CREDIT AGREEMENT
This CREDIT AGREEMENT is entered into as of March 27, 1996
among Matlack DE, Inc. (the "Company"), Matlack, Inc. ("MI),
Safeway Chemical Transportation, Inc. ("SCI"), Brite Sol
Services, Inc. ("BSS"), (the Company, MI, SCI and BSS Inc. are
individually and collectively referred to as "the Borrower") and
Bank of America Illinois (the "Bank").
WHEREAS, the Bank has agreed to make available to the
Borrower a credit facility upon the terms and conditions set
forth in this Agreement and the Master Credit Agreement;
NOW, THEREFORE, in consideration of the mutual agreements,
provisions and covenants contained herein, the parties agree as
follows:
ARTICLE I
DEFINITIONS
1.01 Certain Defined Terms. Terms not otherwise defined
herein shall have the same meaning as in the master credit
agreement. The following terms have the following meanings:
"Agreement" means this Credit Agreement.
"Applicable Margin" means
(i) with respect to Base Rate Loans, 0%;
(ii) with respect to Offshore Rate Loans and
Letter of Credit Fees, (A) 2% if Level I Status exists,
(B) 1.5% if Level II Status exists, (C) 1.125% if Level
III Status exists, (D) .875% if Level IV Status exists
and (E) .625% if Level V Status exists; and
(iii) with respect to the Non-Use Fee, (A)
.500% if Level I Status exists, (B) .500% if Level II
Status exists, (C) .375% if Level III Status exists,
(D) .250% if Level IV Status exists and (E) .250% if
Level V Status exists.
As of the Effective Date, Level III Status shall exist.
"Attorney Costs" means and includes all fees and
disbursements of any law firm or other external counsel, the
allocated cost of internal legal services and all
disbursements of internal counsel.
"Bank" means Bank of America Illinois. Unless the
context otherwise clearly requires, references to such
institution as a "Bank" shall also include any of such
institution's Affiliates.
"Base Rate" means, for any day, the higher of:
(a) 0.50% per annum above the latest Federal Funds Rate; and
(b) the rate of interest in effect for such day as publicly
announced from time to time by the Bank in Chicago,
Illinois, as its "reference rate." (The "reference rate" is
a rate set by the Bank based upon various factors including
the Bank's costs and desired return, general economic
conditions and other factors, and is used as a reference
point for pricing some loans, which may be priced at, above,
or below such announced rate.) Any change in the reference
rate announced by the Bank shall take effect at the opening
of business on the day specified in the public announcement
of such change.
"Base Rate Loan" means a Loan that bears interest based
on the Base Rate.
"Borrowing" means a borrowing hereunder consisting of
Revolving Loans or Term Loans of the same Type made to the
Borrower on the same day by the Bank under Article II, and,
other than in the case of Base Rate Loans, having the same
Interest Period.
"Borrowing Base" means, as of any date of determination
thereof, an amount equal to the sum of (x) 90% of the net
book value of unencumbered Equipment plus a 75% reserve for
replacement tires plus (y) 85% of all Eligible Accounts
outstanding at such date.
"Borrowing Base Certificate" means a certificate duly
executed by a Responsible Officer of the Borrower,
substantially in the form of Exhibit A.
"Borrowing Date" means any date on which a Loan is
disbursed.
"Business Day" means any day other than a Saturday,
Sunday or other day on which commercial banks in New York
City or Chicago, Illinois are authorized or required by law
to close and, if the applicable Business Day relates to any
Offshore Rate Loan, means such a day on which dealings are
carried on in the applicable offshore dollar interbank
market.
"Capital Adequacy Regulation" means any guideline,
request or directive of any central bank or other
Governmental Authority, or any other law, rule or
regulation, whether or not having the force of law, in each
case, regarding capital adequacy of any bank or of any
corporation controlling a bank.
"Cash Collateralize" means to pledge and deposit with
or deliver to the Bank, as collateral for the L/C
Obligations, cash or deposit account balances pursuant to
documentation in form and substance satisfactory to the
Bank. The Borrower hereby grants the Bank, a security
interest in all such cash and deposit account balances.
Cash collateral shall be maintained in blocked, non-interest
bearing deposit accounts at Bank.
"Closing Date" means the date on which all conditions
precedent set forth in Section 5.01 are satisfied or waived
by the Bank.
"Code" means the Internal Revenue Code of 1986, and
regulations promulgated thereunder.
"Collateral Agent" means Bank of America Illinois in
its capacity as collateral agent under the Master Credit
Agreement.
"Collateral Documents" means, collectively, (i) the
Master Credit Agreement, the Security Agreement, and all
other security agreements, mortgages, deeds of trust, patent
and trademark assignments, lease assignments, guarantees and
other similar agreements between the Borrower or any
Subsidiary or any Guarantor and the Collateral Agent now or
hereafter delivered to the Bank pursuant to or in connection
with the transactions contemplated hereby, and all financing
statements (or comparable documents now or hereafter filed
in accordance with the Uniform Commercial Code or comparable
law) against the Borrower or any Subsidiary or any Guarantor
as debtor in favor of the Bank as secured party, and
(ii) any amendments, supplements, modifications, renewals,
replacements, consolidations, substitutions and extensions
of any of the foregoing.
"Commitment" means, at any time and as the context may
require, either the Revolving Commitment, the L/C Commitment
or the Term Commitment (collectively the aggregate of the
then Revolving Commitment, the L/C Commitment and the then
Term Commitment).
"Compliance Certificate" means a certificate
substantially in the form of Exhibit B.
"Consolidated Net Worth" means, at any time, the total
of shareholders' equity (including capital stock, additional
paid-in capital and retained earnings after deducting
treasury stock) of the Borrower and its consolidated
Subsidiaries prepared in accordance with GAAP.
"Contingent Obligation" means, as to any Person, any
direct or indirect liability of that Person, whether or not
contingent, with or without recourse, (a) with respect to
any Indebtedness, lease, dividend, letter of credit or other
obligation (the "primary obligations") of another Person
(the "primary obligor"), including any obligation of that
Person (i) to purchase, repurchase or otherwise acquire such
primary obligations or any security therefor, (ii) to
advance or provide funds for the payment or discharge of any
such primary obligation, or to maintain working capital or
equity capital of the primary obligor or otherwise to
maintain the net worth or solvency or any balance sheet
item, level of income or financial condition of the primary
obligor, (iii) to purchase property, securities or services
primarily for the purpose of assuring the owner of any such
primary obligation of the ability of the primary obligor to
make payment of such primary obligation, or (iv) otherwise
to assure or hold harmless the holder of any such primary
obligation against loss in respect thereof (each, a
"Guaranty Obligation"); (b) with respect to any Surety
Instrument issued for the account of that Person or as to
which that Person is otherwise liable for reimbursement of
drawings or payments; (c) to purchase any materials,
supplies or other property from, or to obtain the services
of, another Person if the relevant contract or other related
document or obligation requires that payment for such
materials, supplies or other property, or for such services,
shall be made regardless of whether delivery of such
materials, supplies or other property is ever made or
tendered, or such services are ever performed or tendered.
"Contractual Obligation" means, as to any Person, any
provision of any security issued by such Person or of any
agreement, undertaking, contract, indenture, mortgage, deed
of trust or other instrument, document or agreement to which
such Person is a party or by which it or any of its property
is bound.
"Conversion/Continuation Date" means any date on which,
under Section 2.04, the Borrower (a) converts Loans of one
Type to another Type, or (b) continues as Loans of the same
Type, but with a new Interest Period, Loans having Interest
Periods expiring on such date.
"Current Maturities" means Indebtedness due within one
year.
"Default" means any event or circumstance which, with
the giving of notice, the lapse of time, or both, would (if
not cured or otherwise remedied during such time) constitute
an Event of Default.
"Dollars", "dollars" and "$" each mean lawful money of
the United States.
"EBITDA" means with respect to the Company and its
Subsidiaries for any fiscal period, an amount equal to
Consolidated Net Income for such period, plus to the extent
deducted in the calculation of Consolidated Net Income and
without duplication, (a) depreciation and amortization for
such period, (b) other noncash charges for such period, (c)
income tax expense for such period and (d) Consolidated
Total Interest Expense (including, without limitation, fees,
commissions and other charges associated with standby
letters of credit and other financing charges) paid or
accrued during such period.
"Event of Default" means any of the events or
circumstances specified in Section 9.01.
"FDIC" means the Federal Deposit Insurance Corporation,
and any Governmental Authority succeeding to any of its
principal functions.
"Federal Funds Rate" means, for any day, the rate set
forth in the weekly statistical release designated as
H.15(519), or any successor publication, published by the
Federal Reserve Bank of New York (including any such
successor, "H.15(519)") on the preceding Business Day
opposite the caption "Federal Funds (Effective)"; or, if for
any relevant day such rate is not so published on any such
preceding Business Day, the rate for such day will be the
arithmetic mean as determined by the Bank of the rates for
the last transaction in overnight Federal funds arranged
prior to 9:00 a.m. (New York City time) on that day by each
of three leading brokers of Federal funds transactions in
New York City selected by the Bank.
"Fixed Charge Ratio Coverage" means the ratio of EBITDA
plus Rental and Lease Expense to the sum of Interest
Expense, Rental and Lease Expense, Current Maturities and
20% of Obligations (as defined in the Master Credit
Agreement), determined on a rolling four quarter basis.
"FRB" means the Board of Governors of the Federal
Reserve System, and any Governmental Authority succeeding to
any of its principal functions.
"Future Lease Obligations" means the aggregate minimum
payments required under all operating leases.
"GAAP" means generally accepted accounting principles
set forth from time to time in the opinions and
pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of
comparable stature and authority within the U.S. accounting
profession), which are applicable to the circumstances as of
the date of determination.
"Governmental Authority" means any nation or
government, any state or other political subdivision
thereof, any central bank (or similar monetary or regulatory
authority) thereof, any entity exercising executive,
legislative, judicial, regulatory or administrative
functions of or pertaining to government, and any
corporation or other entity owned or controlled, through
stock or capital ownership or otherwise, by any of the
foregoing.
"Guaranty Obligation" has the meaning specified in the
definition of "Contingent Obligation."
