<PAGE>
EXHIBIT 4(b)
EXECUTION COPY
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FIVE-YEAR CREDIT AGREEMENT
Dated as of March 8, 2000
Among
THE WALT DISNEY COMPANY
as Borrower
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and
THE FINANCIAL INSTITUTIONS NAMED HEREIN
as Lenders
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and
CITICORP USA, INC.
as Administrative Agent
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and
BANK ONE, NA
as Syndication Agent
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and
HSBC BANK USA and SUNTRUST BANK
as Co-Documentation Agents
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<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
ARTICLE I
<S> <C>
SECTION 1.02. Computation of Time Periods.............................................. 11
SECTION 1.03. Accounting Terms......................................................... 11
ARTICLE II
SECTION 2.01. The Advances............................................................. 11
SECTION 2.02. Making the Advances...................................................... 11
SECTION 2.03. Fees..................................................................... 13
SECTION 2.04. Reduction of the Commitments............................................. 13
SECTION 2.05. Repayment of Advances.................................................... 13
SECTION 2.06. Interest on Advances..................................................... 13
SECTION 2.07. Additional Interest on Eurocurrency Rate Advances........................ 14
SECTION 2.08. Interest Rate Determination.............................................. 14
SECTION 2.09. Optional Conversion of Advances.......................................... 15
SECTION 2.10. Prepayments of Advances.................................................. 16
SECTION 2.11. Increased Costs.......................................................... 17
SECTION 2.12. Illegality............................................................... 18
SECTION 2.13. Payments and Computations................................................ 18
SECTION 2.14. Taxes.................................................................... 19
SECTION 2.15. Sharing of Payments, Etc................................................. 21
SECTION 2.16. Mandatory Assignment by a Lender; Mitigation............................. 22
SECTION 2.17. Evidence of Debt......................................................... 22
SECTION 2.18. Use of Proceeds.......................................................... 23
SECTION 2.19. Increase in the Aggregate Commitments.................................... 23
SECTION 2.20. Extension of Termination Date............................................ 24
ARTICLE III
SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01.................... 26
SECTION 3.02. Conditions Precedent to Each Borrowing................................... 27
</TABLE>
<PAGE>
<TABLE>
<S> <C>
SECTION 3.03. Determinations Under Section 3.01........................................ 27
ARTICLE IV
SECTION 4.01. Representations and Warranties of the Borrower........................... 27
SECTION 4.02. Additional Representations and Warranties of the Borrower as of Each
Increase Date and Each Extension Date............................... 28
ARTICLE V
SECTION 5.01. Affirmative Covenants.................................................... 29
SECTION 5.02. Negative Covenant........................................................ 31
ARTICLE VI
SECTION 6.01. Events of Default........................................................ 32
ARTICLE VII
SECTION 7.01. Authorization and Action................................................. 33
SECTION 7.02. Administrative Agent's Reliance, Etc..................................... 33
SECTION 7.03. CUSA and Affiliates...................................................... 34
SECTION 7.04. Lender Credit Decision................................................... 34
SECTION 7.05. Indemnification.......................................................... 34
SECTION 7.06. Successor Administrative Agent........................................... 34
SECTION 7.07. Sub-Agent................................................................ 35
ARTICLE VIII
SECTION 8.01. Amendments, Etc.......................................................... 35
SECTION 8.02. Notices, Etc............................................................. 35
SECTION 8.03. No Waiver; Remedies...................................................... 36
SECTION 8.04. Costs and Expenses....................................................... 37
SECTION 8.05. Right of Set-off......................................................... 37
SECTION 8.06. Binding Effect........................................................... 37
SECTION 8.07. Assignments and Participations........................................... 37
SECTION 8.08. Indemnification.......................................................... 40
</TABLE>
<PAGE>
<TABLE>
<S> <C>
SECTION 8.09. Confidentiality.......................................................... 40
SECTION 8.10. Judgment................................................................. 41
SECTION 8.11. Consent to Jurisdiction and Service of Process........................... 42
SECTION 8.12. Substitution of Currency................................................. 42
SECTION 8.13. Governing Law............................................................ 42
SECTION 8.14. Execution in Counterparts................................................ 42
SECTION 8.15. Severability............................................................. 42
</TABLE>
SCHEDULE
Schedule I - List of Applicable Lending Offices
EXHIBITS
Exhibit A - Form of Notice of Borrowing
Exhibit B - Form of Assignment and Acceptance
Exhibit C - Form of Opinion of Assistant General Counsel of the Borrower
Exhibit D-1 - Form of Foreign Lender Certificate
Exhibit D-2 - Form of Foreign Lender Certificate
<PAGE>
FIVE-YEAR CREDIT AGREEMENT
Dated as of March 8, 2000
THE WALT DISNEY COMPANY, a Delaware corporation (the "Borrower"), the
banks, financial institutions and other institutional lenders (the "Initial
Lenders") listed on the signature pages hereof under the heading "The Initial
Lenders", CITICORP USA, INC., a Delaware corporation ("CUSA"), as administrative
agent (together with any successor administrative agent appointed pursuant to
Article VII, the "Administrative Agent") for the Lenders (as hereinafter
defined) hereunder, BANK ONE, NA, a national banking corporation ("Bank One"),
as syndication agent (the "Syndication Agent"), and HSBC BANK USA, a New York
State banking corporation ("HSBC"), and SUNTRUST BANK, a Georgia corporation
("SunTrust"), as co-documentation agents (the "Co-Documentation Agents") for the
Lenders hereunder, hereby agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms.
As used in this Agreement, the following terms shall have the
following meanings (such meanings to be equally applicable to both the singular
and plural forms of the terms defined):
"ABC" means ABC, Inc., a New York corporation and a wholly owned
subsidiary of the Borrower, or any successor thereto.
"Administrative Agent" has the meaning specified in the recital of
parties to this Agreement.
"Administrative Agent's Account" means (a) in the case of Advances
denominated in Dollars, the account of the Administrative Agent maintained
by the Administrative Agent at the office of Citibank at 399 Park Avenue,
New York, New York 10043, (b) in the case of Advances denominated in any
Committed Currency, the account of the Sub-Agent, as the Administrative
Agent shall notify in writing the Borrower and the Lenders from time to
time, and (c) in any such case, such other account of the Administrative
Agent or the Sub-Agent, as the case may be, as the Administrative Agent or
the Sub-Agent shall notify in writing the Borrower and the Lenders from
time to time.
"Advance" means an advance by a Lender to the Borrower as part of a
Borrowing and refers to a Base Rate Advance or a Eurocurrency Rate Advance,
each of which shall be a "Type" of Advance.
"Affiliate" means, as to any Person, any other Person that, directly
or indirectly, controls, is controlled by or is under common control with
such Person or is a director or officer of such Person.
"Agreement" means this Five-Year Credit Agreement, as it may be
amended, supplemented or otherwise modified from time to time in accordance
with Section 8.01.
1
<PAGE>
"Anniversary Date" means March 8, 2001 and March 8 in each succeeding
calendar year occurring during the term of this Agreement.
"Applicable Lending Office" means, with respect to each Lender, such
Lender's Domestic Lending Office in the case of a Base Rate Advance and
such Lender's Eurocurrency Lending Office in the case of a Eurocurrency
Rate Advance.
"Assignment and Acceptance" means an assignment and acceptance entered
into by a Lender and an Eligible Assignee, and accepted by the
Administrative Agent and the Borrower, in substantially the form of Exhibit
B hereto.
"Assuming Lender" has the meaning specified in Section 2.19(d).
"Assumption Agreement" has the meaning specified in Section
2.19(d)(ii).
"Bank One" has the meaning specified in the recital of parties to this
Agreement.
"Base Rate" means, for each day in any period, a fluctuating interest
rate per annum as shall be in effect from time to time, which rate per
annum shall at all times for such day during such period be equal to the
highest of:
(a) the rate of interest announced publicly by Citibank in New
York, New York, from time to time, as Citibank's base rate in effect
for such day;
(b) the sum (adjusted to the nearest 1/4 of one percent or, if
there is no nearest 1/4 of one percent, to the next higher 1/4 of one
percent) of (i) 0.50%, (ii) the rate obtained by dividing (A) the
latest three-week moving average of secondary market morning offering
rates in the United States for three-month certificates of deposit of
major United States money market banks, such three-week moving average
(adjusted on the basis of a year of 365 or 366 days, as the case may
be) being determined weekly on each Monday (or, if any such day is not
a Business Day, on the next succeeding Business Day) for the three-
week period ending on the previous Friday by Citibank on the basis of
such rates reported by certificate of deposit dealers to, and
published by, the Federal Reserve Bank of New York or, if such
publication shall be suspended or terminated, on the basis of
quotations for such rates received by Citibank from three New York
certificate of deposit dealers of recognized standing selected by
Citibank, by (B) a percentage equal to 100% minus the average of the
daily percentages specified during such three-week period by the Board
of Governors of the Federal Reserve System (or any successor thereto)
for determining the maximum reserve requirement (including, but not
limited to, any emergency, supplemental or other marginal reserve
requirement) for Citibank in respect of liabilities consisting of or
including (among other liabilities) three-month U.S. dollar
nonpersonal time deposits in the United States, and (iii) the average
during such three-week period of the annual assessment rates estimated
by Citibank for determining the then current annual assessment payable
by Citibank to the Federal Deposit Insurance Corporation (or any
successor thereto) for insuring U.S. dollar deposits of Citibank in
the United States; and
(c) 0.50% per annum above the Federal Funds Rate for such day.
"Base Rate Advance" means an Advance which bears interest as provided
in Section 2.06(a)(i).
2
<PAGE>
"Borrowing" means a borrowing consisting of simultaneous Advances of
the same Type made by each of the Lenders pursuant to Section 2.01.
"Business Day" means a day of the year on which banks are not required
or authorized to close in Los Angeles, California, or New York City, New
York, or San Francisco, California, or, if the applicable Business Day
relates to any Eurocurrency Rate Advances, on which dealings are carried on
in the London interbank market.
"Citibank" means Citibank, N.A., a national banking association.
"Co-Documentation Agents" has the meaning specified in the recital of
parties to this Agreement.
"Commitment" has the meaning specified in Section 2.01.
"Commitment Date" has the meaning specified in Section 2.19(b).
"Commitment Increase" has the meaning specified in Section 2.19(a).
"Committed Currencies" means lawful currency of the United Kingdom of
Great Britain and Northern Ireland, lawful currency of Japan and lawful
currency of the European Economic and Monetary Union.
"Consolidated EBITDA" means, for any period, (a) net income or net
loss, as the case may be, of the Borrower and its subsidiaries on a
consolidated basis for such period, as determined in accordance with GAAP
for such period, plus (b) the sum of all amounts which, in the
determination of such consolidated net income or net loss, as the case may
be, for such period, have been deducted for (i) Consolidated Interest
Expense, (ii) consolidated income tax expense, (iii) consolidated
depreciation expense, and (iv) consolidated amortization expense, in each
case determined in accordance with GAAP for such period.
"Consolidated Interest Expense" means, for any period, total interest
expense of the Borrower and its subsidiaries with respect to all
outstanding Debt of the Borrower and its subsidiaries during such period,
all as determined on a consolidated basis for such period and in accordance
with GAAP for such period.
"Convert", "Conversion" and "Converted" each refers to a conversion of
Advances of one Type into Advances of another Type pursuant to Section 2.08
or 2.09.
"CUSA" has the meaning specified in the recital of parties to this
Agreement.
"Debt" means, with respect to any Person: (a) indebtedness for
borrowed money, (b) obligations evidenced by bonds, debentures, notes or
other similar instruments, (c) obligations to pay the deferred purchase
price of property or services (other than trade payables incurred in the
ordinary course of business), (d) obligations as lessee under leases which
shall have been or should be, in accordance with GAAP, recorded as capital
leases and (e) obligations under direct or indirect guaranties in respect
of, and obligations (contingent or otherwise) to purchase or otherwise
acquire, or otherwise to assure a creditor against loss in respect of,
indebtedness or obligations of any other Person of the kinds referred to in
clauses (a) through (d) above.
"Declining Lender" has the meaning specified in Section 2.20(b).
3
<PAGE>
"Disney" means Disney Enterprises, Inc., a Delaware corporation and a
wholly owned subsidiary of the Borrower, or any successor thereto.
"Dollars" and the "$" sign each means lawful currency of the United
States.
"Domestic Lending Office" means, with respect to any Lender, the
office of such Lender specified as its "Domestic Lending Office" opposite
its name on Schedule I hereto or in the Assumption Agreement or the
Assignment and Acceptance, as the case may be, pursuant to which it became
a Lender, or such other office of such Lender as such Lender may from time
to time specify to the Borrower and the Administrative Agent for such
purpose.
"Effective Date" has the meaning specified in Section 3.01.
"Eligible Assignee" means (a) a Lender or any Affiliate of a Lender or
(b) any bank or other financial institution, or any other Person, which has
been approved in writing by the Borrower and the Administrative Agent as an
Eligible Assignee for purposes of this Agreement; provided, however, that
neither the Borrower's approval nor the Administrative Agent's approval
shall be unreasonably withheld; and provided further, however, that the
Borrower may withhold its approval if the Borrower reasonably believes that
an assignment to such Eligible Assignee pursuant to Section 8.07 will
result in the incurrence of increased costs payable by the Borrower
pursuant to Section 2.11 or 2.14.
"Environmental Claim" means any administrative, regulatory or judicial
action, suit, demand, claim, lien, notice or proceeding relating to any
Environmental Law or any Environmental Permit.
"Environmental Law" means any federal, state or local statute, law,
rule, regulation, ordinance, code or duly promulgated policy or rule of
common law, now or hereafter in effect, and in each case as amended, and
any judicial or administrative interpretation thereof, including any order,
consent decree or judgment, relating to the environment, health, safety or
any Hazardous Material.
"Environmental Permit" means any permit, approval, identification
number, license or other authorization required under any applicable
Environmental Law.
"Equivalent"in Dollars of any Committed Currency on any date means the
equivalent in Dollars of such Committed Currency determined by using the
quoted spot rate at which the Sub-Agent's principal office in London offers
to exchange Dollars for such Committed Currency in London at or about 4:00
P.M. (London time) (unless otherwise indicated by the terms of this
Agreement) on such date as is required pursuant to the terms of this
Agreement, and the "Equivalent" in any Committed Currency of Dollars means
the equivalent in such Committed Currency of Dollars determined by using
the quoted spot rate at which the Sub-Agent's principal office in London
offers to exchange such Committed Currency for Dollars in London at or
about 4:00 P.M. (London time) (unless otherwise indicated by the terms of
this Agreement) on such date as is required pursuant to the terms of this
Agreement.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and the rulings
issued thereunder.
4
<PAGE>
"ERISA Affiliate" means any Person that for purposes of Title IV of
ERISA is a member of the Borrower's controlled group, or under common
control with the Borrower, within the meaning of Section 414 of the
Internal Revenue Code of 1986, as amended.
"ERISA Event" means: (a) (i) the occurrence with respect to a Plan of
a reportable event, within the meaning of Section 4043 of ERISA, unless the
30-day notice requirement with respect thereto has been waived by the
Pension Benefit Guaranty Corporation or (ii) the provisions of paragraph
(1) of Section 4043(b) of ERISA (without regard to paragraph (2) of such
Section) are applicable with respect to a contributing sponsor, as defined
in Section 4001(a)(13) of ERISA, of a Plan, and an event described in
paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA could
reasonably be expected to occur with respect to such Plan within the
following 30 days; (b) the provision by the administrator of any Plan of a
notice of intent to terminate such Plan, pursuant to Section 4041(a)(2) of
ERISA (including any such notice with respect to a plan amendment referred
to in Section 4041(e) of ERISA); (c) the cessation of operations by the
Borrower or any ERISA Affiliate at a facility in the circumstances
described in Section 4062(e) of ERISA; (d) the withdrawal by the Borrower
or any ERISA Affiliate from a Multiple Employer Plan during a plan year for
which it was a substantial employer, as defined in Section 4001(a)(2) of
ERISA; (e) the failure by the Borrower or any ERISA Affiliate to make a
payment to a Plan described in Section 302(f)(1)(A) of ERISA; (f) the
adoption of an amendment to a Plan requiring the provision of security to
such Plan, pursuant to Section 307 of ERISA; or (g) the institution by the
Pension Benefit Guaranty Corporation of proceedings to terminate a Plan,
pursuant to Section 4042 of ERISA, or the occurrence of any event or
condition which is reasonably likely to constitute grounds under Section
4042 of ERISA for the termination of, or the appointment of a trustee to
administer, a Plan.
"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.
"Eurocurrency Lending Office" means, with respect to any Lender, the
office of such Lender specified as its "Eurocurrency Lending Office"
opposite its name on Schedule I hereto or in the Assumption Agreement or
the Assignment and Acceptance, as the case may be, pursuant to which it
became a Lender (or, if no such office is specified, its Domestic Lending
Office), or such other office of such Lender as such Lender may from time
to time specify to the Borrower and the Administrative Agent for such
purpose.
