Execution Copy Exhibit 10.5
SECOND AMENDMENT TO 3-YEAR CREDIT AGREEMENT
This SECOND AMENDMENT TO 3-YEAR CREDIT AGREEMENT (this "Amendment") is
dated as of August 27, 2002, and is entered into by and among Black Hills
Corporation, a South Dakota corporation (the "Borrower"), ABN AMRO Bank N.V. in
its capacity as administrative agent for the Banks party to the Credit Agreement
described below (in such capacity, the "Administrative Agent"), and the
financial institutions party hereto.
WHEREAS, the Administrative Agent, the Banks and the Borrower have
entered into that certain 3-Year Credit Agreement (as the same has been amended
(including via that certain First Amendment to 3-Year and 364-Day Revolving
Credit Agreements dated as of June 13, 2002), extended, modified or restated,
the "Credit Agreement") dated as of August 28, 2001 among the Borrower, the
financial institutions from time to time party thereto (each a "Bank," and
collectively the "Banks"), U.S. Bank, National Association and The Bank of Nova
Scotia, in their capacity as documentation agents for the Banks thereunder (in
such capacity, "Documentation Agents"), Union Bank of California, N.A. and Bank
of Montreal, in their capacity as syndication agents for the Banks thereunder
(in such capacity, "Syndication Agents") and ABN AMRO Bank N.V. in its capacity
as Administrative Agent for the Banks thereunder; and
WHEREAS, the Borrower has requested that the Credit Agreement be
amended as set forth herein and the Banks are, subject to the terms hereof,
willing to so amend the Credit Agreement.
NOW THEREFORE, in consideration of the mutual conditions and agreements
set forth in the Credit Agreement and this Amendment, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:
1. Definitions. Capitalized terms used in this Amendment, unless otherwise
defined herein, shall have the meaning ascribed to such terms in the Credit
Agreement.
2. Amendments. Subject to the conditions set forth below, the Credit
Agreement is amended as follows:
(a) Section 1.1 of the Credit Agreement is hereby amended by amending
and restating the following definitions in their entirety as follows:
"L/C Commitment" means an amount equal to $100,000,000.
1
"Level V Status" means neither Level I Status, Level II Status,
Level III Status, nor Level IV Status exists, but Borrower's S&P
Rating is BBB- or higher and its ▇▇▇▇▇'▇ Rating is Baa3 or higher.
"364 Day Credit Agreement" means that certain Amended and
Restated 364 Day Credit Agreement dated as of August 27, 2002 among
Borrower, ABN AMRO Bank, N.V., in its capacity as administrative agent
for the Banks thereunder, U.S. Bank, National Association and The Bank
of Nova Scotia, in their capacity as documentation agents for the
Banks thereunder, Union Bank of California, N.A. and Bank of Montreal,
in their capacity as syndication agents for the Banks thereunder and
the various financial institutions from time to time party thereto as
Banks
(b) Section 1.1 of the Credit Agreement is hereby amended by (i)
deleting the definitions of "ABN AMRO Credit Agreement", "Interest Coverage
Ratio", "Consolidating Interest Expense", "US Bank Credit Agreements", and
"▇▇▇▇▇ Fargo Credit Agreements" appearing therein, (ii) deleting the
parenthetical "(once obtained)" in each place such parenthetical appears in
the definitions of "Level I Status", "Level II Status", "Level II Status",
"Level IV Status", "Level V Status", and "Level VI Status", (iii) changing
the words "Consolidating Interest Expense" too "Consolidated Interest
Expenses" in the definition of "Consolidated EBITDA", (iv) changing the
words "Black Hills Energy Ventures, Inc." to "Black Hills Energy, Inc." in
the definition of "Material Subsidiaries" and (v) inserting the following
definitions in proper alphabetical order:
"Consolidated Fixed Charges" means, for any period and without
duplication the sum of (i) the aggregate amount of Consolidated
Interest Expense with respect to Recourse Indebtedness paid or
scheduled to be paid for such period, and (ii) the aggregate amount of
all mandatory scheduled payments (whether designated as payments or
prepayments) and scheduled sinking fund payments with respect to
principal of any Recourse Indebtedness of the Borrower or its
Subsidiaries (including payments in the nature of principal under
Capital Leases).
