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EXHIBIT 10.25
BURLINGTON RESOURCES INC.
$600,000,000
LONG-TERM REVOLVING CREDIT AGREEMENT
Dated as of
July 20, 1994
CITIBANK, N.A., as Agent
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TABLE OF CONTENTS
Page
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
SECTION 1.02. Computation of Time Periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
SECTION 1.03. Accounting Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The A Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
SECTION 2.02. Making the A Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
SECTION 2.03. Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
SECTION 2.04. Reduction of the Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SECTION 2.05. Repayment of A Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SECTION 2.06. Interest on A Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SECTION 2.07. Additional Interest on Eurodollar
Rate Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
SECTION 2.08. Interest Rate Determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
SECTION 2.09. Voluntary Conversion of A Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
SECTION 2.10. Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
SECTION 2.11. Increased Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
SECTION 2.12. Increased Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
SECTION 2.13. Illegality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
SECTION 2.14. Payments and Computations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
SECTION 2.15. Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
SECTION 2.16. Sharing of Payments, Etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
SECTION 2.17. Evidence of Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
SECTION 2.18. Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
SECTION 2.19. The B Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
SECTION 2.20. Increase of Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
ARTICLE III
CONDITIONS OF EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to
Effectiveness of this Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
SECTION 3.02. Conditions Precedent to Each
A Borrowing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
SECTION 3.03. Conditions Precedent to Each
B Borrowing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
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ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of
the Borrower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
ARTICLE V
COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
SECTION 5.02. Negative Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
SECTION 5.03. Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
ARTICLE VI
EVENTS OF DEFAULT
SECTION 6.01. Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
ARTICLE VII
THE AGENT
SECTION 7.01. Authorization and Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
SECTION 7.02. Agent's Reliance, Etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
SECTION 7.03. Citibank and Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
SECTION 7.04. Lender Credit Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
SECTION 7.05. Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
SECTION 7.06. Successor Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
ARTICLE VIII
MISCELLANEOUS
SECTION 8.01. Amendments, Etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
SECTION 8.02. Notices, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
SECTION 8.03. No Waiver; Remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
SECTION 8.04. Costs and Expenses; Indemnity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
SECTION 8.05. Right of Set-off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
SECTION 8.06. Binding Effect 64
SECTION 8.07. Assignments and Participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
SECTION 8.08. Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
SECTION 8.09. Consent to Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
SECTION 8.10. Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
SECTION 8.11. Execution in Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
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EXHIBITS
Exhibit A Form of A Promissory Note
Exhibit B Form of B Promissory Note
Exhibit C Form of Notice of A Borrowing
Exhibit D Form of Notice of B Borrowing
Exhibit E Form of Assignment and Acceptance
Exhibit F-1 Form of Commitment Increase Agreement
Exhibit F-2 Form of New Lender Agreement
Exhibit G Form of Opinion of Vice President, Law for Borrower
Exhibit H Form of Opinion of Fried, Frank, Harris, Shriver &
Jacobson, New York Counsel for Borrower
Exhibit I Form of Opinion of Counsel to Citibank, N.A., as Agent
Exhibit J Form of Process Agent Letter
Exhibit K Form of Designation Agreement
SCHEDULES
Schedule I -- Domestic and Eurodollar Lending Offices
Schedule II -- Material Subsidiaries
Schedule III -- Pricing Grid
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LONG-TERM REVOLVING CREDIT AGREEMENT
Dated as of July 20, 1994
BURLINGTON RESOURCES INC., a Delaware corporation (the
"Borrower"), the financial institutions (the "Initial Lenders") listed on the
signature pages hereof, and CITIBANK, N.A. ("Citibank") as agent (the "Agent")
for the Lenders hereunder, agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
"A Advance" means an advance by a Lender to the Borrower as
part of an A Borrowing, and refers to a Base Rate Advance or a
Eurodollar Rate Advance (each of which shall be a "Type" of A
Advance).
"A Borrowing" means a borrowing consisting of A Advances of
the same Type made on the same day by the Lenders pursuant to Section
2.01 and, in the case of Eurodollar Rate Advances, having Interest
Periods of the same duration, it being understood that there may be
more than one A Borrowing on a particular day.
"A Note" means a promissory note of the Borrower payable to
the order of any Lender, in substantially the form of Exhibit A
hereto, evidencing the aggregate indebtedness of the Borrower to such
Lender resulting from the A Advances made by such Lender.
"Advance" means an A Advance or a B Advance.
"Affiliate" means, as to any Person, any other Person that,
directly or indirectly, controls, is controlled by or is under common
control with such Person or is a director or officer of such Person.
The term "controls" (including the terms "controlled by" or "under
common control with") means, with respect to any Person, the
possession, direct or indirect, of the power to vote 10% or more (or
in the case of an "Affiliate" of any Lender, 5% or more) of the
securities having ordinary voting power for the election of directors
of such Person
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or to direct or cause the direction of the management and policies of
such Person, whether through ownership of voting securities or by
contract or otherwise.
"Applicable Lending Office" means, with respect to each
Lender, (i) in the case of an A Advance, such Lender's Domestic
Lending Office in respect of Base Rate Advances and such Lender's
Eurodollar Lending Office in respect of Eurodollar Rate Advances and
(ii) in the case of a B Advance, the office of such Lender notified by
such Lender to the Agent as its Applicable Lending Office with respect
to such B Advance.
"Arranger" means Citicorp Securities, Inc.
"Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender (other than a Designated Bidder) and an
Eligible Assignee, and accepted by the Agent, in substantially the
form of Exhibit E hereto.
"B Advance" means an advance by a Lender to the Borrower as
part of a B Borrowing resulting from the auction bidding procedure
described in Section 2.19.
"B Borrowing" means a borrowing consisting of simultaneous B
Advances to the Borrower from each of the Lenders whose offer to make
one or more B Advances as part of such borrowing has been accepted by
the Borrower under the auction bidding procedure described in Section
2.19, it being understood that there may be more than one B Borrowing
on a particular day.
"B Note" means a promissory note of the Borrower payable to
the order of any Lender, in substantially the form of Exhibit B
hereto, evidencing the indebtedness of the Borrower to such Lender
resulting from a B Advance made by such Lender.
"B Reduction" has the meaning specified in Section 2.01.
"Base Rate" means, for each day in any period, a fluctuating
interest rate per annum as shall be in effect from time to time which
rate per annum shall at all times for such day be equal to the highest
of:
(a) The rate of interest announced publicly by
the Agent in the United States with respect to
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loans made in the United States, from time to time, as the
Agent's base or prime rate as in effect for such day;
(b) The sum (adjusted to the nearest 1/16 of one
percent or, if there is no nearest 1/16 of one percent, to the
next higher 1/16 of one percent) of (i) 1/2 of one percent per
annum, plus (ii) the rate obtained by dividing (A) the latest
three-week moving average of secondary market morning offering
rates in the United States for three-month certificates of
deposit of major United States money market banks, such
three-week moving average (adjusted to the basis of a year of
365 or 366 days, as the case may be) being determined weekly
on each Monday (or, if any such day is not a Business Day, on
the next succeeding Business Day) for the three-week period
ending on the previous Friday by the Agent on the basis of
such rates reported by certificate of deposit dealers to and
published by the Federal Reserve Bank of New York or, if such
publication shall be suspended or terminated, on the basis of
quotations for such rates received by the Agent from three New
York certificate of deposit dealers of recognized standing
selected by the Agent, by (B) a percentage equal to 100% minus
the average of the daily percentages specified during such
three-week period by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maximum
reserve requirement (including, but not limited to, any
emergency, supplemental or other marginal reserve requirement)
for the Agent in respect of liabilities consisting of or
including (among other liabilities) three-month U.S. dollar
nonpersonal time deposits in the United States each in the
amount of $100,000 or more, plus (iii) the average during such
three-week period of the annual assessment rates estimated by
the Agent for determining the then current annual assessment
payable by the Agent to the Federal Deposit Insurance
Corporation (or any successor) for insuring U.S. dollar
deposits of the Agent in the United States; and
(c) 0.50% per annum above the Effective Federal
Funds Rate for such day.
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"Base Rate Advance" means an A Advance which bears interest as
provided in Section 2.06(a)(i).
"Borrowing" means an A Borrowing or a B Borrowing.
"Business Day" means a day of the year on which banks are not
required or authorized to close in New York, New York and, if the
applicable Business Day relates to any Eurodollar Rate Advances, on
which dealings are carried on in the London interbank market.
"Capitalization" means the sum (without duplication) of (i)
consolidated Debt of the Borrower and its consolidated Subsidiaries,
plus (ii) the aggregate amount of Guaranties by the Borrower or its
consolidated Subsidiaries and letters of credit issued for the account
of the Borrower or any consolidated Subsidiary of the Borrower, plus
(iii) the sum of the preferred stock and common stockholders' equity
of the Borrower.
"Commitment" has the meaning specified in Section 2.01.
"Consolidated Tangible Net Worth" means, on a consolidated
basis, the excess of (i) the sum of the preferred stock and common
stockholders' equity of the Borrower, over (ii) the intangible assets
of the Borrower and its consolidated Subsidiaries.
"Convert", "Conversion" and "Converted" each refers to a
conversion of A Advances of one Type into A Advances of another Type
pursuant to Section 2.08, 2.09 or 2.13.
"Debt" of any Person means, without duplication (i)
indebtedness of such Person for borrowed money, (ii) obligations of
such Person (other than any portion of any trade payable obligation of
such Person which shall not have remained unpaid for 91 days or more
from the original due date of such portion) to pay the deferred
purchase price of property or services, and (iii) obligations of such
Person as lessee under leases which shall have been or should be, in
accordance with generally accepted accounting principles, recorded as
capital leases, except that where any such indebtedness or obligation
of such Person is made jointly, or jointly and severally, with any
third party or parties, which are not the Borrower or any of its
consolidated Subsidiaries, the amount thereof for the purposes of this
definition only shall be the pro rata portion thereof payable by
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such Person, so long as such third party or parties have not defaulted
on its or their joint and several portions thereof.
"Designated Bidder" means (a) an Affiliate of a Lender or (b)
a special purpose corporation that is engaged in making, purchasing or
otherwise investing in commercial loans in the ordinary course of its
business and that issues (or the parent of which issues) commercial
paper rated at least "Prime-1" by Moody's or "A-1" by S&P or a
comparable rating from the successor of either of them, that, in the
case of either clause (a) or (b) above, (i) is organized under the
laws of the United States or any state thereof, (ii) shall have become
a party hereto pursuant to subsections (e), (f) and (g) of Section
8.07, and (iii) is not otherwise a Lender. Notwithstanding the
foregoing, each Designated Bidder shall be subject to the written
consent of the Borrower and the Agent, such consent not to be
unreasonably withheld.
"Designation Agreement" means a designation agreement entered
into by the Borrower, a Lender (other than a Designated Bidder) and a
Designated Bidder, and accepted by the Agent, in substantially the
form of Exhibit K hereto.
"Domestic Lending Office" means, with respect to any Lender,
the office of such Lender specified as its "Domestic Lending Office"
opposite its name on Schedule I hereto or in the Assignment and
Acceptance or Increase Agreement pursuant to which it became a Lender,
or such other office of such Lender as such Lender may from time to
time specify to the Borrower and the Agent.
"Effective Federal Funds Rate" means, for any day, the
weighted average of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by Federal funds
brokers, as published for such day (or, if such day is not a Business
Day, for the next preceding Business Day) by the Federal Reserve Bank
of New York or, if such rate is not so published for any day which is
a Business Day, the average of the quotations for such day on such
transactions received by the Agent from three Federal funds brokers
of recognized standing selected by it.
"Eligible Assignee" means, with respect to any particular
assignment under Section 8.07, any bank or
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other financial institution approved in writing by the Borrower
expressly with respect to such assignment and, except as to such an
assignment by Citibank so long as Citibank is the Agent hereunder, the
Agent as an Eligible Assignee for purposes of this Agreement, provided
that neither the Agent's nor the Borrower's approval shall be
unreasonably withheld.
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, and the regulations promulgated
and rulings issued from time to time thereunder.
"ERISA Affiliate" means any Person who is a member of the
Borrower's controlled group within the meaning of Section
4001(a)(14)(A) of ERISA.
"Eurocurrency Liabilities" has the meaning assigned to that
term in Regulation D of the Board of Governors of the Federal Reserve
System, as in effect from time to time.
"Eurodollar Lending Office" means, with respect to each
Lender, the office of such Lender specified as its "Eurodollar Lending
Office" opposite its name on Schedule I hereto or in the Assignment
and Acceptance or Increase Agreement pursuant to which it became a
Lender (or, if no such office is specified, its Domestic Lending
Office) or such other office of such Lender as such Lender may from
time to time specify to the Borrower and the Agent.
"Eurodollar Rate" means, for any Interest Period for each
Eurodollar Rate Advance comprising part of the same A Borrowing, the
interest rate per annum equal to the average (rounded upward to the
nearest whole multiple of 1/16 of 1% per annum, if such average is not
such a multiple) of the rate per annum at which deposits in U.S.
dollars are offered by the principal office of each of the Reference
Banks in London, England, to prime banks in the London interbank
market at 11:00 A.M. (London, England time) two Business Days before
the first day of such Interest Period in an amount comparable to the
amount of such A Borrowing and for a period equal to such Interest
Period. The Eurodollar Rate for the Interest Period for each
Eurodollar Rate Advance comprising part of the same A Borrowing shall
be determined by the Agent on the basis of applicable rates furnished
to and received by the Agent from the Reference Banks two
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Business Days before the first day of such Interest Period, subject,
however, to the provisions of Section 2.08.
"Eurodollar Rate Advance" means an A Advance which bears
interest determined by reference to the Eurodollar Rate, as provided
in Section 2.06(a)(ii).
"Eurodollar Rate Margin" means for any date the percentage per
annum applicable on such date as set forth in the row labelled "LIBOR
Applicable Margin" on Schedule III hereto, which is based on the
ratings (or lack thereof) by Moody's or S&P or both of the public
long-term senior unsecured debt securities of the Borrower.
"Eurodollar Reserve Percentage" of any Lender for any Interest
Period for any Eurodollar Rate Advance means the reserve percentage
applicable during such Interest Period under regulations issued from
time to time by the Board of Governors of the Federal Reserve System
(or if more than one such percentage shall be so applicable, the daily
average of such percentages for those days in such Interest Period
during which any such percentage shall be so applicable) for
determining the maximum reserve requirement (including, but not
limited to, any emergency, supplemental or other marginal reserve
requirement) for such Lender with respect to liabilities or assets
consisting of or including Eurocurrency Liabilities having a term
equal to such Interest Period.
"Events of Default" has the meaning specified in Section 6.01.
"Facility Fee Percentage" means for any date the percentage
per annum applicable on such date as set forth in the row labelled
"Facility Fee" on Schedule III hereto, which is based on the ratings
(or lack thereof) by Moody's or S&P or both of the public long-term
senior unsecured debt securities of the Borrower.
"Guaranty", "Guaranteed" and "Guaranteeing" each means any act
by which a Person assumes, guarantees, endorses or otherwise incurs
direct or contingent liability in connection with, or agrees to
purchase or otherwise acquire or otherwise assures a creditor against
loss in respect of, any Debt of any Person other than the Borrower or
any of its consolidated Subsidiaries (excluding (i) any liability by
endorsement of negotiable
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instruments for deposit or collection or similar transactions in the
ordinary course of business, and (ii) any liability in connection with
obligations of the Borrower or any of its consolidated Subsidiaries,
including, without limitation, obligations under any conditional sales
agreement or equipment lease); provided, however, that for the
purposes of this definition the liability of the Borrower or any of
its Subsidiaries with respect to any obligation as to which a third
party or parties are jointly, or jointly and severally, liable as a
guarantor or otherwise as contemplated hereby and have not defaulted
on its or their portions thereof, shall be only its pro rata portion
of such obligation.
"Increase Agreement" means an agreement entered into by the
Borrower and a Lender increasing such Lender's Commitment pursuant to
Section 2.20, and accepted by the Agent, in substantially the form of
Exhibit F-1 hereto or an agreement entered into by the Borrower and a
bank or other financial institution becoming a Lender pursuant to
Section 2.20, and accepted by the Agent, in substantially the form of
Exhibit F-2 hereto.
"Indemnified Party" means any or all of the Lenders, the
Arranger and the Agent.
"Insufficiency" means, with respect to any Plan, the amount,
if any, of its unfunded benefit liabilities, as defined in Section
4001(a)(18) of ERISA.
"Interest Period" means, for each Eurodollar Rate Advance
comprising part of the same A Borrowing, the period beginning on the
date of such Advance or the date of the Conversion of any Advance into
such Advance and ending on the last day of the period selected by the
Borrower pursuant to the provisions below and, thereafter, each
subsequent period commencing on the last day of the immediately
preceding Interest Period and ending on the last day of the period
selected by the Borrower pursuant to the provisions below. The
duration of each such Interest Period for a Eurodollar Rate Advance
shall be one, two, three or six months, or, subject to availability to
each Lender, nine or twelve months, in each case as the Borrower may,
upon notice received by the Agent not later than 12:00 noon (New York
City time) on the third Business Day prior to the first day of such
Interest Period, select; provided, however, that:
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(i) the duration of any Interest Period which
commences before the Termination Date and would otherwise end
after the Termination Date shall end on the Termination Date;
(ii) if the last day of such Interest Period would
otherwise occur on a day which is not a Business Day, such
last day shall be extended to the next succeeding Business
Day, except if such extension would cause such last day to
occur in a new calendar month, then such last day shall occur
on the next preceding Business Day;
(iii) Interest Periods commencing on the same date
for A Advances comprising the same A Borrowing shall be of the
same duration; and
(iv) any Interest Period which begins on the last
Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall, subject to clause (i)
above, end on the last Business Day of a calendar month.
