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KIRBY CORPORATION
THE BANKS NAMED HEREIN,
AND
TEXAS COMMERCE BANK NATIONAL ASSOCIATION,
AS FUNDS ADMINISTRATOR
AND AGENT
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$100,000,000
CREDIT AGREEMENT
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DATED AS OF MARCH 18, 1996
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TABLE OF CONTENTS
ARTICLE I
DEFINITIONS, ETC.
Section 1.01. Certain Defined Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Section 1.02. Accounting Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Section 1.03. Computation of Time Periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Section 1.04. References, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
ARTICLE II
COMMITMENTS AND TERMS OF CREDIT
Section 2.01. Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Section 2.02. Borrowing Procedures; Conversions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Section 2.03. The Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Section 2.04. Reduction of the Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Section 2.05. Repayment of Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Section 2.06. Interest Accrual, Payments, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Section 2.07. Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 2.08. Payments and Computations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 2.09. Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Section 2.10. Setoff, Counterclaims and Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Section 2.11. Funding Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Section 2.12. Change of Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Section 2.13. Increased Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Section 2.14. Substitution of Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
ARTICLE III
CONDITIONS OF CREDIT
Section 3.01. Conditions Precedent to the Initial Borrowing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Section 3.02. Conditions Precedent to All Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
Section 4.01. Corporate Existence; Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Section 4.02. Corporate Authority; Binding Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Section 4.03. No Conflict . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
(i)
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Section 4.04. No Consent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Section 4.05. No Defaults or Violations of Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Section 4.06. Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Section 4.07. Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Section 4.08. Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Section 4.09. Governmental Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Section 4.10. Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Section 4.11. ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Section 4.12. Payment of Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Section 4.13. Title and Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Section 4.14. Pari Passu Ranking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Section 4.15. Environmental Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
ARTICLE V
AFFIRMATIVE COVENANTS
Section 5.01. Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Section 5.02. Taxes; Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Section 5.03. Compliance with Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Section 5.04. Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Section 5.05. Corporate Existence; Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Section 5.06. Inspections; Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Section 5.07. Maintenance of Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Section 5.08. Accounting Systems; Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Section 5.09. Use of Loan Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Section 5.10. Further Assurances in General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
ARTICLE VI
NEGATIVE COVENANTS
Section 6.01. Financial Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Section 6.02. Restrictions on Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Section 6.03. Restriction on Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Section 6.04. Restrictions on Negative Pledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Section 6.05. Consolidated Subsidiary Dispositions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Section 6.06. Restrictions on Consolidated Subsidiary Distributions . . . . . . . . . . . . . . . . . . . . . . . . 28
Section 6.07. Mergers and Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Section 6.08. Restricted Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Section 6.09. Lines of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Section 6.10. Transactions with Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Section 6.11. Universal Stockholders Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
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ARTICLE VII
DEFAULT
Section 7.01. Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Section 7.02. Setoff in Event of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Section 7.03. No Waiver; Remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
ARTICLE VIII
THE AGENT AND THE FUNDS ADMINISTRATOR
Section 8.01. Authorization and Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Section 8.02. Reliance, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Section 8.03. TCB and Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Section 8.04. Bank Credit Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Section 8.05. Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Section 8.06. Employees of the Agent, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Section 8.07. Successor Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Section 8.08. Successor Funds Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Section 8.09. Notice of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Section 8.10. Execution of Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
ARTICLE IX
MISCELLANEOUS
Section 9.01. Amendments, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Section 9.02. Participation Agreements and Assignments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Section 9.03. Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Section 9.04. Costs and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Section 9.05. Successors and Assigns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Section 9.06. Independence of Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Section 9.07. Survival of Representations and Warranties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Section 9.08. Separability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Section 9.09. Captions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Section 9.10. Limitation by Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Section 9.11. Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Section 9.12. Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Section 9.13. Limitation on Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Section 9.14. Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Section 9.15 Submission to Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Section 9.16. Waiver of Jury Trial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Section 9.17. Final Agreement of the Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
(iii)
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ANNEX A - DEFINED TERMS
SCHEDULE 2.01 - COMMITMENTS AND LENDING OFFICES
SCHEDULE 4.01 - CONSOLIDATED SUBSIDIARIES AND EXCLUDED AFFILIATES
EXHIBIT A - FORM OF BORROWING REQUEST
EXHIBIT B - FORM OF CONVERSION NOTICE
EXHIBIT C - FORM OF NOTE
EXHIBIT D - FORM OF ASSIGNMENT AND ACCEPTANCE
(iv)
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CREDIT AGREEMENT
THIS CREDIT AGREEMENT dated as of March 18, 1996 is among
KIRBY CORPORATION, a Nevada corporation (the "Borrower"), the banks named on
the signature pages hereto (together with their respective successors and
assigns in such capacity, the "Banks"), and TEXAS COMMERCE BANK NATIONAL
ASSOCIATION, as funds administrator for the Banks (together with its successors
and assigns in such capacity, the "Funds Administrator"), and as agent for the
Banks (together with its successors and assigns in such capacity, the "Agent").
Unless otherwise defined herein, all capitalized terms used herein and defined
in Article I are used herein as so defined.
PRELIMINARY STATEMENT
Pursuant to that certain Credit Agreement dated as of April
23, 1993, as amended (as so amended, the "Existing Credit Agreement"), among
the banks named therein, the Funds Administrator and the Agent, such banks have
provided the Borrower with a $50,000,000 revolving credit facility.
The Borrower has requested that the Banks provide the Borrower
with a $100,000,000 revolving credit facility, and the Banks have agreed to do
so upon, and subject to, the terms and conditions set forth in this Agreement,
which is intended to replace the Existing Credit Agreement.
Accordingly, in consideration of the foregoing and the mutual
covenants set forth herein, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS, ETC.
Section 1.01. Certain Defined Terms. Capitalized terms used
in this Agreement and not otherwise defined herein shall have the respective
meanings set forth in Annex A hereto (such meanings to be equally applicable to
both singular and plural forms of the terms defined).
Section 1.02. Accounting Terms. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles consistent with those applied in the preparation
of the consolidated financial statements referred to in Section 4.06.
Section 1.03. Computation of Time Periods. In this Agreement
in the computation of periods of time from a specified date to a later
specified date, unless otherwise indicated, the word "from" means "from and
including" and the words "to" and "until" each means "to but excluding."
Section 1.04. References, Etc. The words "hereof," "herein"
and "hereunder" and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and
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not to any particular provision of this Agreement. All references herein to
Sections, Annexes, Exhibits and Schedules shall, unless the context requires a
different construction, be deemed to be references to the Sections of this
Agreement and the Annexes, Exhibits and Schedules attached hereto and made a
part hereof. In this Agreement, unless a clear contrary intention appears, the
word "including" (and with correlative meaning "include") means including,
without limiting the generality of any description preceding such term. No
provision of this Agreement shall be interpreted or construed against any
Person solely because that Person or its legal representative drafted such
provision.
ARTICLE II
COMMITMENTS AND TERMS OF CREDIT
Section 2.01. Commitments. (a) Each Bank severally agrees,
on the terms and conditions hereinafter set forth, to make loans to the
Borrower (the "Loans") from time to time on any Business Day during the period
from the Effective Date up to, but excluding, the Termination Date in an
aggregate amount outstanding for such Bank not to exceed at any time such
Bank's Commitment. Subject to the terms and conditions of this Agreement, the
Borrower may borrow, repay pursuant to Section 2.05 or prepay pursuant to
Section 2.07 and reborrow under this Section 2.01(a).
(b) Each Prime Rate Borrowing shall consist of Prime Rate
Loans made on the same day by the Banks ratably according to their respective
Commitment Percentages, and Prime Rate Borrowings may be in any amount. Each
Fixed Rate Borrowing shall be in an aggregate amount not less than $1,000,000
or an integral multiple of $100,000 in excess thereof, and shall consist of
Fixed Rate Loans of the same Type made on the same day by the Banks ratably
according to their respective Commitment Percentages. Borrowings of more than
one Type may be outstanding at the same time, but the Borrower shall not be
entitled to request any Borrowing or to Convert Loans comprising any Borrowing
into Loans of another Type, if after giving effect to such Borrowing or
Conversion, as the case may be, any Bank would have outstanding at any one time
more than four (4) different Types of Loans.
(c) Notwithstanding any other term or provision hereof no
Loan shall be made if (i) an Amortization Event has occurred and is continuing
or (ii) after giving effect thereto the aggregate principal amount of Loans
outstanding would exceed the Total Commitment.
Section 2.02. Borrowing Procedures; Conversions. (a) Each
Borrowing shall be made upon the written, telecopied or facsimile transmitted
request of the Borrower, given to the Funds Administrator not later than 11:00
a.m. (Houston time) on (i) the third Business Day prior to the proposed
Borrowing Date in the case of a Eurodollar Rate Borrowing, (ii) the second
Business Day prior to the proposed Borrowing Date in the case of an Adjusted CD
Rate Borrowing or (iii) the Business Day immediately preceding the proposed
Borrowing Date in the case of a Prime Rate Borrowing, and upon receipt the
Funds Administrator shall give each other member of the Bank Group prompt
notice of such request by telecopier, telex or cable. Each request for a
Borrowing (a
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"Borrowing Request") made by the Borrower shall be in substantially the form of
Exhibit A, specifying therein (A) the Borrowing Date for such Borrowing, (B)
the Type of Loans comprising such Borrowing, (C) the aggregate amount of such
Borrowing, and (D) in the case of a Fixed Rate Borrowing, the Interest Period
for the Loans comprising such Borrowing. Each Bank shall, before 11:30 a.m.
(Houston time) on the date of such Borrowing, make available for the account of
its Applicable Lending Office to the Funds Administrator at its address
referred to in Section 9.03, in same day funds, such Bank's ratable portion of
such Borrowing. After the Funds Administrator's receipt of such funds and upon
fulfillment of the applicable conditions set forth in Article III, the Funds
Administrator will make such funds available to the Borrower at the Funds
Administrator's aforesaid address. Each Borrowing Request shall be irrevocable
and binding on the Borrower.
(b) Unless the Funds Administrator shall have received
notice from a Bank prior to any Borrowing Date that such Bank will not make
available to the Funds Administrator such Bank's ratable portion of such
Borrowing, the Funds Administrator may assume that such Bank has made such
portion available to the Funds Administrator on such Borrowing Date in
accordance with Section 2.02(a) and the Funds Administrator may, in reliance
upon such assumption, make available to the Borrower on such Borrowing Date a
corresponding amount. If and to the extent that such Bank shall not have so
made such ratable portion available to the Funds Administrator, such Bank and
the Borrower severally agree to repay to the Funds Administrator forthwith on
demand such corresponding amount, together with interest thereon for each day
from the date such amount is made available to the Borrower until the date such
amount is repaid to the Funds Administrator at (i) in the case of the Borrower,
the interest rate applicable at the time to the Loans comprising such Borrowing
and (ii) in the case of such Bank, the Federal Funds Rate. If such Bank shall
repay to the Funds Administrator such corresponding amount, such amount so
repaid shall constitute such Bank's Loan as part of such Borrowing for purposes
of this Agreement. The failure of any Bank to make the Loan to be made by it
as part of any Borrowing shall not relieve any other Bank of its obligation, if
any, hereunder to make its Loan on such Borrowing Date or any subsequent
Borrowing Date, but no Bank shall be responsible for the failure of any other
Bank to make the Loan to be made by such other Bank on the date of any
Borrowing.
(c) The Borrower may, subject to the terms of this
Agreement, on any Business Day, upon written, telecopied or facsimile
transmitted notice to the Funds Administrator, given not later than 11:00 a.m.
(Houston time) on (i) the third Business Day prior to the proposed Conversion
Date in the case of a Conversion of Loans into Eurodollar Rate Loans, (ii) the
second Business Day prior to the proposed Conversion Date in the case of a
Conversion of Loans into Adjusted CD Rate Loans or (iii) the Business Day
immediately preceding the proposed Conversion Date in the case of a Conversion
of Loans into Prime Rate Loans, Convert all Loans comprising one or more
Borrowings into Loans of another Type comprising a single Borrowing, and the
Funds Administrator shall promptly transmit the contents of such notice to each
other member of the Bank Group by telecopier, telex or cable. Each notice of a
Conversion (a "Conversion Notice") given by the Borrower shall be in
substantially the form of Exhibit B, specifying therein (A) the Conversion Date
for such Conversion, (B) the Loans to be Converted, (C) the Type of Loans to
which such Loans are to be Converted and (D) in the case of a Conversion into
Fixed Rate Loans, the Interest Period for
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such Converted Loans. Notwithstanding any other term or provision hereof,
after giving effect to any such Conversion, the size of all Borrowings
outstanding hereunder and the number of different Types of Loans outstanding
hereunder shall conform to the requirements of Section 2.01. In the event of
any Conversion of Fixed Rate Loans on any day other than the last day of the
Interest Period applicable thereto, the Borrower shall be obligated to
reimburse the Banks in respect thereof pursuant to Section 2.11. If the
Borrower shall fail to give a timely Conversion Notice conforming to the
requirements of this Agreement with respect to any Fixed Rate Loans prior to
the expiration of the Interest Period applicable thereto, such Fixed Rate Loans
shall, automatically on the last day of such Interest Period, be Converted into
Prime Rate Loans.
Section 2.03. The Notes. The Loans made by each Bank shall
be evidenced by a single Note issued to such Bank by the Borrower (a) dated
the date of this Agreement (or such other date as may be specified in Section
9.02), (b) payable to the order of such Bank in a principal amount equal to
such Bank's Commitment and (c) otherwise duly completed. Each Loan made by a
Bank to the Borrower and all payments made on account of the principal amount
thereof shall be entered by such Bank in its records or on the schedule (or a
continuation thereof) attached to the Note of such Bank, provided, however,
that prior to any transfer of any such Note, such Bank shall endorse the amount
and maturity of any outstanding Loans on the schedule (or a continuation
thereof) attached to such Note.
Section 2.04. Reduction of the Commitments. The Borrower
shall have the right, upon at least three Business Days' notice to the Funds
Administrator to terminate in whole or reduce ratably in part the unused
portions of the respective Commitments of the Banks, provided, that each
partial reduction shall be in the aggregate amount of $1,000,000 or an integral
multiple of $1,000,000 in excess thereof.
Section 2.05. Repayment of Loans. (a) All outstanding Loans
shall be fully due and payable on the Termination Date, together with any
unpaid interest accrued thereon.
(b) If an Amortization Event occurs, then, without
limiting the requirements of Section 2.05(a), a principal payment on the Loans
equal to the lesser of (y) one-twentieth (1/20) of the aggregate amount of such
Loans outstanding on the date on which such Amortization Event occurs and (z)
the amount by which the aggregate amount of such Loans outstanding on such
payment date exceeds $75,000,000, shall be due and payable on (i) the date
thirty (30) days after the date such Amortization Event occurs and (ii)
thereafter on each Quarterly Payment Date.
Section 2.06. Interest Accrual, Payments, Etc. (a) Subject
to the provisions of Section 9.13, the Borrower shall pay interest on the
unpaid principal amount of each Loan made by each Bank from the date of such
Loan until such principal amount shall be paid in full, on the dates and at the
rates per annum specified as follows:
(i) if such Loan is a Prime Rate Loan, a rate per annum
equal to the lesser of (A) the Highest Lawful Rate and (B) the Prime
Rate in effect from time to time plus or
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minus, as applicable, the Applicable Margin in effect from time to
time, and unpaid accrued interest on such Loans shall be payable on
each Quarterly Payment Date and on the date such Prime Rate Loan shall
be paid in full;
(ii) if such Loan is an Adjusted CD Rate Loan, a rate per
annum equal at all times during the Interest Period for such Loan to
the lesser of (A) the Highest Lawful Rate and (B) the sum of the
Adjusted CD Rate for such Interest Period plus the Applicable Margin
in effect as of the first day of such Interest Period, and unpaid
accrued interest on such Loans shall be payable on each Quarterly
Payment Date and on the last day of such Interest Period; or
(iii) if such Loan is a Eurodollar Rate Loan, a rate per
annum equal at all times during the Interest Period for such Loan to
the lesser of (A) the Highest Lawful Rate and (B) the sum of the
Eurodollar Rate for such Interest Period plus the Applicable Margin in
effect as of the first day of such Interest Period, and unpaid accrued
interest on such Loans shall be payable on each Quarterly Payment Date
and on the last day of such Interest Period.
Any amount of principal or, to the extent permitted by applicable law, interest
which is not paid when due (whether at stated maturity, by acceleration or
otherwise) shall bear interest from the date on which such amount is due until
such amount is paid in full, at a rate per annum (the "Default Rate") equal at
all times to the lesser of (A) the Highest Lawful Rate and (B) the Prime Rate
in effect from time to time during the applicable period plus or minus, as
applicable, the Applicable Margin in effect from time to time during such
period plus two percent (2%), payable on demand.
(b) The Borrower shall pay to each Bank additional
interest on the unpaid principal amount of each Eurodollar Rate Loan of such
Bank, from the date of such Loan until such principal amount is paid in full,
at an interest rate per annum equal at all times to the remainder obtained by
subtracting (i) the Eurodollar Rate for the Interest Period for such Loan from
(ii) the rate obtained by dividing such Eurodollar Rate by a percentage equal
to 100% minus the Eurodollar Rate Reserve Percentage of such Bank for such
Interest Period, payable on each date on which interest is payable on such
Loan. Such additional interest shall be calculated by such Bank and notified
to the Borrower (together with a copy of such Bank's calculations) through the
Funds Administrator.
(c) (i) The Agent shall give prompt notice to the
Borrower and each other member of the Bank Group of the applicable interest
rate determined by the Agent hereunder for each Borrowing. Each determination
by the Agent (or, in the case of Section 2.06(b), by a Bank) of an interest
rate hereunder shall be conclusive and binding for all purposes, absent
manifest error.
(ii) If one or more Banks holding aggregate Commitment
Percentages of at least fifty percent (50%) shall, at least one Business Day
before the date of any requested Eurodollar Rate Borrowing, notify the Agent
and the Funds Administrator that the Eurodollar Rate applicable to such
Borrowing will not adequately reflect the cost to such Banks of making, funding
or maintaining their respective Eurodollar Rate Loans for such Borrowing, the
right of the Borrower to select Eurodollar
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Rate Loans for such Borrowing or any subsequent Borrowing shall be suspended
until the Agent shall notify the Borrower and each other member of the Bank
Group that the circumstances causing such suspension no longer exist, and each
Loan comprising such Borrowing shall be made as, or Converted into, as
applicable, a Prime Rate Loan.
(iii) If the Agent is unable to determine the Adjusted CD
Rate in accordance with the definition thereof for any Adjusted CD Rate
Borrowing or the Eurodollar Rate in accordance with the definition thereof for
any Eurodollar Rate Borrowing, (A) the Agent shall forthwith notify the
Borrower and each other member of the Bank Group that the interest rate cannot
be determined for such Adjusted CD Rate Borrowing or Eurodollar Rate Borrowing,
as the case may be, (B) each Adjusted CD Rate Borrowing or Eurodollar Rate
Borrowing, as the case may be, previously requested but not yet funded or
Converted, as applicable, will automatically be made as or Converted into, as
applicable, a Prime Rate Borrowing, and (C) the obligation of the Banks to make
Adjusted CD Rate Loans or Eurodollar Rate Loans, as the case may be, shall be
suspended until the Agent shall notify the Borrower and each other member of
the Bank Group that the circumstances causing such suspension no longer exist.
(d) As used in this Agreement and the other Loan
Documents, "Applicable Margin" means, as to Loans consisting of a single
Borrowing, a rate per annum determined by reference to the Margin Ratio and the
Type of Loans comprising such Borrowing as follows:
(i) if the Margin Ratio in effect as of the date of
determination is greater than 3.0 to 1.0, then such rate per annum
shall be (A) zero percent (0%) for Prime Rate Loans, (B) plus one and
one-half of one percent (11/2%) for Adjusted CD Rate Loans, and (C)
plus one and one-quarter of one percent (1 1/4%) for Eurodollar Rate
Loans,
(ii) if the Margin Ratio in effect as of the date of
determination is greater than 2.5 to 1.0, but equal to or less than
3.0 to 1.0, then such rate per annum shall be (A) zero percent (0%)
for Prime Rate Loans, (B) plus one and one-quarter of one percent
(11/4%) for Adjusted CD Rate Loans, and (C) plus one percent (1%) for
Eurodollar Rate Loans,
(iii) if the Margin Ratio in effect as of the date of
determination is greater than 2.0 to 1.0, but equal to or less than
2.5 to 1.0, such rate per annum shall be (A) minus one-quarter of one
percent (1/4%) for Prime Rate Loans, (B) plus one percent (1%) for
Adjusted CD Rate Loans, and (C) plus three-quarters of one percent
(3/4%) for Eurodollar Rate Loans,
(iv) if the Margin Ratio in effect as of the date of
determination is greater than 1.5 to 1.0, but equal to or less than
2.0 to 1.0, such rate per annum shall be (A) minus one-half of one
percent (1/2%) for Prime Rate Loans, (B) plus three quarters of one
percent 3/4%) for Adjusted CD Rate Loans, and (C) plus five- eighths
of one percent 5/8%) for Eurodollar Rate Loans, and
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(v) if the Margin Ratio in effect as of the date of
determination is equal to or less than 1.5 to 1.0, such rate per annum
shall be (A) minus one-half of one percent (1/2%) for Prime Rate
Loans, (B) plus one- half of one percent 1/2%) for Adjusted CD Rate
Loans, and (C) plus one-half of one percent (1/2%) for Eurodollar
Rate Loans.
Section 2.07. Prepayments. (a) The Borrower may, from time
to time on any Business Day, upon at least one Business Day's notice to the
Funds Administrator stating the proposed date and aggregate principal amount
thereof, and if such notice is given, the Borrower shall, prepay the
outstanding principal amount of the Prime Rate Loans comprising part of the
same Borrowing in whole or ratably in part; provided, that any partial
prepayment of such Prime Rate Loans shall be in an aggregate principal amount
of not less than $100,000. The Borrower may from time to time upon at least
three Business Days' notice to the Funds Administrator stating the proposed
date and the aggregate principal amount thereof, and if such notice is given,
the Borrower shall, prepay the outstanding principal amount of the Fixed Rate
Loans comprising part of the same Borrowing in whole or ratably in part;
provided, that any partial prepayment of such Fixed Rate Loans shall be in an
aggregate principal amount of not less than $2,000,000 or an integral multiple
of $1,000,000 in excess thereof. The Borrower may apply any optional
prepayment of the Loans to such portions of the Loans as the Borrower may
elect, except that any optional prepayments applied to portions of the Loans
subject to amortization under Section 2.05(b) shall be applied to the payments
required under Section 2.05(b) in the inverse order of the maturities thereof.