"Consolidated Interest Expense" means, with reference to any
period of the Borrower and its Subsidiaries, the sum of (i) all
interest charges (including capitalized interest, imputed interest
charges with respect to Capitalized Lease Obligations and all
amortization of debt discount and expense and other deferred financing
charges) of the Borrower and its Subsidiaries on a consolidated basis
for such period determined in accordance with GAAP, other than
interest charges relating to Non-Recourse Indebtedness, (ii) all
commitment or other fees payable in respect of the issuance of standby
letters of credit or other credit facilities for the account of the
Borrower or its Subsidiaries, and (iii) net costs/expenses incurred by
the Borrower and its Subsidiaries under Derivative Arrangements.
2
"Fixed Charge Coverage Ratio" means, for any period of four
consecutive quarters of the Borrower ending with the most recently
completed such fiscal quarter, the ratio of (A) Adjusted Consolidated
EBITDA to (B) Consolidated Fixed Charges for such period.
"Liquid Assets" means, as the date of any calculation thereof,
the sum of (i) the amount of unrestricted cash which the Borrower then
has available, plus (ii) the aggregate amount of then available
(meaning the Borrower is entitled to borrow such amounts pursuant to
the applicable documentation) unused capacity under the Borrower's
senior unsecured credit facilities (including this Agreement and the
364-Day Credit Agreement).
(c) Section 2.2(a) of the Credit Agreement is hereby amended by adding
the following sentence to the end of such subsection:
No Issuing Agent shall have an obligation pursuant to the Credit
Documents to issue any Letter of Credit if, after giving effect to the
issuance of such Letter of Credit, the aggregate face amount of
Letters of Credit issued by such Issuing Agent then outstanding would
exceed $50,000,000.
(d) Section 2.12(b) of the Credit Agreement is hereby amended by
changing the amount "$200,000,000" appearing in such subsection to
"$300,000,000".
(e) Section 5.4 of the Credit Agreement is hereby amended by (i)
changing the date "December 31, 2000" in both places it appears in each
Section to "December 31, 2001", and (ii) changing the date "June 30, 2001"
to "June 30, 2002".
(f) Sections 7.15(c) and 7.15(d) of the Credit Agreement are hereby
amended be inserting the following text at the beginning of such
subsections:
so long as the Borrower would be in compliance with Section
7.17 hereof (calculated as of the date of, and after giving
affect to, such incurrence),
(g) Section 7.16 of the Credit Agreement is hereby amended in its
entirety to be and to read as follows:
Section 7.16 Consolidated Net Worth. Borrower will at the end
of each fiscal quarter maintain Consolidated Net Worth in an
amount of not less than the sum of (i) $425,000,000 plus (ii)
fifty percent (50%) of the aggregate Consolidated Net Income,
if positive, for the period beginning April 1, 2002 and ending
on the last day of such fiscal quarter.
(h) Section 7.18 of the Credit Agreement is hereby amended in its
entirety to be and to read as follows:
3
Section 7.18 Fixed Charge Coverage Ratio. Borrower will
maintain a Fixed Charge Coverage Ratio of not less than
1.50:1.00, as determined at the end of each fiscal quarter.
(i) Section 7.25 of the Credit Agreement is hereby amended in its
entirety to be and to read as follows:
Section 7.25 Ratings. Borrower will at all times this
Agreement is in effect maintain a S&P Rating and a ▇▇▇▇▇'▇
Rating (or if one or both of such ratings are unavailable,
rating(s) from such other recognized national rating agency or
agencies as may be acceptable to the Administrative Agent and
the Required Banks).
(j) A new Section 7.26 of the Credit Agreement is hereby added in
proper numerical order to be and to read as follows:
Section 7.26 Liquidity Covenant. Borrower will, as of the last
day of each fiscal quarter commencing with the fiscal quarter
ending December 31, 2002, maintain Liquid Assets of at least
$30,000,000.
(k) Schedule 1 to the Credit Agreement is hereby deleted in its
entirety and a new Schedule 1 in the form of Schedule 1 (3-Year Credit
Agreement) attached to this Amendment is hereby substituted therefor.