"Eurocurrency Rate" means, for any Interest Period for each
Eurocurrency Rate Advance 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 rate per annum at which deposits in Dollars or the
applicable Committed Currency, as the case may be, are offered by the
principal office of each of the Reference Banks in London, England to prime
banks in the London interbank market at 11:00 A.M. (London time) two
Business Days before the first day of such Interest Period for a period
equal to such Interest Period and in an amount substantially equal to such
Reference Bank's (or, in the case of Citibank, CUSA's) Eurocurrency Rate
Advance comprising part of such Borrowing. The Eurocurrency Rate for any
Interest Period for each Eurocurrency Rate Advance comprising part of the
same Borrowing shall be determined by the Administrative Agent on the basis
of applicable rates furnished to and received by the Administrative Agent
from the Reference Banks two Business Days before the first day of such
Interest Period, subject, however, to the provisions of Section 2.08.
5
<PAGE>
"Eurocurrency Rate Advance" means an Advance denominated in Dollars or
a Committed Currency which bears interest as provided in Section
2.06(a)(ii).
"Eurocurrency Rate Margin" means, as of any date, a percentage per
annum determined by reference to the Public Debt Rating in effect on such
date as set forth below:
<TABLE>
<CAPTION>
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Public Debt Rating
S&P/Moody's Applicable Margin
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<S> <C>
Level 1
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AA-/Aa3 or above 0.115%
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Level 2
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Lower than AA-/Aa3 but 0.130%
at least A/A2
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Level 3
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Lower than A/A2 but 0.140%
at least A-/A3
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Level 4
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Lower than A-/A3 but 0.165%
at least BBB+/Baa1
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Level 5
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Lower than BBB+/Baal or no 0.300%
Public Debt Rating in effect
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</TABLE>
"Eurocurrency Rate Reserve Percentage" means, with respect to any
Lender for any Interest Period for any Eurocurrency Rate Advance, 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 thereto) for determining the maximum reserve requirement
(including, without limitation, any emergency, supplemental or other
marginal reserve requirement) for such Lender with respect to liabilities
or assets consisting of or including Eurocurrency Liabilities (or with
respect to any other category of liabilities that includes deposits by
reference to which the interest rate on Eurocurrency Rate Advances is
determined) having a term equal to such Interest Period.
"Events of Default" has the meaning specified in Section 6.01.
"Existing Credit Agreement" means the Five-Year Credit Agreement dated
as of October 30, 1996 among the Borrower, the financial institutions party
thereto, CUSA, as administrative agent thereunder, and Credit Suisse, a
Swiss banking corporation, and Bank of America National Trust & Savings
Association, a national banking corporation, as co-administrative agents
thereunder, as amended, supplemented or otherwise modified to (but not
including) the Effective Date.
"Extension Date" has the meaning specified in Section 2.20(b).
"Extending Lender" has the meaning specified in Section 2.20(b).
"Facility Fee Percentage" means, as of any date, a percentage per
annum determined by reference to the Public Debt Rating in effect on such
date as set forth below:
6
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<TABLE>
<CAPTION>
Public Debt Rating
S&P/Moody's Percentage
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<S> <C>
Level 1
-------
AA-/Aa3 or above 0.060%
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Level 2
-------
Lower than AA-/Aa3 but 0.070%
at least A/A2
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Level 3
-------
Lower than A/A2 but 0.085%
at least A-/A3
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Level 4
-------
Lower than A-/A3 but 0.110%
at least BBB+/Baa1
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Level 5
-------
Lower than BBB+/Baa1 or 0.150%
no Public Debt Rating in effect
-----------------------------------------------------------------------------
</TABLE>
"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
immediately preceding Business Day) by the Federal Reserve Bank of New
York, or, if such rate is not so published for any day which is a Business
Day, the average of the quotations for such day on such transactions
received by the Administrative Agent from three federal funds brokers of
recognized standing selected by the Administrative Agent.
"GAAP" means generally accepted accounting principles consistent with
those applied in the preparation of the audited financial statements
referred to in Section 4.01(c) dated September 30, 1999, subject, however,
to the provisions of Section 1.03.
"Hazardous Material" means (a) any petroleum or petroleum product,
natural or synthetic gas, asbestos in any form that is or could become
friable, urea formaldehyde foam insulation, or radon gas, (b) any substance
defined as or included in the definition of "hazardous substances",
hazardous wastes", hazardous materials", "toxic substances", "contaminants"
or "pollutants", or words of similar import, under any applicable
Environmental Law or (c) any other substance exposure to which is regulated
by any governmental or regulatory authority.
"HSBC" has the meaning specified in the recital of parties to this
Agreement.
"Increase Date" has the meaning specified in Section 2.19(a).
"Increasing Lender" has the meaning specified in Section 2.19(b).
"Indemnified Matters" has the meaning specified in Section 8.08.
"Indemnified Party" has the meaning specified in Section 8.08.
"Informed Parties" has the meaning specified in Section 8.09.
"Initial Lender" has the meaning specified in the recital of parties
to this Agreement.
7
<PAGE>
"Interest Period" means, for each Eurocurrency Rate Advance comprising
part of the same Borrowing, the period commencing on the date of such
Eurocurrency Rate Advance or on the date of the Conversion of any Base Rate
Advance into such Eurocurrency Rate Advance and ending on the last day of
the period selected by the Borrower pursuant to the provisions below and,
thereafter, each subsequent period commencing on the last day of the
immediately preceding Interest Period and ending on the last day of the
period selected by the Borrower pursuant to the provisions below. The
duration of each such Interest Period shall be one, two, three, six or, if
generally available to all of the Lenders, twelve months as the Borrower
may, upon notice received by the Administrative Agent not later than (x)
11:00 A.M. (New York City time) on the third Business Day prior to the
first day of such Interest Period for each Eurocurrency Rate Advance
denominated in any Committed Currency, or (y) 1:00 P.M. (New York City
time) on the third Business Day prior to the first day of such Interest
Period for each Eurocurrency Rate Advance denominated in Dollars, select;
provided, however, that:
(i) Interest Periods commencing on the same date for
Eurocurrency Rate Advances comprising part of the same Borrowing shall
be of the same duration;
(ii) whenever the last day of any Interest Period would
otherwise occur on a day other than a Business Day, the last day of
such Interest Period shall be extended to occur on the next succeeding
Business Day, provided, however, that if such extension would cause
the last day of such Interest Period to occur in the next succeeding
calendar month, the last day of such Interest Period shall occur on
the immediately preceding Business Day;
(iii) whenever the first day of any Interest Period occurs on a
day of an initial calendar month for which there is no numerically
corresponding day in the calendar month that succeeds such initial
calendar month by the number of months equal to the number of months
in such Interest Period, such Interest Period shall end on the last
Business Day of such succeeding calendar month; and
(iv) the Borrower may not select for any Advance any Interest
Period which ends after the scheduled Termination Date then in effect.
"IRS" has the meaning specified in Section 2.14(e).
"Lenders" means, collectively, each Initial Lender, each Assuming
Lender that shall become a party hereto pursuant to Section 2.19 or 2.20
and each Eligible Assignee that shall become a party hereto pursuant to
Section 8.07; provided, however, that for purposes of any determination to
be made under Section 2.07, 2.11, 2.12 or 8.04(b) with respect to CUSA, in
its capacity as a Lender, the term "Lenders" shall be deemed to include
Citibank.
"Lien" means any lien, security interest or other charge or
encumbrance of any kind, or any other type of preferential arrangement
which has the same effect as a lien or security interest.
"Majority Lenders" means, at any time, Lenders owed at least a
majority in interest of the aggregate unpaid principal amount of the
Advances owing to the Lenders at such time, or, if no such principal amount
is outstanding at such time, Lenders having at least a majority in interest
of the Commitments at such time; provided, however, that neither the
Borrower nor any of its Affiliates, if a Lender, shall be included in the
determination of the Majority Lenders at any time.
8
<PAGE>
"Material Subsidiary" means, at any date of determination, a
subsidiary of the Borrower that, either individually or together with its
subsidiaries, taken as a whole, has total assets exceeding $100,000,000 on
such date.
"Measurement Period" means, at any date of determination, the most
recently completed four consecutive fiscal quarters of the Borrower on or
immediately prior to such date.
"Moody's" means Moody's Investors Service, Inc. or any successor
thereto.
"Multiemployer Plan" means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate is making
or accruing an obligation to make contributions, or has within any of the
preceding five plan years made or accrued an obligation to make
contributions.
"Multiple Employer Plan" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (i) is maintained for employees of the
Borrower or any ERISA Affiliate and at least one Person other than the
Borrower and the ERISA Affiliates or (ii) was so maintained and in respect
of which the Borrower or an ERISA Affiliate could have liability under
Section 4064 or 4069 of ERISA in the event such plan has been or were to be
terminated.
"Note" has the meaning specified in Section 2.17.
"Notice of Borrowing" has the meaning specified in Section 2.02(a).
"Other Taxes" has the meaning specified in Section 2.14(b).
"Payment Office" means, for any Committed Currency, such office of
Citibank as shall be from time to time selected by the Administrative Agent
and notified by the Administrative Agent to the Borrower and the Lenders.
"Person" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association,
joint venture or other entity, or a government or any political subdivision
or agency thereof.
"Plan" means a Single Employer Plan or a Multiple Employer Plan.
"Public Debt Rating" means, as of any date of determination, the
higher rating that has been most recently announced by either S&P or
Moody's, as the case may be, for any class of non-credit enhanced long-term
senior unsecured public debt issued by the Borrower. For purposes of the
foregoing, (a) if only one of S&P and Moody's shall have in effect a Public
Debt Rating, the Eurocurrency Rate Margin and the Facility Fee Percentage
shall be determined by reference to the available rating; (b) if neither
S&P nor Moody's shall have in effect a Public Debt Rating, the Eurocurrency
Rate Margin and the Facility Fee Percentage will be set in accordance with
Level 5 under the definition of "Eurocurrency Rate Margin" or "Facility Fee
Percentage", as the case may be; (c) if the ratings established by S&P and
Moody's shall fall within different levels, the Eurocurrency Rate Margin
and the Facility Fee Percentage shall be based upon the higher rating; (d)
if any rating established by S&P or Moody's shall be changed, such change
shall be effective as of the date on which such change is first announced
publicly by the rating agency making such change; and (e) if S&P or Moody's
shall change the basis on which ratings are established, each reference to
the Public Debt Rating announced by S&P or
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Moody's, as the case may be, shall refer to the then equivalent rating by
S&P or Moody's, as the case may be.
"Reference Banks" means Citibank, Bank One and HSBC or, in the event
that less than two of such banks remain Lenders hereunder at any time, any
other commercial bank designated by the Borrower and approved by the
Majority Lenders as constituting a "Reference Bank" hereunder.
"Register" has the meaning specified in Section 8.07(c).
"S&P" means Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., or any successor thereto.
"SEC" has the meaning specified in Section 5.01(e)(i).
"Significant Subsidiary" means any subsidiary of the Borrower or any
of its subsidiaries that constitutes a "significant subsidiary" under Rule
405 promulgated by the SEC under the Securities Act of 1933, as amended.
"Single Employer Plan" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (i) is maintained for employees of the
Borrower or an ERISA Affiliate and no Person other than the Borrower and
the ERISA Affiliates or (ii) was so maintained and in respect of which the
Borrower or an ERISA Affiliate could have liability under Section 4069 of
ERISA in the event such plan has been or were to be terminated.
"Sub-Agent" means Citibank International plc.
"Taxes" has the meaning specified in Section 2.14(a).
"Termination Date" means the earlier of (a) March 7, 2005, subject to
the extension thereof pursuant to Section 2.20, and (b) the date of
termination in whole of the aggregate Commitments pursuant to Section 2.04
or 6.01; provided, however, that the Termination Date of any Lender that is
a Declining Lender in connection with any requested extension pursuant to
Section 2.20 shall be the Termination Date in effect immediately prior to
the applicable Extension Date for all purposes of this Agreement.
"364-Day Credit Agreement" means the 364-Day Credit Agreement dated as
of March 1, 2000 among the Borrower, the banks, financial institutions and
other institutional lenders party thereto, CUSA, as administrative agent
thereunder, Bank of America, N.A., a national banking corporation, as
syndication agent, and The Chase Manhattan Bank, a national banking
corporation, and Credit Suisse First Boston, a Swiss banking corporation,
as co-documentation agents thereunder, as such agreement may be amended,
supplemented or otherwise modified hereafter from time to time.
"Type" has the meaning specified in the definition of "Advance".
"United States" and "U.S." each means the United States of America.
"Utilization Fee" has the meaning specified in Section 2.03(b).
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SECTION 1.02. Computation of Time Periods. In this Agreement in the
---------------------------
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
means "to but excluding".
SECTION 1.03. Accounting Terms. All accounting terms not
----------------
specifically defined herein shall be construed in accordance with GAAP;
provided, however, that if any changes in accounting principles from those used
in the preparation of the financial statements referred to in Section 4.01(c)
dated September 30, 1999 hereafter occur by reason of the promulgation of rules,
regulations, pronouncements, opinions or other requirements of the Financial
Accounting Standards Board or the American Institute of Certified Public
Accountants (or successors thereto or agencies with similar functions) and
result in a change in the method of calculation of financial covenants or the
terms related thereto contained in this Agreement, the Borrower shall, at its
option, (i) furnish to the Administrative Agent, together with each delivery of
the consolidated financial statements of the Borrower and its subsidiaries
required to be delivered pursuant to Section 5.01(e), a written reconciliation
setting forth the differences that would have resulted if such financial
statements had been prepared utilizing accounting principles and policies in
conformity with those used to prepare the financial statements referred to in
Section 4.01(c) dated September 30, 1999 or (ii) enter into negotiations with
the Administrative Agent and the Lenders to amend such financial covenants or
terms equitably to reflect such changes so that the criteria for evaluating the
financial condition of the Borrower and its subsidiaries shall be the same after
such changes as if such changes had not been made; provided, however, that at
all times in the case of clause (i) above, and in the case of clause (ii) above
until the amendment referred to in such clause (ii) becomes effective, all
covenants and related calculations under this Agreement shall be performed,
observed and determined as though no such changes in accounting principles had
been made.
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The Advances. Each Lender severally agrees, on the
------------
terms and conditions hereinafter set forth, to make Advances to the Borrower
from time to time on any Business Day during the period from the Effective Date
until the Termination Date in an aggregate amount (based in respect of any
Advances denominated in a Committed Currency on the Equivalent in Dollars
determined on the date of delivery of the applicable Notice of Borrowing) not to
exceed at any time outstanding the Dollar amount set forth opposite such
Lender's name on the signature pages hereof or, if such Lender has become a
Lender hereunder pursuant to an Assumption Agreement, the Dollar amount set
forth as the Commitment of such Lender in such Assumption Agreement or, if such
Lender has entered into an Assignment and Acceptance, the Dollar amount set
forth for such Lender in the Register maintained by the Administrative Agent
pursuant to Section 8.07(c), as such amount may be reduced pursuant to Section
2.04 or increased pursuant to Section 2.19 (such Lender's "Commitment"). Each
Borrowing shall be in an aggregate amount of $5,000,000 or an integral multiple
of $1,000,000 in excess thereof (or the Equivalent thereof in any Committed
Currency determined on the date of delivery of the applicable Notice of
Borrowing) and shall consist of Advances of the same Type made on the same day
by the Lenders ratably according to their respective Commitments. Within the
limits of each Lender's Commitment, the Borrower from time to time may borrow
under this Section 2.01, prepay pursuant to Section 2.10 and reborrow under this
Section 2.01.
SECTION 2.02. Making the Advances. (a) Each Borrowing shall be made
-------------------
on notice, given not later than (x) 11:00 A.M. (New York City time) on the same
Business Day as the date of a proposed Borrowing comprised of Base Rate
Advances, (y) 11:00 A.M. (New York City time) on the third Business Day prior to
the date of a proposed Borrowing comprised of Eurocurrency Rate Advances
denominated in any Committed Currency, or (z) 1:00 P.M. (New York City time) on
the third Business Day prior to the date of a proposed Borrowing comprised of
Eurocurrency Rate Advances denominated in
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Dollars, by the Borrower to the Administrative Agent (and, in the case of a
Borrowing consisting in Eurocurrency Rate Advances denominated in any Committed
Currency, simultaneously to the Sub-Agent), which shall give to each Lender
prompt notice thereof by telecopier or telex. Each such notice of a Borrowing (a
"Notice of Borrowing") shall be by telecopier or telex, or by telephone,
confirmed immediately by telecopier or telex, in substantially the form of
Exhibit A hereto, specifying therein the requested (i) date of such Borrowing
(which shall be a Business Day), (ii) Type of Advances comprising such
Borrowing, (iii) aggregate amount of such Borrowing, and (iv) in the case of a
Borrowing comprised of Eurocurrency Rate Advances, initial Interest Period and
currency for each such Advance. Each Lender shall, before (A) 11:00 A.M. (New
York City time) on the date of such Borrowing consisting of Advances denominated
in Dollars or (B) 11:00 A.M. (London time) on the date of such Borrowing
consisting of Advances denominated in any Committed Currency, make available for
the account of its Applicable Lending Office to the Administrative Agent at the
Administrative Agent's (or the Sub-Agent's, as the case may be) Account, in same
day funds, such Lender's ratable portion of such Borrowing. After the
Administrative Agent's receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Administrative Agent will
make such funds available to the Borrower at the office where the Administrative
Agent's (or Sub-Agent's, as the case may be) Account is maintained.
