Exhibit 4.2
BRIDGE CREDIT AGREEMENT
among
AT&T COMCAST CORPORATION
AT&T BROADBAND CORP.
The Financial Institutions Party Hereto
JPMORGAN CHASE BANK,
as Administrative Agent
CITIBANK, N.A.,
as Syndication Agent
and
BANK OF AMERICA, N.A.,
MERRILL LYNCH & CO.,
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
AND
MORGAN STANLEY SENIOR FUNDING, INC.
as Co-Documentation Agents
Dated as of April 26, 2002
J.P. MORGAN SECURITIES INC.
and
SALOMON SMITH BARNEY INC.,
as
Joint Lead Arrangers and Joint Bookrunners
BANC OF AMERICA SECURITIES LLC,
MERRILL LYNCH & CO.,
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
AND
MORGAN STANLEY SENIOR FUNDING, INC.
as Co-Arrangers
TABLE OF CONTENTS
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ii
iii
iv
EXHIBITS
A Form of Guarantee Agreement
B Form of Request for Extension of Credit
C Form of Compliance Certificate
D Form of Assignment and Acceptance
SCHEDULES
A Excluded Indebtedness
2.01 Commitments
2.06A Included Asset Sales
2.06B Excluded Asset Sales
7.01 Existing Liens
7.02 Existing Subsidiary Indebtedness
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BRIDGE CREDIT AGREEMENT
This BRIDGE CREDIT AGREEMENT is entered into as of April 26,
2002, by and among AT&T COMCAST CORPORATION, a Pennsylvania corporation
("Borrower"), AT&T BROADBAND CORP., a Delaware corporation, each lender from
time to time party hereto (collectively, "Lenders" and individually, a
"Lender"), JPMorgan Chase Bank, as Administrative Agent, CITIBANK, N.A., as
syndication agent (in such capacity, "Syndication Agent"), and BANK OF AMERICA,
N.A., MERRILL LYNCH & CO., Merrill Lynch, Pierce, Fenner & Smith Incorporated
and MORGAN STANLEY SENIOR FUNDING, INC., as co-documentation agents (in such
capacity, "Co-Documentation Agents").
RECITAL
Borrower has requested that Lenders provide a term loan
facility, and Lenders are willing to do so on the terms and conditions set forth
herein.
In consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:
SECTION 1
DEFINITIONS AND ACCOUNTING TERMS
1.01 Defined Terms. As used in this Agreement, the following
terms shall have the meanings set forth below:
"Acquisition" means (a) any purchase or other acquisition of
assets or series of related purchases or other acquisitions of assets by
Borrower or any Restricted Subsidiary (including by way of asset or stock
purchase, swap or merger) other than from Borrower or any Restricted Subsidiary
or (b) the designation by Borrower of an Unrestricted Subsidiary as a Restricted
Subsidiary.
"Administrative Agent" means JPMorgan Chase Bank, in its
capacity as administrative agent under any of the Loan Documents, or any
successor administrative agent permitted under the Loan Documents.
"Administrative Agent's Office" means Administrative Agent's
address and, as appropriate, account set forth below its signature to this
Agreement, or such other address or account as Administrative Agent hereafter
may designate by written notice to Borrower and Lenders.
"Administrative Agent-Related Persons" means Administrative
Agent (including any successor agent), together with its Affiliates and the
officers, directors, employees, agents and attorneys-in-fact of such Persons and
Affiliates.
"Administrative Questionnaire" means, with respect to each
Lender, an administrative questionnaire in the form prepared by Administrative
Agent and submitted to Administrative Agent (with a copy to Borrower) duly
completed by such Lender.
"Affiliate" means, as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is under direct
or indirect common control with, such Person.
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"Agents" means the collective reference to Administrative
Agent, Syndication Agent and Co-Documentation Agents.
"Agreement" means this Bridge Credit Agreement, as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time.
"Annualized EBITDA" means, at any date of determination,
EBITDA for the two fiscal quarter periods then most recently ended times two
(2); provided that (x) for the purposes of calculating the Interest Coverage
Ratio at December 31, 2002 and March 31, 2003, Annualized EBITDA shall mean
EBITDA for the period from the first day of the fiscal quarter in which the
Effective Date occurs to such date of determination and (y) for the purposes of
calculating the Leverage Ratio at March 31, 2003, Annualized EBITDA shall mean
EBITDA for the fiscal quarter period then ended times four (4).
"Annualized Interest Expense" means, at any date of
determination, Interest Expense for the two fiscal quarter periods then most
recently ended times two (2); provided that for the purposes of calculating the
Interest Coverage Ratio at December 31, 2002 and March 31, 2003, Annualized
Interest Expense shall mean Interest Expense for the period from the first day
of the fiscal quarter in which the Effective Date occurs to such date of
determination.
"Applicable Amount" means the rate per annum, in basis points,
set forth under the relevant column heading below based upon the applicable Debt
Ratings:
As used in this definition, "Debt Rating" means, as of any
date of determination, the rating as determined by either S&P or Moody's
(collectively, the "Debt Ratings") of Borrower's senior unsecured non-credit
enhanced long-term Indebtedness for borrowed money; provided that, solely for
purposes of determining the Applicable Amount, if a Debt Rating is issued by
each of S&P and Moody's, then the higher of such Debt Ratings shall apply (with
Pricing Level 1 being the highest and Pricing Level 6 being the lowest), unless
there is a split in Debt Ratings of more than one level, in which case the level
that is one level higher than the lower Debt Rating shall apply. Initially, the
Debt Ratings shall be determined from the certificate delivered pursuant to
Section 4(a)(iv). Thereafter, the Debt Ratings shall be determined from the most
recent public announcement of any changes in the Debt Ratings. Any change in the
Applicable Amount shall become effective on and as of the date of any public
announcement of any Debt Rating that indicates a different Applicable Amount. If
the rating system of S&P or Moody's shall change, Borrower and Administrative
Agent shall negotiate in good faith to amend this definition to reflect such
changed rating system and, pending the effectiveness of such amendment (which
shall require the approval of Required Lenders), the Debt Rating shall be
determined by reference to the rating most recently in effect prior to such
change.
"Applicable Payment Date" means, (a) as to any Eurodollar Rate
Loan, the last day of the relevant Interest Period, any date that such Loan is
prepaid or Converted in whole or in part and the maturity date of such Loan;
provided, however, that if any Interest Period for a Eurodollar Rate Loan
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exceeds three months, interest shall also be paid on the Business Day which
falls every three months after the beginning of such Interest Period; and (b) as
to any other Obligations, the last Business Day of each calendar quarter and the
maturity date of such Obligation, except as otherwise provided herein.
"Applicable Time" means New York time.
"Asset Monetization Transactions" has the meaning set forth in
the definition of Consolidated Total Indebtedness.
"Asset Sale" means (i) any of the transactions identified on
Schedule 2.06A and (ii) any sale, lease, sale and leaseback, assignment,
conveyance, transfer or other disposition of property or series of related
sales, leases, sale and leasebacks, assignments, conveyances, transfers or other
dispositions of property that yields Net Cash Proceeds in excess of
$100,000,000, but excluding (a) dispositions in the ordinary course of business,
(b) dispositions to Borrower or a Subsidiary of Borrower, and (c) the
transactions identified on Schedule 2.06B. For avoidance of doubt, any
disposition of property in connection with an Asset Monetization Transaction
shall not be treated as an Asset Sale.
"Assignment and Acceptance" means an Assignment and Acceptance
substantially in the form of Exhibit D.
"Attorney Costs" means the reasonable fees and disbursements
of a law firm or other external counsel.
"Attributable Indebtedness" means, with respect to any
Sale-Leaseback Transaction, the present value (discounted at the rate set forth
or implicit in the terms of the lease included in such Sale-Leaseback
Transaction) of the total obligations of the lessee for rental payments (other
than amounts required to be paid on account of taxes, maintenance, repairs,
insurance, assessments, utilities, operating and labor costs and other items
that do not constitute payments for property rights) during the remaining term
of the lease included in such Sale-Leaseback Transaction (including any period
for which such lease has been extended). In the case of any lease that is
terminable by the lessee upon payment of a penalty, the Attributable
Indebtedness shall be the lesser of the Attributable Indebtedness determined
assuming termination on the first date such lease may be terminated (in which
case the Attributable Indebtedness shall also include the amount of the penalty,
but no rent shall be considered as required to be paid under such lease
subsequent to the first date on which it may be so terminated) or the
Attributable Indebtedness determined assuming no such termination.
"Base Rate" means for any day a fluctuating rate per annum
equal to the higher of (a) the Federal Funds Rate in effect for such day plus
1/2 of 1% and (b) the rate of interest in effect for such day as publicly
announced from time to time by JPMorgan Chase as its "prime rate" in effect at
its principal office in New York City (the Prime Rate not being intended to be
the lowest rate of interest charged by JPMorgan Chase in connection with
extensions of credit to debtors). Any change in such rate announced by JPMorgan
Chase shall take effect at the opening of business on the day specified in the
public announcement of such change.
"Base Rate Loan" means a Loan made hereunder that bears
interest based upon the Base Rate.
"BLR Group" means Brian L. Roberts ("BLR"), a lineal
descendant of BLR, the estate of BLR, any trust of which the principal
beneficiaries are any one or more of BLR and his lineal descendants and any
group (within the meaning of the Securities Exchange Act of 1934 and the rules
of the Securities
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and Exchange Commission thereunder as in effect on the date hereof) of which any
of the foregoing is a member.
"Borrower" has the meaning set forth in the introductory
paragraph hereto.
"Borrowing" and "Borrow" each mean a borrowing of Loans
hereunder.
"Broadband" means AT&T Broadband Corp.
"Business Day" means any day other than a Saturday, Sunday or
other day on which commercial banks in New York, New York are authorized or
required by law to close, and, if the applicable Business Day relates to a
Eurodollar Rate Loan, any such day on which dealings are carried out in the
applicable offshore Dollar market.
"Cable Subsidiary" means a Subsidiary of Borrower that (a)
operates cable assets or (b) directly or indirectly owns or holds an investment
in another Person that operates cable assets.
"Change of Control" means the occurrence after the
consummation of the Transactions of any of the following: (a) the acquisition of
ownership, directly or indirectly, beneficially or of record, by any Person or
group (within the meaning of the Securities Exchange Act of 1934 and the rules
of the Securities and Exchange Commission thereunder as in effect on the date
hereof), other than the BLR Group, of Equity Interests representing more than
the greater of (i) 35% and (ii) the percentage owned, directly or indirectly,
beneficially or of record, by the BLR Group, of the aggregate ordinary voting
power represented by the issued and outstanding Equity Interests of Borrower;
(b) the occupation of a majority of the seats (other than vacant seats) on the
board of directors of Borrower by Persons who were neither (i) nominated by the
board of directors of Borrower (or by the Nominating Committee of such board)
nor (ii) appointed by directors so nominated; or (c) the acquisition of direct
or indirect Control of Borrower by any Person or group, other than the BLR
Group. As used in this definition, "Control" means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by
contract or otherwise.
"Code" means the Internal Revenue Code of 1986, as amended
from time to time.
"Co-Borrower" means each of Borrower and Broadband.
"Co-Documentation Agents" has the meaning set forth in the
introductory paragraph hereto.
"Commitment" means, for each Lender, the amount set forth
under the heading "Commitment" opposite such Lender's name on Schedule 2.01, as
such amount may be reduced or adjusted from time to time in accordance with the
terms of this Agreement.
"Compliance Certificate" means a certificate substantially in
the form of Exhibit C, properly completed and signed by a Responsible Officer of
Borrower.
"Consolidated Total Indebtedness" means, as of any date of
determination, the total Indebtedness of Borrower and its Restricted
Subsidiaries, determined on a consolidated basis in accordance with GAAP, but
excluding (i) Indebtedness of Borrower and its Restricted Subsidiaries arising
from (A) the asset monetization transactions set forth on Schedule A and any
extensions, renewals or replacements thereof and (B) any asset monetization
transactions which are recourse only to the assets so monetized and are done on
substantially similar terms to the asset monetization transactions set forth
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on Schedule A (collectively, "Asset Monetization Transactions") and (ii) the net
remaining excess of the fair value over the recorded value of the Indebtedness
of Broadband and its Subsidiaries as of the Effective Date.