(l) Schedule 1 to Exhibit B of the Credit Agreement is hereby deleted
in its entirety and Schedule 1 to this Amendment is hereby substituted
therefor.
(m) Schedules 5.2, 5.5, 5.11, 7.9, 7.14, 7.15(a), 7.15(b), and 7.19 of
the Credit Agreement are hereby amended in their entirety to be and to read
the same as the corresponding schedules attached to the 364 Day Credit
Agreement being executed as of the date of this Amendment.
3. Ratification. The Borrower hereby ratifies, acknowledges, affirms and
reconfirms its rights, interests and obligations under each Credit Document and
agrees to perform each of its obligations thereunder as and when required. By
executing this Amendment, the Borrower hereby further ratifies, acknowledges,
affirms and reconfirms that each Credit Document, as amended hereby, constitutes
a legal, valid and binding obligation of the Borrower enforceable against the
Borrower in accordance with its terms, and that each such Credit Document, as
amended hereby, is in full force and effect.
4. Conditions. The effectiveness of this Amendment is subject to the
following conditions precedent:
4
(a) The Borrower shall have executed and delivered this Amendment, and
the Borrower shall have executed and/or delivered such other documents and
instruments as Administrative Agent may require.
(b) The representations and warranties set forth in Section 5 of this
Amendment shall be true and correct.
(c) All proceedings taken in connection with the transactions
contemplated by this Amendment and all documents, instruments and other
legal matters incident thereto shall be reasonably satisfactory to
Administrative Agent and its legal counsel.
5. Representations and Warranties. To induce the Administrative Agent and
the Banks to enter into this Amendment, the Borrower represents and warrants to
the Administrative Agent and the Banks that (i) the execution, delivery and
performance of this Amendment has been duly authorized by all requisite
corporate action on the part of the Borrower and that this Amendment has been
duly executed and delivered by the Borrower and this Amendment and the Credit
Agreement, as amended hereby, constitutes valid and binding obligations of the
Borrower enforceable in accordance with its terms, (ii) no Default or Event of
Default (after giving effect to this Amendment) has occurred and is continuing
under the Credit Agreement or would result from the execution and delivery of
this Amendment, and (iii) each of the representations and warranties set forth
in Section 5 of the Credit Agreement, as amended hereby, is true and correct in
all material respects as of the date hereof, except that if any such
representation or warranty relates solely to an earlier date it need only remain
true as of such date.
6. Severability. Any provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or
invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.
7. References. Any reference to the Credit Agreement contained in any
document, instrument or agreement executed in connection with the Credit
Agreement shall be deemed to be a reference to the Credit Agreement as modified
by this Amendment.
8. Counterparts. This Amendment may be executed in one or more
counterparts, each of which shall constitute an original, but all of which taken
together shall be one and the same instrument. This Amendment may also be
executed by facsimile and each facsimile signature hereto shall be deemed for
all purposes to be an original signatory page.
9. Costs. The Borrower agrees to pay on demand all reasonable costs and
expenses incurred by the Administrative Agent (including fees and expenses of
counsel) incurred in connection with the negotiation and preparation of this
Amendment or the syndication (whether incurred before or after the date hereof)
of the Credit Agreement.
5
10. Governing Law. The validity and interpretation of this Amendment and
the terms and conditions set forth herein, shall be governed by and construed in
accordance with the laws of the State of New York, without giving effect to any
provisions relating to conflict of laws other than section 5-1401 of the New
York General Obligations Laws.
11. Miscellaneous. This Amendment shall be deemed to be a Credit Document.
[- Remainder of Page Left Blank - Signature Pages Follow -]
6
In Witness Whereof, the parties hereto have caused this Agreement to be
duly executed and delivered in New York, New York by their duly authorized
officers as of the day and year first above written.
BLACK HILLS CORPORATION, a
South Dakota corporation
By: _____________________________
Name: _____________________________
Title: _____________________________
7
ABN AMRO BANK N.V., in its individual
capacity as a Bank and as Administrative
Agent
By: _____________________________
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Senior Vice President &
Managing Director
By: _____________________________
Name: _____________________________
Title: _____________________________
▇
▇▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇▇▇, N.A.