(b) Anything in subsection (a) above or Section 2.01 to the contrary
notwithstanding, the Borrower may not select Eurocurrency Rate Advances for any
Borrowing if the aggregate amount of such Borrowing is less than $20,000,000 (or
the Equivalent thereof in any Committed Currency determined on the date of
delivery of the applicable Notice of Borrowing) or if the obligation of the
Lenders to make Eurocurrency Rate Advances shall be suspended at such time
pursuant to Section 2.08.
(c) Each Notice of Borrowing shall be irrevocable and binding on the
Borrower. In the case of any Borrowing which the related Notice of Borrowing
specifies as to be comprised of Eurocurrency Rate Advances, the Borrower shall
indemnify each Lender against any loss, cost or expense incurred by such Lender
as a result of any failure to fulfill on or before the date specified in such
Notice of Borrowing for such Borrowing the applicable conditions set forth in
Article III, including, without limitation, any loss, cost or expense incurred
by reason of the liquidation or redeployment of deposits or other funds acquired
by such Lender to fund the Advance to be made by such Lender as part of such
Borrowing when such Advance, as a result of such failure, is not made on such
date.
(d) Unless the Administrative Agent shall have received notice from a
Lender prior to the date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender's ratable portion of such
Borrowing, the Administrative Agent may assume that such Lender has made such
portion available to the Administrative Agent on the date of such Borrowing in
accordance with subsection (a) of this Section 2.02 and the Administrative Agent
may, in reliance upon such assumption, make available to the Borrower on such
date a corresponding amount. If and to the extent that any Lender shall not
have so made such ratable portion available to the Administrative Agent, such
Lender agrees to pay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to the Borrower until the date such amount is paid
to the Administrative Agent, at (A) the Federal Funds Rate in the case of
Advances denominated in Dollars or (B) the cost of funds incurred by the
Administrative Agent in respect of such amount in the case of Advances
denominated in Committed Currencies; provided, however, that (i) within two
Business Days after any Lender shall fail to make such ratable portion available
to the Administrative Agent, the Administrative Agent shall notify the Borrower
of such failure and (ii) if such Lender shall not have paid such corresponding
amount to the Administrative Agent within two Business Days after such demand is
made of such Lender by the Administrative Agent, the Borrower agrees to repay to
the Administrative Agent forthwith, upon demand by the Administrative Agent to
the Borrower, such corresponding amount together with interest thereon, for each
day from the date such
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<PAGE>
amount is made available to the Borrower until the date such amount is repaid to
the Administrative Agent, at the interest rate applicable at the time to
Advances comprising such Borrowing. If and to the extent such corresponding
amount shall be paid by such Lender to the Administrative Agent in accordance
with this Section 2.02(d), such amount so paid shall constitute such Lender's
Advance as part of such Borrowing for all purposes of this Agreement.
(e) The failure of any Lender to make the Advance to be made by it as
part of any Borrowing shall not relieve any other Lender of its obligation, if
any, hereunder to make its Advance on the date of such Borrowing, but no Lender
shall be responsible for the failure of any other Lender to make the Advance to
be made by such other Lender on the date of any Borrowing.
SECTION 2.03. Fees. (a) The Borrower agrees to pay to each Lender a
----
facility fee on the average daily amount (whether used or unused) of such
Lender's Commitment from the Effective Date, in the case of each Initial Lender,
and from the later of (a) the Effective Date and (b) the effective date
specified in the Assumption Agreement or the Assignment and Acceptance pursuant
to which it became a Lender, in the case of each other Lender, until, in each
case, the Termination Date, payable quarterly in arrears on the first Business
Day of each January, April, July and October during the term of such Lender's
Commitment, commencing April 3, 2000, and on the Termination Date, at the rate
per annum equal to the Facility Fee Percentage in effect from time to time.
(b) Utilization Fee. With respect to every day on which the sum of
---------------
all outstanding Advances is equal to or greater than 50% of the aggregate amount
of all Commitments, the Borrower agrees to pay to the Agent for the account of
each Lender a utilization fee based on the daily aggregate amount of such
Lender's Commitment, calculated on a daily basis and payable quarterly in
arrears at a rate per annum (the "Utilization Fee Rate") equal at all times to
--------------------
.05%.
SECTION 2.04. Reduction of the Commitments. The Borrower shall have
----------------------------
the right, upon at least three Business Days' notice to the Administrative
Agent, to terminate in whole or reduce ratably in part the unused portions of
the respective Commitments of the Lenders, provided that each partial reduction
shall be in the aggregate amount of $5,000,000 or an integral multiple of
$1,000,000 in excess thereof. Once terminated, such Commitments may not be
reinstated.
SECTION 2.05. Repayment of Advances. The Borrower shall repay to
---------------------
each Lender on the Termination Date the aggregate principal amount of the
Advances owing to such Lender on such date.
SECTION 2.06. Interest on Advances. (a) Scheduled Interest. The
-------------------- ------------------
Borrower shall pay to each Lender interest on the unpaid principal amount of
each Advance owing to such Lender from the date of such Advance until such
principal amount shall be paid in full, at the following rates per annum:
(i) Base Rate Advances. During such periods as such Advance is a Base
------------------
Rate Advance, a rate per annum equal at all times to the remainder of (A)
the Base Rate in effect from time to time minus (B) the Facility Fee
Percentage in effect from time to time minus (C) the Utilization Fee Rate,
to the extent that any Utilization Fee is payable pursuant to Section
2.03(b) during such period, payable quarterly in arrears on the first
Business Day of each January, April, July and October and during such
periods and on the date such Base Rate Advance shall be Converted or paid
in full.
(ii) Eurocurrency Rate Advances. During such periods as such Advance
--------------------------
is a Eurocurrency Rate Advance, a rate per annum equal at all times during
each Interest Period for such Advance to the sum of (A) the Eurocurrency
Rate for such Interest Period for such Advance and (B) the Eurocurrency
Rate Margin in effect from time to time, payable in arrears on the last
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<PAGE>
day of such Interest Period and, if such Interest Period has a duration of
more than three months, on the date which occurs three months and, if
applicable, six months, nine months and twelve months after the first day
of such Interest Period and on the date such Eurocurrency Rate Advance
shall be Converted or paid in full.
(b) Default Interest. The Borrower shall pay interest on the unpaid
----------------
principal amount of each Advance that is not paid when due and on the unpaid
amount of all interest, fees and other amounts payable hereunder that is not
paid when due, payable on demand, at a rate per annum equal at all times to (i)
in the case of any amount of principal, the greater of (x) 2% per annum above
the rate per annum required to be paid on such Advance immediately prior to the
date on which such amount became due and (y) 2% per annum above the Base Rate in
effect from time to time and (ii) to the fullest extent permitted by law, in the
case of all other amounts, 2% per annum above the Base Rate in effect from time
to time.
SECTION 2.07. Additional Interest on Eurocurrency Rate Advances. The
-------------------------------------------------
Borrower shall pay to each Lender, so long as such Lender shall be required
under regulations of the Board of Governors of the Federal Reserve System to
maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency Liabilities, additional interest on the unpaid principal
amount of each Eurocurrency Rate Advance of such Lender, from the date of such
Advance until such principal amount is paid in full, at an interest rate per
annum equal at all times to the remainder obtained by subtracting (i) the
Eurocurrency Rate for the applicable Interest Period for such Advance from (ii)
the rate obtained by dividing such Eurocurrency Rate by a percentage equal to
100% minus the Eurocurrency Rate Reserve Percentage of such Lender for such
Interest Period, payable on each date on which interest is payable on such
Advance. Such additional interest shall be determined by such Lender and
notified in reasonable detail to the Borrower through the Administrative Agent.
SECTION 2.08. Interest Rate Determination. (a) Each Reference Bank
---------------------------
agrees to furnish to the Administrative Agent timely information for the purpose
of determining each Eurocurrency Rate. If any one or more of the Reference
Banks shall not furnish such timely information to the Administrative Agent for
the purpose of determining such interest rate, the Administrative Agent shall
determine such interest rate on the basis of timely information furnished by the
remaining Reference Banks.
(b) The Administrative Agent shall give prompt notice to the Borrower
and the Lenders of the applicable interest rate determined by the Administrative
Agent for purposes of Section 2.06(a)(i) or (a)(ii), and the rate, if any,
furnished by each Reference Bank for the purpose of determining the applicable
interest rate under Section 2.06(a)(ii).
(c) If fewer than two Reference Banks furnish timely information to
the Administrative Agent for purposes of determining the Eurocurrency Rate for
any Eurocurrency Rate Advances, (i) the Administrative Agent shall forthwith
notify the Borrower and the Lenders that the interest rate cannot be determined
for such Eurocurrency Rate Advances, (ii) each such Advance will automatically,
on the last day of the then existing Interest Period therefor, Convert into a
Base Rate Advance (or, if such Advance is then a Base Rate Advance, will
continue as a Base Rate Advance), and (iii) the obligation of the Lenders to
make, or to Convert Advances into, Eurocurrency Rate Advances shall be suspended
until the Administrative Agent shall notify the Borrower and the Lenders that
the circumstances causing such suspension no longer exist.
(d) If, with respect to any Eurocurrency Rate Advances, the Majority
Lenders notify the Administrative Agent that (i) they are unable to obtain
matching deposits in the London inter-bank market at or about 11:00 A.M. (London
time) on the second Business Day before the making of a
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Borrowing in sufficient amounts to fund their respective Eurocurrency Rate
Advances as a part of such Borrowing during its Interest Period or (ii) the
Eurocurrency Rate for any Interest Period for such Advances will not adequately
reflect the cost to such Majority Lenders (which cost each such Majority Lender
reasonably determines in good faith is material) of making, funding or
maintaining their respective Eurocurrency Rate Advances for such Interest
Period, the Administrative Agent shall forthwith so notify the Borrower and the
Lenders, whereupon, unless the Eurocurrency Rate Margin shall be increased to
reflect such costs as determined by such Majority Lenders and as agreed by the
Borrower, (A) the obligation of the Lenders to make, or to Convert Base Rate
Advances into, Eurocurrency Rate Advances shall be suspended until the
Administrative Agent shall notify the Borrower and the Lenders that the
circumstances causing such suspension no longer exist, and (B) the Borrower
will, on the last day of the then existing Interest Period therefor, (1) if such
Eurocurrency Rate Advances are denominated in Dollars, either (x) prepay such
Advances or (y) Convert such Advances into Base Rate Advances and (2) if such
Eurocurrency Rate Advances are denominated in any Committed Currency, either (x)
prepay such Advances or (y) redenominate such Advances into an Equivalent amount
of Dollars and Convert such Advances into Base Rate Advances. The Administrative
Agent shall use reasonable efforts to determine from time to time whether the
circumstances causing such suspension no longer exist and, promptly after the
Administrative Agent knows that the circumstances causing such suspension no
longer exist, the Administrative Agent shall so notify the Borrower and the
Lenders.
(e) If the Borrower shall fail to select the duration of any Interest
Period for any Eurocurrency Rate Advances in accordance with the provisions
contained in the definition of "Interest Period" in Section 1.01, the
Administrative Agent will forthwith so notify the Borrower and the Lenders and
such Advances will automatically, on the last day of the then existing Interest
Period therefor, (i) if such Eurocurrency Rate Advances are denominated in
Dollars, be Converted into Base Rate Advances and (ii) if such Eurocurrency Rate
Advances are denominated in a Committed Currency, be redenominated into an
Equivalent amount of Dollars and be Converted into Base Rate Advances.
(f) On the date on which the aggregate unpaid principal amount of
Eurocurrency Rate Advances comprising any Borrowing shall be reduced, by payment
or prepayment or otherwise, to less than $20,000,000, such Eurocurrency Rate
Advances shall automatically Convert into Base Rate Advances and, on and after
such date, the right of the Borrower to Convert such Advances into Eurocurrency
Rate Advances shall terminate; provided, however, that if and so long as each
such Eurocurrency Rate Advance shall have the same Interest Period as
Eurocurrency Rate Advances comprising another Borrowing or Borrowings, and the
aggregate unpaid principal amount of all such Eurocurrency Rate Advances shall
equal or exceed $20,000,000, the Borrower shall have the right to continue all
such Eurocurrency Rate Advances as, or to Convert all such Advances into,
Eurocurrency Rate Advances having such Interest Period.
(g) Upon the occurrence and during the continuance of any Event of
Default under Section 6.01(a), (i) each Eurocurrency Rate Advance will
automatically, on the last day of the then existing Interest Period therefor,
(A) if such Eurocurrency Rate Advances are denominated in Dollars, be Converted
into Base Rate Advances and (B) if such Eurocurrency Rate Advances are
denominated in any Committed Currency, be redenominated into an Equivalent
amount of Dollars and be Converted into Base Rate Advances and (ii) the
obligation of the Lenders to make, or to Convert Advances into, Eurocurrency
Rate Advances shall be suspended.
SECTION 2.09. Optional Conversion of Advances. The Borrower may on
-------------------------------
any Business Day, upon notice given to the Administrative Agent not later than
(i) 11:00 A.M. (New York City time) on the same Business Day as the date of the
proposed Conversion in the case of a Conversion of Eurocurrency Rate Advances
into Base Rate Advances, and (ii) 1:00 P.M. (New York City time) on the third
Business Day prior to the date of the proposed Conversion in the case of a
Conversion of Base Rate
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Advances into Eurocurrency Rate Advances or Eurocurrency Rate Advances of one
Interest Period into Eurocurrency Rate Advances of another Interest Period, as
the case may be, and subject to the provisions of Sections 2.08, 2.09 and 2.12,
Convert all Advances denominated in Dollars of one Type comprising the same
Borrowing into Advances denominated in Dollars of the other Type; provided,
however, that any Conversion of any Eurocurrency Rate Advances into Base Rate
Advances or into Eurocurrency Rate Advances of another Interest Period shall be
made on, and only on, the last day of an Interest Period for such Eurocurrency
Rate Advances. Promptly upon receipt from the Borrower of a notice of a proposed
Conversion hereunder, the Administrative Agent shall give notice of such
proposed Conversion to each Lender. Each such notice of a Conversion shall,
within the restrictions set forth above, specify (x) the date of such Conversion
(which shall be a Business Day), (y) the Advances to be Converted, and (z) if
such Conversion is into Eurocurrency Rate Advances, the duration of the initial
Interest Period for each such Advance. The Borrower may Convert all Eurocurrency
Rate Advances of any one Lender into Base Rate Advances of such Lender in
accordance with the provisions of Section 2.12 by complying with the procedures
set forth therein and in this Section 2.09 as though each reference in this
Section 2.09 to Advances denominated in Dollars of any Type was to such Advances
of such Lender. Each such notice of Conversion shall, subject to the provisions
of Sections 2.08 and 2.12, be irrevocable and binding on the Borrower.
SECTION 2.10. Prepayments of Advances. (a) Optional. The Borrower
----------------------- --------
may, upon not less than (i) the same Business Day's notice to the Administrative
Agent received not later than 11:00 A.M. (New York City time) in the case of
Borrowings consisting of Base Rate Advances, (ii) three Business Days' notice to
the Administrative Agent received not later than 11:00 A.M. (New York City time)
in the case of Borrowings consisting of Eurocurrency Rate Advances denominated
in any Committed Currency, or (iii) three Business Days' notice to the
Administrative Agent received not later than 1:00 P.M. (New York City time) in
the case of Borrowings consisting of Eurocurrency Rate Advances denominated in
Dollars, stating the proposed date and aggregate principal amount of the
prepayment, and if such notice is given the Borrower shall, prepay the
outstanding principal amounts of the Advances constituting part of the same
Borrowings in whole or ratably in part, together with accrued interest to the
date of such prepayment on the principal amount prepaid; provided, however, that
(x) each partial prepayment shall be in an aggregate principal amount of
$1,000,000 or an integral multiple of $1,000,000 in excess thereof (or the
Equivalent thereof in a Committed Currency determined on the date notice of
prepayment is given), and (y) in the case of any such prepayment of Eurocurrency
Rate Advances, the Borrower shall be obligated to reimburse the Lenders in
respect thereof pursuant to Section 8.04(b).