"Lenders" means the Initial Lenders, each bank or other
financial institution that shall become a party hereto pursuant to
Section 2.20, each Eligible Assignee that shall become a party hereto
pursuant to Section 8.07(a), (b) and (d) and, except when used in
reference to an A Advance, an A Borrowing, an A Note, a Commitment or
a term related to any of the foregoing, each Designated Bidder.
"Lien" means any lien, security interest or other charge or
encumbrance, or any assignment of the right to receive income, or any
other type of preferential arrangement, in each case to secure any
Debt or any Guaranty of any Person.
"Majority Lenders" means at any time Lenders holding at least
51% of the then aggregate unpaid principal amount of the A Notes held
by Lenders, or, if no such principal amount is then outstanding,
Lenders having at least 51% of the Commitments.
"Margin Stock" means "margin stock" as defined in Regulation U
of the Board of Governors of the Federal Reserve System, as in effect
from time to time.
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"Material Adverse Effect" means a material adverse effect on
the financial condition or operations of the Borrower and its
consolidated Subsidiaries on a consolidated basis.
"Material Plan" means any Plan the assets of which exceed
$50,000,000 or the liabilities of which for unfunded vested benefits
determined on a plan termination basis (in accordance with Title IV of
ERISA) exceed $10,000,000.
"Material Subsidiary" means, from time to time, any Subsidiary
of the Borrower then owning assets (determined on a consolidated
basis) that equal or exceed 5% of the book value of the consolidated
assets of the Borrower and its consolidated Subsidiaries at such time.
"Moody's" means Moody's Investors Service.
"Multiemployer Plan" means a "multiemployer plan" as defined
in Section 4001(a)(3) of ERISA to which the Borrower or any ERISA
Affiliate is making or accruing an obligation to make contributions,
or has within any of the preceding five plan years made or accrued an
obligation to make contributions, such plan being maintained pursuant
to one or more collective bargaining agreements.
"Multiple Employer Plan" means a single employer plan, as
defined in Section 4001(a)(15) of ERISA, which (i) is maintained for
employees of the Borrower or an ERISA Affiliate and at least one
Person other than the Borrower and its ERISA Affiliates or (ii) was so
maintained and in respect of which the Borrower or an ERISA Affiliate
could have liability under Section 4064 or 4069 of ERISA in the event
such plan has been or were to be terminated.
"Note" means an A Note or a B Note.
"Notice of A Borrowing" has the meaning specified in Section
2.02(a).
"Notice of B Borrowing" has the meaning specified in Section
2.19(a).
"PBGC" means the Pension Benefit Guaranty Corporation (or any
successor).
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"Permitted Assets" means (i) hydrocarbon or other reserves
(including, without limitation, proved, probable, possible or
speculative reserves), (ii) properties, assets, rights or business
related to reserves (including, without limitation, real property,
gathering systems, plants, pipelines, equipment and processing and
treatment facilities), (iii) other fixed or operating assets and (iv)
the stock of any and all companies that are or become Subsidiaries of
the Borrower owning assets referred to in any of the foregoing
clauses.
"Permitted Liens" means
(a) inchoate Liens and charges imposed by law and
incidental to construction, maintenance, development or operation of
properties, or the operation of business, in the ordinary course of
business if payment of the obligation secured thereby is not yet
overdue or if the validity or amount of which is being contested in
good faith by the Borrower or any Subsidiary of the Borrower;
(b) Liens for taxes, assessments, obligations under
workers' compensation or other social security legislation or other
governmental requirements, charges or levies, in each case not yet
overdue;
(c) Liens reserved in any oil, gas or other mineral lease
entered into in the ordinary course of business for rent, royalty or
delay rental under such lease and for compliance with the terms of
such lease;
(d) easements, servitudes, rights-of-way and other
rights, exceptions, reservations, conditions, limitations, covenants
and other restrictions which do not materially interfere with the
operation, value or use of the properties affected thereby;
(e) conventional provisions contained in any contracts or
agreements affecting properties under which the Borrower or a
Subsidiary of the Borrower is required immediately before the
expiration, termination or abandonment of a particular property to
reassign to the Borrower's or a Subsidiary's predecessor in title all
or a portion of the Borrower's or such Subsidiary's rights, titles and
interests in and to all or a portion of such property;
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(f) any Lien reserved in a grant or conveyance in the
nature of a farm-out or conditional assignment to the Borrower or any
of its Subsidiaries entered into in the ordinary course of business on
reasonable terms to secure undertakings of the Borrower or such
Subsidiary in such grant or conveyance; and
(g) any Lien consisting of (i) statutory landlord's liens
under leases to which the Borrower or any Subsidiary of the Borrower
is a party or other Liens on leased property reserved in leases
thereof for rent or for compliance with the terms of such leases, (ii)
rights reserved to or vested in any municipality or governmental,
statutory or public authority to control or regulate any property of
the Borrower or any of its Subsidiaries or to use such property in any
manner which does not materially impair the use of such property for
the purposes for which it is held by the Borrower or any such
Subsidiary, (iii) obligations or duties to any municipality or public
authority with respect to any franchise, grant, license, lease or
permit and the rights reserved or vested in any governmental authority
or public utility to terminate any such franchise, grant, license,
lease or permit or to condemn or expropriate any property, and (iv)
zoning laws and ordinances and municipal regulations.
"Person" means an individual, partnership, corporation
(including a business trust), joint stock company, trust,
unincorporated association, joint venture or other entity, or a
country or any political subdivision thereof or any agency or
instrumentality of such country or subdivision.
"Plan" means a Single Employer Plan or a Multiple Employer
Plan.
"Process Agent" has the meaning specified in Section 8.09(a).
"Reference Banks" means Citibank, Morgan Guaranty Trust
Company of New York and Union Bank of Switzerland.
"Register" has the meaning specified in Section 8.07(c).
"S&P" means Standard and Poor's Ratings Group, a division of
McGraw-Hill, Inc. on the date hereof.
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"Short-Term Revolving Credit Agreement" means the Short-Term
Revolving Credit Agreement dated as of July 20, 1994 among the
Borrower, the financial institutions party thereto and Citibank, N.A.,
as agent for such financial institutions, as it may be amended or
otherwise modified from time to time.
"Single Employer Plan" means a single employer plan, as
defined in Section 4001(a)(15) of ERISA, that (i) is maintained for
employees of the Borrower or an ERISA Affiliate and no Person other
than the Borrower and its ERISA Affiliates or (ii) was so maintained
and in respect of which the Borrower or an ERISA Affiliate could have
liability under Section 4069 of ERISA in the event such plan has been
or were to be terminated.
"Subsidiary" means, as to any Person, any corporation of which
at least a majority of the outstanding stock having by the terms
thereof ordinary voting power to elect a majority of the board of
directors of such corporation (irrespective of whether or not at the
time stock of any other class or classes of such corporation shall or
might have voting power by reason of the happening of any contingency)
is at the time directly or indirectly beneficially owned or controlled
by such Person or one or more of its Subsidiaries or by such Person
and one or more of the Subsidiaries of such Person.
"Termination Date" means the earlier of (i) July 20, 1999 and
(ii) the date of termination in whole of the Commitments pursuant to
Section 2.04 or 6.01.
"Termination Event" means (i) a "reportable event," as such
term is described in Section 4043 of ERISA (other than a "reportable
event" not subject to the provision for 30-day notice to the PBGC), or
an event described in Section 4062(e) of ERISA, or (ii) the withdrawal
of the Borrower or any ERISA Affiliate from a Multiple Employer Plan
during a plan year in which it was a "substantial employer," as such
term is defined in Section 4001(a)(2) of ERISA, or the incurrence of
liability by the Borrower or any ERISA Affiliate under Section 4064 of
ERISA upon the termination of a Multiple Employer Plan, or (iii) the
filing of a notice of intent to terminate a Plan or the treatment of a
Plan amendment as a termination under Section 4041 of ERISA, or (iv)
the institution of proceedings to terminate a Plan by the PBGC under
Section 4042 of ERISA, or (v) the conditions set forth in
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Section 302(f)(1)(A) and (B) of ERISA to the creation of a lien upon
property or rights to property of the Borrower or any ERISA Affiliate
for failure to make a required payment to a Plan are satisfied, or
(vi) the adoption of an amendment to a Plan requiring the provision of
security to such Plan, pursuant to Section 307 of ERISA, or (vii) any
other event or condition which might constitute grounds under Section
4042 of ERISA for the termination of, or the appointment of a trustee
to administer, any Plan.
"Type" has the meaning specified in the definition of "A
Advance".
"Utilization Fee Percentage" means for any date the percentage
per annum, if any, applicable on such date as set forth in the row
labelled "Utilization Fee" on Schedule III hereto, which is based on
the ratings (or lack thereof) by Moody's or S&P or both of the public
long-term senior unsecured debt securities of the Borrower.
"Withdrawal Liability" shall have the meaning given such term
under Part I of Subtitle E of Title IV of ERISA.
SECTION 1.02. Computation of Time Periods. Unless otherwise
stated in this Agreement, in the computation of a period of time from a
specified date to a later specified date, the word "from" means "from and
including" and the words "to" and "until" each means "to but excluding."
SECTION 1.03. Accounting Terms. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles either (i) consistent with those principles
applied in the preparation of the annual financial statements referred to in
Section 4.01(e), or (ii) not so materially inconsistent with such principles
that a covenant contained in Section 5.01 or 5.02 would be calculated or
construed in a materially different manner or with materially different results
than if such covenant were calculated or construed in accordance with clause
(i) of this Section 1.03.
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ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The A Advances. Each Lender severally agrees,
on the terms and conditions hereinafter set forth, to make A Advances to the
Borrower from time to time on any Business Day during the period from the date
hereof to and including the Termination Date in an aggregate amount not to
exceed at any time outstanding the amount set forth opposite such Lender's name
on the signature pages hereof under the caption "Commitments", or, if such
Lender has entered into any Assignment and Acceptance or Increase Agreement,
set forth for such Lender in the Register maintained by the Agent pursuant to
Section 8.07(c), as such amount may be reduced pursuant to Section 2.04 (such
Lender's "Commitment"), provided that the aggregate amount of the Commitments
of the Lenders shall be deemed used from time to time to the extent of the
aggregate amount of the B Advances then outstanding and such deemed use of the
aggregate amount of such Commitments shall be applied to all the Lenders
ratably according to their respective Commitments (such deemed use of the
aggregate amount of the Commitments being a "B Reduction"). Each A Borrowing
shall be in an aggregate amount of $10,000,000 in the case of an A Borrowing
comprised of Base Rate Advances and $25,000,000 in the case of an A Borrowing
comprised of Eurodollar Rate Advances, or, in either case an integral multiple
of $1,000,000 in excess thereof (or, in the case of an A Borrowing of Base Rate
Advances, the aggregate unused Commitments, if less) and shall consist of A
Advances of the same Type made on the same day by the Lenders ratably according
to their respective Commitments. Within the limits of each Lender's
Commitment, the Borrower may make more than one Borrowing on any Business Day
and may borrow, prepay pursuant to Section 2.10, and reborrow under this
Section 2.01.
SECTION 2.02. Making the A Advances.
(a) Each A Borrowing shall be made on notice by the Borrower
to the Agent (a "Notice of A Borrowing") received by the Agent, (i) in the case
of a proposed A Borrowing comprised of Base Rate Advances, not later than 10:00
A.M. (New York City time) on the Business Day of such proposed A Borrowing, and
(ii) in the case of a proposed A Borrowing comprised of Eurodollar Rate
Advances, not later than 12:00 noon (New York City time) on the third Business
Day prior to the date of such proposed A Borrowing. Each Notice of A Borrowing
shall be by telecopy, telefax or other teletransmission or by telephone (and if
by telephone, confirmed promptly by telecopier,
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telefax or other teletransmission), in substantially the form of Exhibit C
hereto, specifying therein the requested (w) date of such A Borrowing, (x) Type
of A Advances comprising such A Borrowing, (y) aggregate amount of such A
Borrowing, and (z) in the case of an A Borrowing comprised of Eurodollar Rate
Advances, the initial Interest Period for each such A Advance. Each Lender
shall, before 1:00 p.m. (New York City time) on the date of such A Borrowing,
make available for the account of its Applicable Lending Office to the Agent at
its address at Citibank, 399 Park Avenue, New York, New York 10043, Reference:
Burlington Resources Inc., or at such other location designated by notice from
the Agent to the Lenders pursuant to Section 8.02, in same day funds, such
Lender's ratable portion of such A Borrowing. Immediately after the Agent's
receipt of such funds and upon fulfillment of the applicable conditions set
forth in Article III, the Agent will make such funds available to the Borrower
at Citibank, 399 Park Avenue, New York, New York, or at any account of the
Borrower maintained by the Agent (or any successor Agent) designated by the
Borrower and agreed to by the Agent (or such successor Agent), in same day
funds.
(b) Each Notice of A Borrowing shall be irrevocable and
binding on the Borrower. In the case of any A Borrowing which the related
Notice of A Borrowing specified is to be comprised of Eurodollar Rate Advances,
if such A Advances are not made as a result of any failure to fulfill on or
before the date specified for such A Borrowing the applicable conditions set
forth in Article III, the Borrower shall indemnify each Lender against any
loss, cost or expense incurred by such Lender as a result of such failure,
including, without limitation, any loss, cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by such
Lender to fund the A Advance to be made by such Lender as part of such A
Borrowing.
(c) Unless the Agent shall have received notice from a
Lender prior to the date of any A Borrowing that such Lender will not make
available to the Agent such Lender's ratable portion of such A Borrowing, the
Agent may assume that such Lender has made such portion available to the Agent
on the date of such A Borrowing in accordance with subsection (a) of this
Section 2.02 and the Agent may, in reliance upon such assumption, make
available to the Borrower on such date a corresponding amount. If and to the
extent such Lender shall not have so made such ratable portion available to the
Agent, such Lender and the Borrower severally agree to repay to the Agent
forthwith on demand such corresponding amount together
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with interest thereon, for each day from the date such amount is made
available to the Borrower until the date such amount is repaid to the Agent, at
the Effective Federal Funds Rate for such day. If such Lender shall repay to
the Agent such corresponding amount, such amount so repaid shall constitute
such Lender's A Advance to the Borrower as part of such A Borrowing for
purposes of this Agreement.
(d) The failure of any Lender to make the A Advance to be
made by it as part of any A Borrowing shall not relieve any other Lender of its
obligation, if any, hereunder to make its A Advance on the date of such A
Borrowing, but no Lender shall be responsible for the failure of any other
Lender to make the A Advance to be made by such other Lender on the date of any
A Borrowing.
SECTION 2.03. Fees.
(a) Facility Fee. The Borrower agrees to pay to each Lender
(other than a Designated Bidder) a facility fee on the average daily amount of
such Lender's Commitment, whether or not used or deemed used, from the date
hereof in the case of each Initial Lender and from the effective date specified
in the Assignment and Acceptance or Increase Agreement pursuant to which it
became a Lender in the case of each other Lender, in each case until the
Termination Date, payable quarterly in arrears on the last day of each March,
June, September and December during the term of such Lender's Commitment and on
the Termination Date, at a rate per annum equal to the Facility Fee Percentage
in effect from time to time.
(b) Agency Fee. The Borrower agrees to pay to the Agent,
for its own account, such agency fees as may be separately agreed to in writing
by the Borrower and the Agent, such fees to be in the amounts and payable on
the dates as may be so agreed to.
(c) Arrangement Fee. The Borrower agrees to pay to the
Agent, for its own account, an arrangement fee in the amount and payable on the
date separately agreed to in writing by the Agent and the Borrower.
(d) Utilization Fee. The Borrower agrees to pay to each
Lender (other than a Designated Bidder) a utilization fee on the average daily
aggregate amount of the A Advances owing to such Lender and outstanding from
time to time at a rate per annum equal to the Utilization Fee Percentage in
effect from time to time, payable quarterly in arrears on the last day of
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each March, June, September and December, beginning September 30, 1994, and on
the Termination Date; provided, however, that no utilization fee shall be
payable with respect to any quarter or portion thereof for which the
utilization fee would otherwise be payable by the Borrower in accordance with
the foregoing provisions of this subsection (d) if the average daily aggregate
amount of Advances owing to all the Lenders and outstanding from time to time
during such quarter or portion is equal to or less than 50% of the average
daily aggregate amount of the Commitments (used and unused) of all the Lenders
during such quarter or portion.
SECTION 2.04. Reduction of the Commitments. The Borrower
shall have the right, upon at least three Business Days' notice to the Agent,
to terminate in whole or reduce ratably in part the unused portions of the
Commitments of the Lenders (being the amount by which such Commitments exceed
the aggregate outstanding principal amount of all Advances), provided that each
partial reduction shall be in the aggregate amount of $20,000,000 or any whole
multiple of $1,000,000 in excess thereof.
SECTION 2.05. Repayment of A Advances. The Borrower shall
repay to each Lender on the Termination Date the aggregate principal amount of
the A Advances then owing to such Lender.
SECTION 2.06. Interest on A Advances.
(a) Ordinary Interest. The Borrower shall pay interest on the
unpaid principal amount of each A Advance owing to each Lender from the date of
such A Advance until such principal amount is due (whether at stated maturity,
by acceleration or otherwise), at the following rates:
(i) Base Rate Advances. During such periods as such A
Advance is a Base Rate Advance, a rate per annum equal at all times to
the Base Rate in effect from time to time, payable quarterly in
arrears on the last day of each March, June, September and December
during such periods and on the date such Base Rate Advance shall be
Converted or due (whether at stated maturity, by acceleration or
otherwise).
