 60 days after the end of each of the first
three quarters of each fiscal year of the Borrower, a
statement of the consolidated financial condition of
the Borrower and its consolidated Subsidiaries as at
the end of such quarter and the related statements of
income and retained earnings of the Borrower and its
consolidated Subsidiaries for the period commencing
at the end of the previous fiscal year and ending
with the end of such quarter, certified by a
principal financial or accounting officer of the
Borrower; provided, however, that the Borrower may
deliver, in lieu of the foregoing, the quarterly
report of the Borrower for such fiscal quarter on
Form 10-Q filed with the Securities and Exchange
Commission or any governmental authority succeeding
to the functions of such Commission, but only so long
as the financial statements contained in such
quarterly report on Form 10-Q relate to the same
companies and are substantially the same in content
as the financial statements referred to in the
preceding provisions of this clause (i);
(ii) as soon as available and in any event
within 90 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 Subsidiaries,
containing the audited consolidated financial
statements of the Borrower and its consolidated
Subsidiaries for such year and accompanied by an
auditors' report of Deloitte & Touche or other
independent public accountants of nationally
recognized standing that such financial statements
were prepared in accordance with generally accepted
accounting standards and present fairly the
consolidated financial condition of the Borrower and
its consolidated Subsidiaries and results of
operations of the Borrower and its consolidated
Subsidiaries;
(iii) promptly after the sending or filing
thereof, copies of all reports which the Borrower
sends to its stockholders generally, and copies of
all reports and registration statements (without
exhibits) which the Borrower files with the
Securities and Exchange Commission or any national
securities exchange (other than registration
statements relating to employee benefit plans);
(iv) promptly after the filing or receiving
thereof, copies of any notices of any of the events
set forth in Section 4043(b) of ERISA or the
regulations thereunder which the Borrower or any
Subsidiary files with the PBGC, or which the Borrower
or any Subsidiary receives from the PBGC to the
effect that proceedings or other action by the PBGC
is to be instituted;
(v) such other information respecting the
condition or operations, financial or otherwise, of
the Borrower or any of its Subsidiaries as any Bank
through the Administrative Agent may from time to
time reasonably request; and
(vi) at any time the Borrower is not a
publicly-reporting company, upon the request of
Administration Agent (and in a form acceptable to
Administrative Agent), such information respecting
the condition or operations, financial or otherwise,
of the Borrower or any of its Subsidiaries as the
Borrower would have included in any reports filed
with the Securities and Exchange Commission if it had
continued to be a publicly-reporting company.
(c) Notices. Promptly give notice to the
Administrative Agent and each Bank:
(i) of the occurrence of any Event of
Default or any event which, with the giving of notice
or the passage of time, or both, would become an
Event of Default; and
(ii) of the commencement of any litigation,
investigation, or proceeding affecting the Borrower
or any of its Subsidiaries before any court,
governmental authority, or arbitrator which, in the
reasonable judgment of the Borrower, could have a
material adverse effect on the business, operations,
property, or financial or other condition of the
Borrower and its Subsidiaries, taken as a whole.
26
Each notice pursuant to this subsection shall be accompanied
by a statement of the Borrower, setting forth details of the
occurrence referred to therein and stating what action the
Borrower proposes to take with respect thereto.
(d) Certificates. Furnish to the Banks:
(i) concurrently with the delivery of the
financial statements referred to in Section
5.01(b)(ii), a letter signed by the independent
public accountants, certifying such financial
statements to the effect that, in the course of the
examination upon which their report for such fiscal
year was based (but without any special or additional
audit procedures for that purpose other than review
of the terms and provisions of this Agreement), they
did not become aware of any Event of Default
involving financial or accounting matters or any
condition or event which, after notice or lapse of
time, or both, would constitute such an Event of
Default, or, if such accountants became aware of any
such Event of Default or other condition or event,
specifying the nature thereof; and
(ii) concurrently with the delivery of the
financial statements or Form 10-Q referred to in
Sections 5.01(b)(i) and (ii), a certificate of a
Financial Officer of the Borrower, stating that, to
the best of such officer's knowledge, the Borrower
during such period has observed or performed, all of
its covenants and other agreements, and satisfied
every condition, contained in this Agreement to be
observed, performed, or satisfied by it, and that
such officer has obtained no knowledge of any Event
of Default or any event which, with notice or lapse
of time, or both, would become an Event of Default,
except as specified in such certificate.
SECTION 5.02 Negative Covenants. So long as any Advance shall
remain unpaid or any Bank shall have any Commitment hereunder, the Borrower will
not, without the written consent of the Majority Banks:
(a) Liens, Etc.
(i) Create, assume, incur, or suffer to
exist, or permit any Subsidiary to create, assume,
incur, or suffer to exist, any Lien upon any stock or
indebtedness, whether now owned or hereafter
acquired, of any Subsidiary, to secure any Debt of
the Borrower or any other Person (other than the
Advances made hereunder), without in any such case
making effective provision whereby all of the
Advances made hereunder shall be directly secured
equally and ratably with such Debt, excluding,
however, from the operation of the foregoing
provisions of this paragraph (i) any Lien upon stock
or indebtedness of any corporation existing at the
time such corporation becomes a Subsidiary, or
existing upon stock or indebtedness of a Subsidiary
at the time of acquisition of such stock or
indebtedness, and any extension, renewal, or
replacement (or successive extensions, renewals, or
replacements) in whole or in part of any such Lien;
provided, however, that the principal amount of Debt
secured thereby shall not exceed the principal amount
of Debt so secured at the time of such extension,
renewal, or replacement; and provided further, that
such Lien shall be limited to all or such part of the
stock or indebtedness which secured the Lien so
extended, renewed, or replaced;
(ii) Create, assume, incur, or suffer to
exist, or permit any Restricted Subsidiary to create,
assume, incur or suffer to exist, any Lien upon any
Principal Property, whether owned or leased on the
date hereof or hereafter acquired, to secure any Debt
of the Borrower or any other Person (other than the
Advances made hereunder), without in any such case
making effective provision whereby all of the
Advances made hereunder shall be directly secured
equally and ratably with such Debt, excluding,
however, from the operation of the foregoing
provisions of this paragraph (ii):
(A) any Lien upon property owned or
leased by any corporation existing at the
time such corporation becomes a Restricted
Subsidiary, so long as such Lien covers
either (x) the assets so encumbered
immediately prior to an acquisition of the
Restricted
27
Subsidiary or (y) assets substituted for any
assets described in clause (x) preceding
(the "acquired assets"), so long as the
approximate fair market value of the
substituted assets does not exceed the
approximate fair market value of the
acquired assets for which the substitution
is being made;
(B) any Lien upon property existing
at the time of acquisition thereof or to
secure the payment of all or any part of the
purchase price thereof or to secure any Debt
incurred prior to, at the time of, or within
180 days after, the acquisition of such
property for the purpose of financing all or
any part of the purchase price thereof, so
long as such Lien is limited to the property
so acquired;
(C) any Lien upon property to
secure all or any part of the cost of
exploration, drilling, development,
construction, alteration, repair, or
improvement of all or any part of such
property, or Debt incurred prior to, at the
time of, or within 180 days after, the
completion of such exploration, drilling,
development, construction, alteration,
repair, or improvement for the purpose of
financing all or any part of such cost;
(D) any Lien securing Debt of a
Restricted Subsidiary owing to the Borrower
or to another Restricted Subsidiary;
(E) any Lien existing on the date
of execution of this Agreement and set forth
on Schedule III hereto;
(F) Liens created in favor of Banks
to secure the Obligation;
(G) Any Liens securing Debt of
Borrower under the Existing Credit
Agreement, so long as the Banks are granted
Liens of equal priority upon any property to
which such Liens under the Existing Credit
Agreement attach; and
(H) any extension, renewal, or
replacement (or successive extensions,
renewals, or replacements) in whole or in
part of any Lien referred to in the
foregoing clauses (A) to (G), inclusive;
provided, however, that the principal amount
of Debt secured thereby shall not exceed the
principal amount of Debt so secured at the
time of such extension, renewal, or
replacement; and provided further, that such
Lien shall be limited to all or such part of
the property which secured the Lien so
extended, renewed, or replaced (plus
improvements on such property).
Notwithstanding the foregoing provisions of this
paragraph (ii), the Borrower may, and may permit any
Restricted Subsidiary to, create, assume, incur, or
suffer to exist any Lien upon any Principal Property
which is not excepted by clauses (A) through (F),
above, without equally and ratably securing the
Advances; provided that the aggregate amount of Debt
then outstanding secured by such Lien and all similar
Liens does not exceed the greater of (i)
$150,000,000.00, and (ii) 10% of the total
consolidated stockholders' equity of the Borrower as
shown on the most recently audited consolidated
balance sheet required to be delivered to the Banks
pursuant to Section 5.01(b). For the purpose of this
paragraph (ii), the following types of transactions
shall not be deemed to create a Lien to secure any
Debt:
(A) the sale or other transfer of
(y) any oil, gas, or minerals in place for a
period of time until, or in an amount such
that, the purchaser will realize therefrom a
specified amount of money (however
determined) or a specified amount of such
oil, gas, or minerals, or (z) any other
interest in property of the character
commonly referred to as a "production
payment";
28
(B) any Lien in favor of the United
States of America or any state thereof, or
any other country, or any political
subdivision of any of the foregoing, to
secure partial, progress, advance, or other
payments pursuant to the provisions of any
contract or statute, or any Lien upon
property of the Borrower or a Restricted
Subsidiary intended to be used primarily for
the purpose of, or in connection with, air
or water pollution control; provided that no
such Lien shall extend to any other property
of the Borrower or a Restricted Subsidiary.
(b) Debt. (i) Create or suffer to exist any Debt if,
immediately after giving effect to such Debt and the receipt and application of
any proceeds thereof, the aggregate amount of Debt of the Borrower and its
consolidated Subsidiaries, on a consolidated basis, would exceed 65% of the sum
of the total consolidated stockholders' equity of the Borrower and its
Subsidiaries as shown on the most recently consolidated balance sheet required
to be delivered to the Banks pursuant to Section 5.01(b), and the aggregate
amount of Debt of the Borrower and its consolidated Subsidiaries; and (ii) not
permit any of its Subsidiaries to incur any Debt which, in the aggregate for all
such Subsidiaries, would exceed the greater of (A) $150,000,000.00 and (B) 10%
of the total consolidated stockholder's equity of the Borrower as shown on the
most recently consolidated balance sheet required to be delivered to the Banks
pursuant to Section 5.01(b).