"Continuation" and "Continue" mean, with respect to any
Eurodollar Rate Loan, the continuation of such Eurodollar Rate Loan as a
Eurodollar Rate Loan on the last day of the Interest Period for such Loan.
"Contractual Obligation" means, as to any Person, any
provision of any security issued by such Person or of any agreement, instrument
or undertaking to which such Person is a party or by which it or any of its
property is bound.
"Conversion" and "Convert" mean, with respect to any Loan, the
conversion of such Loan from or into another type of Loan.
"Debtor Relief Laws" means the Bankruptcy Code of the United
States of America, and all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement,
receivership, insolvency, reorganization or similar debtor relief Laws of the
United States of America or other applicable jurisdictions from time to time in
effect affecting the rights of creditors generally.
"Debt Rating" has the meaning set forth in the definition of
Applicable Amount.
"Default" means any event that, with the giving of any notice,
the passage of time, or both, would be an Event of Default.
"Default Rate" means an interest rate equal to the Base Rate
plus 2% per annum; provided, however, that with respect to a Eurodollar Rate
Loan (for so long as it is a Eurodollar Rate Loan), the Default Rate shall be an
interest rate equal to the interest rate (including any Applicable Amount)
otherwise applicable to such Loan plus 2% per annum, in each case to the fullest
extent permitted by applicable Laws.
"Disposition" means (a) any sale, transfer or other
disposition of assets or series of sales, transfers or other disposition of
assets by Borrower or any Restricted Subsidiary (including by way of asset or
stock sale, swap or merger) other than to Borrower or any Restricted Subsidiary
or (b) the designation by Borrower of a Restricted Subsidiary as an Unrestricted
Subsidiary.
"Dollar" and "$" means lawful money of the United States of
America.
"EBITDA" means, with respect to any Person or any income
generating assets, for any period, an amount equal to (a) the net income of such
Person or generated by such assets adjusted to exclude (i) gains and losses from
unusual or extraordinary items and (ii) interest income, plus (b) income or
gross receipts taxes (whether or not deferred), Interest Expense, depreciation,
amortization and other non-cash charges to income, in each case for such period,
minus (c) any cash payments made during such period in respect of any non-cash
charges to income accrued during a prior period and added back in determining
EBITDA during such prior period pursuant to clause (b) above, plus (d) any
restructuring and other nonrecurring charges and expenses directly related to
the Transactions incurred prior to June 30, 2004, plus (e) corporate overhead
expenses incurred by Borrower in an aggregate amount not to exceed $100,000,000
for any fiscal year of Borrower.
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"Effective Date" means the date upon which all the conditions
precedent in Section 4 have been satisfied or waived, which date shall be at
least one Business Day after receipt by Administrative Agent of a written notice
from Borrower identifying such date as the anticipated Effective Date (which
written notice Administrative Agent will promptly forward to Lenders).
"Environmental Laws" means all Laws relating to environmental,
health, safety and land use matters applicable to any property.
"Equity Interests" means shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person, and any
warrants, options or other rights entitling the holder thereof to purchase or
acquire any such equity interest.
"ERISA" means the Employee Retirement Income Security Act of
1974 and any regulations issued pursuant thereto, as amended from time to time.
"ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control with Borrower within the meaning of Section
414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes
of provisions relating to Section 412 of the Code).
"ERISA Event" means (a) any "reportable event," as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an "accumulated funding deficiency" (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d)
of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (d) the incurrence by Borrower or any ERISA Affiliates of
any liability under Title IV of ERISA with respect to the termination of any
Plan; (e) the receipt by Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or to
appoint a trustee to administer any Plan; (f) the incurrence by Borrower or any
ERISA Affiliates of any liability with respect to the withdrawal or partial
withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by any
Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from Borrower or any ERISA Affiliate of any notice,
concerning the imposition of withdrawal liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.
"Eurodollar Base Rate" has the meaning set forth in the
definition of Eurodollar Rate.
"Eurodollar Rate" means for any Interest Period with respect
to any Eurodollar Rate Loan, a rate per annum determined by Administrative Agent
pursuant to the following formula:
Eurodollar Rate = Eurodollar Base Rate
------------------------------------
1.00 - Eurodollar Reserve Percentage
Where,
"Eurodollar Base Rate" means, for such Interest Period:
(a) The rate per annum equal to the rate determined by
Administrative Agent to be the offered rate that appears on the page of
the Telerate screen that displays an average British Bankers
Association Interest Settlement Rate for deposits in Dollars (for
delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period, determined as of
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approximately 11:00 a.m. (London time) two Business Days prior to the
first day of such Interest Period, or
(b) In the event the rate referenced in the preceding
subsection (a) does not appear on such page or service or such page or
service shall cease to be available, the rate per annum equal to the
rate reasonably determined by Administrative Agent (after consultation
with Borrower) to be the offered rate on such other page or other
service that displays an average British Bankers Association Interest
Settlement Rate for deposits in Dollars (for delivery on the first day
of such Interest Period) with a term equivalent to such Interest
Period, determined as of approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period, or
(c) In the event the rates referenced in the preceding
subsections (a) and (b) are not available, the rate per annum
determined by Administrative Agent as the average of the rates of
interest (rounded upward to the next 1/100th of 1%) at which deposits
in Dollars for delivery on the first day of such Interest Period in
same day funds in the approximate amount of the Eurodollar Rate Loan
being made, Continued or Converted by Administrative Agent in its
capacity as a Lender and with a term equivalent to such Interest Period
are offered by Reference Banks to major banks in the London interbank
Dollar market at their request at approximately 11:00 a.m. (London
time) two Business Days prior to the first day of such Interest Period.
If any Reference Bank does not quote such a rate at the request of
Administrative Agent, such average rate shall be determined from the
rates of the Reference Banks that quote such a rate; and
"Eurodollar Reserve Percentage" means, for any day during any
Interest Period, the reserve percentage (expressed as a decimal,
rounded upward to the next 1/100th of 1%) in effect on such day,
whether or not applicable to any Lender, under regulations issued from
time to time by the Board of Governors of the Federal Reserve System
for determining the maximum reserve requirement (including any
emergency, supplemental or other marginal reserve requirement) for a
member bank of the Federal Reserve System in respect of "Eurocurrency
liabilities" (or in respect of any other category of liabilities, which
includes deposits by reference to which the interest rate on Eurodollar
Rate Loans is determined or any category of extensions of credit or
other assets, which includes loans by a non- United States office of
any Lender to United States residents). The Eurodollar Rate for each
outstanding Eurodollar Rate Loan shall be adjusted automatically as of
the effective date of any change in the Eurodollar Reserve Percentage.
The determination of the Eurodollar Reserve Percentage and the
Eurodollar Base Rate by Administrative Agent shall be conclusive in the
absence of manifest error.
"Eurodollar Rate Loan" means a Loan bearing interest based on
the Eurodollar Rate.
"Eurodollar Reserve Percentage" has the meaning set forth in
the definition of Eurodollar Rate.
"Event of Default" means any of the events specified in
Section 8.
"Existing Comcast Facilities" means the collective reference
to the 364-Day Agreement and the Five Year Revolving Credit Agreement.
"Extension of Credit" means a Borrowing, Conversion or
Continuation of Loans (collectively, the "Extensions of Credit").
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"Federal Funds Rate" means, for any day, the rate per annum
(rounded upwards to the nearest 1/100 of 1%) equal to the weighted average of
the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided that (a) if such day is not a Business Day, the Federal Funds Rate
for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (b) if no
such rate is so published on such next succeeding Business Day, the Federal
Funds Rate for such day shall be the average rate charged to JPMorgan Chase on
such day on such transactions as determined by Administrative Agent (which
determination shall be conclusive in the absence of manifest error).
"Five Year Revolving Credit Agreement" means the Five Year
Revolving Credit Agreement dated August 24, 2000, among Comcast Cable
Communications, Inc., Bank of America, N.A., as Administrative Agent and the
lenders party thereto.
"GAAP" means generally accepted accounting principles applied
on a consistent basis (but subject to changes approved by Borrower's independent
certified public accountants).
"Governmental Authority" means (a) any international, foreign,
federal, state, county or municipal government, or political subdivision
thereof, (b) any governmental or quasi-governmental agency, authority, board,
bureau, commission, department, instrumentality, central bank or public body,
including the Federal Communications Commission, (c) any state public utilities
commission or other authority and any federal, state, county, or municipal
licensing or franchising authority or (d) any court or administrative tribunal.
"Guarantee Agreement" means the Guarantee Agreement to be
executed and delivered by each Guarantor, substantially in the form of Exhibit
A.
"Guarantors" means Comcast Cable Communications, Inc.,
MediaOne Group, Inc., AT&T Broadband, LLC, Broadband, Borrower and each
Restricted Subsidiary that becomes a party to the Guarantee Agreement pursuant
to Section 7.02(c).
"Guaranty Obligation" means, as to any Person, any (a)
guaranty by such Person of Indebtedness of any other Person or (b) legally
binding obligation of such Person to purchase or pay (or to advance or supply
funds for the purchase or payment of) Indebtedness of any other Person, or to
purchase property, securities, or services for the purpose of assuring the owner
of such Indebtedness of the payment of such Indebtedness or to maintain working
capital, equity capital or other financial statement condition of such other
Person so as to enable such other Person to pay such Indebtedness; provided,
however, that the term Guaranty Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business. The
amount of any Guaranty Obligation shall be deemed to be an amount equal to the
stated or determinable amount of the related primary obligation, or portion
thereof, covered by such Guaranty Obligation or, if not stated or determinable,
the maximum reasonably anticipated liability in respect thereof as determined by
the Person in good faith.
"Indebtedness" means, as to any Person, without duplication,
(a) all obligations of such Person for borrowed money, (b) all obligations of
such Person evidenced by bonds, debentures, notes or similar instruments, (c)
all obligations of such Person under conditional sale or other title retention
agreements relating to property or assets purchased by such Person, (d) all
obligations of such Person issued or assumed as the deferred purchase price of
property or services, (e) all Indebtedness of others secured by any Lien on
property owned or acquired by such Person, whether or not the obligations
secured thereby have been assumed, (f) all Guaranty Obligations of such Person
with respect to
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Indebtedness of others, (g) all capital lease obligations of such Person, (h)
all Attributable Indebtedness under Sale-Leaseback Transactions under which such
Person is the lessee and (i) all obligations of such Person as an account party
in respect of outstanding letters of credit (whether or not drawn) and bankers'
acceptances; provided, however, that Indebtedness shall not include (i) trade
accounts payable arising in the ordinary course of business and (ii) deferred
compensation; provided, further, that in the case of any obligation of such
Person which is recourse only to certain assets of such Person, the amount of
such Indebtedness shall be deemed to be equal to the lesser of the amount of
such Indebtedness or the value of the assets to which such obligation is
recourse as reflected on the balance sheet of such Person at the time of the
incurrence of such obligation; and provided, further, that the amount of any
Indebtedness described in clause (e) above shall be the lesser of the amount of
the Indebtedness or the fair market value of the property securing such
Indebtedness.
"Indemnified Liabilities" has the meaning set forth in Section
10.13.
"Indemnitees" has the meaning set forth in Section 10.13.
"Interest Coverage Ratio" means, at any date of determination,
for Borrower and its Restricted Subsidiaries, on a consolidated basis, the ratio
of (a) Annualized EBITDA to (b) Annualized Interest Expense.
"Interest Expense" means, with respect to any Person or any
income generating assets, for any period, an amount equal to, without
duplication, (a) all interest on Indebtedness of such Person or properly
allocable to such assets, and commitment and facility fees in respect thereof,
accrued (whether or not actually paid) during such period, (b) plus the net
amount accrued (whether or not actually paid) by such Person or properly
allocable to such assets pursuant to any interest rate protection agreement
during such period (or minus the net amount receivable (whether or not actually
received) by such Person or properly allocable to such assets during such
period), (c) minus the amortization of deferred financing fees recorded during
such period, (d) minus the amortization of any discount or plus the amortization
of any premium (determined as the difference between the present value and the
face amount of the subject Indebtedness) recorded during such period, and (e)
minus the amortization or plus the accretion recorded during such period of the
adjustment of the long-term Indebtedness of Broadband and its Subsidiaries to
its fair value as of the Effective Date.