"Indebtedness" of any Person means, without
duplication, (a) all indebtedness for borrowed money;
(b) all obligations issued, undertaken or assumed as the
deferred purchase price of property or services (other than
trade payables entered into in the ordinary course of
business on ordinary terms); (c) all non-contingent
reimbursement or payment obligations with respect to Surety
Instruments; (d) all obligations evidenced by notes, bonds,
debentures or similar instruments, including obligations so
evidenced incurred in connection with the acquisition of
property, assets or businesses; (e) all indebtedness created
or arising under any conditional sale or other title
retention agreement, or incurred as financing, in either
case with respect to property acquired by the Person (even
though the rights and remedies of the seller or bank under
such agreement in the event of default are limited to
repossession or sale of such property); (f) all obligations
with respect to capital leases; (g) all indebtedness
referred to in clauses (a) through (f) above secured by (or
for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien
upon or in property (including accounts and contracts
rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such
Indebtedness; and (h) all Guaranty Obligations in respect of
indebtedness or obligations of others of the kinds referred
to in clauses (a) through (g) above.
"Interest Expense" means for any period the amount
which, in conformity with GAAP would be set forth opposite
the caption "interest expense" on a consolidated income
statement of the Borrower and its Subsidiaries for such
period.
"Interest Payment Date" means, as to any Loan other
than a Base Rate Loan, the last day of each Interest Period
applicable to such Loan and, as to any Base Rate Loan, the
last Business Day of each calendar quarter and each date
such Loan is converted into another Type of Loan, provided,
however, that if any Interest Period for an Offshore Rate
Loan exceeds 90 days or three months, respectively, the date
that falls 90 days or three months (as the case may be)
after the beginning of such Interest Period and after each
Interest Payment Date thereafter is also an Interest Payment
Date.
"Interest Period" means, as to any Offshore Rate Loan,
the period commencing on the Borrowing Date of such Loan or
on the Conversion/Continuation Date on which the Loan is
converted into or continued as an Offshore Rate Loan, and
ending on the date one through thirty days, or one, two,
three or six months thereafter;
provided that:
(i) if any Interest Period would otherwise end on
a day that is not a Business Day, that Interest Period
shall be extended to the following Business Day unless,
in the case of an Offshore Rate Loan, the result of
such extension would be to carry such Interest Period
into another calendar month, in which event such
Interest Period shall end on the preceding Business
Day;
(ii) any Interest Period pertaining to an
Offshore Rate Loan that begins on the last Business Day
of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at
the end of such Interest Period) shall end on the last
Business Day of the calendar month at the end of such
Interest Period;
(iii) no Interest Period for any Term Loan shall
extend beyond the Term Maturity Date and no Interest
Period for any Revolving Loan shall extend beyond the
Revolving Termination Date; and
(iv) no Interest Period applicable to a Term Loan
or portion thereof shall extend beyond any date upon
which is due any scheduled principal payment in respect
of the Term Loans unless the aggregate principal amount
of Term Loans represented by Base Rate Loans, or by
Offshore Rate Loans having Interest Periods that will
expire on or before such date, equals or exceeds the
amount of such principal payment.
"IRS" means the Internal Revenue Service, and any
Governmental Authority succeeding to any of its principal
functions under the Code.
"Issue" means with respect to any Letter of Credit to
issue or to extend the expiry of, or to renew or increase
the amount of, such Letter of Credit; and the terms "Issued"
"Issuing" and "Issuance" have corresponding meaning.
"L/C Amendment Application" means an application form
for amendment of outstanding standby letters of credit as
shall at any time be in use as Bank shall request.
"L/C Application" means an application form for
issuances of standby or commercial documentary letters of
credit as shall at any time be in use at the Issuing Bank,
as the Issuing Bank shall request.
"L/C Borrowing" means an extension of credit resulting
from a drawing under any Letter of Credit which shall not
have been reimbursed on the date when made nor converted
into a Borrowing of Revolving Loans under Section 2.04.
"L/C Commitment" means the commitment of Bank to Issue
Letters of Credit from time to time Issued or outstanding
under Article III, in an aggregate amount not to exceed on
any date the Revolving Commitment minus outstanding
Revolving Loans, as such commitment shall be reduced as a
result of a reduction in the L/C Commitment pursuant to
Section 2.05; provided that the L/C Commitment is a part of
the combined Commitments, rather than a separate,
independent commitment.
"L/C Obligations" means at any time the sum of (a) the
aggregate undrawn amount of all Letters of Credit then
outstanding, plus (b) the amount of all unreimbursed
drawings under all Letters of Credit, including all
outstanding L/C Borrowings.
"L/C-Related Documents" means the Letters of Credit,
the L/C Applications, the L/C Amendment Applications and any
other document relating to any Letter of Credit, including
any of Bank's standard form documents for letter of credit
issuances.
"Lending Office" means the office or offices of the
Bank specified as its "Lending Office" or "Domestic Lending
Office" or "Offshore Lending Office", as the case may be, on
the signature pages of this Agreement, or such other office
or offices as the Bank may from time to time notify the
Borrower.
"Letters of Credit" means any standby letters of credit
issued by Bank pursuant to Article III.
"Level I Status" shall exist at any date if, at such
date of calculation, the Borrower's Fixed Charge Coverage
Ratio as reported pursuant to Section 4.02 of the Master
Credit Agreement is less than 1.25.
"Level II Status" shall exist at any date if, at such
date of calculation, the Borrower's Fixed Charge Coverage
Ratio as reported pursuant to Section 4.02 of the Master
Credit Agreement is greater than or equal to 1.25.
"Level III Status" shall exist at any date if, at such
date of calculation, the Borrower's Fixed Charge Coverage
Ratio as reported pursuant to Section 4.02 of the Master
Credit Agreement is greater than or equal to 1.50.
"Level IV Status" shall exist at any date if, at such
date of calculation, the Borrower's Fixed Charge Coverage
Ratio as reported pursuant to Section 4.02 of the Master
Credit Agreement is greater than or equal to 1.75.
"Level V Status" shall exist at any date if, at such
date of calculation, the Borrower's Fixed Charge Coverage
Ratio as reported pursuant to Section 4.02 of the Master
Credit Agreement is greater than or equal to 2.0.
"Leverage Ratio" means the ratio of Senior Indebtedness
plus the net present value (in calculating the net present
value the discount rate shall be 10%) of Future Lease
Obligations plus L/C Obligations to Consolidated Adjusted
Net Worth.
"Loan" means an extension of credit by the Bank to the
Borrower under Article II or Article III in the form of a
Revolving Loan, Term Loan or L/C Advance.
"Loan Documents" means this Agreement, any Notes, the
Collateral Documents, the Fee Letters, the L/C-Related
Documents and all other documents delivered to the Bank in
connection with the transactions contemplated by this
Agreement and the Master Credit Agreement.
"Master Credit Agreement" means the master credit
agreement among the Borrower, BofA and First Union National
Bank dated as of the same date hereof.
"Non-Use Fee" means the percentage per annum of the
unused commitment.
"Notice of Borrowing" means a notice in substantially
the form of Exhibit C.
"Notice of Conversion/Continuation" means a notice in
substantially the form of Exhibit D.
"Offshore Rate" means, for any Interest Period, with
respect to an Offshore Rate Loan, the rate of interest per
annum at which dollar deposits in the approximate amount of
the Bank's Offshore Rate Loan would be offered by the Bank's
Grand Cayman Branch, Grand Cayman, B.W.I. (or such other
office as may be designated for such purpose by the Bank) to
major banks in the offshore dollar interbank market upon
request of such banks at approximately 11:00 a.m. (New York
City time) two Business Days prior to the commencement of
such Interest Period.
"Offshore Rate Loan" means a Loan that bears interest
based on the Offshore Rate.
"Organization Documents" means, for any corporation,
the certificate or articles of incorporation, the bylaws,
any certificate of determination or instrument relating to
the rights of preferred shareholders of such corporation,
any shareholder rights agreement, and all applicable
resolutions of the board of directors (or any committee
thereof) of such corporation.
"Person" means an individual, partnership, corporation,
limited liability company, business trust, joint stock
company, trust, unincorporated association, joint venture or
Governmental Authority.
"Rental and Lease Expense" means principal and interest
payments paid under operating leases.
"Requirement of Law" means, as to any Person, any law
(statutory or common), treaty, rule or regulation or
determination of an arbitrator or of a Governmental
Authority, in each case applicable to or binding upon the
Person or any of its property or to which the Person or any
of its property is subject.
"Responsible Officer" means the chief executive officer
or the president of the Company, or any other officer having
substantially the same authority and responsibility; or,
with respect to compliance with financial covenants, the
chief financial officer or the treasurer of the Borrower, or
any other officer having substantially the same authority
and responsibility.
"Revolving Commitment" means $18,000,000 provided,
however, that the aggregate outstandings to both Banks under
the Master Credit Agreement shall not exceed the Borrowing
Base.
"Revolving Loan" has the meaning specified in
Section 2.01.
"Revolving Termination Date" means the earlier to occur
of:
(a) March 31, 1997 provided, however, that such
day may be extended an additional year if the Borrower
and Bank agree to such extension; and
(b) the date on which the Revolving Commitment
terminates in accordance with the provisions of this
Agreement.
"Security Agreement" means the Security Agreement
executed and delivered by the Borrower pursuant to the
Master Credit Agreement, as applicable, as amended,
supplemented, or restated from time to time.
"Subsidiary" of a Person means any corporation,
association, partnership, limited liability company, joint
venture or other business entity of which more than 50% of
the voting stock, membership interests or other equity
interests (in the case of Persons other than corporations),
is owned or controlled directly or indirectly by the Person,
or one or more of the Subsidiaries of the Person, or a
combination thereof. Unless the context otherwise clearly
requires, references herein to a "Subsidiary" refer to a
Subsidiary of the Borrower.
"Surety Instruments" means all letters of credit
(including standby and commercial), banker's acceptances,
bank guaranties, shipside bonds, surety bonds and similar
instruments.
"Taxes" means any and all present or future taxes,
levies, assessments, imposts, duties, deductions, fees,
withholdings or similar charges, and all liabilities with
respect thereto, excluding, in the case of the Bank, taxes
imposed on or measured by the Bank's net income by the
jurisdiction (or any political subdivision thereof) under
the laws of which the Bank is organized or maintains a
lending office.