(ii) Eurodollar Rate Advances. During such periods as
such A Advance is a Eurodollar Rate Advance, a rate per annum equal at
all times during each Interest Period for such A Advance to the sum of
the Eurodollar Rate for such Interest Period plus the Eurodollar Rate
Margin in
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effect from time to time, payable on the last day of each such
Interest Period and, if any such Interest Period has a duration of
more than three months, on each day which occurs during such Interest
Period every three months from the first day of such Interest Period
and, if such A Advance is Converted into a Base Rate Advance on any
date other than the last day of any Interest Period for such A
Advance, on the date of such Conversion or, if later, the Business Day
on which the Borrower shall have received at least one Business Day's
prior notice from the Agent or the applicable Lender of the amount of
unpaid interest accrued on such A Advances to the date of such
Conversion.
(b) Default Interest. The Borrower shall pay interest on
the unpaid principal amount of each Advance that is not paid when due (whether
at stated maturity, by acceleration or otherwise) from the date on which such
amount is due until such amount is paid in full, payable on demand, at a rate
per annum equal at all times (i) from such due date to the last day of the then
existing Interest Period therefor, in the case of each Eurodollar Rate Advance,
to 1% per annum above the interest rate per annum required to be paid on such A
Advance immediately prior to the date on which such amount became due and (ii)
from and after the last day of the then existing Interest Period therefor, in
the case of each Eurodollar Rate Advance, and at all times in the case of each
Base Rate Advance or B Advance, to 1% per annum above the Base Rate in effect
from time to time.
SECTION 2.07. Additional Interest on Eurodollar Rate
Advances. If any Lender shall determine in good faith that reserves under
regulations of the Board of Governors of the Federal Reserve System are
required to be maintained by it in respect of, or a portion of its costs of
maintaining reserves under such regulations is properly attributable to, one
or more of its Eurodollar Rate Advances, the Borrower shall pay to such Lender
additional interest on the unpaid principal amount of each such Eurodollar Rate
Advance (other than any such additional interest accruing to a particular
Lender in respect of periods prior to the 30th day preceding the date notice of
such interest is given by such Lender as provided in this Section 2.07),
payable on the same day or days on which interest is payable on such A Advance,
at an interest rate per annum equal at all times during each Interest Period
for such A Advance to the excess of (i) the rate obtained by dividing the
Eurodollar Rate for such Interest Period by a percentage equal to 100% minus
the Eurodollar Reserve Percentage, if any, for such Lender for
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such Interest Period over (ii) the Eurodollar Rate for such Interest Period.
The amount of such additional interest (if any) shall be determined by each
Lender, and such Lender shall furnish written notice of the amount of such
additional interest to the Borrower and the Agent, which notice shall be
conclusive and binding for all purposes, absent manifest error.
SECTION 2.08. Interest Rate Determination. (a) Each Reference
Bank agrees to furnish to the Agent timely information for the purpose of
determining each Eurodollar Rate. If any one or more of the Reference Banks
shall not furnish such timely information to the Agent for the purpose of
determining any such interest rate, the Agent shall determine such interest
rate on the basis of timely information furnished by the remaining Reference
Banks.
(b) The Agent shall give prompt notice to the Borrower
and the Lenders of the applicable interest rate determined by the Agent for
purposes of Section 2.06(a)(i) or (ii), and the applicable rate, if any,
furnished by each Reference Bank for the purpose of determining the applicable
interest rate under Section 2.06(a)(ii).
(c) If fewer than two Reference Banks furnish timely
information to the Agent for determining the Eurodollar Rate for any applicable
A Advances,
(i) the Agent shall give the Borrower and each Lender
prompt notice by telephone (confirmed in writing) that the interest
rate cannot be determined for such applicable A Advances,
(ii) each such A Advance that is a Eurodollar Rate Advance
will automatically, on the last day of the then existing Interest
Period therefor, Convert into a Base Rate Advance (or if such A
Advance is then a Base Rate Advance, will continue as a Base Rate
Advance), and
(iii) the obligations of the Lenders to make, or to Convert
A Advances into, Eurodollar Rate Advances, as the case may be, shall
be suspended until the Agent shall notify the Borrower and the Lenders
that the circumstances causing such suspension no longer exist.
(d) If, with respect to any Eurodollar Rate Advances, the
Majority Lenders determine and give notice to the Agent that as a result of
conditions in or generally affecting the relevant market, the rates of interest
determined on the
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basis of the Eurodollar Rate for any Interest Period for such A Advances will
not adequately reflect the cost to such Majority Lenders of making, funding or
maintaining their respective Eurodollar Rate Advances for such Interest Period,
the Agent shall forthwith so notify the Borrower and the Lenders, whereupon,
(i) each such Eurodollar Rate Advance will automatically, on
the last day of the then existing Interest Period therefor, Convert
into a Base Rate Advance, and
(ii) the obligation of the Lenders to make, or to Convert A
Advances into, Eurodollar Rate Advances shall be suspended until the
Agent shall notify the Borrower and the Lenders that the circumstances
causing such suspension no longer exist.
(e) If the Borrower shall fail to select the duration of
any Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of "Interest Period" in Section 1.01,
the Agent will forthwith so notify the Borrower and the Lenders and such
Eurodollar Rate Advances will automatically, on the last day of the then
existing Interest Period therefor, Convert into Base Rate Advances.
(f) On the date on which the aggregate unpaid principal
amount of A Advances comprising any A Borrowing shall be reduced, by payment or
prepayment or otherwise, to less than $10,000,000, such A Advances shall, if
they are Eurodollar Rate Advances, automatically Convert into Base Rate
Advances, and on and after such date the right of the Borrower to Convert such
A Advances into Eurodollar Rate Advances shall terminate; provided, however,
that if and so long as each such A Advance shall be, or be elected to be
Converted to, Eurodollar Rate Advances having the same Interest Period as
Eurodollar Rate Advances comprising another A Borrowing or other A Borrowings,
and the aggregate unpaid principal amount of all such Eurodollar Rate Advances
shall, or upon such Conversion will, equal or exceed $20,000,000, the Borrower
shall have the right to continue all such Eurodollar Rate Advances as, or to
Convert all such A Advances into, Eurodollar Rate Advances having such Interest
Period.
SECTION 2.09. Voluntary Conversion of A Advances. The
Borrower may on any Business Day, upon notice given to the Agent, not later
than 10:00 A.M. (New York City time) on the Business Day of the proposed
Conversion of Eurodollar Rate
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Advances to Base Rate Advances, and not later than 12:00 noon (New York City
time) on the third Business Day prior to the date of the proposed Conversion in
the case of a Conversion of Base Rate Advances to Eurodollar Rate Advances, and
subject to the provisions of Section 2.08, 2.11 and 2.13, Convert all A
Advances of one Type comprising the same A Borrowing into A Advances of the
other Type; provided, however, that any Conversion of any Eurodollar Rate
Advances into Base Rate Advances made on any day other than the last day of an
Interest Period for such Eurodollar Rate Advances shall be subject to the
provisions of Section 8.04(b). Each such notice of a Conversion shall, within
the restrictions specified above, specify (i) the date of such Conversion, (ii)
the A Advances to be Converted, and (iii) if such Conversion is into Eurodollar
Rate Advances, the duration of the Interest Period for each such Eurodollar
Rate Advance.
SECTION 2.10. Prepayments. The Borrower may, upon (i) in the
case of Eurodollar Rate Advances, at least two Business Days notice or (ii) in
the case of Base Rate Advances, telephonic notice not later than 12:00 noon
(New York City time) on the date of prepayment, to the Agent which specifies
the proposed date and aggregate principal amount of the prepayment and the
Type of A Advances to be prepaid, and if such notice is given the Borrower
shall, prepay the outstanding principal amounts of the A Advances comprising
the same A Borrowing in whole or ratably in part, together with accrued
interest to the date of such prepayment on the amount prepaid; provided,
however, that (x) each partial prepayment shall be in an aggregate principal
amount not less than $10,000,000 or an integral multiple of $1,000,000 in
excess thereof and (y) in the event of any such prepayment of Eurodollar Rate
Advances on any day other than the last day of an Interest Period for such
Eurodollar Rate Advances, the Borrower shall be obligated to reimburse the
Lenders in respect thereof pursuant to, and to the extent required by, Section
8.04(b); provided, further, however, that the Borrower will use its best
efforts to give notice to the Agent of the proposed prepayment of Base Rate
Advances on the Business Day prior to the date of such proposed prepayment.
SECTION 2.11. Increased Costs.
(a) If, due to either (i) the introduction after the date
of this Agreement of or any change after the date of this Agreement (including
any change by way of imposition or increase of reserve requirements or
assessments other than those referred to in the definition of "Eurodollar
Reserve Percentage" contained in Section 1.01) in or in the
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interpretation of any law or regulation or (ii) the compliance with any
guideline or request issued or made after the date of this Agreement from or by
any central bank or other governmental authority (whether or not having the
force of law), in each case above other than those referred to in Section 2.12,
there shall be any increase in the cost to any Lender of agreeing to make, fund
or maintain, or of making, funding or maintaining, Eurodollar Rate Advances
funded in the interbank Eurodollar market, then the Borrower shall from time to
time, upon demand by such Lender (with a copy of such demand to the Agent), pay
to the Agent for the account of such Lender additional amounts sufficient to
reimburse such Lender for all such increased costs (except those incurred more
than 60 days prior to the date of such demand; for the purposes hereof any cost
or expense allocable to a period prior to the publication or effective date of
such an introduction, change, guideline or request shall be deemed to be
incurred on the later of such publication or effective date). Each Lender
agrees to use its best reasonable efforts promptly to notify the Borrower of
any event referred to in clause (i) or (ii) above, provided that the failure to
give such notice shall not affect the rights of any Lender under this Section
2.11(a) (except as otherwise expressly provided above in this Section 2.11(a)).
A certificate as to the amount of such increased cost, submitted to the
Borrower and the Agent by such Lender, shall be conclusive and binding for all
purposes, absent manifest error. After one or more Lenders have notified the
Borrower of any increased costs pursuant to this Section 2.11, the Borrower may
specify by notice to the Agent and the affected Lenders that, after the date of
such notice whenever the election of a Eurodollar Rate Advance by the Borrower
for an Interest Period or portion thereof would give rise to such increased
costs, such election shall not apply to the A Advances of such Lender or
Lenders during such Interest Period or portion thereof, and, in lieu thereof,
such A Advances shall during such Interest Period or portion thereof be Base
Rate Advances. Each Lender agrees to use its best reasonable efforts
(including, without limitation, a reasonable effort to change its Applicable
Lending Office or to transfer its affected A Advances to an Affiliate of such
Lender) to avoid, or minimize the amount of, any demand for payment from the
Borrower under this Section 2.11.
(b) In the event that any Lender shall change its
Eurodollar Lending Office and such change results (at the time of such change)
in increased costs to such Lender, the Borrower shall not be liable to such
Lender for such increased costs incurred by such Lender to the extent, but only
to the extent, that such increased costs shall exceed the increased
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costs which such Lender would have incurred if the Eurodollar Lending Office of
such Lender had not been so changed, but, subject to subsection (a) of this
Section 2.11 and to Section 2.13, nothing herein shall require any Lender to
change its Eurodollar Lending Office for any reason.
SECTION 2.12. Increased Capital. If either (i) the
introduction of or any change in or in the interpretation of any law or
regulation or (ii) compliance by any Lender with any guideline or request from
any central bank or other governmental authority (whether or not having the
force of law) affects or would affect the amount of capital required or
expected to be maintained by such Lender or any corporation controlling such
Lender and such Lender determines that the amount of such capital is increased
by or based upon the existence of such Lender's commitment to lend hereunder
and other commitments of this type, then, within ten days after demand, and
delivery to the Borrower of the certificate referred to in the last sentence of
this Section 2.12 by such Lender (with a copy of such demand to the Agent), the
Borrower shall pay to the Agent for the account of such Lender, from time to
time as specified by such Lender, additional amounts sufficient to compensate
such Lender or such corporation in the light of such circumstances, to the
extent that such Lender reasonably determines such increase in capital to be
allocable to the existence of such Lender's commitment to lend hereunder
(except any such increase in capital incurred more than, or compensation
attributable to the period before, 90 days prior to the date of such demand;
for the purposes hereof any increase in capital allocable to, or compensation
attributable to, a period prior to the publication or effective date of such an
introduction, change, guideline or request shall be deemed to be incurred on
the later of such publication or effective date). Each Lender agrees to use
its best reasonable efforts promptly to notify the Borrower of any event
referred to in clause (i) or (ii) above, provided that the failure to give such
notice shall not affect the rights of any Lender under this Section 2.12
(except as otherwise expressly provided above in this Section 2.12). A
certificate in reasonable detail as to the basis for, and the amount of, such
compensation submitted to the Borrower and the Agent by such Lender shall, in
the absence of manifest error, be conclusive and binding for all purposes.
SECTION 2.13. Illegality. Notwithstanding any other
provision of this Agreement, if the introduction of or any change in or in the
interpretation of any law or regulation shall make it unlawful, or any central
bank or other governmental authority shall assert that it is unlawful, for
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any Lender or its Applicable Lending Office to perform its obligations
hereunder to make Eurodollar Rate Advances or to continue to fund or maintain
such Advances hereunder, such Lender may, by notice to the Borrower and the
Agent, suspend the right of the Borrower to elect Eurodollar Rate Advances from
such Lender and, if necessary in the reasonable opinion of such Lender to
comply with such law or regulation, Convert all such Eurodollar Rate Advances
of such Lender to Base Rate Advances at the latest time permitted by the
applicable law or regulation, and such suspension and, if applicable, such
Conversion shall continue until such Lender notifies the Borrower and the Agent
that the circumstances making it unlawful for such Lender to perform such
obligations no longer exist (which such Lender shall promptly do when such
circumstances no longer exist). So long as the obligation of any Lender to
make Eurodollar Rate Advances has been suspended under this Section 2.13, all
Notices of A Borrowing specifying A Advances of such Type shall be deemed, as
to such Lender, to be requests for Base Rate Advances. Each Lender agrees to
use its best reasonable efforts (including, without limitation, a reasonable
effort to change its Applicable Lending Office or to transfer its affected A
Advances to an affiliate) to avoid any such illegality.
SECTION 2.14. Payments and Computations.
(a) The Borrower shall make each payment hereunder
(including, without limitation, under Section 2.03, 2.05 or 2.06) and under the
Notes, whether the amount so paid is owing to any or all of the Lenders or to
the Agent, not later than 1:00 P.M. (New York City time) without setoff,
counterclaim, or any other deduction whatsoever, on the day when due in U.S.
dollars to the Agent at Citibank, 399 Park Avenue, New York, New York,
Reference: Burlington Resources Inc., or at such other location designated by
notice to the Borrower from the Agent and agreed to by the Borrower, in same
day funds. Each such payment made by the Borrower for the account of any
Lender hereunder, when so made to the Agent, shall be deemed duly made for all
purposes of this Agreement and the A Notes, except that if at any time any such
payment is rescinded or must otherwise be returned by the Agent or any Lender
upon the bankruptcy, insolvency or reorganization of the Borrower or otherwise,
such payment shall be deemed not to have been so made. The Agent will promptly
thereafter cause to be distributed like funds relating to the payment of
principal or interest or fees ratably (other than amounts payable pursuant to
Section 2.07, 2.11, 2.12, 2.13, 2.15, 2.19 or 8.04(b)) to the Lenders for the
account of their respective Applicable Lending Offices, and like funds relating
to the payment of any
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other amount payable to any Lender to such Lender for the account of its
Applicable Lending Office, in each case to be applied in accordance with the
terms of this Agreement. Upon its acceptance of an Assignment and Acceptance
and recording of the information contained therein in the Register pursuant to
Section 8.07(d), from and after the effective date specified in such Assignment
and Acceptance, the Agent shall make all payments hereunder and under the A
Notes in respect of the interest assigned thereby to the Lender assignee
thereunder, and the parties to such Assignment and Acceptance shall make all
appropriate adjustments in such payments for periods prior to such effective
date directly between themselves.
(b) All computations of interest based on the Base Rate
and of facility fees and utilization fees shall be made by the Agent on the
basis of a year of 365 or 366 days, as the case may be, and all computations of
interest based on the Eurodollar Rate, or the Effective Federal Funds Rate
shall be made by the Agent, and all computations of interest pursuant to
Section 2.07 shall be made by each Lender with respect to its own Eurodollar
Rate Advances, on the basis of a year of 360 days, in each case for the actual
number of days (including the first day but excluding the last day) occurring
in the period for which such interest or fees are payable. Each determination
by the Agent (or, in the case of Section 2.07, 2.11, 2.12, 2.13, 2.15, 2.19 or
8.04(b), by each Lender with respect to its own Advances) of an interest rate
or an increased cost, loss or expense or increased capital or of illegality or
taxes hereunder shall be conclusive and binding for all purposes if made
reasonably and in good faith.
(c) Whenever any payment hereunder or under the Notes
shall be stated to be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day, and such extension of time
shall in such case be included in the computation of payment of interest or
facility fees or utilization fees, as the case may be; provided, however, if
such extension would cause payment of interest on or principal of Eurodollar
Rate Advances to be made in the next following calendar month, such payment
shall be made on the next preceding Business Day.
(d) Unless the Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Lenders hereunder
that the Borrower will not make such payment in full, the Agent may assume that
the Borrower has made such payment in full to the Agent on such date and the
Agent may, in reliance upon such assumption, cause to be
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distributed to each Lender on such due date an amount equal to the amount then
due such Lender. If and to the extent the Borrower shall not have so made such
payment in full to the Agent, each Lender shall repay to the Agent forthwith on
demand such amount distributed to such Lender together with interest thereon,
for each day from the date such amount is distributed to such Lender until the
date such Lender repays such amount to the Agent, at a rate equal to the
Effective Federal Funds Rate for such day.
SECTION 2.15. Taxes.