(b) The Borrower shall from time to time prepay the Loans
comprising part of the same Borrowing in such amounts as shall be necessary so
that at all times the aggregate amount of Loans outstanding shall not be in
excess of the Total Commitment. Any prepayment required by this Section 2.07(b)
shall be due on the date such prepayment accrues pursuant to the preceding
sentence.
(c) Each prepayment of Fixed Rate Loans shall be
accompanied by a prepayment of accrued interest to the date of such prepayment
on the principal amount prepaid. In the event of any prepayment of a Fixed
Rate Loan, the Borrower shall be obligated to reimburse the Banks in respect
thereof pursuant to Section 2.11. Unless otherwise specified by the Borrower,
all mandatory prepayments of the Loans shall first be applied to Prime Rate
Borrowings, and second to such Fixed Rate Borrowings as the Funds Administrator
may select.
Section 2.08. Payments and Computations. (a) All payments of
principal, interest, commitment fees and other amounts payable to the Banks
under the Loan Documents shall be made in Dollars to the Funds Administrator at
its address specified in Section 9.03 for the account of each of the Banks, in
immediately available funds not later than 12:00 Noon (Houston time) on the
date when due. Upon receipt of such payments, the Funds Administrator will
promptly cause to be distributed like funds relating to the payment of
principal or interest or commitment fees ratably (other than amounts payable
pursuant to Section 2.06(b), Section 2.10, Section 2.11, Section 2.12 or
Section 2.13) to the Banks for the account of their respective Applicable
Lending Offices, and like funds relating to the payment of any other amount
payable to any Bank to such Bank for the account
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of its Applicable Lending Office, in each case to be applied in accordance with
the terms of this Agreement. In the event the Funds Administrator receives any
such payment in immediately available funds not later than 12:00 Noon (Houston
time) on any Business Day, but fails to distribute to any Bank entitled thereto
like funds relating to such payment by the close of business on such Business
Day, then the Funds Administrator shall pay such Bank interest thereon at the
Federal Funds Rate for each day from the date such amount is received by the
Funds Administrator until the date distributed to such Bank.
(b) Unless the Funds Administrator shall have received
notice from the Borrower prior to the date on which any payment is due to the
Banks under the Loan Documents that the Borrower will not make such payment in
full, the Funds Administrator may assume that the Borrower has made such
payment in full to the Funds Administrator on such date and the Funds
Administrator may, in reliance upon such assumption, cause to be distributed to
each Bank on such due date an amount equal to the amount then due such Bank.
If and to the extent the Borrower shall not have made such payment in full to
the Funds Administrator each Bank shall repay to the Funds Administrator
forthwith on demand such amount distributed to such Bank, together with
interest thereon for each day from the date such amount is distributed to such
Bank until the date such Bank repays such amount to the Funds Administrator at
the Federal Funds Rate.
(c) All payments by the Borrower of the fees payable to
the Agent pursuant to the Agent's Side Letter shall be made in Dollars directly
to the Agent at its address specified in Section 9.03 in immediately available
funds not later than 12:00 Noon (Houston time) on the date when due.
(d) All computations of interest based on the Prime Rate
shall be made on the basis of a year of 365 or 366 days, as the case may be,
and all computations of interest based on the Adjusted CD Rate, the Eurodollar
Rate, the Federal Funds Rate, or Section 2.06(b), as well as commitment fees,
shall be made on the basis of a year of 360 days (unless use of a 360 day year
would cause the interest contracted for, charged or received hereunder to
exceed the Highest Lawful Rate, in which case such computations shall be made
on the basis of a year of 365 or 366 days, as the case may be), 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 commitment fees are
payable.
(e) Whenever any payment under the Loan Documents 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 commitment
fee, as the case may be; provided, however, if such extension would cause
payment of interest on or principal of Eurodollar Rate Loans to be made in the
next following calendar month, such payment shall be made on the next preceding
Business Day.
(f) If any Bank shall obtain any payment (whether
voluntary, involuntary, through the exercise of any right of setoff, or
otherwise) on account of the Loans made by it (other than pursuant to Section
2.06(b), Section 2.10, Section 2.11, Section 2.12 or Section 2.13) in excess
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of its ratable share of payments on account of the Loans obtained by all the
Banks, such Bank shall forthwith purchase from the other Banks such
participations in the Loans made by such other Banks as shall be necessary to
cause such purchasing Bank to share the excess payment ratably with each of
them. The Borrower agrees that any Bank so purchasing a participation from
another Bank pursuant to this Section 2.08(f) may, to the fullest extent
permitted by law and this Agreement, exercise all its rights of payment
(including the right of setoff) with respect to such participation as fully as
if such Bank were the direct creditor of the Borrower in the amount of such
participation.
Section 2.09. Fees. (a) Subject to the provisions of Section
9.13, the Borrower shall pay each Bank a commitment fee equal to one-eighth of
one percent (1/8%) per annum on the average unused portion of the Commitment of
such Bank as in effect from time to time for the period from the date hereof
to, but excluding, the Termination Date. Accrued commitment fees shall be due
and payable in arrears on each Quarterly Payment Date in each year, on the date
of any reduction or termination of the Commitment of such Bank and on the
Termination Date, and shall be computed for the period commencing with the day
to which such fee was last paid (or, in the case of the first commitment fee
payment date, for the period commencing with and including the date hereof) to
the date such fee is due and payable.
(b) Subject to the provisions of Section 9.13, the
Borrower shall pay the Agent the administrative fees specified in the letter
agreement between the Agent and the Borrower concerning the same (the "Agent's
Side Letter").
Section 2.10. Setoff, Counterclaims and Taxes. (a) All
payments of principal, interest, expenses, reimbursements, compensation,
commitment fees, letter of credit fees, arrangement fees or administration fees
and any other amount from time to time due under any Loan Document shall be
made by the Borrower without setoff or counterclaim and shall be made 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 member of the Bank Group, taxes imposed
on its income (or a taxable base in the nature of net income, or, in lieu of
taxes so imposed or measured, on overall gross receipts and capital), and
franchise taxes imposed on it, by the jurisdiction under the laws of which such
member of the Bank Group is organized or any political subdivision thereof and,
in the case of each Bank, taxes imposed on its income, and franchise taxes
imposed on it, by the jurisdiction of such Bank's Applicable Lending Office or
any political subdivision thereof (all such non-excluded taxes, levies,
imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as "Taxes"). If the Borrower shall be required by law to deduct
any Taxes from or in respect of any sum payable under any Loan Document to any
member of the Bank Group, (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 2.10) such member of
the Bank Group receives an amount equal to the sum it would have received had
no such deductions been made, (ii) the Borrower shall make such deductions and
(iii) the Borrower 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 increased amount on account of
Taxes to the extent
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that any such Bank shall not have furnished the Borrower with such forms, or
shall not have taken such other action, as reasonably may be available to it
under applicable tax laws and any applicable tax treaty to obtain an exemption
from, or reduction of, such Taxes.
(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 under any Loan
Document or from the execution, delivery or registration of, or otherwise with
respect to, any Loan Document (hereinafter referred to as "Other Taxes").
(c) The Borrower will indemnify each member of the Bank
Group 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 2.10) paid by such member of the Bank Group
(whether paid on its own behalf or on behalf of any other member of the Bank
Group) and any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto, 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 member of the Bank Group makes written demand
therefor.
(d) Within 30 days after the date of any payment of
Taxes, the Borrower will furnish to the Agent, at its address referred to in
Section 9.03, the original or a certified copy of a receipt evidencing payment
thereof. If no Taxes are payable in respect of any payment made under any Loan
Document, upon the request of the Agent, the Borrower will furnish to the Agent
and the Funds Administrator, at its address referred to in Section 9.03, a
certificate from each appropriate taxing authority, or an opinion of counsel
acceptable to the Agent, in either case stating that such payment is exempt
from or not subject to Taxes.
(e) Without prejudice to the survival of any other
agreement of the Borrower hereunder, the agreements and obligations of the
Borrower contained in this Section 2.10 shall survive the payment in full of
the Loans and all other amounts owing under the other Loan Documents. The
provisions of this Section 2.10 are in all respects subject to Section 9.13
hereof.
(f) Each Bank represents and warrants to the Agent, the
Funds Administrator and the Borrower that such Bank is either (i) a corporation
organized under the laws of the United States, a state thereof or the District
of Columbia, or (ii) entitled to complete exemption from United States
withholding tax imposed on or with respect to any payments, including fees, to
be made to it pursuant to this Agreement and the other Loan Documents (x) under
an applicable provision of a tax convention or treaty to which the United
States is a party or (y) because it is acting through a branch, agency or
office in the United States and any payment to be received by it hereunder is
effectively connected with a trade or business in the United States. Upon
becoming a party to this Agreement (whether by assignment or as an original
signatory hereto), and in any event, from time to time upon the request of the
Agent, the Funds Administrator or the Borrower, each Bank which is not a
corporation organized under the laws of the United States or any state thereof
shall deliver to the Agent, the Funds Administrator and the Borrower such
forms, certificates or other instruments as
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may be required by the Agent and the Funds Administrator in order to establish
that such Bank is entitled to complete exemption from United States withholding
taxes imposed on or with respect to any payments, including fees, to be made to
such Bank under this Agreement and the other Loan Documents. Each Bank also
agrees to deliver to the Borrower, the Agent and the Funds Administrator such
other supplemental forms as may at any time be required as a result of the
passage of time or changes in applicable law or regulation in order to confirm
or maintain in effect its entitlement to exemption from U.S. withholding tax on
any payments hereunder; provided, that the circumstances of the Bank at the
relevant time and applicable laws permit it to do so. If a Bank determines, as
a result of any change in either (1) applicable law, regulation or treaty, or
in any official application thereof or (2) its circumstances, that it is unable
to submit any form or certificate that it is obligated to submit pursuant to
this Section 2.10(f), or that it is required to withdraw or cancel any such
form or certificate previously submitted, it shall promptly notify the
Borrower, the Agent and the Funds Administrator of such fact. If a Bank is
organized under the laws of a jurisdiction outside the United States, and the
Borrower, the Funds Administrator and the Agent have not received forms,
certificates or other instruments indicating to their satisfaction that all
payments to be made to such Bank hereunder are not subject to United States
withholding tax or the Agent otherwise has reason to believe that such Bank is
subject to U.S. withholding tax, the Borrower shall withhold taxes from such
payments at the applicable statutory rate. Each Bank shall indemnify and hold
the Borrower, the Funds Administrator and the Agent harmless from any United
States taxes, penalties, interest and other expenses, costs and losses incurred
or payable by them as a result of either (A) such Bank's failure to submit any
form or certificate that it is required to provide pursuant to this Section
2.10(f) or (B) reliance by the Borrower, the Funds Administrator or the Agent
on any such form or certificate which such Bank has provided to them pursuant
to this Section 2.10(f).
(g) Any Bank claiming any additional amounts payable
pursuant to this Section 2.10 shall use reasonable efforts (consistent with
legal and regulatory restrictions) to file any certificate or document
requested by the Borrower or to change the jurisdiction of its Applicable
Lending Office if such a filing or change would avoid the need for or reduce
the amount of any such additional amounts which may thereafter accrue and would
not, in the sole determination of such Bank, be otherwise disadvantageous to
such Bank.
Section 2.11. Funding Losses. The Borrower shall indemnify
each member of the Bank Group against any loss or reasonable expense
(including, but not limited to, any loss or reasonable expense sustained or
incurred or to be sustained or incurred in liquidating or reemploying deposits
from third parties acquired to effect or maintain such Loan or any part thereof
as a Fixed Rate Loan) which such Person may sustain or incur as a consequence
of (a) any failure by the Borrower to fulfill on the date of any Borrowing
hereunder the applicable conditions set forth in Article III, (b) any failure
by the Borrower to borrow hereunder or to Convert Loans hereunder after a
Borrowing Request or Conversion Notice, respectively, has been given, (c) any
payment, prepayment or Conversion of a Fixed Rate Loan required or permitted by
any other provisions of this Agreement, including, without limitation, payments
made due to the acceleration of the maturity of the Loans pursuant to Section
7.01, or otherwise made on a date other than the last day of the applicable
Interest Period, (d) any default in the payment or prepayment of the principal
amount of
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any Loan or any part thereof or interest accrued thereon, as and when due and
payable (at the due date thereof, by notice of prepayment or otherwise) or (e)
the occurrence of an Event of Default. Such loss or reasonable expense shall
include, without limitation, an amount equal to the excess, if any, as
determined by each Bank of (i) its cost of obtaining the funds for the Loan
being paid, prepaid or Converted or not borrowed or Converted (based on the
Fixed Rate applicable thereto) for the period from the date of such payment,
prepayment or Conversion or failure to borrow or Convert to the last day of the
Interest Period for such Loan (or, in the case of a failure to borrow or
Convert, the Interest Period for the Loan which would have commenced on the
date of such failure to borrow or Convert) over (ii) the amount of interest (as
estimated by such Bank) that would be realized by such Bank in reemploying the
funds so paid, prepaid or Converted or not borrowed or Converted for such
period or Interest Period, as the case may be. A certificate of each member of
the Bank Group setting forth any amount or amounts which such Person is
entitled to receive pursuant to this Section 2.11 shall be delivered to the
Borrower (with a copy to the Agent and the Funds Administrator) and shall be
conclusive, if made in good faith, absent manifest error. The Borrower shall
pay to the Funds Administrator for the account of each such Person the amount
shown as due on any certificate within 30 days after its receipt of the same.
Notwithstanding the foregoing, in no event shall any Bank be permitted to
receive any compensation hereunder constituting interest in excess of the
Highest Lawful Rate. Without prejudice to the survival of any other
obligations of the Borrower hereunder, the obligations of the Borrower under
this Section 2.11 shall survive the termination of this Agreement and/or the
payment or assignment of any of the Notes.
Section 2.12. Change of Law. (a) If at any time any Bank
determines in good faith (which determination shall be conclusive) that any
change in any applicable law, rule or regulation or in the interpretation,
application or administration thereof makes it unlawful, or any central bank or
other Governmental Authority asserts that it is unlawful, for such Bank or its
foreign branch or branches to fund or maintain any Eurodollar Rate Loan (any of
the foregoing determinations being a "Eurodollar Event"), then, such Bank, at
its option, may: (i) declare that Eurodollar Rate Loans will no longer be made
or maintained by such Bank, whereupon the right of the Borrower to select
Eurodollar Rate Loans for any Borrowing shall be suspended until such Bank
shall notify the Funds Administrator and the Agent that the circumstances
causing such Eurodollar Event no longer exist; (ii) with respect to any
Eurodollar Rate Loans of such Bank then outstanding, require that all such
Eurodollar Rate Loans be Converted to Prime Rate Loans, in which event all such
Eurodollar Rate Loans shall automatically be Converted into Prime Rate Loans on
the effective date of notice of such Eurodollar Event and all payments or
prepayments of principal that would have otherwise been applied to repay such
Converted Eurodollar Rate Loans shall instead be applied to repay the Prime
Rate Loans resulting from such Conversion; and/or (iii) with respect to any
Eurodollar Rate Loans requested of such Bank but not yet made as or Converted
into such, require that such Eurodollar Rate Loans be made as or Converted
into, as applicable, Prime Rate Loans.
(b) Upon the occurrence of any Eurodollar Event, and at
any time thereafter so long as such Eurodollar Event shall continue, such Bank
may exercise its aforesaid option by giving written notice thereof to the Funds
Administrator, the Agent and the Borrower, such notice to be effective upon
receipt thereof by the Borrower. Any Conversion of any Eurodollar Rate Loan
which
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is required under this Section 2.12 shall be made, together with accrued and
unpaid interest and all other amounts payable to such Bank under this Agreement
with respect to such Converted Loan (including, without limitation, amounts
payable pursuant to Section 2.11 hereof), on the date stated in the notice to
the Borrower referred to above.
Section 2.13. Increased Costs. (a) If, due to either (i)
the introduction of or any change in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline issued or request made
after the Effective Date by any central bank or other Governmental Authority
(whether or not having the force of law), there shall be any increase in the
cost to any Bank of agreeing to make or making, funding or maintaining Adjusted
CD Rate Loans or Eurodollar Rate Loans, then the Borrower shall from time to
time, subject to the provisions of Section 9.13, pay to the Funds Administrator
for the account of such Bank additional amounts sufficient to compensate such
Bank for such increased cost upon demand by such Bank.
(b) If any Bank shall have determined in good faith that
any law, rule, regulation or guideline adopted pursuant to or arising out of
the July 1988 report of the Basle Committee on Banking Regulations and
Supervisory Practices entitled "International Convergence of Capital
Measurement and Capital Standards" and becoming applicable to such Bank after
the Effective Date, or that the adoption after the Effective Date of any
applicable law, rule, regulation or guideline regarding capital adequacy, or
any change in any of the foregoing or in the interpretation or administration
thereof by any central bank or other Governmental Authority charged with the
interpretation or administration thereof, or compliance by such Bank (or any
lending office of such Bank) with any request or directive regarding capital
adequacy (whether or not having the force of law) issued after the Effective
Date by any such Governmental Authority or comparable agency, affects or would
affect the amount of capital required or expected to be maintained by such Bank
or any corporation controlling such Bank and that the amount of such capital is
increased by or based upon the existence of such Bank's Commitment hereunder
and other commitments of this type, then the Borrower shall from time to time,
subject to the provisions of Section 9.13, pay to such Bank upon demand
additional amounts sufficient to compensate such Bank or such corporation in
the light of such circumstances, to the extent that such Bank reasonably
determines such increase in capital to be allocable to the existence of such
Bank's Commitment hereunder and similar amounts are being charged generally to
other borrowers with similar commitments from such Bank.
(c) Each Bank will notify the Borrower of any event
occurring after the date of this Agreement which will entitle such Bank to
compensation pursuant to this Section 2.13 as promptly as practicable after
such Bank obtains knowledge of the occurrence of such event. In no event will
the Borrower be obligated to compensate any Bank pursuant to this Section 2.13
for any amounts described in paragraphs (a) or (b) above that accrued more than
one hundred eighty (180) days prior to the date the notice described in the
preceding sentence is given by the party requesting such compensation, but the
foregoing shall in no way limit the right of such Bank to request compensation
for amounts accrued during such one hundred eighty (180) day period or any
future period. A certificate of such Bank setting forth in reasonable detail
(i) such amount or amounts as shall be necessary to compensate such Bank (or
participating banks or other entities pursuant to
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Section 9.02) as specified above and (ii) the calculation of such amount or
amounts shall be delivered to the Borrower and shall be conclusive absent
manifest error. The Borrower shall pay to such Bank the amount shown as due on
any such certificate within thirty (30) days after its receipt of the same.
The failure of any Bank to demand compensation for any increased costs or
reduction in amounts received or receivable or reduction in return on capital
shall not constitute a waiver of the right of such Bank or any other Bank, to
demand compensation for any increased costs or reduction in amounts received or
receivable or reduction in return on capital. The protection of this Section
2.13 shall be available to the Banks regardless of any possible contention of
invalidity or inapplicability of law, regulation or condition which shall have
been imposed.
Section 2.14. Substitution of Banks. If one or more Banks
requests compensation pursuant to Section 2.13 or declares a Eurodollar Event
pursuant to Section 2.12 or the Borrower is required to deduct United States
withholding taxes pursuant to Section 2.10(f) from amounts payable to one or
more Banks under the Loan Documents (any such request, declaration or
withholding is herein called a "Substitution Event" and any such Bank is herein
called an "Affected Bank") the Borrower may give notice to such Affected Bank
(with a copy to the Agent and the Funds Administrator) that it wishes to seek
one or more Eligible Assignees (which may be one or more of the other Banks) to
assume the Commitment of such Affected Bank and to purchase the Loans of such
Affected Bank and the other interests of such Affected Bank in the Loan
Documents (collectively, the "Affected Interests"). Each Affected Bank agrees
to sell all of its Affected Interests pursuant to Section 9.02 to any such
Eligible Assignee for an amount equal to the sum of the outstanding unpaid
principal of and accrued interest on the Loans of such Affected Bank and all
commitment fees and other fees and amounts due such Affected Bank under the
Loan Documents, calculated, in each case, to the date such Affected Interests
are purchased, whereupon such Affected Bank shall have no further Commitment or
other obligation to the Borrower under the Loan Documents. Notwithstanding the
foregoing, the Borrower may not replace any Affected Bank if (a) the Bank or
Banks involved in such Substitution Event have aggregate Commitment Percentages
in excess of thirty five percent (35%) or (b) the Borrower does not seek to
replace each Bank involved in such Substitution Event.
ARTICLE III
CONDITIONS OF CREDIT
Section 3.01. Conditions Precedent to the Initial Borrowing.
The obligation of each Bank to make its initial Loan on the occasion of the
initial Borrowing hereunder is subject to the conditions precedent that the
Agent shall have received on or before the date of such initial Borrowing all
of the following, each dated (unless otherwise indicated) the date hereof, in
form and substance reasonably satisfactory to the Bank Group and in such number
of counterparts as may be reasonably requested by the Agent:
(a) The following Loan Documents duly executed by the
Persons indicated below:
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(i) this Agreement executed by the Borrower and each
member of the Bank Group,
(ii) the Notes executed by the Borrower, and
(iii) the Agent's Side Letter executed by the Borrower and
the Agent.
(b) A certificate of a Responsible Officer and of the
secretary or an assistant secretary of the Borrower certifying, inter alia, (i)
true and correct copies of resolutions adopted by the Board of Directors of the
Borrower (A) authorizing the execution, delivery and performance by the
Borrower of the Loan Documents to which it is or will be a party and the
Borrowings to be made hereunder and the consummation of the transactions
contemplated thereby, (B) approving the forms of the Loan Documents to which it
is a party and which will be delivered at or prior to the date of the initial
Borrowing and (C) authorizing officers of the Borrower to execute and deliver
the Loan Documents to which it is or will be a party and any related documents,
(ii) true and correct copies of the articles of incorporation and bylaws (or
other similar charter documents) of the Borrower and (iii) the incumbency and
specimen signatures of the officers of the Borrower executing any documents on
behalf of it.
(c) Evidence that the commitments under the Dixie Credit
Agreement and the Existing Credit Agreement have been terminated and that all
principal, interest, fees and other amounts owing thereunder by Dixie and the
Borrower, respectively, have been paid (or will be terminated contemporaneously
with, and will be paid with the proceeds of, the initial Borrowing).
(d) A certificate of a Responsible Officer of the
Borrower certifying as to the satisfaction of the conditions specified in this
Article III.
(e) The favorable, signed opinion of Haynes and Boone,
L.L.P., special counsel to the Borrower, addressed to the Bank Group, in form
and substance reasonably satisfactory to the Bank Group.