(c) Restriction on Fundamental Changes of the
Borrower. Enter into any transaction of merger or consolidation, or convey,
transfer, or lease its properties and assets substantially as an entirety to any
Person, unless:
(i) either (A) Borrower (in any merger or
consolidation involving Borrower) is the surviving
entity, or (B) the corporation formed by such
consolidation or into which the Borrower is merged or
the Person which acquires by conveyance or transfer,
or which leases, the properties and assets of the
Borrower substantially as an entirety (the "Successor
Corporation") shall either (x) immediately after
giving effect to such merger, consolidation,
conveyance, transfer, or lease, have then-effective
ratings (or implied ratings) published by Xxxxx'x and
S&P applicable to such Successor Corporation's
senior, unsecured, non-credit-enhanced, long term
indebtedness for borrowed money, which ratings shall
be Baa3 or higher (if assigned by Xxxxx'x) or BBB- or
higher (if assigned by S&P), or (y) be acceptable to
Majority Banks in their reasonable determination;
(ii) any Successor Corporation shall be a
corporation organized and existing under the laws of
the United States of America, any state thereof or
the District of Columbia, and shall expressly assume,
by amendment to this Agreement executed by the
Borrower and such Successor Corporation and delivered
to the Administrative Agent, the due and punctual
payment of the principal of, and interest on, the
Advances made hereunder and another amounts payable
under this Agreement and the performance or
observance of every covenant hereof on the part of
the Borrower or such Principal Subsidiary to be
performed or observed;
(iii) immediately after giving effect to
such transaction, no Event of Default and no event
which, with notice or lapse of time, or both, would
become an Event of Default, shall have occurred and
be continuing;
(iv) if, as a result of any such
consolidation or merger or such conveyance, transfer
or lease, properties or assets of the Borrower or any
Principal Subsidiary would become subject to a Lien
which would not be permitted by Section 5.02(a), the
Borrower, the Principal Subsidiary, or the Successor
Corporation, as the case may be, shall take such
steps as shall be necessary effectively to secure the
Advances made hereunder equally and ratably with (or
prior to) all indebtedness secured thereby; and
(v) the Borrower shall have delivered to the
Administrative Agent a certificate signed by an
executive officer of the Borrower and a written
opinion of counsel satisfactory to the Administrative
Agent (who may be counsel to the Borrower), each
stating that such transaction and
29
such amendment to this Agreement comply with this
Section 5.02(c) and that all conditions precedent
herein provided for relating to such transaction have
been satisfied.
(d) Prohibition on Sale of UPRC Stock and Fundamental
Changes of UPRC. (i) Convey, sell, assign, or otherwise transfer (or permit any
Subsidiary to so convey, sell, assign, or transfer) all or any of the shares of
capital stock of Union Pacific Resources Company ("UPRC") or any Successor
Subsidiary (as hereinafter defined) now owned or hereafter acquired by the
Borrower or any Subsidiary, and (ii) permit UPRC or any Successor Subsidiary (as
hereinafter defined) to enter into any transaction of merger or consolidation
with, or to convey, transfer, or lease its properties substantially as an
entirety to, any Person, other than, mergers or consolidations with, or
conveyances, transfers, or leases to, Borrower or any other Subsidiary. For
purposes of this subsection, "Successor Subsidiary" shall mean any Subsidiary
which is formed by any merger or consolidation of UPRC or which acquires by
conveyance, transfer, or lease substantially all the properties of UPRC or any
Successor Subsidiary.
(e) Ratio of Maximum Total Debt to Total Capital.
Permit the ratio (expressed as a percentage and as calculated at the end of each
fiscal quarter of the Borrower) that (a) the aggregate amount of the
consolidated Debt of Borrower and its consolidated Subsidiaries bears to (b) the
sum of (i) the total consolidated stockholder's equity of Borrower and its
Subsidiaries plus the consolidated Debt of Borrower and its consolidated
Subsidiaries to be more than 65%.
(f) Compliance with ERISA. To the extent that any
event or action set forth in clauses (i) through (iv) below would subject the
Borrower and its Subsidiaries taken as a whole to any material liability to the
PBGC or otherwise, (i) terminate, or permit any Subsidiary to terminate, any
Plan; (ii) engage in, or permit any Subsidiary to engage in, any "prohibited
transaction" (as defined in Section 4975 of the Code) involving any Plan; (iii)
incur or suffer to exist, or permit any Subsidiary to incur or suffer to exist,
any "accumulated funding deficiency" (as defined in Section 302 of ERISA),
whether or not waived, involving any Plan; or (iv) allow or suffer to exist, or
permit any Subsidiary to allow or suffer to exist, any event or condition which
presents a risk of incurring a liability to the PBGC by reason of termination of
any Plan.
(g) Affiliate Transactions. Enter into (or permit any
Restricted Subsidiary to enter into) any material transaction with any of its
Affiliates, other than any transaction described in public documents filed with
the Securities and Exchange Commission or otherwise disclosed publicly prior to
the date of the initial Borrowing under this Agreement, or any transaction in
the ordinary course of business and upon fair and reasonable terms not
materially less favorable than Borrower or such Restricted Subsidiary could
obtain or could be entitled to in an arm's-length transaction with a Person that
was not its Affiliate.
(h) Principal Subsidiaries. Permit the combined
EBITDAX of the Principal Subsidiaries to be less than 80% of the consolidated
EBITDAX of the Borrower and its Subsidiaries as shown on the most recent
consolidated balance sheet required to be delivered to the Banks pursuant to
Section 5.01(c).
ARTICLE VI. EVENTS OF DEFAULT
SECTION 6.01 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 Advance when the same becomes due and payable; provided, that if any such
failure shall result from the malfunctioning or shutdown of any wire transfer or
other payment system employed by the Borrower to make such payment or from an
inadvertent error of a technical or clerical nature by the Borrower or any bank
or other entity employed by the Borrower to make such payment, no Event of
Default shall result under this paragraph (a) during the period (not in excess
of two Business Days) required by the Borrower to make alternate payment
arrangements; or
30
(b) the Borrower shall fail to pay any interest on
any Advance or any fee payable hereunder or under any agreement executed in
connection herewith when the same becomes due and payable and such failure shall
remain unremedied for ten days; or
(c) any representation or warranty made by the
Borrower herein or by the Borrower (or any of its officers) in connection with
this Agreement (including, without limitation, any representation or warranty
deemed made by the Borrower at the time of any Advance pursuant to Article III)
shall prove to have been incorrect in any material respect when made or deemed
made; or
(d) 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 if such failure shall remain unremedied for 30 days after
written notice thereof shall have been given to the Borrower by the
Administrative Agent or any Bank; or
(e) an event of default as defined in any mortgage,
indenture, or instrument under which there may be issued, or by which there may
be secured or evidenced, any Debt of the Borrower or any Principal Subsidiary,
whether such Debt now exists or shall hereafter be created, shall happen and
shall result in Debt of the Borrower in excess of $25,000,000 principal amount
becoming or being declared due and payable prior to the date on which it would
otherwise become due and payable, and such declaration shall not be rescinded or
annulled; or
(f) (i) the Borrower or any Principal Subsidiary
shall commence any case, proceeding, or other action (A) under any existing or
future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition, or other relief with respect to it or its
debts, or (B) seeking appointment of a receiver, trustee, custodian, or other
similar official for it or for all or any substantial part of its assets, or the
Borrower or any Principal Subsidiary shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against the Borrower
or any Principal Subsidiary any case, proceeding or other action of a nature
referred to in clause (i) above which (A) results in the entry of an order for
relief or any such adjudication or appointment or (B) remains undismissed,
undischarged, or unbonded for a period of 60 days; or (iii) there shall be
commenced against the Borrower or any Principal Subsidiary any case, proceeding,
or other action seeking issuance of a warrant of attachment, execution,
distraint, or similar process against all or any substantial part of its assets
which results in the entry of an order for any such relief which shall not have
been vacated, discharged, or stayed or bonded pending appeal within 60 days from
the entry thereof; or (iv) the Borrower or any Principal Subsidiary shall take
any action in furtherance of or indicating its consent to, approval of, or
acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above;
or (v) the Borrower or any Principal Subsidiary shall generally not, or shall be
unable to, or shall admit in writing its inability to, pay its debts as they
become due;
(g) a Material Plan shall fail to maintain the
minimum funding standards required by Section 412 of the Code for any plan year
or a waiver of such standard is sought or granted under Section 412(d), or a
Material Plan is, shall have been, or will be terminated or the subject of
termination proceedings under ERISA, or the Borrower or any of its Subsidiaries
or any ERISA Affiliate has incurred or will incur a liability to or on account
of a Material Plan under Sections 4062, 4063, or 4064 of ERISA, and there shall
result from any such event either a liability or a material risk of incurring a
liability to the PBGC or a Material Plan (or a related trust) which will have a
material adverse effect upon the business, operations or the condition
(financial or otherwise) of the Borrower and its Subsidiaries, taken as a whole;
(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), will have a material adverse effect upon the business,
operations, or the condition (financial or otherwise) of the Borrower and its
Subsidiaries, taken as a whole; or
(i) any Event of Default described in the Existing
Credit Agreement shall occur;
31
then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of Majority Banks, by notice to the Borrower, declare
the obligation of each Bank to make Advances to be terminated, whereupon the
same shall forthwith terminate, (ii) shall at the request, or may with the
consent, of Banks owed at least 51% of the then aggregate unpaid principal
amount of the Advances owing to Banks, by notice to the Borrower, declare the
Advances, all interest thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Advances, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest, notice of intention to accelerate, notice
of acceleration, or further notice of any kind, all of which are hereby
expressly waived by the Borrower; and (iii) shall at the request of, or may with
the consent of Majority Banks, exercise any and all other legal and equitable
rights afforded by the Loan Papers, applicable law, or in equity, including, but
not limited to, the right to bring suit or other proceedings for specific
performance or otherwise in aid of any right granted to Administrative Agent or
any Bank hereunder; provided, however, that in the event of an actual or deemed
entry of an order for relief with respect to the Borrower or any of its
Subsidiaries under the Federal Bankruptcy Code, (A) the obligation of each Bank
to make Advances shall automatically be terminated and (B) the Advances, all
such interest and all such amounts shall automatically become and be due and
payable, without presentment, demand, protest, or any notice of any kind, all of
which are hereby expressly waived by the Borrower.
ARTICLE VII. THE ADMINISTRATIVE AGENT
SECTION 7.01 Authorization and Action. Each Bank hereby
appoints and authorizes the Administrative Agent to take such action as
administrative 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, without
limitation, enforcement or collection of the amounts due hereunder), 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 Banks, and such instructions shall be binding upon all Banks and
all holders of Advances; 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 Bank prompt notice of each notice
given to it by the Borrower pursuant to the terms of this Agreement.
SECTION 7.02 Administrative Agent's Reliance, Etc. Neither the
Administrative Agent nor any of its directors, officers, agents, or employees
shall be liable for any action taken or omitted to be taken by it or them under
or in connection with this Agreement, except for its or their own gross
negligence or wilful misconduct. Without limitation of the generality of the
foregoing, the Administrative Agent: (i) 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 faith by it in accordance with the advice of such counsel,
accountants, or experts; (ii) makes no warranty or representation to any Bank
and shall not be responsible to any Bank for any statements, warranties, or
representations made in or in connection with this Agreement; (iii) 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; (iv) shall not be responsible to any Bank for the due execution,
legality, validity, enforceability, genuineness, sufficiency, or value of this
Agreement or any other instrument or document furnished pursuant hereto; and (v)
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 telecopy, telegram or cable) believed by it to be genuine and signed or sent
by the proper party or parties.
SECTION 7.03 Administrative Agent and Affiliates. With respect
to its Commitment, Texas Commerce Bank National Association shall have the same
rights and powers under this Agreement as any other Bank and may exercise the
same as though it were not the Administrative Agent; and the term "Bank" or
"Banks" shall, unless otherwise expressly indicated, include Texas Commerce Bank
National Association in its individual capacity. Texas Commerce Bank National
Association 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
32
who may do business with or own securities of the Borrower or any such
subsidiary, all as if Texas Commerce Bank National Association were not the
Administrative Agent and without any duty to account therefor to the Banks.
SECTION 7.04 Bank Credit Decision. Each Bank acknowledges that
it has, independently and without reliance upon the Administrative Agent or any
other Bank and based on the financial statements referred to in Section 4.01 and
such other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement. Each Bank also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Bank and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement.