"Termination Date" means the earlier of (a) five years
from the Revolving Termination Date and (b) the date on
which the Commitment terminates in accordance with the
provisions of this Agreement.
"Term Commitment" has the meaning specified in Section
2.01(b).
"Term Loan" has the meaning specified in Section 2.01.
"Type" has the meaning specified in the definition of
"Loan."
"UCC" means the Uniform Commercial Code as in effect in
the State of Illinois.
"United States" and "U.S." each means the United States
of America.
"Wholly-Owned Subsidiary" means any corporation in
which (other than directors' qualifying shares required by
law) 100% of the capital stock of each class having ordinary
voting power, and 100% of the capital stock of every other
class, in each case, at the time as of which any
determination is being made, is owned, beneficially and of
record, by the Borrower, or by one or more of the other
Wholly-Owned Subsidiaries, or both.
1.02 Other Interpretive Provisions.
(a) The meanings of defined terms are equally
applicable to the singular and plural forms of the defined terms.
(b) The words "hereof", "herein", "hereunder" and
similar words refer to this Agreement as a whole and not to any
particular provision of this Agreement; and subsection, Section,
Schedule and Exhibit references are to this Agreement unless
otherwise specified.
(c) (1) The term "documents" includes any and all
instruments, documents, agreements, certificates,
indentures, notices and other writings, however evidenced.
(2) The term "including" is not limiting and
means "including without limitation."
(3) In the computation of periods of time from a
specified date to a later specified date, the word "from"
means "from and including"; the words "to" and "until" each
mean "to but excluding", and the word "through" means "to
and including."
(4) The term "property" includes any kind of
property or asset, real, personal or mixed, tangible or
intangible.
(d) Unless otherwise expressly provided herein,
(i) references to agreements (including this Agreement) and other
contractual instruments shall be deemed to include all subsequent
amendments and other modifications thereto, but only to the
extent such amendments and other modifications are not prohibited
by the terms of any Loan Document, and (ii) references to any
statute or regulation are to be construed as including all
statutory and regulatory provisions consolidating, amending,
replacing, supplementing or interpreting the statute or
regulation.
(e) The captions and headings of this Agreement are
for convenience of reference only and shall not affect the
interpretation of this Agreement.
(f) This Agreement and other Loan Documents may use
several different limitations, tests or measurements to regulate
the same or similar matters. All such limitations, tests and
measurements are cumulative and shall each be performed in
accordance with their terms. Unless otherwise expressly
provided, any reference to any action of the Bank by way of
consent, approval or waiver shall be deemed modified by the
phrase "in its sole discretion."
(g) This Agreement and the other Loan Documents are
the result of negotiations among and have been reviewed by
counsel to the Bank, the Borrower and the other parties, and are
the products of all parties. Accordingly, they shall not be
construed against the Bank merely because of the Bank's
involvement in their preparation.
1.03 Accounting Principles.
(a) Unless the context otherwise clearly requires, all
accounting terms not expressly defined herein shall be construed,
and all financial computations required under this Agreement
shall be made, in accordance with GAAP, consistently applied.
(b) References herein to "fiscal year" and "fiscal
quarter" refer to such fiscal periods of the Borrower.
ARTICLE II
THE CREDITS
2.01 Amounts and Terms of Commitment.
(a) The Revolving Credit. The Bank agrees, on the
terms and conditions set forth herein and in the Master Credit
Agreement, to make loans to the Borrower (each such loan, a
"Revolving Loan") from time to time on any Business Day during
the period from the Closing Date to the Revolving Termination
Date, in an aggregate amount not to exceed at any time
outstanding the Revolving Commitment less L/C Obligations.
Within the limits of the Revolving Commitment, and subject to the
other terms and conditions hereof, the Borrower may borrow under
this subsection prepay under Section 2.06 and reborrow under this
subsection.
(b) The Term Credit. On the Revolving Termination
Date, the Bank agrees, on the terms and conditions set forth
herein, to convert the amount of Revolving Loans to a Term Loan
(a "Term Loan", the "Term Commitment")) which shall then amortize
in equal monthly principal payments from the Revolving
Termination Date to the Termination Date. Amounts borrowed as
Term Loans which are repaid or prepaid by the Borrower may not be
reborrowed.
(c) The L/C Commitment. The L/C Commitment is
described in Article III. On the Revolving Termination Date and
each anniversary thereafter through the Termination Date, the
Bank may elect on an annual basis to continue the L/C Commitment,
on the terms and conditions set forth herein, in an amount not to
exceed the Borrowing Base less the aggregate principal amount of
the Term Loan.
(d) Joint and Several Liability. The obligations of
each Borrower hereunder are joint and several.
2.02 Loan Accounts. The Loans made by the Bank shall be
evidenced by one or more loan accounts or records maintained by
the Bank in the ordinary course of business. The loan accounts
or records maintained by the Bank shall be conclusive absent
manifest error evidence of the amount of the Loans made by the
Bank to the Borrower and the interest and payments thereon. Any
failure so to record or any error in doing so shall not, however,
limit or otherwise affect the obligation of the Borrower
hereunder to pay any amount owing with respect to the Loans.
2.03 Procedure for Borrowing.
(a) Each Loan shall be made upon the Borrower's
irrevocable written notice delivered to the Bank in the form of a
Notice of Borrowing (which notice must be received by the Bank
prior to 11:00 a.m.) (Chicago, Illinois time) (i) two Business
Days prior to the requested Borrowing Date, in the case of
Offshore Rate Loans; and (ii) on the requested Borrowing Date, in
the case of Base Rate Loans, specifying:
(1) The amount of the Loan, which shall be in a
minimum amount of $100,000 or any multiple of $100,000
in excess thereof;
(2) The requested Borrowing Date, which shall be
a Business Day;
(3) Whether the Loan is to be an Offshore Rate
Loan or a Base Rate Loan;
(4) The duration of the Interest Period
applicable to the Loan included in such notice. If the
Notice of Borrowing fails to specify the duration of
the Interest Period for an Offshore Rate Loan, such
Interest Period shall be 90 days or three months,
respectively.
(b) The proceeds of the Loans will be made available
to the Borrower by the Bank by crediting the account of the
Borrower on the books of the Bank with such proceeds or by wire
transfer in accordance with written instructions provided to the
Bank by the Borrower.
(c) After disbursing any Loan, unless the Bank shall
otherwise consent, there may not be more than three different
Interest Periods in effect.
2.04 Conversion and Continuation Elections.
(a) The Borrower may, upon irrevocable written notice
to the Bank in accordance with subsection 2.04(b):
(1) elect, as of any Business Day, in the case of
Base Rate Loans, or as of the last day of the applicable
Interest Period, in the case of any other Type of Loans, to
convert any such Loans (or any part thereof in an amount not
less than $100,000, or that is in an integral multiple of
$100,000 in excess thereof) into Loans of any other Type; or
(2) elect, as of the last day of the applicable
Interest Period, to continue any Loans having Interest
Periods expiring on such day (or any part thereof in an
amount not less than $100,000, or that is in an integral
multiple of $100,000 in excess thereof);
provided, that if at any time the amount of an Offshore Rate Loan
is reduced, by payment, prepayment, or conversion of part thereof
to be less than $100,000, such Offshore Rate Loan shall
automatically convert into a Base Rate Loan, and on and after
such date the right of the Borrower to continue such Loans as,
and convert such Loans into, Offshore Rate Loans, shall
terminate.
(b) The Borrower shall deliver a Notice of
Conversion/Continuation to be received by the Bank not later than
11:00 a.m. (Chicago, Illinois time) at least (i) two Business
Days in advance of the Conversion/Continuation Date, if the Loans
are to be converted into or continued as Offshore Rate Loans; and
(ii) on the same Business Day as the Conversion/ Continuation
Date, if the Loans are to be converted into Base Rate Loans,
specifying:
(A) The proposed Conversion/Continuation
Date;
(B) The aggregate amount of Loans to be
converted or continued;
(C) The Type of Loans resulting from the
proposed conversion or continuation; and
(D) Other than in the case of conversions
into Base Rate Loans, the duration of the requested
Interest Period.
(c) If upon the expiration of any Interest Period
applicable to Offshore Rate Loans, the Borrower has failed to
select timely a new Interest Period to be applicable to such
Offshore Rate Loans, or if any Default or Event of Default then
exists, the Borrower shall be deemed to have elected to convert
such Offshore Rate Loans into Base Rate Loans effective as of the
expiration date of such Interest Period.
(d) Unless the Bank otherwise consents, during the
existence of a Default or Event of Default, the Borrower may not
elect to have a Loan converted into or continued as an Offshore
Rate Loan.
(e) After giving effect to any conversion or
continuation of Loans, unless the Bank shall otherwise consent,
there may not be more than three different Interest Periods in
effect.
2.05 Voluntary Termination or Reduction of Commitment. The
Borrower may, upon not less than five Business Days' prior notice
to the Bank, terminate the Commitment, or permanently reduce the
Commitment by a minimum amount of $1,000,000 or any multiple of
$1,000,000 in excess thereof; unless, after giving effect thereto
and to any prepayments of Loans made on the effective date
thereof, the then-outstanding principal amount of the Loans would
exceed the amount of the Commitment then in effect. Once reduced
in accordance with this Section, the Commitment may not be
increased. All accrued commitment fees to, but not including the
effective date of any reduction or termination of the Commitment,
shall be paid on the effective date of such reduction or
termination.
2.06 Optional Prepayments. Subject to Section 4.04, the
Borrower may, at any time or from time to time, upon not less
than two Business Days' irrevocable notice to the Bank, ratably
prepay Loans in whole or in part, in minimum amounts of $100,000
or any multiple of $100,000 in excess thereof. Such notice of
prepayment shall specify the date and amount of such prepayment
and the Type(s) of Loans to be prepaid. If such notice is given
by the Borrower, the Borrower shall make such prepayment and the
payment amount specified in such notice shall be due and payable
on the date specified therein, together with accrued interest to
each such date on the amount prepaid and any amounts required
pursuant to Section 4.04. Optional prepayments of Term Loans
shall be applied to the principal installments in inverse order
of maturity.
2.07 Mandatory Prepayments of Loans; Mandatory Commitment
Reductions.