"Interest Period" means, for each Eurodollar Rate Loan, (a)
initially, the period commencing on the date such Eurodollar Rate Loan is
disbursed or Continued as, or Converted into, such Eurodollar Rate Loan and (b)
thereafter, the period commencing on the last day of the preceding Interest
Period, and ending, in each case, on the earlier of (x) the scheduled maturity
date of such Loan, or (y) one, two, three, six, or subject to availability to
each Lender, 12 months thereafter; provided that:
(i) Any Interest Period that would otherwise end on a day that
is not a Business Day shall be extended to the next succeeding Business
Day unless such Business Day falls in another calendar month, in which
case such Interest Period shall end on the next preceding Business Day;
(ii) Any Interest Period which begins on the last Business Day
of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the calendar month at the
end of such Interest Period; and
(iii) Unless Administrative Agent otherwise consents, there
may not be more than ten (10) Interest Periods for Eurodollar Rate
Loans in effect at any time.
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"IRS" means the United States Internal Revenue Service.
"JPMorgan Chase" means JPMorgan Chase Bank.
"Laws" or "Law" means all international, foreign, federal,
state and local statutes, treaties, rules, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including, if consistent
therewith, the interpretation or administration thereof by any Governmental
Authority charged with the enforcement, interpretation or administration
thereof.
"Lender" means each lender from time to time party hereto,
and, subject to the terms and conditions of this Agreement, their respective
successors and assigns (but not any purchaser of a participation hereunder
unless otherwise a party to this Agreement).
"Lending Office" means, as to any Lender, the office or
offices of such Lender described as such on its Administrative Questionnaire, or
such other office or offices as such Lender may from time to time notify
Administrative Agent and Borrower.
"Leverage Ratio" means, at any date of determination, the
ratio of (a) Consolidated Total Indebtedness as of such date to (b) Annualized
EBITDA of Borrower and its Restricted Subsidiaries, on a consolidated basis.
"Lien" means any mortgage, pledge, hypothecation, assignment,
deposit arrangement (in the nature of compensating balances, cash collateral
accounts or security interests), encumbrance, lien (statutory or other), charge,
or preference, priority or other security interest (including any conditional
sale or other title retention agreement, any financing lease or Sale-Leaseback
Transaction having substantially the same economic effect as any of the
foregoing, and the filing of any financing statement under the Uniform
Commercial Code or comparable Laws of any jurisdiction), including the interest
of a purchaser of accounts receivable; provided that Liens shall not include
ordinary and customary contractual set off rights.
"Loan" has the meaning set forth in Section 2.01
(collectively, the "Loans").
"Loan Documents" means this Agreement, the Guarantee
Agreement, each Note, each Compliance Certificate, each fee letter and each
other instrument or agreement from time to time delivered by any Loan Party
pursuant to this Agreement.
"Loan Parties" means Borrower and each of its Subsidiaries
that is a party to a Loan Document.
"Loan Percentage" means, with respect to any Lender at any
time, the percentage which such Lender's Commitment then constitutes of the
aggregate Commitments (or, at any time after the Effective Date, the percentage
which the aggregate then unpaid principal amount of such Lender's Loans then
outstanding constitutes of the aggregate principal amount of the Loans then
outstanding).
"Material Acquisition" means any Acquisition (the "Subject
Acquisition") (i) made at a time when the Leverage Ratio is in excess of 4.5 to
1.0 or (ii) that has an Annualized Acquisition Cash Flow Value (as defined
below) for the period ended on the last day of the fiscal quarter most recently
ended that is greater than five percent (5%) of the Annualized EBITDA of
Borrower and its Restricted Subsidiaries, on a consolidated basis, for the same
period. The "Annualized Acquisition Cash Flow Value" is an amount equal to (a)
the Annualized EBITDA of the assets comprising the Subject Acquisition less (b)
the Annualized EBITDA of any assets disposed of by Borrower or any Restricted
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Subsidiary (other than to Borrower or any Restricted Subsidiary) in connection
with the Subject Acquisition.
"Material Adverse Effect" means any set of circumstances or
events which (a) has or would reasonably be expected to have a material adverse
effect upon the validity or enforceability against Borrower or any Guarantor of
any Loan Document or (b) has had or would reasonably be expected to have a
material adverse effect on the business, financial condition, assets or results
of operation of Borrower and its Restricted Subsidiaries taken as a whole,
excluding, in the case of this clause (b), any such set of circumstances or
events resulting from or arising in connection with changes in general economic,
regulatory or political conditions (it being understood that any changes in the
regulation specifically of the industries in which the Restricted Group operate
shall not constitute changes in general regulatory conditions for these
purposes).
"Material Disposition" means any Disposition (the "Subject
Disposition") (i) made at a time when the Leverage Ratio is in excess of 4.5 to
1.0 or (ii) that has an Annualized Disposition Cash Flow Value (as defined
below), for the period ended on the last day of the fiscal quarter most recently
ended that is greater than five percent (5%) of the Annualized EBITDA of
Borrower and its Restricted Subsidiaries, on a consolidated basis, for the same
period. The "Annualized Disposition Cash Flow Value" is an amount equal to (a)
the Annualized EBITDA of the assets comprising the Subject Disposition less (b)
the Annualized EBITDA of any assets acquired by Borrower or any Restricted
Subsidiary (other than from Borrower or any Restricted Subsidiary) in connection
with the Subject Disposition.
"Maturity Date" means the date which is one year after the
Effective Date.
"Merger Agreement" means that certain Agreement and Plan of
Merger dated as of December 19, 2001 by and among Borrower, Comcast Corporation,
AT&T Corp., Broadband and other related parties, as amended, supplemented or
otherwise modified in writing from time to time, subject to the terms of Section
4.01(c).
"Minimum Amount" means, with respect to each of the following
actions, the minimum amount and any multiples in excess thereof set forth
opposite such action:
"Moody's" means Moody's Investors Service, Inc., or its
successor, or if it is dissolved or liquidated or no longer performs the
functions of a securities rating agency, such other nationally recognized
securities rating agency agreed upon by Borrower and Administrative Agent and
approved by Required Lenders.
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"Multiemployer Plan" means any employee benefit plan of the
type described in Section 4001(a)(3) of ERISA.
"Net Cash Proceeds" means, with respect to any transaction, an
amount equal to the cash proceeds received by any Subject Entity from or in
respect of such transaction (including any cash proceeds received as interest or
similar income on, or other cash proceeds of, any noncash proceeds of any Asset
Sale), less (at the option of Borrower):
(a) any fees, costs and expenses reasonably incurred by any
Subject Entity in respect of such transaction;
(b) if such transaction is an Asset Sale, (i) any taxes
actually paid or reasonably estimated to be payable by any Subject
Entity (giving effect to the overall tax position of the Subject
Entities) in respect of such Asset Sale, (ii) the amount of all
Indebtedness secured by any assets subject to that Asset Sale and
subject to mandatory prepayment as a result of that Asset Sale, (iii)
the amount of any reserves established by the Subject Entities to fund
purchase price adjustments in respect of such Asset Sale and any
reserves to fund contingent liabilities payable by the Subject Entities
attributable to such Asset Sale, including, without limitation,
liabilities under any indemnification obligations and severance and
other employee termination costs associated with such Asset Sale, until
such time as such amounts are no longer reserved or such reserve is no
longer necessary (at which time any remaining amounts will become Net
Cash Proceeds), and (iv) amounts required to be paid at the closing of
such Asset Sale with respect to liabilities directly associated with
the assets that are the subject of such Asset Sale, including, without
limitation, trade payables and other accrued liabilities (to the extent
not already reflected in the amount of cash proceeds received by the
Subject Entities from or in respect of such Asset Sale); and
(c) if such transaction is an Asset Sale of cable assets
(other than a transaction identified on Schedule 2.06A), the amount of
the cash proceeds applied by the Subject Entities within 360 days of
the receipt thereof to the acquisition of additional cable assets (it
being understood that Borrower shall give Administrative Agent notice
of any election to so apply such cash proceeds).
The Net Cash Proceeds of any revolving credit or similar
facility shall be the net rather than the gross amount of financing obtained
thereunder.
"Notes" means the collective reference to any promissory note
evidencing Loans.
"Obligations" means all advances to, and debts, liabilities,
and obligations of, the Co-Borrowers arising under any Loan Document, whether
direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest that accrues after the commencement of any proceeding under
any Debtor Relief Laws by or against a Co-Borrower.
"Outstanding Obligations" means, as of any date, the sum of
the aggregate outstanding principal amount of all Loans.
"PBGC" means the Pension Benefit Guaranty Corporation or any
successor thereto established under ERISA.
"Permanent Facility" means the Credit Agreement, dated as of
the date hereof, among certain of the parties hereto.
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"Person" means any individual, trustee, corporation, general
partnership, limited partnership, limited liability company, joint stock
company, trust, unincorporated organization, bank, business association, firm,
joint venture or Governmental Authority.
"Plan" means any "employee pension benefit plan" (as such term
is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is
subject to Title IV of ERISA and is sponsored or maintained by Borrower or any
ERISA Affiliate or to which Borrower or any ERISA Affiliate contributes or has
an obligation to contribute, or in the case of a multiple employer plan (as
described in Section 4064(a) of ERISA) has made contributions at any time during
the immediately preceding five plan years.
"Reduction Event" means (i) any Asset Sale by a Subject
Entity, (ii) any issuance of Equity Interests by a Subject Entity in a capital
markets transaction (excluding any such issuance in the ordinary course of
business pursuant to any benefit, stock or other compensation plan for
employees, officers or directors), (iii) any incurrence of long-term
Indebtedness or similar obligations (including, without limitation, obligations
in connection with an Asset Monetization Transaction) in a capital markets
transaction or (iv) any establishment of a new syndicated bank credit facility
(other than to the extent used to refinance an existing bank credit facility),
or any increase in the amount available under any existing syndicated bank
credit facility, in each case after the date hereof.
"Reference Banks" means JPMorgan Chase and Citibank, N.A.
"Reference Statements" means the financial statements
described in Section 4(e).
"Register" has the meaning set forth in Section 2.07(b).
"Request for Extension of Credit" means, unless otherwise
specified herein, with respect to a Borrowing, Conversion or Continuation of
Loans, a written request substantially in the form of Exhibit B.
"Required Lenders" means, as of any date of determination,
Lenders (excluding any Lender that has failed to fund hereunder when the
applicable conditions precedent to such funding have been satisfied or waived in
accordance herewith, until such failure has been cured) holding more than 50%
of: (a) until the Effective Date, the Commitments and (b) after the Effective
Date, the aggregate unpaid principal amount of the Loans then outstanding.
"Requisite Notice" means a notice delivered in accordance with
Section 10.02.
"Requisite Time" means, with respect to any of the actions
listed below, the time and date set forth below opposite such action:
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"Responsible Officer" means, as to any Person, the president,
any vice president, the controller, the chief financial officer, the treasurer
or any assistant treasurer of such Person. Any document or certificate hereunder
that is signed by a Responsible Officer of a particular Loan Party shall be
conclusively presumed to have been authorized by all necessary corporate action
on the part of such Loan Party and such Responsible Officer shall be
conclusively presumed to have acted on behalf of such Loan Party.
"Restricted Group" means, collectively, Borrower and the
Restricted Subsidiaries.
"Restricted Subsidiary" means each Subsidiary of Borrower that
is not an Unrestricted Subsidiary.
"S&P" means Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc., or its successor, or if it is dissolved or
liquidated or no longer performs the functions of a securities rating agency,
such other nationally recognized securities rating agency agreed upon by
Borrower and Administrative Agent and approved by Required Lenders.
"Sale-Leaseback Transaction" means any arrangement whereby
Borrower or any Restricted Subsidiary shall sell or transfer any property, real
or personal, used or useful in its business, whether now owned or hereafter
acquired, and thereafter rent or lease property that it intends to use for
substantially the same purpose or purposes as the property sold or transferred.