SECTION 7.05 Indemnification. The Banks agree to indemnify
each Agent, acting in their respective agency capacities, (to the extent not
reimbursed by the Borrower), ratably as computed as set forth below from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses, or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by, or asserted against such
Agent in any way relating to, or arising out of, this Agreement or any action
taken or omitted by such Agent under this Agreement; provided that no Bank shall
be liable to any Agent for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses, or disbursements
resulting from such Agent's gross negligence or wilful misconduct. Without
limitation of the foregoing, each Bank agrees to reimburse the Administrative
Agent promptly upon demand for its ratable share of any out-of-pocket expenses
(including counsel fees) incurred by the Administrative Agent in connection with
the preparation, execution, delivery, administration, modification, amendment,
or enforcement (whether through negotiations, legal proceedings, or otherwise)
of, or legal advice in respect of rights or responsibilities under, this
Agreement, to the extent that the Administrative Agent is not reimbursed for
such expenses by the Borrower. For purposes of this Section 7.05, ratable
allocations among the Banks shall be made (i) in respect of any demand by the
Administrative Agent prior to a declaration made pursuant to clause (ii) of
Section 6.01, according to the respective amounts of their Commitments and (ii)
thereafter according to the respective principal amounts of the Advances then
outstanding to them.
SECTION 7.06 Successor Administrative Agent. The
Administrative Agent may resign at any time by giving written notice thereof to
the Banks and the Borrower and may be removed at any time with or without cause
by the Majority Banks. Upon any such resignation or removal, the Majority Banks
shall have the right to appoint a successor Administrative Agent with the
consent of the Borrower (which consent shall not be required if at the time of
such appointment any Event of Default or an event which with the passage of time
or the giving of notice or both would become an Event of Default has occurred
and is continuing). If no successor Administrative Agent shall have been so
appointed by the Majority Banks, and shall have accepted such appointment,
within 30 days after the retiring Administrative Agent's giving of notice of
resignation or the Majority Banks' removal of the retiring Administrative Agent,
then the retiring Administrative Agent may, on behalf of the Banks, appoint a
successor Administrative Agent, which shall be a commercial bank organized or
licensed 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 VII 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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ARTICLE VIII. MISCELLANEOUS
SECTION 8.01 Amendments, Etc. No amendment or waiver of any
provision of this Agreement, nor consent to any departure by the Borrower
therefrom, shall in any event be effective, unless the same shall be in writing
and signed by the Majority Banks, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no amendment, waiver, or consent shall, unless in
writing and signed by all the Banks, do any of the following: (a) waive any of
the conditions specified in Section 3.01 or 3.02 (if and to the extent that the
Borrowing which is the subject of such waiver would involve an increase in the
aggregate outstanding amount of Advances over the aggregate amount of Advances
outstanding immediately prior to such Borrowing), (b) increase the Commitments
of the Banks or subject the Banks to any additional obligations, (c) reduce the
principal of, or interest on, the Advances or any fees or other amounts payable
hereunder, (d) postpone any date fixed for any payment of principal of, or
interest on, the Advances or any fees or other amounts payable hereunder, (e)
make any change which would alter the percentage of the Commitments or of the
aggregate unpaid principal amount of the Advances, or the number of Banks, which
shall otherwise be required for the Banks or any of them to take any action
hereunder, 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 Banks required above to take such
action, affect the rights or duties of the Administrative Agent under this
Agreement.
SECTION 8.02 Notices, Etc. All notices and other
communications provided for hereunder shall be in writing (including telecopy,
telegraphic, or cable communication and telecopied, mailed, telegraphed, cabled,
or delivered, if to the Borrower, at its address at X.X. Xxx 0, 000 Xxxxxx
Xxxxxx, Xxxx Xxxxx, Xxxxx 00000; if to any Bank listed on Schedule I hereto, at
its Notice Address specified opposite its name on Schedule I hereto; if to any
other Bank, at its Domestic Lending office specified in the Assignment and
Acceptance pursuant to which it became a Bank; if to the Administrative Agent,
at its address at Texas Commerce Tower, Energy Department, 0000 Xxxx Xxxxxx, 0xx
Xxxxx, Xxxxxx, Xxxxx 00000, Attention: Xxx Xxxxxxxxx; and if to Auction
Administration Agent, c/o the Loan and Agency Services Group, at its address at
One Chase Xxxxxxxxx Xxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention:
Xxxxxx Xxxxxxx; or, as to the Borrower, any Bank, or the Administrative Agent,
at such other address as shall be designated by such party in a written notice
to the other parties and, as to each other party, at such other address as shall
be designated by such party in a written notice to the Borrower and the
Administrative Agent. All such notices and communications shall, when
telecopied, mailed, telegraphed, or cabled, be effective when sent by telecopy,
deposited in the mails, delivered to the telegraph company, or delivered to the
cable company, respectively, except that notices and communications to the
Administrative Agent pursuant to Article II or VII shall not be effective until
received by the Administrative Agent. The Administrative Agent shall be entitled
to rely on any oral notice made pursuant to Section 2.03(a)(v) believed by it to
be genuine and made by the proper party or parties, and the Borrower and the
Banks, as the case may be, agree to be conclusively bound by the Administrative
Agent's records in respect of any such notice.
SECTION 8.03 No Waiver; Remedies. No failure on the part of
any Bank or the Administrative Agent to exercise, and no delay in exercising,
any right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right 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 8.04 Costs, Expenses and Taxes
(a) The Borrower agrees to pay on demand all costs
and expenses in connection with the preparation, execution, delivery,
administration, modification, and amendment of this Agreement, the Loan Papers,
and the other documents to be delivered hereunder, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for the
Administrative Agent with respect thereto and with respect to advising the
Administrative Agent as to its rights and responsibilities under this Agreement,
and all costs and expenses, if any (including, without limitation, reasonable
counsel fees and expenses), incurred by the Administrative Agent or any Bank in
connection with the enforcement (whether through negotiations, legal
proceedings, or otherwise) of this Agreement and the other documents to be
delivered hereunder. 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 the execution
34
and delivery of this Agreement and agrees to save the Administrative Agent and
each Bank harmless from and against any and all liabilities with respect to or
resulting from any delay in paying or omission to pay such taxes.
(b) If any payment of principal of any Adjusted CD
Rate Advance, Eurodollar Rate Contract Advance, or Competitive Advance is made
by the Borrower to or for the account of a Bank other than on the last day of
the Interest Period for such Contract Advance, or on the maturity date of such
Competitive Advance, as the case may be, or as a result of a payment pursuant to
Section 2.07(c), or as a result of acceleration of the maturity of the Advances
pursuant to Section 6.01, or for any other reason, or by an Eligible Assignee to
a Bank other than on the last day of the Interest Period (or the final maturity
date in the case of a Competitive Advance) for such Advance upon an assignment
of rights and obligations under this Agreement pursuant to Section 8.07 as a
result of a demand by the Borrower pursuant to Section 8.07(a), or an assignment
of rights and obligations under this Agreement pursuant to Section 2.17 as a
result of a demand by the Borrower, or if the Borrower fails to convert or
continue any Contract Advance hereunder after irrevocable notice of such
conversion or continuation has been given pursuant to Section 2.04, the Borrower
shall, upon demand by such Bank (with a copy of such demand to the
Administrative Agent), pay to the Administrative Agent for the account of such
Bank any amounts required to compensate such Bank for any additional losses,
costs, or expenses which it may reasonably incur as a result of such payment or
failure, including, without limitation, any loss (including loss of anticipated
profits), cost, or expense incurred by reason of the liquidation or reemployment
of deposits or other funds acquired by such Bank to fund or maintain such
Advance. A certificate of such Bank setting forth the amount demanded hereunder
and the basis therefor shall, in the absence of manifest error, be conclusive
and binding for all purposes.
SECTION 8.05 Right of Set-off. Upon (i) the occurrence and
during the continuance of any Event of Default and (ii) the making of the
request or the granting of the consent specified by Section 6.01 to authorize
the Administrative Agent to declare the Advances due and payable pursuant to the
provisions of Section 6.01, each Bank 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 Bank to or for
the credit or the account of the Borrower against any and all of the Obligation
of the Borrower now or hereafter existing under this Agreement and the Advances
made by such Bank, irrespective of whether or not such Bank shall have made any
demand under this Agreement and although such obligations may be unmatured. Each
Bank agrees promptly to notify the Borrower and the Administrative Agent after
any such set-off and application made by such Bank; provided that the failure to
give such notice shall not affect the validity of such set-off and application.
The rights of each Bank under this Section 8.05 are in addition to other rights
and remedies (including, without limitation, other rights of set-off) which such
Bank may have.
SECTION 8.06. Binding Effect. This Agreement shall become
effective when it shall have been executed by the Borrower and the
Administrative Agent and when the Administrative Agent shall have been notified
by each Bank that such Bank has executed it and thereafter shall be binding upon
and inure to the benefit of the Borrower, the Administrative Agent, and each
Bank and their respective successors and assigns.
SECTION 8.07 Assignments and Participations.
(a) Each Bank may and, if demanded by the Borrower
pursuant to subsection (g) hereof, shall assign to one or more banks or other
entities all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitment and the
Advances owing to it); provided, however, that (i) each such assignment shall be
of a constant, and not a varying, percentage of all of the rights and
obligations of the Banks under this Agreement, (ii) the amount of the Commitment
of the assigning Bank being assigned pursuant to each such assignment
(determined as of the date of the Assignment and Acceptance with respect to such
assignment) shall in no event be less than $10,000,000 and shall 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
(as defined in Section 8.07(c)), an Assignment and Acceptance, together with a
processing fee of $2,500. Upon such execution, delivery, acceptance, and
recording, from and after the effective date specified in each Assignment and
Acceptance, which effective date shall be at least three Business Days after the
execution thereof, (x) the assignee thereunder 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
35
rights and obligations of a Bank hereunder, and (y) the Bank 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
Bank's rights and obligations under this Agreement, such Bank shall cease to be
a party hereto). Notwithstanding the foregoing (unless such assignment is being
made on demand of the Borrower pursuant to subsection (g)), any Bank assigning
its rights and obligations under this Agreement may retain any Competitive
Advances made by it outstanding at such time, and in such case shall retain its
rights hereunder in respect of any Advances so retained until such Advances have
been repaid in full in accordance with this Agreement.
(b) By executing and delivering an Assignment and
Acceptance, the Bank 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 Bank 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 Bank 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(e) and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Administrative Agent, such assigning Bank or any other Bank
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 an Eligible
Assignee, except for any required consent of the Borrower and Administrative
Agent; (vi) such assignee appoints and authorizes the Administrative Agent to
take such action as administrative 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 Bank.
(c) The Administrative Agent shall maintain at its
address referred to in Section 8.02 a copy of each Assignment and Acceptance
delivered to and accepted by it and a register for the recordation of the names
and addresses of the Banks and the Commitment of, and principal amount of the
Advances owing to, each Bank 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 Banks may treat each
Person whose name is recorded in the Register as a Bank hereunder for all
purposes of this Agreement. The Register shall be available for inspection by
the Borrower or any Bank 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 Bank and an assignee that it is an Eligible Assignee,
the Administrative Agent shall, if such Assignment and Acceptance has been
completed and is in substantially the form of Exhibit B hereto, and if the
processing fees required by Section 8.07 have been paid to Administrative Agent,
(i) accept such Assignment and Acceptance, (ii) record the information contained
therein in the Register, (iii) give prompt notice thereof to the Borrower, and
(iv) send a copy thereof to the Borrower.