By: _____________________________
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇
Title: Vice President
9
U.S. BANK, NATIONAL
ASSOCIATION, in its individual capacity
as a Bank and as Documentation Agent
By: _____________________________
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Title: Senior Lender
10
BANK OF MONTREAL
By: _____________________________
Name: ▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Director
▇▇
▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇▇ ▇▇▇▇▇▇
By: _____________________________
Name: F.C.H. ▇▇▇▇▇
Title: Senior Manager Loan Operations
12
CIBC INC., as a Lender
By: _____________________________
Name: M. ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
Title: Executive Director
CIBC World Markets Corp. As Agent
13
COBANK, ACB
By: _____________________________
Name: ▇▇▇▇▇▇▇▇ ▇▇▇▇
Title: Assistant Vice President
14
▇▇▇▇▇ FARGO BANK, N.A.
By: _____________________________
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
Title: Senior Vice President
15
MIZUHO CORPORATE BANK, LTD.
By: _____________________________
Name: Nobuyasu Fukatsu
Title: Senior Vice President
▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇
▇▇▇▇▇▇▇▇/▇▇▇▇▇▇▇▇
By: _____________________________
Name: ▇▇▇▇ ▇. ▇▇▇▇
Title: Senior Vice President
▇▇
▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇/
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ BRANCH
By: _____________________________
Name: ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
Title: Vice President
By: _____________________________
Name: ▇▇▇▇▇▇ ▇▇▇▇
Title: Vice President
18
▇▇▇▇▇ ▇▇▇ BANK, LOS ANGELES
BRANCH
By: _____________________________
Name: ▇▇▇ ▇▇▇▇
Title: Vice President and General Manager
19
SCHEDULE 1 (3-Year Credit Agreement)
PRICING GRID
------------------ ------------------- ------------ ------------------- ------------------ --------------------
If the Level The Facility Fee The The L/C Fee Rate The Eurodollar The Base Rate
Status Is Rate is: Utilization is: Margin is: Margin is:
Fee Rate
is:
------------------ ------------------- ------------ ------------------- ------------------ --------------------
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level I Status 0.100% 0.100% 0.400% 0.400% 0.000%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level II Status 0.125% 0.125% 0.475% 0.475% 0.000%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level III Status 0.150% 0.150% 0.600% 0.600% 0.000%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level IV Status 0.175% 0.200% 0700% 0.700% 0.000%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level V Status 0.250% 0.250% 0.750% 0.750% 0.000%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level VI Status 0.6725% 0.500% 1.400% 1.400% 0.400%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Each change in a rating shall be effective as of the date it is
announced by the applicable rating agency.
In the event that the ▇▇▇▇▇'▇ Rating and the S&P Rating fall in
consecutive Levels, the rating falling in the lower Level (with Level I being
the highest Level and Level VI being the lowest Level) shall govern for purposes
of determining the applicable pricing pursuant to the above pricing grid. In the
event that the ▇▇▇▇▇'▇ Rating and the S&P Rating fall in non-consecutive Levels,
the Level immediately above the Level in which the lower rating falls (with
Level I being the highest Level and Level VI being the lowest Level) shall
govern for purposes of determining the applicable pricing pursuant to the above
pricing grid.
20
SCHEDULE 1 TO COMPLIANCE CERTIFICATE
Compliance Calculations for Credit Agreement
CALCULATION AS OF ________ __,200_
------------------------------------------------------------------ --------------------- ---------------------------
A. Liens (Sec. 7.9(c), (d), and (g))
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
1. Liens securing taxes or assessments or other _____________________ (Answer should be yes)
government charges or levies equal to or less
than $20,000,000 (Section 7.9(c))
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
2. Liens securing judgments or awards or surety _____________________ (Answer should be yes)
or appeal bonds issued in connection therewith
equal to or less than $20,000,000 (Section
7.9(d))
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
3. Is the aggregate amount of Indebtedness and _____________________ (Answer should be yes)
other obligations consisting of (i) the
deferred purchase price of newly acquired
property or incurred to finance the
acquisition of personal property of Borrower
used in the ordinary course of business of
such Borrower, (ii) Capitalized Lease
Obligations, and (iii) the performance of
tenders, statutory obligations, bids, leases
or other similar obligations (other than for
borrowed money) entered into in the ordinary
course of business or to secure obligations on
performance bonds which is secured by Liens
equal to or less than 5% of Consolidated
Assets as reflected on the most recent balance
sheet delivered by Borrower (Section 7.9(g)).