"Significant Subsidiary" means any Restricted Subsidiary whose
Annualized EBITDA was greater than 5% of the Annualized EBITDA of Borrower and
its Restricted Subsidiaries, on a consolidated basis, for the period of two
fiscal quarters ended on the last day of the fiscal quarter most recently ended,
or whose assets comprised more than 5% of the total assets of Borrower and its
Restricted Subsidiaries, on a consolidated basis, as of the last day of the
fiscal quarter most recently ended.
"Subject Entity" means (i) prior to the Effective Date,
Borrower, Broadband, Comcast Cable Communications, Inc. and their respective
Subsidiaries and (ii) on and after the Effective Date, Borrower and its
Subsidiaries.
"Subsidiary" of a Person means a corporation, partnership,
joint venture, limited liability company or other business entity of which a
majority of the shares of securities or other interests having ordinary voting
power for the election of directors or other governing body (other than
securities or interests having such power only by reason of the happening of a
contingency) are at the time beneficially owned, directly or indirectly, through
one or more intermediaries, or both, by such Person. Unless otherwise specified,
all references to a "Subsidiary" or to "Subsidiaries" in this Agreement shall
refer to a Subsidiary or Subsidiaries of Borrower.
"Syndication Agent" has the meaning set forth in the
introductory paragraph hereto.
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"364-Day Agreement" means the 364-Day Revolving Credit
Agreement dated July 17, 2001, among Comcast Cable Communications, Inc., Bank of
America, N.A., as Administrative Agent, and the lenders party thereto.
"Threshold Amount" means $200,000,000.
"to the best knowledge of" means, when modifying a
representation, warranty or other statement of any Person, that the fact or
situation described therein is known by such Person (or, in the case of a Person
other than a natural Person, known by any officer of such Person) making the
representation, warranty or other statement, or, if such Person had exercised
ordinary care in performing his or its required duties, would have been known by
such Person (or, in the case of a Person other than a natural Person, would have
been known by an officer of such Person).
"Transactions" has the meaning set forth in Section 4(c).
"type" of Loan means (a) a Base Rate Loan or (b) a Eurodollar
Rate Loan.
"Unfunded Pension Liability" means the excess of a Plan's
benefit liabilities under Section 4001(a)(16) of ERISA, over the current value
of that Plan's assets, determined in accordance with the assumptions used for
funding the Plan pursuant to Section 412 of the Code for the applicable plan
year.
"Unrestricted Subsidiary" means any Subsidiary of Borrower
designated as an "Unrestricted Subsidiary" from time to time in accordance with
Section 6.13. Until so designated, each Subsidiary of Borrower shall be a
Restricted Subsidiary.
1.02 Use of Certain Terms.
(a) All terms defined in this Agreement shall have the defined
meanings when used in any certificate or other document made or delivered
pursuant hereto or thereto, unless otherwise defined therein.
(b) As used herein, unless the context requires otherwise, the
masculine, feminine and neuter genders and the singular and plural include one
another.
(c) The words "herein" and "hereunder" and words of similar
import when used in any Loan Document shall refer to the applicable Loan
Document as a whole and not to any particular provision thereof. The term
"including" is by way of example and not limitation. References herein to a
Section, subsection or clause shall, unless the context otherwise requires,
refer to the appropriate Section, subsection or clause in this Agreement.
(d) The term "or" is disjunctive; the term "and" is
conjunctive. The term "shall" is mandatory; the term "may" is permissive.
1.03 Accounting Terms. All accounting terms not specifically
or completely defined in this Agreement shall be construed in conformity with,
and all financial data required to be submitted by this Agreement shall be
prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time in the United States; provided, however, that for purposes of
determining compliance with the covenants set forth in Section 7.07, if there
are changes in GAAP after December 31, 2001 that materially affect the
calculation of the covenants in Section 7.07 in such a manner as to be
inconsistent with the intent of this Agreement, Administrative Agent and
Borrower shall negotiate in good faith to
16
determine such adjustments to the method of calculating compliance with Section
7.07 or related definitions as to make them consistent with the intent hereof.
Promptly upon Borrower and Administrative Agent reaching such agreement,
Administrative Agent shall notify Lenders of such adjustments, which shall be
conclusive unless Required Lenders object to such adjustments within 30 days of
receipt of notice. Each Compliance Certificate shall be prepared in accordance
with this Section 1.03, except for the exclusion of Unrestricted Subsidiaries
from the calculations therein. Notwithstanding anything to the contrary
contained herein, references herein to "Borrower and its Restricted Subsidiaries
on a consolidated basis" shall be deemed to refer to Borrower and its Restricted
Subsidiaries without taking into account the results or financial position of
any Unrestricted Subsidiary and without taking into account any interest of
Borrower or any of its Restricted Subsidiaries in any Unrestricted Subsidiary.
1.04 Rounding. Any financial ratios required to be maintained
by Borrower pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place
more than the number of places by which such ratio is expressed in this
Agreement and rounding the result up or down to the nearest number (with a
round-up if there is no nearest number) to the number of places by which such
ratio is expressed in this Agreement.
1.05 Exhibits and Schedules. All exhibits and schedules to
this Agreement, either as originally existing or as the same may from time to
time be supplemented, modified or amended, are incorporated herein by this
reference. A matter disclosed on any Schedule shall be deemed disclosed on all
Schedules.
1.06 References to Agreements and Laws. Unless otherwise
expressly provided herein, (a) references to agreements (including the Loan
Documents) and other contractual instruments shall include all amendments,
restatements, extensions, supplements and other modifications thereto (unless
prohibited by any Loan Document), and (b) references to any Law shall include
all statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such Law.
1.07 Pro Forma Calculations. For the purposes of calculating
Annualized EBITDA of Borrower and its Restricted Subsidiaries, on a consolidated
basis, and Annualized Interest Expense of Borrower and its Restricted
Subsidiaries, on a consolidated basis, for any period (a "Test Period"), (i) if
at any time from the period (a "Pro Forma Period") commencing on the first day
of such Test Period and ending on the date which is ten days prior to the date
of delivery of the Compliance Certificate in respect of such Test Period (or, in
the case of any pro forma calculation required to be made pursuant hereto in
respect of the designation of a Restricted Subsidiary as an Unrestricted
Subsidiary that is a Material Disposition or the designation of an Unrestricted
Subsidiary as a Restricted Subsidiary that is a Material Acquisition, ending on
the date such Material Disposition or Material Acquisition is consummated after
giving effect thereto), Borrower or any Restricted Subsidiary shall have made
any Material Disposition, the Annualized EBITDA for such Test Period shall be
reduced by an amount equal to the Annualized EBITDA (if positive) for such Test
Period attributable to the assets which are the subject of such Material
Disposition or increased by an amount equal to the Annualized EBITDA (if
negative) for such Test Period attributable to such assets, and Annualized
Interest Expense for such Test Period shall be reduced by an amount equal to the
Annualized Interest Expense for such Test Period attributable to any
Indebtedness of Borrower or any Restricted Subsidiary repaid, repurchased,
defeased or otherwise discharged in connection with such Material Disposition
(or, if the capital stock of any Restricted Subsidiary is sold (pursuant to a
merger or otherwise), the Annualized Interest Expense for such Test Period
directly attributable to the Indebtedness of such Restricted Subsidiary to the
extent Borrower and its continuing Restricted Subsidiaries are no longer liable
for such Indebtedness after such Material Disposition); (ii) if during such Pro
Forma Period Borrower or any Restricted Subsidiary shall have made a Material
Acquisition, Annualized EBITDA of Borrower and its Restricted Subsidiaries, on a
17
consolidated basis, and Annualized Interest Expense of Borrower and its
Restricted Subsidiaries, on a consolidated basis, for such Test Period shall be
calculated after giving pro forma effect thereto (including the incurrence or
assumption of any Indebtedness in connection therewith) as if such Material
Acquisition (and the incurrence or assumption of any such Indebtedness) occurred
on the first day of such Test Period; and (iii) if during such Pro Forma Period
any Person that subsequently became a Restricted Subsidiary or was merged with
or into Borrower or any Restricted Subsidiary since the beginning of such Pro
Forma Period shall have entered into any Material Disposition or Material
Acquisition that would have required an adjustment pursuant to clause (i) or
(ii) above if made by Borrower or a Restricted Subsidiary during such Pro Forma
Period, Annualized EBITDA of Borrower and its Restricted Subsidiaries, on a
consolidated basis, and Annualized Interest Expense of Borrower and its
Restricted Subsidiaries, on a consolidated basis, for such Test Period shall be
calculated after giving pro forma effect thereto as if such Material Disposition
or Material Acquisition occurred on the first day of such Test Period. For the
purposes of this section, whenever pro forma effect is to be given to a Material
Disposition or Material Acquisition, the amount of income or earnings related
thereto and the amount of Annualized Interest Expense associated with any
Indebtedness discharged or incurred in connection therewith, the pro forma
calculations shall be determined in good faith by a Responsible Officer of
Borrower. If any Indebtedness bears a floating rate of interest and the
incurrence or assumption thereof is being given pro forma effect, the Annualized
Interest Expense on such Indebtedness shall be calculated as if the rate in
effect on the last day of the relevant Pro Forma Period had been the applicable
rate for the entire relevant Test Period (taking into account any interest rate
protection agreement applicable to such Indebtedness if such interest rate
protection agreement has a remaining term in excess of 12 months). Comparable
adjustments shall be made in connection with any determination of Annualized
EBITDA.
SECTION 2
THE COMMITMENTS AND EXTENSIONS OF CREDIT
2.01 Loans. Subject to the terms and conditions set forth in
this Agreement, each Lender severally agrees to make a term loan (a "Loan") in
Dollars to each Co-Borrower on the Effective Date in an aggregate amount not to
exceed the amount of the Commitment of such Lender. The Loans may from time to
time be Eurodollar Loans or Base Rate Loans, as determined by each Co-Borrower
and notified to Administrative Agent in accordance with Sections 2.02 and 2.08.
2.02 Procedure for Borrowing. (a) The Co-Borrowers shall
request that Lenders make the Loans on the Effective Date by delivering a
Request for Extension of Credit therefor by Requisite Notice to Administrative
Agent not later than the Requisite Time therefor.
(b) Following receipt of the Request for Extension of Credit
referred to in Section 2.02(a), Administrative Agent shall promptly notify each
Lender thereof. Not later than 12:00 Noon, New York City time, on the Effective
Date each Lender shall make available to Administrative Agent at the
Administrative Agent's Office an amount in immediately available funds equal to
the Loan to be made by such Lender. Administrative Agent shall credit the
account of each Co-Borrower with the amount specified by it in the Request for
Extension of Credit delivered pursuant to Section 2.02(a) on the books of the
Administrative Agent's Office with the aggregate of the amounts made available
to Administrative Agent by Lenders in immediately available funds.
2.03 Repayment of Loans. Each Co-Borrower shall repay all
outstanding Loans made to it on the Maturity Date.
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2.04 Reduction or Termination of Commitments. Upon Requisite
Notice to Administrative Agent not later than the Requisite Time therefor, the
Co-Borrowers may at any time and from time to time, without premium or penalty,
permanently and irrevocably reduce the Commitments, in a Minimum Amount
therefor, or terminate the Commitments. Any such reduction or termination shall
be accompanied by payment of all accrued and unpaid ticking fees with respect to
the portion of the Commitments being reduced or terminated. Administrative Agent
shall promptly notify Lenders of any such request for reduction or termination
of the Commitments. Each Lender's Commitment shall be reduced pro rata by the
amount of such reduction.
2.05 Optional Prepayments. Upon Requisite Notice to
Administrative Agent not later than the Requisite Time therefor, each
Co-Borrower may at any time and from time to time voluntarily prepay Loans made
to it in part in the Minimum Amount therefor or in full without premium or
penalty. Administrative Agent will promptly notify each relevant Lender thereof
and of such Lender's percentage of such prepayment. Any prepayment of a
Eurodollar Rate Loan shall be accompanied by all accrued interest thereon,
together with the costs set forth in Section 3.05. Amounts prepaid on account of
the Loans may not be reborrowed.
2.06 Mandatory Prepayments and Commitment Reductions.
(a) In the event that any Subject Entity shall at any time, or
from time to time, after the date hereof receive any Net Cash Proceeds of any
Reduction Event in excess of $10,000,000, an amount equal to the largest
multiple $1,000,000 which does not exceed the aggregate amount of such Net Cash
Proceeds shall be applied promptly, without premium or penalty, to permanently
reduce (i) prior to the Effective Date, the Commitments and (ii) thereafter, the
Loans.