(f) The favorable, signed opinion of Andrews & Kurth,
L.L.P., special counsel to the agent, addressed to the Bank Group, in form and
substance reasonably satisfactory to the Bank Group.
(f) Certificates of appropriate public officials as to
the existence and good standing of the Borrower in the States of Nevada and
Texas.
(g) The payment to the Bank Group of the fees due to them
as of such date under the Loan Documents, the payment to the Agent of the fees
due to it as of such date under the Agent's Side Letter, and the payment of all
legal fees and expenses of Andrews & Kurth L.L.P., special counsel to the
Agent, in connection with the preparation of this Agreement and the other Loan
Documents and the closing of this transaction.
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(h) Such other documents, certificates and opinions as
the Agent may reasonably request relating to this Agreement and the other Loan
Documents.
Section 3.02. Conditions Precedent to All Borrowings. The
obligation of each Bank to make any Loan shall be subject to the further
conditions precedent that (a) on the Borrowing Date of such Loan the following
statements shall be true, and the Borrower, by virtue of its delivery of a
Borrowing Request shall be deemed to have certified to the Bank Group as of
such Borrowing Date that (i) the representations and warranties contained in
Article IV are true and correct on and as of such Borrowing Date, both before
and after giving effect to such Loan, and as though made on and as of such
Borrowing Date, (ii) no Default has occurred and is continuing, or would result
from such Loan, and (iii) no Amortization Event has occurred and is continuing,
and (b) the Agent shall have received on or before such Borrowing Date such
other documents, certificates and opinions as the Agent may reasonably request
relating to this Agreement and the other Loan Documents, each in form and
substance reasonably satisfactory to the Agent.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
In order to induce the Bank Group to enter into this
Agreement, the Borrower hereby represents and warrants to the Bank Group as
follows:
Section 4.01. Corporate Existence; Etc. Each of the Borrower
and each of its Material Subsidiaries is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation, and is duly qualified or licensed to transact business as a
foreign corporation and is in good standing under the laws of each jurisdiction
in which the conduct of its operations or the ownership or leasing of its
properties requires such qualification or licensing, except where the failure
to be so qualified or licensed will not have a Material Adverse Effect on
either the Borrower individually or the Borrower and its Subsidiaries taken as
a whole. Schedule 4.01 sets forth a complete list (including the Borrower's
percentage equity interest therein) as of the date hereof of (a) all
Consolidated Subsidiaries (Part A), and (b) all Excluded Affiliates (Part B).
Section 4.02. Corporate Authority; Binding Obligations. Each
of the Borrower and each of its Material Subsidiaries has all requisite power
and authority, corporate or otherwise, to conduct its business and own, operate
and encumber its property. Each of the Borrower and each of its Subsidiaries
has all requisite power and authority, corporate or otherwise, to execute,
deliver and perform all of its obligations under the Loan Documents executed
by, or to be executed by, such Person. The execution, delivery and performance
of each of the Loan Documents to which the Borrower or any of its Subsidiaries
is a party and the consummation of the transactions contemplated thereby, have
been duly authorized by all necessary corporate and shareholder action. Each
of the Loan Documents to which the Borrower or any of its Subsidiaries is a
party has been duly executed and delivered by such Person, is in full force and
effect and constitutes the legal, valid and binding obligation of such Person,
enforceable against it in accordance with its terms, except as such
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enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditor's rights
generally and general principles of equity.
Section 4.03. No Conflict. The execution, delivery and
performance by the Borrower or any of its Subsidiaries of each Loan Document to
which such Person is a party and the consummation of each of the transactions
contemplated thereby do not and shall not, by the lapse of time, the giving of
notice or otherwise: (a) constitute a violation of any Requirement of Law or a
breach of any provision contained in the articles or certificate of
incorporation or bylaws of such Person, or any shareholder agreement pertaining
to such Person, or contained in any material agreement, instrument or document
to which it is now a party or by which it or its properties is bound, except
for such violations or breaches that will not have a Material Adverse Effect on
either the Borrower individually or the Borrower and its Subsidiaries taken as
a whole; or (b) result in or require the creation or imposition of any Lien
whatsoever upon any of the properties or assets of the Borrower or any of its
Subsidiaries.
Section 4.04. No Consent. No authorization, consent,
approval, license, or exemption of or filing or registration with, any
Governmental Authority or any other Person, was, is or will be necessary for
the valid execution, delivery or performance by the Borrower or any of its
Subsidiaries of any of the Loan Documents to which it is a party and the
consummation of each of the transactions contemplated thereby other than those
that the failure to obtain, file or make will not have a Material Adverse
Effect on either the Borrower individually or the Borrower and its Subsidiaries
taken as a whole.
Section 4.05. No Defaults or Violations of Law. No Default
has occurred and is continuing. No default (or event or circumstance occurred
which, but for the passage of time or the giving of notice, or both, would
constitute a default) has occurred and is continuing with respect to any note,
indenture, loan agreement, mortgage, lease, deed or other agreement to which
the Borrower or any of its Subsidiaries is a party or by which any of them or
their properties is bound, except for such defaults that will not have a
Material Adverse Effect on either the Borrower individually or the Borrower and
its Subsidiaries taken as a whole. Neither the Borrower nor any of its
Subsidiaries is in violation of any applicable Requirement of Law except for
such violations that will not have a Material Adverse Effect on either the
Borrower individually or the Borrower and its Subsidiaries taken as a whole.
Section 4.06. Financial Position. (a) The consolidated
balance sheet of the Borrower and its Subsidiaries as at December 31, 1994, and
the related consolidated statements of income, retained earnings and cash flows
for the fiscal year then ended, audited by KPMG Peat Marwick, independent
public accountants, copies of which have been furnished to the Bank Group,
fairly present the consolidated financial condition of the Borrower and its
Subsidiaries at such date and the consolidated results of their operations and
the consolidated cash flows of the Borrower and its Subsidiaries for the fiscal
period ended on such date, all in accordance with generally accepted accounting
principles applied on a consistent basis.
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(b) The unaudited consolidated balance sheet of the
Borrower and its Subsidiaries as at September 30, 1995, and the related
unaudited consolidated statements of income, retained earnings and cash flows
for the nine month period then ended, copies of which have been furnished to
the Bank Group, fairly present the consolidated financial condition of the
Borrower and its Subsidiaries at such date and the consolidated results of
their operations and the consolidated cash flows of the Borrower and its
Subsidiaries for the nine month period ended on such date, all in accordance
with generally accepted accounting principles applied on a consistent basis,
subject to normal year-end adjustments.
(c) Since September 30, 1995, there has been no material
adverse change in the consolidated financial condition or operations of the
Borrower and its Subsidiaries.
(d) Except as fully reflected in financial statements
referred to in paragraphs (a) and (b) of this Section 4.06, as of the date
hereof, there are no liabilities or obligations of the Borrower or any of its
Subsidiaries of any nature whatsoever (whether absolute, accrued, contingent or
otherwise and whether or not due) which, either individually or in aggregate,
would be material to either the Borrower individually or the Borrower and its
Subsidiaries taken as a whole.
Section 4.07. Litigation. There are no actions, suits or
proceedings pending or, to the knowledge of the Borrower, threatened against or
affecting the Borrower or any of its Subsidiaries, or the properties of any
such Person, before or by any Governmental Authority or other Person, which
could reasonably be expected to have a Material Adverse Effect on either the
Borrower individually or the Borrower and its Subsidiaries taken as a whole.
Section 4.08. Use of Proceeds. (a) The Borrower's uses of
the proceeds of the Loans are, and will continue to be, legal and proper
corporate uses (duly authorized by the Borrower's board of directors), and such
uses are permitted by the terms of the Loan Documents, including, without
limitation, Section 5.09, and all Requirements of Law.
(b) Neither the Borrower nor any of its Subsidiaries is
engaged in the business of extending credit for the purpose of purchasing or
carrying margin stock (within the meaning of Regulation U). No part of the
proceeds of any Loan will be used, directly or indirectly, (i) to purchase or
carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock or (ii) for the purpose of purchasing,
carrying or trading in any securities, in either case under such circumstances
as to involve any member of the Bank Group in a violation of Regulation U or
the Borrower or any of its Subsidiaries in a violation of Regulation X.
Following the application of the proceeds of each Loan, not more than 25% of
the value of the assets of the Borrower, or of the Borrower and its
Subsidiaries, which are subject to any arrangement with any member of the Bank
Group (herein or otherwise) whereby the right or ability of the Borrower or its
Subsidiaries to sell, pledge or otherwise dispose of such assets is in any way
restricted, will be such margin stock.
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Section 4.09. Governmental Regulation. Neither the Borrower
nor any of its Subsidiaries is subject to regulation under the Interstate
Commerce Act, as amended, the Investment Company Act of 1940, as amended, or
any other Requirement of Law such that the ability of any such Person to incur
indebtedness is limited or its ability to consummate the transactions
contemplated by this Agreement, the other Loan Documents or any document
executed in connection therewith is impaired.
Section 4.10. Disclosure. The schedules, documents,
exhibits, reports, certificates and other written statements and information
furnished by or on behalf of the Borrower or any of its Subsidiaries to the
Bank Group do not contain any material misstatement of fact, or omit to state a
material fact necessary in order to make the statements contained therein, in
light of the circumstances under which they were made, not misleading. Neither
the Borrower nor any of its Subsidiaries has intentionally withheld any fact
known to it which has or is reasonably likely to have a Material Adverse Effect
on either the Borrower individually or the Borrower and its Subsidiaries taken
as a whole.
Section 4.11. ERISA. The Borrower and its ERISA Affiliates
are in compliance in all material respects with ERISA and all Requirements of
Law related thereto. No Reportable Event has occurred and is continuing with
respect to any Plan. Neither the Borrower nor any of its ERISA Affiliates has
any accumulated funding deficiency (as defined in Section 302(a)(2) of ERISA)
under any Plan.
Section 4.12. Payment of Taxes. The Borrower has filed, and
has caused each of its Material Subsidiaries to file, all federal, state and
local tax returns and other reports that the Borrower and each such Material
Subsidiary are required by law to file and have paid all taxes and other
similar charges that are due and payable pursuant to such returns and reports,
except to the extent any of the same may be contested in good faith by
appropriate proceedings promptly initiated and diligently conducted, and with
respect to which adequate reserves have been set aside on the books of such
Person in accordance with generally accepted accounting principles.
Section 4.13. Title and Liens. Each of the Borrower and its
Material Subsidiaries has good and marketable title to each of the material
properties and assets of such Person. All properties of the Borrower and its
Material Subsidiaries and such Person's use thereof comply with applicable
zoning and use restrictions, except where the failure to so comply will not
have a Material Adverse Effect upon any such Person.
Section 4.14. Pari Passu Ranking. The obligations of the
Borrower to pay the principal of and interest on the Loans and all other
amounts payable under the Loan Documents will rank at least pari passu as to
payment with all other Debt of the Borrower now existing or hereafter incurred.
Section 4.15. Environmental Matters. The Borrower and each
of its Subsidiaries possess all environmental, health and safety licenses,
permits, authorizations, registrations, approvals
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and similar rights necessary under law or otherwise for such Person to conduct
its operations as now being conducted, each of such licenses, permits,
authorizations, registrations, approvals and similar rights is valid and
subsisting, in full force and effect and enforceable by such Person, and such
Person is in compliance with all terms, conditions or other provisions of such
permits, authorizations, registrations, approvals and similar rights except for
such noncompliance that will not have a Material Adverse Effect on either the
Borrower individually or the Borrower and its Subsidiaries taken as a whole.
Neither the Borrower nor any of its Subsidiaries has received any notices of
any violation of, noncompliance with, or remedial obligation under,
Requirements of Environmental Laws, and there are no writs, injunctions,
decrees, orders or judgments outstanding, or lawsuits, claims, proceedings,
investigations or inquiries pending or, to the knowledge of the Borrower,
threatened, relating to the ownership, use, condition, maintenance, or
operation of, or conduct of business related to, any property owned, leased or
operated by the Borrower or any of its Subsidiaries, or other assets of the
Borrower or any of its Subsidiaries, other than those violations, instances of
noncompliance, obligations, writs, injunctions, decrees, orders, judgments,
lawsuits, claims, proceedings, investigations or inquiries that will not have a
Material Adverse Effect on either the Borrower individually or the Borrower and
its Subsidiaries taken as a whole. There are no material obligations,
undertakings or liabilities arising out of or relating to Environmental Laws to
which the Borrower or any of its Material Subsidiaries has agreed to, assumed
or retained, or by which the Borrower or any of its Material Subsidiaries is
adversely affected, by contract or otherwise. Neither the Borrower nor any of
its Material Subsidiaries has received a written notice or claim to the effect
that such Person is or may be liable to any Person as the result of a Release
or threatened Release of a Hazardous Material.
ARTICLE V
AFFIRMATIVE COVENANTS
So long as any principal amount of any Loan, any amount of
interest accrued under any Loan Document, or any commitment, facility or other
fee, expense, compensation or any other amount payable to any member of the
Bank Group under the Loan Documents shall remain unpaid or outstanding or any
Bank shall have any Commitment hereunder:
Section 5.01. Reporting Requirements. The Borrower shall
deliver or cause to be delivered to the Agent (with sufficient copies for the
Agent to distribute the same to the other members of the Bank Group):
(a) As soon as available and in any event within forty
five (45) days after the end of each calendar quarter (other than the fourth
quarter):
(i) copies of the consolidated and consolidating balance
sheets of the Borrower and its Subsidiaries as of the end of such
period, and consolidated and consolidating statements of income and
retained earnings and a statement of cash flows of the Borrower and
its Subsidiaries for that fiscal period and for the portion of the
fiscal year ending with such period, in each case setting forth in
comparative form (on a consolidated, but not a
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consolidating basis) the figures for the corresponding period of the
preceding fiscal year, all in reasonable detail;
(ii) a certificate of a Responsible Officer of the
Borrower (A) stating that such financial statements fairly present the
consolidated financial position and results of operations of the
Borrower and its Subsidiaries in accordance with generally accepted
accounting principles consistently applied, subject to normal year-end
adjustments, (B) stating that no Default has occurred and is
continuing or, if any Default has occurred and is continuing, the
action the Borrower is taking or proposes to take with respect
thereto, (C) setting forth calculations demonstrating compliance by
the Borrower with Section 6.01 and Section 6.08, accompanied by a
summary (on an entity-by-entity basis) of Investments in Excluded
Affiliates and Funded Debt of the Borrower and its Consolidated
Subsidiaries, as well as any Funded Debt or Fixed Charges resulting
from a Guaranty of Debt of an Excluded Affiliate, and (D) identifying
any changes in the Consolidated Subsidiaries and Excluded Affiliates
since the date of the most recent certificate delivered pursuant to
Section 5.01(a)(ii) or Section 5.01(b)(ii) (or in the case of the
initial certificate, any changes from those specified in Schedule
4.01); and
(iii) a certificate of a Responsible Officer of the
Borrower setting forth calculations of the Margin Ratio (a "Margin
Ratio Certificate") as of the end of such quarter.
(b) As soon as available and in any event within ninety
(90) days after the end of each calendar year:
(i) copies of the consolidated and consolidating balance
sheet of the Borrower and its Subsidiaries as of the close of such
calendar year and consolidated and consolidating statements of income
and retained earnings and a statement of cash flows of the Borrower
and its Subsidiaries for such calendar year, in each case setting
forth in comparative form (on a consolidated basis) the figures for
the preceding calendar year, all in reasonable detail and accompanied
by an opinion thereon (which shall not be qualified by reason of any
limitation imposed by the Borrower) of independent accountants of
recognized national standing selected by the Borrower and reasonably
satisfactory to the Majority Banks, to the effect that such
consolidated financial statements have been prepared in accordance
with generally accepted accounting principles consistently applied
(except for changes in which such accountants concur) and that the
examination of such accounts in connection with such financial
statements has been made in accordance with generally accepted
auditing standards;
(ii) a certificate of a Responsible Officer of the
Borrower (A) stating that no Default has occurred and is continuing
or, if any Default has occurred and is continuing, the action the
Borrower is taking or proposes to take with respect thereto, (B)
setting forth calculations demonstrating compliance by the Borrower
with Section 6.01 and Section 6.08, accompanied by a summary (on an
entity-by-entity basis) of Investments in Excluded Affiliates and
Funded Debt of the Borrower and its Consolidated Subsidiaries, as well
as any
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Funded Debt or Fixed Charges resulting from a Guaranty of Debt of an
Excluded Affiliate, and (C) identifying any changes in the
Consolidated Subsidiaries and Excluded Affiliates since the date of
the most recent certificate delivered pursuant to Section 5.01(a)(ii)
or Section 5.01(b)(ii); and
(iii) a Margin Ratio Certificate as of the end of such
calendar year.
(c) Promptly after the sending or filing thereof, copies
of all proxy statements and reports which the Borrower or any of its
Subsidiaries sends to any holders of its respective securities, and copies of
all regular, periodic and special reports and all registration statements which
the Borrower or any of its Subsidiaries files with the Securities and Exchange
Commission or any national securities exchange.
(d) Promptly after the receipt thereof, copies of any
reports or notices that the Borrower may receive from the PBGC or the U. S.
Department of Labor indicating that a Reportable Event has occurred or an
accumulated funding deficiency (as defined in Section 302(a)(2) of ERISA)
exists under any Plan or that any such Person or its ERISA Affiliates has
failed to comply in all material respects with ERISA and all Requirements of
Law related thereto.
(e) As soon as possible and in any event within ten (10)
days after a Responsible Officer of the Borrower becomes aware of the
occurrence of a Default, a certificate of a Responsible Officer of the Borrower
setting forth details of such Default and the action which has been taken or is
to be taken with respect thereto.
(f) As soon as possible and in any event within ten (10)
days after a Responsible Officer of the Borrower becomes aware thereof, written
notice from a Responsible Officer of the Borrower of (i) the institution of or
threat of, any action, suit, proceeding, governmental investigation or
arbitration by any Governmental Authority or other Person against or affecting
the Borrower or any of its Subsidiaries that could have a Material Adverse
Effect on the Borrower or any of its Material Subsidiaries and that has not
previously disclosed in writing to the Bank Group pursuant to this Section
5.01(f) or (ii) any material development in any action, suit, proceeding,
governmental investigation or arbitration already disclosed to the Bank Group
pursuant to this Section 5.01(f).
(g) Promptly upon a Responsible Officer of the Borrower
obtaining knowledge thereof, notice of (i) any violation of, noncompliance
with, or remedial obligations under, Requirements of Environmental Laws that
could have a Material Adverse Effect on the Borrower or any of its Material
Subsidiaries, (ii) any Release or threatened Release affecting any property
owned, leased or operated by the Borrower or any of its Subsidiaries that could
have a Material Adverse Effect on the Borrower or any of its Material
Subsidiaries, (iii) the amendment or revocation of any permit, authorization,
registration, approval or similar right that could have a Material Adverse
Effect on the Borrower or any of its Material Subsidiaries or (iv) new or
proposed
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changes to Requirements of Environmental Laws that could have a Material
Adverse Effect on the Borrower or any of its Material Subsidiaries.
(h) Such other information as any member of the Bank
Group may from time to time reasonably request respecting the business,
properties, operations or condition, financial or otherwise, of the Borrower or
any of its Subsidiaries.
Section 5.02. Taxes; Claims. The Borrower will pay and
discharge, and will cause each of its Subsidiaries to pay and discharge, all
taxes, assessments and governmental charges or levies imposed upon such Person
or upon its income or profits, or upon any properties belonging to such Person,
prior to the date on which penalties attach thereto, and all lawful claims
which, if unpaid, might become a Lien upon any properties of the Borrower or
any of its Material Subsidiaries, other than any such tax, assessment, charge,
levy or claim which is being contested in good faith by appropriate proceedings
promptly initiated and diligently conducted, and with respect to which adequate
reserves are set aside on the books of such Person in accordance with generally
accepted accounting principles.
Section 5.03. Compliance with Laws. The Borrower will
comply, and will cause each of its Subsidiaries to comply, with all applicable
Requirements of Law imposed by, any Governmental Authority, noncompliance with
which might have a Material Adverse Effect on the Borrower or any of its
Material Subsidiaries. Without limitation of the foregoing, the Borrower
shall, and shall cause each of its Subsidiaries to, comply with all
Requirements of Environmental Laws, operate its properties and conduct its
business in accordance with good environmental practices, and handle, treat,
store and dispose of Hazardous Materials in accordance with such practices,
except where the failure to do so will not have a Material Adverse Effect on
the Borrower or any of its Material Subsidiaries.
Section 5.04. Insurance. The Borrower will maintain, and
will cause each of its Subsidiaries to maintain, with financially sound,
responsible and reputable insurance companies or associations, insurance, or
self- insure against such risks, and in such amounts (and with co-insurance and
deductibles), as are usually insured against by Persons of established
reputation engaged in the same or similar businesses and similarly situated.
Section 5.05. Corporate Existence; Etc. The Borrower will
preserve and maintain, and (except as otherwise permitted by Section 6.05) will
cause each of its Material Subsidiaries to preserve and maintain, its
existence, rights, franchises and privileges in the jurisdiction of its
incorporation, and qualify and remain qualified, and cause each of its Material
Subsidiaries to qualify and remain qualified, as a foreign corporation in each
jurisdiction in which such qualification is material to the business and
operations of such Person or the ownership or leasing of the properties of such
Person.
Section 5.06. Inspections; Etc. From time to time during
regular business hours upon reasonable prior notice, the Borrower will permit,
and will cause each of its Subsidiaries to permit,
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any agents or representatives of any member of the Bank Group to examine and
make copies of and abstracts from the records and books of account of, and
visit the properties of, the Borrower and its Subsidiaries and to discuss the
affairs, finances and accounts of any such Person with any of their respective
independent public accountants, officers or directors, all at the expense of
the Borrower.
Section 5.07. Maintenance of Properties. The Borrower will
maintain and preserve, and will cause each of its Material Subsidiaries to
maintain and preserve, all of its material properties necessary for the proper
conduct of its business in good working order and condition, ordinary wear and
tear excepted.
Section 5.08. Accounting Systems; Etc. The Borrower will
keep, and will cause each of its Subsidiaries to keep, adequate records and
books of account in which complete entries will be made in accordance with
generally accepted accounting principles consistently applied (subject to year
end adjustments), reflecting all financial transactions of such Person. The
Borrower shall maintain or cause to be maintained a system of accounting
established and administered in accordance with sound business practices to
permit preparation of financial statements in conformity with generally
accepted accounting principles, and each of the financial statements described
herein shall be prepared from such system and records.