(a) Any and all payments by the Borrower hereunder or
under the Notes shall be made in accordance with Section 2.14, free and clear
of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding in the case of each Indemnified Party, (i) all taxes,
levies, imposts, deductions, charges, or withholdings, and all liabilities with
respect thereto, imposed on or determined by reference to its income, and all
franchise taxes, and (ii) all other taxes, levies, imposts, deductions,
charges, or withholdings in effect at the time that such Indemnified Party
executed this Agreement or otherwise became an "Indemnified Party" hereunder,
and liabilities with respect thereto, imposed on it by reason of the
jurisdiction in which such Indemnified Party is organized, domiciled, resident
or doing business, or any political subdivision thereof, or by reason of the
jurisdiction of its Applicable Lending Office or any other office from which it
makes or maintains any extension of credit hereunder or any political
subdivision thereof (all such non-excluded taxes, levies, imposts, deductions,
charges, withholdings and liabilities in respect of payments under this
Agreement or under the Notes being herein referred to as "Taxes"). If the
Borrower shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder or under any Note to any Indemnified Party, (i) the sum
payable shall be increased as may be necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 2.15) such Indemnified Party receives an amount equal to the
sum it would have received had no such deductions been made, (ii) the Borrower
(or the Agent, as applicable) shall make such deductions at the applicable
statutory rate and (iii) the Borrower (or the Agent, as applicable) shall pay
the full amount deducted to the relevant taxation authority or other authority
in accordance with applicable law, provided that the Borrower shall not be
required to pay any additional amount (and shall be relieved
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of any liability with respect thereto) pursuant to this subsection (a) (or
pursuant to Section 2.15(c), except to the extent Section 2.15(c) relates to
Other Taxes) to any Indemnified Party that either (x) on the date such
Indemnified Party executed this Agreement or otherwise became an "Indemnified
Party" hereunder, either (A) was not entitled to submit a U.S. Internal Revenue
Service form 1001 (relating to such Indemnified Party, and entitling it to a
complete exemption from withholding on all amounts to be received by such
Indemnified Party, including fees, pursuant to this Agreement or the Advances)
or a U.S. Internal Revenue Service form 4224 (relating to all amounts to be
received by such Indemnified Party, including fees, pursuant to this Agreement
and the Advances) or (B) is not a United States person (as such term is defined
in Section 7701(a)(30) of the Internal Revenue Code), or (y) has failed to
submit any form or certificate that it was required to file or provide pursuant
to subsection (d) of this Section 2.15 and is entitled to file or give, as
applicable, under applicable law, provided, further, that should an Indemnified
Party become subject to Taxes because of its failure to deliver a form required
hereunder, the Borrower shall take such administrative steps as such
Indemnified Party shall reasonably request to assist such Indemnified Party to
recover such Taxes, and provided further, that each Indemnified Party, with
respect to itself, agrees to indemnify and hold harmless the Borrower from any
taxes, penalties, interest and other expenses, costs and losses incurred or
payable by the Borrower as a result of the failure of the Borrower to comply
with its obligations under clauses (ii) or (iii) above in reliance on any form
or certificate provided to it by such Indemnified Party pursuant to this
Section 2.15. If any Indemnified Party receives a net credit or refund in
respect of such Taxes or amounts so paid by the Borrower, it shall promptly
notify the Borrower of such net credit or refund and shall promptly pay such
net credit or refund to the Borrower, provided that the Borrower agrees to
return such net credit or refund if the Indemnified Party to which such net
credit or refund is applicable, is required to repay it.
(b) In addition, the Borrower agrees to pay any present
or future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies which arise from any payment made hereunder or under
the Notes or from the execution, delivery or registration of, or otherwise with
respect to, this Agreement or the Notes (hereinafter referred to as "Other
Taxes").
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(c) The Borrower will indemnify each Indemnified Party
for the full amount of Taxes or Other Taxes (including, without limitation, any
Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this
Section 2.15) paid by such Indemnified Party and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto
except as a result of the gross negligence (which shall in any event include
the failure of such Indemnified Party to provide to the Borrower any form or
certificate that it was required to provide pursuant to subsection (d) below)
or willful misconduct of such Indemnified Party, whether or not such Taxes or
Other Taxes were correctly or legally asserted. This indemnification shall be
made within 30 days from the date such Indemnified Party makes written demand
therefor.
(d) On or prior to the date on which each Indemnified
Party organized under the laws of a jurisdiction outside the United States
executes this Agreement or otherwise becomes an "Indemnified Party" hereunder,
such Indemnified Party shall provide the Borrower and the Agent with U.S.
Internal Revenue Service form 1001 or 4224, as appropriate, or any successor
form prescribed by the U.S. Internal Revenue Service, certifying that such
Indemnified Party is fully exempt from United States withholding taxes with
respect to all payments to be made to such Indemnified Party hereunder, or
other documents satisfactory to the Borrower indicating that all payments to be
made to such Indemnified Party hereunder are fully exempt from such taxes.
Thereafter and from time to time, each such Indemnified Party shall submit to
the Borrower and the Agent such additional duly completed and signed copies of
one or the other of such forms (or such successor forms as shall be adopted
from time to time by the relevant United States taxing authorities) as may be
(i) notified by the Borrower to such Indemnified Party and (ii) required under
then-current United States law or regulations to avoid United States
withholding taxes on payments in respect of all amounts to be received by such
Indemnified Party pursuant to this Agreement or the Notes, including without
limitation fees. Upon the request of the Borrower from time to time, each
Indemnified Party that is a United States person (as such term is defined in
Section 7701(a)(30) of the Internal Revenue Code) shall submit to the Borrower
a certificate to the effect that it is such a United States person. If any
Indemnified Party determines, as a result of any change in applicable law,
regulation or treaty, or in any official application or interpretation thereof,
that it is unable to submit to the Borrower any form or certificate that such
Indemnified Party is obligated to
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submit pursuant to this subsection (d), or that such Indemnified Party is
required to withdraw or cancel any such form or certificate previously
submitted, such Indemnified Party shall promptly notify the Borrower and the
Agent of such fact.
(e) Any Indemnified Party claiming any additional amounts
payable pursuant to this Section 2.15 shall use its best reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to
change the jurisdiction of its Applicable Lending Office if the making of such
a change would avoid the need for, or reduce the amount of, any such additional
amounts which may thereafter accrue and would not, in the reasonable judgment
of such Indemnified Party, be otherwise disadvantageous to such Indemnified
Party.
(f) Without prejudice to the survival of any other
agreement of the Borrower hereunder, the agreements and obligations of the
Borrower and each Indemnified Party contained in this Section 2.15 shall
survive the payment in full of principal and interest hereunder and under the
Notes.
SECTION 2.16. Sharing of Payments, Etc. If any Lender shall
obtain any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) on account of the A Advances made by it (other
than pursuant to Section 2.07, 2.11, 2.12, 2.13, 2.15 or 8.04(b)) in excess of
its ratable share of payments on account of the A Advances obtained by all the
Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the A Advances made by them as shall be necessary to cause
such purchasing Lender to share the excess payment ratably with each of them,
provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each
Lender shall be rescinded and each Lender shall repay to the purchasing Lender
the purchase price to the extent of such Lender's ratable share (according to
the proportion of (i) the amount of the participation purchased from such
Lender as a result of such excess payment to (ii) the total amount of such
excess payment) of such recovery together with an amount equal to such Lender's
ratable share (according to the proportion of (i) the amount of such Lender's
required repayment to (ii) the total amount so recovered from the purchasing
Lender) of any interest or other amount paid or payable by the purchasing
Lender in respect of the total amount so recovered. The Borrower agrees that
any Lender so purchasing a participation from another Lender pursuant to this
Section may, to the fullest extent permitted by law, exercise all its rights of
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payment (including the right of set-off) with respect to such participation as
fully as if such Lender were the direct creditor of the Borrower in the amount
of such participation.
SECTION 2.17. Evidence of Debt. The indebtedness of the
Borrower to each Lender in respect of principal of and interest on the A
Advances shall be evidenced by an A Note payable to the order of such Lender
and delivered hereunder by the Borrower. Notwithstanding the provisions of the
A Notes for notations to be made on the grid attached thereto, any Lender may
maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower resulting from A Advances and
payments made from time to time hereunder and under the A Note payable to its
order. In any legal action or proceeding in respect of this Agreement or such
A Note, the entries made in such account or accounts shall be conclusive
evidence of the existence and amounts of the obligations of the Borrower
therein recorded, absent manifest error.
SECTION 2.18. Use of Proceeds. Proceeds of the Advances may
be used for general corporate purposes of the Borrower and its Subsidiaries,
including, without limitation, for acquisitions and for payment of commercial
paper issued by the Borrower.
SECTION 2.19. The B Advances. (a) Each Lender severally
agrees that the Borrower may make B Borrowings under this Section 2.19 from
time to time on any Business Day during the period from the date hereof until
the earlier of (I) the Termination Date or (II) June 15, 1999, in the manner
set forth below; provided that (x) each B Borrowing shall be in an aggregate
amount of $25,000,000 or an integral multiple of $5,000,000 in excess thereof
and (y) following the making of each B Borrowing, the aggregate number of
outstanding B Borrowings shall not exceed seven and the aggregate amount of all
Advances then outstanding shall not exceed the aggregate amount of the
Commitments of the Lenders (computed without regard to any B Reduction).
(i) The Borrower may request a B Borrowing under this
Section 2.19 by delivering to the Agent, by telecopy, telefax or other
teletransmission, a notice of a B Borrowing (a "Notice of B
Borrowing"), in substantially the form of Exhibit D hereto, specifying
the date and aggregate amount of the proposed B Borrowing, the
maturity date for repayment of each B Advance to be made as part of
such B Borrowing (which maturity date may not be earlier than the date
occurring
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30 days after the date of such B Borrowing or later than the earlier
of (x) 180 days after the date of such B Borrowing or (y) July 15,
1999), the interest payment date or dates relating thereto, and any
other terms to be applicable to such B Borrowing, not later than 10:00
A.M. (New York City time) (A) at least one Business Day prior to the
date of the proposed B Borrowing, if the Borrower shall specify in the
Notice of B Borrowing that the rates of interest to be offered by the
Lenders shall be fixed rates per annum and (B) at least four Business
Days prior to the date of the proposed B Borrowing, if the Borrower
shall instead specify in the Notice of B Borrowing the basis to be
used by the Lenders in determining the rates of interest to be offered
by them. The Agent shall in turn promptly notify each Lender of each
request for a B Borrowing received by it from the Borrower by sending
such Lender a copy of the related Notice of B Borrowing.
(ii) Each Lender may, if in its sole and absolute
discretion it elects to do so, irrevocably offer to make one or more B
Advances to the Borrower as part of such proposed B Borrowing at a
rate or rates of interest specified by such Lender in its sole
discretion, by notifying the Agent (which shall give prompt notice
thereof to the Borrower), before 10:00 A.M. (New York City time) (x)
on the date of such proposed B Borrowing in the case of a Notice of B
Borrowing delivered pursuant to clause (A) of paragraph (i) above, and
(y) three Business Days before the date of such proposed B Borrowing
in the case of a Notice of B Borrowing delivered pursuant to clause
(B) of paragraph (i) above, of the minimum amount and maximum amount
of each B Advance which such Lender would be willing to make as part
of such proposed B Borrowing (which amounts may, subject to clause (y)
of the proviso to the first sentence of this Section 2.19(a), exceed
such Lender's Commitment), the rate or rates of interest therefor and
such Lender's Applicable Lending Office with respect to such B
Advance; provided that if the Agent in its capacity as a Lender shall,
in its sole discretion, elect to make any such offer, it shall notify
the Borrower of such offer before 9:45 A.M. (New York City time) on
the date on which notice of such election is to be given to the Agent
by the other Lenders. If any Lender shall elect not to make such an
offer, such Lender shall so notify the Agent, before 10:00 A.M. (New
York City time) on the date on which notice of such election is to be
given to the Agent by the other Lenders, and such Lender shall not be
obligated to, and shall not, make any B
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Advance as part of such B Borrowing; provided that the failure by any
Lender to give such notice shall not cause such Lender to be obligated
to make any B Advance as part of such proposed B Borrowing.
(iii) The Borrower shall, in turn, before 11:00 A.M. (New
York City time) (x) on the date of such proposed B Borrowing, in the
case of a Notice of B Borrowing delivered pursuant to clause (A) of
paragraph (i) above and (y) three Business Days before the date of
such proposed B Borrowing in the case of a Notice of B Borrowing
delivered pursuant to clause (B) of paragraph (i) above, either
A. cancel such B Borrowing by giving the Agent
notice to that effect, or
B. accept one or more of the offers made by any
Lender or Lenders pursuant to paragraph (ii) above, in
order of the lowest to highest rates of interest or margins
(or, if two or more Lenders bid at the same rates of
interest, and the amount of accepted offers is less than
the aggregate amount of such offers, the amount to be
borrowed from such Lenders as part of such B Borrowing
shall be allocated among such Lenders pro rata on the basis
of the maximum amount offered by such Lenders at such rates
or margin in connection with such B Borrowing), in any
aggregate amount up to the aggregate amount initially
requested by the Borrower in the relevant Notice of B
Borrowing, by giving notice to the Agent of the amount of
each B Advance (which amount shall be equal to or greater
than the minimum amount, and equal to or less than the
maximum amount, notified to the Borrower by the Agent on
behalf of such Lender for such B Advance pursuant to
paragraph (ii) above) to be made by each Lender as part of
such B Borrowing, and reject any remaining offers made by
Lenders pursuant to paragraph (ii) above by giving the
Agent notice to that effect.
(iv) If the Borrower notifies the Agent that such B
Borrowing is cancelled pursuant to paragraph (iii)(A) above, the Agent
shall give prompt notice thereof to the Lenders and such B Borrowing
shall not be made.
(v) If the Borrower accepts one or more of the offers
made by any Lender or Lenders pursuant to para-
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graph (iii)(B) above, the Agent shall in turn promptly notify (A) each
Lender that has made an offer as described in paragraph (ii) above, of
the date and aggregate amount of such B Borrowing and whether or not
any offer or offers made by such Lender pursuant to paragraph (ii)
above have been accepted by the Borrower, (B) each Lender that is to
make a B Advance as part of such B Borrowing, of the amount of each B
Advance to be made by such Lender as part of such B Borrowing, and (C)
each Lender that is to make a B Advance as part of such B Borrowing,
upon receipt, that the Agent has received forms of documents appearing
to fulfill the applicable conditions set forth in Article III. Each
Lender that is to make a B Advance as part of such B Borrowing shall,
before 12:00 noon (New York City time) on the date of such B Borrowing
specified in the notice received from the Agent pursuant to clause (A)
of the preceding sentence or any later time when such Lender shall
have received notice from the Agent pursuant to clause (C) of the
preceding sentence, make available for the account of its Applicable
Lending Office to the Agent at its address referred to in Section 8.02
such Lender's portion of such B Borrowing, in same day funds. Upon
fulfillment of the applicable conditions set forth in Article III and
after receipt by the Agent of such funds, the Agent will make such
funds available to the Borrower at the Agent's aforesaid address.
Promptly after each B Borrowing the Agent will notify each Lender of
the amount of the B Borrowing, the consequent B Reduction and the
dates upon which such B Reduction commenced and will terminate.
(b) Within the limits and on the conditions set forth in
this Section 2.19, the Borrower may from time to time borrow under this Section
2.19, repay or prepay pursuant to subsection (c) below, and reborrow under this
Section 2.19.
(c) The Borrower shall repay to the Agent for the account
of each Lender which has made a B Advance, or each other holder of a B Note, on
the maturity date of each B Advance (such maturity date being that specified by
the Borrower for repayment in the related Notice of B Borrowing and provided in
the B Note evidencing such B Advance), the then unpaid principal amount of such
B Advance. The Borrower shall have no right to prepay any B Advance unless,
and then only on the terms, specified by the Borrower for such B Advance in the
related Notice of B Borrowing delivered pursuant to Section 2.19(a)(i) and set
forth in the B Note
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evidencing such B Advance or unless the holder of such B Advance otherwise
consents in writing to such prepayment.
(d) The Borrower shall pay interest on the unpaid
principal amount of each B Advance from the date of such B Advance to the date
the principal amount of such B Advance is repaid in full at the rate of
interest for such B Advance specified by the Lender making such B Advance in
its notice delivered pursuant to subsection (a)(ii) above on the interest date
or dates specified by the Borrower for such B Advance in the related Notice of
B Borrowing and set forth in the B Note evidencing such B Advance, subject to
Section 2.06(b).
(e) The indebtedness of the Borrower in respect of
principal of and interest on each B Advance made to the Borrower as part of a B
Borrowing shall be evidenced by a separate B Note of the Borrower payable to
the order of the Lender making such B Advance.
(f) Each time that the Borrower gives a Notice of B
Borrowing, the Borrower shall pay to the Agent for its own account such fee as
may be agreed between the Borrower and the Agent from time to time, whether or
not any B Borrowing is in fact made.
(g) Following the making of each B Borrowing, the
Borrower agrees that it will be in compliance with the limitations set forth in
clause (y) of the proviso to the first sentence of Section 2.19(a).
(h) The failure of any Lender to make the B Advance to be
made by it as part of any B Borrowing shall not relieve any other Lender of its
obligation, if any, hereunder to make its B Advance on the date of such B
Borrowing, but no Lender shall be responsible for the failure of any other
Lender to make the B Advance to be made by such other Lender on the date of any
B Borrowing. If any Designated Bidder fails to make the B Advance to be made
by it as part of any B Borrowing, such Designated Bidder shall not thereafter
have the right to offer to make any B Advance without the prior written consent
of the Borrower and the Agent.