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
B. Sale and Leasebacks (Section 7.11)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
1. Aggregate obligations under all Sale and $____________________ (Line B1 not to exceed
Leasebacks arrangements (other than synthetic $30,000,000)
lease transactions excluded by Section 7.11)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
C. Sale of Assets (Section 7.12)
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21
------------------------------------------------------------------ --------------------- ---------------------------
1. Net book value of assets (other than $____________________ (Line C1 not to exceed
inventory, reserves and electricity in the 10% of total consolidated
ordinary course of business) sold during this assets)
fiscal year
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
D. Permitted Investments (Section 7.14)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
1. Aggregate amount of Investments in Marketing $____________________
Subsidiaries made after the Effective Date
(Section 7.14(o)(ii))
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
2. Investments consisting of Guaranties of $____________________
Indebtedness of Marketing Subsidiaries
existing on the Effective Date
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
3. Intercompany loans permitted pursuant to $____________________ Line E3
Section 7.15(e)(iii) owing by Marketing
Subsidiaries (Line E3)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
4. Sum of Lines D1, D2 and D3 $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
5. Is Line D4 equal to or less than $10,000,000? _____________________ (Answer should be yes)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
6. Aggregate amount of Investments in Persons $____________________ (Line D6 not to exceed
engaged in the lines of business described in $20,000,000)
clause (xii) of Section 7.8 (Section 7.14(k))
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
E. Permitted Indebtedness (Section 7.15)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
1. Secured Indebtedness except as set forth on $____________________ (Line E1 not to exceed 5%
Schedule 7.15(b): (i) of BHP (ii) evidencing of Consolidated Assets)
the deferred purchase price of newly acquired property or
incurred to finance the acquisition of personal property of
Borrower or a Subsidiary used in the ordinary course of
business of the Borrower of a Subsidiary, (iii) constituting
Capitalized Lease Obligations or with respect to synthetic (or
similar type) lease transactions, or (iv) incurred in
connection with the performance of tenders, statutory
obligations, bids, leases or other similar obligations (other
than for borrowed money) entered into in the ordinary course
of business or to secure obligations on performance bonds
(Section 7.15(c))
------------------------------------------------------------------ --------------------- ---------------------------
22
------------------------------------------------------------------ --------------------- ---------------------------
2. Intercompany loans owing by Borrower (Section $____________________ (Must be subordinated to
7.15(e)(i)(x)) Obligations)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
3. Intercompany Indebtedness owing by Marketing $____________________ (Line E3 not to exceed
Subsidiaries to Subsidiaries (Section the difference between
7.15(e)(iii)) (i) $10,000,000 less (ii)
the sum of Lines E4 and
D1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
4. Indebtedness consisting of Guarantees $____________________ (Line E4 not to exceed
(including Long-Term Guaranties) of Marketing the difference between
Subsidiary Indebtedness (Section 7.15(f)) (i) $10,000,000 less (ii)
the sum of Lines E3 and
D1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
5. Indebtedness of Marketing Subsidiaries under $____________________ (Line E5 not to exceed
Marketing Subsidiary Excluded Credit Marketing Subsidiary
Facilities (Section 7.15(g)) Indebtedness Limit)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
F. Consolidated Net Worth (Section 7.16)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
1. Consolidated Net Worth $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
2. 50% of aggregate Consolidated Net Income, if $____________________
positive, from and including April 1, 2002
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
3. Does Line F1 exceed sum of (i) $425,000,000 _____________________ (Answer should be yes)
plus (ii) line F2
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
G. Recourse Leverage Ratio (Section 7.17)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
1. consolidated Indebtedness $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
2. Non-Recourse Indebtedness $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
3. Recourse Indebtedness (Line G1 minus Line G2) $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
4. Indebtedness of Marketing Subsidiaries under $____________________ (Not to exceed Marketing
Marketing Subsidiary Excluded Credit Subsidiary Indebtedness
Facilities (Line E5) Limit)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
5. Consolidated Net Worth $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
6. Capital (Line G3 minus Line G4 plus Line G5) $____________________
------------------------------------------------------------------ --------------------- ---------------------------
23
------------------------------------------------------------------ --------------------- ---------------------------
7. Recourse Leverage Ratio _________:1.00 (ratio of (A) difference
between (x) Line G3 minus