(a) Borrowing Base Overage. On each date when the
aggregate outstanding principal amount of the Loans exceeds the
lesser of the Borrowing Base or the aggregate Commitments, the
Borrower shall make a mandatory prepayment of the Loans in an
amount equal to such excess.
(b) General. Any prepayments pursuant to this Section
shall be applied first to any Base Rate Loans then outstanding
and then to Offshore Rate Loans with the shortest Interest
Periods remaining; provided, however, that if the amount of Base
Rate Loans then outstanding is not sufficient to satisfy the
entire prepayment requirement, the Borrower may, at its option,
place any amounts which it would otherwise be required to use to
prepay Offshore Rate Loans or on a day other than the last day of
the Interest Period therefor in an interest-bearing account
pledged to the Bank until the end of such Interest Period at
which time such pledged amounts will be applied to prepay such
Offshore Rate Loans. The Borrower shall pay, together with each
prepayment under this Section, accrued interest on the amount
prepaid and any amounts required pursuant to Section 4.04.
(c) Reduction of Commitment. Upon the making of any
mandatory prepayment under this Section 2.07, the Commitment of
the Bank shall automatically be reduced by an amount equal to the
Bank's aggregate of principal repaid, effective as of the earlier
of the date that such prepayment is made or the date by which
such prepayment is due and payable hereunder. All accrued
commitment fees to, but not including the effective date of any
reduction or termination of the Commitment, shall be paid on the
effective date of such reduction or termination.
2.08 Repayment.
(a) The Term Credit. The Borrower shall repay the Term
Loans in equal monthly installments on the last Business Day of
each month commencing on the Revolving Termination Date and
ending on the Termination Date.
(b) The Revolving Credit. The Borrower shall repay to
the Bank in full on the Revolving Termination Date the aggregate
principal amount of Revolving Loans outstanding on such date,
except as provided in Section 2.01(b).
2.09 Interest.
(a) Each Loan shall bear interest on the outstanding
principal amount thereof from its Borrowing Date at a rate per
annum equal to the Offshore Rate or the Base Rate, as the case
may be (and subject to the Borrower's right to convert to other
Types of Loans under Section 2.04), plus the Applicable Margin.
(b) Interest on each Loan shall be paid in arrears on
each Interest Payment Date. Interest shall also be paid on the
date of any prepayment of Loans under Section 2.06 or 2.07 for
the portion of the Loans so prepaid and upon payment (including
prepayment) in full thereof and, during the existence of any
Event of Default, interest shall be paid on demand of the Bank.
(c) Notwithstanding subsection (a) of this Section,
while any Event of Default exists or after acceleration, the
Borrower shall pay interest (after as well as before entry of
judgment thereon to the extent permitted by law) on the principal
amount of all outstanding obligations, at a rate per annum which
is determined by adding 2% per annum to the Applicable Margin
then in effect for such Loans and, in the case of Obligations not
subject to an Applicable Margin, at a rate per annum equal to the
Base Rate plus 2%; provided, however, that, on and after the
expiration of any Interest Period applicable to any Offshore Rate
Loan outstanding on the date of occurrence of such Event of
Default or acceleration, the principal amount of such Loan shall,
during the continuation of such Event of Default or after
acceleration, bear interest at a rate per annum equal to the Base
Rate plus 2%.
(d) Anything herein to the contrary notwithstanding,
the obligations of the Borrower to the Bank hereunder shall be
subject to the limitation that payments of interest shall not be
required for any period for which interest is computed hereunder,
to the extent (but only to the extent) that contracting for or
receiving such payment by the Bank would be contrary to the
provisions of any law applicable to the Bank limiting the highest
rate of interest that may be lawfully contracted for, charged or
received by the Bank, and in such event the Borrower shall pay
the Bank interest at the highest rate permitted by applicable
law.
2.10 Fees. The Borrower shall pay to the Bank a Non-Use
fee on the average daily unused portion of the Bank's Commitment,
computed on a quarterly basis in arrears on the last Business Day
of each calendar quarter based upon the daily utilization for
that quarter as calculated by the Bank, equal to the Applicable
Margin. Such commitment fee shall accrue from the Closing Date
to the Termination Date and shall be due and payable quarterly in
arrears on the last Business Day of each quarter commencing on
the Closing Date through the Termination Date, with the final
payment to be made on the Termination Date. The commitment fees
provided in this subsection shall accrue at all times after the
above-mentioned commencement date, including at any time during
which one or more conditions in Article V are not met.
2.11 Computation of Fees and Interest.
(a) All computations of interest for Base Rate Loans
when the Base Rate is determined by the Bank's "reference rate"
shall be made on the basis of a year of 365 or 366 days, as the
case may be, and actual days elapsed. All other computations of
fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more interest being
paid than if computed on the basis of a 365-day year). Interest
and fees shall accrue during each period during which interest or
such fees are computed from the first day thereof to the last day
thereof.
(b) Each determination of an interest rate by the Bank
shall be conclusive and binding on the Borrower in the absence of
manifest error.
2.12 Payments by the Borrower.
(a) All payments to be made by the Borrower shall be
made without set-off, recoupment or counterclaim. Except as
otherwise expressly provided herein, all payments by the Borrower
shall be made to the Bank at the place indicated as the place of
payment in the signature pages of this Agreement or such other
address as the Bank may specify in writing to the Borrower from
time to time, and shall be made in dollars and in immediately
available funds, no later than 12:00 p.m. (Chicago, Illinois
time) on the date specified herein. Any payment received by the
Bank later than 12:00 p.m. (Chicago, Illinois time) shall be
deemed to have been received on the following Business Day and
any applicable interest or fee shall continue to accrue.
(b) Subject to the provisions set forth in the
definition of "Interest Period" herein, whenever any payment is
due on a day other than a Business Day, such payment shall be
made on the following Business Day, and such extension of time
shall in such case be included in the computation of interest or
fees, as the case may be.
2.13 Collateral All obligations of the Borrower under
this Agreement and all other Loan Documents are subject to the
provisions with respect to Collateral as set forth in the Master
Agreement.
ARTICLE III
THE LETTERS OF CREDIT
3.01 The Letter of Credit facility. (a) On the terms and
conditions set forth herein the Bank agrees, (A) from time to
time on any Business Day during the period from the Closing Date
to the Revolving Termination Date, and during any such additional
period pursuant to Section 2.01(c), to issue Letters of Credit
for the account of the Borrower, and to amend or renew Letters of
Credit previously issued by it, in accordance with the provisions
herein, and (B) to honor drafts under the Letters of Credit;
provided, that the Bank shall not be obligated to Issue, any
Letter of Credit if as of the date of Issuance of such Letter of
Credit (the "Issuance Date") (1) the Effective Amount of all L/C
Obligations plus the Effective Amount of all Revolving Loans
exceeds the combined Commitments, or (2) the Effective Amount of
L/C Obligations exceeds the L/C Commitment. Within the foregoing
limits, and subject to the other terms and conditions hereof, the
Borrower's ability to obtain Letters of Credit shall be fully
revolving, and, accordingly, the Borrower may, during the
foregoing periods, obtain Letters of Credit to replace Letters of
Credit which have expired or which have been drawn upon and
reimbursed.
(b) The Bank is under no obligation to Issue any
Letter of Credit if:
(i) any order, judgment or decree of any
Governmental Authority or arbitrator shall by its terms
purport to enjoin or restrain the Bank from Issuing such
Letter of Credit, or any Requirement of Law applicable to
the Bank or any request or directive (whether or not having
the force of law) from any Governmental Authority with
jurisdiction over the Bank shall prohibit, or request that
the Bank refrain from, the Issuance of letters of credit
generally or such Letter of Credit in particular or shall
impose upon the Bank with respect to such Letter of Credit
any restriction, reserve or capital requirement (for which
the Bank is not otherwise compensated hereunder) not in
effect on the Closing Date, or shall impose upon the Bank
any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which the Bank in good
faith deems material to it;
(ii) the Bank has received written notice from
the Borrower, on or prior to the Business Day prior to the
requested date of Issuance of such Letter of Credit, that
one or more of the applicable conditions contained in
Article V is not then satisfied;
(iii) the expiry date of any requested Letter of
Credit is (A) more than 360 days after the date of Issuance,
or (B) more than 360 days after the Revolving Termination
Date;
(iv) the expiry date of any requested Letter of
Credit is prior to the maturity date of any financial
obligation to be supported by the requested Letter of
Credit;
(v) any requested Letter of Credit does not
provide for drafts, or is not otherwise in form and
substance acceptable to the Bank, or the Issuance of a
Letter of Credit shall violate any applicable policies of
the Bank;
(vi) any standby Letter of Credit is for the
purpose of supporting the issuance of any letter of credit
by any other Person; or
(vii) such Letter of Credit is in a face amount
less than $100,000 or denominated in a currency other than
Dollars.
3.02 Issuance, Amendment and Renewal of Letters of Credit.
(a) Each Letter of Credit shall be issued upon the irrevocable
written request of the Borrower received by the Bank at least
four days (or such shorter time as the Bank may agree in a
particular instance in its sole discretion) prior to the proposed
date of issuance. Each such request for issuance of a Letter of
Credit shall be by facsimile, confirmed immediately in an
original writing, in the form of an L/C Application, and shall
specify in form and detail satisfactory to the Bank: (i) the
proposed date of issuance of the Letter of Credit (which shall be
a Business Day); (ii) the face amount of the Letter of Credit;
(iii) the expiry date of the Letter of Credit; (iv) the name and
address of the beneficiary thereof; (v) the documents to be
presented by the beneficiary of the Letter of Credit in case of
any drawing thereunder; (vi) the full text of any certificate to
be presented by the beneficiary in case of any drawing
thereunder; and (vii) such other matters as the Bank may require.