(e) Each Bank may sell participations to one or more
banks or other entities in or to all or a portion of its rights and obligations
under this Agreement (including, without limitation, all or a portion of its
Commitment and the Advances owing to it); provided, however, that (i) such
Bank's obligations under this Agreement (including, without limitation, its
Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Bank
shall remain solely responsible to the other parties hereto for the performance
of such obligations, and (iii) the Borrower, the Administrative Agent, and the
other Banks shall continue to deal solely and directly with such Bank in
connection with such Bank's rights and obligations under this Agreement; and
provided further, however, that such Bank shall not agree with any such bank or
other financial institution to permit such bank or other financial institution
to enforce the obligations of the Borrower relating to the Advances or to
approve of any amendment, modification,
36
or waiver of any provision of this Agreement (other than amendments,
modifications, or waivers with respect to any decrease in any fees payable
hereunder or the amount of principal or rate of interest which is payable in
respect of such Advances or any extension of the dates fixed for the payment
thereof).
(f) Any Bank may, in connection with any assignment
or participation or proposed assignment or participation pursuant to this
Section 8.07, disclose to the assignee or participant or proposed assignee or
participant, any information relating to the Borrower furnished to such Bank by
or on behalf of the Borrower; provided that, prior to any such disclosure, the
assignee or participant or proposed assignee or participant, if not an Eligible
Assignee, shall agree to preserve the confidentiality of any confidential
information relating to the Borrower received by it from such Bank.
(g) If any Bank shall make demand for payment under
or shall notify the Borrower that it is affected by an event described in
Section 2.11 or 2.15 hereunder or shall notify the Administrative Agent pursuant
to Section 2.13 hereunder, then within 15 days after such demand or such notice,
the Borrower may (i) demand that such Bank assign in accordance with this
Section 8.07 to one or more Eligible Assignees designated by the Borrower all
(but not less than all) of such Bank's Commitment and the Advances owing to it
within the next succeeding 30 days; provided that, if any such Eligible Assignee
designated by the Borrower shall fail to consummate such assignment on terms
acceptable to such Bank, or if the Borrower shall fail to designate any such
Eligible Assignees for all or part of such Bank's Commitment or Advances, then
such Bank may assign such Commitment or Advances to any other Eligible Assignee
in accordance with this Section 8.07 during such 30-day period or (ii) terminate
all (but not less than all) of such Bank's Commitment and repay all (but not
less than all) of such Bank's Advances not so assigned on or before such 30th
day in accordance with Sections 2.06 and 2.07(c) hereof (but without the
requirements stated therein for ratable treatment of the Banks). Nothing in this
Section 8.07(g) shall relieve the Borrower of its obligations for payment under
Section 2.11 or 2.15 arising prior to an assignment or termination pursuant
hereto.
(h) Any Bank may at any time assign all or any
portion of its rights under this Agreement to a Federal Reserve Bank; provided
that no such assignment shall release a Bank from any of its obligations
hereunder. In connection with any such assignment or proposed assignment, the
Borrower will, promptly upon the request of any Bank, execute and deliver to
such Bank a note evidencing the Borrower's obligations hereunder, in a form
mutually satisfactory to the Borrower and such Bank.
(i) This Section 8.07 sets forth the exclusive manner
by which a Bank may assign its rights and obligations hereunder or sell
participations in or to its rights and obligations hereunder.
(j) Each Bank agrees to notify the Borrower of any
assignment of or grant of a participating interest in any Advance, and of the
identity of the assignee or participant.
(k) The Borrower may not assign or delegate any
rights or obligations hereunder without the prior written consent of each Bank.
SECTION 8.08 Governing Law. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of New York.
SECTION 8.09 Exceptions to Covenants. The Borrower may not
take or fail to take any action that is permitted as an exception to any of the
covenants contained in any Loan Paper if that action or omission would result in
the breach of any other covenant contained in any Loan Paper.
SECTION 8.10 Survival. All covenants, agreements,
undertakings, representations, and warranties made in any of the Loan Papers
survive all closings under the Loan Papers until payment in full of the
Obligation and termination of this Agreement, except that Sections 2.11, 2.12,
2.15, 7.05, 8.04, and 8.15 (together with any other provisions in the Loan
Papers which expressly provides that it shall survive termination of this
Agreement) shall survive termination of this Agreement; and such covenants,
agreements, undertakings, representations, and warranties, except as otherwise
indicated, are not affected by any investigation made by any party.
37
SECTION 8.11 Invalid Provisions. Any provision in any Loan
Paper held to be illegal, invalid, or unenforceable is fully severable; the
appropriate Loan Paper shall be construed and enforced as if that provision had
never been included; and the remaining provisions shall remain in full force and
effect and shall not be affected by the severed provision. Administrative Agent,
Banks, and the Borrower party to the affected Loan Paper agree to negotiate, in
good faith, the terms of a replacement provision as similar to the severed
provision as may be possible and be legal, valid, and enforceable.
SECTION 8.12 Maximum Rate. Regardless of any provision
contained in any Loan Paper, no Bank shall ever be entitled to contract for,
charge, take, reserve, receive, or apply, as interest on the Obligation, or any
part thereof, any amount in excess of the Maximum Rate, and, if Banks ever do
so, then any excess shall be deemed a partial prepayment of principal and
treated hereunder as such and any remaining excess shall be refunded to the
Borrower. In determining if the interest paid or payable exceeds the Maximum
Rate, the Borrower and Banks shall, to the maximum extent permitted under
applicable law, (a) treat all Borrowings as but a single extension of credit
(and Lenders and Borrower agree that such is the case and that provision herein
for multiple Borrowings is for convenience only), (b) characterize any
nonprincipal payment as an expense, fee, or premium rather than as interest, (c)
exclude voluntary prepayments and the effects thereof, and (d) amortize,
prorate, allocate, and spread the total amount of interest throughout the entire
contemplated term of the Obligation; provided that if the Obligation is paid and
performed in full prior to the end of the full contemplated term thereof, and if
the interest received for its actual period of existence thereof exceeds the
Maximum Amount, Banks shall refund any excess (and Banks shall not, to the
extent permitted by law, be subject to any penalties provided by any laws for
contracting for, charging, taking, reserving, or receiving interest in excess of
the Maximum Amount).
SECTION 8.13 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 8.14 Not in Control. Nothing in any Loan Paper gives
or may be deemed to give to Administrative Agent or any Bank the right to
exercise control over the Borrower or any Subsidiary's Principal Property, other
assets, affairs, or management or to preclude or interfere with the Borrower or
any Subsidiary's compliance with any law or require any act or omission by the
Borrower or any Subsidiary that may be harmful to Persons or property. Any
materiality or substantiality qualifier of any representation, warranty,
covenant, agreement, or other provision of any Loan Paper is included for credit
documentation purposes only and does not imply, and shall not be deemed to mean,
that Administrative Agent or any Bank acquiesces in any non-compliance by the
Borrower or any Subsidiary with any law, document, or otherwise or does not
expect the Borrower or any Subsidiary to promptly, diligently, and continuously
carry out all appropriate removal, remediation, compliance, closure, or other
activities required or appropriate in accordance with all Environmental Laws.
SECTION 8.15 INDEMNIFICATION. THE BORROWER SHALL INDEMNIFY,
PROTECT, AND HOLD AGENTS, CHASE SECURITIES INC., EACH BANK, AND THEIR RESPECTIVE
AFFILIATES, PARENTS, AND SUBSIDIARIES, AND EACH OF THE FOREGOING PARTIES'
RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, REPRESENTATIVES, AGENTS, SUCCESSORS,
ASSIGNS, AND ATTORNEYS (COLLECTIVELY, THE "INDEMNIFIED PARTIES") HARMLESS FROM
AND AGAINST ANY AND ALL PRESENT AND FUTURE, KNOWN AND UNKNOWN, FIXED AND
CONTINGENT, LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS,
JUDGMENTS, SUITS, CLAIMS, AND PROCEEDINGS AND ALL REASONABLE AND NECESSARY
COSTS, EXPENSES (INCLUDING, WITHOUT LIMITATION, ALL REASONABLE ATTORNEYS' FEES
AND LEGAL EXPENSES, AND AMOUNTS PAID IN SETTLEMENT WHETHER OR NOT SUIT IS
BROUGHT), AND DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER (THE "INDEMNIFIED
LIABILITIES") WHICH MAY AT ANY TIME BE IMPOSED ON, INCURRED BY, OR ASSERTED
AGAINST THE INDEMNIFIED PARTIES, IN ANY WAY RELATING TO OR ARISING OUT OF (A)
ANY LOAN PAPERS OR TRANSACTION CONTEMPLATED BY ANY LOAN PAPER, OR (B) ANY
INDEMNIFIED PARTY'S SOLE OR CONCURRENT ORDINARY NEGLIGENCE ARISING IN CONNECTION
WITH ANY LOAN PAPER OR ANY TRANSACTION CONTEMPLATED BY ANY LOAN PAPER, TO THE
EXTENT THAT ANY OF THE INDEMNIFIED LIABILITIES AS TO ANY INDEMNIFIED PARTY
RESULTS, DIRECTLY OR INDIRECTLY, FROM ANY CLAIM MADE, OR ACTION, SUIT, OR
PROCEEDING COMMENCED BY OR ON BEHALF OF ANY PERSON OTHER THAN BY SUCH
INDEMNIFIED PARTY; (PROVIDED THAT, THE BORROWER SHALL HAVE NO OBLIGATION
HEREUNDER TO ANY INDEMNIFIED PARTY WITH RESPECT TO ANY INDEMNIFIED LIABILITY
ARISING FROM THE FRAUD, GROSS NEGLIGENCE, OR WILFUL MISCONDUCT OF SUCH
INDEMNIFIED PARTY OR
38
ANY ASSOCIATED PERSON OF SUCH INDEMNIFIED PARTY. AS USED IN THIS PARAGRAPH, THE
TERM "ASSOCIATED PERSON" MEANS, WITH RESPECT TO ANY PERSON, THE AFFILIATES,
PARENTS, SUBSIDIARIES, DIRECTORS, OFFICERS, EMPLOYEES, REPRESENTATIVES, AGENTS,
SUCCESSORS, ASSIGNS, AND ATTORNEYS OF SUCH PERSON, OR OF ANOTHER PERSON OF WHICH
SUCH PERSON IS ALSO AN ASSOCIATED PERSON. THE PROVISIONS OF AND UNDERTAKINGS AND
INDEMNIFICATION SET FORTH IN THIS SECTION SHALL SURVIVE THE SATISFACTION AND
PAYMENT OF THE OBLIGATION AND TERMINATION OF THIS AGREEMENT. THE BORROWER MAY,
AT ITS OWN COST AND EXPENSE, PARTICIPATE IN THE DEFENSE IN ANY PROCEEDING
INVOLVING ANY INDEMNIFIED LIABILITY. IF NO EVENT OF DEFAULT EXISTS, THE BORROWER
MAY ASSUME THE DEFENSE IN THAT PROCEEDING ON BEHALF OF THE APPLICABLE
INDEMNIFIED PARTIES, INCLUDING THE EMPLOYMENT OF COUNSEL IF FIRST APPROVED
(WHICH APPROVAL MAY NOT BE UNREASONABLY WITHHELD) BY THE APPLICABLE INDEMNIFIED
PARTIES. IF THE BORROWER ASSUMES ANY DEFENSE, IT SHALL KEEP THE APPLICABLE
INDEMNIFIED PARTIES FULLY ADVISED OF THE STATUS OF, AND SHALL CONSULT WITH THOSE
INDEMNIFIED PARTIES BEFORE TAKING ANY MATERIAL POSITION IN RESPECT OF, THAT
PROCEEDING. IF THE BORROWER CONSENTS OR IF ANY INDEMNIFIED PARTY REASONABLY
DETERMINES THAT AN ACTUAL CONFLICT OF INTEREST EXISTS BETWEEN THE BORROWER AND
THAT INDEMNIFIED PARTY WITH RESPECT TO THE SUBJECT MATTER OF THE PROCEEDING OR
THAT THE BORROWER IS NOT DILIGENTLY PURSUING THE DEFENSE, THEN (I) THAT
INDEMNIFIED PARTY MAY, AT THE BORROWER'S EXPENSE, EMPLOY COUNSEL TO REPRESENT
INDEMNIFIED PARTY THAT IS SEPARATE FROM COUNSEL FOR THE BORROWER OR ANY OTHER
PERSON IN THAT PROCEEDING AND (II) THE BORROWER IS NO LONGER ENTITLED TO ASSUME
THE DEFENSE ON BEHALF OF THAT INDEMNIFIED PARTY. THE BORROWER MAY NOT AGREE TO
THE SETTLEMENT OF ANY INDEMNIFIED LIABILITY WITHOUT THE PRIOR WRITTEN CONSENT OF
THE APPLICABLE INDEMNIFIED PARTIES UNLESS THAT SETTLEMENT FULLY RELIEVES THOSE
INDEMNIFIED PARTIES OF ANY LIABILITY WHATSOEVER FOR THAT INDEMNIFIED LIABILITY.