Section 5.09. Use of Loan Proceeds. The Borrower will use
the proceeds of all Loans hereunder for the following purposes: (a) for
general corporate purposes of the Borrower and its Consolidated Subsidiaries,
(b) payment of all amounts owing by the Borrower and Dixie under the Existing
Credit Agreement and the Dixie Credit Agreement, respectively, (c) to fund any
cash consideration payable by the Borrower or any of its Consolidated
Subsidiaries in connection with a merger or acquisition which is not prohibited
by Section 6.07 or Section 6.08, or (d) to fund Investments in Excluded
Affiliates permitted by Section 6.08; provided that such uses are, at the time
made, otherwise consistent with the terms of this Agreement and all
Requirements of Law and no Default would result therefrom.
Section 5.10. Further Assurances in General. The Borrower at
its expense shall, and shall cause each of its Subsidiaries to, promptly
execute and deliver all such other and further documents, agreements and
instruments in compliance with or accomplishment of the covenants and
agreements of the Borrower or any of its Subsidiaries in the Loan Documents,
including, without limitation, the accomplishment of any condition precedent
that may have been waived by the Banks prior to the initial Borrowing or any
subsequent Borrowings.
ARTICLE VI
NEGATIVE COVENANTS
So long as any principal amount of any Loan, any amount of
interest accrued under any Loan Document, or any commitment, facility or other
fee, expense, compensation or any other amount payable to any member of the
Bank Group under the Loan Documents shall remain unpaid or outstanding or any
Bank shall have any Commitment hereunder:
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Section 6.01. Financial Covenants. The Borrower will not:
(a) Interest Coverage Ratio. Permit the ratio of (i) Net
Cash Flow to (ii) Interest Expense, measured as of the last day of any calendar
quarter for the twelve month period then ended, to be less than 3.75 to 1.0.
(b) Fixed Charge Coverage Ratio. Permit the ratio of (i)
Net Cash Flow to (ii) Fixed Charges, measured as of the last day of any
calendar quarter for the twelve month period then ended, to be less than 1.25
to 1.0.
(c) Funded Debt/Capitalization. Permit Funded Debt to
equal or exceed sixty percent (60%) of the sum of Funded Debt and Net Worth,
measured as of the last day of any calendar quarter.
(d) Debt Coverage Ratio. Permit the ratio of (i) Funded
Debt as of the last day of any calendar quarter to (ii) Modified Net Cash Flow
for the twelve month period then ended, to equal or exceed 3.5 to 1.0.
(e) Minimum Net Worth. Permit Net Worth, measured as of
the last day of any calendar quarter, to be less than the sum of (i)
$175,000,000, plus (ii) the lesser of (A) fifty percent (50%), if positive,
zero percent (0%), if negative, of Net Income for any fiscal year ending after
the date hereof and (B) $75,000,000.
(f) Intangible Asset Ratio. Permit Intangible Assets to
exceed forty percent (40%) of Net Worth as of the last day of any calendar
quarter.
Section 6.02. Restrictions on Debt. (a) The Borrower will
not, and will not permit any of its Consolidated Subsidiaries to, create,
incur, assume or suffer to exist, any Debt other than:
(i) Debt of the Borrower under the Loan Documents;
(ii) Debt in respect of reimbursement obligations under
letters of credit or similar instruments not exceeding $5,000,000;
(iii) unsecured Debt owing by the Borrower to any
Consolidated Subsidiary;
(iv) unsecured Debt owing by any Consolidated Subsidiary
to the Borrower or any other Consolidated Subsidiary so long as such
Debt ranks pari passu with all other Debt of such Consolidated
Subsidiary (except as contemplated by Section 6.02(d));
(v) Debt (other than Derivative Obligations) of
Consolidated Subsidiaries, so long as (A) no Default or Event of
Default exists on the date such Debt is incurred or would
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result from the incurrence of such Debt, and (B) the aggregate amount
of such Debt does not exceed twenty percent (20%) of Net Worth;
(vi) Debt (other than Derivative Obligations) of the
Borrower, so long as (A) such Debt is not Guaranteed by any Subsidiary
of the Borrower and (B) no Default or Event of Default exists on the
date such Debt is incurred or would result from the incurrence of such
Debt; and
(vii) Derivative Obligations of the Borrower and its
Consolidated Subsidiaries, so long as (A) no Default or Event of
Default exists on the date such Derivative Obligations are incurred or
would result from the incurrence thereof and (B) the aggregate amount
of such Derivative Obligations do not exceed ten percent (10%) of Net
Worth.
(b) The Borrower will not, and will not permit any of
its Consolidated Subsidiaries to, create, incur, assume or suffer to exist, any
Guaranties or other contingent liabilities other than (i) Guaranties by
Consolidated Subsidiaries that constitute Debt permitted by Section 6.02(a)(v),
(ii) Guaranties by the Borrower that constitute Debt permitted by Section
6.02(a)(vi), (iii) other contingent liabilities (including undrawn letters of
credit) in an amount not exceeding $5,000,000 at any time, and (iv) contingent
liabilities arising under guaranties by the Borrower or its Subsidiaries of the
obligations of the Borrower's Subsidiaries under Environmental Laws, including
the Comprehensive Environmental Response, Compensation and Liability Act, as
amended, and the Oil Pollution Act of 1990, as amended.
(c) The Borrower will not permit any Excluded Affiliate
to create, incur, assume or suffer to exist any Debt unless the agreements
evidencing or providing for such Debt contain a provision to the effect that
the holders of such Debt shall have no recourse against the Borrower or any of
its Consolidated Subsidiaries, or any of their respective assets, for the
payment of such Debt; provided, however, that the foregoing shall not apply to
any such Debt of an Excluded Affiliate that is covered by a Guaranty from the
Borrower or a Consolidated Subsidiary permitted by Section 6.02(b).
(d) The Borrower shall not permit Dixie to create, incur,
assume or suffer to exist any Debt or other obligation that would constitute
"Senior Obligations" (as such term is defined in that certain Revolving Credit
Loan Agreement dated as of July 31, 1990, as amended, between Dixie, as
borrower, and the Borrower, as lender) other than Debt arising under the Dixie
Note Purchase Agreement.
Section 6.03. Restriction on Liens. The Borrower will not,
and will not permit any of its Consolidated Subsidiaries to, create, incur,
assume or suffer to be created, assumed or incurred or to exist, any Lien upon
any of their property or assets, whether now owned or hereafter acquired other
than:
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(a) Liens arising after the date hereof pursuant to
Section 6.9 of the Dixie Note Purchase Agreement;
(b) Liens against assets of the Borrower or a
Consolidated Subsidiary securing Debt of such Person, so long as (i) the
aggregate amount of all such secured Debt does not exceed $5,000,000, and (ii)
such secured Debt is otherwise permitted by Section 6.02(a)(vi), in the case of
the Borrower, or Section 6.02(a)(v), in the case of a Consolidated Subsidiary;
(c) Liens imputed to Capital Leases under which a
Consolidated Subsidiary is the lessee, so long as the Debt of such Consolidated
Subsidiary in respect of such Capital Lease is permitted by Section 6.02(a)(v);
(d) Liens on property of any Consolidated Subsidiary that
attach concurrently with such Consolidated Subsidiary's purchase thereof, and
securing only Debt of such Consolidated Subsidiary permitted by Section
6.02(a)(v) and incurred to finance all or part of the purchase price of such
property, and any extensions and renewals of such Liens so long as the Debt
secured thereby is not greater than the Debt secured immediately prior to such
extension and renewal and such Debt is permitted by Section 6.02(a)(v) at the
time of such extension and renewal;
(e) Liens for taxes, assessments or governmental charges
or levies if the same shall at the time not be delinquent or thereafter may be
paid without penalty, or the validity of which are being contested in good
faith by appropriate proceedings promptly initiated and diligently conducted
and as to which adequate reserves shall have been set aside on the books of the
Borrower in accordance with generally accepted accounting principles;
(f) carriers', warehousemen's and mechanics' liens and
other similar Liens which arise in the ordinary course of business, do not
materially impair the use or value of its properties or assets or the conduct
of its business, and secure obligations that are not yet due and payable or are
being contested in good faith by appropriate proceedings promptly initiated and
diligently conducted and as to which adequate reserves shall have been set
aside on the books of the Borrower in accordance with generally accepted
accounting principles or as to which adequate bonds shall have been obtained;
(g) pledges or deposits to secure obligations under
workmen's compensation laws or similar legislation or to secure public or
statutory obligations of the Borrower;
(h) Liens created in favor of a Governmental Authority to
secure partial, progress, advance or other contractual payments pursuant to any
agreement or statute;
(i) attachment, judgment and other similar Liens arising
in connection with court proceedings, provided the execution or other
enforcement of such Liens is effectively stayed and the claims secured thereby
are being actively contested in good faith and by appropriate proceedings in
such manner as not to have the property subject to such Liens forfeitable; and
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(j) easements, rights-of-way, reservations, exceptions,
minor encroachments, restrictions and similar charges created or incurred in
the ordinary course of business which in the aggregate do not materially
interfere with the business operations of the Borrower and its Subsidiaries
taken as a whole, and which were not incurred in connection with the borrowing
of money.
Section 6.04. Restrictions on Negative Pledge. The Borrower
will not, and will not permit any of its Subsidiaries to, enter into any
agreement prohibiting or having the effect of prohibiting the Borrower and its
Subsidiaries from granting a Lien against or otherwise disposing of the capital
stock, promissory notes or other equity or debt interests of any Consolidated
Subsidiary, other than (i) this Agreement, and (ii) in the case of Dixie, the
provisions of Section 7.4 of the Dixie Note Purchase Agreement as in effect on
April 23, 1993 and as thereafter amended to lessen or eliminate the
restrictions contained therein.
Section 6.05. Consolidated Subsidiary Dispositions. The
Borrower will not, and will not permit any of its Subsidiaries to, sell,
transfer or otherwise dispose of (i) any capital stock or other equity
interests of any Consolidated Subsidiary or (ii) all or substantially all of
the assets of any Consolidated Subsidiary (whether in a single transaction or
series of transactions), other than (A) any such disposition made to the
Borrower or a wholly- owned Consolidated Subsidiary, (B) any disposition of
capital stock or other equity interests in Dixie so long as after giving effect
to such disposition the Borrower owns (either directly or indirectly through a
wholly-owned Consolidated Subsidiary) at least 90% of the capital stock or
other equity interests of Dixie and (C) the disposition of the capital stock of
Mariner Reinsurance Company, a company organized under the laws of Bermuda and
a Consolidated Subsidiary, arising out of the liquidation and dissolution of
such entity.
Section 6.06. Restrictions on Consolidated Subsidiary
Distributions. The Borrower will not, and will not permit any of its
Subsidiaries to, enter into any agreement restricting the ability of any
Consolidated Subsidiary to (a) pay dividends or make other distributions on the
capital stock or other equity interests of such Consolidated Subsidiary or (b)
make loans or advances to the Borrower or any Subsidiary of the Borrower, other
than (i) this Agreement, and (ii) in the case of Dixie, the provisions of
Section 7.4 of the Dixie Note Purchase Agreement as in effect on April 23, 1993
and as thereafter amended to lessen or eliminate the restrictions contained
therein.
Section 6.07. Mergers and Acquisitions. The Borrower will
not, and will not permit any of its Consolidated Subsidiaries to, acquire
(whether in one transaction or a series of transactions) all or substantially
all of the assets of any Person or the capital stock or securities of any
Person, or consolidate with or merge into any Person or permit any Person to
consolidate or merge into it, unless: (a) in the case of an acquisition, such
acquisition is not a Hostile Acquisition; (b) any business acquired in such
transaction is similar or related to the businesses engaged in by the Borrower
and its Consolidated Subsidiaries on the date hereof; (c) in the case of a
merger (i) if the Borrower is a party to such merger, the Borrower is the
surviving entity and the management of the Borrower shall be substantially
unchanged and (ii) if a Consolidated Subsidiary is a party to such merger,
either the Borrower or a Consolidated Subsidiary is the surviving entity; (d)
immediately
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after giving effect and pro forma effect thereto, no Default shall exist; and
(e) if the Borrower incurs Funded Debt in excess of $25,000,000 to finance, or
otherwise in connection with, any acquisition or merger otherwise permitted by
this Agreement, then (i) the ratio of (A) the total consideration given by the
Borrower and its Subsidiaries in connection therewith to (B) the projected net
cash flow from the assets acquired pursuant to such transaction for the
twelve-month period immediately following the closing of such transaction, must
not be greater than 8.00 to 1.00 (for purposes of this clause (a), "projected
net cash flow" shall mean the Borrower's estimate of the operating earnings
from the assets acquired pursuant to such transaction for the twelve (12) month
period immediately following the closing of such transaction, before tax, plus
any depreciation and amortization included in such estimated operating
earnings, all determined in accordance with generally accepted accounting
principles and based upon such assumptions as are reasonably acceptable to the
Majority Banks) and (ii) the Agent shall have received (A) a certificate of a
Responsible Officer of the Borrower showing satisfaction of the condition set
forth in Section 6.07(e)(i), and (B) such other documents, opinions and
information that the Agent or the Majority Banks may reasonably request in
order to substantiate the same.
Section 6.08. Restricted Investments. (a) The Borrower will
not, and will not permit any Consolidated Subsidiary to, make, or enter into
any commitment to make, any Restricted Investment if a Default exists either
before or after giving effect thereto.
(b) The Borrower will not, and will not permit any
Consolidated Subsidiary to, make, or enter into any commitment to make, or
permit to exist any Restricted Investment other than (i) the Existing Universal
Investment and (ii) other Restricted Investments that do not in the aggregate
exceed twenty percent (20%) of Net Worth.
(c) The Borrower will not permit the sum (without
duplication) of (i) all Restricted Investments, made by the Borrower and its
Consolidated Subsidiaries (excluding the Existing Universal Investment), plus
(ii) all commitments by the Borrower and its Consolidated Subsidiaries to make
Restricted Investments, plus (iii) all Debt (other than Derivative Obligations)
of Consolidated Subsidiaries, to at any time exceed thirty-five percent (35%)
of Net Worth.
Section 6.09. Lines of Business. The Borrower will not, and
will not permit any of its Consolidated Subsidiaries to, directly or indirectly
engage to a material extent in any business other than those in which it is
presently engaged or that are directly related thereto, or discontinue any of
its existing lines of business or substantially alter its method of doing
business.
Section 6.10. Transactions with Affiliates. Neither the
Borrower, nor any of its Consolidated Subsidiaries, will enter into any
transaction with an Affiliate other than (a) transactions entered into in the
ordinary course of business and upon terms no less favorable than those that
the Borrower or its Consolidated Subsidiary, as applicable, could obtain in an
arms length transaction with a Person that is not an Affiliate and (b)
transactions between the Borrower and any of its Consolidated Subsidiaries, or
between such Consolidated Subsidiaries, that do not and will not, either
directly or indirectly, cause a Default.
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Section 6.11. Universal Stockholders Agreement. The Borrower
will not agree to, or otherwise permit, any amendment or other modification to
the Universal Stockholders Agreement.
ARTICLE VII
DEFAULT
Section 7.01. Events of Default. If any of the following
events (each an "Event of Default") shall occur and be continuing:
(a) the Borrower shall fail to pay when due any
installment of principal of the Loans; or
(b) the Borrower shall fail to pay any interest on any
Loan or any arrangement fee, commitment fee, administration fee, commission,
expense, compensation, reimbursement or other amount when due, or any Person
(other than a member of the Bank Group) shall fail to pay any amount payable by
such Person hereunder or under any other Loan Document or other agreement or
security document contemplated by or delivered pursuant to or in connection
with this Agreement when due, and, in either event, such failure shall continue
for five (5) Business Days; or
(c) the Borrower shall fail to perform any term, covenant
or agreement contained in Article VI or Section 5.01(e) of this Agreement; or
(d) the Borrower shall fail to perform any term, covenant
or agreement contained in this Agreement (other than those referenced in
subsections (a), (b) and (c) of this Section 7.01) and such failure shall not
have been remedied within ten (10) days after the earlier of (i) notice thereof
from the Agent to the Borrower or (ii) discovery thereof by the Borrower; or
(e) any Person (other than a member of the Bank Group)
shall fail to perform any term, covenant or agreement contained in any Loan
Document (other than those referenced in subsections (a), (b), (c) and (d) of
this Section 7.01) to which it is a party and such failure shall not have been
remedied within thirty (30) days after the earlier of (i) notice thereof from
the Agent to the Borrower or (ii) discovery thereof by the Borrower; or
(f) any representation or warranty made by any Person
(other than a member of the Bank Group), or any such Person's officers, in any
Loan Document to which it is a party or in any certificate, agreement,
instrument or statement contemplated by or delivered pursuant to, or in
connection with, any Loan Document shall prove to have been incorrect in any
material respect when made; or
(g) the Borrower or any of its Subsidiaries shall (i)
default in the payment of any Debt (other than the amounts referred to in
subsections (a) and (b) of this Section 7.01) owing by such Person that
constitutes Material Debt as of the date of such default, or any interest or
premium thereon, when due (or, if permitted by the terms of the relevant
document, within any applicable
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grace period), whether such Debt shall become due by scheduled maturity, by
required prepayment, by acceleration, by demand or otherwise; or (ii) fail to
perform any term, covenant or condition on its part to be performed under any
agreement or instrument evidencing, securing or relating to any such Debt, when
required to be performed, and such failure shall continue after the applicable
grace period, if any, specified in such agreement or instrument, if the effect
of such failure is to accelerate, or to permit the holder or holders of such
Debt to accelerate, the maturity of such Debt; or
(h) any Loan Document shall (other than with the consent
of the Majority Banks), at any time after its execution and delivery and for
any reason, cease to be in full force and effect (except for such provisions
that the Majority Banks determine are not material either individually or in
the aggregate), or shall be declared to be null and void, or the validity or
enforceability thereof shall be contested by any Person party to the Loan
Documents or any such Person shall deny that it has any or further liability or
obligation under any Loan Document; or
(i) any Reportable Event that might constitute grounds
for the termination of any Plan, or for the appointment by an appropriate
United States district court of a trustee to administer any Plan, shall have
occurred and be continuing for at least thirty (30) days, or any Plan shall be
terminated, or a trustee shall be appointed by an appropriate United States
district court to administer any Plan, or the PBGC shall institute proceedings
to terminate any Plan or to appoint a trustee to administer any Plan, and, in
any such event, the then-current value of such Plan's benefits guaranteed under
Title IV of ERISA at the time shall exceed by more than $5,000,000 the
then-current value of such Plan's assets allocable to such benefits at such
time; or
(j) the Borrower or any of its Subsidiaries shall be
adjudicated insolvent, or shall make a general assignment for the benefit of
creditors, or any proceeding shall be instituted by any such Person seeking to
adjudicate it insolvent, 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 the Borrower or any of its Subsidiaries shall take any
action in furtherance of any of the actions set forth above in this Section
7.01(j); or
(k) any proceeding of the type referred to in Section
7.01(j) is filed, or any such proceeding is commenced against the Borrower or
any of its Subsidiaries or any such Person by any act indicates its approval
thereof, consent thereto or acquiescence therein, or an order for relief is
entered in an involuntary case under the bankruptcy law of the United States,
or an order, judgment or decree is entered appointing a trustee, receiver,
custodian, liquidator or similar official or adjudicating any such Person
insolvent, or approving the petition in any such proceedings, and such order,
judgment or decree remains in effect for sixty (60) days; or
(l) a final judgment or order for the payment of money in
excess of $5,000,000 (net of acknowledged, uncontested insurance coverage from
a financially sound, responsible and reputable insurance company or
association) shall be rendered against the Borrower or any of its
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Subsidiaries and either (i) enforcement proceedings shall have been commenced
by any creditor upon such judgment or order or (ii) a stay of enforcement of
such judgment or order by reason of a pending appeal or otherwise, shall not be
in effect for any period of thirty (30) consecutive days; or
(m) a Change of Control occurs with respect to the
Borrower;
then, (i) upon the occurrence of any Event of Default described in Section
7.01(j) or Section 7.01(k), (A) the Commitments shall automatically terminate
and (B) the entire unpaid principal amount of all Loans, all interest accrued
and unpaid thereon, and all other amounts payable by the Borrower or any other
Person under this Agreement, the Notes and the other Loan Documents shall
automatically become immediately due and payable, without presentment for
payment, demand, protest, notice of intent to accelerate, notice of
acceleration or further notice of any kind, all of which are hereby expressly
waived by the Borrower and each other Person, and (ii) upon the occurrence of
any Event of Default, the Agent may, and upon the direction of the Majority
Banks shall, by notice to the Borrower (A) declare the Commitments to be
terminated, whereupon the same shall forthwith terminate and (B) declare the
entire unpaid principal amount of all Loans, all interest accrued and unpaid
thereon, and all other amounts payable by the Borrower or any other Person
under this Agreement, the Notes and the other Loan Documents, to be forthwith
due and payable, whereupon all such amounts shall become and be forthwith due
and payable, without presentment for payment, demand, protest, notice of intent
to accelerate, notice of acceleration or further notice of any kind, all of
which are hereby expressly waived by the Borrower and each other Person.
Section 7.02. Setoff in Event of Default. Upon the
occurrence and during the continuance of any Event of Default, each member of
the Bank Group is hereby authorized, at any time and from time to time, without
notice to the Borrower (any such notice being expressly waived by the Borrower)
and to the fullest extent permitted by applicable law, to setoff and apply any
and all deposits at any time held and other indebtedness at any time owing by
such member of the Bank Group (or any branch, subsidiary or affiliate of such
member of the Bank Group) to or for the credit or the account of the Borrower
against any and all of the obligations of the Borrower or any other Person, now
or hereafter existing under this Agreement, the Notes or the other Loan
Documents, irrespective of whether or not such member of the Bank Group shall
have made any demand for satisfaction of such obligations and although such
obligations may be unmatured. Any member of the Bank Group exercising such
right agrees to notify the Borrower promptly after any such setoff and
application made by such Person; provided, that the failure to give such notice
shall not affect the validity of such setoff and application. The rights of
the Bank Group under this Section 7.02 are in addition to other rights and
remedies (including, without limitation, other rights of setoff) which the Bank
Group may have hereunder or under any applicable law.
Section 7.03. No Waiver; Remedies. No failure on the part of
any member of the Bank Group to exercise, or any delay in exercising, any right
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof
or the exercise of any other right. The remedies provided in this Agreement
are
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cumulative and not exclusive of any remedies provided in any of the other Loan
Documents or by applicable law.