(b) Mandatory. (i) If, the Administrative Agent notifies the
---------
Borrower in writing that, on any date, the sum of (A) the aggregate principal
amount of all Advances denominated in Dollars then outstanding and (B) the
Equivalent in Dollars (determined on the third Business Day prior to such date)
of the aggregate principal amount of all Advances denominated in Committed
Currencies then outstanding exceeds 102% of the aggregate Commitments of the
Lenders on such date, the Borrower shall, within two Business Days after receipt
of such notice, prepay the outstanding principal amount of any Advances owing by
the Borrower in an aggregate amount sufficient to reduce such sum to an amount
not to exceed 100% of the aggregate Commitments of the Lenders on such date as
set forth in written notice from the Administrative Agent to the Borrower
pursuant to the terms hereof.
(ii) Each prepayment made pursuant to this Section 2.10(b) shall be
made together with any interest accrued to the date of such prepayment on the
principal amounts prepaid and, in the case of any prepayment of a Eurocurrency
Rate Advance on a date other than the last day of an Interest Period, with any
additional amounts which the Borrower shall be obligated to reimburse to the
Lenders in respect thereof pursuant to Section 8.04(b). The Administrative
Agent shall give prompt notice of any prepayment required under this Section
2.10(b) to the Borrower and the Lenders.
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SECTION 2.11. Increased Costs. (a) If after the date hereof, due to
---------------
either (i) the introduction of or any change (other than any change by way of
imposition or increase of reserve requirements included in the Eurocurrency Rate
Reserve Percentage) in or in the interpretation of any law or regulation or (ii)
the compliance with any hereafter promulgated guideline or request from any
central bank or other governmental authority, including, without limitation, any
agency of the European Union or similar monetary or multinational authority
(whether or not having the force of law), there shall be any increase in the
cost (excluding any allocation of corporate overhead) to any Lender (which cost
such Lender reasonably determines in good faith is material) of agreeing to make
or making, funding or maintaining Eurocurrency Rate Advances, then such Lender
shall so notify the Borrower promptly after such Lender knows of such increased
cost and determines that such cost is material and the Borrower shall from time
to time, upon demand by such Lender (with a copy of such demand to the
Administrative Agent), pay to the Administrative Agent for the account of such
Lender additional amounts sufficient to compensate such Lender for such
increased cost. A certificate of such Lender as to the amount of such increased
cost in reasonable detail and stating the basis upon which such amount has been
calculated and certifying that such Lender's method of allocating such costs is
fair and reasonable and that such Lender's demand for payment of such costs
hereunder is not inconsistent with its treatment of other borrowers which, as a
credit matter, are substantially similar to the Borrower and which are subject
to similar provisions, submitted to the Borrower and the Administrative Agent by
such Lender, shall be conclusive and binding for all purposes, absent manifest
error.
(b) If, after the date hereof, either (i) the introduction of or
change in or in the interpretation of any law or regulation or (ii) the
compliance by any Lender with any hereafter promulgated guideline or request
from any central bank or other governmental authority, including, without
limitation, any agency of the European Union or similar monetary or
multinational authority (whether or not having the force of law), affects or
would affect the amount of capital required or expected to be maintained by such
Lender or any corporation controlling such Lender and the amount of such capital
is materially increased by or based upon the existence of such Lender's
commitment to lend hereunder and other commitments of this type, then such
Lender shall so notify the Borrower promptly after such Lender makes such
determination and, upon demand by such Lender (with a copy of such demand to the
Administrative Agent), the Borrower shall pay to such Lender within five days
from the date of such demand, from time to time as specified by such Lender,
additional amounts sufficient to compensate such Lender or such corporation in
the light of such circumstances, to the extent that such Lender reasonably
determines such increase in capital to be allocable to the existence of such
Lender's commitment to lend hereunder. A certificate of such Lender as to such
amount in reasonable detail and stating the basis upon which such amount has
been calculated and certifying that such Lender's method of allocating such
increase of capital is fair and reasonable and that such Lender's demand for
payment of such increase of capital hereunder is not inconsistent with its
treatment of other borrowers which, as a credit matter, are substantially
similar to the Borrower and which are subject to similar provisions, submitted
to the Borrower and the Administrative Agent by such Lender, shall be conclusive
and binding for all purposes, absent manifest error.
(c) The Borrower shall not be obligated to pay under this Section 2.11
any amounts which relate to costs or increases of capital incurred prior to the
12 months immediately preceding the date of demand for payment of such amounts,
unless the applicable law, regulation, guideline or request resulting in such
costs or increases of capital is imposed retroactively. In the case of any law,
regulation, guideline or request which is imposed retroactively, the Lender
making demand for payment of any amount under this Section 2.11 shall notify the
Borrower not later than 12 months from the date that such Lender should
reasonably have known of such law, regulation, guideline or request and the
Borrower's obligation to compensate such Lender for such amount is contingent
upon such Lender's so notifying the Borrower; provided, however, that any
failure by such Lender to provide such notice shall not affect the Borrower's
obligations under this Section 2.11 with respect to amounts resulting from costs
or increases
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of capital incurred after the date which occurs 12 months immediately preceding
the date on which such Lender notified the Borrower of such law, regulation,
guideline or request.
(d) If any Lender shall subsequently recoup any costs (other than from
the Borrower) for which such Lender has theretofore been compensated by the
Borrower under this Section 2.11, such Lender shall remit to the Borrower an
amount equal to the amount of such recoupment. Amounts required to be paid by
the Borrower pursuant to this Section 2.11 shall be paid in addition to, and
without duplication of, any amounts required to be paid pursuant to Section
2.14.
SECTION 2.12. Illegality. Notwithstanding any other provision of this
----------
Agreement, if any Lender shall notify the Administrative Agent that the
introduction of or any change in or in the interpretation of any law or
regulation after the date hereof makes it unlawful, or any central bank or other
governmental authority asserts that it is unlawful, for any Lender or its
Eurocurrency Lending Office to perform its obligations hereunder to make
Eurocurrency Rate Advances in Dollars or any Committed Currency or to fund or
maintain Eurocurrency Rate Advances in Dollars or any Committed Currency, (a)
the obligation of such Lender to make, or to Convert Base Rate Advances into,
Eurocurrency Rate Advances shall be suspended until such Lender shall notify the
Administrative Agent, and the Administrative Agent shall notify the Borrower and
the other Lenders (which notice shall be given promptly after the Administrative
Agent knows that the circumstances causing such suspension no longer exist) that
the circumstances causing such suspension no longer exist, and (b) the Borrower
shall forthwith prepay in full all Eurocurrency Rate Advances of such Lender
then outstanding, together with interest accrued thereon, unless the Borrower,
within five Business Days of notice from the Administrative Agent or, if
permitted by law, on and as of the last day of the then existing Interest Period
for such Eurocurrency Rate Advances, (i) if such Eurocurrency Rate Advance is
denominated in Dollars, Converts it into a Base Rate Advance or an Advance that
bears interest at the rate set forth in Section 2.06(a)(i), and (ii) if such
Eurocurrency Rate Advance is denominated in any Committed Currency,
redenominates it into an Equivalent amount of Dollars and Converts it into a
Base Rate Advance or an Advance that bears interest at the rate set forth in
Section 2.06(a)(i).
SECTION 2.13. Payments and Computations. (a) The Borrower shall
-------------------------
make each payment hereunder (and under the Notes, if any), except with respect
to principal of, interest on, and other amounts relating to, Advances
denominated in a Committed Currency, not later than 11:00 A.M. (New York City
time) on the day when due, in Dollars to the Administrative Agent at the
Administrative Agent's (or Sub-Agent's) Account in same day funds. The Borrower
shall make each payment hereunder with respect to principal of, interest on, and
other amounts relating to, Advances denominated in a Committed Currency, not
later than 11:00 A.M. (at the Payment Office for such Committed Currency) on the
day when due, in such Committed Currency to the Administrative Agent, by deposit
of such funds to the Administrative Agent's (or Sub-Agent's) Account in same day
funds. The Administrative Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal or interest or fees
ratably (other than amounts payable pursuant to Sections 2.07, 2.11, 2.14, 8.04
and 8.08) to the Lenders for the account of their respective Applicable Lending
Offices, and like funds relating to the payment of any other amount payable to
any Lender to such Lender for the account of its Applicable Lending Office, in
each case to be applied in accordance with the terms of this Agreement. Upon
any Assuming Lender becoming a Lender hereunder as a result of a Commitment
Increase pursuant to Section 2.19 or an extension of the Termination Date
pursuant to Section 2.20, and upon the Administrative Agent's receipt of such
Lender's Assumption Agreement and recording of the information contained therein
in the Register, from and after the applicable Increase Date or Extension Date,
as the case may be, the Administrative Agent shall make all payments hereunder
and under any Notes issued in connection therewith in respect of the interest
assumed thereby to the Assuming Lender. Upon its acceptance of an Assignment
and Acceptance and recording of the information contained therein in the
Register pursuant to Section 8.07(d), from and after the effective date
specified in such Assignment and Acceptance, the
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Administrative Agent shall make all payments hereunder and under the Notes, if
any, issued in connection therewith in respect of the interest assigned thereby
to the Lender assignee thereunder, and the parties to such Assignment and
Acceptance shall make all appropriate adjustments in such payments for periods
prior to such effective date directly between themselves.
(b) All computations of interest based on clause (a) or (b) of the
definition of "Base Rate" shall be made by the Administrative Agent on the basis
of a year of 365 or 366 days, as the case may be, and all computations of
interest based on the Eurocurrency Rate or the Federal Funds Rate and of fees
shall be made by the Administrative Agent, and all computations of additional
interest pursuant to Section 2.07 shall be made by a Lender, on the basis of a
year of 360 days (or, in each case of Advances denominated in Committed
Currencies where market practice differs, in accordance with such market
practice after notification of the Borrower), in each case for the actual number
of days (including the first day but excluding the last day) occurring in the
period for which such interest or fees are payable. Each determination by the
Administrative Agent (or, in the case of Section 2.07, by a Lender) of an
interest rate hereunder shall be conclusive and binding for all purposes, absent
manifest error.
(c) Whenever any payment hereunder or under the Notes, if any, 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 fees, as the
case may be; provided, however, that if such extension would cause payment of
interest on or principal of Eurocurrency Rate Advances to be made in the next
following calendar month, such payment shall be made on the immediately
preceding Business Day.
(d) Unless the Administrative Agent shall have received notice from
the Borrower prior to the date on which any payment is due to the Lenders
hereunder that the Borrower will not make such payment in full, the
Administrative Agent may assume that the Borrower has made such payment in full
to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each Lender on such
due date an amount equal to the amount then due such Lender. If and to the
extent that the Borrower shall not have so made such payment in full to the
Administrative Agent, each Lender shall repay to the Administrative Agent
forthwith on demand such amount distributed to such Lender together with
interest thereon, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the Administrative
Agent, at (i) the Federal Funds Rate in the case of Advances denominated in
Dollars or (ii) the cost of funds incurred by the Administrative Agent in
respect of such amount in the case of Advances denominated in Committed
Currencies.
SECTION 2.14. Taxes. (a) Any and all payments by the Borrower
-----
hereunder or under the Notes, if any, shall be made, in accordance with Section
2.13, 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 Lender and the
Administrative Agent, taxes imposed on its income, and franchise taxes imposed
on it, by the jurisdiction under the laws of which such Lender or the
Administrative Agent (as the case may be) is organized or any political
subdivision thereof and, in the case of each Lender, taxes imposed on its
income, and franchise taxes imposed on it, by the jurisdiction of such Lender's
Applicable Lending Office or any political subdivision thereof or by any other
jurisdiction in which such Lender or the Administrative Agent is doing business
that is unrelated to this Agreement (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 hereunder to any Lender or the
Administrative Agent, (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 2.14) such Lender or the
Administrative Agent (as the case may be) receives an amount equal to the sum it
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<PAGE>
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.
(b) In addition, the Borrower agrees to pay any present or future
stamp or documentary taxes or any other excise or property taxes, charges or
similar levies which arise from any payment made hereunder or under the Notes,
if any, or from the execution, delivery or registration of, or otherwise with
respect to, this Agreement or the Notes, if any (hereinafter referred to as
"Other Taxes").
(c) The Borrower will indemnify each Lender and the Administrative
Agent 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 2.14) paid by such Lender or the Administrative Agent
(as the case may be) and any liability (including penalties to the extent not
imposed as a result of such Lender's or the Administrative Agent's (as the case
may be) gross negligence or willful misconduct, 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 Lender or the Administrative Agent (as the case may be)
makes written demand therefor.
(d) Within 30 days after the date of any payment of Taxes, the
Borrower will furnish to the Administrative Agent, at its address referred to in
Section 8.02, the original or a certified copy of a receipt evidencing payment
thereof.
(e) Each Lender that is not created or organized under the laws of the
United States or a political subdivision thereof shall deliver to the Borrower
and the Administrative Agent on or prior to the date of its execution and
delivery of this Agreement, and each such Lender that is not a party hereto on
the date hereof shall deliver to the Borrower and the Administrative Agent on or
prior to the date on which such Lender becomes a Lender pursuant to Section
2.19, 2.20 or 8.07 (as the case may be), a true and accurate certificate
executed in duplicate by a duly authorized officer of such Lender in
substantially the form set out in Exhibit D-1 or D-2 hereto, as applicable, to
the effect that such Lender is eligible under the provisions of an applicable
tax treaty concluded by the United States (in which case the certificate shall
be accompanied by two executed copies of IRS Form 1001 or W-8BEN (or any
successor or substitute form or forms) of the Internal Revenue Service of the
United States (the "IRS"), or under Section 1441(c) or 1442 of the Internal
Revenue Code (in which case the certificate shall be accompanied by two copies
of IRS Form 4224 or W-8ECI (or any successor or substitute form or forms) of the
IRS, to receive, as of the date hereof or as of the date such party becomes a
Lender hereto pursuant to Section 2.19, 2.20 or 8.07 (as the case may be), as
appropriate, payments hereunder without deduction or withholding of United
States federal income tax. In addition, (1) each such Lender that provided a
Form 1001 or Form 4224 in accordance with the preceding sentence shall deliver
to the Borrower and the Administrative Agent a Form W-8BEN or Form W-8ECI,
respectively, on or before December 31, 2000 to replace such Form 1001 or Form
4224 and (2) each such Lender that becomes a Lender hereunder after December 31,
2000 shall deliver to the Borrower and the Administrative Agent a Form W-8BEN or
Form W-8ECI, as applicable. Each such Lender further agrees to deliver to the
Borrower and the Administrative Agent from time to time, as reasonably requested
by the Borrower or the Administrative Agent, and in any case before or promptly
upon the occurrence of any events requiring a change in the most recent
certificate previously delivered pursuant to this Section 2.14(e), a true and
accurate certificate executed in duplicate by a duly authorized officer of such
Lender in substantially the form set out in Exhibit D-1 or D-2 hereto, as
applicable. Further, each Lender that delivers a certificate in the form set
out in Exhibit D-1 hereto agrees, to the extent permitted by law, to deliver to
the Borrower and the Administrative Agent within 15 days prior to every third
anniversary of the date of delivery of the initial IRS Form 1001 or W-8BEN by
such Lender (or more often if required by law) on which this Agreement is still
in effect, two accurate and complete original signed copies of IRS Form W-8BEN
(or any
20
<PAGE>
successor or substitute form or forms required under the Internal Revenue Code
or the applicable regulations promulgated thereunder) and a certificate in the
form set out in such Exhibit D-1, and each Lender that delivers a certificate in
the form set out in Exhibit D-2 hereto agrees to deliver to the Borrower and the
Administrative Agent, to the extent permitted by law, within 15 days prior to
every third anniversary of the date of delivery of the initial IRS Form 4224 or
W-8ECI by such Lender (or more often if required by law) on which this Agreement
is still in effect, two accurate and complete original signed copies of IRS Form
W-ECI (or any successor or substitute form or forms required under the Internal
Revenue Code or the applicable regulations promulgated thereunder) and a
certificate in the form of such Exhibit D-2. Each such certificate shall certify
as to one of the following:
(i) that such Lender is eligible to receive payments hereunder
without deduction or withholding of United States federal income tax;
(ii) that such Lender is not eligible to receive payments hereunder
without deduction or withholding of United States federal income tax as
specified therein but does not require additional payments therefor
pursuant to Section 2.14(a) or (c) because it is eligible and able to
recover the full amount of any such deduction or withholding from a source
other than the Borrower; or
(iii) that such Lender is not eligible to receive payments hereunder
without deduction or withholding of United States federal income tax as
specified therein and that it is not eligible and able to recover the full
amount of the same from a source other than the Borrower.