SECTION 2.20. Increase of Commitments. The Borrower shall
have the right, without the consent of the Lenders or the Agent (except as
contemplated in clauses (d) and (e) of this sentence), to effectuate from time
to time, on any Business Day (but not on more than one Business Day in any
calendar quarter) an increase in the total Commitments under this Agreement (an
"Increase") by adding to this Agreement one
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or more banks or other financial institutions (who shall, upon completion of
the requirements stated in this Section 2.20, constitute Lenders hereunder), or
by allowing one or more Lenders to increase their Commitments hereunder, or
both, provided that (a) no Increase in Commitments pursuant to this Section
2.20 shall result in the total Commitments exceeding $800,000,000 or shall
result in the aggregate amount of the Increases in the Commitments effectuated
pursuant to this Section 2.20 since the date of this Agreement exceeding
$200,000,000, (b) any Increase in Commitments pursuant to this Section 2.20
shall be in the amount of $20,000,000 or an integral multiple of $1,000,000 in
excess thereof, (c) on the effective date of each Increase in the Commitments
pursuant to this Section 2.20, (i) the Borrower shall have outstanding public
long-term senior unsecured debt securities that are rated by S&P or Moody's,
(ii) either (1) the lowest such rating by Moody's shall be A3 or better or (2)
the lowest such rating by S&P shall be A- or better, and (iii) no event shall
have occurred and be continuing which constitutes an Event of Default or would
constitute an Event of Default but for the requirement that notice be given or
time elapse or both, (d) no Lender's Commitment amount shall be increased
without the consent of such Lender, (e) each new bank or other financial
institution, if any, both is acceptable to the Agent and provides a Commitment
of at least $20,000,000, (f) simultaneously with each increase in the
Commitment of any Lender pursuant to this Section 2.20, the Borrower will cause
such Lender's "Commitment" (under and as defined in the Short-Term Revolving
Credit Agreement) to be increased pursuant to Section 2.20 thereof by the same
percentage as such Lender's Commitment is being increased pursuant to this
Section 2.20, unless the Short-Term Revolving Credit Agreement has been
terminated, (g) simultaneously with the addition of any bank or financial
institution pursuant to this Section 2.20, the Borrower will cause such bank or
financial institution to become a party to the Short-Term Revolving Credit
Agreement pursuant to Section 2.20 thereof with a "Commitment" (under and as
defined in the Short-Term Revolving Credit Agreement) that constitutes the same
percentage of all "Commitments" thereunder as the percentage that its
Commitment hereunder constitutes of all Commitments hereunder, unless the
Short-Term Revolving Credit Agreement has been terminated, and (h) immediately
prior to, or simultaneously with, any Increase pursuant to this Section 2.20,
the Borrower will prepay in accordance with the terms of this Agreement, all
outstanding A Advances, if any (including, without limitation, prepayment from
the proceeds of any A Borrowing from the Lenders made on the date of such
Increase in accordance with this Agreement and in accordance with their
respective Commitments after
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giving effect to such Increase). The Borrower shall give the Agent ten
Business Days' notice of the Borrower's intention to effect any Increase in the
total Commitments pursuant to this Section 2.20. Such notice shall specify
each new bank or other financial institution, if any, the changes in amounts of
Commitments that will result, if any, and such other information as is
reasonably requested by the Agent. Each new bank or other financial
institution, and each Lender agreeing to increase its Commitment, shall execute
and deliver to the Agent an Increase Agreement, substantially in the form of
Exhibit F-1 hereto or Exhibit F-2 hereto, as the case may be, pursuant to which
it becomes a party hereto or increases its Commitment, as the case may be. In
addition, the Borrower shall execute and deliver an A Note in the principal
amount of the Commitment of each new bank or other financial institution, or a
replacement A Note in the principal amount of the increased Commitment of each
Lender agreeing to increase its Commitment, as the case may be. Such A Notes
and other documents of the nature referred to in Section 3.01 shall be
furnished to the Agent in form and substance as may be reasonably required by
it. Upon execution and delivery of such documents, such new bank or other
financial institution shall constitute a "Lender" hereunder with a Commitment
as specified therein, or such Lender's Commitment shall increase as specified
therein, as the case may be. Before effecting any Increase by addition of any
new bank or other financial institution, the Borrower will first offer the
Lenders, by notice to them, the right to participate in such Increase by
increasing their respective Commitments, and each Lender electing to
participate in such Increase shall have the right to participate in such
Increase (by increasing its Commitment in accordance with, and subject to, this
Section 2.20) on a ratable basis.
ARTICLE III
CONDITIONS OF EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to Effectiveness of this
Agreement. This Agreement shall become effective when (i) it shall have been
executed by the Borrower and the Agent, (ii) the Agent and the Borrower either
shall have been notified by each Initial Lender that such Initial Lender has
executed it or shall have received a counterpart of this Agreement executed by
such Initial Lender, and (iii) the Agent shall, on or before August 15, 1994,
have received the following, each dated the date of delivery thereof unless
otherwise specified below (which date shall be selected by the Borrower and be
the same for all documents and all Lenders),
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in form and substance satisfactory to the Agent and (except for the Notes) in
sufficient copies for each Lender:
(a) The A Notes, to the order of the Lenders,
respectively.
(b) Certified copies of the resolutions of the Board of
Directors of the Borrower approving the borrowings contemplated hereby
and authorizing the execution of this Agreement and the Notes, and of
all documents evidencing other necessary corporate action and
governmental approvals, if any, with respect to this Agreement and the
Notes.
(c) A certificate of the Secretary or an Assistant
Secretary of the Borrower (i) certifying names and true signatures of
officers of the Borrower authorized to sign this Agreement and the
Notes and the other documents to be delivered hereunder and (ii) if
the date of effectiveness of this Agreement is other than the date
hereof, certifying that the representations and warranties contained
in Section 4.01 are true and correct as of such date of effectiveness.
(d) A favorable opinion of the Borrower's Senior Vice
President, Law or its Vice President, Law, in substantially the form
of Exhibit G hereto.
(e) A favorable opinion of Fried, Frank, Harris, Shriver
& Jacobson, New York counsel to the Borrower, in substantially the
form of Exhibit H hereto.
(f) A favorable opinion of Bracewell & Patterson, L.L.P.,
counsel for the Agent, in substantially the form of Exhibit I hereto.
(g) A letter from the Process Agent, in substantially the
form of Exhibit J hereto, agreeing to act as Process Agent and to
forward forthwith all process received by it to the Borrower.
(h) A letter addressed to the Agent from the Borrower
with respect to the Revolving Credit Agreement dated as of April 21,
1992 (the "1992 Agreement"), among the Borrower, the financial
institutions party thereto as "Lenders" thereunder, and Citibank as
agent for such "Lenders", stating to the effect that (i) all the
"Commitments" (as defined in and under the 1992 Agreement) of the
"Lenders" under the 1992 Agreement have
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been terminated, (ii) no advances are outstanding under the 1992
Agreement, and (iii) all fees and other amounts payable under the 1992
Agreement have been paid in full. Each Lender that is a party to the
1992 Agreement hereby waives the requirement of notice of termination
contemplated by Section 2.04 of the 1992 Agreement.
Anything in this Agreement to the contrary notwithstanding, if all of the
conditions to effectiveness of this Agreement specified in this Section 3.01
shall not have been fulfilled on or before August 15, 1994, this Agreement, and
all of the obligations of the Borrower, the Lenders and the Agent hereunder,
shall be terminated on and as of 5:00 P.M. (New York City time) on August 15,
1994; provided, however, that as soon as the Agent determines that all of the
conditions to effectiveness of this Agreement specified in this Section 3.01
shall have been fulfilled on or before August 15, 1994, the Agent shall furnish
written notice to the Borrower and the Initial Lenders to the effect that it
has so determined, and such notice by the Agent shall constitute conclusive
evidence that this Agreement shall have become effective for all purposes.
SECTION 3.02. Conditions Precedent to Each A Borrowing. The
obligation of each Lender to make an A Advance (including the initial A
Advance) on the occasion of any A Borrowing shall be subject to the further
conditions precedent that on or before the date of such A Borrowing this
Agreement shall have become effective pursuant to Section 3.01 and that on the
date of such A Borrowing, before and immediately after giving effect to such A
Borrowing and to the application of the proceeds therefrom, the following
statements shall be true and correct, and the giving by the Borrower of the
applicable Notice of A Borrowing and the acceptance by the Borrower of the
proceeds of such A Borrowing shall constitute its representation and warranty
that on and as of the date of such A Borrowing, before and immediately after
giving effect thereto and to the application of the proceeds therefrom, the
following statements are true and correct:
(a) Each representation and warranty contained in Section
4.01 is correct in all material respects as though made on and as of
such date;
(b) No event has occurred and is continuing, or would
result from such A Borrowing, which constitutes an Event of Default or
would constitute an Event of Default
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but for the requirement that notice be given or time elapse or both; and
(c) The aggregate amount of the borrowings under this
Agreement (including, without limitation, such A Borrowing) and under
other agreements or facilities or evidenced by other instruments or
documents is not in excess of the aggregate amount of such borrowings
approved as of such date by the Board of Directors of the Borrower.
SECTION 3.03. Conditions Precedent to Each B Borrowing. The
obligation of each Lender which is to make a B Advance on the occasion of any B
Borrowing (including the initial B Borrowing) shall be subject to the further
conditions precedent that (i) at or before the time required by paragraph (iii)
of Section 2.19(a), the Agent shall have received the written confirmatory
notice of such B Borrowing contemplated by such paragraph, (ii) on or before
the date of such B Borrowing, but prior to such B Borrowing, the Agent shall
have received a B Note executed by the Borrower payable to the order of such
Lender for each of the one or more B Advances to be made by such Lender as part
of such B Borrowing, in a principal amount equal to the principal amount of the
B Advance to be evidenced thereby and otherwise on such terms as were agreed to
for such B Advance in accordance with Section 2.19, (iii) on or before the date
of such B Borrowing this Agreement shall have become effective pursuant to
Section 3.01, and (iv) on the date of such B Borrowing, before and immediately
after giving effect to such B Borrowing and to the application of the proceeds
therefrom, the following statements shall be true and correct, and the giving
by the Borrower of the applicable Notice of B Borrowing and the acceptance by
the Borrower of the proceeds of such B Borrowing shall constitute its
representation and warranty that on and as of the date of such B Borrowing,
before and immediately after giving effect thereto and to the application of
the proceeds therefrom, the following statements are true and correct:
(a) Each representation and warranty contained in Section
4.01 is correct in all material respects as though made on and as of
such date;
(b) No event has occurred and is continuing, or would
result from such B Borrowing, which constitutes an Event of Default or
would constitute an Event of Default but for the requirement that
notice be given or time elapse or both; and
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(c) The aggregate amount of the borrowings under this
Agreement (including, without limitation, such B Borrowing) and under
other agreements or facilities or evidenced by other instruments or
documents is not in excess of the aggregate amount of such borrowings
approved as of such date by the Board of Directors of the Borrower.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the
Borrower. The Borrower represents and warrants as follows:
(a) The Borrower is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of
Delaware. Each Material Subsidiary is duly incorporated, validly
existing and in good standing in the jurisdiction of its
incorporation. The Borrower and each Material Subsidiary possess all
corporate powers and all other authorizations and licenses necessary
to engage in its business and operations as now conducted, the failure
to obtain or maintain which would have a Material Adverse Effect.
Each Subsidiary which is, on and as of the date of this Agreement, a
Material Subsidiary is listed on Schedule II hereto.
(b) The execution, delivery and performance by the
Borrower of this Agreement and the Notes are within the Borrower's
corporate powers, have been duly authorized by all necessary corporate
action, and do not contravene (i) the Borrower's certificate of
incorporation or by-laws or (ii) law or any contractual restriction
binding on or affecting the Borrower.
(c) No authorization or approval or other action by, and
no notice to or filing with, any governmental authority or regulatory
body is required for the due execution, delivery and performance by
the Borrower of this Agreement or the Notes which has not been duly
made or obtained, except those (i) required in the ordinary course to
comply with ongoing covenant obligations of the Borrower hereunder the
performance of which is not yet due and (ii) that will, in the
ordinary course of business in accordance with this Agreement, be duly
made or obtained on or prior to the time or times the performance of
such obligations shall be due.
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(d) This Agreement constitutes, and the Notes when
delivered hereunder shall constitute, legal, valid and binding
obligations of the Borrower enforceable against the Borrower in
accordance with their respective terms, except as may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting creditors rights generally or by general
principles of equity.
(e) The consolidated balance sheet of the Borrower and
its consolidated Subsidiaries as at December 31, 1993 and the related
consolidated statements of income and cash flow for the fiscal year
then ended, reported on by Coopers & Lybrand, independent public
accountants, copies of which have been furnished to the Agent and the
Initial Lenders prior to the date hereof, fairly present the
consolidated financial condition of the Borrower and such Subsidiaries
as at such date and the consolidated results of their operations for
such fiscal period, all in accordance with generally accepted
accounting principles consistently applied. The consolidated balance
sheet of the Borrower and its consolidated Subsidiaries as at March
31, 1994 and the related consolidated statements of income and cash
flow for the three months then ended, copies of which have been
furnished to the Agent and the Initial Lenders prior to the date
hereof, fairly present the consolidated financial condition of the
Borrower and such Subsidiaries as at such date and the consolidated
results of their operations for such fiscal period, all in accordance
with generally accepted accounting principles consistently applied,
and since March 31, 1994 there has been no material adverse change in
such condition or operations.
(f) There is no action, suit or proceeding pending, or to
the knowledge of the Borrower threatened, against or involving the
Borrower or any Material Subsidiary in any court, or before any
arbitrator of any kind, or before or by any governmental body, which
in the reasonable judgment of the Borrower (taking into account the
exhaustion of all appeals) would have a material adverse effect on the
consolidated financial condition of the Borrower and its consolidated
Subsidiaries taken as a whole, or which purports to affect the
legality, validity, binding effect or enforceability of this Agreement
or the Notes.
(g) The Borrower and each consolidated Subsidiary have
duly filed all tax returns required to be filed, and
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duly paid and discharged all taxes, assessments and governmental
charges upon it or against its properties now due and payable, the
failure to file or pay which, as applicable, would have a Material
Adverse Effect, unless and to the extent only that the same are being
contested in good faith and by appropriate proceedings by the Borrower
or the appropriate Subsidiary.
(h) The Borrower and each Material Subsidiary have good
title to their respective properties and assets, free and clear of all
mortgages, liens and encumbrances, except for mortgages, liens and
encumbrances (including covenants, restrictions, rights, easements and
minor irregularities in title) which do not have a Material Adverse
Effect or which are permitted by Section 5.02(a), and except that no
representation or warranty is being made with respect to Margin Stock.
(i) Except to the extent permitted pursuant to Section
5.02(e), neither the Borrower nor any Material Subsidiary is subject
to any contractual restrictions which limit the amount of dividends
payable by any Subsidiary.
(j) No Termination Event has occurred or is reasonably
expected to occur with respect to any Plan which, with the giving of
notice or lapse of time, or both, would constitute an Event of Default
under Section 6.01(g).
(k) The statement of assets and liabilities of each Plan
and the statements of changes in fund balance and in financial
position, or the statement of changes in net assets available for plan
benefits, for the most recent plan year for which an accountant's
report with respect to such plan year has been prepared, copies of
which have been furnished to the Agent, fairly present the financial
condition of such Plan as at such date and the results of operations
of such Plan for the plan year ended on such date.
(l) Neither the Borrower nor any ERISA Affiliate has
incurred, or is reasonably expected to incur, any Withdrawal Liability
to any Multiemployer Plan which, when aggregated with all other
amounts required to be paid to Multiemployer Plans in connection with
Withdrawal Liability (as of the date of determination), exceeds
$50,000,000.
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(m) Neither the Borrower nor any ERISA Affiliate has
received any notification that any Multiemployer Plan is in
reorganization or has been terminated, within the meaning of Title IV
of ERISA, and no Multiemployer Plan is reasonably expected to be in
reorganization or to be terminated within the meaning of Title IV of
ERISA the effect of which reorganization or termination would be the
occurrence of an Event of Default under Section 6.01(i).
(n) The Borrower is not engaged in the business of
extending credit for the purpose of purchasing or carrying Margin
Stock, and no proceeds of any Advance will be used to extend credit to
others (other than to any Subsidiary of the Borrower) for the purpose
of purchasing or carrying Margin Stock.
(o) The Borrower is not an "investment company" or a
"company" controlled by an "investment company" within the meaning of
the Investment Company Act of 1940, as amended.
(p) The Borrower is not a "holding company" or a
"subsidiary company" of a "holding company", or an "affiliate" of a
"holding company" or of a "subsidiary company" of a "holding company",
or a "public utility" within the meaning of the Public Utility Holding
Company Act of 1935, as amended.
All representations and warranties made by the Borrower herein or made in any
certificate delivered pursuant hereto shall survive the making of the Advances
and the execution and delivery to the Lenders of this Agreement and the Notes.
ARTICLE V
COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants. So long as any Note or
other amount payable by the Borrower hereunder shall remain unpaid or any
Lender shall have any Commitment hereunder, the Borrower will, unless the
Majority Lenders shall otherwise consent in writing:
(a) Preservation of Corporate Existence, Etc. Preserve
and maintain, and cause each Material Subsidiary to preserve and
maintain, its corporate existence, rights (charter and statutory) and
material franchises, except as otherwise permitted by Section 5.02(c)
or 5.02(d).
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(b) Compliance with Laws, Etc. Comply, and cause each
Subsidiary to comply, in all material respects, with all applicable
laws, rules, regulations and orders (including, without limitation,
all environmental laws and laws requiring payment of all taxes,
assessments and governmental charges imposed upon it or upon its
property except to the extent contested in good faith by appropriate
proceedings) the failure to comply with which would have a Material
Adverse Effect.