SECTION 8.16 Certain Agents. Neither the Syndication Agent nor
the Documentation Agent shall have any rights, powers, obligations, liabilities,
responsibilities, or duties under this Agreement other than those applicable to
all Banks as such.
SECTION 8.17 Entirety. THE LOAN PAPERS REPRESENT THE
FINAL AGREEMENT BETWEEN THE BORROWER, BANKS, AND ADMINISTRATIVE AGENT AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS BY SUCH PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN SUCH
PARTIES.
[Remainder of Page Intentionally Blank. Signature Pages Follow.]
39
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.
UNION PACIFIC RESOURCES GROUP INC.,
as Borrower
By:
--------------------------------
Name:
---------------------------
Title:
--------------------------
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION, as Administrative Agent and
as a Bank
By:
--------------------------------
Xxx Xxxxxxxxx
Vice President
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997,
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
NATIONSBANK OF TEXAS, N.A.,
as Syndication Agent and as a Bank
By:
-------------------------------
J. Xxxxx Xxxxxx
Vice President
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997,
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
BANK OF AMERICA NT&SA,
as Documentation Agent and as a Bank
By:
-----------------------------------
Name:
------------------------------
Title:
-----------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
TEXAS COMMERCE BANK
NATIONAL ASSOCIATION, as a Bank
By:
------------------------------
Name:
-------------------------
Title:
------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
BANK OF AMERICA NT&SA, as a Bank
By:
-----------------------------
Name:
------------------------
Title:
-----------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
CREDIT SUISSE FIRST BOSTON, as a Bank
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
ROYAL BANK OF CANADA, as a Bank
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
ABN AMRO BANK N.V., HOUSTON AGENCY
By: ABN AMRO North America, Inc., as
a Bank
By:
----------------------------------
H. Xxxx Xxxxxx
Vice President and Director
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
BANK OF MONTREAL, as a Bank
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
THE FIRST NATIONAL BANK
OF CHICAGO, as a Bank
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
MELLON BANK, N.A., as a Bank
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
THE INDUSTRIAL BANK OF JAPAN, LTD.,
NEW YORK BRANCH, as a Bank
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
XXXXX FARGO BANK (TEXAS), N.A., as
a Bank
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
BANQUE NATIONALE DE PARIS,
HOUSTON AGENCY, as a Bank
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
THE BANK OF NEW YORK, as a Bank
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
Signature Page to that certain $300,000,000.00 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
among Union Pacific Resources Group Inc., as Borrower, Texas Commerce Bank
National Association, as Administrative Agent, The Chase Manhattan Bank, as
Auction Administration Agent, Bank of America NT&SA, as Documentation Agent,
NationsBank of Texas, N.A., as Syndication Agent, and the Banks named therein,
including the undersigned.
THE NORTHERN TRUST COMPANY, as a Bank
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
SCHEDULE I
----------
Banks, Lending Offices, and Commitments
---------------------------------------
NOTICE ADDRESS
BANK (Other than Notices of DOMESTIC CD
Borrowing) LENDING OFFICE LENDING OFFICE
Texas Commerce Bank Texas Commerce Tower Texas Commerce Tower Texas Commerce Tower
National Association 0000 Xxxx Xxxxxx, 2200 Xxxx Avenue, 2200 Xxxx Avenue,
0xx Xxxxx 0xx Xxxxx 0xx Xxxxx
Xxxxxx, XX 00000 Xxxxxx, XX 00000 Xxxxxx, XX 00000
Attn: Xxx Xxxxxxxxx Attn: Xxxxxxx Xxxx Attn: Xxxxxxx Xxxx
Vice President
Bank of America Bank of America, NT&SA Bank of America, NT&SA Bank of America, NT&SA
NT&SA 333 Clay 333 Clay 000 Xxxx
Xxxxx 0000 Xxxxx 0000 Xxxxx 0000
Xxxxxxx, XX 00000 Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
Attn: Xxx XxXxxx Attn: Loans Administrator Attn: Loans Administrator
NationsBank of Texas, NationsBank of Texas, N.A. NationsBank of Texas, N.A. NationsBank of Texas, N.A.
N.A. 000 Xxxx Xxxxxx 000 Xxxx Xxxxxx 000 Xxxx Xxxxxx
00xx Xxxxx 00xx Xxxxx 00xx Xxxxx
Xxxxxx, XX 00000 Xxxxxx, XX 00000 Xxxxxx, XX 00000
Attn: J. Xxxxx Xxxxxx Attn: Xxx Xxxxxxxxxx Attn: Xxx Xxxxxxxxxx
Vice President
Credit Suisse First Credit Suisse First Boston Credit Suisse First Boston Credit Suisse First Boston
Boston 00 Xxxxxxx Xxxxxx 00 Xxxxxxx Xxxxxx 00 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000-0000 Xxx Xxxx, XX 00000-0000 Xxx Xxxx, XX 00000-0000
Attn: Xxxx Xxxxxxxx Attn: Xxxxx Xxxxxxx, Attn: Xxxxx Xxxxxxx,
Client Services Client Services
Royal Bank of Canada Royal Bank of Canada Royal Bank of Canada Royal Bank of Canada
00000 Xxxxxxxxxxx Xxxxx 1 Financial Square 1 Financial Square
Suite 0000 00xx Xxxxx 00xx Xxxxx
Xxxxxxx, XX 00000 Xxx Xxxx, XX 00000-0000 Xxx Xxxx, XX 00000-0000
Attn: Xxxxx X. Xxxxxxxx, Attn: Loans Administrator Attn: Loans Administrator
Manager
ABN-AMRO Bank, ABN-AMRO Bank, N.V. ABN-AMRO Bank, N.V. ABN-AMRO Bank, N.V.
N.V. Three Riverway Three Riverway Three Riverway
Suite 1700 Suite 1700 Suite 1700
Houston, TX 77056 Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
Attn: H. Xxxx Xxxxxx Attn: Xxxxxxxxx Xxxxxxxxx Attn: Xxxxxxxxx Xxxxxxxxx
Vice President and Director
Bank of Montreal Bank of Montreal Bank of Montreal Bank of Montreal
000 Xxxxxxxxx Xxxxxx 000 Xxxxxxxxx Xxxxxx 000 Xxxxxxxxx Xxxxxx
Xxxxx 0000 Suite 4400 Suite 4400
Houston, TX 77002 Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
Attn: Xxxxxx X. Xxxxxxx Attn: Xxxx X. Xxxxx Attn: Xxxx X. Xxxxx
Director Senior Officer, Senior Officer,
Client Services Client Services
The First National Bank Royal Bank of Canada Royal Bank of Canada Royal Bank of Canada
of Chicago 0000 Xxxxxxxxx Xxxxxx 1 First Xxxxxxxx Xxxxx 0 Xxxxx Xxxxxxxx Xxxxx
Xxxxx 0000 10th Floor 10th Floor
Houston, TX 77002 Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
Attn: Xxxxx Xxxxxxxxxx Attn: Xxxx Xxxxx Attn: Xxxx Xxxxx
Vice President
BANK EURODOLLAR LENDING COMMITMENT
OFFICE (In U.S. Dollars)
Texas Commerce Bank Texas Commerce Tower
National Association 0000 Xxxx Xxxxxx,
0xx Xxxxx
Xxxxxx, XX 00000 $27,000,000
Attn: Xxxxxxx Xxxx
Bank of America Bank of America, NT&SA
NT&SA 333 Clay
Suite 4550 $27,000,000
Xxxxxxx, XX 00000
Attn: Loans Administrator
NationsBank of Texas, NationsBank of Texas, N.A.
N.A. 000 Xxxx Xxxxxx
00xx Xxxxx
Xxxxxx, XX 00000 $27,000,000
Attn: Xxx Xxxxxxxxxx
Credit Suisse First Credit Suisse First Boston
Boston 00 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000-0000 $24,000,000
Attn: Xxxxx Xxxxxxx,
Client Services
Royal Bank of Canada Royal Bank of Canada
0 Xxxxxxxxx Xxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000-0000 $24,000,000
Attn: Loans Administrator
ABN-AMRO Bank, ABN-AMRO Bank, N.V.
N.V. Three Riverway
Suite 1700
Xxxxxxx, XX 00000 $19,000,000
Attn: Xxxxxxxxx Xxxxxxxxx
Bank of Montreal 000 Xxxxxxxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, XX 00000
Attn: Xxxx X. Xxxxx $19,000,000
Senior Officer,
Client Services
The First National Bank Royal Bank of Canada
of Chicago 1 First Xxxxxxxx Xxxxx
00xx Xxxxx
Xxxxxxx, XX 00000 $19,000,000
Attn: Xxxx Xxxxx
SCHEDULE I
----------
NOTICE ADDRESS
BANK (Other than Notices of DOMESTIC CD
Borrowing) LENDING OFFICE LENDING OFFICE
Mellon Bank, X.X. Xxxxxx Bank, X.X. Xxxxxx Bank, X.X. Xxxxxx Bank, N.A.
Three Mellon Bank Center Three Mellon Bank Center Three Mellon Bank Center
Room 2304 Room 2304 Room 2304
Xxxxxxxxxx, XX 00000 Xxxxxxxxxx, XX 00000 Xxxxxxxxxx, XX 00000
Attn: Xxxxxx Xxxxxxx Attn: Xxxxxx Xxxxxxx Attn: Xxxxxx Xxxxxxx
The Industrial Bank The Industrial Bank of Japan, The Industrial Bank of Japan, The Industrial Bank of Japan,
of Japan, Ltd., Ltd., New York Branch Ltd., New York Branch Ltd., New York Branch
New York Branch Three Xxxxx Center 1251 Avenue of the Americas 0000 Xxxxxx xx xxx Xxxxxxxx
Xxxxx 0000 Xxx Xxxx, XX 00000-0000 Xxx Xxxx, XX 00000-0000
000 Xxxx Xxxxxx Attn: Xx. Xxxxxxx Xxxxx Attn: Xx. Xxxxxxx Xxxxx
Xxxxxxx, XX 00000 Credit Administration Credit Administration
Attn: W. Xxxx Xxxxxxxxx
For Bid Notices:
The Industrial Bank of Japan,
Ltd., New York Branch
Three Xxxxx Center
Suite 4850
000 Xxxx Xxxxxx
Xxxxxxx, XX 00000
Attn: Xx. Xxxxxxx Xxxxx
Client Representative
Xxxxx Fargo Bank Xxxxx Fargo Bank (Texas), Xxxxx Fargo Bank (Texas), Xxxxx Fargo Bank (Texas),
(Texas), N.A. N.A. N.A. N.A.