If any form or document referred to in this subsection (e) requires the
disclosure of information, other than information necessary to compute the tax
payable and information required on the date hereof by IRS Form 1001(or W-8BEN)
or 4224 (or W-8ECI), that any Lender reasonably considers to be confidential,
such Lender promptly shall give notice thereof to the Borrower and the
Administrative Agent and shall not be obligated to include in such form or
document such confidential information; provided that such Lender certifies to
the Borrower that the failure to disclose such confidential information does not
increase the obligations of the Borrower under this Section 2.14.
(f) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
this Section 2.14 shall survive the payment in full of principal and interest on
all Advances and the termination of this Agreement until such date as all
applicable statutes of limitations (including any extensions thereof) have
expired with respect to such agreements and obligations of the Borrower
contained in this Section 2.14.
SECTION 2.15. Sharing of Payments, Etc. If any Lender shall obtain
------------------------
any payment (whether voluntary, involuntary, through the exercise of any right
of set-off, or otherwise) on account of the Advances made by it (other than
pursuant to Section 2.07, 2.11, 2.14, 8.04 or 8.08) in excess of its ratable
share of payments on account of the Advances obtained by all the Lenders, such
Lender shall forthwith purchase from the other Lenders such participations in
the Advances made by them as shall be necessary to cause such purchasing Lender
to share the excess payment ratably with each of them, provided, however, that
if all or any portion of such excess payment is thereafter recovered from such
purchasing Lender, such purchase from each Lender shall be rescinded and such
Lender shall repay to the purchasing Lender the purchase price to the extent of
such recovery, together with an amount equal to such Lender's ratable share
(according to the proportion of (i) the amount of such Lender's required
repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. The Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this
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Section 2.15 may, to the fullest extent permitted by law, exercise all its
rights of payment (including the right of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation.
SECTION 2.16. Mandatory Assignment by a Lender; Mitigation. If any
--------------------------------------------
Lender requests from the Borrower either payment of additional interest on
Eurocurrency Rate Advances pursuant to Section 2.07, or reimbursement for
increased costs pursuant to Section 2.11, or payment of or reimbursement for
Taxes pursuant to Section 2.14, or if any Lender notifies the Administrative
Agent that it is unlawful for such Lender or its Eurocurrency Lending Office to
perform its obligations hereunder pursuant to Section 2.12, (i) such Lender
will, upon three Business Days' notice by the Borrower to such Lender and the
Administrative Agent, to the extent not inconsistent with such Lender's internal
policies and applicable legal and regulatory restrictions, use reasonable
efforts to make, fund or maintain its Eurocurrency Rate Advances through another
Eurocurrency Lending Office of such Lender if (A) as a result thereof the
additional amounts required to be paid pursuant to Section 2.07, 2.11 or 2.14,
as applicable, in respect of such Eurocurrency Rate Advances would be materially
reduced or the provisions of Section 2.12 would not apply to such Lender, as
applicable, and (B) as determined by such Lender in good faith but in its sole
discretion, the making or maintaining of such Eurocurrency Rate Advances through
such other Eurocurrency Lending Office would not otherwise materially and
adversely affect such Eurocurrency Rate Advances or such Lender and (ii) unless
such Lender has theretofore taken steps to remove or cure, and has removed or
cured, the conditions creating such obligation to pay such additional amounts or
the circumstances described in Section 2.12, the Borrower may designate an
Eligible Assignee to purchase for cash (pursuant to an Assignment and
Acceptance) all, but not less than all, of the Advances then owing to such
Lender and all, but not less than all, of such Lender's rights and obligations
hereunder, without recourse to or warranty by, or expense to, such Lender, for a
purchase price equal to the outstanding principal amount of each such Advance
then owing to such Lender plus any accrued but unpaid interest thereon and any
accrued but unpaid fees owing thereto and, in addition, (A) all additional cost
reimbursements, expense reimbursements and indemnities, if any, owing in respect
of such Lender's Commitment hereunder, and all other accrued and unpaid amounts
owing to such Lender hereunder, at such time shall be paid to such Lender and
(B) if such Eligible Assignee is not otherwise a Lender at such time, the
applicable processing and recordation fee under Section 8.07(a) for such
assignment shall have been paid.
SECTION 2.17. Evidence of Debt. (a) Each Lender shall maintain in
----------------
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Advance owing to
such Lender from time to time, including the amounts of principal and interest
payable and paid to such Lender from time to time hereunder. The Borrower
agrees that upon notice by any Lender to the Borrower (with a copy of such
notice to the Administrative Agent) to the effect that a promissory note or
other evidence of indebtedness is required or appropriate in order for such
Lender to evidence (whether for purposes of pledge, enforcement or otherwise)
the Advances owing to, or to be made by, such Lender, the Borrower shall
promptly execute and deliver to such Lender a promissory note or other evidence
of indebtedness, in form and substance reasonably satisfactory to the Borrower
and such Lender (each a "Note"), payable to the order of such Lender in a
principal amount equal to the Commitment of such Lender; provided, however, that
the execution and delivery of such promissory note or other evidence of
indebtedness shall not be a condition precedent to the making of any Advance
under this Agreement.
(b) The Register maintained by the Administrative Agent pursuant to
Section 8.07(c) shall include a control account, and a subsidiary account for
each Lender, in which accounts (taken together) shall be recorded (i) the date
and amount of each Borrowing made hereunder, the Type of Advances and currencies
comprising such Borrowing and, if appropriate, the Interest Period applicable
thereto, (ii) the terms of each Assumption Agreement and each Assignment and
Acceptance delivered to
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and accepted by it, (iii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder,
and (iv) the amount of any sum received by the Administrative Agent from the
Borrower hereunder and each Lender's share thereof.
(c) Entries made in good faith by the Administrative Agent in the
Register pursuant to subsection (b) above, and by each Lender in its account or
accounts pursuant to subsection (a) above, shall be prima facie evidence of the
amount of principal and interest due and payable or to become due and payable
from the Borrower to, in the case of the Register, each Lender and, in the case
of such account or accounts, such Lender, under this Agreement, absent manifest
error; provided, however, that the failure of the Administrative Agent or such
Lender to make an entry, or any finding that an entry is incorrect, in the
Register or such account or accounts shall not limit or otherwise affect the
obligations of the Borrower under this Agreement.
SECTION 2.18. Use of Proceeds. The proceeds of the Advances shall be
---------------
available (and the Borrower agrees that it shall use such proceeds) to support
the obligations of the Borrower in respect of commercial paper issued by the
Borrower and/or for other general corporate purposes of the Borrower and its
subsidiaries.
SECTION 2.19. Increase in the Aggregate Commitments. (a) The
-------------------------------------
Borrower may, at any time but in any event not more than once in any calendar
year prior to the Termination Date, by notice to the Administrative Agent,
request that the aggregate amount of the Commitments be increased by an amount
of $100,000,000 or an integral multiple of $5,000,000 in excess thereof (each a
"Commitment Increase") to be effective as of a date that is at least 90 days
prior to the scheduled Termination Date then in effect (the "Increase Date") as
specified in the related notice to the Administrative Agent; provided, however,
that (i) in no event shall the aggregate amount of the Commitments at any time
exceed $5,000,000,000, (ii) on the date of any request by the Borrower for a
Commitment Increase and at all times thereafter to and including the related
Increase Date, the Public Debt Rating shall be at least A- by S&P and at least
A3 by Moody's and (iii) no Event of Default, or event that with the giving of
notice or passage of time or both would constitute an Event of Default, shall
have occurred and be continuing as of the date of such request or as of the
applicable Increase Date, or shall occur as a result thereof.
(b) The Administrative Agent shall promptly notify the Lenders of a
request by the Borrower for a Commitment Increase, which notice shall include
(i) the proposed amount of such requested Commitment Increase, (ii) the proposed
Increase Date and (iii) the date by which Lenders wishing to participate in the
Commitment Increase must commit to an increase in the amount of their respective
Commitments (the "Commitment Date"). Each Lender that is willing to participate
in such requested Commitment Increase (each an "Increasing Lender") shall give
written notice to the Administrative Agent on or prior to the Commitment Date of
the amount by which it is willing to increase its Commitment. If the Lenders
notify the Administrative Agent that they are willing to increase the amount of
their respective Commitments by an aggregate amount that exceeds the amount of
the requested Commitment Increase, the requested Commitment Increase shall be
allocated among the Lenders willing to participate therein in such amounts as
are agreed between the Borrower and the Administrative Agent.
(c) Promptly following each Commitment Date, the Administrative Agent
shall notify the Borrower as to the amount, if any, by which the Lenders are
willing to participate in the requested Commitment Increase. If the aggregate
amount by which the Lenders are willing to participate in any requested
Commitment Increase on any such Commitment Date is less than the requested
Commitment Increase, then the Borrower may extend offers to one or more Eligible
Assignees to participate in any portion of the requested Commitment Increase
that has not been committed to by the
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Lenders as of the applicable Commitment Date; provided, however, that the
Commitment of each such Eligible Assignee shall be in an amount of $25,000,000
or an integral multiple of $1,000,000 in excess thereof.
(d) On each Increase Date, each Eligible Assignee that accepts an
offer to participate in a requested Commitment Increase in accordance with
Section 2.19(c) (each such Eligible Assignee and each Eligible Assignee that
agrees to an extension of the Termination Date in accordance with Section
2.20(c), an "Assuming Lender") shall become a Lender party to this Agreement as
of such Increase Date and the Commitment of each Increasing Lender for such
requested Commitment Increase shall be so increased by such amount (or by the
amount allocated to such Lender pursuant to the last sentence of Section
2.19(b)) as of such Increase Date; provided, however, that the Administrative
Agent shall have received on or before such Increase Date the following, each
dated such date:
(i) (A) certified copies of resolutions of the Board of Directors of
the Borrower or the Executive Committee of such Board approving the
Commitment Increase and the corresponding modifications to this Agreement
and (B) an opinion of counsel for the Borrower (which may be in-house
counsel), in substantially the form of Exhibit C hereto;
(ii) an assumption agreement from each Assuming Lender, if any, in
form and substance satisfactory to the Borrower and the Administrative
Agent (each an "Assumption Agreement"), duly executed by such Eligible
Assignee, the Administrative Agent and the Borrower; and
(iii) confirmation from each Increasing Lender of the increase in
the amount of its Commitment in a writing satisfactory to the Borrower and
the Administrative Agent.
On each Increase Date, upon fulfillment of the conditions set forth in the
immediately preceding sentence of this Section 2.19(d), the Administrative Agent
shall notify the Lenders (including, without limitation, each Assuming Lender)
and the Borrower, on or before 1:00 P.M. (New York City time), by telecopier or
telex, of the occurrence of the Commitment Increase to be effected on such
Increase Date and shall record in the Register the relevant information with
respect to each Increasing Lender and each Assuming Lender on such date.
SECTION 2.20. Extension of Termination Date. (a) At least 45 days
-----------------------------
but not more than 75 days prior to the next Anniversary Date, the Borrower, by
written notice to the Administrative Agent, may request an extension of the
Termination Date in effect at such time by one calendar year from its then
scheduled expiration; provided, however, that, if the Borrower does not request
an extension of the Termination Date in a timely manner prior to any Anniversary
Date it may, but shall not be obligated to, request that the Termination Date be
extended for two consecutive calendar years from its then scheduled expiration
by making a request therefor in a timely manner prior to the next succeeding
Anniversary Date. The Administrative Agent shall promptly notify each Lender of
such request, and each Lender shall in turn, in its sole discretion, not later
than 30 days prior to such next Anniversary Date, notify the Borrower and the
Administrative Agent in writing as to whether such Lender will consent to such
extension. If any Lender shall fail to notify the Administrative Agent and the
Borrower in writing of its consent to any such request for extension of the
Termination Date at least 30 days prior to the next Anniversary Date, such
Lender shall be deemed to be a Declining Lender with respect to such request.
The Administrative Agent shall notify the Borrower not later than 25 days prior
to such next Anniversary Date of the decision of the Lenders regarding the
Borrower's request for an extension of the Termination Date.
(b) If all of the Lenders consent in writing to any such request in
accordance with subsection (a) of this Section 2.20, the Termination Date in
effect at such time shall, effective as at such
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next Anniversary Date (the "Extension Date"), be extended for one calendar year
or two calendar years, as properly requested; provided that on each Extension
Date, no Event of Default, or event that with the giving of notice or passage of
time or both would constitute an Event of Default, shall have occurred and be
continuing, or shall occur as a consequence thereof. If less than all of the
Lenders consent in writing to any such request in accordance with subsection (a)
of this Section 2.20, the Termination Date in effect at such time shall,
effective as at the applicable Extension Date, be extended as to those Lenders
that so consented (each an "Extending Lender") but shall not be extended as to
any other Lender (each a "Declining Lender"). To the extent that the Termination
Date is not extended as to any Lender pursuant to this Section 2.20 and the
Commitment of such Lender is not assumed in accordance with subsection (c) of
this Section 2.20 on or prior to the applicable Extension Date, the Commitment
of such Declining Lender shall automatically terminate in whole on such
unextended Termination Date without any further notice or other action by the
Borrower, such Lender or any other Person; provided that such Declining Lender's
rights under Sections 2.11, 2.14, 8.04 and 8.08, and its obligations under
Section 7.05, shall survive the Termination Date for such Lender as to matters
occurring prior to such date. It is understood and agreed that no Lender shall
have any obligation whatsoever to agree to any request made by the Borrower for
any requested extension of the Termination Date.
(c) If less than all of the Lenders consent to any such request
pursuant to subsection (a) of this Section 2.20, the Borrower may arrange for
one or more Extending Lenders or other Eligible Assignees as Assuming Lenders to
assume, effective as of the Extension Date, any Declining Lender's Commitment
and all of the obligations of such Declining Lender under this Agreement
thereafter arising, without recourse to or warranty by, or expense to, such
Declining Lender; provided, however, that the amount of the Commitment of any
such Assuming Lender as a result of such substitution shall in no event be less
than $25,000,000 unless the amount of the Commitment of such Declining Lender is
less than $25,000,000, in which case such Assuming Lender shall assume all of
such lesser amount; and provided further that:
(i) any such Extending Lender or Assuming Lender shall have paid to
such Declining Lender (A) the aggregate principal amount of, and any
interest accrued and unpaid to the effective date of the assignment on, the
outstanding Advances, if any, of such Declining Lender plus (B) any accrued
but unpaid fees owing to such Declining Lender as of the effective date of
such assignment;
(ii) all additional costs reimbursements, expense reimbursements and
indemnities payable to such Declining Lender, and all other accrued and
unpaid amounts owing to such Declining Lender hereunder, as of the
effective date of such assignment shall have been paid to such Declining
Lender; and
(iii) with respect to any such Assuming Lender, the applicable
processing and recordation fee required under Section 8.07(a) for such
assignment shall have been paid;
provided further that such Declining Lender's rights under Sections 2.11, 2.14,
8.04 and 8.08, and its obligations under Section 7.05, shall survive such
substitution as to matters occurring prior to the date of substitution. At
least three Business Days prior to any Extension Date, (A) each such Assuming
Lender, if any, shall have delivered to the Borrower and the Administrative
Agent an Assumption Agreement, duly executed by such Assuming Lender, such
Declining Lender, the Borrower and the Administrative Agent, (B) any such
Extending Lender shall have delivered confirmation in writing satisfactory to
the Borrower and the Administrative Agent as to the increase in the amount of
its Commitment and (C) each Declining Lender being replaced pursuant to this
Section 2.20 shall have delivered to the Administrative Agent any Note or Notes
held by such Declining Lender. Upon the payment or prepayment of all amounts
referred to in clauses (i), (ii) and (iii) of the immediately preceding
sentence, each such
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Extending Lender or Assuming Lender, as of the Extension Date, will be
substituted for such Declining Lender under this Agreement and shall be a Lender
for all purposes of this Agreement, without any further acknowledgment by or the
consent of the other Lenders, and the obligations of each such Declining Lender
hereunder shall, by the provisions hereof, be released and discharged.
(d) If all of the Extending and Assuming Lenders (after giving effect
to any assignments and assumptions pursuant to subsection (c) of this Section
2.20) consent in writing to a requested extension (whether by written consent
pursuant to subsection (a) of this Section 2.20, by execution and delivery of an
Assumption Agreement or otherwise) not later than one Business Day prior to such
Extension Date, the Administrative Agent shall so notify the Borrower, and, so
long as no Event of Default, or event that with the giving of notice or passage
of time or both would constitute an Event of Default, shall have occurred and be
continuing as of such Extension Date, or shall occur as a consequence thereof,
the Termination Date then in effect shall be extended for the additional one-
year period or two-year period, as the case may be, as described in subsection
(a) of this Section 2.20, and all references in this Agreement, and in the
Notes, if any, to the "Termination Date" shall, with respect to each Extending
Lender and each Assuming Lender for such Extension Date, refer to the
Termination Date as so extended. Promptly following each Extension Date, the
Administrative Agent shall notify the Lenders (including, without limitation,
each Assuming Lender) of the extension of the scheduled Termination Date in
effect immediately prior thereto and shall thereupon record in the Register the
relevant information with respect to each such Extending Lender and each such
Assuming Lender.