(b) From time to time while a Letter of Credit is
outstanding and prior to the Revolving Termination Date, the Bank
will, upon the written request of the Borrower received by the
Bank at least five days (or such shorter time as the Bank may
agree in a particular instance in its sole discretion) prior to
the proposed date of amendment, amend any Letter of Credit issued
by it. Each such request for amendment of a Letter of Credit
shall be made by facsimile, confirmed immediately in an original
writing, made in the form of an L/C Amendment Application and
shall specify in form and detail satisfactory to the Bank: (i)
the Letter of Credit to be amended; (ii) the proposed date of
amendment of the Letter of Credit (which shall be a Business
Day); (iii) the nature of the proposed amendment; and (iv) such
other matters as the Bank may require. The Bank shall be under
no obligation to amend any Letter of Credit if: (A) the Bank
would have no obligation at such time to issue such Letter of
Credit in its amended form under the terms of this Agreement; or
(B) the beneficiary of any such letter of Credit does not accept
the proposed amendment to the Letter of Credit.
(c) The Bank agrees that, while a Letter of Credit is
outstanding and prior to the Revolving Termination Date, at the
option of the Borrower and upon the written request of the
Borrower received by the Bank at least five days (or such shorter
time as the Bank may agree in a particular instance in its sole
discretion) prior to the proposed date of notification of
renewal, the Bank shall be entitled to authorize the automatic
renewal of any Letter of Credit issued by it. Each such request
for renewal of a Letter of Credit shall be made by facsimile,
confirmed immediately in an original writing, in the form of an
L/C Amendment Application, and shall specify in form and detail
satisfactory to the Bank: (i) the Letter of Credit to be renewed;
(ii) the proposed date of notification of renewal of the Letter
of Credit (which shall be a Business Day); (iii) the revised
expiry date of the Letter of Credit; and (iv) such other matters
as the Bank may require. The Bank shall be under no obligation
so to renew any Letter of Credit if: (A) the Bank would have no
obligation at such time to issue or amend such Letter of Credit
in its renewed form under the terms of this Agreement; or (B) the
beneficiary of any such Letter of Credit does not accept the
proposed renewal of the Letter of Credit. If any outstanding
Letter of Credit shall provide that it shall be automatically
renewed unless the beneficiary thereof receives notice from the
Bank that such Letter of Credit shall not be renewed, and if at
the time of renewal the Bank would be entitled to authorize the
automatic renewal of such Letter of Credit in accordance with
this Section 3.02 upon the request of the Borrower but the Bank
shall not have received any L/C Amendment Application from the
Borrower with respect to such renewal or other written direction
by the Borrower with respect thereto, the Bank shall nonetheless
be permitted to allow such Letter of Credit to renew, and the
Borrower hereby authorizes such renewal, and, accordingly, the
Bank shall be deemed to have received an L/C Amendment
Application from the Borrower requesting such renewal.
(d) The Bank may, at its election, deliver any notices
of termination or other communications to any Letter of Credit
beneficiary or transferee, and take any other action as necessary
or appropriate, at any time and from time to time, in order to
cause the expiry date of such Letter of Credit to be a date not
later than the Revolving Termination Date.
(e) This Agreement shall control in the event of any
conflict with any L/C-Related Document (other than any Letter of
Credit).
3.03 Drawings and Reimbursements. (a) In the event of any
request for a drawing under a Letter of Credit by the beneficiary
or transferee thereof, the Bank will promptly notify the
Borrower. The Borrower shall reimburse the Bank prior to 10:00
a.m. (Chicago time)], on each date that any amount is paid by the
Bank under any Letter of Credit (each such date, an "Honor
Date"), in an amount equal to the amount so paid by the Bank. In
the event the Borrower fails to reimburse the Bank for the full
amount of any drawing under any Letter of Credit by 10:00 a.m.
(Chicago time) on the Honor Date, and the Borrower shall be
deemed to have requested that Base Rate Loans be made by the Bank
to be disbursed on the Honor Date under such Letter of Credit,
subject to the amount of the unutilized portion of the Revolving
Commitment and subject to the conditions set forth in Section
5.02. Any notice given by the Bank pursuant to this subsection
3.03(a) may be oral if immediately confirmed in writing
(including by facsimile); provided that the lack of such an
immediate confirmation shall not affect the conclusiveness or
binding effect of such notice.
(b) With respect to any unreimbursed drawing that is
not converted into Revolving Loans consisting of Base Rate Loans
to the Borrower in whole or in part, because of the Borrower's
failure to satisfy the conditions set forth in Section 5.02 or
for any other reason, the Borrower shall be deemed to have
incurred from the Bank an L/C Borrowing in the amount of such
drawing, which L/C Borrowing shall be due and payable on demand
(together with interest) and shall bear interest at a rate per
annum equal to the Base Rate plus 2% per annum.
3.04 Bank's Role as the Issuing Bank. (a) The Borrower
agrees that, in paying any drawing under a Letter of Credit, the
Bank shall not have any responsibility to obtain any document
(other than any sight draft and certificates expressly required
by the Letter of Credit) or to ascertain or inquire as to the
validity or accuracy of any such document or the authority of the
Person executing or delivering any such document.
(b) The Borrower hereby assumes all risks of the acts
or omissions of any beneficiary or transferee with respect to its
use of any Letter of Credit; provided, however, that this
assumption is not intended to, and shall not, preclude the
Borrower's pursuing such rights and remedies as it may have
against the beneficiary or transferee at law or under any other
agreement. No Agent-Related Person, nor any of the respective
correspondents, participants or assignees of the Bank, shall be
liable or responsible for any of the matters described in clauses
(i) through (vii) of Section 3.05; provided, however, anything in
such clauses to the contrary notwithstanding, that the Borrower
may have a claim against the Bank, and the Bank may be liable to
the Borrower, to the extent, but only to the extent, of any
direct, as opposed to consequential or exemplary, damages
suffered by the Borrower which the Borrower proves were caused by
the Bank's willful misconduct or gross negligence or the Bank's
willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and
certificate(s) strictly complying with the terms and conditions
of a Letter of Credit. In furtherance and not in limitation of
the foregoing: (i) the Bank may accept documents that appear on
their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the
contrary; and (ii) the Bank shall not be responsible for the
validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit
or the rights or benefits thereunder or proceeds thereof, in
whole or in part, which may prove to be invalid or ineffective
for any reason.
3.05 Obligations Absolute. The obligations of the Borrower
under this Agreement and any L/C-Related Document to reimburse
the Bank for a drawing under a Letter of Credit, and to repay any
L/C Borrowing and any drawing under a Letter of Credit converted
into Revolving Loans, shall be unconditional and irrevocable, and
shall be paid strictly in accordance with the terms of this
Agreement and each such other L/C-Related Document under all
circumstances, including the following:
(i) any lack of validity or enforceability of
this Agreement or any L/C-Related Document;
(ii) any change in the time, manner or place of
payment of, or in any other term of, all or any of the
obligations of the Borrower in respect of any Letter of
Credit or any other amendment or waiver of or any consent to
departure from all or any of the L/C-Related Documents;
(iii) the existence of any claim, set-off,
defense or other right that the Borrower may have at any
time against any beneficiary or any transferee of any Letter
of Credit (or any Person for whom any such beneficiary or
any such transferee may be acting), the Bank or any other
Person, whether in connection with this Agreement, the
transactions contemplated hereby or by the L/C-Related
Documents or any unrelated transaction;
(iv) any draft, demand, certificate or other
document presented under any Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any
respect; or any loss or delay in the transmission or
otherwise of any document required in order to make a
drawing under any Letter of Credit;
(v) any payment by the Bank under any Letter of
Credit against presentation of a draft or certificate that
does not strictly comply with the terms of any Letter of
Credit; or any payment made by the Bank under any Letter of
Credit to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit
of creditors, liquidator, receiver or other representative
of or successor to any beneficiary or any transferee of any
Letter of Credit, including any arising in connection with
any Insolvency Proceeding;
(vi) any exchange, release or non-perfection of
any collateral, or any release or amendment or waiver of or
consent to departure from any other guarantee, for all or
any of the obligations of the Borrower in respect of any
Letter of Credit; or
(vii) any other circumstance or happening
whatsoever, whether or not similar to any of the foregoing,
including any other circumstance that might otherwise
constitute a defense available to, or a discharge of, the
Borrower or a guarantor.
3.06 Cash Collateral Pledge. Upon (i) the request of the
Bank, if, as of the Termination Date, any Letters of Credit may
for any reason remain outstanding and partially or wholly
undrawn, or (ii) the occurrence of the circumstances described in
subsection 2.07 requiring the Borrower to Cash Collateralize
Letters of Credit, then, the Borrower shall immediately Cash
Collateralize the L/C Obligations in an amount equal to the L/C
Obligations.
3.07 Letter of Credit Fees.
(a) The Borrower shall pay to the Bank a letter of
credit fee with respect to the Letters of Credit equal to the
Applicable Margin per annum of the average daily maximum amount
available to be drawn of the outstanding Letters of Credit,
computed on a quarterly basis in arrears on the last Business Day
of each calendar quarter based upon Letters of Credit outstanding
for that quarter as calculated by the Bank. Such letter of
credit fees shall be due and payable quarterly in arrears on the
last Business Day of each calendar quarter during which Letters
of Credit are outstanding, commencing on the first such quarterly
date to occur after the Closing Date, through the Revolving
Termination Date (or such later date upon which the outstanding
Letters of Credit shall expire), with the final payment to be
made on the Revolving Termination Date (or such later expiration
date).
(b) The Borrower shall pay to the Bank from time to
time the normal issuance, presentation, amendment and other
processing fees, and other standard costs and charges, of the
Bank relating to letters of credit as from time to time in
effect.
3.08 Uniform Customs and Practice. The Uniform Customs and
Practice for Documentary Credits as published by the
International Chamber of Commerce most recently at the time of
issuance of any Letter of Credit shall (unless otherwise
expressly provided in the Letters of Credit) apply to the Letters
of Credit.
ARTICLE IV
TAXES, YIELD PROTECTION AND ILLEGALITY
4.01 Taxes.
(a) Any and all payments by the Borrower to the Bank
under this Agreement and any other Loan Document shall be made
free and clear of, and without deduction or withholding for, any
Taxes.
(b) If the Borrower shall be required by law to deduct
or withhold any Taxes from or in respect of any sum payable
hereunder to the Bank, then the Borrower shall pay to the Bank,
on demand, amounts equal to any Taxes (other than Federal, state
or local taxes on the overall income of the Bank), domestic or
foreign, which the Bank is required to pay by reason of its
funding or disbursement of any portion of the Loans.