(c) Visitation Rights. At such reasonable times and
intervals as the Agent or any of the Lenders (other than Designated
Bidders) may desire, permit the Agent or any of the Lenders (other
than Designated Bidders) to visit the Borrower and to discuss the
affairs, finances, accounts and mineral reserve performance of the
Borrower and any of its Subsidiaries with officers of the Borrower and
independent certified public accountants of the Borrower and any of
its Subsidiaries, provided that if an Event of Default, or an event
which with the giving of notice or the passage of time, or both, would
become an Event of Default, has occurred and is continuing, the Agent
or any Lender may, in addition to the other provisions of this
subsection (c) and at such reasonable times and intervals as the Agent
or any of the Lenders may desire, visit and inspect, under guidance of
officers of the Borrower, any properties significant to the
consolidated operations of the Borrower and its Subsidiaries, and to
examine the books and records of account (other than with respect to
any mineral reserve information that the Borrower determines to be
confidential) of the Borrower and any of its Subsidiaries and to
discuss the affairs, finances and accounts of any of the Borrower's
Subsidiaries with any of the officers of such Subsidiary.
(d) Books and Records. Keep, and cause each of its
Subsidiaries to keep, proper books of record and account, in which
full and correct entries shall be made of all financial transactions
and the assets and business of the Borrower and each Subsidiary in
accordance with generally accepted accounting principles either (i)
consistently applied or (ii) applied in a changed manner that does
not, under generally accepted accounting principles or public
reporting requirements applicable to the Borrower, either require
disclosure in the consolidated financial statements of the Borrower
and its consolidated Subsidiaries or require the consent of the
accountants which (as required by Section 5.03(b)) report on such
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financial statements for the fiscal year in which such change shall
have occurred, or (iii) applied in a changed manner not covered by
clause (ii) above provided such change shall have been disclosed to
the Agent and shall have been consented to by the accountants which
(as required by Section 5.03(b)) report on the consolidated financial
statements of the Borrower and its consolidated Subsidiaries for the
fiscal year in which such change shall have occurred, provided that if
any change referred to in clause (ii) or (iii) above would not meet
the standard set forth in clause (i) or (ii) of Section 1.03, the
Agent, the Lenders and the Borrower agree to amend the covenants
contained in Section 5.01 and 5.02 so that the relative protection
afforded thereby to the Lenders and the relative flexibility afforded
thereby to the Borrower will in substance be retained after such
amendment, provided, however, that until such amendment becomes
effective hereunder, the covenants as set forth herein shall remain in
full force and effect and those accounting principles applicable to
the Borrower and its consolidated Subsidiaries which do meet the
standards set forth in clause (i) or (ii) of Section 1.03 shall be
applied to determine whether or not the Borrower is in compliance with
such covenants.
(e) Maintenance of Properties, Etc. Maintain and
preserve, and cause each Material Subsidiary to maintain and preserve,
all of its properties which are used in the conduct of its business in
good working order and condition, ordinary wear and tear excepted, to
the extent that any failure to do so would have a Material Adverse
Effect.
(f) Maintenance of Insurance. Maintain, and cause each
Material Subsidiary to maintain, insurance with responsible and
reputable insurance companies or associations in such amounts and
covering such risks as is usually carried by companies engaged in
similar businesses and owning similar properties in the same general
areas in which the Borrower or such Subsidiary operates.
(g) Consolidated Tangible Net Worth. Maintain
Consolidated Tangible Net Worth of not less than $1,300,000,000 at all
times.
(h) Subsidiary Dividends. Cause each Subsidiary to pay
to the Borrower, or such Subsidiary's immediate parent company if such
parent company is not the
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Borrower, such dividends as such Subsidiary may legally pay (giving
due consideration to the rights of any minority shareholders) to the
extent necessary to provide the Borrower with funds for the payment of
its obligations under this Agreement and the Notes.
SECTION 5.02. Negative Covenants. So long as any Note or
other amount payable by the Borrower hereunder shall remain unpaid or any
Lender shall have any Commitment hereunder, the Borrower will not, unless the
Majority Lenders shall otherwise consent in writing:
(a) Liens, Etc. (i) Create, assume or suffer to exist,
or permit any Material Subsidiary to create, assume or suffer to
exist, any Liens upon or with respect to any of the capital stock of
any Material Subsidiary, whether now owned or hereafter acquired, or
(ii) create or assume, or permit any Material Subsidiary to create or
assume, any Liens upon or with respect to any other assets material to
the consolidated operations of the Borrower and its consolidated
Subsidiaries taken as a whole securing the payment of Debt and
Guaranties in an aggregate amount (determined without duplication of
amount (so that the amount of a Guaranty will be excluded to the
extent the Debt Guaranteed thereby is included in computing such
aggregate amount)) exceeding $200,000,000 at any one time; provided,
however, that this subsection (a) shall not apply to:
A. Liens on assets acquired by the Borrower or
any of its Subsidiaries after the date hereof to the extent
that such Liens existed at the time of such acquisition and
were not placed thereon by or with the consent of the Borrower
in contemplation of such acquisition;
B. Liens on stock acquired after the date hereof
of a corporation which has become or becomes a Subsidiary of
the Borrower, to the extent that such Liens existed at the
time of such acquisition and were not placed thereon by or
with the consent of the Borrower in contemplation of such
acquisition;
C. Liens on Margin Stock; and
D. Permitted Liens.
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(b) Debt, Etc. Create, assume or suffer to exist, or
permit any of its consolidated Subsidiaries to create, assume or
suffer to exist, any Debt, any Guaranty or, to the extent set forth in
clause (1) below, any reimbursement obligation with respect to any
letter of credit, unless, immediately after giving effect to such
Debt, Guaranty or reimbursement obligation and the receipt and
application of any proceeds thereof or value received in connection
therewith,
(1) the sum (without duplication) of (i)
consolidated Debt of the Borrower and its consolidated
Subsidiaries plus (ii) the aggregate amount (determined on a
consolidated basis) of Guaranties and of letters of credit
issued for the account of the Borrower and its consolidated
Subsidiaries is less than 52.5% of Capitalization, provided
that Debt for borrowed money either maturing within one year
and evidenced by instruments commonly known as commercial
paper, or evidenced by variable demand notes or other similar
short-term financing instruments issued to commercial banks
and trust companies (other than Debt incurred pursuant to this
Agreement or the Short-Term Revolving Credit Agreement or any
replacement therefor), shall not exceed the aggregate of the
Borrower's unused bank lines of credit and unused credit
available to the Borrower under financing arrangements with
banks; and
(2) with respect to any such Debt created,
assumed or suffered to exist by a consolidated Subsidiary that
is either a Subsidiary of the Borrower as of the date hereof
or a Subsidiary of the Borrower acquired or created after the
date hereof and owning a material portion of the consolidated
operating assets existing at the date hereof of the Borrower
and its Subsidiaries, the aggregate amount of Debt of the
consolidated Subsidiaries of the Borrower referred to above in
this paragraph (2) owing to Persons other than the Borrower
and its consolidated Subsidiaries is less than $400,000,000.
(c) Sale, Etc. of Assets. Sell, lease or otherwise
transfer, or permit any Material Subsidiary to sell, lease or
otherwise transfer (in either case, whether in one transaction or in a
series of transactions, and except, in either case, to the Borrower or
an entity
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which after giving effect to such transfer will be or become a
Material Subsidiary in which the Borrower's direct or indirect equity
interest will be at least as great as its direct or indirect equity
interest in the transferor immediately prior thereto, and except as
permitted by Section 5.02(d)), assets constituting a material portion
of the book value of the consolidated assets of the Borrower and its
Material Subsidiaries, provided that, notwithstanding the foregoing,
(i) assets restricted hereunder shall not include Margin Stock or
inventory sold in the ordinary course of business, (ii) the Borrower
or any Material Subsidiary may sell, lease or otherwise transfer the
assets or capital stock of any Subsidiary that is not a Material
Subsidiary as of the date of this Agreement, and (iii) the Borrower or
any Material Subsidiary may sell, lease or otherwise transfer any
Permitted Assets constituting a material portion of the consolidated
assets of the Borrower and its Material Subsidiaries, provided that,
for purposes of this clause (iii), (A) such Permitted Assets are sold,
leased or otherwise transferred in exchange for other Permitted Assets
and/or (B) the proceeds from such sale, lease or other transfer, or an
amount equal to the proceeds thereof, are (x) reinvested within one
year in Permitted Assets and/or the development of Permitted Assets
and/or (y) used to repay Debt the proceeds of which were or are being
used for investment in, and/or the development of, Permitted Assets;
provided further that, no such sale, lease or other transfer shall be
permitted by this clause (iii) unless either (1) after giving effect
to such sale, lease or other transfer, no Event of Default, and no
event which with lapse of time or the giving of notice, or both, would
constitute an Event of Default, shall have occurred and be continuing
or (2) the Borrower or the relevant Material Subsidiary, as the case
may be, was contractually obligated, prior to the occurrence of such
Event of Default or event, to consummate such sale, lease or other
transfer.
(d) Mergers, Etc. Merge or consolidate with any Person,
or permit any of its Material Subsidiaries to merge or consolidate
with any Person, except that (i) such a Subsidiary may merge or
consolidate with (or liquidate into) any other Subsidiary or may merge
or consolidate with (or liquidate into) the Borrower, provided that
(A) if such Material Subsidiary merges
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or consolidates with (or liquidates into) the Borrower, the Borrower
shall be the continuing or surviving corporation, (B) if any such
Material Subsidiary merges or consolidates with (or liquidates into)
any other Subsidiary of the Borrower, one of such Subsidiaries is the
surviving corporation and, if either such Subsidiary is not
wholly-owned by the Borrower, such merger or consolidation is on an
arm's length basis and (C) as a result of such merger or
consolidation, no Event of Default, and no event which with lapse of
time or the giving of notice, or both, would constitute an Event of
Default, shall have occurred and be continuing, and (ii) the Borrower
or any Material Subsidiary may merge or consolidate with any other
corporation (that is, in addition to the Borrower or any Subsidiary of
the Borrower), provided that (A) if the Borrower merges or
consolidates with any such other corporation, the Borrower is the
surviving corporation, (B) if any Material Subsidiary merges or
consolidates with any such other corporation, the surviving
corporation is a wholly-owned Material Subsidiary of the Borrower, and
(C) if either the Borrower or any Material Subsidiary merges or
consolidates with any such other corporation, after giving effect to
such merger or consolidation no Event of Default, and no event which
with lapse of time or the giving of notice, or both, would constitute
an Event of Default, shall have occurred and be continuing.
(e) Dividend Restrictions. Create, or consent or agree
to, or permit any of its Material Subsidiaries existing on the date
hereof or any of its Subsidiaries hereafter created or acquired and
owning a material portion of the consolidated operating assets
existing at the date hereof of the Borrower and its Subsidiaries, to
create, or consent or agree to, any restrictions, contained in any
agreement or instrument relating to or evidencing Debt, on any such
Subsidiary's ability to pay dividends or to make advances to the
Borrower or any Subsidiary of the Borrower; provided, however, that
this subsection (e) shall not apply to any such restrictions
(including any extensions of the term of any thereof) applicable to
the stock of any Subsidiary of the Borrower the stock of which shall
be hereafter acquired by the Borrower and which restrictions are
existing at the time such Subsidiary first becomes a Subsidiary of the
Borrower and are not placed thereon by or with the consent of the
Borrower in contemplation of such acquisition by the Borrower.
SECTION 5.03. Reporting Requirements. So long as any Note
shall remain unpaid or any Lender shall have any Commitment hereunder, the
Borrower will furnish to each Lender
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in such reasonable quantities as shall from time to time be requested by such
Lender:
(a) within 60 days after the end of each of the first
three quarters of each fiscal year of the Borrower, a consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as of
the end of such quarter, and consolidated statements of income and
cash flow of the Borrower and its consolidated Subsidiaries each for
the period commencing at the end of the previous fiscal year and
ending with the end of such quarter, certified (subject to normal
year-end adjustments) as to fairness and utilization of generally
accepted accounting principles by the chief financial officer of the
Borrower and accompanied by a certificate of such officer stating (i)
that such statements of income and cash flow and such balance sheet
have been prepared in accordance with generally accepted accounting
principles, (ii) whether or not such officer has knowledge of the
occurrence of any Event of Default which is continuing hereunder or of
any event not theretofore remedied which with notice or lapse of time
or both would constitute such an Event of Default and, if so, stating
in reasonable detail the facts with respect thereto, (iii) all
relevant facts in reasonable detail to evidence, and the computations
as to, whether or not the Borrower is in compliance with the
requirements set forth in subsection (g) of Section 5.01 and in
subsection (b) of Section 5.02, and (iv) a listing of all Material
Subsidiaries and consolidated Subsidiaries of the Borrower showing the
extent of its direct and indirect holdings of their stocks;
(b) within 120 days after the end of each fiscal year of
the Borrower, a copy of the annual report for such year for the
Borrower and its consolidated Subsidiaries containing financial
statements for such year reported on by nationally recognized
independent public accountants acceptable to the Lenders, accompanied
by (i) a report signed by said accountants stating that such financial
statements have been prepared in accordance with generally accepted
accounting principles and (ii) a letter from such accountants stating
that in making the investigations necessary for such report they
obtained no knowledge, except as specifically stated therein, of any
Event of Default which is continuing hereunder or of any event not
theretofore remedied which with notice or lapse of time or both would
constitute such an Event of Default;
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(c) within 120 days after the close of each of the
Borrower's fiscal years, a certificate of the chief financial officer
of the Borrower stating (i) whether or not such officer has knowledge
of the occurrence of any Event of Default which is continuing
hereunder or of any event not theretofore remedied which with notice
or lapse of time or both would constitute such an Event of Default
and, if so, stating in reasonable detail the facts with respect
thereto, (ii) all relevant facts in reasonable detail to evidence, and
the computations as to, whether or not the Borrower is in compliance
with the requirements set forth in subsection (g) of Section 5.01 and
in subsection (b) of Section 5.02 and (iii) a listing of all Material
Subsidiaries and consolidated Subsidiaries of the Borrower showing the
extent of its direct and indirect holdings of their stocks;
(d) promptly upon their distribution, copies of all
financial statements, reports and proxy statements which the Borrower
or any Material Subsidiary shall have sent to its public stockholders;
(e) promptly upon their becoming publicly available, all
regular and periodic financial reports and registration statements
which the Borrower or any Material Subsidiary shall file with the
Securities and Exchange Commission or any national securities exchange
other than registration statements relating to employee benefit plans
and to registration statements of securities for selling security
holders;
(f) promptly in writing, notice of all litigation and of
all proceedings before any governmental or regulatory agencies against
or involving the Borrower or any Material Subsidiary, except any
litigation or proceeding which in the reasonable judgment of the
Borrower (taking into account the exhaustion of all appeals) is not
likely to have a material adverse effect on the consolidated financial
condition of the Borrower and its consolidated Subsidiaries taken as a
whole;
(g) within three Business Days after an executive officer
of the Borrower obtains knowledge of the occurrence of any Event of
Default which is continuing or of any event not theretofore remedied
which with notice or lapse of time, or both, would constitute an Event
of Default, notice of such occurrence together with a detailed
statement by a responsible officer of the Borrower of the steps being
taken by the Borrower or the appropriate Subsidiary to cure the effect
of such event;
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(h) as soon as practicable and in any event (i) within 30
days after the Borrower or any ERISA Affiliate knows or has reason to
know that any Termination Event described in clause (i) of the
definition of Termination Event with respect to any Plan has occurred
and (ii) within 10 days after the Borrower or any ERISA Affiliate
knows or has reason to know that any other Termination Event with
respect to any Plan has occurred, a statement of the chief financial
officer of the Borrower describing such Termination Event and the
action, if any, which the Borrower or such ERISA Affiliate proposes to
take with respect thereto;
(i) promptly and in any event within two Business Days
after receipt thereof by the Borrower or any ERISA Affiliate, copies
of each notice received by the Borrower or any ERISA Affiliate from
the PBGC stating its intention to terminate any Plan or to have a
trustee appointed to administer any Plan;
(j) promptly and in any event within 30 days after the
filing thereof with the Internal Revenue Service, copies of each
Schedule B (Actuarial Information) to the annual report (Form 5500
Series) with respect to each Plan;
(k) promptly and in any event within five Business Days
after receipt thereof by the Borrower or any ERISA Affiliate from the
sponsor of a Multiemployer Plan, a copy of each notice received by the
Borrower or any ERISA Affiliate concerning (i) the imposition of
Withdrawal Liability by a Multiemployer Plan, (ii) the determination
that a Multiemployer Plan is, or is expected to be, in reorganization
within the meaning of Title IV of ERISA, (iii) the termination of a
Multiemployer Plan within the meaning of Title IV of ERISA, or (iv)
the amount of liability incurred, or expected to be incurred, by the
Borrower or any ERISA Affiliate in connection with any event described
in clause (i), (ii) or (iii) above; and
(l) as soon as practicable but in any event within 60
days of any notice of request therefor, such other information
respecting the financial condition and results of operations of the
Borrower or any Subsidiary as any Lender through the Agent may from
time to time reasonably request.
Each balance sheet and other financial statement furnished
pursuant to subsections (a) and (b) of this Section 5.03 shall contain
comparative information which conforms to
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the presentation required in Form 10-Q and Form 10-K, as appropriate, under the
Securities Exchange Act of 1934, as amended.