ARTICLE III
CONDITIONS OF EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01.
-----------------------------------------------------
Section 2.01 of this Agreement shall become effective on and as of the first
date (the "Effective Date") on which all of the following conditions precedent
have been satisfied or waived in accordance with Section 8.01:
(a) the Administrative Agent shall have received on or before the
Effective Date the following, each dated the Effective Date, in form and
substance satisfactory to the Administrative Agent: (i) certified copies
of the resolutions of the Board of Directors of the Borrower or the
Executive Committee of such Board authorizing the execution and delivery of
this Agreement, and approving all documents evidencing other necessary
corporate action and governmental approvals, if any, with respect to this
Agreement; (ii) a certificate of the Secretary or an Assistant Secretary of
the Borrower certifying the name and true signature of the officer of the
Borrower executing this Agreement on its behalf; (iii) an opinion of David
K. Thompson, Esq., Senior Vice President-Assistant General Counsel of the
Borrower, in substantially the form of Exhibit C hereto; and (iv) an
opinion of Shearman & Sterling, counsel for the Administrative Agent.
(b) all consents and approvals of any governmental or regulatory
authority and any other third party necessary in connection with this
Agreement or the consummation of the transactions contemplated hereby shall
have been obtained and shall remain in effect.
(c) there shall have occurred no material adverse change in the
business, financial condition or operations of the Borrower and its
subsidiaries, taken as a whole, since September 30, 1999, except as
disclosed in reports filed by the Borrower and its subsidiaries, if any,
during the period from September 30, 1999 to the date of this Agreement
pursuant to Section 13 of the Securities Exchange Act of 1934, as amended,
copies of which have been furnished to the Initial Lenders prior to the
date of this Agreement.
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(d) the Borrower shall have paid or prepaid all amounts owing under
the Existing Credit Agreement, and all commitments of the lenders
thereunder shall have been terminated.
(e) the Borrower shall have notified each Lender and the
Administrative Agent in writing as to the proposed Effective Date at least
three Business Days prior to the occurrence thereof.
(f) all of the representations and warranties contained in Section
4.01 shall be correct in all material respects on and as of the Effective
Date, before and after giving effect to such date, as though made on and as
of the Effective Date (except to the extent that such representations and
warranties relate to an earlier date, in which case such representations
and warranties shall have been correct in all material respects on and as
of such earlier date).
(g) no event shall have occurred and be continuing, or shall result
from the occurrence of the Effective Date, that constitutes an Event of
Default or would constitute an Event of Default but for the requirement
that notice be given or time elapse or both.
SECTION 3.02. Conditions Precedent to Each Borrowing. The obligation
--------------------------------------
of each Lender to make an Advance on the occasion of each Borrowing (including
the initial Borrowing) shall be subject to the further conditions precedent that
the Effective Date shall have occurred and on the date of such Borrowing the
following statements shall be true (and each of the giving of the applicable
Notice of Borrowing and the acceptance by the Borrower of the proceeds of such
Borrowing shall constitute a representation and warranty by the Borrower that on
the date of such Borrowing such statements are true):
(a) the representations and warranties contained in Section 4.01 are
true and correct in all material respects on and as of the date of such
Borrowing, before and after giving effect to such Borrowing and to the
application of the proceeds therefrom, as though made on and as of such
date (except to the extent that such representations and warranties relate
to an earlier date, in which case such representations and warranties shall
have been correct in all material respects on and as of such earlier date);
and
(b) no event has occurred and is continuing, or would result from such
Borrowing or from the application of the proceeds therefrom, which
constitutes an Event of Default or would constitute an Event of Default but
for the requirement that notice be given or time elapse or both.
SECTION 3.03. Determinations Under Section 3.01. For purposes of
---------------------------------
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Administrative Agent responsible for the transactions contemplated by
this Agreement shall have received notice from such Lender prior to the date
that the Borrower, by notice to the Lenders, designates as the proposed
Effective Date, specifying its objection thereto. The Administrative Agent
shall promptly notify the Lenders of the occurrence of the Effective Date.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Borrower. The
----------------------------------------------
Borrower represents and warrants as of the Effective Date and from time to time
thereafter as required under this Agreement as follows:
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(a) The Borrower is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware. The Borrower and
each of the Significant Subsidiaries are duly qualified and in good
standing as foreign corporations authorized to do business in each
jurisdiction (other than the respective jurisdictions of their
incorporation) in which the nature of their respective activities or the
character of the properties they own or lease make such qualification
necessary and in which the failure so to qualify would have a material
adverse effect on the financial condition or operations of the Borrower and
its subsidiaries, taken as a whole.
(b) The execution, delivery and performance by the Borrower of this
Agreement and each of the Notes, if any, delivered hereunder are within the
Borrower's corporate powers, have been duly authorized by all necessary
corporate action, and do not contravene (i) the Borrower's charter or by-
laws or (ii) any law, rule, regulation, order, writ, judgment, injunction,
decree, determination or award or any material contractual restriction
binding on or affecting the Borrower, Disney or ABC; no authorization or
approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required for the due
execution, delivery and performance by the Borrower of this Agreement or
the Notes, if any; and this Agreement is and each of the Notes, when
delivered hereunder, will be the legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with their
respective terms, subject to applicable bankruptcy, reorganization,
insolvency, moratorium or similar laws affecting creditors' rights
generally and general principles of equity.
(c) The Borrower's most recent annual report on Form 10-K containing
the consolidated balance sheet of the Borrower and its subsidiaries, and
the related consolidated statements of income and of cash flows of the
Borrower and its subsidiaries, copies of which have been furnished to each
Lender pursuant to Section 5.01(e)(ii), fairly present the consolidated
financial condition of the Borrower and its subsidiaries as at the date of
such balance sheet and the consolidated results of operations of the
Borrower and its subsidiaries for the fiscal year ended on such date, all
in accordance with generally accepted accounting principles consistently
applied.
(d) There is no pending or, to the Borrower's knowledge, threatened
claim, action or proceeding affecting the Borrower or any of its
subsidiaries which could reasonably be expected to adversely affect the
financial condition or operations of the Borrower and its subsidiaries,
taken as a whole, or which could reasonably be expected to affect the
legality, validity or enforceability of this Agreement; and to the
Borrower's knowledge, the Borrower and each of its subsidiaries have
complied, and are in compliance, with all applicable laws, rules,
regulations, permits, orders, consent decrees and judgments, except for any
such matters which have not had, and would not reasonably be expected to
have, a material adverse effect on the financial condition or operations of
the Borrower and its subsidiaries, taken as a whole.
(e) The Borrower and the ERISA Affiliates have not incurred and are
not reasonably expected to incur any material liability in connection with
their Single Employer Plans or Multiple Employer Plans, other than ordinary
liabilities for benefits; neither the Borrower nor any ERISA Affiliate has
incurred or is reasonably expected to incur any material withdrawal
liability (as defined in Part I of Subtitle E of Title IV of ERISA) to any
Multiemployer Plan; and no Multiemployer Plan of the Borrower or any ERISA
Affiliate is reasonably expected to be in reorganization or to be
terminated, within the meaning of Title IV of ERISA.
SECTION 4.02. Additional Representations and Warranties of the
Borrower as of Each Increase Date and Each Extension Date. The Borrower
represents and warrants on each Increase Date
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and each Extension Date (and at no other time) that, as of each such date, the
following statements shall be true:
(a) there has been no material adverse change in the business,
financial condition or operations of the Borrower and its subsidiaries,
taken as a whole, since the date of the audited financial statements of the
Borrower and its subsidiaries most recently delivered to the Lenders
pursuant to Section 5.01(e)(ii) prior to the applicable Increase Date or
Extension Date, as the case may be (except as disclosed in periodic or
other reports filed by the Borrower and its subsidiaries pursuant to
Section 13 of the Securities Exchange Act of 1934, as amended, during the
period from the date of the most recently delivered audited financial
statements of the Borrower and its subsidiaries pursuant to Section
5.01(e)(ii) to the date of the request for an increase in the aggregate
Commitments related to such Increase Date or for an extension of the
Termination Date then in effect related to such Extension Date, as the case
may be); and
(b) the representations and warranties contained in Section 4.01 are
correct in all material respects on and as of such date, as though made on
and as of such date (except to the extent that such representations and
warranties relate to an earlier date, in which case such representations
and warranties shall have been correct in all material respects on and as
of such earlier date).
ARTICLE V
COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants. So long as any Advance shall
---------------------
remain unpaid or any Lender shall have any Commitment hereunder, the Borrower
will, unless the Majority Lenders shall otherwise consent in writing:
(a) Compliance with Laws, Etc. Comply, and cause each of its
-------------------------
subsidiaries to comply, in all material respects with all applicable laws,
rules, regulations, permits, orders, consent decrees and judgments binding
on the Borrower and its subsidiaries the failure with which to comply would
have a material adverse effect on the financial condition or operations of
the Borrower and its subsidiaries, taken as a whole.
(b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
---------------------
subsidiaries to pay and discharge, before the same shall become delinquent,
if the failure to so pay and discharge would have a material adverse effect
on the financial condition or operations of the Borrower and its
subsidiaries, taken as a whole, (i) all taxes, assessments and governmental
charges or levies imposed upon it or upon its property, and (ii) all lawful
claims which, if unpaid, will by law become a Lien upon its property;
provided, however, that neither the Borrower nor any of its subsidiaries
shall be required to pay or discharge any such tax, assessment, charge,
levy or claim which is being contested in good faith and by proper
proceedings and as to which appropriate reserves are being maintained in
accordance with GAAP.
(c) Preservation of Corporate Existence, Etc. Subject to Section
----------------------------------------
5.02(a), preserve and maintain, and cause each of Disney and ABC to
preserve and maintain, its corporate existence, rights (charter and
statutory) and franchises; provided, however, that none of the Borrower,
Disney or ABC shall be required to preserve any right or franchise if the
loss thereof would not have a material adverse effect on the business,
financial condition or operations of the Borrower and its subsidiaries,
taken as a whole; and provided further, however, that neither Disney nor
ABC shall be required to preserve its corporate existence if the loss
thereof would not
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have a material adverse effect on the business, financial condition or
operations of the Borrower and its subsidiaries, taken as a whole.
(d) Maintenance of Interest Coverage Ratio. Maintain as of the last
--------------------------------------
day of each fiscal quarter of the Borrower, commencing with the first
fiscal quarter of the Borrower following the Effective Date, a ratio of (i)
Consolidated EBITDA for the Measurement Period ending on such day to (ii)
Consolidated Interest Expense for the Measurement Period ending on such
day, of not less than 3 to 1.
(e) Reporting Requirements. Furnish to the Administrative Agent, on
----------------------
behalf of the Lenders:
(i) as soon as available and in any event within 50 days after
the end of each of the first three quarters of each fiscal year of the
Borrower, a copy of the Borrower's quarterly report to shareholders on
Form 10-Q as filed with the Securities and Exchange Commission (the
"SEC"), in each case containing a consolidated balance sheet of the
Borrower and its subsidiaries as of the end of such quarter and
consolidated statements of income and of cash flows of the Borrower
and its subsidiaries for the period commencing at the end of the
previous fiscal year and ending with the end of such quarter, and a
certificate of any of the Borrower's Chairman of the Board of
Directors, President, Chief Financial Officer, Treasurer, Assistant
Treasurer or Controller (A) stating that no Event of Default, or event
that with the giving of notice or passage of time or both would
constitute an Event of Default, has occurred and is continuing and (B)
containing a schedule which shall set forth the computations used by
the Borrower in determining compliance with the covenant contained in
Section 5.01(d);
(ii) as soon as soon as available and in any event within 100
days after the end of each fiscal year of the Borrower, a copy of the
Borrower's annual report to shareholders on Form 10-K as filed with
the SEC, in each case containing consolidated financial statements of
the Borrower and its subsidiaries for such year and a certificate of
any of the Borrower's Chairman of the Board of Directors, President,
Chief Financial Officer, Treasurer, Assistant Treasurer or Controller
(A) stating that no Event of Default, or event that with the giving of
notice or passage of time or both would constitute an Event of
Default, has occurred and is continuing and (B) containing a schedule
which shall set forth the computations used by the Borrower in
determining compliance with the covenant contained in Section 5.01(d);
(iii) promptly after the Borrower obtains actual knowledge of
the occurrence of each Event of Default, and each event that with the
giving of notice or passage of time or both would constitute an Event
of Default, a statement of any of the Borrower's Chairman of the Board
of Directors, President, Chief Financial Officer, Treasurer, Assistant
Treasurer or Controller setting forth details of such Event of Default
or event continuing on the date of such statement, and the action
which the Borrower has taken and proposes to take with respect
thereto;
(iv) promptly after the commencement thereof, notice of any
actions, suits and proceedings before any court or governmental
department, commission, board, bureau, agency or instrumentality,
domestic or foreign, affecting the Borrower or any of its subsidiaries
of the type described in Section 4.01(d);
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(v) promptly after the Borrower obtains actual knowledge
thereof, written notice of any pending or threatened Environmental
Claim against the Borrower or any of its subsidiaries or any of their
respective properties which could reasonably be expected to materially
and adversely affect the financial condition or operations of the
Borrower and its subsidiaries, taken as a whole;
(vi) promptly after the Borrower obtains actual knowledge of
the occurrence of any ERISA Event which could reasonably be expected
to materially and adversely affect the financial condition or
operations of the Borrower and its subsidiaries, taken as a whole, a
statement of any of the Borrower's Chairman of the Board of Directors,
President, Chief Financial Officer, Treasurer, Assistant Treasurer or
Controller describing such ERISA Event and the action, if any, which
the Borrower has taken and proposes to take with respect thereto;
(vii) promptly after receipt thereof by the Borrower or any
ERISA Affiliate from the sponsor of a Multiemployer Plan, a copy of
each notice received by the Borrower or any ERISA Affiliate concerning
(A) the imposition of withdrawal liability (as defined in Part I of
Subtitle E of Title IV of ERISA) by a Multiemployer Plan, which
withdrawal liability could reasonably be expected to materially and
adversely affect the financial condition or operations of the Borrower
and its subsidiaries, taken as a whole, (B) the reorganization or
termination, within the meaning of Title IV of ERISA, of any
Multiemployer Plan, which reorganization or termination could
reasonably be expected to materially adversely affect the financial
condition or operations of the Borrower and its subsidiaries, taken as
a whole, or (C) the amount of liability incurred, or which may be
incurred, by the Borrower or any ERISA Affiliate in connection with
any event described in subclause (vii)(A) or (vii)(B) above; and
(viii) such other material information reasonably related to
any Lender's credit analysis of the Borrower or any of its
subsidiaries as any Lender through the Administrative Agent may from
time to time reasonably request.
SECTION 5.02. Negative Covenant. So long as any Advance shall remain
-----------------
unpaid or any Lender shall have any Commitment hereunder, the Borrower will not,
without the written consent of the Majority Lenders:
(a) Mergers, Etc. Merge or consolidate with or into, or convey,
------------
transfer, lease or otherwise dispose of (whether in one transaction or in a
series of transactions) all or substantially all of the assets of the
Borrower and its subsidiaries, taken as a whole (whether now owned or
hereafter acquired), to, any Person, or permit any of its subsidiaries to
do so, unless (i) immediately after giving effect to such proposed
transaction, no Event of Default or event which, with the giving of notice
or lapse of time, or both, would constitute an Event of Default would exist
and (ii) in the case of any such merger to which the Borrower is a party,
the Borrower is the surviving corporation or the Person into which the
Borrower shall be merged or formed by any such consolidation shall be a
corporation organized and existing under the laws of the United States or
any State thereof and shall assume the Borrower's obligations hereunder and
under the Notes, if any, in an agreement or instrument reasonably
satisfactory in form and substance to the Majority Lenders.