0000 Xxxx Xxxxxx 1445 Xxxx Avenue 0000 Xxxx Xxxxxx
Xxxxx 000 Xxxxx 000 Xxxxx 000
Xxxxxx, XX 00000-0000 Xxxxxx, XX 00000-0000 Xxxxxx, XX 00000-0000
Attn: Xxxx Xxxxxxx Attn: Xxxx Xxxxxxx Attn: Xxxx Xxxxxxx
Banque Nationale de Banque Nationale de Paris, Banque Nationale de Paris, Banque Nationale de Paris,
Paris, Houston Agency Houston Agency Houston Agency Houston Agency
000 Xxxxx Xxxxxxx 000 Xxxx, Xxxxx 0000 333 Clay, Suite 3400
Suite 2630 Houston, TX 77002 Xxxxxxx, XX 00000
Xxxxxx, XX 00000 Attn: Xxxxx Xxxx Attn: Xxxxx Xxxx
Attn: Xxxxx Xxxx
The Bank of New York The Bank of New York The Bank of New York The Bank of New York
Xxx Xxxx Xxxxxx, 00xx Xx. Xxx Xxxx Xxxxxx Xxx Xxxx Xxxxxx, 00xx Xx.
Xxx Xxxx, XX 00000 00xx Xxxxx Xxx Xxxx, XX 00000
Attn: Xxxxxxx X. Xxxxxx, Xxx Xxxx, XX 00000 Attn: Xxxxxxx X. Xxxxxx,
Vice President Attn: Xxxxxxx X. Xxxxxx, Vice President
Vice President
The Northern Trust The Northern Trust Company The Northern Trust Company The Northern Trust Company
Company 00 Xxxxx XxXxxxx Xxxxxx 00 Xxxxx XxXxxxx Street 00 Xxxxx XxXxxxx Xxxxxx
0xx Floor 12th Floor 12th Floor
Chicago, IL 60675 Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
Attn: Xxxxx Xxxx Attn: Xxxxx Honda Attn: Xxxxx Honda
BANK EURODOLLAR LENDING COMMITMENT
OFFICE (In U.S. Dollars)
Mellon Bank, X.X. Xxxxxx Bank, N.A.
Three Mellon Bank Center
Room 2304 $19,000,000
Xxxxxxxxxx, XX 00000
Attn: Xxxxxx Xxxxxxx
The Industrial Bank The Industrial Bank of Japan,
of Japan, Ltd., Ltd., New York Branch
New York Branch 0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000-0000
Attn: Xx. Xxxxxxx Xxxxx
Credit Administration
$19,000,000
Xxxxx Fargo Bank Xxxxx Fargo Bank (Texas),
(Texas), N.A. N.A.
0000 Xxxx Xxxxxx
Xxxxx 000 $19,000,000
Xxxxxx, XX 00000-0000
Attn: Xxxx Xxxxxxx
Banque Nationale de Banque Nationale de Paris,
Paris, Houston Agency Houston Agency
000 Xxxx, Xxxxx 0000
Xxxxxxx, XX 00000 $19,000,000
Attn: Xxxxx Xxxx
The Bank of New York The Bank of New York
Xxx Xxxx Xxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000 $19,000,000
Attn: Xxxxxxx X. Xxxxxx,
Vice President
The Northern Trust The Northern Trust Company
Company 00 Xxxxx XxXxxxx Xxxxxx
00xx Xxxxx $19,000,000
Xxxxxxx, XX 00000
Attn: Xxxxx Honda
Total: $300,000,000.00
SCHEDULE I
----------
SCHEDULE II
-----------
Principal Subsidiaries
----------------------
1. Union Pacific Resources Company
2. UP Fuels Marketing and Trading, Inc.
3. Rock Springs Royalty Company
4. Bitter Creek Coal Company
SCHEDULE II
-----------
SCHEDULE III
------------
Existing Liens
--------------
None.
SCHEDULE III
------------
EXHIBIT A-1
-----------
Notice of Contract Borrowing
----------------------------
[Date]
------------------------------
Texas Commerce Bank National Association,
as Administrative Agent
Texas Commerce Tower
Energy Department
0000 Xxxx Xxxxxx, 0xx Xxxxx
Xxxxxx, Xxxxx 00000
Attn: Xxx Xxxxxxxxx
Vice President
Gentlemen:
The undersigned, Union Pacific Resources Group Inc., refers to
the $300,000,000 364 Day Competitive Advance/Revolving Credit Agreement, dated
as of November 25, 1997 (the "Credit Agreement", the terms defined therein being
used herein as therein defined), among the undersigned, certain Banks parties
thereto, Texas Commerce Bank National Association, as Administrative Agent for
said Banks, The Chase Manhattan Bank, as Auction Administration Agent, Bank of
America NT&SA, as Documentation Agent, and NationsBank of Texas, as Syndication
Agent, and hereby gives you notice, irrevocably, pursuant to Section 2.02 of the
Credit Agreement that the undersigned hereby requests a Contract Borrowing under
the Credit Agreement, and in that connection sets forth below the information
relating to such Contract Borrowing (the "Proposed Contract Borrowing") as
required by Section 2.02(a) of the Credit Agreement:
(i) The Business Day of the Proposed Contract Borrowing is
_________________________, 19__.
(ii) The Type of Contract Advances comprising the Proposed
Contract Borrowing is [Adjusted CD Rate Advances] [Alternate Base Rate Advances]
[Eurodollar Rate Contract Advances].
(iii) The aggregate amount of the Proposed Contract Borrowing
is $ .
(iv) The Interest Period for each Contract Advance made as
part of the Proposed Contract Borrowing is [ days] [ months[s]].
Very truly yours,
UNION PACIFIC RESOURCES GROUP INC.
By:
------------------------------
Name:
-----------------------------
Title:
----------------------------
EXHIBIT A-1
-----------
EXHIBIT A-2
-----------
Notice of Competitive Borrowing
-------------------------------
[Date]
-----------------------
Texas Commerce Bank National Association, The Chase Manhattan Bank,
as Administrative Agent as Auction Administration Agent
Texas Commerce Tower c/o The Loan and Agency Services Group
Energy Department One Chase Xxxxxxxxx Xxxxx, 0xx Xxxxx
0000 Xxxx Xxxxxx, 0xx Xxxxx Xxxxxx Xxxxxxxxxx
Xxxxxx, Xxxxx 00000 Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxx Xxxxxxxxx Attn: Xxxxxx Xxxxxxx
Vice President Fax: (000) 000-0000
Gentlemen:
The undersigned, Union Pacific Resources Group Inc., refers to
the $300,000,000 364 Day Competitive Advance/Revolving Credit Agreement, dated
as of November 25, 1997 (the "Credit Agreement", the terms defined therein being
used herein as therein defined), among the undersigned, certain Banks parties
thereto, Texas Commerce Bank National Association, as Administrative Agent, The
Chase Manhattan Bank, as Auction Administration Agent, Bank of America NT&SA, as
Documentation Agent, and NationsBank of Texas, N.A., as Syndication Agent, and
hereby gives you notice pursuant to Section 2.03 of the Credit Agreement that
the undersigned hereby requests a Competitive Borrowing under the Credit
Agreement, and in that connection sets forth the terms on which Competitive
Borrowing (the "Proposed Competitive Borrowing") is requested to be made:
1. Date of Competitive Borrowing
(which is a Business Day)
--------------------
2. Type of Competitive Advances
comprising the Proposed
Competitive Borrowing(1)
--------------------
3. Amount of Competitive Borrowing(2)
--------------------
4. Maturity Date(3)
--------------------
5. Other Provisions, if any
--------------------
--------------------
Very truly yours,
UNION PACIFIC RESOURCES GROUP INC.
By:
-------------------------------
Name:
-----------------------------
Title:
----------------------------
--------
(1) Eurodollar Rate Competitive Advance or Fixed Rate
Competitive Advance.
(2) Not less than $10,000,000 or greater than the annual
aggregate Commitment of the Bank and in integral multiples of $1,000,000.
(3) (i)In the case of a Eurodollar Rate Competitive Borrowing,
1, 2, 3, or 6 months and (ii) in the case of a Fixed Rate Competitive Advance of
not less than seven calendar days, and which in either case shall not end later
than the Termination Date.
EXHIBIT A-2
-----------
EXHIBIT A-2
-----------
EXHIBIT A-3
-----------
FORM OF NOTICE TO BANKS OF COMPETITIVE BID REQUEST
[Name of Bank]
[Address of Bank]
[Date]
Attention:
Dear Sirs:
Reference is made to the 364 Day Competitive Advance/Revolving
Credit Agreement (the "Credit Agreement") dated as of November 25, 1997, among
Union Pacific Resources Group Inc. ("Borrower"), the Banks named therein, Texas
Commerce Bank National Association, as Administrative Agent, NationsBank of
Texas, N.A., as Syndication Agent, and Bank of America NT&SA, as Documentation
Agent, and The Chase Manhattan Bank, as Auction Administration Agent.
Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Credit Agreement. The Borrower delivered
a Notice of Competitive Borrowing requesting a Competitive Bid on _____________,
19__ pursuant to Section 2.03(a) of the Credit Agreement, and in that connection
you are invited to submit a Competitive Bid by [Date] / [Time] .(1) Your
Competitive Bid must comply with Section 2.03(b) of the Credit Agreement and the
terms set forth below on which the Notice of Competitive Borrowing was made:
(A) Date of Competitive Borrowing
----------------------------------------
(B) Aggregate Principal Amount of
Competitive Borrowing
----------------------------------------
(C) Interest Rate Basis
----------------------------------------
(D) Interest Period and the Last Day
Thereof
----------------------------------------
Very truly yours,
THE CHASE MANHATTAN BANK, as Auction
Administration Agent
By:
-------------------------------------
Name:
--------------------------------
Title:
-------------------------------
--------
(1) The Competitive Bid must be received by the Auction
Administration Agent (i) in the case of Eurodollar Rate Competitive Advances,
not later than 10:00 a.m., New York City time, three Business Days before a
proposed Competitive Borrowing, and (ii) in the case of Fixed Rate Competitive
Advances, not later than 10:00 a.m., New York City time, on the date of a
proposed Competitive Borrowing.