(y) Line G4 to (B) Line
G6 not to exceed 0.65 to
1.00)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
H. Fixed Charge Coverage Ratio (Section 7.18)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
1. Consolidated Net Income for past four fiscal $____________________
quarters
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
2. Income taxes for past four fiscal quarters (to $____________________
the extent subtracted in calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
3. Consolidated Interest Expense for past four $____________________ Insert amount from Line
fiscal quarters (to the extent subtracted in H18
calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
4. Amortization expense for intangible assets $____________________
for past four fiscal quarters (to the extent
subtracted in calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
5. Depreciation expense for past four fiscal
quarters (to the extent subtracted in
calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
6. Losses on sales of assets (excluding sales in $____________________
the ordinary course of business) and other
extraordinary losses for past four fiscal
quarters (to the extent subtracted in
calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
7. Interest income for past four fiscal $____________________
quarters arising from traditional
investment activities with banks,
investment banks and other financial
institutions or relating to
governmental or other marketable
securities (to the extent added in
calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
8. Gains on sales of assets (excluding sales in $____________________
the ordinary course of business) and other
extraordinary gains for past four fiscal
quarters (to the extent added in calculating
H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
9. Capital Expenditures for past four fiscal $____________________
quarters
------------------------------------------------------------------ --------------------- ---------------------------
24
------------------------------------------------------------------ --------------------- ---------------------------
10. Without duplication, any payments made by a
Consolidated Subsidiary constituting a
repayment of principal Indebtedness (other
than (x) the Obligations and (y) repayments of
principal made with the proceeds of a $____________________
refinancing of such Indebtedness otherwise
permitted pursuant to this Agreement) or with
respect to a reserve, and
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
11. Without duplication, any other mandatory
payment made by a Consolidated Subsidiary in
such period not included as an expense or loss $____________________
in calculating Consolidated Net Income
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
12. Consolidated EBITDA (sum ▇▇ ▇▇▇▇▇ ▇▇, ▇▇, ▇▇, $____________________
H4, H5 and H6 less sum of Lines H7, H8, H9,
H10 and H11)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
13. Restricted Earnings for the past four fiscal $____________________
quarters
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
14. Adjusted Consolidated EBITDA (Line H12 minus $____________________
Line H13)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
15. All interest charges (including capitalized $____________________
interest, imputed interest charges with
respect to Capitalized Lease Obligations and
all amortization of debt discount and expense
and other deferred financing charges) of the
Borrower and its Subsidiaries on a
consolidated basis for such period determined
in accordance with GAAP, other than interest
charges relating to Non-Recourse Indebtedness
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
16. All commitment or other fees payable in $____________________
respect of the issuance of standby letters of
credit or other credit facilities for the
account of the Borrower or its Subsidiaries
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
17. Net costs/expenses incurred by the Borrower $____________________
and its Subsidiaries under Derivative
Arrangements
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
18. Consolidated Interest Expense (Sum of Lines $____________________
H15, H16 and H17)
------------------------------------------------------------------ --------------------- ---------------------------
25
------------------------------------------------------------------ --------------------- ---------------------------
19. The aggregate amount of all mandatory $____________________
scheduled payments (whether designated as
payments or prepayments) and scheduled sinking
fund payments with respect to principal of any
Recourse Indebtedness of the Borrower or its
Subsidiaries (including payments in the nature
of principal under Capital Leases) for the
last 4 quarters
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
20. Consolidated Fixed Charges (Sum of Lines H18 $____________________
and H19)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
21. Fixed Charge Coverage Ratio (ratio of Lines ________:1.00 (ratio must not be less
H14 to (ii) Line H20) than 1.50 to 1.00)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
I. Liquidity Covenant (Section 7.26)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
1. Unrestricted cash at Borrower $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
2. Unused availability of senior unsecured credit $____________________
facilities available to Borrower
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
3. Liquid Assets (Line I1 plus Line I2) $____________________ (amount must exceed
$30,000,000)
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26