ARTICLE VI
EVENTS OF DEFAULT
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SECTION 6.01. Events of Default. If any of the following events
-----------------
("Events of Default") shall occur and be continuing:
(a) The Borrower shall fail to pay any principal of any Advance when
the same becomes due and payable; or the Borrower shall fail to pay any
interest on any Advance or any fee or other amount payable under this
Agreement, in each case within three Business Days after such interest, fee
or other amount becomes due and payable; or
(b) Any representation or warranty made by the Borrower herein or by
the Borrower (or any of its officers) delivered in writing and identified
as delivered in connection with this Agreement shall prove to have been
incorrect in any material respect when made; or
(c) The Borrower shall fail to perform or observe any covenant
contained in Section 5.01(d), Section 5.01(e)(iii) or Section 5.02; or
(d) The Borrower shall fail to perform or observe any other term,
covenant or agreement contained in this Agreement on its part to be
performed or observed if the failure to perform or observe such other term,
covenant or agreement shall remain unremedied for 30 days after written
notice thereof shall have been given to the Borrower by the Administrative
Agent or any Lender; or
(e) The Borrower or any of its subsidiaries shall fail to pay any
principal of or premium or interest on any Debt which is outstanding in a
principal amount of at least $250,000,000 in the aggregate (but excluding
Debt arising hereunder) of the Borrower or such subsidiary (as the case may
be), when the same becomes due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise), and such failure
(i) shall continue after the applicable grace period, if any, specified in
the agreement or instrument relating to such Debt and (ii) shall not have
been cured or waived; or any other event shall occur or condition shall
exist under any agreement or instrument relating to any such Debt and shall
continue after the applicable grace period, if any, specified in such
agreement or instrument, if the effect of such event or condition is to
accelerate, or to permit the acceleration of, the maturity of such Debt; or
any such Debt shall be declared to be due and payable, or required to be
prepaid (other than by a regularly scheduled required prepayment),
redeemed, purchased or defeased, or an offer to prepay, redeem, purchase or
defease such Debt shall be required to be made, in each case prior to the
stated maturity thereof; or
(f) The Borrower or any Material Subsidiary shall generally not pay
its debts as such debts become due, or shall admit in writing its inability
to pay its debts generally, or shall make a general assignment for the
benefit of creditors; or any proceeding shall be instituted by or against
the Borrower or any Material Subsidiary seeking to adjudicate it a bankrupt
or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its
debts under any law relating to bankruptcy, insolvency or reorganization or
relief of debtors, or seeking the entry of an order for relief or the
appointment of a receiver, trustee, custodian or other similar official for
it or for substantially all of its property and, in the case of any such
proceeding instituted against it (but not instituted by it), either such
proceeding shall remain undismissed or unstayed for a period of 60 days or
any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment of
a receiver, trustee, custodian or other similar official for, it or for any
substantial part of its property) shall occur; or the Borrower or any
Material Subsidiary shall take any corporate action to authorize any of the
actions set forth above in this subsection (f); or
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(g) Any money judgment, writ or warrant of attachment or similar
process against the Borrower, any Material Subsidiary or any of their
respective assets involving in any case an amount in excess of $100,000,000
is entered and shall remain undischarged, unvacated, unbonded or unstayed
for a period of 30 days or, in any case, within five days of any pending
sale or disposition of any asset pursuant to any such process;
then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Majority Lenders, by notice to the Borrower,
declare the obligation of each Lender to make Advances to be terminated,
whereupon the same shall forthwith terminate, and (ii) shall at the request, or
may with the consent, of the Majority Lenders, by notice to the Borrower,
declare the Advances, all interest thereon and all other amounts payable under
this Agreement to be forthwith due and payable, whereupon the Advances, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Borrower; provided, however, that in the
event of an actual or deemed entry of an order for relief with respect to the
Borrower under the Federal Bankruptcy Code, (A) the obligation of each Lender to
make Advances shall automatically be terminated and (B) the Advances, all such
interest and all such amounts shall automatically become and be due and payable,
without presentment, demand, protest or notice of any kind, all of which are
hereby expressly waived by the Borrower.
ARTICLE VII
THE ADMINISTRATIVE AGENT
SECTION 7.01. Authorization and Action. (a) Each Lender hereby
------------------------
appoints and authorizes the Administrative Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement as are delegated to
the Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. As to any matters not expressly provided for by
this Agreement (including, without limitation, enforcement of this Agreement or
collection of the Advances), the Administrative Agent shall not be required to
exercise any discretion or take any action, but shall be required to act or to
refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Majority Lenders, and such
instructions shall be binding upon all Lenders and all holders of Notes;
provided, however, that the Administrative Agent shall not be required to take
any action which exposes the Administrative Agent to personal liability or which
is contrary to this Agreement or applicable law. The Administrative Agent
agrees to give to each Lender prompt notice of each notice given to it by the
Borrower pursuant to the terms of this Agreement.
(b) The Co-Documentation Agents shall have no duties under this
Agreement other than those afforded to them in their capacities as Lenders, and
each Lender hereby acknowledges that the Co-Documentation Agents have no
liability under this Agreement other than those assumed by them in their
capacities as Lenders.
SECTION 7.02. Administrative Agent's Reliance, Etc. Neither the
------------------------------------
Administrative Agent nor any of its directors, officers, agents or employees
shall be liable to any Lender for any action taken or omitted to be taken by it
or them under or in connection with this Agreement, except for its or their own
gross negligence or willful misconduct. Without limitation of the generality of
the foregoing, the Administrative Agent: (i) may treat the Lender which made
any Advance as the holder of the Debt resulting therefrom until the
Administrative Agent receives and accepts an Assumption Agreement entered into
by an Assuming Lender as provided in Section 2.19 or 2.20, as the case may be,
or an Assignment and Acceptance entered into by such Lender, as assignor, and an
Eligible Assignee, as assignee, as provided in Section 8.07; (ii) may consult
with legal counsel (including counsel for the Borrower), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel,
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accountants or experts; (iii) makes no warranty or representation to any Lender
and shall not be responsible to any Lender for any statements, warranties or
representations (whether written or oral) made in or in connection with this
Agreement; (iv) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this
Agreement on the part of the Borrower or to inspect the property (including the
books and records) of the Borrower; (v) shall not be responsible to any Lender
for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any instrument or document furnished
pursuant hereto; and (vi) shall incur no liability under or in respect of this
Agreement by acting upon any notice, consent, certificate or other instrument or
writing (which may be by telecopier, telegram or telex) believed by it to be
genuine and signed or sent by the proper party or parties.
SECTION 7.03. CUSA and Affiliates. With respect to its Commitment
-------------------
and the Advances made by it and any Note or Notes issued to it, CUSA shall have
the same rights and powers under this Agreement as any other Lender and may
exercise the same as though it were not the Administrative Agent; and the term
"Lender" or "Lenders" shall, unless otherwise expressly indicated, include CUSA
in its individual capacity. CUSA and its respective Affiliates may accept
deposits from, lend money to, act as trustee under indentures of, accept
investment banking engagements from, and generally engage in any kind of
business with, the Borrower, any of its subsidiaries and any Person who may do
business with or own securities of the Borrower or any such subsidiary, all as
if CUSA was not the Administrative Agent and without any duty to account
therefor to the Lenders.
SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that
----------------------
it has, independently and without reliance upon the Administrative Agent or any
other Lender and based on the financial statements referred to in Section
4.01(c) and such other documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon
the Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement.
SECTION 7.05. Indemnification. The Lenders agree to indemnify the
---------------
Administrative Agent (to the extent not reimbursed by the Borrower), ratably
according to the respective principal amounts of Advances then owing to each of
them (or, if no Advances are at the time outstanding or if any Advances are then
owing to Persons which are not Lenders, ratably according to the respective
amounts of their Commitments), 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 Administrative Agent in any way
relating to or arising out of this Agreement or any action taken or omitted by
the Administrative Agent under this Agreement; provided that no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from the Administrative Agent's gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse the Administrative
Agent promptly upon demand for its ratable share of any out-of-pocket expenses
(including reasonable counsel fees) incurred by the Administrative Agent in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal or
bankruptcy proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, to the extent that the Administrative
Agent is not reimbursed for such expenses by the Borrower.
SECTION 7.06. Successor Administrative Agent. The Administrative
------------------------------
Agent may resign at any time by giving written notice thereof to the Lenders and
the Borrower and such resignation shall be effective upon the appointment of a
successor Administrative Agent as provided herein. Upon any such resignation,
the Majority Lenders shall have the right to appoint a successor Administrative
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Agent. If no successor Administrative Agent shall have been so appointed by the
Majority Lenders, and shall have accepted such appointment, within 30 days after
the retiring Administrative Agent's giving of notice of resignation, then the
retiring Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent. Any successor Administrative Agent appointed hereunder
shall be a commercial bank organized or licensed under the laws of the United
States or of any State thereof, or an Affiliate of any such commercial bank,
having a combined capital and surplus of at least $500,000,000. Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, discretion, privileges
and duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations under this Agreement.
After any retiring Administrative Agent's resignation hereunder as
Administrative Agent, the provisions of this Article VII shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement.
SECTION 7.07. Sub-Agent. The Borrower and the Lenders hereby
---------
acknowledge that the Administrative Agent may, in its sole discretion, delegate
any of its obligations hereunder to the Sub-Agent, provided that it has
--------
obtained prior consent to such delegation from the Sub-Agent. The Borrower and
the Lenders further agree that the Sub-Agent shall be entitled to exercise each
of the rights and to enjoy each of the benefits of the Administrative Agent
under this Agreement as related to the performance of its obligations hereunder.
ARTICLE VIII
MISCELLANEOUS
SECTION 8.01. Amendments, Etc. No amendment or waiver of any
---------------
provision of this Agreement, nor consent to any departure by the Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Majority Lenders, 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 Lenders (other than the Borrower or any of its
Affiliates, if a Lender, at the time of any such amendment, waiver or consent),
do any of the following: (a) waive any of the conditions specified in Section
3.01 or 3.02, (b) increase the Commitments of the Lenders (other than as
provided in Section 2.19) or subject the Lenders to any additional obligations,
(c) reduce the principal of, or interest on, the Advances or the fees payable
hereunder, (d) postpone any date fixed for any payment of principal of, or
interest on, the Advances (other than as provided in Section 2.20), (e) change
the percentage of the Commitments or of the aggregate unpaid principal amount of
Advances, or the number of Lenders, which shall be required for the Lenders or
any of them to take any action hereunder or (f) amend this Section 8.01; and
provided further that no amendment, waiver or consent shall, unless in writing
and signed by the Administrative Agent in addition to the Lenders required above
to take such action, affect the rights or duties of the Administrative Agent
under this Agreement or any Note.
SECTION 8.02. Notices, Etc. (a) All notices and other
------------
communications provided for hereunder shall, except as
otherwise expressly provided for herein, be in writing
(including telecopier, telegraphic or telex communication)
and mailed, telecopied, telegraphed, telexed or delivered,
if to the Borrower, at its address at:
The Walt Disney Company
500 South Buena Vista Street
Burbank, California 91521
Attention: Jeff Speed and Steve Flynn
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Telecopier Number: (818) 563-1682;
with a copy to:
The Walt Disney Company
500 South Buena Vista Street
Burbank, California 91521
Attention: Corporate Legal Department
Telecopier Number: (818) 563-4160;
if to any Initial Lender, at its Domestic Lending Office specified opposite its
name on Schedule I hereto; if to any other Lender, at its Domestic Lending
Office specified in the Assumption Agreement or the Assignment and Acceptance
pursuant to which it became a Lender, as the case may be; and if to the
Administrative Agent, at its address at:
Citicorp USA, Inc.
Two Penns Way, Second Floor
New Castle, Delaware 19720
Attention: Pamela Cole
Phone Number: (302) 894-6003
Telecopy Number: (302) 894-6120;
with a copy to:
Citicorp USA, Inc.
787 West Fifth Street, 29th Floor
Los Angeles, California 90071
Attention: Deborah Ironson
Phone Number: (213) 239-1424
Telecopier Number: (213) 623-3592;
or, as to each party, at such other address as shall be designated by such party
in a written notice to the other parties. All such notices and communications
shall, when mailed, telecopied, telegraphed or telexed, be effective when
deposited in the mails, telecopied, delivered to the telegraph company or
confirmed by telex answerback, respectively, except that notices and
communications to the Administrative Agent pursuant to Article II or VII shall
not be effective until received by the Administrative Agent. Delivery by
telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement or of any Exhibit hereto to be executed and
delivered hereunder shall be effective as delivery of an original executed
counterpart thereof.
(b) If any notice required under this Agreement is permitted to be
made, and is made, by telephone, actions taken or omitted to be taken in
reliance thereon by the Administrative Agent or any Lender shall be binding upon
the Borrower notwithstanding any inconsistency between the notice provided by
telephone and any subsequent writing in confirmation thereof provided to the
Administrative Agent or such Lender; provided that any such action taken or
omitted to be taken by the Administrative Agent or such Lender shall have been
in good faith and in accordance with the terms of this Agreement.
SECTION 8.03. No Waiver; Remedies. No failure on the part of any
-------------------
Lender or the Administrative Agent to exercise, and no delay in exercising, any
right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further
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exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.
SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay,
------------------
within five Business Days of demand, all actual and reasonable costs and
expenses, if any (including, without limitation, actual and reasonable counsel
fees and expenses), of the Administrative Agent and each Lender in connection
with the enforcement (whether through legal proceedings or otherwise) of this
Agreement and the other instruments and documents to be delivered hereunder,
including, without limitation, reasonable counsel fees and expenses in
connection with the enforcement of rights under this Section 8.04(a).
(b) If any payment of principal of, or Conversion of, any Eurocurrency
Rate Advance is made other than on the last day of the Interest Period for such
Advance, as a result of a payment or Conversion pursuant to Section 2.08(f) or
2.10 or acceleration of the maturity of the Advances pursuant to Section 6.01 or
for any other reason (other than by reason of a payment pursuant to Section
2.12), the Borrower shall, within five Business Days of demand by any Lender
(with a copy of such demand to the Administrative Agent), pay to such Lender any
amounts required to compensate such Lender for any additional losses, costs or
expenses which it may reasonably incur as a result of such payment or
Conversion, including, without limitation, any loss, cost or expense incurred by
reason of the liquidation or redeployment of deposits or other funds acquired by
such Lender to fund or maintain such Advance.
SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during
----------------
the continuance of any Event of Default and (ii) the making of the request or
the granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare the Advances due and payable pursuant to the
provisions of Section 6.01, each Lender (and, in the case of CUSA, Citibank) is
hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final, but excluding trust accounts) at any time
held and other indebtedness at any time owing by such Lender (and, in the case
of CUSA, Citibank) to or for the credit or the account of the Borrower against
any and all of the obligations of the Borrower now or hereafter existing under
this Agreement, whether or not such Lender shall have made any demand under this
Agreement. Each Lender agrees promptly to notify the Borrower after any such
set-off and application made by such Lender (and, in the case of CUSA,
Citibank); provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Lender (and, in
the case of CUSA, Citibank) under this Section are in addition to other rights
and remedies (including, without limitation, other rights of set-off) which such
Lender may have.
SECTION 8.06. Binding Effect. This Agreement shall become effective
--------------
(other than Section 2.01, which shall only become effective upon satisfaction of
the conditions precedent set forth in Section 3.01) when it shall have been
executed by the Borrower, the Administrative Agent and each Co-Documentation
Agent and when the Administrative Agent shall have been notified by each Initial
Lender that such Initial Lender has executed it and, thereafter, shall be
binding upon and inure to the benefit of the Borrower, the Administrative Agent,
each Co-Documentation Agent and each Lender and their respective successors and
permitted assigns, except that the Borrower shall not have the right to assign
its rights hereunder or any interest herein without the prior written consent of
the Lenders.
SECTION 8.07. Assignments and Participations. (a) Each Lender may
------------------------------
and, if requested by the Borrower upon notice by the Borrower delivered to such
Lender and the Administrative Agent pursuant to clause (ii) of Section 2.16,
will, 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 Advances owing to it and any Note or Notes held
by it); provided, however, that
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(i) each such assignment shall be of a constant, and not a varying, percentage
of all rights and obligations under this Agreement, (ii) the sum of (A) the
amount of the Commitment of the assigning Lender being assigned pursuant to each
such assignment and (B) the amount of the commitment being contemporaneously
assigned under the 364-Day Credit Agreement by the Person that is such assigning
Lender (in both cases determined as of the date of the Assignment and Acceptance
or similar agreement with respect to such assignments) shall not be less than
$25,000,000 in the aggregate (unless such lesser amount is previously agreed
among such assigning Lender, the Administrative Agent and the Borrower) or an
integral multiple of $1,000,000 in excess thereof, provided, however, that if
the aggregate amount of the Commitment of such assigning Lender hereunder and
its commitment under the 364-Day Credit Agreement is less than $25,000,000 on
the date of such proposed assignments, such assigning Lender may assign all, but
not less than all, of its remaining rights and obligations under this Agreement
and the 364-Day Credit Agreement (unless an assignment of a portion of such
assigning Lender's obligations hereunder and thereunder is otherwise previously
agreed among such assigning Lender, the Administrative Agent and the Borrower),
(iii) each such assignment shall be to an Eligible Assignee, and (iv) the
parties to each such assignment (other than the Borrower) shall execute and
deliver to the Administrative Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance, together with a processing and
recordation fee of $3,000. Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in each Assignment and
Acceptance, (x) the assignee thereunder shall be a party hereto and, to the
extent that rights and obligations hereunder have been assigned to it pursuant
to such Assignment and Acceptance, have the rights and obligations of a Lender
hereunder and (y) the Lender assignor thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights (other than any rights such
Lender assignor may have under Sections 2.11, 2.14 and 8.08) and be released
from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's rights
and obligations under this Agreement, such Lender shall cease to be a party
hereto).