ARTICLE VI
EVENTS OF DEFAULT
SECTION 6.01. Events of Default. If any of the following
events ("Events of Default") shall occur and be continuing:
(a) The Borrower shall fail to pay any principal of any
Note when due, or any interest on any Note or any other amount payable
hereunder within five Business Days after the same shall be due; or
(b) Any representation or warranty made or deemed made by
the Borrower herein or by the Borrower (or any of its officers) in
connection with this Agreement shall prove to have been incorrect in
any material respect when made or deemed made; or
(c) The Borrower shall fail to perform or observe any
other term, covenant or agreement contained in this Agreement on its
part to be performed or observed and any such failure shall remain
unremedied for 30 days after written notice thereof shall have been
given to the Borrower by the Agent or by any Lender with a copy to the
Agent; or
(d) The Borrower or any Material Subsidiary shall fail to
pay any Debt or Guaranty (excluding Debt evidenced by the Notes) of
the Borrower or such Subsidiary (as the case may be) in an aggregate
principal amount of $50,000,000 or more, or any installment of
principal thereof or interest or premium thereon, when due (whether by
scheduled maturity, required prepayment, acceleration, demand or
otherwise) and such failure shall continue after the applicable grace
period, if any, specified in the agreement or instrument relating to
such Debt or Guaranty; or any other default under any agreement or
instrument relating to any such Debt, or any other event, shall occur
and shall continue after the applicable grace period, if any,
specified in such agreement or instrument, if the effect of such
default or event is to accelerate, or to permit the acceleration of,
the maturity of such Debt; provided that, notwithstanding any
provision contained in this subsection (d) to the contrary, to the
extent that pursuant to the terms of any
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agreement or instrument relating to any Debt referred to in this
subsection (d), any sale, pledge or disposal of Margin Stock, or
utilization of the proceeds thereof would result in a breach of any
covenant contained therein or otherwise give rise to a default or
event of default thereunder and/or acceleration of the maturity of the
Debt extended pursuant thereto and as a result of such terms or of
such sale, pledge, disposal, utilization, breach, default, event of
default or acceleration, or the provisions hereof relating thereto,
this Agreement or any Advance hereunder would otherwise be subject to
the margin requirements or any other restriction under Regulation U
issued by the Board of Governors of the Federal Reserve System, then
such breach, default, event of default or acceleration shall not
constitute a default or Event of Default under this subsection (d); or
(e) (i) The Borrower or any Material Subsidiary shall (A)
generally not pay its debts as such debts become due; or (B) admit in
writing its inability to pay its debts generally; or (C) make a
general assignment for the benefit of creditors; or (ii) any
proceeding shall be instituted or consented to by the Borrower or any
such Subsidiary seeking to adjudicate it a bankrupt or insolvent, or
seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or
relief of debtors, or seeking the entry of an order for relief or the
appointment of a receiver, trustee, or other similar official for it
or for any substantial part of its property; or (iii) any such
proceeding shall have been instituted against the Borrower or any such
Subsidiary and either such proceeding shall not be stayed or dismissed
for 60 consecutive days or any of the actions referred to above sought
in such proceeding (including, without limitation, the entry of an
order for relief against it or the appointment of a receiver, trustee,
custodian or other similar official for it or any substantial part of
its property) shall occur; or (iv) the Borrower or any such Subsidiary
shall take any corporate action to authorize any of the actions set
forth above in this subsection (e); or
(f) Any judgment or order for the payment of money in
excess of $50,000,000 shall be rendered against the Borrower or any
Material Subsidiary and either (i) enforcement proceedings shall have
been commenced by any creditor upon such judgment or order (other than
any
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enforcement proceedings consisting of the mere obtaining and filing of
a judgment lien or obtaining of a garnishment or similar order so long
as no foreclosure, levy or similar process in respect of such lien, or
payment over in respect of such garnishment or similar order, has
commenced) or (ii) there shall be any period of 30 consecutive days
during which a stay of execution or enforcement proceedings (other
than those referred to in the parenthesis in clause (i) above) in
respect of such judgment or order, by reason of a pending appeal,
bonding or otherwise, shall not be in effect; or
(g) Any Termination Event with respect to a Material Plan
shall have occurred and, 30 days after notice thereof shall have been
given to the Borrower by the Lender, (i) such Termination Event shall
still exist and (ii) the sum (determined as of the date of occurrence
of such Termination Event) of the Insufficiency of such Plan and the
Insufficiency of any and all other Plans with respect to which a
Termination Event shall have occurred and then exist (or in the case
of a Plan with respect to which a Termination Event described in
clause (ii) of the definition of Termination Event shall have occurred
and then exist, the liability related thereto), in each case in
respect of which the Borrower or any ERISA Affiliate has liability, is
equal to or greater than $50,000,000; or
(h) The Borrower or any ERISA Affiliate shall have been
notified by the sponsor of a Multiemployer Plan that it has incurred
Withdrawal Liability to such Multiemployer Plan in an amount which,
when aggregated with all other amounts required to be paid to
Multiemployer Plans in connection with Withdrawal Liabilities
(determined as of the date of such notification), exceeds $50,000,000;
or
(i) The Borrower or any ERISA Affiliate shall have been
notified by the sponsor of a Multiemployer Plan that such
Multiemployer Plan is in reorganization or is being terminated,
within the meaning of Title IV of ERISA, if as a result of such
reorganization or termination the aggregate annual contributions of
the Borrower and its ERISA Affiliates to all Multiemployer Plans which
are then in reorganization or being terminated have been or will be
increased over the amounts contributed to such Multiemployer Plans for
the respective plan years which include the date hereof by an amount
exceeding $50,000,000; or
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(j) Upon completion of, and pursuant to, a transaction,
or a series of transactions (which may include prior acquisitions of
capital stock of the Borrower in the open market or otherwise),
involving a tender offer (i) a "person" (within the meaning of Section
13(d) of the Securities Exchange Act of 1934) other than the Borrower,
a Subsidiary of the Borrower or any employee benefit plan maintained
for employees of the Borrower and/or any of its Subsidiaries or the
trustee therefor, shall have acquired direct or indirect ownership of
and paid for in excess of 50% of the outstanding capital stock of the
Borrower entitled to vote in elections for directors of the Borrower
and (ii) at any time before the later of (x) six months after the
completion of such tender offer and (y) the next annual meeting of the
shareholders of the Borrower following the completion of such tender
offer more than half of the directors of the Borrower consists of
individuals who (a) were not directors before the completion of such
tender offer and (b) were not appointed, elected or nominated by the
Board of Directors in office prior to the completion of such tender
offer (other than any such appointment, election or nomination
required or agreed to in connection with, or as a result of, the
completion of such tender offer); or
(k) Any "Event of Default" as defined in the Short-Term
Revolving Credit Agreement shall occur and be continuing;
then, and in any such event, the Agent shall at the request, or may with the
consent, of the Majority Lenders, by notice to the Borrower, (i) declare the
obligation of each Lender to make Advances to be terminated, whereupon the same
shall forthwith terminate, and (ii) declare the Notes, all interest thereon and
all other amounts payable under this Agreement to be forthwith due and payable,
whereupon the Notes, all such interest and all such amounts shall become and be
forthwith due and payable, without presentment, demand, protest or further
notice of any kind, all of which are hereby expressly waived by the Borrower;
provided, however, that if an Event of Default under subsection (e) of this
Section 6.01 (except under clause (i)(A) thereof) shall occur, (A) the
obligation of each Lender to make Advances shall automatically be terminated
and (B) the Notes, all interest thereon and all other amounts payable under
this Agreement shall automatically become and be forthwith due and payable,
without presentment, demand, protest or any notice of any kind, all of which
are hereby expressly waived by the Borrower.
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ARTICLE VII
THE AGENT
SECTION 7.01. Authorization and Action. Each Lender hereby
appoints and authorizes the Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement as are delegated to the Agent
by the terms hereof, together with such powers as are reasonably incidental
thereto. As to any matters not expressly provided for by this Agreement
(including, without limitation, enforcement of this Agreement or collection of
the Notes), the Agent shall not be required to exercise any discretion or take
any action, but shall be required to act or to refrain from acting (and shall
be fully protected in so acting or refraining from acting) upon the
instructions of the Majority Lenders, and such instructions shall be binding
upon all Lenders and all holders of Notes; provided, however, that the Agent
shall not be required to take any action which exposes the Agent to personal
liability or which is contrary to this Agreement or applicable law. The Agent
agrees to give to each Lender prompt notice of each notice given to it by the
Borrower pursuant to the terms of this Agreement.
SECTION 7.02. Agent's Reliance, Etc. Neither the Agent nor
any of its directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
this Agreement, except for its or their own gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, the Agent:
(i) may treat the payee of any Note as the holder thereof until the Agent
receives and accepts an Assignment and Acceptance entered into by the Lender
which is the payee of such Note, as assignor, and an Eligible Assignee, as
assignee, as provided in Section 8.07; (ii) may consult with legal counsel
(including counsel for the Borrower), independent public accountants and other
experts selected by it and shall not be liable for any action taken or omitted
to be taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (iii) makes no warranty or representation to any
Lender and shall not be responsible to any Lender for any statements,
warranties or representations (whether written or oral) made in or in
connection with this Agreement; (iv) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement on the part of the Borrower or to inspect the
property (including the books and records) of the Borrower; (v) shall not be
responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any
other instrument or document furnished
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pursuant hereto; and (vi) shall incur no liability under or in respect of this
Agreement by acting upon any notice, consent, certificate or other instrument
or writing (which may be by telegram, telecopy, cable or telex) believed by it
to be genuine and signed or sent by the proper party or parties.
SECTION 7.03. Citibank and Affiliates. With respect to its
Commitments, the Advances made by it and the Notes issued to it, Citibank shall
have the same rights and powers under this Agreement as any other Lender and
may exercise the same as though it were not the Agent; and the term "Lender" or
"Lenders" shall, unless otherwise expressly indicated, include Citibank in its
individual capacity. Citibank and its affiliates may accept deposits from,
lend money to, act as trustee under indentures of, and generally engage in any
kind of business with, the Borrower, any of its Subsidiaries and any Person who
may do business with or own securities of the Borrower or any Subsidiary, all
as if Citibank were not the Agent and without any duty to account therefor to
the other Lenders.
SECTION 7.04. Lender Credit Decision. Each Lender
acknowledges that it has, independently and without reliance upon the Agent or
any other Lender and based on the financial statements referred to in Section
4.01 and such other documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon
the Agent or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under this Agreement.
SECTION 7.05. Indemnification. The Lenders (other than the
Designated Bidders) agree to indemnify the Agent (to the extent not reimbursed
by the Borrower), ratably according to the respective principal amounts of the
A Notes then held by each of them (or if no A Notes are at the time outstanding
or if any A Notes are held by Persons which are not Lenders, ratably according
to the respective amounts of their Commitments or the respective amounts of
their Commitments immediately prior to termination if the Commitments have been
terminated), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against the Agent in any way relating to or arising out of this
Agreement or any action taken or omitted by the Agent under this Agreement,
provided that no Lender shall be liable for any portion of such liabilities,
obligations, losses,
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damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Agent's gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender (other than the Designated Bidders)
agrees to reimburse the Agent promptly upon demand for its ratable share of any
reasonable out-of-pocket expenses (including counsel fees) incurred by the
Agent in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings, in bankruptcy or insolvency proceedings, or otherwise) of, or
legal advice in respect of rights or responsibilities under, this Agreement, to
the extent that the Agent acts in its capacity as Agent and is not reimbursed
for such expenses by the Borrower.
SECTION 7.06. Successor Agent. The Agent may resign at any
time by giving written notice thereof to the Lenders and the Borrower and may
be removed at any time with or without cause by the Majority Lenders. Upon any
such resignation or removal, the Majority Lenders shall have the right to
appoint a successor Agent. If no successor Agent shall have been so appointed
by the Majority Lenders, and shall have accepted such appointment, within 30
days after the retiring Agent's giving of notice of resignation or the Majority
Lenders' removal of the retiring Agent, then such retiring Agent may, on behalf
of the Lenders, appoint a successor Agent, which shall be a commercial bank
organized, or authorized to conduct a banking business, under the laws of the
United States of America or of any State thereof and having a combined capital
and surplus of at least $500,000,000. Upon the acceptance of any appointment
as Agent hereunder by a successor Agent, such successor Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations under this Agreement. After any retiring Agent's
resignation or removal hereunder as Agent, the provisions of this Article VII
shall inure to its benefit as to any actions taken or omitted to be taken by
it while it was Agent under this Agreement.
ARTICLE VIII
MISCELLANEOUS
SECTION 8.01. Amendments, Etc. An amendment or waiver of any
provision of this Agreement or the A Notes, or a consent to any departure by
the Borrower therefrom, shall be effective against the Lenders and all holders
of the Notes if, but only if, it shall be in writing and signed by the Majority
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Lenders, and then such a waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall, unless in writing and
signed by all the Lenders (other than the Designated Bidders), be effective to:
(a) waive any of the conditions specified in Article III, (b) except as
contemplated by Section 2.20, increase the Commitments of the Lenders or
subject the Lenders to any additional obligations, (c) reduce the principal of,
or interest on, the A Notes or any facility fees or utilization fees hereunder,
(d) postpone any date fixed for any payment of principal of, or interest on,
the A Notes or any facility fees or utilization fees hereunder, (e) change the
percentage of the Commitments or of the aggregate unpaid principal amount of
the A Notes, which shall be required for the Lenders or any of them to take any
action under this Agreement, or (f) amend this Section 8.01; and, provided
further that no amendment, waiver or consent shall, unless in writing and
signed by the Agent in addition to the Lenders required hereinabove to take
such action, affect the rights or duties of the Agent under this Agreement or
any Note.
SECTION 8.02. Notices, Etc. Except as otherwise provided in
Section 2.02(a) or 2.10(ii), all notices and other communications provided for
hereunder shall be in writing and mailed by certified mail, return receipt
requested and postage prepaid, or telecopied, telefaxed or otherwise
teletransmitted, or delivered, if to the Borrower, at 5051 Westheimer, Suite
1400, Houston, Texas 77056, Attention: Treasurer, Telefax: (713) 624-9621; if
to any Initial Lender, at its Domestic Lending Office set forth opposite its
name on Schedule I hereto; if to any other Lender at its Domestic Lending
Office specified in the Assignment and Acceptance or Increase Agreement
pursuant to which it became a Lender or at the address for notices specified in
the Designation Agreement pursuant to which it became a party hereto; and if to
the Agent, in care of Citicorp North America, Inc., at 1200 Smith Street, Suite
2000, Houston, Texas 77002, Attention: Burlington Resources Inc., Account
Officer, Telefax: (713) 654-2849; or, as to each party, at such other address
as shall be designated by such party in a written notice to the other parties.
All such notices and communications shall be effective, (a) in the case of any
notice or communication given by certified mail, when receipted for, (b) in the
case of any notice or communication given by telecopy, telefax or other
teletransmission, when confirmed by appropriate answerback, in each case
addressed as aforesaid, and (c) in the case of any notice or communication
delivered by hand or courier, when so delivered, except that notices and
communications to the Agent pursuant to Article II or VII
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shall not be effective until received by the Agent. A notice received by the
Agent or a Lender by telephone pursuant to Section 2.02(a) or 2.10(ii) shall be
effective if the Agent or Lender believes in good faith that it was given by an
authorized representative of the Borrower and acts pursuant thereto,
notwithstanding the absence of written confirmation or any contradictory
provision thereof.
SECTION 8.03. No Waiver; Remedies. No failure on the part of
any Lender or the Agent to exercise, and no delay in exercising, any right
hereunder or under any Note shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder or under any Note preclude
any other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.
SECTION 8.04. Costs and Expenses; Indemnity.
(a) The Borrower agrees to pay on demand (i) all reasonable
fees and out-of-pocket expenses of counsel for the Agent in connection with the
preparation, execution and delivery of this Agreement, the Notes and the other
documents to be delivered hereunder and with respect to advising the Agent as
to its rights and responsibilities under this Agreement, (ii) all reasonable
costs and expenses incurred by the Agent and its Affiliates in initially
syndicating all or any portion of the Commitments hereunder, including, without
limitation, the related reasonable fees and out-of-pocket expenses of counsel
for the Agent or its Affiliates, travel expenses, duplication and printing
costs and courier and postage fees, and excluding any syndication fees paid to
other parties joining the syndicate and (iii) all out-of-pocket costs and
expenses, if any, of the Agent and the Lenders (including reasonable counsel
fees and expenses), in connection with the enforcement (whether through
negotiations, legal proceedings, in bankruptcy or insolvency proceedings, or
otherwise) of this Agreement, the Notes and the other documents to be delivered
hereunder and thereunder.
(b) If any payment of principal of, or Conversion of, any
Eurodollar Rate Advance is made by the Borrower to or for the account of a
Lender on any day other than the last day of the Interest Period for such
Advance, as a result of a prepayment pursuant to Section 2.10 or a Conversion
pursuant to Section 2.08(f) or Section 2.09 or due to acceleration of the
maturity of the Notes pursuant to Section 6.01 or due to any other reason
attributable to the Borrower, the Borrower shall, upon demand by such Lender
(with a copy of such demand to the Agent), pay to the Agent for the account of
such Lender
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any amounts required to compensate such Lender for any additional losses, costs
or expenses which it may reasonably incur as a result of such payment or
Conversion, including, without limitation, any loss (excluding loss of
anticipated profits), cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by any Lender to fund or
maintain such Advance.
(c) The Borrower agrees to indemnify and hold harmless
the Agent, the Arranger and each Lender from and against any and all claims,
damages, liabilities and expenses (including, without limitation, fees and
disbursements of counsel) which may be incurred by or asserted against the
Agent, the Arranger or such Lender in connection with or arising out of any
investigation, litigation, or proceeding (whether or not the Agent, the
Arranger or such Lender is party thereto) related to any acquisition or
proposed acquisition by the Borrower, or by any Subsidiary of the Borrower, of
all or any portion of the stock or substantially all the assets of any Person
or any use or proposed use of the Advances by the Borrower (excluding any
claims, damages, liabilities or expenses incurred by reason of the gross
negligence or willful misconduct of the party to be indemnified or its
employees or agents, or by reason of any use or disclosure of information
relating to any such acquisition or use or proposed use of the proceeds by the
party to be indemnified or its employees or agents).