EXHIBIT A-3
-----------
EXHIBIT A-4
-----------
FORM OF COMPETITIVE BID
The Chase Manhattan Bank, as Auction Administration
Agent for the Banks referred to below
c/o The Loan and Agency Services Group
One Chase Xxxxxxxxx Xxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
[Date]
Attention: Xxxxxx Xxxxxxx
Fax (000) 000-0000
Dear Sirs:
The undersigned, [Name of Bank], refers to the 364 Day
Competitive Advance/Revolving Credit Agreement dated as of November 25, 1997
(the "Credit Agreement"), among Union Pacific Resources Group Inc. (the
"Borrower"), the Banks named therein, Texas Commerce Bank National Association,
as Administrative Agent, NationsBank of Texas, N.A., as Syndication Agent, and
Bank of America NT&SA, as Documentation Agent, and The Chase Manhattan Bank, as
Auction Administration Agent. Capitalized terms used herein and not otherwise
defined herein shall have the meanings assigned to such terms in the Credit
Agreement. The undersigned hereby makes a Competitive Bid pursuant to Section
2.03(a)(ii) of the Credit Agreement, in response to the Notice of Competitive
Borrowing made by the Borrower on ________, 19 _______, and in that connection
sets forth below the terms on which such Competitive Bid is made:
(A) Principal Amount(1)
------------------------------------------
(B) Competitive Bid Rate(2)
------------------------------------------
(C) Interest Period and the Last
Day Thereof(3)
------------------------------------------
The undersigned hereby confirms that it is prepared to extend
credit to the Company upon acceptance by the Company of this bid in accordance
with Section 2.03(a)(v) of the Credit Agreement.
Very truly yours,
[NAME OF BANK]
By:
----------------------------------------
Name:
-----------------------------------
Title:
----------------------------------
--------
(1) Not less than $10,000,000 or greater than the available
Total Commitment and in integral multiples of $1,000,000. Multiple bids will be
accepted by the Auction Administration Agent.
(2) i.e., Eurodollar Rate + or - ____%, in the case of
Eurodollar Rate Advances, or ____%, in the case of Fixed Rate Competitive
Advances (in each case, expressed in the form of a decimal to no more than four
decimal places).
(3) The Interest Period must be the Interest Period specified
in the Notice of Competitive Borrowing.
EXHIBIT A-4
-----------
EXHIBIT A-5
-----------
FORM OF COMPETITIVE BID ACCEPT/REJECT LETTER
[Date]
The Chase Manhattan Bank, as Auction Administration
Agent under the Credit Agreement referred to below
The Loan and Agency Services Group
One Chase Xxxxxxxxx Xxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxx Xxxxxxx
Fax: (000) 000-0000
Dear Sirs:
Reference is made to the 364 Day Competitive Bid/Revolving
Credit Agreement dated as of November 25, 1997 (the "Credit Agreement"), among
the Union Pacific Resources Group Inc. (the "Borrower"), the Banks named
therein, Texas Commerce Bank National Association, as Administrative Agent,
NationsBank of Texas, N.A., as Syndication Agent, and Bank of America NT&SA, as
Documentation Agent, and The Chase Manhattan Bank, as Auction Administration
Agent. Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Credit Agreement.
In accordance with Section 2.03(a)(ii), the Borrower has
received a notice of bids in connection with its Competitive Bid Request dated
[insert date] and in accordance with Section 2.03(a)(iii) of the Credit
Agreement, the undersigned hereby accepts the following bids for maturity on
[insert date]:
Principal Amount Fixed Rate/Margin Bank
---------------- ----------------- ----
$ [%] / [+/-, . %]
-------------------- -----
$ [%] / [+/-, . %]
-------------------- -----
The undersigned hereby rejects the following bids:
Principal Amount Fixed Rate/Margin Bank
---------------- ----------------- ----
$ [%] / [+/-, . %]
-------------------- -----
$ [%] / [+/-, . %]
-------------------- -----
The $_____________________ should be deposited in Texas
Commerce Bank National Association account number [insert number] on [insert
date] [or] [wire transferred to [Name of Bank] account number [insert number]
[other wire instructions] on [date]].
Very truly yours,
UNION PACIFIC RESOURCES GROUP INC.
By:
----------------------------------
Name:
-----------------------------
Title:
----------------------------
EXHIBIT A-5
-----------
EXHIBIT B
---------
Assignment and Acceptance Agreement
-----------------------------------
Dated __________, 19____
Reference is made to the $300,000,000 364 Day Competitive
Advance/Revolving Credit Agreement, dated as of November 25, 1997 (the "Credit
Agreement") among Union Pacific Resources Group Inc., a Utah corporation (the
"Borrower"), the Banks (as defined in the Credit Agreement), and Texas Commerce
Bank National Association, as Administrative Agent for the Banks (the
"Administrative Agent"), The Chase Manhattan Bank, as Auction Administration
Agent, Bank of America NT&SA, as Documentation Agent, and NationsBank of Texas,
as Syndication Agent. Terms defined in the Credit Agreement are used herein with
the same meaning.
_________________________ (the "Assignor") and
________________________________ (the "Assignee") agree as follows:
1. The Assignor hereby sells and assigns to the Assignee,
without recourse and without any representations and warranties of the Assignor
except as specifically set forth below, and the Assignee hereby purchases and
assumes from the Assignor, a portion of the Assignor's rights and obligations
under the Credit Agreement as of the Assignment Date (as defined below) equal to
a ________________________%(1) interest in and to all of the rights and
obligations of the Banks under the Credit Agreement (including, without
limitation, such percentage interest in the Commitments as in effect on the
Assignment Date and the Advances, if any, outstanding on the Assignment Date).
2. The Assignor (i) represents and warrants that as of the
date hereof its Commitment (without giving effect to assignments thereof which
have not yet become effective) is $_________________ and the aggregate
outstanding principal amount of Advances owing to it (without giving effect to
assignments thereof which have not yet become effective) is $_______________ ;
(ii) 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
of any adverse claim; (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.
3. 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(e) 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) agrees that it will, independently and
without reliance upon the Administrative Agent, the Assignor or any other Bank
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 an Eligible Assignee; (iv)
appoints and authorizes the Administrative Agent to take such action as
administrative agent on its behalf and to exercise 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 Bank; and (vi) specifies as its CD Lending
Office, Domestic Lending Office (and address for notices), and Eurodollar
Lending Office the offices set forth beneath its name on the signature pages
hereof.
--------
(1) Specify percentage to no more than four decimal points.
EXHIBIT B
---------
4. The effective date for this Agreement and Acceptance shall
be ______________ (the "Assignment Date"). Following the execution of this
Agreement and Acceptance, it will be delivered to the Administrative Agent for
acceptance and recording by the Administrative Agent.
5. Upon such acceptance and recording, as of the Assignment
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 Bank thereunder, and (ii) the Assignor shall, to the extent
provided in this Agreement and Acceptance, relinquish its rights and be released
from its obligations under the Credit Agreement.
6. Upon such acceptance and recording, from and after the
Assignment Date, the Administrative Agent shall make all payments under the
Credit Agreement in respect of the interest assigned hereby (including, without
limitation, all payments of principal, interest and fees with respect thereto)
to the Assignee. The Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Agreement for periods prior to the
Assignment Date directly between themselves.
7. This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of New York.
[NAME OF ASSIGNOR]
By:
---------------------------------
Name:
-------------------------------
Title:
------------------------------
[NAME OF ASSIGNEE]
By:
---------------------------------
Name:
-------------------------------
Title:
------------------------------
Domestic Lending Office (and address for
notices):
[Address]
CD Lending Office:
[Address]
Eurodollar Lending Office:
[Address]
Accepted this _____ day
of _______________, 19__
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION, as Administrative Agent
By:
---------------------------------
Name:
-------------------------------
Title:
------------------------------
--------
(2) See Section 8.07(a) of the Credit Agreement; such date
shall be at least three Business Days after the execution of this Assignment and
Acceptance.
EXHIBIT B
---------
EXHIBIT C-1
-----------
Opinion of Borrower's Counsel
-----------------------------
_______________, 1997
To each of the Banks party to the
$300,000,000 364 Day Competitive Advance/
Revolving Credit Agreement, dated as of
November 25, 1997 among Union Pacific
Resources Group Inc., the Banks party
thereto, and Texas Commerce Bank National
Association, as Administrative Agent for
said Banks
Union Pacific Resources Group Inc.
----------------------------------
Ladies and Gentlemen:
I am the General Attorney of Union Pacific Resources Group
Inc., a Utah corporation (the "Borrower"), and have acted in such capacity in
connection with the execution and delivery of the $300,000,000 364 Day
Competitive Advance/Revolving Credit Agreement, dated as of November 25, 1997
(the "Agreement"), among the Borrower, the several banks party thereto, Texas
Commerce Bank National Association, as Administrative Agent, The Chase Manhattan
Bank, as Auction Administration Agent, Bank of America NT&SA, as Documentation
Agent, and NationsBank of Texas, as Syndication Agent. This opinion is delivered
to you pursuant to Subsection 3.01(e) of the Agreement. Terms used herein which
are defined in the Agreement shall have the respective meanings set forth in the
Agreement, unless otherwise defined herein.
In connection with this opinion, I have examined executed
copies of the Agreement and such corporate documents and records of the Borrower
and its Subsidiaries, certificates of public officials and officers of the
Borrower and its Subsidiaries, and such other documents, as I have deemed
necessary or appropriate for the purposes of this opinion. In stating my
opinion, I have assumed the genuineness of all signatures of, and the authority
of, persons signing this Agreement on behalf of parties thereto other than the
Borrower, the authenticity of all documents submitted to me as originals and the
conformity to authentic original documents of all documents submitted to me as
certified, conformed or photostatic copies.
Based upon the foregoing, I am of the opinion that:
1. The Borrower is a corporation duly incorporated, validly
existing, and in good standing under the laws of the State of Utah.
2. The execution, delivery, and performance by the Borrower of
the Agreement are within the Borrower's corporate powers, have been duly
authorized by all necessary corporate action, and do not contravene (i) the
Borrower's charter or by-laws or (ii) any law, statute, regulation, or order of
any governmental agency, or (iii) to the best of my knowledge, any contractual
restriction binding on or affecting the Borrower. The Agreement has been duly
executed and delivered by the Borrower.
3. 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 the
Agreement.
EXHIBIT C-1
-----------
4. The Agreement is a legal, valid, and binding obligation of
the Borrower enforceable against the Borrower in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles, and except that
no opinion is expressed as to the availability of the remedy of specific
performance.
5. There is no pending or threatened action or proceeding
affecting the Borrower or any of its consolidated Subsidiaries before any court,
governmental agency or arbitrator, (i) which purports to affect the legality,
validity, or enforceability of the Agreement, or (ii) except as set forth in
public documents filed with the Securities and Exchange Commission prior to the
date of this opinion, which may materially adversely affect the financial
condition or operations of the Borrower or any of its Subsidiaries, taken as a
whole.
This opinion is limited to the laws of the State of New York,
the corporate laws of the State of Utah, and applicable federal laws of the
United States, provided that, as to matters of New York law, we have relied
exclusively upon the opinion of _______________________, special New York
counsel, a copy of which is attached hereto.
This opinion is solely for the benefit of the addressees
hereof, any permitted assigns or participants of such addressees, and the law
firm of Xxxxxx and Xxxxx, L.L.P. for use in connection with the transactions in
connection with the Loan Papers and may not be relied upon by any other person
or entity or for any other purpose without my express written consent.
Very truly yours,
Xxxx Xxxxx
General Attorney for
Union Pacific Resources Group Inc.
EXHIBIT C-1
-----------
EXHIBIT C-2
-----------
Opinion of Borrower's New York Counsel
--------------------------------------
________________, 1997
Union Pacific Resources Group Inc.
000 Xxxxxx Xxxxxx
Xxxx Xxxxx, XX 00000
To each of the Banks party to the
$300,000,000 364 Day Competitive Advance/
Revolving Credit Agreement, dated as of
November 25, 1997 among Union Pacific
Resources Group Inc., the Banks party
thereto, and Texas Commerce Bank National
Association, as Administrative Agent for
said Banks
Union Pacific Resources Group Inc.