(c) The Bank shall use its best efforts (consistent
with legal and regulatory restrictions) to reduce or eliminate
the causes referenced in subclause (b) (if any) including without
limitation to change the jurisdiction of its Lending Office so as
to eliminate any such additional payment by the Borrower which
may thereafter accrue, if such action or change in the sole
judgment of the bank is not otherwise disadvantageous to the
Bank.
4.02 Illegality.
(a) If the Bank determines that the introduction of
any Requirement of Law, or any change in any Requirement of Law,
or in the interpretation or administration of any Requirement of
Law, has made it unlawful, or that any central bank or other
Governmental Authority has asserted that it is unlawful, for the
Bank or its applicable Lending Office to make Offshore Rate
Loans, then, on notice thereof by the Bank to the Borrower, any
obligation of the Bank to make Offshore Rate Loans shall be
suspended until the Bank notifies the Borrower that the
circumstances giving rise to such determination no longer exist.
(b) If the Bank determines that it is unlawful to
maintain any Offshore Rate Loan, the Borrower shall, upon its
receipt of notice of such fact and demand from the Bank, prepay
in full such Offshore Rate Loans of the Bank then outstanding,
together with interest accrued thereon and amounts required under
Section 4.04, either on the last day of the Interest Period
thereof, if the Bank may lawfully continue to maintain such
Offshore Rate Loans to such day, or immediately, if the Bank may
not lawfully continue to maintain such Offshore Rate Loan. If
the Borrower is required to so prepay any Offshore Rate Loan,
then concurrently with such prepayment, the Borrower shall borrow
from the Bank, in the amount of such repayment, a Base Rate Loan.
(c) If the obligation of the Bank to make or maintain
Offshore Rate Loans has been so terminated or suspended, the
Borrower may elect, by giving notice to the Bank, that all Loans
which would otherwise be made by the Bank as Offshore Rate Loans
shall be instead Base Rate Loans.
4.03 Increased Costs and Reduction of Return. If the Bank
shall have determined that (i) the introduction of any Capital
Adequacy Regulation, (ii) any change in any Capital Adequacy
Regulation, (iii) any change in the interpretation or
administration of any Capital Adequacy Regulation by any central
bank or other Governmental Authority charged with the
interpretation or administration thereof, or (iv) compliance by
the Bank (or its Lending Office) or any corporation controlling
the Bank with any Capital Adequacy Regulation, affects or would
affect the amount of capital required or expected to be
maintained by the Bank or any corporation controlling the Bank
and (taking into consideration the Bank's or such corporation's
policies with respect to capital adequacy and the Bank's desired
return on capital) determines that the amount of such capital is
increased as a consequence of its Commitment, loans, credits or
obligations under this Agreement, then, upon demand of the Bank
to the Borrower, the Borrower shall pay to the Bank, from time to
time as specified by the Bank, additional amounts sufficient to
compensate the Bank for such increase.
4.04 Funding Losses. The Borrower shall reimburse the Bank
and hold the Bank harmless from any loss or expense which the
Bank may sustain or incur as a consequence of:
(a) The failure of the Borrower to make on a timely
basis any payment of principal of any Offshore Rate Loan;
(b) The failure of the Borrower to borrow, continue or
convert a Loan after the Borrower has given (or is deemed to have
given) a Notice of Borrowing or a Notice of Conversion/
Continuation;
(c) The failure of the Borrower to make any prepayment
in accordance with any notice delivered under Section 2.06;
(d) The prepayment (including pursuant to Section
2.07) or other payment (including after acceleration thereof) of
an Offshore Rate Loan on a day that is not the last day of the
relevant Interest Period; or
(e) The automatic conversion under Section 2.04 of any
Offshore Rate Loan to a Base Rate Loan on a day that is not the
last day of the relevant Interest Period;
including any such loss or expense arising from the liquidation
or reemployment of funds obtained by it to maintain its Offshore
Rate Loans or from fees payable to terminate the deposits from
which such funds were obtained.
4.05 Inability to Determine Rates. If the Bank determines
that for any reason adequate and reasonable means do not exist
for determining the Offshore Rate for any requested Interest
Period with respect to a proposed Offshore Rate Loan, or that the
Offshore Rate applicable pursuant to subsection 2.09 for any
requested Interest Period with respect to a proposed Offshore
Rate Loan does not adequately and fairly reflect the cost to the
Bank of funding such Loan, the Bank will promptly so notify the
Borrower. Thereafter, the obligation of the Bank to make or
maintain Offshore Rate Loans, hereunder shall be suspended until
the Bank revokes such notice in writing. Upon receipt of such
notice, the Borrower may revoke any Notice of Borrowing or Notice
of Conversion/Continuation then submitted by it. If the Borrower
does not revoke such Notice, the Bank shall make, convert or
continue the Loans, as proposed by the Borrower, in the amount
specified in the applicable notice submitted by the Borrower, but
such Loans shall be made, converted or continued as Base Rate
Loans instead of Offshore Rate Loans.
4.06 Reserves on Offshore Rate Loans. The Borrower shall
pay to the Bank, as long as the Bank shall be required under
regulations of the FRB to maintain reserves with respect to
liabilities or assets consisting of or including Eurocurrency
funds or deposits (currently known as "Eurocurrency
liabilities"), additional costs on the unpaid principal amount of
each Offshore Rate Loan equal to the actual costs of such
reserves allocated to such Loan by the Bank (as determined by the
Bank in good faith, which determination shall be conclusive),
payable on each date on which interest is payable on such Loan,
provided the Borrower shall have received at least 15 days' prior
written notice of such additional interest from the Bank. If the
Bank fails to give notice 15 days prior to the relevant Interest
Payment Date, such additional interest shall be payable 15 days
from receipt of such notice.
4.07 Certificates of Bank. If the Bank claims
reimbursement or compensation under this Article IV, it shall
deliver to the Borrower a certificate setting forth in reasonable
detail the amount payable to the Bank hereunder.
4.08 Survival. The agreements and obligations of the
Borrower in this Article IV shall survive the payment of all
other Obligations.
ARTICLE V
CONDITIONS PRECEDENT
5.01 Conditions of Initial Credit Extensions. The
obligation of the Bank to make its initial Credit Extension
hereunder is subject to the condition that the Bank shall have
received on or before the Closing Date all of the following, in
form and substance satisfactory to the Bank:
(a) Credit Agreement. This Agreement, the Master
Credit Agreement and other Loan Documents executed by each party
thereto;
(b) Resolutions; Incumbency.
(1) Copies of the resolutions of the board of
directors of the Borrower and each Subsidiary that may become
party to a Loan Document authorizing the transactions
contemplated hereby, certified as of the Closing Date by the
Secretary or an Assistant Secretary of the Borrower; and
(2) A certificate of the Secretary or Assistant
Secretary of the Borrower, and each Subsidiary that may
become party to a Loan Document certifying the names and
true signatures of the officers of the Borrower or such
Subsidiary authorized to execute, deliver and perform, as
applicable, this Agreement, and all other Loan Documents to
be delivered by it hereunder;
(c) Legal Opinions.
(1) An opinion of Klaus Belohoubek, counsel to
the Borrower and addressed to the Bank;
(d) Payment of Fees. Evidence of payment by the
Borrower of all accrued and unpaid fees, costs and expenses to
the extent then due and payable on the Closing Date;
(e) Certificate. A certificate signed by a
Responsible Officer, dated as of the Closing Date, stating that:
(1) the representations and warranties contained
in Article VI are true and correct on and as of such date,
as though made on and as of such date;
(2) no Default or Event of Default exists or
would result from the Credit Extension; and
(3) there has occurred since September 30, 1995,
no event or circumstance that has resulted or could
reasonably be expected to result in a Material Adverse
Effect;
(f) Other Documents. Such other approvals, opinions,
documents or materials as the Bank may request.
5.02 Conditions to All Credit Extensions. The obligation
of the Bank to make any Loan to be made by it (including its
initial Loan) [or to continue or convert any Loan under Section
2.04 and the obligation to Issue any Letter of Credit (including
the initial Letter of Credit is subject to the satisfaction of
the following conditions precedent on the relevant Borrowing
Date, Conversion/Continuation Date of Issuance Date:
(a) Notice, Application. The Bank shall have received
a Notice of Borrowing or a Notice of Conversion/Continuation, as
applicable or in the case of any Issuance of any Letter of
Credit, an L/C application or L/C Amendment application;
(b) Continuation of Representations and Warranties.
The representations and warranties in Article VI shall be true
and correct on and as of such Borrowing Date or Conversion/
Continuation Date or Issuance Date with the same effect as if
made on and as of such Borrowing Date [or Conversion/Continuation
Date or Issuance Date (except to the extent such representations
and warranties expressly refer to an earlier date, in which case
they shall be true and correct as of such earlier date);
(c) No Existing Default. No Default or Event of
Default shall exist or shall result from the making of such Loan
or its continuation or conversion or Issuance; and
Each Notice of Borrowing, Notice of Conversion/Continuation and
L/C application or L/C amendment application submitted by the
Borrower hereunder shall constitute a representation and warranty
by the Borrower hereunder, as of the date of each such notice and
as of each Borrowing Date, Conversion/Continuation Date, or
Issuance Date as applicable, that the conditions in this Section
5.02 are satisfied.
ARTICLE VI
REPRESENTATIONS AND WARRANTIES
The Borrower covenants and agrees that it will comply with
the representations and warranties as contained in Article III of
the Master Credit Agreement. All of the aforementioned
representations and warranties, together with any other
provisions of the Master Agreement to which reference is made
therein, as well as the related definitions are hereby
incorporated herein by reference and shall be deemed to continue
in effect for the benefit of the Bank, whether or not the Master
Agreement remains in effect between the parties thereto.
ARTICLE VII
AFFIRMATIVE COVENANTS
The Borrower covenants and agrees that it will comply with
the affirmative covenants as contained in Article IV of the
Master Credit Agreement. All of the aforementioned covenants,
together with any other provisions of the Master Agreement to
which reference is made therein, as well as the related
definitions are hereby incorporated herein by reference and shall
be deemed to continue in effect for the benefit of the Bank,
whether or not the Master Agreement remains in effect between the
parties thereto.