ARTICLE VIII
THE AGENT AND THE FUNDS ADMINISTRATOR
Section 8.01. Authorization and Action. Each Bank hereby
appoints and authorizes the Agent and the Funds Administrator to take such
action in such capacity on such Bank's behalf and to exercise such powers under
this Agreement and the other Loan Documents as are delegated to the Agent and
the Funds Administrator, as the case may be, by the terms hereof and thereof,
together with such powers as are reasonably incidental thereto. As to any
matters not expressly provided for by this Agreement (including, without
limitation, enforcement or collection of the Notes or of amounts owing under
the other Loan Documents), the Agent and the Funds Administrator shall not be
required to exercise any discretion or take any action, but such Person shall
be required to act or to refrain from acting (and shall be fully protected in
so acting or refraining from acting) upon the instructions of the Majority
Banks, and such instructions shall be binding upon all Banks and any other
holders of Notes; provided, however, that the Agent and the Funds Administrator
shall not be required to take any action which exposes such Person to personal
liability or which is contrary to the Loan Documents or applicable law. Each
of the Agent and the Funds Administrator is hereby expressly authorized on
behalf of the other members of the Bank Group, (a) to receive on behalf of each
of the other members of the Bank Group any payment of principal of or interest
on the Loans outstanding hereunder and all other amounts accrued hereunder paid
to such Persons, and promptly to distribute to each other member of the Bank
Group its proper share of all payments so received; (b) in the case of the
Agent only, to give notice within a reasonable time on behalf of each other
member of the Bank Group to the Borrower of any Default of which the Agent has
actual knowledge as provided in Section 8.09; (c) to distribute to the other
members of the Bank Group copies of all notices, agreements and other material
as provided for in this Agreement as received by such Person; and (d) to
distribute to the Borrower any and all requests, demands and approvals received
by such Person from any other member of the Bank Group. Nothing herein
contained shall be construed to constitute either the Agent or the Funds
Administrator as a trustee for any holder of the Notes or of a participation
therein, nor to impose on any such Person any duties or obligations other than
those expressly provided for in the Loan Documents.
Section 8.02. Reliance, Etc. The Agent, the Funds
Administrator and their respective directors, officers, agents or employees
shall not be liable for any action taken or omitted to be taken by it or them
under or in connection with this Agreement, except for such acts or omissions
of such Person constituting gross negligence or willful misconduct on the part
of such Person (IT BEING THE EXPRESS INTENTION OF THE PARTIES THAT THE AGENT,
THE FUNDS ADMINISTRATOR AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES AND
AGENTS SHALL HAVE NO LIABILITY FOR ACTIONS AND OMISSIONS HEREUNDER RESULTING
THAT CONSTITUTE ORDINARY NEGLIGENCE, WHETHER SOLE OR CONTRIBUTORY) OR RESULT IN
STRICT
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LIABILITY. Without limitation of the generality of the foregoing, each of the
Agent and the Funds Administrator: (a) 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 Bank which is the payee of such Note, as
assignor, and an Eligible Assignee, as assignee, as provided in Section 9.02,
and the Agent notifies such Person thereof; (b) 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; (c) makes no warranty or representation to any Bank and
shall not be responsible to any Bank for any statements, warranties or
representations (whether written or oral) made in or in connection with this
Agreement or the other Loan Documents; (d) 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 or the other Loan Documents on the
part of the Borrower or any other Person or to inspect the property (including
the books and records) of the Borrower or any other Person; (e) shall not be
responsible to any Bank for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of any Loan Document, any
collateral provided for therein, or any other instrument or document furnished
pursuant thereto; and (f) 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 telecopier, telegram, cable or telex) believed by
it to be genuine and signed or sent by the proper party or parties. The Agent,
the Funds Administrator and their respective directors, officers, employees or
agents shall not have any responsibility to the Borrower on account of the
failure or delay in performance or breach by any Bank of any of its obligations
hereunder or to any Bank on account of the failure of or delay in performance
or breach by any other Bank or the Borrower of any of their respective
obligations hereunder or in connection herewith.
Section 8.03. TCB and Affiliates. Without limiting the
right of any other Bank to engage in any business transactions with the
Borrower or any of its Affiliates, with respect to its Commitment, the Loans
made by it, the Note issued to it, and its interest in the Loan Documents, TCB
shall have the same rights and powers under this Agreement as any other Bank
and may exercise the same as though it were not the Funds Administrator or the
Agent; and the term "Bank" or "Banks" shall, unless otherwise expressly
indicated, include TCB in its individual capacity. TCB, or any of its
Affiliates, may be engaged in, or may hereafter engage in, one or more loan,
letter of credit, leasing or other financing activities not the subject of the
Loan Documents (such financing activities of TCB being, collectively, the
"Other Financings") with the Borrower or any of its Affiliates, or may act as
trustee on behalf of, or depositary for, or otherwise engage in other business
transactions with the Borrower or any of its Affiliates (all Other Financings
and other such business transactions of TCB being, collectively, the "Other
Activities") with no responsibility to account therefor to the Banks. Without
limiting the rights and remedies of the Banks specifically set forth in the
Loan Documents, no other Bank shall have any interest in (a) any Other
Activities, (b) any present or future guarantee by or for the account of the
Borrower not contemplated or included in the Loan Documents, (c) any present or
future offset exercised by the Agent or the Funds Administrator in respect of
any such Other Activities, (d) any present or future property taken as security
for any such Other Activities or (e) any property now or hereafter in the
possession or
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control of the Agent or the Funds Administrator which may be or become security
for the obligations of the Borrower under the Loan Documents by reason of the
general description of indebtedness secured, or of property, contained in any
other agreements, documents or instruments related to such Other Activities;
provided, however, that if any payment in respect of such guarantees or such
property or the proceeds thereof shall be applied to reduction of the
obligations evidenced hereunder and by the Notes, then each Bank shall be
entitled to share in such application according to its pro rata portion of such
obligations.
Section 8.04. Bank Credit Decision. Each Bank acknowledges
that it has, independently and without reliance upon any other member of the
Bank Group and based on the financial statements referred to in Section 4.06
and such other documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement. Each Bank also
acknowledges that it will, independently and without reliance upon any other
member of the Bank Group 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 8.05. Indemnification. The Banks agree to indemnify
each of the Agent and the Funds Administrator (to the extent not reimbursed by
the Borrower), ratably according to their respective Commitment Percentages,
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 or the Funds Administrator, as the case may be, in any way
relating to or arising out of this Agreement or the other Loan Documents or any
action taken or omitted by the Agent or the Funds Administrator under this
Agreement or the other Loan Documents, provided, that no Bank shall be liable
for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from such
Person's gross negligence or willful misconduct. IT IS THE EXPRESS INTENTION
OF THE PARTIES HERETO THAT THE AGENT AND THE FUNDS ADMINISTRATOR SHALL BE
INDEMNIFIED AND HELD HARMLESS AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS,
LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES OR
DISBURSEMENTS OF ANY KIND ARISING OUT OF OR RESULTING FROM THE ORDINARY
NEGLIGENCE (WHETHER SOLE OR CONTRIBUTORY) OR STRICT LIABILITY OF SUCH PERSON.
The Agent and the Funds Administrator shall not be required to do any act
hereunder or under any other document or instrument delivered hereunder or in
connection herewith or take any action toward the execution or enforcement of
the agencies hereby created, or to prosecute or defend any suit in respect of
this Agreement or the Loan Documents or any collateral security, unless
indemnified to its satisfaction by the holders of the Notes against loss, cost,
liability, and expense. If any indemnity furnished to the Agent or the Funds
Administrator for any purpose is, in the opinion of such Person insufficient or
becomes impaired, such Person may call for additional indemnity and not
commence or cease to do the acts indemnified against until such additional
indemnity is furnished. Without limitation of the foregoing, each Bank agrees
to reimburse the Agent and the Funds Administrator promptly upon demand for its
ratable share of any out-of-pocket expenses (including counsel fees) incurred
by such Person in connection with the
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preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of,
or legal advice in respect of rights or responsibilities under, this Agreement
and the other Loan Documents, to the extent that the Agent and the Funds
Administrator are not reimbursed for such expenses by the Borrower.
Section 8.06. Employees of the Agent, Etc. Each of the Agent
and the Funds Administrator may execute any of their respective duties under
this Agreement, the other Loan Documents and any instrument, agreement or
document executed, issued or delivered pursuant hereto or thereto or in
connection herewith or therewith, by or through employees, agents and
attorneys-in-fact, and shall not be answerable for the default or misconduct of
any such employee, agent or attorney-in-fact selected by it with reasonable
care. Each of the Agent and the Funds Administrator may, and upon the written
instruction of the Majority Banks shall, enforce on behalf of the Banks any
claims which the Agent, the Funds Administrator and/or the Banks may have
against any such employee, agent or attorney-in-fact, and any recovery
therefrom shall be applied for the pro rata benefit of the Banks.
Section 8.07. Successor Agent. The Agent may resign at any
time by giving written notice thereof to the other members of the Bank Group
and the Borrower and may be removed at any time with or without cause by the
Majority Banks. Upon any such resignation or removal, the Majority Banks shall
have the right to appoint a successor Agent. If no successor Agent shall have
been so appointed by the Majority Banks, and shall have accepted such
appointment, within thirty (30) days after the retiring Agent's giving of
notice of resignation or the Majority Banks' removal of the retiring Agent,
then the retiring Agent may, on behalf of the Banks, appoint a successor Agent,
which shall be a commercial bank organized 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, subject to the requirement that such retiring
Agent will execute such documents and take such actions as may be necessary or
desirable to cause the successor Agent to be vested with all such rights,
powers, privileges and duties. After any retiring Agent's resignation or
removal hereunder as Agent, the provisions of this Article VIII shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement. All costs and expenses incurred by the Bank Group
in connection with any amendments or other documentation required by this
Section 8.07 shall be paid by the Borrower pursuant to Section 9.04 hereof.
Section 8.08. Successor Funds Administrator. The Funds
Administrator may resign at any time by giving written notice thereof to the
other members of the Bank Group and the Borrower and may be removed at any time
with or without cause by the Majority Banks. Upon any such resignation or
removal, the Majority Banks shall have the right to appoint a successor Funds
Administrator. If no successor Funds Administrator shall have been so
appointed by the Majority Banks, and shall have accepted such appointment,
within thirty (30) days after the retiring Funds Administrator's giving of
notice of resignation or the Majority Banks' removal of the retiring Funds
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Administrator, then the retiring Funds Administrator may, on behalf of the
Banks, appoint a successor Funds Administrator, which shall be a commercial
bank organized 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 Funds Administrator hereunder by a
successor Funds Administrator, such successor Funds Administrator shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Funds Administrator, and the retiring Funds
Administrator shall be discharged from its duties and obligations under this
Agreement, subject to the requirement that such retiring Funds Administrator
will execute such documents and take such actions as may be necessary or
desirable to cause the successor Funds Administrator to be vested with all such
rights, powers, privileges and duties. After any retiring Funds
Administrator's resignation or removal hereunder as Funds Administrator, the
provisions of this Article VIII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Funds Administrator under this
Agreement. All costs and expenses incurred by the Bank Group in connection
with any amendments or other documentation required by this Section 8.08 shall
be paid by the Borrower pursuant to Section 9.04 hereof.
Section 8.09. Notice of Default. Neither the Agent nor the
Funds Administrator shall be deemed to have knowledge or notice of the
occurrence of any Default unless such Person shall have received notice from a
Bank or the Borrower referring to this Agreement, describing such Default and
stating that such notice is a "notice of default" or "notice of event of
default," as applicable. If the Agent receives such a notice from the
Borrower, the Agent shall give notice thereof to the other members of the Bank
Group and, if such notice is received from a Bank, the Agent shall give notice
thereof to the other members of the Bank Group and the Borrower. The Agent
shall be entitled to take action or refrain from taking action with respect to
such Default as provided in this Article VIII.
Section 8.10. Execution of Loan Documents. Each member of
the Bank Group hereby authorizes and directs the Agent and the Funds
Administrator to execute and deliver each Loan Document (including, without
limitation, those specified in Section 3.01) to be executed by the Agent or the
Funds Administrator on or about the Effective Date pursuant to the terms of
this Agreement and the other Loan Documents.
ARTICLE IX
MISCELLANEOUS
Section 9.01. Amendments, Etc. No amendment or waiver of any
provision of this Agreement, any Note or any other Loan Document, or consent to
any departure by any Person herefrom or therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Borrower and
the Majority Banks, and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and
signed by all the Banks, do any of the following: (a) waive or amend any of the
conditions specified in Article III, (b) increase the Commitments of the Banks
or subject the Banks to any additional obligations, (c) reduce the
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principal of, or interest on, the Notes or any fees or other amounts payable
hereunder, (d) postpone any date fixed for any payment of principal of, or
interest on, the Notes or any fees or other amounts payable hereunder, (e)
release the Borrower or any other Person from its payment obligations to the
Bank Group, regardless of whether such obligations are those of a primary
obligor, a guarantor or surety, or otherwise, (f) take action which expressly
requires the signing of all the Banks pursuant to the terms of this Agreement,
(g) change the Commitment Percentages or the aggregate unpaid principal amount
of the Notes, or the number of Banks, as the case may be, required for the
Agent, the Funds Administrator or the Banks or any of them to take any action
under this Agreement or amend the definition of Majority Banks or (h) amend
Article II or this Section 9.01; provided, further, that no amendment, waiver
or consent shall (1) unless in writing and signed by the Agent in addition to
the Banks required above to take such action, affect the rights or duties of
the Agent under this Agreement or any other Loan Document, and (2) unless in
writing and signed by the Funds Administrator in addition to the Banks required
above to take such action, affect the rights or duties of the Funds
Administrator under this Agreement or any other Loan Document. No notice to or
demand on Borrower or any other Person in any case shall entitle them to any
other or further notice or demand in similar or other circumstances.
Section 9.02. Participation Agreements and Assignments. (a)
(i) Subject to Section 9.02(a)(ii), each Bank may assign to one or more
Eligible Assignees all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment,
the Loans owing to it and the Note held by it ) and the other Loan Documents;
provided, however, that (A) no such assignment shall be made unless such
assignment and assignee have been approved by the Agent and, so long as no
Default exists, the Borrower, such approvals not to be unreasonably withheld,
provided that such approvals shall not be required if the assignee is an
Affiliate of the assignor Bank, (B) each such assignment shall be of a
constant, and not a varying, percentage of all rights and obligations of the
assignor under this Agreement and the other Loan Documents, and no assignment
shall be made unless it covers a pro rata share of all rights and obligations
of such assignor under this Agreement and the other Loan Documents, (C) the
amount of the Commitment of the assigning Bank being assigned pursuant to each
such assignment (determined as of the date of the Assignment and Acceptance
with respect to such assignment) shall, unless otherwise agreed to by the
Agent, in no event be less than $5,000,000 and shall be an integral multiple of
$1,000,000, (D) each such assignment shall be to an Eligible Assignee and (E)
the parties to each such assignment shall execute and deliver to the Agent, for
its acceptance and recording in the Register (defined below), an Assignment and
Acceptance, together with any Note subject to such assignment. Upon such
execution, delivery, acceptance and recording, from and after the effective
date specified in each Assignment and Acceptance, (1) the assignee thereunder
shall be a party hereto and, to the extent that rights and obligations under
the Loan Documents have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Bank under the Loan Documents
and (2) the assigning Bank thereunder shall, to the extent that rights and
obligations under the Loan Documents have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its
obligations under the Loan Documents (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Bank's rights
and obligations under this Agreement, such Bank shall cease to be a party
hereto).
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(ii) In the event any Bank desires to transfer all or any
portion of its rights and obligations under the Loan Documents to any Person
other than an Affiliate of such Bank, it shall give the Borrower and the Agent
prior written notice of the identity of such transferee and the terms and
conditions of such transfer (a "Transfer Notice"). So long as no Default has
occurred and is continuing, the Borrower may, no later than ten (10) days
following receipt of such Transfer Notice, designate an alternative transferee
and such Bank shall thereupon be obligated to sell the interests specified in
such Transfer Notice to such alternative transferee, subject to the following:
(A) such transfer shall be made on the same terms and conditions outlined in
such Transfer Notice, (B) such transfer shall otherwise comply with the terms
and conditions of the Loan Documents (including Section 9.02(a)(i)), and (C)
such alternative transferee must be an Eligible Assignee approved by the Agent.
If the Borrower shall fail to designate an alternative transferee within such
ten (10) day period, such Bank shall, subject to compliance with the other
terms and provisions hereof, be free to consummate the transfer described in
such Transfer Notice.
(b) By executing and delivering an Assignment and
Acceptance, the assigning Bank thereunder and the assignee thereunder confirm
to and agree with each other and the other parties hereto as follows: (i)
other than as provided in such Assignment and Acceptance, such assigning Bank
makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
the Loan Documents or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement or any other instrument or
document furnished pursuant hereto; (ii) such assigning Bank makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower or the performance or observance by the
Borrower of any of its obligations under this Agreement or any other instrument
or document furnished pursuant hereto; (iii) such assignee confirms that it has
received a copy of this Agreement and the other Loan Documents, together with
copies of the financial statements referred to in Section 4.06 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 any member of the Bank
Group (including such assigning Bank) and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement; (v) such
assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints
and authorizes the Agent and the Funds Administrator to take such action on its
behalf and to exercise such powers under this Agreement and the other Loan
Documents as are delegated to such Person by the terms thereof, 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 and the other Loan Documents
are required to be performed by it as a Bank.
(c) The Agent shall maintain at its address referred to
in Section 9.03 a copy of each Assignment and Acceptance delivered to and
accepted by it and a register for the recordation of the names and addresses of
the Banks and the Commitment of, and principal amount of the Loans owing to,
each Bank from time to time (the "Register"). The entries in the Register
shall be conclusive and binding for all purposes, absent manifest error, and
the Borrower and each member
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of the Bank Group may treat each Person whose name is recorded in the Register
as a Bank hereunder for all purposes of this Agreement. The Register shall be
available for inspection by the Borrower or any member of the Bank Group at any
reasonable time and from time to time upon reasonable prior notice.
(d) Upon its receipt of an Assignment and Acceptance
executed by an assigning Bank and an assignee representing that it is an
Eligible Assignee, together with any Note subject to such assignment, the Agent
shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit D and satisfies all other requirements set
forth in this Section 9.02, (i) accept such Assignment and Acceptance, (ii)
record the information contained therein in the Register and (iii) give prompt
notice thereof to the Borrower and the other members of the Bank Group. Within
five (5) Business Days after its receipt of such notice, the Borrower, at its
own expense, shall execute and deliver to the Agent, in exchange for the
surrendered Notes, new Notes to the order of such Eligible Assignee in an
amount corresponding to the Commitment assumed by such Eligible Assignee
pursuant to such Assignment and Acceptance and, if the assigning Bank has
retained a Commitment hereunder, new Notes to the order of the assigning Bank
in an amount corresponding to the Commitment retained by it hereunder. Such
new Notes shall be in an aggregate principal amount equal to the aggregate
principal amount of such surrendered Notes, shall be dated the effective date
of such Assignment and Acceptance and shall otherwise be in substantially the
form prescribed by Section 2.03 hereto.
(e) Each Bank may sell participations to one or more
banks or other entities in or to all or a portion of its rights and obligations
under this Agreement and the other Loan Documents (including, without
limitation, all or a portion of its Commitment and the Loans owing to it);
provided, however, that (i) such Bank's obligations under this Agreement
(including, without limitation, its Commitment to the Borrower hereunder) and
the other Loan Documents shall remain unchanged, (ii) such Bank shall remain
solely responsible to the other parties hereto for the performance of such
obligations, and the participating banks or other entities shall not be
considered a "Bank" for purposes of the Loan Documents, (iii) the participating
banks or other entities shall be entitled to the cost protection provisions
contained in Section 2.10 through Section 2.13 and the rights of setoff
contained in Section 7.02, in each case to the same extent that the Bank from
which such participating bank or other entity acquired its participation would
be entitled to the benefit of such cost protection provisions and rights of
setoff and (iv) the Borrower and the other members of the Bank Group shall
continue to deal solely and directly with such Bank in connection with such
Bank's rights and obligations under this Agreement and the other Loan
Documents, and such Bank shall retain the sole right to enforce the obligations
of the Borrower relating to the Loans and to approve any amendment,
modification or waiver of any provision of this Agreement (other than
amendments, modifications or waivers with respect to the amounts of any fees
payable hereunder or the amount of principal of or the rate at which interest
is payable on the Loans, or the dates fixed for payments of principal or
interest on the Loans).
(f) Anything in this Section 9.02 to the contrary
notwithstanding, any Bank may at any time, without the consent of the Borrower
or the Agent, assign and pledge all or any portion
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of its Commitment and the Loans owing to it to any Federal Reserve Bank (and
its transferees) as collateral security pursuant to Regulation A of the Federal
Reserve Board and any Operating Circular issued by such Federal Reserve Bank.
No such assignment shall release the assigning Bank from its obligations
hereunder.
(g) Any Bank may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
9.02, disclose to the assignee or participant or proposed assignee or
participant, any information relating to the Borrower furnished to such Bank by
or on behalf of the Borrower; provided that prior to any such disclosure, each
such assignee or participant or proposed assignee or participant shall agree
(subject to customary exceptions) to preserve the confidentiality of any
confidential information relating to the Borrower received from such Bank.
Section 9.03. Notices. All correspondence, statements,
notices, requests and demands (collectively "Communications") shall be in
writing (including telegraphic Communications) and mailed, telegraphed,
telecopied, facsimile transmitted or delivered as follows:
if to the Borrower --
Kirby Corporation
1775 St. James Place, Suite 300
Houston, Texas 77056
Attention: Chief Financial Officer
Telecopier: (713) 964-2200
if to the Funds Administrator or the Agent--
Texas Commerce Bank National Association
712 Main Street
Houston, Texas 77002
Attention: Houston Commercial Lending Group
Telecopier: (713) 216-6004
with a copy to --
Texas Commerce Bank National Association
1111 Fannin, 9th Floor M546
Houston, Texas 77002
Attention: Syndications Department
Telecopier: (713) 750-3810
if to any Bank, at its Domestic Lending Office, or as to each such party, at
such other address as such party shall designate in a written Communication to
each of the other parties hereto. All such
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Communications shall be effective, in the case of written or telegraphed
Communications, when deposited in the mails or delivered to the telegraph
company, respectively, and, in the case of a Communication by telecopy or
facsimile transmission, when telecopied or transmitted against receipt of a
confirmation, in each case addressed as aforesaid, except that Communications
to any member of the Bank Group pursuant to Article II and Article VIII shall
not be effective until received by such Persons.