SECTION 8.05. Right of Set-off. Upon the declaration of the
Notes as due and payable pursuant to the provisions of Section 6.01, each
Lender is hereby authorized at any time and from time to time, to the fullest
extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Lender to or for the credit or the
account of the Borrower against any and all of the obligations of the Borrower
now or hereafter existing under this Agreement and any Note held by such
Lender, irrespective of whether or not such Lender shall have made any demand
under this Agreement or such Note and although such obligations may be
unmatured. Each Lender agrees promptly to notify the Borrower after any such
set-off and application made by such Lender, provided that the failure to give
such notice shall not affect the validity of such set-off and application. The
rights of each Lender under this Section 8.05 are in addition to other rights
and remedies (including, without limitation, other rights of set-off) which
such Lender may have.
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SECTION 8.06. Binding Effect. This Agreement shall become
effective in accordance with the provisions of Section 3.01, and thereafter
shall be binding upon and inure to the benefit of the Borrower, the Agent, the
Arranger and each Lender and their respective successors and assigns, except
that the Borrower shall not have the right to assign its rights hereunder or
any interest herein without the prior written consent of all of the Lenders.
SECTION 8.07. Assignments and Participations.
(a) Each Lender (other than a Designated Bidder) may
assign to one or more banks or other financial institutions all or a portion of
its rights and obligations under this Agreement (including, without limitation,
all or a portion of its Commitment, the A Advances owing to it and the A Note
or A Notes held by it); provided, however, that (i) each such assignment shall
be of a constant, and not a varying, percentage of all rights and obligations
under this Agreement (other than any right to make B Advances, any B Advances
or any B Notes), and the same constant percentage of all rights and obligations
of such assigning Lender under the Short-Term Revolving Credit Agreement,
unless the Short-Term Revolving Credit Agreement has been terminated, shall be
contemporaneously assigned by such assigning Lender to the same assignee
pursuant to Section 8.07(a) of the Short-Term Revolving Credit Agreement, (ii)
the sum of (x) the amount of the Commitment of the assigning Lender being
assigned to the assignee pursuant to each such assignment (determined as of the
date of the Assignment and Acceptance with respect to such assignment) plus (y)
the amount of the "Commitment" of the assigning Lender under the Short-Term
Revolving Credit Agreement contemporaneously assigned by such assigning Lender
to such assignee as contemplated by clause (i) of this sentence must be equal
to or greater than $25,000,000 and must be an integral multiple of $1,000,000,
(iii) each such assignment shall be to an Eligible Assignee, and (iv) the
parties to each such assignment shall execute and deliver to the Agent, for its
acceptance and recording in the Register, an Assignment and Acceptance,
together with any A Note or A Notes subject to such assignment and a processing
and recordation fee of $3,000, and shall send to the Borrower an executed
counterpart of such Assignment and Acceptance. Upon such execution, delivery,
acceptance and recording, from and after the effective date specified in each
Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto
and, to the extent that rights and obligations hereunder have been assigned to
it pursuant to such Assignment and Acceptance, have the rights and obligations
of a Lender hereunder and (y) the Lender assignor thereunder shall, to the
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extent that rights and obligations hereunder have been assigned by it pursuant
to such Assignment and Acceptance, relinquish its rights and be released from
its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto, provided, however, such assigning Lender shall retain any claim
with respect to any fee, interest, cost, expense or indemnity which accrues, or
relates to an event that occurs, prior to the date of such assignment pursuant
to Section 2.03, 2.06, 2.07, 2.11, 2.12, 2.15 or 8.04).
(b) By executing and delivering an Assignment and
Acceptance, each Lender assignor thereunder and the assignee thereunder confirm
to and agree with each other and the other parties hereto as follows: (i)
other than as provided in such Assignment and Acceptance, such assigning Lender
makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
this Agreement or the execution, legality, validity , enforceability,
genuineness, sufficiency or value of this Agreement or any other instrument or
document furnished pursuant hereto; (ii) such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower or the performance or observance by the
Borrower of any of its obligations under this Agreement or any other instrument
or document furnished pursuant hereto; (iii) such assignee confirms that it has
received a copy of this Agreement, together with copies of the financial
statements referred to in Section 4.01 and such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to
enter into such Assignment and Acceptance; (iv) such assignee will,
independently and without reliance upon the Agent, such assigning Lender or any
other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement; (v) such assignee confirms that it is
(subject to approval in writing by the Borrower and the Agent) an Eligible
Assignee; (vi) such assignee appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers under this Agreement
as are delegated to the Agent by the terms hereof, together with such powers as
are reasonably incidental thereto; and (vii) such assignee agrees that it will
perform in accordance with their terms all of the obligations which by the
terms of this Agreement are required to be performed by it as a Lender.
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(c) The Agent shall maintain at its address referred to
in Section 8.02 a copy of each Assignment and Acceptance, each Designation
Agreement and each Increase Agreement delivered to and accepted by it and a
register for the recordation of the names and addresses of the Lenders and,
with respect to Lenders other than Designated Bidders, the Commitment of, and
principal amount of the A Advances owing to, each Lender from time to time (the
"Register"). The entries in the Register shall be conclusive and binding for
all purposes, absent manifest error, and the Borrower, the Agent and the
Lenders may treat each Person whose name is recorded in the Register as a
Lender hereunder for all purposes of this Agreement. The Register shall be
available for inspection by the Borrower or any Lender at any reasonable time
and from time to time upon reasonable prior notice.
(d) Upon its receipt of an Assignment and Acceptance
executed by an assigning Lender and an assignee representing that it is an
Eligible Assignee, together with any A Note or A Notes subject to such
assignment, the Agent shall, if such Assignment and Acceptance has been
completed and is in substantially the form of Exhibit E hereto, (i) accept such
Assignment and Acceptance, (ii) record the information contained therein in the
Register and (iii) give prompt notice thereof to the Borrower. Within five
Business Days after its receipt of such notice and its receipt of an executed
counterpart of such Assignment and Acceptance, the Borrower, at its own
expense, shall execute and deliver to the Agent in exchange for the surrendered
A Note or A Notes a new A Note to the order of such Eligible Assignee in an
amount equal to the Commitment assumed by it pursuant to such Assignment and
Acceptance and, if the assigning Lender has retained a Commitment hereunder, a
new A Note to the order of the assigning Lender in an amount equal to the
Commitment retained by it hereunder. Such new A Note or A Notes shall be in an
aggregate principal amount equal to the aggregate principal amount of such
surrendered A Note or A Notes, shall be dated the effective date of such
Assignment and Acceptance and shall otherwise be in substantially the form of
Exhibit A hereto.
(e) Each Lender (other than a Designated Bidder) may
designate one or more banks or other entities to have a right to make B
Advances as a Lender pursuant to Section 2.19; provided that (i) such Lender
shall have obtained the written consent of the Agent and the Borrower, such
consent not to be unreasonably withheld, (ii) no such Lender shall be entitled
to make more than two such designations, (iii) each such Lender making one or
more of such designations shall retain the right to make B Advances as a Lender
pursuant to Section
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2.19, (iv) each such designation shall be to a Designated Bidder and (v) the
parties to each such designation shall execute and deliver to the Agent, for
its acceptance and recording in the Register, a Designation Agreement. Upon
such execution, delivery, acceptance and recording, from and after the
effective date specified in each Designation Agreement, the designee thereunder
shall be a party hereto with a right to make B Advances as a Lender pursuant to
Section 2.19 and the obligations related thereto.
(f) By executing and delivering a Designation Agreement,
the Lender making the designation thereunder and its designee thereunder
confirm and agree with each other and the other parties hereto as follows: (i)
such Lender makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties or representations made in or in
connection with this Agreement or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any
other instrument or document furnished pursuant hereto, (ii) such Lender makes
no representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower or the performance or observance by the
Borrower of any of its obligations under this Agreement or any other instrument
or document furnished pursuant hereto; (iii) such designee confirms that it has
received a copy of this Agreement, together with copies of the financial
statements referred to in Section 4.01 and such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to
enter into the Designation Agreement; (iv) such designee will, independently
and without reliance upon the Agent, such designating Lender or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement; (v) such designee confirms that it is a Designated
Bidder; (vi) such designee appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers under this Agreement
as are delegated to the Agent by the terms hereof, together with such powers as
are reasonably incidental thereto, and (vii) such designee agrees that it will
perform in accordance with their terms all of the obligations which by the
terms of this Agreement are required to be performed by it as a Lender.
(g) Upon its receipt of a Designation Agreement executed
by a designating Lender and a designee representing that it is a Designated
Bidder, the Agent shall, if such Designation Agreement has been completed and
is substantially in the form of Exhibit K hereto, (i) accept such Designation
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Agreement, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Borrower.
(h) Each Lender may sell participations to one or more
banks or other entities in or to all or a portion of its rights and obligations
under this Agreement (including, without limitation, all or a portion of its
Commitment, and the Advances owing to it and the Note or Notes held by it);
provided, however, that (i) such Lender's obligations under this Agreement
(including, without limitation, its Commitment to the Borrower hereunder) shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) such Lender shall
remain the holder of any such Note for all purposes of this Agreement, (iv) the
Borrower, the Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement, (v) such Lender shall continue to be able to
agree to any modification or amendment of this Agreement or any waiver
hereunder without the consent, approval or vote of any such participant or
group of participants, other than modifications, amendments and waivers which
(A) postpone any date fixed for any payment of, or reduce any payment of,
principal of or interest on such Lender's Note or any facility fees or
utilization fees payable under this Agreement, or (B) increase the amount of
such Lender's Commitment in a manner which would have the effect of increasing
the amount of a participant's participation, or (C) reduce the interest rate
payable under this Agreement and such Lender's Note, or (D) consent to the
assignment or the transfer by the Borrower of any of its rights and obligations
under the Agreement, and (vi) except as contemplated by the immediately
preceding clause (v), no participant shall be deemed to be or to have any of
the rights or obligations of a "Lender" hereunder.
(i) Any Lender may, in connection with any assignment,
designation or participation or proposed assignment, designation or
participation pursuant to this Section 8.07, disclose to the assignee, designee
or participant or proposed assignee, designee or participant, any information
relating to the Borrower furnished to such Lender by or on behalf of the
Borrower; provided that, prior to any such disclosure, the assignee, designee
or participant or proposed assignee, designee or participant shall agree in
writing for the benefit of the Borrower to preserve the confidentiality of any
confidential information relating to the Borrower received by it from such
Lender in a manner consistent with Section 8.08.
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(j) Anything in this Agreement to the contrary
notwithstanding, any Lender may at any time create a security interest in all
or any portion of its rights under this Agreement (including, without
limitation, the Advances owing to it) and the Notes issued to it hereunder in
favor of any Federal Reserve Bank in accordance with Regulation A of the Board
of Governors of the Federal Reserve System (or any successor regulation) and
the applicable operating circular of such Federal Reserve Bank.
(k) Each Lender may assign to one or more Eligible
Assignees any B Note or B Notes held by it.
SECTION 8.08. Confidentiality. Each Lender and the Agent
(each, a "party") agrees that it will use its best reasonable efforts not to
disclose, without the prior consent of the Borrower (other than to its, or its
Affiliate's, employees, auditors, accountants, counsel or other
representatives, whether existing at the date of this Agreement or any
subsequent time), any information with respect to the Borrower which is
furnished pursuant to this Agreement, provided that any party may disclose any
such information (i) as has become generally available to the public, (ii) as
may be required or appropriate in any report, statement or testimony submitted
to any municipal, state or Federal regulatory body having or claiming to have
jurisdiction over such party or to the Board of Governors of the Federal
Reserve System or the Federal Deposit Insurance Corporation or similar
organizations (whether in the United States or elsewhere) or their successors,
(iii) as may be required or appropriate in response to any summons or subpoena
or in connection with any litigation or regulatory proceeding, (iv) in order to
comply with any law, order, regulation or ruling applicable to such party, or
(v) to any prospective assignee, designee or participant in connection with any
contemplated assignment of any rights or obligations hereunder, any designation
or any sale of any participation therein, by such party pursuant to Section
8.07, if such prospective assignee, designee or participant, as the case may
be, executes an agreement with the Borrower containing provisions substantially
similar to those contained in this Section 8.08; provided, however, that the
Borrower acknowledges that the Agent has disclosed and may continue to disclose
such information as the Agent in its sole discretion determines is appropriate
to the Lenders from time to time.
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SECTION 8.09. Consent to Jurisdiction.
(a) The Borrower hereby irrevocably submits to the
jurisdiction of any New York State or Federal court sitting in New York City
and any appellate court from any thereof in any action or proceeding by the
Agent, the Arranger, any Lender or the holder of any Note in respect of, but
only in respect of, any claims or causes of action arising out of or relating
to this Agreement or the Notes (such claims and causes of action, collectively,
being "Permitted Claims"), and the Borrower hereby irrevocably agrees that all
Permitted Claims may be heard and determined in such New York State court or in
such Federal court. The Borrower hereby irrevocably waives, to the fullest
extent it may effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any aforementioned court in respect
of Permitted Claims. The Borrower hereby irrevocably appoints CT Corporation
System (the "Process Agent"), with an office on the date hereof at 1633
Broadway, New York, New York 10019, as its agent to receive on behalf of the
Borrower and its property service of copies of the summons and complaint and
any other process which may be served by the Agent, the Arranger, any Lender or
the holder of any Note in any such action or proceeding in any aforementioned
court in respect of Permitted Claims. Such service may be made by delivering a
copy of such process to the Borrower by courier and by certified mail (return
receipt requested), fees and postage prepaid, both (i) in care of the Process
Agent at the Process Agent's above address and (ii) at the Borrower's address
specified pursuant to Section 8.02, and the Borrower hereby irrevocably
authorizes and directs the Process Agent to accept such service on its behalf.
The Borrower agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.
(b) Nothing in this Section 8.09 (i) shall affect the
right of the Arranger, the Borrower, any Lender, the holder of any Note or the
Agent to serve legal process in any other manner permitted by law or affect any
right otherwise existing of the Borrower, any Lender, the Arranger, the holder
of any Note or the Agent to bring any action or proceeding in the courts of
other jurisdictions or (ii) shall be deemed to be a general consent to
jurisdiction in any particular court or a general waiver of any defense or a
consent to jurisdiction of the courts expressly referred to in subsection (a)
above in any action or proceeding in respect of any claim or cause of action
other than Permitted Claims.
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SECTION 8.10. Governing Law. This Agreement and the Notes
shall be governed by, and construed in accordance with, the laws of the State
of New York.
SECTION 8.11. Execution in Counterparts. This Agreement may
be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery to the Agent of a counterpart executed by a Lender shall
constitute delivery of such counterpart to all of the Lenders.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective officers thereunto duly
authorized, as of the date first above written.
BURLINGTON RESOURCES INC.
By: /s/ Everett D. DuBois
Name: Everett D. DuBois
Title: Treasurer
CITIBANK, N.A., as Agent
By: /s/ Barbara A. Cohen
Name: Barbara A. Cohen
Title: Vice President
Commitments The Initial Lenders
- ----------- -------------------
$60,000,000 CITIBANK, N.A.
By: /s/ Barbara A. Cohen
Name: Barbara A. Cohen
Title: Vice President
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Commitments
- -----------
$60,000,000 MORGAN GUARANTY TRUST COMPANY
OF NEW YORK
By: /s/ Vernon M. Ford, Jr.
Name: Vernon M. Ford, Jr.
Title: Vice President
$60,000,000 NATIONSBANK OF TEXAS, N.A.
By: /s/ Paul A. Squires
Name: Paul A. Squires
Title: Senior Vice President
$60,000,000 TEXAS COMMERCE BANK NATIONAL
ASSOCIATION
By: /s/ Scott Richardson
Name: Scott Richardson
Title: Vice President
$42,000,000 BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION
By: /s/ David E. Sisler
Name: David E. Sisler
Title: Vice President
$42,000,000 THE FIRST NATIONAL BANK OF BOSTON
By: /s/ Cynthia A. Stableford
Name: Cynthia A. Stableford
Title: Vice President
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Commitments
- -----------
$42,000,000 CREDIT LYONNAIS CAYMAN ISLAND
BRANCH
By: /s/ Xavier Ratouis
Name: Xavier Ratouis
Title: Authorized Signature
$42,000,000 MELLON BANK, N.A.
By: /s/ A.J. Sabatelle
Name: A.J. Sabatelle
Title: Vice President
$42,000,000 TORONTO DOMINION (TEXAS), INC.
By: /s/ Warren Finlay
Name: Warren Finlay
Title: Vice President
$25,000,000 ABN AMRO BANK N.V.
By: /s/ W. Bryan Chapman
Name: W. Bryan Chapman
Title: Vice President
By: /s/ C.W. Randall
Name: C.W. Randall
Title: Group Vice President
$25,000,000 THE BANK OF TOKYO, LTD.
By: /s/ Michael Meiss
Name: Michael Meiss
Title: Vice President & Manager
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Commitments
- -----------
$25,000,000 FIRST INTERSTATE BANK OF
TEXAS, N.A.
By: /s/ Ann M. Rhoads
Name: Ann M. Rhoads
Title: Vice President
$25,000,000 THE NORTHERN TRUST COMPANY
By: /s/ Martin G. Alston
Name: Martin G. Alston
Title: Vice President
$25,000,000 THE SUMITOMO BANK, LIMITED,
HOUSTON AGENCY
By: /s/ Tatsuo Ueda
Name: Tatsuo Ueda
Title: General Manager
$25,000,000 UNION BANK OF SWITZERLAND
By: /s/ Evans Swann
Name: Evans Swann
Title: Vice President
By: /s/ Jean Claude de Roche
Name: Jean Claude de Roche
Title: Assistant Vice President
$600,000,000 Total of the Commitments
============
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