ARTICLE VIII
NEGATIVE COVENANTS
The Borrower covenants and agrees that it will comply with
the negative covenants as contained in Article V of the Master
Credit Agreement. All of the aforementioned covenants, together
with any other provisions of the Master Agreement to which
reference is made therein, as well as the related definitions are
hereby incorporated herein by reference and shall be deemed to
continue in effect for the benefit of the Bank, whether or not
the Master Agreement remains in effect between the parties
thereto.
ARTICLE IX
EVENTS OF DEFAULT
9.01 Event of Default. Any of the following shall
constitute an "Event of Default":
(a) Non-Payment. The Borrower fails to make, (i) when
and as required to be made herein, payments of any amount of
principal of any Loan or of any L/C obligation, or (ii) within
five days after the same becomes due, payment of any interest,
fee or any other amount payable hereunder or under any other Loan
Document; or
(b) Representation or Warranty. Any representation or
warranty by the Borrower or any Subsidiary made or deemed made
herein, in any other Loan Document, or which is contained in any
certificate, document or financial or other statement by the
Borrower, any Subsidiary, or any Responsible Officer, furnished
at any time under this Agreement, or in or under any other Loan
Document, is incorrect in any material respect on or as of the
date made or deemed made; or
(c) Specific Defaults. The Borrower fails to perform
or observe any term, covenant or agreement contained in any of
Section 4.14, 5.10 or 5.11 of the Master Agreement; or
(d) An Event of Default occurs under the Master
Agreement.
9.02 Remedies. If any Event of Default occurs, the Bank
may:
(a) Declare its commitment to make Loans and any
obligation to Issue Letters of Credit to be terminated, whereupon
such commitment and obligation shall be terminated;
(b) Declare an amount equal to the maximum aggregate
amount that is or at any time thereafter may become available for
drawing under any outstanding Letters of Credit (whether or not
any beneficiary shall have presented, or shall be entitled at
such time to present, the drafts or other documents required to
draw under such Letters of Credit) to be immediately due and
payable, and declare the unpaid principal amount of all
outstanding Loans, all interest accrued and unpaid thereon, and
all other amounts owing or payable hereunder or under any other
Loan Document to be immediately due and payable, without
presentment, demand, protest or other notice of any kind, all of
which are hereby expressly waived by the Borrower; and
(c) Exercise on behalf of itself all rights and
remedies available to it under the Loan Documents or applicable
law;
provided, however, that upon the occurrence of any event
specified in subsection (e) or (f) of Section 7.01 of the Master
Agreement, the obligation of the Bank to make Loans and any
obligation to Issue Letters of Credit shall automatically
terminate and the unpaid principal amount of all outstanding
Loans and all interest and other amounts as aforesaid shall
automatically become due and payable without further act of the
Bank.
9.03 Rights Not Exclusive. The rights provided for in this
Agreement and the other Loan Documents are cumulative and are not
exclusive of any other rights, powers, privileges or remedies
provided by law or in equity, or under any other instrument,
document or agreement now existing or hereafter arising.
ARTICLE X
MISCELLANEOUS
10.01 Amendments and Waivers. No amendment or waiver of
any provision of this Agreement or any other Loan Document, and
no consent with respect to any departure by the Borrower or any
applicable Subsidiary therefrom, shall be effective unless the
same shall be in writing and signed by the Bank and the Borrower,
and then any such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which
given.
10.02 Notices.
(a) All notices, requests, consents, approvals,
waivers and other communications shall be in writing (including,
unless the context expressly otherwise provides, by facsimile
transmission, provided that any matter transmitted by the
Borrower by facsimile (i) shall be immediately confirmed by a
telephone call to the recipient at the number specified on
Schedule 10.02, and (ii) shall be followed promptly by delivery
of a hard copy original thereof) and mailed, faxed or delivered,
to the address or facsimile number specified for notices on
Schedule 10.02; or, as directed to the Borrower or the Bank, to
such other address as shall be designated by such party in a
written notice to the other party, and as directed to any other
party, at such other address as shall be designated by such party
in a written notice to the other party.
(b) All such notices, requests and communications
shall, when transmitted by overnight delivery, or faxed, be
effective when delivered for overnight (next-day) delivery, or
transmitted in legible form by facsimile machine, respectively,
or if mailed, upon the third Business Day after the date
deposited into the U.S. mail, or if delivered, upon delivery;
except that notices pursuant to Article II to the Bank shall not
be effective until actually received by the Bank.
(c) Any agreement of the Bank herein to receive
certain notices by telephone or facsimile is solely for the
convenience and at the request of the Borrower. The Bank shall
be entitled to rely on the authority of any Person purporting to
be a Person authorized by the Borrower to give such notice and
the Bank shall not have any liability to the Borrower or other
Person on account of any action taken or not taken by the Bank in
reliance upon such telephonic or facsimile notice. The
obligation of the Borrower to repay the Loans shall not be
affected in any way or to any extent by any failure by the Bank
to receive written confirmation of any telephonic or facsimile
notice or the receipt by the Bank of a confirmation which is at
variance with the terms understood by the Bank to be contained in
the telephonic or facsimile notice.
10.03 No Waiver; Cumulative Remedies. No failure to
exercise and no delay in exercising, on the part of the Bank, any
right, remedy, power or privilege hereunder, shall operate as a
waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right,
remedy, power or privilege.
10.04 Costs and Expenses. The Borrower shall:
Pay or reimburse the Bank within five Business Days after demand
for all costs and expenses (including Attorney Costs) incurred by
Bank in connection with the enforcement, attempted enforcement,
or preservation of any rights or remedies under this Agreement or
any other Loan Document during the existence of an Event of
Default or after acceleration of the Loans (including in
connection with any "workout" or restructuring regarding the
Loans, and including any Insolvency Proceeding or appellate
proceeding).
10.05 Borrower Indemnification.
(a) Whether or not the transactions contemplated
hereby are consummated, the Borrower shall indemnify, defend and
hold the Bank, each of its Affiliates, and each of its respective
officers, directors, employees, counsel, agents and
attorneys-in-fact (each, an "Indemnified Person") harmless from
and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, charges,
expenses and disbursements (including Attorney Costs) of any kind
or nature whatsoever which may at any time (including at any time
following repayment of the Loans be imposed on, incurred by or
asserted against any such Person by a third party including with
respect to any investigation, litigation or proceeding (including
any Insolvency Proceeding or appellate proceeding) related to or
arising out or the use of the proceeds thereof, whether or not
any Indemnified Person is a party thereto (all the foregoing,
collectively, the "Indemnified Liabilities"); provided, that the
Borrower shall have no obligation hereunder to any Indemnified
Person with respect to Indemnified Liabilities resulting solely
from the gross negligence or willful misconduct of such
Indemnified Person. The agreements in this Section shall survive
payment of all other Obligations.
(b) The obligations in this Section shall survive
payment of all other Obligations. At the election of any
Indemnified Person, the Borrower shall defend such Indemnified
Person using legal counsel satisfactory to such Indemnified
Person in such Person's sole discretion, at the sole cost and
expense of the Borrower. All amounts owing under this Section
shall be paid within 30 days after demand.
10.06 Marshalling; Payments Set Aside. The Bank shall be
under no obligation to marshall any assets in favor of the
Borrower or any other Person or against or in payment of any or
all of the Obligations. To the extent that the Borrower makes a
payment to the Bank, or the Bank exercises its right of set-off,
and such payment or the proceeds of such set-off or any part
thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside or required (including pursuant to any
settlement entered into by the Bank in its discretion) to be
repaid to a trustee, receiver or any other party, in connection
with any Insolvency Proceeding or otherwise, then to the extent
of such recovery the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full
force and effect as if such payment had not been made or such
set-off had not occurred.
10.07 Successors and Assigns. The provisions of this
Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns,
except that the Borrower may not assign or transfer any of its
rights or obligations under this Agreement without the prior
written consent of the Bank.
10.08 Assignments, Participations, etc. The Bank may at
any time assign and delegate to one or more Affiliates all, or
any ratable part of all, of the Loans, the Commitment and the
other rights and obligations of the Bank hereunder.
10.09 Confidentiality. The Bank agrees to take and to
cause its Affiliates to take normal and reasonable precautions
and exercise due care to maintain the confidentiality of all
information identified as "confidential" or "secret" by the
Borrower and provided to it by the Borrower or any Subsidiary,
under this Agreement or any other Loan Document, and neither it
nor any of its Affiliates shall use any such information other
than in connection with or in enforcement of this Agreement and
the other Loan Documents or in connection with other business now
or hereafter existing or contemplated with the Borrower or any
Subsidiary; except to the extent such information (i) was or
becomes generally available to the public other than as a result
of disclosure by the Bank, or (ii) was or becomes available on a
non-confidential basis from a source other than the Borrower,
provided that such source is not bound by a confidentiality
agreement with the Borrower known to the Bank; provided, however,
that the Bank may disclose such information (A) at the request or
pursuant to any requirement of any Governmental Authority to
which the Bank is subject or in connection with an examination of
the Bank by any such authority; (B) pursuant to subpoena or other
court process, provided, further that Bank agrees to promptly
give notice thereof to the Borrower; (C) when required to do so
in accordance with the provisions of any applicable Requirement
of Law; (D) to the extent reasonably required in connection with
any litigation or proceeding to which the Bank or its respective
Affiliates may be party; (E) to the extent reasonably required in
connection with the exercise of any remedy hereunder or under any
other Loan Document; (F) to the Bank's independent auditors and
other professional advisors; (G) to any participant or assignee,
actual or potential, provided that such Person agrees in writing
to keep such information confidential to the same extent required
of the Bank hereunder; (H) as to the Bank or its Affiliate, as
expressly permitted under the terms of any other document or
agreement regarding confidentiality to which the Borrower or any
Subsidiary is party or is deemed party with the Bank or such
Affiliate; and (I) to its Affiliates.
10.10 Set-off. In addition to any rights and remedies of
the Bank provided by law, if an Event of Default exists or the
Loans have been accelerated, the Bank is authorized at any time
and from time to time, without prior notice to the Borrower, any
such notice being waived by the Borrower to the fullest extent
permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any
time held by, and other indebtedness at any time owing by, the
Bank to or for the credit or the account of the Borrower against
any and all Obligations owing to the Bank, now or hereafter
existing, irrespective of whether or not the Bank shall have made
demand under this Agreement or any Loan Document and although
such Obligations may be contingent or unmatured.