(b) Any such reduction of the Commitments or prepayment of the
Loans shall be made pro rata according to the respective Commitments or
outstanding principal amounts of the Loans then held by the Lenders. Amounts
prepaid on account of the Loans may not be reborrowed. The application of any
prepayment pursuant to this Section 2.06 shall be made, first, to Base Rate
Loans and, second, to Eurodollar Rate Loans. Each prepayment of the Loans under
Section 2.06 shall be accompanied by accrued interest to the date of such
prepayment on the amount prepaid.
2.07 Documentation of Loans.
(a) Upon the request of any Lender made through Administrative
Agent, a Lender's Loans may be evidenced by one or more Notes of each
Co-Borrower, instead of or in addition to its loan accounts or records. Each
such Lender may attach schedules to its Notes and endorse thereon the date,
amount and maturity of its Loans and payments with respect thereto. Any failure
so to record or any error in doing so shall not, however, limit or otherwise
affect the obligation of the Co-Borrowers to pay any amount owing with respect
to the Obligations.
(b) Administrative Agent shall maintain, at Administrative
Agent's Office, a register for the recordation of the names and addresses of
Lenders and the Commitments and Extensions of Credit of each Lender from time to
time (the "Register"). The Register shall be available for inspection by each
Co-Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice. Administrative Agent shall maintain the Register,
acting, solely for this administrative purpose only, as agent for each
Co-Borrower (it being acknowledged and agreed that Administrative Agent and each
Administrative Agent-Related Person, in such capacity, shall constitute
Indemnitees under Section 10.13).
(c) Administrative Agent shall record in the Register the
Commitment and Extensions of Credit from time to time of each Lender, and each
repayment or prepayment in respect thereof. Any
19
recordation shall be conclusive and binding on each Co-Borrower and each Lender,
absent manifest error; provided, however, that the failure to make any such
recordation, or any error in such recordation, shall not affect any Lender's
Commitment or Outstanding Obligations.
(d) Each Lender shall record on its internal loan accounts or
records (and may record on the Note(s) held by such Lender) the amount of each
Extension of Credit made by it and each payment in respect thereof; provided
that the failure to make any such recordation, or any error in such recordation,
shall not affect any Lender's Commitment or Outstanding Obligations; and
provided, further, that in the event of any inconsistency between the Register
and any Lender's records, the recordations in the Register shall govern, absent
manifest error.
(e) The Co-Borrowers, Administrative Agent and Lenders shall
deem and treat the Persons listed as Lenders in the Register as the holders and
owners of the corresponding Commitments and Extensions of Credit listed therein
for all purposes hereof, and no assignment or transfer of any such Commitment or
Extensions of Credit shall be effective, in each case, unless and until an
Assignment and Acceptance effecting the assignment or transfer thereof shall
have been accepted by Administrative Agent and recorded in the Register. Prior
to such recordation, all amounts owed with respect to the applicable Commitment
or Outstanding Obligations shall be owed to the Lender listed in the Register as
the owner thereof, and any request, authority or consent of any Person who, at
the time of making such request or giving such authority or consent, is listed
in the Register as a Lender shall be conclusive and binding on any subsequent
holder, assignee or transferee of the corresponding Commitments or Outstanding
Obligations.
2.08 Continuation and Conversion Option.
(a) Each Co-Borrower may irrevocably request a Conversion or
Continuation of Loans on any Business Day in a Minimum Amount therefor by
delivering a Request for Extension of Credit therefor by Requisite Notice to
Administrative Agent not later than the Requisite Time therefor. All Conversions
and Continuations shall constitute Base Rate Loans unless properly and timely
otherwise designated as set forth in the prior sentence.
(b) Unless the Co-Borrowers pay all amounts due under Section
3.05, if any, a Eurodollar Rate Loan may be Continued or Converted only on the
last day of the Interest Period for such Eurodollar Rate Loan. During the
existence of an Event of Default, Administrative Agent may (and upon the request
of the Required Lenders shall) prohibit Loans from being requested as, Converted
into, or Continued as Eurodollar Rate Loans, and Required Lenders may demand
that any or all of the then outstanding Eurodollar Rate Loans be Converted
immediately into Base Rate Loans.
(c) Administrative Agent shall promptly notify each relevant
Co-Borrower and Lenders of the interest rate applicable to any Eurodollar Rate
Loan upon determination of same. Administrative Agent shall from time to time
notify each Co-Borrower and Lenders of any change in JPMorgan Chase's prime rate
used in determining the Base Rate promptly following the public announcement of
such change.
2.09 Interest.
(a) Subject to subsection (b) below, and unless otherwise
specified herein, each Co-Borrower hereby promises to pay interest on the unpaid
principal amount of each Loan made to it (before and after default, before and
after maturity, before and after judgment and before and after the commencement
of any proceeding under any Debtor Relief Laws) from the date borrowed until
paid in full (whether by acceleration or otherwise) on each Applicable Payment
Date at a rate per annum equal to
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the interest rate determined in accordance with the definition of such type of
Loan, plus the Applicable Amount for such type of Loan.
(b) Beginning on the date that an Event of Default occurs
under Sections 8.01 or 8.02 and continuing until the date such Event of Default
no longer exists, each Co-Borrower hereby promises to pay interest on the unpaid
principal amount of each Loan made to it (before or after judgment and before
and after the commencement of any proceeding under any Debtor Relief Laws) at a
rate per annum equal to the Default Rate. In addition, if any amount payable by
a Co-Borrower under any Loan Document is not paid when due (without regard to
any applicable grace periods), such Co-Borrower hereby promises to pay interest
(after as well as before entry of judgment thereon to the extent permitted by
law) on such amount at a fluctuating interest rate per annum at all times equal
to the Default Rate to the fullest extent permitted by applicable Law. Accrued
and unpaid interest on past due amounts (including interest on past due
interest) shall be payable upon demand.
(c) On any Business Day, either Co-Borrower may call
Administrative Agent and request information as to the then current Eurodollar
Base Rate or Base Rate, and Administrative Agent shall provide such information.
2.10 Fees.
(a) Ticking Fee. Borrower shall pay to Administrative Agent,
on its own behalf and on behalf of Broadband, for the account of each Lender pro
rata a ticking fee equal to 0.125% per annum of such Lender's Commitments. The
ticking fee shall accrue at all times from the date of this Agreement until the
Effective Date and shall be payable on the earlier of the Effective Date and the
date the Commitments are terminated in accordance with the terms of this
Agreement.
(b) Other Fees. Borrower agrees to pay to Administrative
Agent, on its own behalf and on behalf of Broadband, the fees in the amounts and
on the dates previously agreed to in writing by Borrower and Administrative
Agent.
2.11 Computation of Interest and Fees. Computation of interest
on Base Rate Loans when the Base Rate is determined by JPMorgan Chase's "prime
rate" shall be calculated on the basis of a year of 365 or 366 days, as the case
may be, and the actual number of days elapsed. Computation of all other types of
interest and all fees shall be calculated on the basis of a year of 360 days and
the actual number of days elapsed. Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided that
any Loan that is repaid on the same day on which it is made shall bear interest
for one day.
2.12 Making Payments.
(a) Except as otherwise provided herein, all payments by a
Co-Borrower or any Lender hereunder shall be made to Administrative Agent at
Administrative Agent's Office not later than the Requisite Time for such type of
payment. All payments received after such Requisite Time shall be deemed
received on the next succeeding Business Day for purposes of the calculation of
interest and fees, but not for purposes of determining whether a Default has
occurred. All payments of principal and interest shall be made in immediately
available funds in Dollars. All payments by a Co-Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff.
(b) Upon satisfaction of any applicable terms and conditions
set forth herein, Administrative Agent shall promptly make any amounts received
in accordance with Section 2.12(a) available in like funds received as follows:
(i) if payable to a Co-Borrower, by crediting a deposit account
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designated from time to time by such Co-Borrower to Administrative Agent by
Requisite Notice, and (ii) if payable to any Lender, by wire transfer to such
Lender at its Lending Office. If such conditions are not so satisfied,
Administrative Agent shall return any funds it is holding to the Lenders making
such funds available, without interest.
(c) Subject to the definition of "Interest Period," if any
payment to be made by a Co-Borrower shall come due on a day other than a
Business Day, payment shall instead be considered due on the next succeeding
Business Day, and such extension of time shall be reflected in computing
interest and fees.
(d) Unless a Co-Borrower or any Lender has notified
Administrative Agent, prior to the Requisite Time any payment to be made by it
is due, that it does not intend to remit such payment, Administrative Agent may,
in its sole and absolute discretion, assume that such Co-Borrower or such
Lender, as the case may be, has timely remitted such payment and may, in its
sole and absolute discretion and in reliance thereon, make such payment
available to the Person entitled thereto. If such payment was not in fact
remitted to Administrative Agent in immediately available funds, then:
(i) If a Co-Borrower failed to make such payment, each Lender
shall forthwith on demand repay to Administrative Agent the amount of
such assumed payment made available to such Lender, together with
interest thereon in respect of each day from and including the date
such amount was made available by Administrative Agent to such Lender
to the date such amount is repaid to Administrative Agent at the
Federal Funds Rate; and
(ii) If any Lender failed to make such payment, Administrative
Agent shall be entitled to recover such corresponding amount on demand
from such Lender. If such Lender does not pay such corresponding amount
upon Administrative Agent's demand therefor, Administrative Agent
promptly shall notify the relevant Co-Borrower, and such Co-Borrower
shall pay such corresponding amount to Administrative Agent.
Administrative Agent also shall be entitled to recover interest on such
corresponding amount in respect of each day from the date such
corresponding amount was made available by Administrative Agent to a
Co-Borrower to the date such corresponding amount is recovered by
Administrative Agent, (A) from such Lender at a rate per annum equal to
the Federal Funds Rate, and (B) from such Co-Borrower, at a rate per
annum equal to the interest rate applicable to such Borrowing. Nothing
herein shall be deemed to relieve any Lender from its obligation to
fulfill its Commitment or to prejudice any rights which Administrative
Agent or a Co-Borrower may have against any Lender as a result of any
default by such Lender hereunder.
(e) If Administrative Agent or any Lender is required at any
time to return to a Co-Borrower, or to a trustee, receiver, liquidator,
custodian or any official under any proceeding under Debtor Relief Laws, any
portion of a payment made by such Co-Borrower, each Lender shall, on demand of
Administrative Agent, return its share of the amount to be returned, plus
interest thereon from the date of such demand to the date such payment is made
at a rate per annum equal to the Federal Funds Rate.
2.13 Funding Sources. Nothing in this Agreement shall be
deemed to obligate any Lender to obtain the funds for any Loan in any particular
place or manner or to constitute a representation by any Lender that it has
obtained or will obtain the funds for any Loan in any particular place or
manner.
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SECTION 3
TAXES, YIELD PROTECTION AND ILLEGALITY
3.01 Taxes.
(a) Any and all payments by a Co-Borrower to or for the account of
Administrative Agent or any Lender under any Loan Document shall be made free
and clear of and without deduction for any and all present or future taxes,
duties, levies, imposts, deductions, assessments, fees, withholdings or similar
charges, and all liabilities with respect thereto, excluding, in the case of
Administrative Agent and each Lender, taxes imposed on or measured by its net
income, and franchise taxes imposed on it, by the jurisdiction (or any political
subdivision thereof) under the Laws of which Administrative Agent or such
Lender, as the case may be, is organized or maintains a Lending Office (all such
non-excluded taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and liabilities being hereinafter referred to
as "Taxes"). If a Co-Borrower shall be required by any Laws to deduct any Taxes
from or in respect of any sum payable under any Loan Document to Administrative
Agent or any Lender, (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section), Administrative Agent and such
Lender receive an amount equal to the sum it would have received had no such
deductions been made, (ii) such Co-Borrower shall make such deductions, (iii)
such Co-Borrower shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable Laws, and (iv) within
30 days after the date of such payment, such Co-Borrower shall furnish to
Administrative Agent (who shall forward the same to such Lender) the original or
a certified copy of a receipt evidencing payment thereof.