(b) By executing and delivering an Assignment and Acceptance, the
Lender assignor thereunder and the assignee thereunder confirm to and agree with
each other and the other parties hereto as follows: (i) other than as provided
in such Assignment and Acceptance, such assigning Lender makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any instrument or document furnished pursuant hereto;
(ii) such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Borrower or any of
its subsidiaries or the performance or observance by the Borrower of any of its
obligations under this Agreement or any instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01(c) and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Administrative Agent, such assigning Lender or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement; (v) such assignee confirms that it is an Eligible
Assignee; (vi) such assignee appoints and authorizes the Administrative Agent to
take such action as agent on its behalf and to exercise such powers under this
Agreement as are delegated to the Administrative Agent by the terms hereof,
together with such powers as are reasonably incidental thereto; and (vii) such
assignee agrees that it will perform in accordance with their terms all of the
obligations which by the terms of this Agreement are required to be performed by
it as a Lender.
(c) The Administrative Agent shall maintain at its address referred to
in Section 8.02 a copy of each Assignment and Acceptance and each Assumption
Agreement delivered to and accepted
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by it and a register for the recordation of the names and addresses of the
Lenders and the Commitment of, and principal amount of the Advances owing to,
each Lender from time to time (the "Register"). The entries in the Register
shall be conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrower or any
Lender at any reasonable time and from time to time upon reasonable prior
notice.
(d) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee
and, if applicable, the Borrower, together with any Note subject to such
assignment, the Administrative Agent shall, if such Assignment and Acceptance
has been completed and is in substantially the form of Exhibit B hereto, (i)
accept such Assignment and Acceptance, (ii) record the information contained
therein in the Register and (iii) give prompt notice thereof to the Borrower.
(e) Each Lender may sell participations to one or more banks or other
entities in or to all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment and
the Advances owing to it and any Note issued to it hereunder); provided,
however, that (i) such Lender's obligations under this Agreement (including,
without limitation, its Commitment hereunder) shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) the Borrower, the Administrative Agent
and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement, and (iv) such Lender shall not agree in any participation agreement
with any participant or proposed participant to obtain the consent of such
participant before agreeing to the amendment, modification or waiver of any of
the terms of this Agreement or any Note, before consenting to any action or
failure to act by the Borrower or any other party hereunder or under any Note,
or before exercising any rights it may have in respect thereof, unless such
amendment, modification, waiver, consent or exercise would (A) increase the
amount of such participant's portion of such Lender's Commitment, (B) reduce the
principal amount of or rate of interest on the Advances or any fee or other
amounts payable hereunder to which such participant would be entitled to receive
a share under such participation agreement, or (C) postpone any date fixed for
any payment of principal of or interest on the Advances or any fee or other
amounts payable hereunder to which such participant would be entitled to receive
a share under such participation agreement.
(f) Any Lender may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section 8.07, disclose
to the assignee or participant or proposed assignee or participant any
information relating to the Borrower furnished to such Lender by or on behalf of
the Borrower in writing and directly related to the transactions contemplated
hereunder; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree to preserve the
confidentiality of any confidential information relating to the Borrower
received by it from such Lender in accordance with the terms of Section 8.09.
(g) No participation or assignment hereunder shall be made in
violation of the Securities Act of 1933, as amended from time to time, or any
applicable state securities laws, and each Lender hereby represents that it will
make any Advance for its own account in the ordinary course of its business and
not with a view to the public distribution or sale thereof.
(h) Anything in this Agreement to the contrary notwithstanding, any
Lender may at any time create a security interest in all or any portion of its
rights under this Agreement (including, without limitation, the Advances owing
to it and any Note issued to it hereunder) in favor of any Federal
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Reserve Bank in accordance with Regulation A of the Board of Governors of the
Federal Reserve System (or any successor regulation thereto) and the applicable
operating circular of such Federal Reserve Bank.
SECTION 8.08. Indemnification. The Borrower agrees to indemnify and
---------------
hold harmless the Administrative Agent, each Co-Documentation Agent and each
Lender and each of their Affiliates and their respective officers, directors,
employees, agents and advisors (each an "Indemnified Party") from and against
any and all claims, damages, losses, liabilities and expenses (including,
without limitation, reasonable fees and expenses of counsel) that may be
incurred by or asserted against any Indemnified Party, in each case arising out
of or in connection with or by reason of, or in connection with the preparation
for a defense of, any investigation, litigation or proceeding (whether or not an
Indemnified Party is a party thereto) arising out of, related to or in
connection with the Commitments hereunder or the Advances made pursuant hereto
or any transactions done in connection herewith, including, without limitation,
any transaction in which any proceeds of the Advances are, or are proposed, to
be applied (collectively, the "Indemnified Matters"); provided that the Borrower
shall have no obligation to any Indemnified Party under this Section 8.08 with
respect to (i) matters for which such Indemnified Party has been reimbursed by
or on behalf of the Borrower pursuant to any other provision of this Agreement,
but only to the extent of such reimbursement, or (ii) Indemnified Matters found
by a court of competent jurisdiction to have resulted from the willful
misconduct or gross negligence of such Indemnified Party. If any action is
brought against any Indemnified Party, such Indemnified Party shall promptly
notify the Borrower in writing of the institution of such action and the
Borrower shall thereupon have the right, at its option, to elect to assume the
defense of such action; provided, however, that the Borrower shall not, in
assuming the defense of any Indemnified Party in any Indemnified Matter, agree
to any dismissal or settlement of such Indemnified Matter without the prior
written consent of such Indemnified Party, which consent shall not be
unreasonably withheld, if such dismissal or settlement (A) would require any
admission or acknowledgment of culpability or wrongdoing by such Indemnified
Party or (B) would provide for any nonmonetary relief to any Person to be
performed by such Indemnified Party. If the Borrower so elects, it shall
promptly assume the defense of such action, including the employment of counsel
(reasonably satisfactory to such Indemnified Party) and payment of expenses.
Such Indemnified Party shall have the right to employ its or their own counsel
in any such case, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Party unless (1) the employment of such counsel
shall have been authorized in writing by the Borrower in connection with the
defense of such action or (2) the Borrower shall not have properly employed
counsel reasonably satisfactory to such Indemnified Party to have charge of the
defense of such action, in which case such fees and expenses shall be paid by
the Borrower. If an Indemnified Party shall have reasonably concluded (based
upon the advice of counsel) that the representation by one counsel of such
Indemnified Party and the Borrower creates a conflict of interest for such
counsel, the reasonable fees and expenses of such counsel shall be borne by the
Borrower and the Borrower shall not have the right to direct the defense of such
action on behalf of such Indemnified Party (but shall retain the right to direct
the defense of such action on behalf of the Borrower). Anything in this Section
8.08 to the contrary notwithstanding, the Borrower shall not be liable for the
fees and expenses of more than one counsel for any Indemnified Party in any
jurisdiction as to any Indemnified Matter or for any settlement of any
Indemnified Matter effected without its written consent. All obligations of the
Borrower under this Section 8.08 shall survive the making and repayment of the
Advances and the termination of this Agreement.
SECTION 8.09. Confidentiality. Subject to the provisions of Section
---------------
8.07(f), each Lender shall, and shall instruct its Affiliates, successors,
assigns, advisors, officers, employees, directors, agents, legal counsel and
other professional advisors (the "Informed Parties") to, hold all nonpublic
information obtained pursuant to this Agreement in accordance with its customary
procedures for handling confidential information of this nature and in
accordance with safe and sound banking practices and in any event may make
disclosure reasonably required by a bona fide transferee or participant in
connection with the contemplated transfer or participation or to another Lender
or an Informed Party
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agreeing to hold such nonpublic information as confidential or as required or
requested by law or to any governmental authority or representative thereof or
pursuant to legal process; provided that unless specifically prohibited by
applicable law or court order, each Lender shall notify the Borrower of any
request by any governmental authority or representative thereof (other than any
such request in connection with an examination of the financial condition of
such Lender by such governmental authority) for disclosure of any such nonpublic
information prior to disclosure of such information; and provided further that
in no event shall any Lender be obligated or required to return any materials
furnished by the Borrower.
SECTION 8.10. Judgment. (a) If for the purposes of obtaining
--------
judgment in any court it is necessary to convert a sum due hereunder in Dollars
into another currency, the parties hereto agree, to the fullest extent that they
may effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Administrative Agent could
purchase Dollars with such other currency at Citibank's principal office in
London at 11:00 A.M. (London time) on the Business Day preceding that on which
final judgment is given.
(b) If for the purposes of obtaining judgment in any court it is
necessary to convert a sum due hereunder in a Committed Currency into Dollars,
the parties agree to the fullest extent that they may effectively do so, that
the rate of exchange used shall be that at which in accordance with normal
banking procedures the Administrative Agent could purchase such Committed
Currency with Dollars at Citibank's principal office in London at 11:00 A.M.
(London time) on the Business Day preceding that on which final judgment is
given.
(c) The obligation of the Borrower in respect of any sum due from it
in any currency (the "Primary Currency") to any Lender or the Administrative
----------------
Agent hereunder shall, notwithstanding any judgment in any other currency, be
discharged only to the extent that on the Business Day following receipt by such
Lender or the Administrative Agent (as the case may be), of any sum adjudged to
be so due in such other currency, such Lender or the Administrative Agent (as
the case may be) may in accordance with normal banking procedures purchase the
applicable Primary Currency with such other currency; if the amount of the
applicable Primary Currency so purchased is less than such sum due to such
Lender or the Administrative Agent (as the case may be) in the applicable
Primary Currency, the Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify such Lender or the
Administrative Agent (as the case may be) against such loss, and if the amount
of the applicable Primary Currency so purchased exceeds such sum due to any
Lender or the Administrative Agent (as the case may be) in the applicable
Primary Currency, such Lender or the Administrative Agent (as the case may be)
agrees to remit to the Borrower such excess.
SECTION 8.11. Consent to Jurisdiction and Service of Process. All
----------------------------------------------
judicial proceedings brought against the Borrower with respect to this Agreement
or any instrument or other documents delivered hereunder may be brought in any
state or federal court in the Borough of Manhattan in the State of New York, and
by execution and delivery of this Agreement, the Borrower accepts, for itself
and in connection with its properties, generally and unconditionally, the
nonexclusive jurisdiction of the aforesaid courts, and irrevocably agrees to be
bound by any final judgment rendered thereby in connection with this Agreement
or any instrument or other document delivered hereunder from which no appeal has
been taken or is available. The Borrower agrees to receive service of process
in any such proceeding in any such court at its office at 500 Park Avenue, New
York, New York 10022, Attention: Kenneth E. Newman (or at such other address in
the Borough of Manhattan in the State of New York as the Borrower shall notify
the Administrative Agent from time to time) and, if the Borrower ever ceases to
maintain such office in the Borough of Manhattan, irrevocably designates and
appoints CT Corporation System, 1633 Broadway, New York, New York 10019, or any
other address in the State of New York communicated by CT Corporation System to
the Administrative Agent, as its agent to receive on its
41
<PAGE>
behalf service of all process in any such proceeding in any such court, such
service being hereby acknowledged by the Borrower to be effective and binding
service in every respect.
SECTION 8.12. Substitution of Currency. If a change in any Committed
------------------------
Currency occurs pursuant to any applicable law, rule or regulation of any
governmental, monetary or multi-national authority, this Agreement (including,
without limitation, the definition of Eurocurrency Rate) will be amended to the
extent determined by the Administrative Agent (acting reasonably, in
consultation with the Borrower and in accordance with the terms of Section 8.01
hereof) to be necessary to reflect the change in currency and to put the Lenders
and the Borrower in the same position, so far as possible, that they would have
been in if no change in such Committed Currency had occurred.
SECTION 8.13. Governing Law. This Agreement shall be governed by,
-------------
and construed in accordance with, the laws of the State of New York.
SECTION 8.14. Execution in Counterparts. This Agreement may be
-------------------------
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement. A full set of executed counterparts of this
Agreement shall be lodged with the Administrative Agent and the Borrower.
SECTION 8.15. Severability. Any provision of this Agreement that is
------------
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceablity in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.
42
<PAGE>
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.
THE BORROWER
------------
THE WALT DISNEY COMPANY
By:
----------------------
Title:
-------------------
THE ADMINISTRATIVE AGENT
------------------------
CITICORP USA, INC.,
as Administrative Agent
By:
----------------------
Title:
-------------------
THE SYNDICATION AGENT
---------------------
BANK ONE, NA
as Syndication Agent
By:
------------------------------------------
Title:
-----------------------------------
43
<PAGE>
THE CO-DOCUMENTATION AGENTS
---------------------------
HSBC BANK USA,
as Co-Documentation Agent
By:
-----------------------
Title:
-------------------
By:
-----------------------
Title:
-------------------
SUNTRUST BANK,
as Co-Documentation Agent
By:
-----------------------
Title:
-------------------
44
<PAGE>
INITIAL LENDERS
---------------
Commitment
----------
$187,500,000.00 CITICORP USA, INC.
By:
-----------------------
Title:
-------------------
45
<PAGE>
$137,500,000.00 BANK ONE, NA
By:
-----------------------
Title:
-------------------
46
<PAGE>
$137,500,000.00 HSBC BANK USA
By:
-----------------------
Title:
-------------------
47
<PAGE>
$137,500,000.00 SUNTRUST BANK
By:
-----------------------
Title:
-------------------
48
<PAGE>
$137,500,000.00 BANK OF AMERICA, N.A.
By:
-----------------------
Title:
-------------------
49
<PAGE>
$137,500,000.00 CREDIT SUISSE FIRST BOSTON
By:
-----------------------
Title:
-------------------
By:
-----------------------
Title:
-------------------
50
<PAGE>
$137,500,000.00 THE CHASE MANHATTAN BANK
By:
-----------------------
Title:
-------------------
51
<PAGE>
$92,500,000.00 BANCA COMMERCIALE ITALIANA,
LOS ANGELES FOREIGN BRANCH
By:
-----------------------
Title:
-------------------
By:
-----------------------
Title:
-------------------
52
<PAGE>
$92,500,000.00 BANQUE NATIONALE DE PARIS
By:
-----------------------
Title:
-------------------
By:
-----------------------
Title:
-------------------
53
<PAGE>
$92,500,000.00 BARCLAYS BANK PLC
By:
-----------------------
Title:
-------------------
54
<PAGE>
$92,500,000.00 DEUTSCHE BANK AG NEW YORK
AND/OR CAYMAN ISLANDS BRANCHES
By:
-----------------------
Title:
-------------------
By:
-----------------------
Title:
-------------------
55
<PAGE>
$92,500,000.00 STANDARD CHARTERED BANK
By:
-----------------------
Title:
-------------------
By:
-----------------------
Title:
-------------------
56
<PAGE>
$75,000,000.00 BANK OF MONTREAL
By:
-----------------------
Title:
-------------------
57
<PAGE>
$75,000,000.00 THE BANK OF NEW YORK
By:
-----------------------
Title:
-------------------
58
<PAGE>
$75,000,000.00 FLEET NATIONAL BANK
By:
-----------------------
Title:
-------------------
59
<PAGE>
$62,500,000.00 BANCA DI ROMA - SAN FRANCISCO
BRANCH
By:
-----------------------
Title:
-------------------
By:
-----------------------
Title:
-------------------
60
<PAGE>
$62,500,000.00 THE FUJI BANK, LIMITED
By:
-----------------------
Title:
-------------------
61
<PAGE>
$62,500,000.00 THE SANWA BANK, LIMITED
By:
-----------------------
Title:
-------------------
62
<PAGE>
$62,500,000.00 WELLS FARGO BANK, N.A.
By:
-----------------------
Title:
-------------------
By:
-----------------------
Title:
-------------------
63
<PAGE>
$37,500,000.00 FIRST UNION NATIONAL BANK
By:
-----------------------
Title:
-------------------
By:
-----------------------
Title:
-------------------
64
<PAGE>
$37,500,000.00 ING BANK N.V.
By:
-----------------------
Title:
-------------------
By:
-----------------------
Title:
-------------------
65
<PAGE>
$37,500,000.00 LEHMAN COMMERCIAL PAPER, INC.
By:
-----------------------
Title:
-------------------
66
<PAGE>
$37,500,000.00 MORGAN GUARANTY TRUST COMPANY
OF NEW YORK
By:
-----------------------
Title:
-------------------
67
<PAGE>
$37,500,000.00 NATIONAL AUSTRALIA BANK LIMITED
By:
-----------------------
Title:
-------------------
68
<PAGE>
$37,500,000.00 THE NORTHERN TRUST COMPANY
By:
-----------------------
Title:
-------------------
69
<PAGE>
$37,500,000.00 UNION BANK OF CALIFORNIA, N.A.
By:
-----------------------
Title:
-------------------
70
<PAGE>
$37,500,000.00 WACHOVIA BANK, N.A.
By:
-----------------------
Title:
-------------------
$2,250,000,000.00 TOTAL COMMITMENTS
71