10.11 Counterparts. This Agreement may be executed in any
number of separate counterparts, each of which, when so executed,
shall be deemed an original, and all of said counterparts taken
together shall be deemed to constitute but one and the same
instrument.
10.12 Severability. The illegality or unenforceability of
any provision of this Agreement or any instrument or agreement
required hereunder shall not in any way affect or impair the
legality or enforceability of the remaining provisions of this
Agreement or any instrument or agreement required hereunder.
10.13 No Third Parties Benefited. This Agreement is made
and entered into for the sole protection and legal benefit of the
Borrower, the Bank, the Bank's Affiliates, and their permitted
successors and assigns, and no other Person shall be a direct or
indirect legal beneficiary of, or have any direct or indirect
cause of action or claim in connection with, this Agreement or
any of the other Loan Documents.
10.14 Governing Law and Jurisdiction.
(a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF ILLINOIS; PROVIDED
THAT THE BANK SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.
(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE
COURTS OF THE STATE OF ILLINOIS OR OF THE UNITED STATES FOR THE
NORTHERN DISTRICT OF ILLINOIS, AND BY EXECUTION AND DELIVERY OF
THIS AGREEMENT, EACH OF THE Borrower AND THE BANK CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THOSE COURTS. EACH OF THE Borrower AND THE BANK
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE
LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS,
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION
OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT
OR ANY DOCUMENT RELATED HERETO. THE Borrower AND THE BANK EACH
WAIVE PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY
ILLINOIS LAW.
10.15 Waiver of Jury Trial. THE Borrower AND THE BANK EACH
WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR
OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES
AGAINST ANY OTHER PARTY OR ANY AFFILIATE OF THE BANK, PARTICIPANT
OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT
CLAIMS, OR OTHERWISE. THE Borrower AND THE BANK EACH AGREE THAT
ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL
WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES
FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS
WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION,
COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN
PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS
AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR
THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS.
10.16 Entire Agreement. This Agreement, together with the
other Loan Documents, embodies the entire agreement and
understanding among the Borrower and the Bank and supersedes all
prior or contemporaneous agreements and understandings of such
Persons, verbal or written, relating to the subject matter hereof
and thereof.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and delivered in Chicago by their
proper and duly authorized officers as of the day and year first
above written.
Matlack DE, INC.
By:
Name:
Title:
By:
Name:
Title:
Matlack, INC.
By:
Name:
Title:
By:
Name:
Title:
Safeway Chemical Transportation, Inc.
By:
Name:
Title:
Brite-Sol Services, Inc.
By:
Name:
Title:
BANK OF AMERICA ILLINOIS
By:
Name:
Title: Vice President
SCHEDULE 10.02
OFFSHORE AND DOMESTIC LENDING OFFICES,
ADDRESSES FOR NOTICES
BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION
Domestic and Offshore Lending Office:
1850 Gateway Boulevard, Fourth Floor
Concord, California 94520
Notices (other than Borrowing notices and Notices of
Conversion/Continuation):
Bank of America National Trust
and Savings Association
[Address]
TABLE OF CONTENTS
Section Page
ARTICLE I
DEFINITIONS . . . . . . . . . . . . 1
1.01 Certain Defined Terms. . . . . . . . . . . . . . . . . 1
1.02 Other Interpretive Provisions. . . . . . . . . . . . . 12
1.03 Accounting Principles. . . . . . . . . . . . . . . . . 13
ARTICLE II
THE CREDITS . . . . . . . . . . . . 13
2.01 Amounts and Terms of Commitment. . . . . . . . . . . . 13
(a) The Revolving Credit. . . . . . . . . . . . . . . 13
(b) The Term Credit . . . . . . . . . . . . . . . . . 13
(c) The L/C Commitment. . . . . . . . . . . . . . . . 14
(d) Joint and Several Liability . . . . . . . . . . . 14
2.02 Loan Accounts. . . . . . . . . . . . . . . . . . . . . 14
2.03 Procedure for Borrowing. . . . . . . . . . . . . . . . 14
2.04 Conversion and Continuation Elections. . . . . . . . . 15
2.05 Voluntary Termination or Reduction of Commitment . . . 16
2.06 Optional Prepayments . . . . . . . . . . . . . . . . . 16
2.07 Mandatory Prepayments of Loans; Mandatory Commitment
Reductions . . . . . . . . . . . . . . . . . . . . . . 16
(a) Borrowing Base Overage. . . . . . . . . . . . . . 16
(b) General . . . . . . . . . . . . . . . . . . . . . 17
(c) Reduction of Commitment . . . . . . . . . . . . . 17
2.08 Repayment. . . . . . . . . . . . . . . . . . . . . . . 17
(a) The Term Credit . . . . . . . . . . . . . . . . . 17
(b) The Revolving Credit. . . . . . . . . . . . . . . 17
2.09 Interest . . . . . . . . . . . . . . . . . . . . . . . 17
2.10 Fees . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.11 Computation of Fees and Interest . . . . . . . . . . . 18
2.12 Payments by the Borrower . . . . . . . . . . . . . . . 19
2.13 Collateral . . . . . . . . . . . . . . . . . . . . . . 19
ARTICLE III
THE LETTERS OF CREDIT. . . . . . . . . . 19
3.01 The Letter of Credit facility. . . . . . . . . . . . . 19
3.02 Issuance, Amendment and Renewal of Letters of Credit . 21
3.03 Drawings and Reimbursements. . . . . . . . . . . . . . 22
3.04 Bank's Role as the Issuing Bank. . . . . . . . . . . . 23
3.05 Obligations Absolute . . . . . . . . . . . . . . . . . 23
3.06 Cash Collateral Pledge . . . . . . . . . . . . . . . . 24
3.07 Letter of Credit Fees. . . . . . . . . . . . . . . . . 25
3.08 Uniform Customs and Practice . . . . . . . . . . . . . 25
ARTICLE IV
TAXES, YIELD PROTECTION AND ILLEGALITY. . . . . . 25
4.01 Taxes. . . . . . . . . . . . . . . . . . . . . . . . . 25
4.02 Illegality . . . . . . . . . . . . . . . . . . . . . . 26
4.03 Increased Costs and Reduction of Return. . . . . . . . 26
4.04 Funding Losses . . . . . . . . . . . . . . . . . . . . 27
4.05 Inability to Determine Rates . . . . . . . . . . . . . 27
4.06 Reserves on Offshore Rate Loans. . . . . . . . . . . . 28
4.07 Certificates of Bank . . . . . . . . . . . . . . . . . 28
4.08 Survival . . . . . . . . . . . . . . . . . . . . . . . 28
ARTICLE V
CONDITIONS PRECEDENT . . . . . . . . . . 28
5.01 Conditions of Initial Credit Extensions. . . . . . . . 28
(a) Credit Agreement. . . . . . . . . . . . . . . . . 28
(b) Resolutions; Incumbency . . . . . . . . . . . . . 28
(c) Legal Opinions. . . . . . . . . . . . . . . . . . 29
(d) Payment of Fees . . . . . . . . . . . . . . . . . 29
(e) Certificate . . . . . . . . . . . . . . . . . . . 29
(f) Other Documents . . . . . . . . . . . . . . . . . 29
5.02 Conditions to All Credit Extensions. . . . . . . . . . 29
(a) Notice, Application . . . . . . . . . . . . . . . 29
(b) Continuation of Representations and Warranties. . 29
(c) No Existing Default . . . . . . . . . . . . . . . 29
ARTICLE VI
REPRESENTATIONS AND WARRANTIES. . . . . . . . 30
ARTICLE VII
AFFIRMATIVE COVENANTS. . . . . . . . . . 30
ARTICLE VIII
NEGATIVE COVENANTS. . . . . . . . . . . 30
ARTICLE IX
EVENTS OF DEFAULT. . . . . . . . . . . 31
9.01 Event of Default . . . . . . . . . . . . . . . . . . . 31
(a) Non-Payment . . . . . . . . . . . . . . . . . . . 31
(b) Representation or Warranty. . . . . . . . . . . . 31
(c) Specific Defaults . . . . . . . . . . . . . . . . 31
9.02 Remedies . . . . . . . . . . . . . . . . . . . . . . . 31
9.03 Rights Not Exclusive . . . . . . . . . . . . . . . . . 32
ARTICLE X
MISCELLANEOUS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
10.01 Amendments and Waivers. . . . . . . . . . . . . . . . 32
10.02 Notices . . . . . . . . . . . . . . . . . . . . . . . 32
10.03 No Waiver; Cumulative Remedies. . . . . . . . . . . . 33
10.04 Costs and Expenses. . . . . . . . . . . . . . . . . . 33
10.05 Borrower Indemnification. . . . . . . . . . . . . . . 33
10.06 Marshalling; Payments Set Aside . . . . . . . . . . . 34
10.07 Successors and Assigns. . . . . . . . . . . . . . . . 34
10.08 Assignments, Participations, etc. . . . . . . . . . . 34
10.09 Confidentiality . . . . . . . . . . . . . . . . . . . 34
10.10 Set-off . . . . . . . . . . . . . . . . . . . . . . . 35
10.11 Counterparts. . . . . . . . . . . . . . . . . . . . . 35
10.12 Severability. . . . . . . . . . . . . . . . . . . . . 35
10.13 No Third Parties Benefited. . . . . . . . . . . . . . 35
10.14 Governing Law and Jurisdiction. . . . . . . . . . . . 36
10.15 Waiver of Jury Trial. . . . . . . . . . . . . . . . . 36
10.16 Entire Agreement. . . . . . . . . . . . . . . . . . . 36
SCHEDULES
Schedule 10.02 Lending Office; Addresses for Notices
EXHIBITS
Exhibit A Form of Borrowing Base Certificate
Exhibit B Form of Compliance Certificate
Exhibit C Form of Notice of Borrowing
Exhibit D Form of Notice of Conversion/Continuation
CREDIT AGREEMENT
Dated as of March 27, 1996
among
Matlack DE, Inc.,
Matlack, Inc.,
Safeway Chemical Transportation, Inc.,
Brite-Sol Services, Inc.,
and
Bank of America Illinois
#16600