(b) In addition, each Co-Borrower agrees to pay any and all present or
future stamp, court or documentary taxes and any other excise or property taxes
or charges or similar levies which arise from any payment made by it under any
Loan Document or from the execution, delivery, performance, enforcement or
registration of, or otherwise with respect to, any Loan Document (hereinafter
referred to as "Other Taxes").
(c) If a Co-Borrower shall be required to deduct or pay any Taxes or Other
Taxes from or in respect of any sum payable under any Loan Document to
Administrative Agent or any Lender, such Co-Borrower shall also pay to
Administrative Agent or such Lender such additional amount that Administrative
Agent or such Lender specifies as necessary to preserve the after-tax yield
(after factoring in all taxes, including taxes imposed on or measured by net
income) that Administrative Agent or such Lender would have received if such
Taxes or Other Taxes had not been imposed.
(d) Each Co-Borrower agrees to indemnify Administrative Agent and each
Lender for the full amount of Taxes and Other Taxes (including any Taxes or
Other Taxes imposed or asserted by any jurisdiction on amounts payable under
this Section) paid by Administrative Agent and such Lender, amounts payable
under Section 3.01(c) and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto.
(e) Notwithstanding anything to the contrary contained in this Section
3.01, all obligations of each Co-Borrower to any Lender under this Section 3.01
shall be subject to, and conditioned upon such Lender's compliance with its
obligations, if any, under, Section 10.20.
3.02 Illegality. If any Lender determines that any Laws have made it
unlawful, or that any Governmental Authority has asserted that it is unlawful,
for such Lender or its applicable Lending Office to make, maintain or fund
Eurodollar Rate Loans, or materially restricts the authority of such
23
Lender to purchase or sell, or to take deposits of, Dollars in the applicable
offshore interbank market, or to determine or charge interest rates based upon
the Eurodollar Rate, then, on notice thereof by such Lender to each Co-Borrower
through Administrative Agent, the obligation of such Lender to make Eurodollar
Rate Loans shall be suspended until such Lender notifies Administrative Agent
and each Co-Borrower that the circumstances giving rise to such determination no
longer exist. Upon receipt of such notice, each Co-Borrower shall, upon demand
from such Lender (with a copy to Administrative Agent), prepay or Convert all
Eurodollar Rate Loans of such Lender made to such Co-Borrower, either on the
last day of the Interest Period thereof, if such Lender may lawfully continue to
maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender
may not lawfully continue to maintain such Eurodollar Rate Loans. Each Lender
agrees to designate a different Lending Office if such designation will avoid
the need for such notice and will not, in the good faith judgment of such
Lender, otherwise be materially disadvantageous to such Lender.
3.03 Inability to Determine Eurodollar Rates. If, in connection with any
Request for Extension of Credit involving any Eurodollar Rate Loan, (a)
Administrative Agent determines that (i) deposits in Dollars are not being
offered to banks in the applicable offshore dollar market for the applicable
amount and Interest Period of the requested Eurodollar Rate Loan or (ii)
adequate and reasonable means do not exist for determining the underlying
interest rate for such Eurodollar Rate Loan, or (b) Required Lenders determine
that such underlying interest rate does not adequately and fairly reflect the
cost to Lenders of funding such Eurodollar Rate Loan, Administrative Agent will
promptly notify each Co-Borrower and all Lenders. Thereafter, the obligation of
Lenders to make or maintain such Eurodollar Rate Loan shall be suspended until
Administrative Agent revokes such notice. Upon receipt of such notice, each
Co-Borrower may revoke any pending request for a Borrowing of Eurodollar Rate
Loans or, failing that, be deemed to have converted such request into a request
for a Borrowing of Base Rate Loans in the amount specified therein.
3.04 Increased Cost and Reduced Return; Capital Adequacy.
(a) If any Lender determines that the adoption of any Law or any change in
any Law or in the interpretation thereof effective after the date hereof:
(i) Subjects such Lender to any tax, duty, or other charge with
respect to any Eurodollar Rate Loans or its obligation to make Eurodollar
Rate Loans, or changes the basis on which taxes are imposed on any amounts
payable to such Lender under this Agreement in respect of any Eurodollar
Rate Loans;
(ii) Imposes or modifies any reserve, special deposit, or similar
requirement (other than the reserve requirement utilized in the
determination of the Eurodollar Rate) relating to any extensions of credit
or other assets of, or any deposits with or other liabilities or
commitments of, such Lender (including its Commitment); or
(iii) Imposes on such Lender or on the offshore interbank market any
other condition affecting this Agreement or any of such extensions of
credit or liabilities or commitments;
and the result of any of the foregoing is to increase the cost to such Lender of
making, Converting into, Continuing, or maintaining any Eurodollar Rate Loans or
to reduce any sum received or receivable by such Lender under this Agreement
with respect to any Eurodollar Rate Loans, then from time to time upon demand of
Lender (with a copy of such demand to Administrative Agent), each Co-Borrower
shall pay to such Lender such additional amounts attributable to such
Co-Borrower as will compensate such Lender for such increased cost or reduction.
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(b) If any Lender determines that the adoption of any Law or any change in
any Law or in the interpretation thereof effective after the date hereof has the
effect of reducing the rate of return on the capital of such Lender or
compliance by such Lender (or its Lending Office) or any corporation controlling
such Lender as a consequence of such Lender's obligations hereunder (taking into
consideration its policies with respect to capital adequacy and such Lender's
desired return on capital), then from time to time upon demand of such Lender
(with a copy to Administrative Agent), each Co-Borrower shall pay to such Lender
such additional amounts attributable to such Co-Borrower as will compensate such
Lender for such reduction.
3.05 Breakfunding Costs. Subject to Section 3.06(a), upon demand of any
Lender (with a copy to Administrative Agent) from time to time, each Co-Borrower
shall promptly compensate such Lender for and hold such Lender harmless from any
actual loss, cost or expense incurred by it as a result of:
(a) Any Continuation, Conversion, payment or prepayment by such
Co-Borrower of any Eurodollar Rate Loan on a day other than the last day of the
Interest Period for such Eurodollar Rate Loan (whether voluntary, mandatory,
automatic, by reason of acceleration or otherwise); or
(b) Any failure by such Co-Borrower (for a reason other than the failure
of such Lender to make a Eurodollar Rate Loan) to prepay, borrow, Continue or
Convert any Eurodollar Rate Loan on the date or in the amount notified by such
Co-Borrower;
excluding any loss of anticipated profits but including any loss or expense
arising from the liquidation or reemployment of funds obtained by it to maintain
such Loan or from fees payable to terminate the deposits from which such funds
were obtained.
3.06 Matters Applicable to all Requests for Compensation.
(a) A certificate of Administrative Agent or any Lender claiming
compensation under this Section 3 and setting forth the additional amount or
amounts to be paid to it hereunder shall be conclusive in the absence of clearly
demonstrable error; provided that such certificate (i) sets forth with
reasonable specificity the calculation of the amount to be paid, (ii) states
that Administrative Agent or such Lender, as applicable, is treating
substantially all similarly situated borrowers in a manner that is consistent
with the treatment afforded the Co-Borrowers hereunder, (iii) is delivered
within 90 days of the later of the date of the event giving rise to such
compensation and the date Administrative Agent or such Lender knew or, with the
exercise of reasonable care, should have known of the requirements for such
compensation, and (iv) confirms (in the case of a claim for compensation under
Section 3.01 or Section 3.04) that either a change in the Administrative Agent's
Office or Lending Office, as the case may be, of Administrative Agent or such
Lender, as the case may be, would not have eliminated the request for
compensation or that such change would have been otherwise disadvantageous to
Administrative Agent or such Lender, as the case may be. In determining the
amount of such compensation, Administrative Agent or any Lender may use any
reasonable averaging and attribution methods.
(b) Upon any Lender becoming prohibited from making, maintaining or
funding Eurodollar Rate Loans pursuant to Section 3.02, or upon any Lender
making a claim for compensation under Section 3.01 or Section 3.04, Borrower may
remove and replace such Lender in accordance with Section 10.21.
3.07 Survival. All of the Co-Borrowers' obligations under this Section 3
shall survive termination of the Commitments and payment in full of all
Obligations.
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SECTION 4
CONDITIONS PRECEDENT TO EXTENSIONS OF CREDIT
The agreement of each Lender to make the Extension of Credit requested to
be made by it is subject to the satisfaction, on or before March 31, 2003 of the
conditions precedent set forth in this Section 4:
(a) Unless waived by all Lenders, receipt by the Administrative Agent of
each of the following, each of which shall be originals or facsimiles (followed
promptly by originals) unless otherwise specified, each properly executed by a
Responsible Officer of the applicable Loan Party, each (other than the items
listed in (i)(A) below, which shall be delivered on or before the date of this
Agreement) dated on, or in the case of third-party certificates, recently
before, the Effective Date and each in form and substance satisfactory to
Administrative Agent and its legal counsel:
(i) Executed counterparts of (A) this Agreement, executed and
delivered by each Co-Borrower, each Agent and each Person listed on
Schedule 2.01 and (b) the Guarantee Agreement, executed and delivered by
each Guarantor;
(ii) Such certificates of resolutions or other action, incumbency
certificates and/or other certificates of Responsible Officers of each
Loan Party as Administrative Agent may request to establish the identities
of and verify the authority and capacity of each Responsible Officer
thereof authorized to act as a Responsible Officer thereof;
(iii) Such evidence as Administrative Agent may request to verify
that each Loan Party is duly organized or formed, validly existing, in
good standing and qualified to engage in business in each jurisdiction in
which it is required to be qualified to engage in business, including
certified copies of its organizational documents, certificates of good
standing and/or qualification to engage in business;
(iv) A certificate signed by a Responsible Officer of Borrower
certifying (A) that the conditions specified in Sections 4.01(j) and (k)
have been satisfied, (B) that there has been no event or circumstance
since the date of the Reference Statements which has a Material Adverse
Effect, and (C) as to the Debt Ratings as of the Effective Date;
(v) An opinion of counsel to Borrower in form and substance
reasonably satisfactory to Administrative Agent; and
(vi) Such other customary certificates, documents or opinions as
Administrative Agent or Required Lenders reasonably may require.
(b) Any fees (including, without limitation, the ticking fee) required to
be paid on or before the Effective Date shall have been paid.
(c) Prior to or substantially simultaneously with the making of such
initial Extension of Credit, Comcast Corporation and Broadband shall have merged
(the "Merger") into separate, wholly-owned subsidiaries of Borrower in
accordance with the terms of the Merger Agreement, the other transactions
contemplated by the Merger Agreement (together with the Merger, the
"Transactions") shall have been consummated in accordance with the terms of the
Merger Agreement, and no provision of the Merger Agreement shall have been
waived, amended, supplemented or otherwise modified in any manner which is
materially adverse to the interests of the Lenders.
26
(d) All material governmental and third party approvals necessary in
connection with the Transactions and the financing contemplated hereby shall
have been obtained and be in full force and effect, and all applicable waiting
periods shall have expired without any action being taken or threatened by any
competent authority that would restrain, prevent or otherwise impose materially
adverse conditions on the Transactions or the financing contemplated hereby.
(e) Lenders shall have received (i) satisfactory audited consolidated
financial statements of Comcast Cable Communications, Inc. and its Subsidiaries
and of AT&T Broadband Group and its Subsidiaries, in each case for the two most
recent fiscal years ended prior to the Effective Date as to which such financial
statements are available and (ii) satisfactory unaudited interim consolidated
financial statements of Comcast Cable Communications, Inc. and its Subsidiaries
and of AT&T Broadband Group and its Subsidiaries, in each case for each
quarterly period ended subsequent to the date of the latest financial statements
delivered pursuant to clause (i) of this paragraph as to which such financial
statements are available.
(f) Borrower shall have delivered a satisfactory pro forma consolidated
balance sheet of (i) Borrower and its subsidiaries and (ii) the Restricted
Group, in each case as at the date of the most recent consolidated balance sheet
delivered pursuant to subsection (e) above, adjusted to give effect to the
consummation of the Transactions and the financing thereof as if such
transactions had occurred on such date.