----------------------------------
Ladies and Gentlemen:
We have acted as special counsel to Union Pacific Resources
Group Inc., a Utah corporation (the "Borrower"), in connection with the
execution and delivery of the $300,000,000 364 Day Competitive Advance/Revolving
Credit Agreement, dated as of November 25, 1997 (the "Agreement"), among the
Borrower, the several banks party thereto, Texas Commerce Bank National
Association, as Administrative Agent, The Chase Manhattan Bank, as Auction
Administration Agent, Bank of America NT&SA, as Documentation Agent, and
NationsBank of Texas, as Syndication Agent. This opinion is delivered to you
pursuant to Subsection 3.01(e) of the Agreement. Terms used herein which are
defined in the Agreement shall have the respective meanings set forth in the
Agreement, unless otherwise defined herein.
In connection with this opinion, we have examined executed
copies of the Agreement and such corporate documents and records of the Borrower
and its Subsidiaries, certificates of public officials and officers of the
Borrower and its Subsidiaries, and such other documents, as we have deemed
necessary or appropriate for the purposes of this opinion. In stating our
opinion, we have assumed the genuineness of all signatures of, and the authority
of, persons signing this Agreement on behalf of parties thereto other than the
Borrower, the authenticity of all documents submitted to us as originals, and
the conformity to authentic original documents of all documents submitted to us
as certified, conformed, or photostatic copies.
Based upon and subject to the foregoing, and upon such
investigation as we have deemed necessary, we are of the opinion that:
1. The execution, delivery, and performance by the Borrower of
the Agreement does not contravene any law, statute, regulation, or order of any
governmental agency.
2. 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 the
Agreement.
EXHIBIT C-2
-----------
3. The Agreement is a legal, valid, and binding obligation of
the Borrower enforceable against the Borrower in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles, and except that
no opinion is expressed as to the availability of the remedy of specific
performance.
This opinion is limited to the laws of the State of New York
and applicable federal laws of the United States.
This opinion is solely for the benefit of the addressees
hereof, any permitted assigns or participants of such addressees, and the law
firm of Xxxxxx and Xxxxx, L.L.P. for use in connection with the transactions in
connection with the Loan Papers and may not be relied upon by any other person
or entity or for any other purpose without my express written consent.
Very truly yours,
EXHIBIT C-2
-----------
EXHIBIT D
---------
Opinion of Counsel to Administrative Agent
------------------------------------------
__________________, 1997
To each of the Banks party to the
$300,000,000 364 Day Competitive Advance/
Revolving Credit Agreement, dated
as of November 25, 1997 among
Union Pacific Resources Group Inc.,
said Banks, and Texas Commerce
Bank National Association, as
Administrative Agent for said Banks
Union Pacific Resources Group Inc.
----------------------------------
Ladies and Gentlemen:
We have acted as counsel to Texas Commerce Bank National
Association, individually and as Administrative Agent (as hereinafter defined),
in connection with the execution and delivery of the $300,000,000 364 Day
Competitive Advance/Revolving Credit Agreement, dated as of November 25, 1997
(the "Credit Agreement"), among Union Pacific Resources Group Inc., the banks
party thereto (the "Banks"), Texas Commerce Bank National Association, as
Administrative Agent for the Banks (the "Administrative Agent"), The Chase
Manhattan Bank, as Auction Administration Agent, Bank of America NT&SA, as
Documentation Agent, and NationsBank of Texas, as Syndication Agent. Terms
defined in the Credit Agreement are, unless otherwise defined herein, used
herein as therein defined.
In this connection with this opinion, we have examined the
following documents, each of which, unless otherwise indicated, is dated the
date hereof:
1. A counterpart of the Credit Agreement executed by the
Borrower and the Administrative Agent (we have been informed by the
Administrative Agent that each Bank has executed at least one counterpart of the
Credit Agreement).
2. A certificate of the Secretary of the Borrower with respect
to (i) certain resolutions adopted by the Board of Directors of the Borrower,
(ii) the Revised Articles of Incorporation and the By-laws of the Borrower and
(iii) the incumbency and signatures of certain officers of the Borrower,
delivered pursuant to Sections 3.01(a) and 3.01(b) of the Credit Agreement.
3. An opinion of Xxxx Xxxxx, General Attorney of the Borrower,
delivered pursuant to Section 3.01(e) of the Credit Agreement.
4. An opinion of [Xxxxxx, Xxxxx & Bockius, L.L.P.], special
New York counsel to Borrower delivered pursuant to Section 3.01(e).
In our examination of the documents referred to above, we have
assumed (a) the authenticity of all such documents submitted to us as originals,
the genuineness of all signatures, the due authority of the parties executing
such documents and the conformity to the originals of all such documents
submitted to us as copies and (b) that no action, consent or approval of,
registration or filing with, or any other action by an governmental authority is
or will be required in connection with the transactions contemplated by the
Credit Agreement, except such as have been made
EXHIBIT D
---------
or obtained and are in full force and effect. We have relied, as to factual
matters, on the documents we have examined.
Our opinions expressed below are limited to the law of the
State of New York and the federal laws of the United States, and we do not
express any opinions concerning any other law.
Based upon and subject to the foregoing and upon such
investigation as we have deemed necessary, and in reliance upon the opinion
described in Items 4 and 5 preceding, we are of the opinion that:
(i) while we have not independently considered the matters
covered by the opinion listed in Item 3, above, the certificates and opinion
referred to in Items 2 and 3 above, respectively, appear to be substantially
responsive to the requirements of Section 3.01 of the Credit Agreement; and
(ii) assuming that the Credit Agreement has been duly
authorized, executed, and delivered by the Borrower, the Credit Agreement
constitutes a legal, valid, and binding obligation of the Borrower enforceable
in accordance with its terms, subject to (i) laws relating to bankruptcy,
insolvency, fraudulent conveyance, fraudulent transfer, reorganization,
rearrangement, liquidation, conservatorship, moratorium, and other laws
affecting the enforcement of creditors' rights or the collection of debtors'
obligations generally; (ii) general principles of equity (regardless of whether
enforceability is considered in a proceeding in equity or at law); (iii)
standards of commercial reasonableness and good faith; and (iv) other applicable
laws, rules, regulations, court decisions and constitutional requirements in and
of the States of New York and Utah, or the United States of America limiting or
affecting the Loan Papers; provided that any limitations imposed by such other
applicable laws, rules, regulations, court decisions, and constitutional
requirements will not in our opinion, materially interfere with the Banks
realizing the practical benefits intended to be conferred by the Loan Papers,
though they may result in a delay thereof (and we express no opinion with
respect to the economic consequences of any such delay); and (A) we express no
opinion as to the validity or enforceability of any provision contained in any
Loan Paper that relates to the subject matter jurisdiction of the federal courts
located in the State of New York to adjudicate any controversy relating to any
of the Loan Papers, (B) we express no opinion as to the last sentence of Section
2.16 of the Credit Agreement, (C) we express no opinion as to the effect of the
law of any jurisdiction (other than the State of New York) wherein the Borrower
or any Bank, including any lending office thereof, may be located which limits
rates of interest which may be charged or collected by such Bank; and (D) we
express no opinion as to the validity or enforceability of any provision
contained in the Credit Agreement that purports to preclude the amendment,
waiver, release, or discharge of obligations except by an instrument in writing,
to the extent that such provision purports to exclude executory oral agreements.
Very truly yours,
EXHIBIT D
---------
TABLE OF CONTENTS
Page
ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS.............................1
SECTION 1.01 Certain Defined Terms..................................1
SECTION 1.02 Computation of Time Periods............................9
SECTION 1.03 Accounting Terms.......................................9
SECTION 1.04 Number and Gender of Words.............................9
ARTICLE II. AMOUNTS AND TERMS OF THE ADVANCES...........................10
SECTION 2.01 The Contract Advances.................................10
SECTION 2.02 Making the Contract Advances..........................10
SECTION 2.03 The Competitive Advances..............................11
SECTION 2.04 Conversion and Continuation of Contract Borrowings....13
SECTION 2.05 Fees..................................................14
SECTION 2.06 Optional Reduction of the Commitments.................14
SECTION 2.07 Repayment of Advances; Prepayment.....................15
SECTION 2.08 Interest..............................................15
SECTION 2.09 Alternate Rate of Interest............................16
SECTION 2.10 Optional Renewal of Commitments.......................16
SECTION 2.11 Increased Costs; Increased Capital....................17
SECTION 2.12 Additional Interest on Eurodollar Rate Advances.......18
SECTION 2.13 Change in Legality....................................19
SECTION 2.14 Payments and Computations.............................19
SECTION 2.15 Taxes on Payments.....................................20
SECTION 2.16 Sharing of Payments, Etc..............................21
SECTION 2.17 Removal of a Bank.....................................22
ARTICLE III. CONDITIONS OF LENDING.......................................22
SECTION 3.01 Conditions Precedent to Closing. ....................22
SECTION 3.02 Conditions Precedent to Each Borrowing................23
ARTICLE IV. REPRESENTATIONS AND WARRANTIES..............................23
SECTION 4.01 Representations and Warranties of the Borrower........23
ARTICLE V. COVENANTS OF THE BORROWER...................................25
SECTION 5.01 Affirmative Covenants.................................25
SECTION 5.02 Negative Covenants....................................27
ARTICLE VI. EVENTS OF DEFAULT...........................................30
SECTION 6.01 Events of Default.....................................30
ARTICLE VII. THE ADMINISTRATIVE AGENT....................................32
SECTION 7.01 Authorization and Action..............................32
SECTION 7.02 Administrative Agent's Reliance, Etc..................32
SECTION 7.03 Administrative Agent and Affiliates...................33
SECTION 7.04 Bank Credit Decision..................................33
SECTION 7.05 Indemnification.......................................33
SECTION 7.06 Successor Administrative Agent........................33
(i)
ARTICLE VIII. MISCELLANEOUS...............................................34
SECTION 8.01 Amendments, Etc.......................................34
SECTION 8.02 Notices, Etc..........................................34
SECTION 8.03 No Waiver; Remedies...................................34
SECTION 8.04 Costs, Expenses and Taxes.............................34
SECTION 8.05 Right of Set-off......................................35
SECTION 8.06. Binding Effect........................................35
SECTION 8.07 Assignments and Participations........................35
SECTION 8.08 Governing Law.........................................37
SECTION 8.09 Exceptions to Covenants...............................37
SECTION 8.10 Survival..............................................38
SECTION 8.11 Invalid Provisions....................................38
SECTION 8.12 Maximum Rate..........................................38
SECTION 8.13 Execution in Counterparts.............................38
SECTION 8.14 Not in Control........................................38
SECTION 8.15 INDEMNIFICATION.......................................38
SECTION 8.16 Certain Agents........................................39
SECTION 8.17 Entirety..............................................39
SCHEDULES AND EXHIBITS
Schedule I - Banks, Lending Offices and Commitments
Schedule II - Principal Subsidiaries
Schedule III - Existing Liens
Exhibit A-1 - Notice of Contract Borrowing
Exhibit A-2 - Notice of Competitive Borrowing
Exhibit A-3 - Form of Notice to Banks of Competitive Bid Request
Exhibit A-4 - Form of Competitive Bid
Exhibit A-5 - Form of Competitive Bid Accept/Reject Letter
Exhibit B - Assignment and Acceptance Agreement
Exhibit C-1 - Opinion of Borrower's Counsel
Exhibit C-2 - Opinion of Borrower's New York Counsel
Exhibit D - Opinion of Counsel to Administrative Agent
(ii)