Section 9.04. Costs and Expenses. The Borrower agrees to pay
on demand (a) all reasonable costs and expenses of the Agent and the Funds
Administrator incurred in connection with the preparation, execution, delivery,
filing, administration and recording of the Loan Documents and any other
agreements or security documents delivered in connection with or pursuant to
any of the Loan Documents and the syndication of this Agreement both before and
after the date hereof, including, without limitation, the reasonable fees and
out-of-pocket expenses of Andrews & Kurth L.L.P., special counsel to the Agent,
and local counsel who may be retained by such special counsel, with respect
thereto, and (b) all reasonable costs and expenses of the Agent and the Funds
Administrator, and during the existence of an Event of Default any Bank,
incurred in connection with the enforcement of the Loan Documents and any other
agreements or security documents executed in connection with or pursuant to any
of the Loan Documents, including, but not limited to, the reasonable fees and
out-of-pocket expenses of counsel to the Agent, and local counsel who may be
retained by such counsel, with respect thereto, and the costs and expenses in
connection with the custody, preservation, use or operation of, or the sale of,
or collection from, or other realization upon the sale of, or collection from,
or other realization upon any collateral covered by any of the Loan Documents
or any other documents executed in connection with or pursuant to any of the
Loan Documents. The agreements of Borrower contained in this Section 9.04
shall survive the termination of the Commitments and the payment of all other
amounts owing hereunder or under any of the other Loan Documents.
Section 9.05. Successors and Assigns. This Agreement shall
be binding upon and inure to the benefit of the Borrower, the Agent, the Funds
Administrator, the Banks and their respective successors and assigns, except
that the Borrower may not assign or transfer its rights hereunder without the
prior written consent of the Banks.
Section 9.06. Independence of Covenants. All covenants
contained in the Loan Documents shall be given independent effect so that if a
particular action or condition is not permitted by any of such covenants, the
fact that such action or condition would be permitted by an exception to, or
otherwise be within the limitations of, another covenant shall not avoid the
occurrence of a Default or an Event of Default if such action is taken or
condition exists.
Section 9.07. Survival of Representations and Warranties.
All representations and warranties contained in this Agreement and the other
Loan Documents or made in writing by the Borrower in connection herewith or
therewith, shall survive the execution and delivery of this Agreement, the
Notes and the other Loan Documents and the repayment of the Loans. Any
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investigation by any member of the Bank Group shall not diminish in any respect
whatsoever its right to rely on such representations and warranties.
Section 9.08. Separability. Should any clause, sentence,
paragraph, subsection, Section or Article of this Agreement be judicially
declared to be invalid, unenforceable or void, such decision will not have the
effect of invalidating or voiding the remainder of this Agreement, and the
parties hereto agree that the part or parts of this Agreement so held to be
invalid, unenforceable or void will be deemed to have been stricken herefrom by
the parties hereto, and the remainder will have the same force and
effectiveness as if such stricken part or parts had never been included herein.
Section 9.09. Captions. The captions in this Agreement have
been inserted for convenience only and shall be given no substantive meaning or
significance whatsoever in construing the terms and provisions of this
Agreement.
Section 9.10. Limitation by Law. All provisions of this
Agreement and the other Loan Documents are intended to be subject to all
applicable mandatory provisions of law which may be controlling and to be
limited to the extent necessary so that they will not render this Agreement or
any other Loan Document invalid or unenforceable, in whole or in part, or not
entitled to be recorded, registered or filed under the provisions of any
applicable law.
Section 9.11. Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original,
and all of which taken together shall constitute one and the same agreement.
Section 9.12. Governing Law. This Agreement shall be
governed by, and construed in accordance with, the laws of the State of Texas
(without giving effect to the conflict of law principles thereof) and
applicable federal law; provided, however, notwithstanding the foregoing or any
other provision of this Agreement, nothing in this Agreement, the Notes or the
other Loan Documents shall be deemed to constitute a waiver of any rights which
any Bank may have under federal legislation relating to the rate of interest
which such Bank may contract for, take, reserve, receive or charge in respect
of any Debt owing to such Bank hereunder. Chapter 15, Subtitle 3, Title 79, of
the Revised Civil Statutes of Texas, 1925, as amended (relating to revolving
loan and revolving triparty accounts), shall not apply to this Agreement or the
Notes or the transactions contemplated hereby.
Section 9.13. Limitation on Interest. Each provision in this
Agreement and each other Loan Document is expressly limited so that in no event
whatsoever shall the amount paid, or otherwise agreed to be paid, by the
Borrower for the use, forbearance or detention of the money to be loaned under
this Agreement or any other Loan Document or otherwise (including any sums paid
as required by any covenant or obligation contained herein or in any other Loan
Document which is for the use, forbearance or detention of such money), exceed
that amount of money which would
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cause the effective rate of interest thereon to exceed the Highest Lawful Rate,
and all amounts owed under this Agreement and each other Loan Document shall be
held to be subject to reduction to the effect that such amounts so paid or
agreed to be paid which are for the use, forbearance or detention of money
under this Agreement or such Loan Document shall in no event exceed that amount
of money which would cause the effective rate of interest thereon to exceed the
Highest Lawful Rate. To the extent that the Highest Lawful Rate applicable to
a Bank is at any time determined by Texas law, such rate shall be the
"indicated rate ceiling" described in Section (a)(1) of Article 1.04 of Chapter
1, Subtitle 1, Title 79, of the Revised Civil Statutes of Texas, 1925, as
amended; provided, however, to the extent permitted by such Article, the Banks
from time to time by notice from the Agent to Borrower may revise the aforesaid
election of such interest rate ceiling as such ceiling affects the then-current
or future balances of the Loans outstanding under the Notes. Notwithstanding
any provision in this Agreement or any other Loan Document to the contrary, if
the maturity of the Notes or the obligations in respect of the other Loan
Documents are accelerated for any reason, or in the event of prepayment of all
or any portion of the Notes or the obligations in respect of the other Loan
Documents by the Borrower or in any other event, earned interest on the Loans
and such other obligations of the Borrower may never exceed the maximum amount
permitted by applicable law, and any unearned interest otherwise payable under
the Notes or the obligations in respect of the other Loan Documents that is in
excess of the maximum amount permitted by applicable law shall be cancelled
automatically as of the date of such acceleration or prepayment or other such
event and, if theretofore paid, shall be credited on the principal of the Notes
or, if the principal of the Notes has been paid in full, refunded to the
Borrower. In determining whether or not the interest paid or payable, under
any specific contingency, exceeds the Highest Lawful Rate, the Borrower and the
Banks shall, to the maximum extent permitted by applicable law, amortize,
prorate, allocate and spread, in equal parts during the period of the actual
term of this Agreement, all interest at any time contracted for, charged,
received or reserved in connection with the Loan Documents.
Section 9.14. Indemnification. The Borrower agrees to
indemnify, defend and hold each member of the Bank Group, as well as their
respective officers, employees, agents, Affiliates, directors and shareholders
(collectively, "Indemnified Persons") harmless from and against any and all
loss, liability, damage, judgment, claim, deficiency or reasonable expense
(including interest, penalties, reasonable attorneys' fees and amounts paid in
settlement) incurred by or asserted against any Indemnified Person arising out
of, in any way connected with, or as a result of (i) the execution and delivery
of this Agreement and the other documents contemplated hereby, the performance
by the parties hereto and thereto of their respective obligations hereunder and
thereunder (including but not limited to the making of the Loans by each Bank)
and consummation of the transactions contemplated hereby and thereby, (ii) the
actual or proposed use of the proceeds of the Loans, (iii) any violation by the
Borrower or any of its Subsidiaries of any Requirement of Law, including but
not limited to Environmental Laws, (iv) any member of the Bank Group being
deemed an operator of any real or personal property of the Borrower or any of
its Subsidiaries in circumstances in which no member of the Bank Group is
generally operating or generally exercising control over such property, to the
extent such losses, liabilities, damages, judgments, claims, deficiencies or
expenses arise out of or result from any Hazardous Materials located in, on or
under such property or (v) any
44
50
claim, litigation, investigation or proceeding relating to any of the
foregoing, whether or not any Indemnified Person is a party thereto; provided
that such indemnity shall not apply to any such losses, claims, damages,
liabilities or related expenses that are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of, or willful violation of the Loan
Documents by, such Indemnified Person. WITHOUT LIMITING ANY PROVISION OF THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, IT IS THE EXPRESS INTENTION OF
THE BORROWER THAT EACH INDEMNIFIED PERSON SHALL BE INDEMNIFIED AND HELD
HARMLESS AGAINST ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DEFICIENCIES,
JUDGMENTS OR REASONABLE EXPENSES ARISING OUT OF OR RESULTING FROM THE ORDINARY
NEGLIGENCE (WHETHER SOLE OR CONTRIBUTORY) OR STRICT LIABILITY OF SUCH
INDEMNIFIED PERSON. Each Indemnified Person will attempt to consult with the
Borrower prior to entering into any settlement of any lawsuit or proceeding
that could give rise to a claim for indemnity under this Section 9.14, although
nothing herein shall give the Borrower the right to direct or control any such
settlement negotiations or any related lawsuit or proceeding on behalf of such
Indemnified Party. The obligations of the Borrower under this Section 9.14
shall survive the termination of this Agreement.
Section 9.15 Submission to Jurisdiction. The Borrower
hereby irrevocably submits to the jurisdiction of any Texas state or federal
court sitting in Houston, Texas over any action or proceeding arising out of or
relating to this Agreement or any of the other Loan Documents, and the Borrower
irrevocably agrees that all claims in respect of such action or proceeding may
be heard and determined in such Texas state or federal court; provided,
however, nothing in this Section 9.15 is intended to waive the right of any
member of the Bank Group to remove any such action or proceeding commenced in
any such Texas state court to an appropriate Texas federal court to the extent
the basis for such removal exists under applicable law. The Borrower
irrevocably consents to the service of any and all process in any such action
or proceeding by the mailing by certified mail of copies of such process to it
at its address specified herein. 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.
Nothing in this Section 9.15 shall affect the right of any member of the Bank
Group to serve legal process in any other manner permitted by law or affect the
right of any member of the Bank Group to bring any action or proceeding against
any of the Borrower, or such person's properties, in the courts of any other
jurisdiction.
SECTION 9.16. WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE BORROWER AND THE BANK GROUP HEREBY IRREVOCABLY
AND EXPRESSLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF
OR RELATING TO THIS AGREEMENT, THE NOTES, OR ANY OTHER LOAN DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED THEREBY OR THE ACTIONS OF THE BANK GROUP IN THE
NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF.
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SECTION 9.17. FINAL AGREEMENT OF THE PARTIES. THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS CONSTITUTE A LOAN AGREEMENT FOR PURPOSES OF
SECTION 26.02(A) OF THE TEXAS BUSINESS AND COMMERCE CODE, AND REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE
NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
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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.
KIRBY CORPORATION
By:/s/ BRIAN K. HARRINGTON
------------------------------------
Brian K. Harrington
Senior Vice President
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION, as Funds Administrator,
as Agent, and individually as one of
the Banks
By:/s/ STEPHEN H. OGLESBY
------------------------------------
Stephen H. Oglesby
Executive Vice President
FIRST INTERSTATE BANK OF TEXAS, N.A.
By:/s/ DAVID M. ANDERSON
------------------------------------
Name: David M. Anderson
Title: Vice President
CORESTATES BANK, N.A. (DBA THE
PHILADELPHIA NATIONAL BANK)
By:/s/ S. SCOTT GATES
------------------------------------
Name: S. Scott Gates
Title: Assistant Vice President
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CITIBANK, N.A.
By:/s/ JOHN F. HEUSS
------------------------------------
Name: John F. Heuss
Title: Vice President
DEPOSIT GUARANTY NATIONAL BANK
By:/s/ GREGORY A. MOORE
------------------------------------
Name: Gregory A. Moore
Title: Vice President
ABN AMRO BANK N.V. HOUSTON AGENCY
BY: ABN AMRO NORTH AMERICA, INC.,
AS AGENT
By:/s/ DAVID P. ORR
------------------------------------
Name: David P. Orr
Title: Vice President & Director
By:/s/ LILA JORDAN
------------------------------------
Name: Lila Jordan
Title: Vice President & Director
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54
ANNEX A
DEFINITIONS
"Adjusted CD Rate" means, for any Interest Period for each
Adjusted CD Rate Loan comprising part of the same Borrowing, an interest rate
per annum equal to the sum of: (a) the rate per annum obtained by dividing (i)
the rate of interest determined by the Agent to be the arithmetic average
(rounded upward to the nearest whole multiple of 1/100 of 1% per annum, if such
average is not such a multiple) of the consensus bid rate determined by the
Agent for the bid rates per annum, on or about 9:00 A.M. (Houston time) (or as
soon thereafter as practicable) one Business Day before the first day of such
Interest Period, of certificate of deposit dealers of recognized standing
selected by the Agent for the purchase at face value of certificates of deposit
of the Agent in an amount approximately equal to the Adjusted CD Rate Loan to
be made by the Agent in its capacity as a Bank and comprising part of such
Borrowing and with a maturity equal to such Interest Period, by (ii) a
percentage equal to 100% minus the Adjusted CD Rate Reserve Percentage for such
Interest Period, plus (b) the Assessment Rate in effect from time to time
during such Interest Period.
"Adjusted CD Rate Borrowing" means a Borrowing consisting of
Adjusted CD Rate Loans.
"Adjusted CD Rate Loan" means a Loan that the Borrower has
designated, or is deemed to have designated, as such in accordance with Article
II.
"Adjusted CD Rate Reserve Percentage" means, for the Interest
Period for each Adjusted CD Rate Loan comprising part of the same Borrowing,
the reserve percentage applicable one Business Day before the first day of such
Interest Period under regulations issued from time to time by the Board of
Governors of the Federal Reserve System (or any successor) for determining the
maximum reserve requirement (including, but not limited to, any emergency,
supplemental or other marginal reserve requirement) for a member bank of the
Federal Reserve System in Houston, Texas with deposits exceeding one billion
dollars with respect to liabilities consisting of or including (among other
liabilities) U.S. dollar nonpersonal time deposits in the United States with a
maturity equal to such Interest Period.
"Adjusted Net Income" means, for any period, Net Income for
such period; less, to the extent otherwise included in such Net Income (a) any
gain or loss arising from the sale of capital assets of the Borrower and its
Consolidated Subsidiaries; (b) any gain arising from any write-up of assets of
the Borrower and its Consolidated Subsidiaries; (c) earnings of any other
Person, substantially all of the assets of which have been acquired by the
Borrower or any of its Consolidated Subsidiaries in any manner, to the extent
that such earnings were realized by such other Person prior to the date of such
acquisition; (d) net earnings of any Person (other than a Consolidated
Subsidiary) in which the Borrower or any of its Consolidated Subsidiaries has
an ownership interest, except for
55
the portion of such net earnings that have been distributed to the Borrower or
a Consolidated Subsidiary; (e) the earnings of any Person to which assets of
the Borrower or any of its Consolidated Subsidiaries shall have been sold,
transferred or disposed of, to the extent that such earnings arise after the
date of such transaction; (f) the earnings of any Person into which the
Borrower or any of its Consolidated Subsidiaries shall have merged, to the
extent that such earnings arise prior to the date of such merger; (g) any gain
arising from the acquisition of any securities of the Borrower or any of its
Consolidated Subsidiaries; and (h) the taxes, if any, included in the
calculation of the consolidated net earnings, if any, described in clauses (a)
through (g); plus, to the extent not otherwise included in such Net Income, all
distributions, other than returns of capital, which have been made to the
Borrower or a Consolidated Subsidiary by any Person, other than a Consolidated
Subsidiary, in which Borrower or any of its Consolidated Subsidiaries has an
ownership interest.
"Affected Bank" has the meaning specified in Section 2.14.
"Affected Interests" has the meaning specified in Section
2.14.
"Affiliate" means, when used with respect to any Person, (a)
any other Person (including any member of the immediate family of any such
natural person) who directly or indirectly beneficially owns or controls five
percent (5%) or more of the total voting power of shares of capital stock of
such Person having the right to vote for directors (or other individuals
performing similar functions) under ordinary circumstances, (b) any Person
controlling, controlled by or under common control with any such Person (within
the meaning of Rule 405 under the Securities Act of 1933) and (c) any director
or executive officer of such Person.
"Agent" has the meaning specified in the introduction to this
Agreement.
"Agent's Side Letter" has the meaning specified in Section
2.09.
"Agreement" means this Credit Agreement, as the same may from
time to time be amended, supplemented or modified and in effect.
"Amortization Date" means any date on which a payment on the
Loans is required by Section 2.05(b).
"Amortization Event" means an event that (a) occurs if (i)
during any nine month period the aggregate outstanding principal amount of the
Loans exceeds $75,000,000 on each day during such period and (ii) the Majority
Banks (or the Agent acting at the direction of the Majority Banks) gives the
Borrower notice that the event described in clause (i) has occurred, and (b)
continues so long as the outstanding principal amount of the Loans exceeds
$75,000,000.
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"Applicable Lending Office" means, with respect to each Bank,
such Bank's Domestic Lending Office in the case of a Prime Rate Loan, such
Bank's CD Lending Office in the case of an Adjusted CD Rate Loan and such
Bank's Eurodollar Lending Office in the case of a Eurodollar Rate Loan.
"Applicable Margin" has the meaning specified in Section
2.06(d).
"Assessment Rate" means, for any day, the annual assessment
rate in effect on such day which is payable by a member of the Bank Insurance
Fund classified as well capitalized and within supervisory subgroup "B" (or a
comparable successor assessment risk classification) within the meaning of 12
C.F.R. Section 327.3(d) (or any successor provision) to the Federal Deposit
Insurance Corporation (or any successor thereto) for such Corporation's (or
such successor's) insuring time deposits at offices of such institution in the
United States. The Adjusted CD Rate shall be adjusted automatically on and as
of the effective date of any change in the Assessment Rate.
"Assignment and Acceptance" means an assignment and acceptance
entered into by a Bank and an Eligible Assignee and accepted by the Agent, in
substantially the form of Exhibit D.
"Bank Group" means, collectively, the Agent, the Funds
Administrator and the Banks.
"Banks" has the meaning specified in the introduction to this
Agreement.
"Borrower" has the meaning specified in the introduction to
this Agreement.
"Borrowing" means a group of Loans of a single Type made by
the Banks, or Converted into such, as applicable, on a single date and as to
which a single Interest Period is in effect.
"Borrowing Date" means, with respect to the initial funding of
any Borrowing, the date on which the proceeds of such Borrowing are to be made
available to the Borrower.
"Borrowing Request" has the meaning specified in Section 2.02.
"Business Day" means a day of the year on which banks are not
required or authorized to close in Houston, Texas and, if the applicable
Business Day relates to any Eurodollar Rate Loans, on which dealings are
carried on in the applicable eurodollar interbank market.
"Capital Expenditures" means, for any period, the expenditures
and costs made by the Borrower and its Consolidated Subsidiaries (on a
consolidated basis) during such period
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(whether paid in cash or accrued as liabilities during that period and
including that portion of Capital Leases that is capitalized on the
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries)
that, in accordance with generally accepted accounting principles consistently
applied, are required to be included in or reflected by the property, plant or
equipment or similar fixed asset accounts reflected in the consolidated balance
sheet of the Borrower.
"Capital Lease" means, as to any Person, any lease or rental
agreement in respect of which such Person's obligations as lessee under such
lease or rental agreement, constitute obligations which shall have been or
should be, in accordance with generally accepted accounting principles
consistently applied, capitalized on the balance sheet of such Person.
"CD Lending Office" means, with respect to any Bank, the
office of such Bank specified as its "CD Lending Office" on Schedule 2.01 (or,
if no such office is specified, its Domestic Lending Office), or such other
office of such Bank as such Bank may from time to time specify to the Borrower,
the Agent and the Funds Administrator.
"Change of Control" means any of (a) the acquisition by any
Person or two or more Persons (excluding underwriters in the course of their
distribution of voting stock in an underwritten public offering) acting in
concert, of beneficial ownership (within the meaning of Rule 13d-3 of the
Securities and Exchange Commission) of 25% or more of the outstanding shares of
voting stock of the Borrower, (b) 30% or more of the members of the Board of
Directors of the Borrower on any date shall not have been (i) members of the
Board of Directors of the Borrower on the date 12 months prior to such date or
(ii) approved by Persons who constitute at least a majority of the members of
the Board of Directors of the Borrower as constituted on the date 12 months
prior to such date, (c) all or substantially all of the assets of the Borrower
are sold in a single transaction or series or related transactions to any
Person or (d) the Borrower merges or consolidates with or into any other
Person, with the effect that immediately after such transaction the
stockholders of the Borrower immediately prior to such transaction hold less
than 75% of the total voting power entitled to vote in the election of
directors, managers or trustees of the Person surviving such transaction.
"Commitment" means, as to any Bank, the amount of such Bank's
Commitment set forth on Schedule 2.01, as such Commitment may be reduced or
terminated pursuant to Section 2.04 or Section 7.01.
"Commitment Percentage" means, as to any Bank, a percentage
determined pursuant to the following formula: (C / T) X 100 = CP; where C is
such Bank's Commitment (without giving effect to any termination of the
Commitments pursuant to Section 7.01), T is the Total Commitment (without
giving effect to any termination of the Commitments pursuant to Section 7.01)
and CP is such percentage.
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"Communications" has the meaning specified in Section 9.03.
"Consolidated Subsidiary" means, as of any date, any
Subsidiary of the Borrower that, in accordance with generally accepted
accounting principles, would be included in the consolidated financial
statements of the Borrower prepared as of such date.
"Conversion Date" means, when used with respect to the
Conversion of any group of Loans, the date such Loans are to be Converted into
Loans of another Type pursuant to Section 2.02 or otherwise in accordance with
Article II.
"Conversion Notice" has the meaning specified in Section 2.02.
"Convert," "Conversion" and "Converted" each refers to a
conversion of Loans of one Type into Loans of another Type pursuant to Section
2.02 or otherwise in accordance with Article II.
"Current Liabilities" means, as of any date, all liabilities
(including, without limitation, accounts payable incurred for services rendered
and property purchased in the ordinary course of business) which would be
reflected as current liabilities on a consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries prepared as of such date in
accordance with generally accepted accounting principles consistently applied,
but excluding current maturities of Funded Debt of the Borrower and its
Consolidated Subsidiaries as of such date.