(g) (i) The Existing Comcast Facilities shall have been duly amended in a
satisfactory manner (which shall include extending the commitment period of the
364-Day Agreement for an additional 364 days and conforming certain terms and
conditions of the Existing Comcast Facilities, including covenant and pricing
provisions, with the terms of the Permanent Facility) pursuant to amendments
executed and delivered on or prior to the date of this Agreement, and the
facilities provided for thereunder shall be fully available to Comcast Cable
Communications, Inc. in amounts satisfactory to the Agents, and (ii) the
Co-Borrowers shall have entered into the Permanent Facility substantially
contemporaneously with entering into this Agreement, and the facilities provided
for thereunder shall be fully available to the Co-Borrowers.
(h) The organizational and capital structure of Borrower and its
Subsidiaries, including the liabilities of the Subsidiaries of Borrower, shall
be substantially as described in the Confidential Information Memorandum dated
March, 2002.
(i) Borrower's Debt Rating, after giving effect to the consummation of the
Transactions and the financing thereof, shall have been rated BBB- or better by
S&P and Baa3 or better by Moody's.
(j) The representations and warranties made by Borrower herein, or which
are contained in any certificate, document or financial or other statement
furnished at any time under or in connection herewith or therewith, shall be
correct in all material respects on and as of the Effective Date.
(k) No Default or Event of Default shall have occurred and be continuing.
(l) Unless waived by Administrative Agent, Borrower shall have paid all
Attorney Costs of Administrative Agent to the extent invoiced prior to or on the
Effective Date.
(m) Administrative Agent shall have timely received a Request for
Extension of Credit by Requisite Notice by the Requisite Time therefor.
(n) Such Extension of Credit shall be permitted by applicable Laws.
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SECTION 5
REPRESENTATIONS AND WARRANTIES
Borrower represents and warrants to Administrative Agent and Lenders that
as of the Effective Date:
5.01 Existence and Qualification; Power; Compliance with Laws. Each of
Borrower and its Restricted Subsidiaries (a) is a corporation, partnership or
limited liability company duly organized or formed, validly existing and in good
standing under the Laws of the state of its organization, (b) has the power and
authority and the legal right to own, lease and operate its properties and to
conduct its business, (c) is duly qualified and in good standing under the Laws
of each jurisdiction where its ownership, lease or operation of its properties
or the conduct of its business requires such qualification, except to the extent
that the failure to be so qualified and in good standing does not have a
Material Adverse Effect, and (d) is in compliance with all Laws, except to the
extent that noncompliance does not have a Material Adverse Effect.
5.02 Power; Authorization; Enforceable Obligations. Each Loan Party has
the power and authority and the legal right to make, deliver and perform each
Loan Document to which it is a party, and has taken all necessary action to
authorize the execution, delivery and performance of each Loan Document to which
it is a party. Each Co-Borrower has the power and authority and the legal right
to borrow hereunder and has taken all necessary action to authorize the
Extensions of Credit on the terms and conditions of this Agreement. Except for
such consents, authorizations, filings or other acts which have been duly made
or obtained and are in full force and effect, no consent or authorization of,
filing with, or other act by or in respect of any Governmental Authority is
required in connection with the Extensions of Credit hereunder or with the
execution, delivery, performance, validity or enforceability of this Agreement
or any of the other Loan Documents. Each Loan Document has been duly executed
and delivered on behalf of each Loan Party party thereto, and constitutes a
legal, valid and binding obligation of each Loan Party party thereto,
enforceable against each such Loan Party in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other Laws
affecting creditors' rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.
5.03 No Legal Bar. The execution, delivery, and performance by each Loan
Party of the Loan Documents to which it is a party do not and will not (a)
violate or conflict with, or result in a breach of, or require any consent under
(i) such Loan Party's organizational documents, (ii) any applicable Laws which
has a Material Adverse Effect, or (iii) any Contractual Obligation, license or
franchise of Borrower or any of its Restricted Subsidiaries or by which any of
them or any of their property is bound or subject which has a Material Adverse
Effect, (b) constitute a default under any such Contractual Obligation, license
or franchise which has a Material Adverse Effect or (c) result in, or require,
the creation or imposition of any Lien on any of the properties of Borrower or
any of its Restricted Subsidiaries which is not permitted hereby.
5.04 Financial Statements; No Material Adverse Effect.
(a) The Reference Statements (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein, and (ii) fairly present the financial condition of the
Guarantors and other Persons covered thereby and their respective consolidated
Subsidiaries as of the date thereof and their results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein.
28
(b) From December 31, 2001 to the Effective Date, there has been no event
or circumstance which has a Material Adverse Effect.
5.05 Litigation. No litigation, investigation or proceeding of or before
an arbitrator or Governmental Authority is pending or, to the best knowledge of
Borrower, threatened by or against Borrower or any of its Restricted
Subsidiaries or against any of their properties or revenues that is reasonably
likely to be determined adversely, and, if so adversely determined, has a
Material Adverse Effect.
5.06 No Default. Neither Borrower nor any of its Restricted Subsidiaries
is in default under or with respect to any Contractual Obligation, license or
franchise which has a Material Adverse Effect, and no Default or Event of
Default has occurred and is continuing or will result from the execution and
delivery of this Agreement or any of the other Loan Documents, or the making of
the Extensions of Credit hereunder.
5.07 Authorizations. Borrower and its Restricted Subsidiaries possess all
licenses, permits, franchises, consents, approvals, and other authorities
required to be issued by Governmental Authorities that are necessary or required
in the conduct of their businesses, all of which are valid, binding,
enforceable, and subsisting without any defaults thereunder, other than any
failures to possess or defaults that do not have a Material Adverse Effect.
5.08 Taxes. Borrower and its Restricted Subsidiaries have filed all tax
returns which are required to be filed, and have paid, or made provision for the
payment of, all taxes with respect to the periods, property or transactions
covered by said returns, or pursuant to any assessment received by Borrower or
its affected Restricted Subsidiaries, except such taxes, if any, as are being
contested in good faith by appropriate proceedings and as to which adequate
reserves have been established and maintained in accordance with GAAP, and,
except for the failure to file tax returns and/or to pay taxes which failures do
not, in the aggregate, have a Material Adverse Effect.
5.09 Margin Regulations; Investment Company Act; Public Utility Holding
Company Act.
(a) Neither Co-Borrower is engaged or will engage, principally or as one
of its important activities, in the business of extending credit for the purpose
of "purchasing" or "carrying" "margin stock" within the respective meanings of
each of the quoted terms under Regulation U of the Board of Governors of the
Federal Reserve System as now and from time to time hereafter in effect. No part
of the proceeds of any Extensions of Credit hereunder will be used for
"purchasing" or "carrying" "margin stock" as so defined in a manner which
violates, or which would be inconsistent with, the provisions of Regulations T,
U, or X of such Board of Governors.
(b) Neither Borrower nor any of its Restricted Subsidiaries (i) is a
"holding company," or a "subsidiary company" of a "holding company," or an
"affiliate" of a "holding company" or of a "subsidiary company" of a "holding
company," within the meaning of the Public Utility Holding Company Act of 1935,
or (ii) is or is required to be registered as an "investment company" under the
Investment Company Act of 1940.
5.10 ERISA Compliance.
(a) Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other federal or state Laws. Each
Plan that is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS or an application for such a
29
letter is currently being processed by the IRS (or will be filed before the end
of any applicable remedial amendment period under Section 401(b) of the Code)
with respect thereto and, to the best knowledge of Borrower, nothing has
occurred which would prevent, or cause the loss of, such qualification. Borrower
and each ERISA Affiliate have made all required contributions to each Plan
subject to Section 412 of the Code, and no application for a funding waiver or
an extension of any amortization period pursuant to Section 412 of the Code has
been made with respect to any Plan.
(b) There are no pending or, to the best knowledge of Borrower, threatened
claims, actions or lawsuits, or action by any Governmental Authority, with
respect to any Plan that has a Material Adverse Effect. There has been no
non-exempt prohibited transaction (within the meaning of Section 401 of ERISA)
or violation of the fiduciary responsibility rules of ERISA with respect to any
Plan that has a Material Adverse Effect.
(c) (i) No ERISA Event has occurred or is reasonably expected to occur
which has a Material Adverse Effect; (ii) no Plan has any Unfunded Pension
Liability; (iii) neither Borrower nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability under Title IV of ERISA with respect
to any Plan (other than premiums due and not delinquent under Section 4007 of
ERISA); (iv) neither Borrower nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability (and no event has occurred which,
with the giving of notice under Section 4219 of ERISA, would result in such
liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer
Plan; and (v) neither Borrower nor any ERISA Affiliate has engaged in a
transaction that could be subject to Sections 4069 or 4212(c) of ERISA.
5.11 Assets; Liens. Borrower and its Restricted Subsidiaries own, or
possess the right to use, all properties and assets, including without
limitation, trademarks, trade names, copyrights, patents, patent rights,
franchises, licenses and other intangible assets, that are used in the conduct
of their respective businesses as now operated, and none of such properties and
assets, to the best knowledge of Borrower, conflicts with the valid ownership or
other right of use of any other Person to the extent that such failure to own or
possess or conflict has a Material Adverse Effect. None of such properties or
assets is subject to any Lien, except as permitted in Section 7.01.
5.12 Environmental Compliance. Borrower and its Restricted Subsidiaries
are in compliance with Environmental Laws except to the extent that
noncompliance does not have a Material Adverse Effect.
5.13 Use of Proceeds. The Co-Borrowers will use the proceeds of Extensions
of Credit to refinance existing Indebtedness (including Indebtedness to AT&T
Corp. and its Affiliates) and other obligations of Borrower and its Subsidiaries
required to be repaid or retired in connection with the Transactions (and to
make distributions required in connection with the Transactions) and to pay fees
and expenses incurred in connection with the Transactions and the financing
thereof.
5.14 Disclosure. The statements, information, reports, representations and
warranties made by the Loan Parties in the Loan Documents or furnished to
Administrative Agent or the Lenders in connection with the Loan Documents, taken
as a whole, do not contain any untrue statement of a material fact.
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SECTION 6
AFFIRMATIVE COVENANTS
On and after the Effective Date, and so long as any Obligation remains
unpaid or unperformed, or any portion of the Commitments remains outstanding,
Borrower shall, and shall (except in the case of Borrower's reporting
covenants), cause each Restricted Subsidiary to:
6.01 Financial Statements. Deliver to Administrative Agent and Lenders, in
form and detail satisfactory to Administrative Agent:
(a) As soon as available, but in any event within 105 days (in the case of
clause (i) below) or 120 days (in the case of clause (ii) below) after the end
of each fiscal year of Borrower ending after the Effective Date, consolidated
balance sheets as at the end of such fiscal year and related consolidated
statements of income and cash flows for such fiscal year of (i) Borrower and its
consolidated Subsidiaries and (ii) the Restricted Group, setting forth in each
case in comparative form the figures for the previous fiscal year, all in
reasonable detail, audited and accompanied by a report and opinion of
independent certified public accountants of nationally recognized standing
reasonably acceptable to Administrative Agent, which report and opinion shall
not be subject to any qualifications or exceptions as to the scope of the audit
nor to any qualifications or exceptions not reasonably acceptable to
Administrative Agent;
(b) As soon as available, but in any event within 60 days after the end of
each of the first three fiscal quarters of each fiscal year of Borrower ending
after the Effective Date, consolidated balance sheets as at the end of such
fiscal quarter, and related consolidated statements of income and cash flows for
such fiscal quarter and for the portion of Borrower's fiscal year then ended, of
(i) Borrower and its consolidated Subsidiaries and (ii) the Restricted Group,
setting forth in each case in comparative form the figures for the corresponding
fiscal quarter of the previous fiscal year and the corresponding portion of the
previous fiscal year, all in reasonable detail and certified by a Responsible
Officer of Borrower as fairly presenting the financial condition, results of
operations and cash flows of Borrower and its consolidated Subsidiaries, or of
the Restricted Group, as applicable, in accordance with GAAP, subject only to
pro forma adjustments and normal year-end audit adjustments, except for the
financial statements of the Restricted Group, which will be in accordance with
GAAP except for the exclusion of the Unrestricted Subsidiaries; and
(c) If financial statements with respect to the 2002 fiscal year are not
delivered pursuant to Section 6.01(a), then, as soon as available, but in any
event within 105 days (in the case of clause (i) below) or 120 days (in the case
of clause (ii) below) after the end of such fiscal year, consolidated balance
sheets as at the end of such fiscal year and related consolidated statements of
income and cash flows for such fiscal year of (i) Comcast Cable Communications,
Inc. and its consolidated Subsidiaries and (ii) AT&T Broadband Group and its
consolidated Subsidiaries, setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail, audited and
accompanied by a report and opinion of independent certified public accountants
of nationally recognized standing reasonably acceptable to Administrative Agent,
which report and opinion shall not be subject to any qualifications or
exceptions as to the scope of the audit nor to any qualifications or exceptions
not reasonably acceptable to Administrative Agent.