"Debt" of any Person shall mean, without duplication: (a) any
obligation of such Person for borrowed money, (b) any obligation of such Person
evidenced by bonds, debentures, notes or other similar debt instruments, (c)
all obligations of such Person under conditional sale or other title retention
agreements relating to property purchased by such Person, (d) any obligation of
such Person for the deferred purchase price of any property or services, except
accounts payable arising in the ordinary course of such Person's business that
have been outstanding less than ninety (90) days since the date of the related
invoice, (e) the present value (discounted at the implicit rate, if known, or
ten percent (10%) per annum otherwise) of all Capital Leases of such Person,
(f) any Derivative Obligations of such Person, (g) any reimbursement
obligations of such Person in respect of drawings under a letter of credit or
similar instrument, and (h) any indebtedness or obligations of others of the
type described in clauses (a) through (g) that is Guaranteed by such Person or
secured by a Lien on any asset of such Person.
"Default" means an Event of Default or an event which with the
giving of notice or the lapse of time or both could, unless cured or waived,
become an Event of Default.
"Default Rate" has the meaning specified in Section 2.06.
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"Derivative Obligations" means, with respect to any Person,
payment obligations with respect to foreign exchange transactions and interest
rate, currency and commodity swaps, caps, floors, collars, forward sale
contracts, other similar obligations and combinations of the foregoing
(collectively, "swaps"). For the purposes of this Agreement, the amount of any
Derivative Obligations shall be the amount determined in respect thereof as of
the end of the then most recently ended fiscal quarter of such Person, based on
the assumption that all swaps had terminated at the end of such fiscal quarter,
and in making such determination, if any agreement relating to any such swap
provides for the netting of amounts payable by and to such Person thereunder or
if any such agreement provides for the simultaneous payment of amounts by and
to such Person, then in each such case, the amount of such obligation shall be
the net amount so determined.
"Dixie" means Dixie Carriers, Inc., a Delaware corporation.
"Dixie Credit Agreement" means that certain Credit Agreement
dated as of April 23, 1993 among Dixie, the banks named therein, and TCB, as
funds administrator and agent, as amended, supplemented or otherwise modified
from time to time.
"Dixie Note Purchase Agreement" shall mean the Note Purchase
Agreement dated as of August 12, 1992 among Dixie and the note purchasers named
therein, relating to Dixie's $50,000,000 8.22% Senior Notes due June 30, 2002,
as amended, supplemented or otherwise modified from time to time.
"Dollars" and "$" each means lawful money of the United
States.
"Domestic Lending Office" means, with respect to any Bank, the
office of such Bank specified as its "Domestic Lending Office" on Schedule
2.01, or such other office of such Bank as such Bank may from time to time
specify to the Borrower, the Agent and the Funds Administrator.
"Effective Date" means the date on which the conditions to
effectiveness set forth in Article III to this Agreement are first satisfied.
"Eligible Assignee" means (a) any Bank or any Affiliate of any
Bank; (b) a commercial bank organized under the laws of the United States, or
any state thereof, and having total assets in excess of $1,000,000,000 and
having deposits rated in either of the two highest generic letter rating
categories (without regard to subcategories) from either Standard & Poor's
Rating Group or Moody's Investors Service, Inc.; (c) a commercial bank
organized under the laws of any other country which is a member of the
Organization for Economic Cooperation and Development ("OECD"), or a political
subdivision of any such country, and having total assets in excess of
$1,000,000,000, provided that such bank is acting through a branch or agency
located in the country in which it is organized or another country which is
also a member of the OECD; (d) the central bank
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of any country which is a member of the OECD; and (e) any other financial
institution approved by the Agent.
"Environmental Laws" means federal, state or local laws, rules
or regulations, and any judicial, arbitral or administrative interpretations
thereof, including, without limitation, any judicial, arbitral or
administrative order, judgment, permit, approval, decision or determination
pertaining to health, safety or the environment in effect at the time in
question, including, without limitation, the Clean Air Act, as amended, the Oil
Pollution Act of 1990, as amended, the Comprehensive Environmental Response,
Compensation and Liability Act, as amended, the Federal Water Pollution Control
Act, as amended, the Occupational Safety and Health Act, as amended, the
Resource Conservation and Recovery Act, as amended, the Safe Drinking Water
Act, as amended, the Toxic Substances Control Act, as amended, the Superfund
Amendment and Reauthorization Act of 1986, as amended, the Hazardous Materials
Transportation Act, as amended, comparable state and local laws, and other
environmental conservation and protection laws.
"ERISA" means the Employee Retirement Income Security Act of
1974, and any successor statute of similar import, together with the
regulations thereunder, in each case as in effect from time to time.
References to sections of ERISA shall be construed to also refer to any
successor sections.
"ERISA Affiliate" means any (i) corporation which is a member
of the same controlled group of corporations (within the meaning of Section
414(b) of the Internal Revenue Code) as the Borrower, (ii) partnership or other
trade or business (whether or not incorporated) under common control (within
the meaning of Section 414(c) of the Internal Revenue Code) with the Borrower,
(iii) member of the same affiliated service group (within the meaning of
Section 414(m) of the Internal Revenue Code) as the Borrower, any corporation
described in clause (i) above or any partnership or trade or business described
in clause (ii) above or (iv) other Person required to be aggregated with the
Borrower or an ERISA Affiliate thereof, as defined above, pursuant to Section
414(o) of the Internal Revenue Code.
"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 Event" has the meaning specified in Section 2.12.
"Eurodollar Lending Office" means, with respect to any Bank,
the office of such Bank specified as its "Eurodollar Lending Office" on
Schedule 2.01 (or, if no such office is specified, its Domestic Lending
Office), or such other office of such Bank as such Bank may from time to time
specify to the Borrower, the Agent and the Funds Administrator.
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"Eurodollar Rate" means, for the Interest Period for each
Eurodollar Rate Loan comprising part of the same Borrowing, an 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 rates per
annum at which deposits in U.S. dollars are offered to the Agent by prime banks
in whatever eurodollar interbank market may be selected by the Agent in its
sole discretion, acting in good faith, on or about 9:00 a.m. (Houston time) (or
as soon thereafter as practicable) two Business Days before the first day of
such Interest Period, and in accordance with the then existing practice in such
eurodollar interbank market for delivery of such deposits on the first day of
such Interest Period in immediately available funds, in an amount substantially
equal to the Eurodollar Rate Loan to be made by the Agent in its capacity as a
Bank and comprising part of such Borrowing and for a period equal to such
Interest Period.
"Eurodollar Rate Borrowing" means a Borrowing consisting of
Eurodollar Rate Loans.
"Eurodollar Rate Loan" means a Loan that the Borrower has
designated, or is deemed to have designated, as such in accordance with Article
II.
"Eurodollar Rate Reserve Percentage" means, as to any Bank for
the Interest Period for any Eurodollar Rate Loan, the reserve percentage
applicable during such Interest Period (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)
under regulations issued from time to time by the Board of Governors of the
Federal Reserve System (or any successor) for determining the maximum reserve
requirement (including, without limitation, any emergency, supplemental or
other marginal reserve requirement) for such Bank 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 7.01.
"Excluded Affiliate" means (a) any Subsidiary of the Borrower
other than a Consolidated Subsidiary, and (b) all Persons, other than
Subsidiaries, in which the Borrower, directly or indirectly, owns or controls
five percent (5%) or more of the equity interests of such Person.
"Existing Credit Agreement" has the meaning specified in the
preliminary statement to this Agreement.
"Existing Universal Investment" means the aggregate Investment
of the Borrower in Universal as of the date hereof, less the aggregate amount
of such Investment returned to the
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Borrower after the date hereof (whether by way of redemption, repurchase,
liquidation or otherwise, but excluding any non-liquidating dividends paid on
such Investment).
"Fair Market Value" shall mean (a) with respect to any asset
(other than Dollars) the price at which a willing buyer would buy and a willing
seller would sell such asset in an arms' length transaction and (b) with
respect to Dollars, the amount of such Dollars.
"Federal Funds Rate" means, for any period, a fluctuating
interest rate per annum equal for each day during such period to 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 Dallas, 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.
"Fixed Charges" means, for any period, (without duplication)
the sum of (a) all Interest Expense for such period, plus (b) the aggregate
rentals paid by the Borrower and its Consolidated Subsidiaries (on a
consolidated basis) under Capital Leases during such period, plus (c) all
Capital Expenditures made by the Borrower and its Consolidated Subsidiaries
during such period (excluding any Capital Expenditures made after the Effective
Date for the expansion of such Person's fleet of marine barges, boats and other
operating equipment, as opposed to the mere replacement of such Person's
existing fleet of marine barges, boats and other operating equipment), plus (d)
the aggregate amount of (i) all scheduled principal payments required or made
during such period on account of Funded Debt that provides for scheduled
principal payments prior to final maturity, (ii) in the case of any Funded Debt
(other than Debt under revolving credit facilities) that has an original term
in excess of three years and does not provide for scheduled principal payments
prior to its final maturity, an amount equal to one-sixtieth (1/60th) per
calendar quarter of the average outstanding principal balance thereof, and
(iii) in the case of any Funded Debt under revolving credit facilities (such as
this Agreement) that does not have any scheduled principal payments during such
period, an amount equal to one-twentieth (1/20th) per calendar quarter of the
average outstanding principal balance thereof, provided, however, that to the
extent such Funded Debt is attributable to a Guaranty by the Borrower or a
Consolidated Subsidiary of a limited portion of any Debt of an Excluded
Affiliate, the amount included in Fixed Charges pursuant to this clause (d)
shall be limited to the Borrower's proportionate share of such Debt (based upon
the amount so Guaranteed relative to the total amount of such Debt).
"Fixed Rate" means the Adjusted CD Rate or the Eurodollar
Rate.
"Fixed Rate Borrowing" means an Adjusted CD Rate Borrowing or
a Eurodollar Rate Borrowing.
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"Fixed Rate Loan" means an Adjusted CD Rate Loan or a
Eurodollar Rate Loan.
"Funded Debt" means, as of any date, the sum of the following:
(a) all Debt of the Borrower and its Consolidated Subsidiaries on a
consolidated basis as of such date, less (b) to the extent included in the
amount described in clause (a), the sum of the following (without duplication):
(i) all Current Liabilities (other than Current Liabilities that represent Debt
for borrowed money or Capital Leases) on a consolidated basis as of such date,
(ii) any Debt of any Consolidated Subsidiary in excess of the Borrower's
proportionate share thereof (based on its direct or indirect equity interest
therein), (iii) all other deferred long term liabilities that do not represent
Debt for borrowed money or Capital Leases, including deferred compensation,
deferred revenue and other deferred items classified as other liabilities of
the Borrower and its Consolidated Subsidiaries on a consolidated basis as of
such date, and (iv) all Derivative Obligations of the Borrower and its
Consolidated Subsidiaries as of such date; plus (c) to the extent not otherwise
included in the amount described in clause (a), the sum of the following
(without duplication): (i) all Debt of the Borrower and its Consolidated
Subsidiaries outstanding under a revolving credit or similar agreement, (ii)
the present value (discounted at the implicit rate, if known, or ten percent
(10%) per annum otherwise) of all obligations in respect of Capital Leases of
the Borrower and its Consolidated Subsidiaries, and (iii) all obligations of
the Borrower and its Consolidated Subsidiaries under Guaranties of Debt.
"Funds Administrator" has the meaning specified in the
introduction to this Agreement.
"Governmental Authority" means any nation or government, any
federal, state, province, city, town, municipality, county, local or other
political subdivision thereof or thereto and any court, tribunal, department,
commission, board, bureau, instrumentality, agency or other entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.
"Guaranties" means, as to any Person, all obligations (other
than endorsements in the ordinary course of business of negotiable instruments
for deposit or collection) of such Person guaranteeing or, in effect,
guaranteeing any Debt of any other Person (the "primary obligor") in any
manner, whether directly or indirectly, including all obligations incurred
through an agreement, contingent or otherwise, by such Person: (a) to purchase
such Debt or any property or assets constituting security therefor, (b) to
advance or supply funds (i) for the purchase or payment of such Debt or (ii) to
maintain working capital or other balance sheet conditions or otherwise to
advance or make available funds for the purchase or payment of such Debt, (c)
to lease property or to purchase securities or other property or services
primarily for the purpose of assuring the owner of such Debt of the ability of
the primary obligor to make payment of the Debt or (d) otherwise to assure the
owner of the Debt of the primary obligor against loss in respect thereof.
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64
"Hazardous Materials" means any pollutant, contaminant, solid
waste, asbestos, petroleum product, crude oil or a fraction thereof, any toxic
or hazardous substance, material or waste, any flammable, explosive or
radioactive material, any chemical which causes cancer or reproductive effects,
or any other material or substance not mentioned above which is regulated under
any Environmental Law.
"Highest Lawful Rate" means, as to any Bank, at the particular
time in question, the maximum nonusurious rate of interest which, under
applicable law, such Bank is then permitted to charge the Borrower on the Loans
or the other obligations of the Borrower under the Loan Documents, and as to
any other Person, at the particular time in question, the maximum nonusurious
rate of interest which, under applicable law, such Person is then permitted to
charge with respect to the obligation in question. If the maximum rate of
interest which, under applicable law, the Banks are permitted to charge the
Borrower on the Loans or the other obligations of the Borrower under the Loan
Documents shall change after the date hereof, the Highest Lawful Rate shall be
automatically increased or decreased, as the case may be, as of the effective
time of such change without notice to the Borrower or any other Person.
"Hostile Acquisition" shall mean any transaction or series of
transactions in which the Borrower or any of its Subsidiaries, directly or
indirectly, purchases or acquires, or offers to purchase or acquire, an
aggregate of five percent (5%) or more of the equity securities or controlling
interest of any Person, for any type of consideration, without the prior
written consent of such Person's Board of Directors or other controlling body.
"Intangible Assets" means, as of any date, those assets of the
Borrower and its Consolidated Subsidiaries that would appear on a consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries prepared as of
such date in accordance with generally accepted accounting principles, to the
extent such assets are (a) deferred, long term assets, including, without
limitation, capitalized contracts, such as long term agreements between the
Borrower or its Consolidated Subsidiaries and another Person for the hire of
the vessels and/or barges of the Borrower or its Consolidated Subsidiaries; (b)
patents, copyrights, trademarks, trade names, franchises, goodwill,
experimental expenses, amounts paid under noncompete agreements and other
similar assets that would be classified as intangible assets on such balance
sheet; or (c) unamortized debt discount and expenses.
"Interest Expense" means, for any period, the aggregate of all
interest expense deducted in the calculation of the Net Income of the Borrower
for such period, determined in accordance with generally accepted accounting
principles.
"Interest Period" means, for each Loan comprising part of the
same Borrowing, the period commencing on the date of such Loan or the date of
the Conversion of such Loan, as
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applicable, 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
shall be (a) in the case of an Adjusted CD Rate Loan, 30, 60, 90 or 180 days,
(b) in the case of a Prime Rate Loan, a period ending on the Termination Date,
and (c) in the case of a Eurodollar Rate Loan, 1, 2, 3 or 6 months; provided,
however, that:
(i) the Borrower may not select any Interest Period for a
Loan that ends after the Termination Date;
(ii) the Borrower may not select any Interest Period for a
Loan that ends after any Amortization Date unless, after giving effect
to such selection, the aggregate unpaid principal amount of all Prime
Rate Loans and all Fixed Rate Loans having Interest Periods which end
on or before such Amortization Date shall equal or exceed the
principal amount due on such Amortization Date;
(iii) Interest Periods commencing on the same date for
Loans comprising part of the same Borrowing shall be of the same
duration; and
(iv) whenever the last day of any Interest Period would
otherwise occur on a day other than a Business Day, the last day of
such Interest Period shall be extended to occur on the next succeeding
Business Day, provided, in the case of any Interest Period for a
Eurodollar Rate Loan, that if such extension would cause the last day
of such Interest Period to occur in the next following calendar month,
the last day of such Interest Period shall occur on the next preceding
Business Day.
"Internal Revenue Code" means the Internal Revenue Code of
1986, as amended from time to time (or any successor statute), and the
regulations promulgated thereunder.
"Investment" means any direct or indirect investment by one
Person (the "investor") in another Person (the "investee"), including, without
limitation, (a) any loan or advance, whether initially funded by the investor
or acquired by the investor from a third party, (b) any acquisition of equity
interests by the investor, whether directly from the investee or from a third
party by way of share purchase, merger or otherwise, (c) any capital or other
contribution to the investee, whether made in cash or other assets, or by
contributing a promissory note payable by the investor to the investee, (d) any
Guarantee by the investor of Debt of the investee, and (e) the Fair Market
Value of any assets or services transferred to the investee less the Fair
Market Value of any consideration received by the investor in exchange
therefor; provided, however, that the term "Investment" shall not include
undistributed earnings on an Investment; and the amount of an "Investment," for
purposes of Section 6.08 hereof, shall be reduced by the amount of capital
returned to the investor
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by the investee. The amount of any Investment that is made by transferring
property other than Dollars shall be the Fair Market Value of the property so
transferred.
"Lien" means, when used with respect to any Person, any
mortgage, lien, charge, pledge, security interest or encumbrance of any kind
(whether voluntary or involuntary, and whether imposed or created by operation
of law or otherwise) upon, or pledge of, any of its property or assets, whether
now owned or hereafter acquired, or any conditional sale agreement, Capital
Lease or other title retention agreement.
"Loan" has the meaning specified in Section 2.01.
"Loan Documents" shall mean this Agreement, the Notes, the
Agent's Side Letter and all other agreements, instruments and documents,
including, without limitation, security agreements, notes, warrants,
guaranties, mortgages, deeds of trust, subordination agreements, pledges,
powers of attorney, consents, assignments, collateral assignments, letter
agreements, contracts, notices, leases, amendments, financing statements,
letter of credit applications and reimbursement agreements, and all other
writings heretofore, now, or hereafter executed by or on behalf of the
Borrower, any of its Affiliates or any other Person in connection with or
relating to this Agreement, together with all agreements, instruments and
documents referred to therein or contemplated thereby.
"Majority Banks" means at any time Banks holding at least
sixty six and two-thirds percent (66 2/3%) of the then aggregate unpaid
principal amount of the Loans or, if no Loans are outstanding, Banks having
Commitment Percentages in the aggregate equal to at least sixty six and
two-thirds percent (66 2/3%).
"Margin Ratio" means the ratio of the Funded Debt of the
Borrower as of the last day of the relevant calendar quarter to the Modified
Net Cash Flow for the twelve month period ending on the last day of such
relevant calendar quarter. The Margin Ratio set forth in the most recent
Margin Ratio Certificate delivered to the Agent shall, for purposes of
determining the Applicable Margin, be in effect from the date such Margin Ratio
Certificate is delivered until the date preceding the delivery of the next such
Margin Ratio Certificate, with the following exceptions: (a) if the Agent in
good faith determines (after discussions with the Borrower) that the
calculations of the Margin Ratio reflected in any Margin Ratio Certificate are
not accurate, the Agent may adjust the Margin Ratio accordingly, (b) if the
Borrower fails to deliver any Margin Ratio Certificate when due, the Margin
Ratio shall be deemed to be greater than 3.0 to 1.0 until such Margin Ratio
Certificate is delivered, and (c) for the period commencing on the date hereof
and ending on the date the next Margin Ratio Certificate is due, the Margin
Ratio shall be deemed to be 1.9 to 1.0.
"Margin Ratio Certificate" has the meaning specified in
Section 5.01.
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"Material Adverse Effect" means, as to any Person, a material
adverse effect on the business, property, assets, operations or condition,
financial or otherwise, of such Person or on the ability of such Person to
perform its obligations under the Loan Documents to which it is a party or to
consummate the transactions contemplated thereby.
"Material Debt" means, as at any date, an amount equal to five
percent (5%) of the Borrower's Funded Debt as of such date.
"Material Subsidiaries" means, collectively, each Consolidated
Subsidiary of the Borrower that meets any of the following conditions: (a)
the aggregate Investment of the Borrower and its other Consolidated
Subsidiaries in such Consolidated Subsidiary exceeds five percent (5%) of the
total assets of the Borrower and its Consolidated Subsidiaries as of the end of
the most recently completed calendar year; or (b) the Borrower and its other
Consolidated Subsidiaries' proportionate share of the total assets (after
intercompany eliminations) of such Consolidated Subsidiary exceeds five percent
(5%) of the total assets of the Borrower and its Consolidated Subsidiaries as
of the end of the most recently completed calendar year; or (c) the Borrower
and its other Consolidated Subsidiaries' equity in the income from continuing
operations before income taxes, extraordinary items and cumulative effect of a
change in accounting principle of such Consolidated Subsidiary exceeds five
percent (5%) of Net Income for the most recently completed calendar year.
"Modified Net Cash Flow" means, for any period, (without
duplication) the sum of (a) Net Cash Flow for such period plus (b) the amount
of any current tax expense deducted from gross income in determining Net Cash
Flow for such period, plus (c) to the extent not included in Net Cash Flow for
such period by reason of clause (c) of the definition Adjusted Net Income, Net
Cash Flow, adjusted in the manner described in clause (b) of this definition,
for such period of any Person acquired by the Borrower or any of its
Consolidated Subsidiaries during such period.
"Net Cash Flow" means, for any period, the sum of the
following: (a) Adjusted Net Income for such period, plus (b) all non-cash
charges (such as deferred taxes, depreciation expense and amortization of
intangibles) which were deducted from gross income in determining Adjusted Net
Income for such period, plus (c) the amount of Interest Expense which was
deducted in the calculation of Adjusted Net Income for such period.
"Net Income" means, for any period, the consolidated net
earnings of the Borrower and its Consolidated Subsidiaries for such period,
determined in accordance with generally accepted accounting principles.
"Net Worth" means, as of any date, the total shareholder's
equity (including capital stock, additional paid-in capital and retained
earnings after deducting treasury stock) which would
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appear on a consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries prepared as of such date in accordance with generally accepted
accounting principles.
"Note" means a promissory note of the Borrower payable to the
order of a Bank, in substantially the form of Exhibit C, evidencing the
aggregate indebtedness of the Borrower to such Bank resulting from the Loans
made by such Bank, together with all modifications, extensions, renewals and
rearrangements thereof from time to time in effect.
"Other Taxes" has the meaning specified in Section 2.10.
"PBGC" means the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA and any successor
thereto.
"Person" means an individual, partnership, corporation,
limited liability company, business trust, joint stock company, trust,
unincorporated association, joint venture or other entity, or Governmental
Authority.
"Plan" means any employee pension benefit plan which is
covered by Title IV of ERISA or subject to the minimum funding standards under
Section 412 of the Internal Revenue Code, and in respect of which the Borrower,
or any ERISA Affiliate is an "employer" as defined in Section 3(5) of ERISA.
"Prime Rate" means, as of any particular date, a rate per
annum equal to the higher of (a) the Federal Funds Rate plus one-half of one
percent ( 1/2%), and (b) the prime rate per annum most recently announced by
the Agent as its prime rate of interest per annum and thereafter entered in the
minutes of the Agent's loan and discount committee, automatically fluctuating
upward or downward, as the case may be, on the day of each announcement without
special notice to the Borrower or any other Person. The Borrower acknowledges
that the prime rate referred to in clause (b) of the preceding sentence may not
be the Agent's best or lowest rate, or favored rate, and any statement,
representation or warranty in that regard or to that effect is hereby expressly
disclaimed by the Agent.
"Prime Rate Borrowing" means a Borrowing consisting of Prime
Rate Loans.
"Prime Rate Loan" means a Loan that the Borrower has
designated, or is deemed to have designated, as such in accordance with Article
II.
"Quarterly Payment Date" means each of March 31, June 30,
September 30 and December 31 of each year.
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"Register" has the meaning specified in Section 9.02.
"Regulation U" means Regulation U of the Board of Governors of
the Federal Reserve System (respecting margin credit extended by banks), as the
same is from time to time in effect, and all official rulings and
interpretations thereunder or thereof.
"Regulation X" means Regulation X of the Board of Governors of
the Federal Reserve System (respecting borrowers who obtain margin credit) as
the same is from time to time in effect, and all official rulings and
interpretations thereunder or thereof.
"Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping or
disposing into the environment (including the abandonment or discarding of
barrels, containers and other closed receptacles).
"Reportable Event" means any of the events set forth in
Section 4043(b) of ERISA or the regulations thereunder.
"Requirements of Environmental Laws" means the requirements of
any applicable Environmental Law relating to or affecting the Borrower or any
of its Subsidiaries or the condition or operation of such Person's business or
its properties, both real and personal.
"Requirements of Law" shall mean any federal, state or local
law, rule or regulation, permit or other binding determination of any
Governmental Authority.
"Responsible Officer" means, as to any Person, the Chief
Executive Officer, the President, the Chief Financial Officer or the Treasurer
of such Person, or any employee of such Person designated in writing as a
Responsible Officer by the Chief Executive Officer of such Person.
"Restricted Investment" means (a) any Investment by the
Borrower or a Consolidated Subsidiary in an Excluded Affiliate and (b) any
payment by the Company or any Consolidated Subsidiary of Debt of any Excluded
Affiliate to the extent the Company or such Consolidated Subsidiary is not
legally obligated to make such payment under the terms of such Debt.
"Subsidiary" means, with respect to any Person, each other
Person of which or in which such Person and its other Subsidiaries own, hold or
control, directly or indirectly, securities or other ownership interests having
ordinary voting power, in the absence of contingencies, to elect a majority of
the board of directors of such other Person, or other persons performing
similar functions for such Person, or, if there are no such directors or
persons, having general voting power with respect to the activities of such
Person, it being understood that the power to elect exactly 50% of the board of
directors or such other persons does not constitute a "majority" as used
herein.
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Unless the context otherwise requires, all references to a Subsidiary shall be
considered to be references to Subsidiaries of the Borrower.
"Substitution Event" has the meaning specified in Section
2.14.
"Taxes" has the meaning specified in Section 2.10.
"TCB" means Texas Commerce Bank National Association.
"Termination Date" means December 31, 1998 or the earlier
termination in whole of the Commitments pursuant to Section 2.04 or Section
7.01.
"Total Commitment" means an amount equal to the sum of the
Banks' Commitments.
"Transfer Notice" has the meaning specified in Section 9.02.
"Type" means, with respect to any Loan, the type of interest
rate applicable to such Loan pursuant to this Agreement, and refers to an
Adjusted CD Rate Loan, a Prime Rate Loan or a Eurodollar Rate Loan, each of
which shall is a "Type" of Loan. Loans having different Interest Periods,
regardless of whether they commence on the same date or have the same type of
interest rate, shall be considered different Types of Loans.
"Universal" means Universal Insurance Company, a corporation
organized under the laws of the Commonwealth of Puerto Rico.
"Universal Stockholders Agreement" means that certain
Stockholders Agreement dated September 25, 1992 among Universal, the Borrower
and Eastern America Financial Group, Inc., as amended and in effect on the date
hereof.
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SCHEDULE 2.01
COMMITMENTS AND LENDING OFFICES
1. TEXAS COMMERCE BANK NATIONAL ASSOCIATION
Commitment: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $35,000,000.00
Domestic Lending Office,
CD Lending Office and
Eurodollar Lending Office:
Texas Commerce Bank National Association
712 Main Street
Houston, Texas 77002
Attention: Houston Commercial Lending Group
Telecopier: (713) 236-6004
Telex: 166-350 (Answerback TCB-HOU)
with a copy to:
Texas Commerce Bank National Association
1111 Fannin, 9th Floor M546
Houston, Texas 77002
Attention: Syndications Department
Telecopier: (713) 750-3810
Telex: 166-350 (Answerback TCB-HOU)
2. FIRST INTERSTATE BANK OF TEXAS, N.A.
Commitment: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000,000.00
Domestic Lending Office,
CD Lending Office and
Eurodollar Lending Office:
First Interstate Bank of Texas, N.A.
1000 Louisiana, 3rd Floor
Houston, Texas 77002
Attention: David Anderson
Telecopier: (713) 250-7029
72
3. CORESTATES BANK, N.A.
Commitment: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000,000.00
Domestic Lending Office,
CD Lending Office and
Eurodollar Lending Office:
CoreStates Bank, N.A.
1500 Market Street West Tower
Philadelphia, Pennsylvania 19101-7558
Attention: Scott Gates
Telecopier: (215) 786-7704
4. CITIBANK, N.A.
Commitment: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000,000.00
Domestic Lending Office,
CD Lending Office and
Eurodollar Lending Office:
Citibank, N.A.
399 Park Avenue
New York, New York 10043
Attention: Paul B. Griffith
Telecopier: (212) 793-3588
5. DEPOSIT GUARANTY NATIONAL BANK
Commitment: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000,000.00
Domestic Lending Office,
CD Lending Office and
Eurodollar Lending Office:
Deposit Guaranty National Bank
201 East Capitol Street
Jackson, Mississippi 39215-1200
Attention: Greg Moore
Telecopier: (601) 354-8412
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6. ABN AMRO BANK N.V., HOUSTON AGENCY
Commitment: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000,000.00
Domestic Lending Office,
CD Lending Office and
Eurodollar Lending Office:
ABN AMRO Bank N.V. Houston Agency
Three Riverway, Suite 1700
Houston, Texas 77056
Attention: David Orr
Telecopier: (713) 964-7533
Total Commitment: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000,000
============
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SCHEDULE 4.01
CONSOLIDATED SUBSIDIARIES AND EXCLUDED AFFILIATES
PART A - CONSOLIDATED SUBSIDIARIES
ENTITY # OF SHARES OWNED % SHARES OWNED
------------------------------------------------------------------ --------------------- --------------------
AFRAM Carriers, Inc. 10,000 100%
Americas Marine Express, Inc. 1,000 100%
Brent Transportation Corporation 1,000 100%
Chotin Carriers, Inc. 1,000 100%
Dixie Bulk Transport, Inc. 10 100%
Dixie Carriers, Inc. 44,950 100%
Dixie Marine, Inc. 100 100%
Dixie Offshore Transportation Company 1,000 100%
Dixie Security Corporation 1,000 100%
General Energy Corporation 1,000 100%
Kirby Exploration Company of Texas 1,000 100%
Kirby Marine Transportation Corporation 10,000 100%
Kirby Pioneer, Inc. 1,000 100%
Kirby Tankships, Inc. 10,000 100%
Kirby Terminals, Inc. 1,000 100%
Marine Systems, Inc. 1,000 100%
Mariner Reinsurance Company Limited 1,000,000 100%
Oceanic Insurance Limited 120,000 100%
OMR Transportation Company 10,000 100%
Rail Systems, Inc. 1,000 100%
Sabine Marine Transportation Company 1,000 100%
Sabine Transportation Company 10,000 100%
TPT Transportation Company 11,000 100%
Western Towing Company 10,000 100%
PART B - EXCLUDED AFFILIATES
EQUITY INTEREST % EQUITY INTERST
ENTITY OWNED OWNED
------------------------------------------------------------ ----------------------------- --------------------
Bolivar Terminal Co., Inc. 120 Shares Common Stock 50%
Dixie Fuels II, Limited Partnership Interest 50%
Dixie Fuels Limited Partnership Interest 35%
Universal Insurance Company 254,525 Shares Common Stock 47%
75
EXHIBIT A
FORM OF BORROWING REQUEST
__________________, 199____
Texas Commerce Bank National Association, as
Funds Administrator
712 Main Street
Houston, Texas 77002
Attention: Houston Commercial Lending Group
Re: Kirby Corporation
Gentlemen:
Reference is made to the Credit Agreement dated as of March
18, 1996 (as amended from time to time, the "Credit Agreement") among Kirby
Corporation (the "Borrower"), the banks named therein, and Texas Commerce Bank
National Association, as Funds Administrator and Agent. Terms defined in the
Credit Agreement and not otherwise defined herein are used herein with the
meanings specified in the Credit Agreement. The Borrower hereby requests a
Borrowing under the Credit Agreement, and, as required by Section 2.02(a) of
the Credit Agreement, specifies the following information for such Borrowing
(the "Proposed Borrowing"):
(a) The Borrowing Date for the Proposed Borrowing is
_________________________, 19______.
(b) The Type and amount of, and, in the case of a Fixed
Rate Borrowing, the Interest Period applicable to, the Loans comprising the
Proposed Borrowing are:
_____ EURODOLLAR RATE LOANS in an aggregate amount of
$____________________ with an Interest period of:
________one (1) month
________two (2) months
________three (3) months
________six (6) months
_____ ADJUSTED CD RATE LOANS in an aggregate amount of
$____________________ with an Interest period of:
________30 days
________60 days
________90 days
________180 days
_____ PRIME RATE LOANS in an aggregate amount of
$____________________.
76
EXHIBIT A
The Borrower hereby certifies that after giving effect to the
Proposed Borrowing, the aggregate amount of Loans outstanding will not exceed
the Total Commitment. The Borrower hereby further certifies that on the date
hereof all applicable conditions to the Proposed Borrowing set forth in Article
III of the Credit Agreement have been satisfied and that the Proposed Borrowing
complies with the terms of the Credit Agreement, and by acceptance of the
proceeds of the Proposed Borrowing, the Borrower will be deemed to have
recertified the foregoing on the date of the Proposed Borrowing.
Sincerely,
KIRBY CORPORATION
By:
------------------------------------
Title:
---------------------------------
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EXHIBIT B
FORM OF CONVERSION NOTICE
____________________, 199____
Texas Commerce Bank National Association, as
Funds Administrator
712 Main Street
Houston, Texas 77002
Attention: Houston Commercial Lending Group
Re: Kirby Corporation
Gentlemen:
Reference is made to the Credit Agreement dated as of March
18, 1996 (as amended from time to time, the "Credit Agreement") among Kirby
Corporation (the "Borrower"), the banks named therein, and Texas Commerce Bank
National Association, as Funds Administrator and Agent. Terms defined in the
Credit Agreement and not otherwise defined herein are used herein with the
meanings specified in the Credit Agreement. The Borrower hereby gives notice
of a Conversion of Loans under the Credit Agreement, and, as required by
Section 2.02(c) of the Credit Agreement, specifies the following information
for such Conversion (the "Proposed Conversion"):
(a) The Conversion Date for the Proposed Conversion is
_________________________, 19______.
(b) The Loans to be Converted are described as follows:
______________________________________________________________
[DESCRIBE BY AMOUNT, TYPE AND, IF APPLICABLE, INTEREST PERIOD]
(c) The Loans described in clause (b) are to be Converted
into a Borrowing of Loans of the Type, in the amounts, and, in the case of a
Conversion to Fixed Rate Loans, having the Interest Period described as
follows:
_____ EURODOLLAR RATE LOANS comprising a Borrowing in an
aggregate amount of $____________________ with an
Interest period of:
________one (1) month
________two (2) months
________three (3) months
________six (6) months
78
_____ ADJUSTED CD RATE LOANS comprising a Borrowing in an
aggregate amount of $____________________ with an
Interest period of:
________30 days
________60 days
________90 days
________180 days
_____ PRIME RATE LOANS comprising a Borrowing in an
aggregate amount of $____________________.
The Borrower hereby certifies that on the date hereof the
Proposed Conversion complies with the terms of the Credit Agreement, and the
Borrower will be deemed to have recertified the foregoing on the date of the
Proposed Conversion.
Sincerely,
KIRBY CORPORATION
By:
-----------------------------------
Title:
--------------------------------
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EXHIBIT C
NOTE
U.S. $________________ Dated: _______________, 199___
FOR VALUE RECEIVED, KIRBY CORPORATION, a Nevada corporation
(the "Borrower"), hereby promises to pay to the order of
__________________________________________ (the "Bank") for the account of its
Applicable Lending Office (as defined in the Credit Agreement referred to
below) the principal amount of __________________________________________ and
__________/100 Dollars ($______________) or, if less, the aggregate unpaid
principal amount of all Loans (as defined in the Credit Agreement referred to
below) made by the Bank to the Borrower pursuant to the Credit Agreement (as
defined below).
The principal of this Note shall be due and payable at the
places, the times and in manner set forth in the Credit Agreement. The
Borrower promises to pay interest on the unpaid principal amount of this Note
from the dates and at such interest rates as are specified in the Credit
Agreement, and payable at the places, the times and in the manner set forth in
the Credit Agreement.
Each Loan made by the Bank to the Borrower and all payments
made on account of the principal amount thereof shall be entered by the Bank in
its records or on the grid attached hereto which is part of this Note,
provided, however, that, prior to any transfer hereof, the amount and maturity
of any outstanding Loans shall be endorsed on the grid attached hereto which is
part of this Note.
This Note is one of the Notes referred to in, and is entitled
to the benefits of, the Credit Agreement dated as of March 18, 1996 (as the
same may from time to time be amended, modified or supplemented, the "Credit
Agreement") among the Borrower, the banks named therein, and Texas Commerce
Bank National Association, as Funds Administrator and Agent. The Credit
Agreement, among other things, (i) provides for the making of Loans by the Bank
to the Borrower from time to time in an aggregate amount not to exceed at any
time outstanding the U.S. dollar amount first above mentioned (or, if less, the
Commitment of the Bank), the indebtedness of the Borrower resulting from each
such Loan being evidenced by this Note, (ii) contains provisions for
acceleration of the maturity hereof upon the happening of certain stated events
and also for prepayments on account of principal hereof prior to the maturity
hereof upon the terms and conditions therein specified, and (iii) contains
provisions to the effect that no provision of the Credit Agreement or this Note
shall require the payment or permit the collection of interest in excess of the
maximum nonusurious amount permitted under applicable laws.
The Borrower and any and all endorsers, guarantors and
sureties severally waive grace, demand, presentment for payment for payment,
notice of dishonor or default or intent to accelerate, protest and notice of
protest and diligence in collecting and bringing of suit against any party
hereto, and agree to all renewals, extensions or partial payments hereon and to
any release of
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substitution of security herefor, in whole or in part, without or without
notice, before or after maturity.
This Note shall be governed by, and construed in accordance
with, the laws of the State of Texas (without giving effect to the conflict of
law principles thereof) and applicable federal law; provided, however,
notwithstanding the foregoing or any other provision of the Loan Documents,
nothing in this Note or the other Loan Documents shall be deemed to constitute
a waiver of any rights which the Bank may have under federal legislation
relating to the rate of interest which the Bank may contract for, take,
reserve, receive or charge in respect of any Indebtedness owing to the Bank
under this Note or the other Loan Documents. Chapter 15, Subtitle 3, Title 79,
of the Revised Civil Statutes of Texas, 1925, as amended (relating to revolving
loan and revolving triparty accounts), shall not apply to this Note or the
transactions contemplated hereby.
EXECUTED EFFECTIVE the day and year written above.
KIRBY CORPORATION
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
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ADVANCES, MATURITIES, AND PAYMENTS OF PRINCIPAL
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Amount of Unpaid
Amount of Maturity of Principal Paid Principal Notation
Date Advance Advance or Prepaid Balance Made By
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EXHIBIT D
ASSIGNMENT AND ACCEPTANCE
Dated: __________________, 19____
Reference is made to the Credit Agreement dated as of March
18, 1996 (as amended from time to time, the "Credit Agreement") among KIRBY
CORPORATION (the "Borrower"), the banks named therein, and TEXAS COMMERCE BANK
NATIONAL ASSOCIATION, as Funds Administrator and Agent. Terms defined in the
Credit Agreement and not otherwise defined herein are used herein with the
meanings specified in the Credit Agreement.
__________________________________________, acting as one of
the Banks referred to in the Credit Agreement (the "Assignor"), and
__________________________________________ (the "Assignee") agree as follows:
1. The Assignor hereby sells and assigns to the
Assignee, and the Assignee hereby purchases and assumes from the Assignor, that
interest in and to a portion of the Assignor's rights and obligations as of the
date hereof under the Credit Agreement and the other Loan Documents sufficient
to give the Assignee the fractional interest specified in Section 1 of Schedule
1 hereto of all outstanding rights and obligations under the Credit Agreement
and the other Loan Documents. After giving effect to such sale and assignment,
the respective Commitments of and amounts of the Loans owing to the Assignor
and the Assignee will be as set forth in Section 2 of Schedule 1 hereto.
2. The Assignor (i) represents and warrants that it is
the legal and beneficial owner of the interest being assigned by it hereunder
and that such interest is free and clear of any adverse claim; (ii) makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Loan Documents or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents or any other instrument
or document furnished pursuant thereto; (iii) makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of the Borrower or any other Person or the performance or observance by the
Borrower or any other Person of any of its obligations under the Loan Documents
or any other instrument or document furnished pursuant thereto; and (iv) will
deliver the Note issued to it pursuant to the Credit Agreement to the Agent
concurrently with the presentation of this assignment to the Agent for
acceptance and requests that, upon receipt of such Note, the Agent shall
exchange such Note for a new Note [NEW NOTES] payable to the order of the
Assignee in an amount equal to the Commitment assumed by the Assignee pursuant
hereto [AND THE ASSIGNOR IN AN AMOUNT EQUAL TO THE COMMITMENT RETAINED BY THE
ASSIGNOR UNDER THE CREDIT AGREEMENT, RESPECTIVELY], as specified in Section 3
of Schedule 1 hereto.
83
3. The Assignee (i) confirms that it has received a copy
of the Credit Agreement and the other Loan Documents, together with copies of
the financial statements referred to in Section 4.06 thereof and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Acceptance; (ii) agrees
that it will, independently and without reliance upon the Assignor or any other
member of the Bank Group and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Credit Agreement; (iii) confirms that
it is an Eligible Assignee; (iv) appoints and authorizes the Agent and the
Funds Administrator to take such action on its behalf and to exercise such
powers under the Credit Agreement and the other Loan Documents as are delegated
to such Person by the terms thereof, together with such powers as are
reasonably incidental thereto; (v) agrees that it will perform in accordance
with their terms all of the obligations which by the terms of the Credit
Agreement and the other Loan Documents are required to be performed by it as a
Bank; and (vi) specifies as its CD Lending Office, Domestic Lending Office (and
address for notices) and Eurodollar Lending Office the offices set forth in
Section 4 of Schedule 1 hereto; and (vii) represents that it is either (y) a
corporation organized under the laws of the United States, a state thereof or
the District of Columbia or (z) entitled to complete exemption from United
States withholding tax imposed on or with respect to any payments, including
fees, to be made to it pursuant to the Credit Agreement (A) under an applicable
provision of a tax convention or treaty to which the United States is a party
or (B) because it is acting through a branch, agency or office in the United
States and any payment to be received by it under the Credit Agreement is
effectively connected with a trade or business in the United States.
4. Following the execution of this Assignment and
Acceptance by the Assignor and the Assignee, it will be delivered to the Agent
for the approval of [THE BORROWER AND] the Agent and acceptance by the Agent,
and the effective date of this Assignment and Acceptance (the "Effective Date")
shall be the date on which such approval and acceptance has occurred. If the
statement set forth in Section 3(vii)(z) hereof is true with respect to the
Assignee, the Assignee will execute and deliver to the Administrative Agent the
forms, certificates and other documents required by Section 2.10(f) of the
Credit Agreement.
5. Upon the Effective Date, (i) the Assignee shall be a
party to the Credit Agreement and, to the extent provided in this Assignment
and Acceptance, have the rights and obligations of a Bank thereunder and (ii)
the Assignor shall, to the extent provided in this Assignment and Acceptance,
relinquish its rights and be released from its obligations under the Credit
Agreement.
6. From and after the Effective Date, the Agent and the
Funds Administrator shall make all payments under the Credit Agreement and the
other Loan Documents in respect of the interest assigned hereby (including,
without limitation, all payments of principal, interest and commitment fees
with respect thereto) to the Assignee. The Assignor and Assignee shall make
all appropriate adjustments in payments and fundings under the Credit Agreement
and the other Loan Documents for periods prior to the Effective Date directly
between themselves.
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7. This Assignment and Acceptance shall be governed by,
and construed in accordance with, the laws of the State of Texas (without
giving effect to the conflict of law principles thereof) and applicable federal
law. This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed to be an original and all
of which taken together shall constitute but one and the same instrument. This
Assignment and Acceptance shall be binding upon and inure to the benefit of the
Assignor and the Assignee and their respective successors and assigns.
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IN WITNESS WHEREOF, the parties hereto have caused this
Assignment and Acceptance to be executed by their respective officers thereunto
duly authorized effective as of the date first above written.
Attachments: ASSIGNOR:
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Schedule 1
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By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
ASSIGNEE:
---------------------------------------
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
Approved this day of , 19 .
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KIRBY CORPORATION
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
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Approved and Accepted this day of , 19 .
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TEXAS COMMERCE BANK,
NATIONAL ASSOCIATION,
AS AGENT
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
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SCHEDULE 1
TO
ASSIGNMENT AND ACCEPTANCE
DATED ___________, 19_____
Section 1.
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Fractional Interest acquired by Assignee
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relative to all Banks
Section 2.
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1. Assignee's Acquired Interest.
Assignee's Commitment:
Aggregate outstanding principal
amount of Loans owing to the Assignee: $
---------------------------------
2. Assignor's Retained Interest.
Assignor's Commitment: $
---------------------------------
Aggregate outstanding principal
amount of Loans owing to the Assignor: $
---------------------------------
Section 3.
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1. A Note payable to the order of the Assignee in the principal amount of $ .
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2. A Note payable to the order of the Assignor in the principal amount of $ .
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Section 4.
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Domestic Lending Office Eurodollar Lending Office CD Lending Office
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