6.02 Certificates, Notices and Other Information. Deliver to
Administrative Agent in form and detail satisfactory to Administrative Agent,
with sufficient copies for each Lender:
31
(a) No later than the date required for the delivery of the financial
statements referred to in Sections 6.01(a) and (b), a duly completed Compliance
Certificate signed by a Responsible Officer of Borrower, which Compliance
Certificate shall set forth the necessary adjustments to exclude the
Indebtedness and EBITDA attributed to Unrestricted Subsidiaries from the
calculations set forth therein and shall give pro forma effect to Material
Acquisitions and Material Dispositions in accordance with Section 1.07;
(b) Promptly after the same are available, copies of all annual, regular,
periodic and special reports and registration statements which Borrower may file
or be required to file with the Securities and Exchange Commission under
Sections 13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise
required to be delivered to Administrative Agent pursuant hereto;
(c) Promptly after Borrower obtaining knowledge of the occurrence thereof,
notice of any Default or Event of Default specifying the nature thereof and what
action Borrower has taken, is taking or proposes to take with respect thereto;
(d) Promptly after Borrower obtaining knowledge of the commencement
thereof, notice of any litigation, investigation or proceeding affecting
Borrower or any of its Restricted Subsidiaries where the amount involved exceeds
the Threshold Amount, or in which injunctive relief or similar relief is sought,
which relief, if granted, has a Material Adverse Effect;
(e) Promptly after Borrower obtaining knowledge of the occurrence thereof,
notice of any ERISA Event;
(f) Promptly after Borrower obtaining knowledge of the announcement
thereof, notice of any announcement by Moody's or S&P of any change in a Debt
Rating; and
(g) Promptly after such request, such other data and information as from
time to time may be reasonably requested by Administrative Agent or any Lender
through Administrative Agent.
6.03 Payment of Taxes. Pay and discharge when due all taxes, assessments
and governmental charges or levies imposed on it or on its income or profits or
any of its property, except for any such tax, assessment, charge or levy which
is being contested in good faith and by appropriate proceedings, if adequate
reserves with respect thereto are maintained on its books in accordance with
GAAP, and except, for such payments which, if not paid, do not in the aggregate,
have a Material Adverse Effect.
6.04 Preservation of Existence. Preserve and maintain its existence,
licenses, permits, rights, franchises and privileges necessary or desirable in
the normal conduct of its business, except where failure to do so does not have
a Material Adverse Effect, and except that nothing in this Section 6.04 shall
prohibit any transaction permitted by Section 7.03.
6.05 Maintenance of Properties. Maintain, preserve and protect all of its
material properties and equipment necessary in the operation of its business in
good order and condition, subject to wear and tear in the ordinary course of
business, except to the extent that the failure to do so does not have a
Material Adverse Effect.
6.06 Maintenance of Insurance. Maintain liability and casualty insurance
with financially sound and reputable insurance companies not Affiliates of
Borrower in such amounts with such deductibles and against such risks as is
customary for similarly situated businesses, except to the
32
extent Borrower or such Restricted Subsidiary maintains reasonable
self-insurance with respect to such risks.
6.07 Compliance With Laws.
(a) Comply with the requirements of all applicable Laws and orders of any
Governmental Authority, noncompliance with which has a Material Adverse Effect.
(b) Conduct its operations and keep and maintain its property in
compliance with all Environmental Laws, noncompliance with which has a Material
Adverse Effect.
6.08 Inspection Rights. At any time during regular business hours, upon
reasonable notice, and as often as reasonably requested, but subject to Section
10.17, permit Administrative Agent or any Lender, or any employee, agent or
representative thereof, to examine (and during the existence of an Event of
Default, make copies and abstracts from) the records and books of account of
Borrower and its Restricted Subsidiaries and to visit and inspect their
properties and to discuss their affairs, finances and accounts with any of their
officers and key employees.
6.09 Keeping of Records and Books of Account. Keep adequate records and
books of account reflecting all material financial transactions in conformity
with GAAP, consistently applied, and in material conformity with all applicable
requirements of any Governmental Authority having regulatory jurisdiction over
Borrower or the applicable Restricted Subsidiary.
6.10 Compliance with ERISA. Cause, and cause each of its ERISA Affiliates
to (a) maintain each Plan in compliance in all material respects with the
applicable provisions of ERISA, the Code and other federal or state law; (b)
cause each Plan which is qualified under Section 401(a) of the Code to maintain
such qualification; and (c) make all required contributions to any Plan subject
to Section 412 of the Code; provided that this Section 6.10 shall not prohibit
Borrower and its ERISA Affiliates from terminating any Plan to the extent
permitted by ERISA, the Code, and other applicable law or if such termination
does not have a Material Adverse Effect.
6.11 Compliance With Agreements. Promptly and fully comply with all
Contractual Obligations to which any one or more of them is a party, except for
any such Contractual Obligations (a) then being contested or intended to be
timely contested by any of them in good faith by appropriate proceedings, or (b)
the failure to comply with which does not have a Material Adverse Effect.
6.12 Use of Proceeds. Use the proceeds of Extensions of Credit as
represented herein.
6.13 Designation of Unrestricted Companies. So long as no Default or Event
of Default exists or arises as a result thereof and subject to the next
succeeding sentence, Borrower may from time to time designate a Restricted
Subsidiary as an Unrestricted Subsidiary or designate an Unrestricted Subsidiary
as a Restricted Subsidiary; provided that Borrower shall (a) provide
Administrative Agent written notification of such designation prior to or
concurrently therewith (which written notification Administrative Agent will
promptly forward to Lenders), and (b) if such designation is a Material
Acquisition (in the case of the designation of an Unrestricted Subsidiary as a
Restricted Subsidiary) or a Material Disposition (in the case of the designation
of a Restricted Subsidiary as an Unrestricted Subsidiary), within 10 Business
Days after such notification, deliver to Administrative Agent a certificate, in
form reasonably acceptable to Administrative Agent, demonstrating pro-forma
compliance (in accordance with Section 1.07) with Section 7.07 immediately prior
to and after giving effect to such designation. Notwithstanding anything to the
contrary contained herein, (x) each Guarantor shall at all times be a Restricted
Subsidiary for all purposes hereunder, and Borrower shall not designate a
33
Guarantor as an Unrestricted Subsidiary, (y) unless designated as an
Unrestricted Subsidiary in compliance with clause (z) below, each Cable
Subsidiary shall at all times be a Restricted Subsidiary for all purposes
hereunder, and (z) Borrower may designate a Cable Subsidiary as an Unrestricted
Subsidiary at any time when the Leverage Ratio (calculated after giving pro
forma effect to such designation) is less than or equal to 3.00 to 1.00.
SECTION 7
NEGATIVE COVENANTS
On and after the Effective Date, and so long as any Obligations remain
unpaid or unperformed, or any portion of the Commitments remains outstanding:
7.01 Liens. Borrower shall not, nor shall it permit any Restricted
Subsidiary to, directly or indirectly, incur, assume or suffer to exist, any
Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, except:
(a) Liens pursuant to any Loan Document;
(b) Liens existing on the date hereof securing Indebtedness which does not
exceed $500,000,000 in the aggregate (which, in the case of any such Lien
securing Indebtedness in the amount of $100,000 or more, is listed on Schedule
7.01), and any renewals or extensions thereof, provided that such Liens are not
extended to cover any other property, assets or revenues;
(c) Liens for taxes not yet due or which are being contested in good faith
and by appropriate proceedings, if adequate reserves with respect thereto are
maintained on the books of the applicable Person or such Liens are otherwise
permitted under Section 6.03;
(d) Carriers', warehousemen's, mechanics', materialmen's, repairmen's or
other like Liens arising in the ordinary course of business which are not
overdue for a period of more than 30 days or which are being contested or
intended to be timely contested in good faith and by appropriate proceedings;
(e) Pledges or deposits in connection with worker's compensation,
unemployment insurance and other social security legislation;
(f) Deposits to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;
(g) Easements, rights-of-way, restrictions and other similar encumbrances
affecting real property which do not in any case materially detract from the
value of the property subject thereto or materially interfere with the ordinary
conduct of the business of the applicable Person;
(h) Attachment, judgment or other similar Liens arising in connection with
litigation or other legal proceedings (and not otherwise a Default hereunder)
that are currently being contested in good faith by appropriate proceedings or
are intended to be timely contested in good faith by appropriate proceedings, if
adequate reserves with respect thereto are maintained on the books of the
applicable Person;
34
(i) Liens in favor of Borrower or any Restricted Subsidiary;
(j) Liens on "margin stock" (as defined in Regulation U of the Board of
Governors of the Federal Reserve System);
(k) Liens on property acquired (by purchase, merger or otherwise) after
the date hereof, existing at the time of acquisition thereof (but not created in
anticipation thereof), or placed thereon (at the time of such acquisition or
within 180 days of such acquisition to secure a portion of the purchase price
thereof), and any renewals or extensions thereof, so long as the Indebtedness
secured thereby is permitted hereby; provided that such Liens do not and are not
extended to cover any other property;
(l) Liens under Sale-Leaseback Transactions and other Liens, and any
renewals or extensions thereof, so long as the Indebtedness secured thereby does
not exceed $500,000,000 in the aggregate;
(m) Liens arising in connection with asset securitization transactions, so
long as the aggregate outstanding principal amount of the obligations secured
thereby does not exceed $300,000,000 at any one time; and
(n) Liens not otherwise permitted hereby which do not secure any
Indebtedness or which secure Indebtedness incurred pursuant to Asset
Monetization Transactions.
7.02 Subsidiary Indebtedness. Borrower shall not permit any of its
Restricted Subsidiaries to create, incur, assume or permit to exist any
Indebtedness, except:
(a) Indebtedness existing on the date hereof, which, for all such
Indebtedness other than any Indebtedness which is less than $10,000,000 on an
individual basis, is set forth on Schedule 7.02, and extensions, renewals and
replacements of such Indebtedness that do not increase the outstanding principal
amount thereof;
(b) Indebtedness of any Restricted Subsidiary to Borrower or any other
Restricted Subsidiary;
(c) Indebtedness of any Restricted Subsidiary that is a Guarantor (and, if
requested by Administrative Agent as to any Restricted Subsidiary that becomes a
Guarantor after the Effective Date, a satisfactory opinion of counsel is
delivered to Administrative Agent relating thereto); and
(d) Other Indebtedness of a Restricted Subsidiary that is not a Guarantor
in an aggregate principal amount not exceeding $750,000,000 at any time (it
being understood that any Indebtedness incurred pursuant to Section 7.01(m) or
Section 7.02(c) shall not be counted in determining such $750,000,000 limit).
7.03 Fundamental Changes. (a) Borrower shall not (A) merge or consolidate
with or into any Person or (B) liquidate, wind-up or dissolve itself or (C)
sell, transfer or dispose of all or substantially all of its assets, provided,
nothing in this Section 7.03 shall be construed to prohibit Borrower from
reincorporating in another jurisdiction, changing its form of organization or
merging into, or transferring all or substantially all of its assets to, another
Person so long as:
(i) either (x) Borrower shall be the surviving entity with
substantially the same assets immediately following the reincorporation or
reorganization or (y) the surviving entity or transferee (the "Successor
Corporation") shall, immediately following the
35
merger or transfer, as the case may be, (A) have substantially all of the
assets of Borrower immediately preceding the merger or transfer, as the
case may be, (B) have duly assumed all of Borrower's obligations hereunder
and under the other Loan Documents in form and substance satisfactory to
Administrative Agent (and, if requested by Administrative Agent, the
Successor Corporation shall have delivered an opinion of counsel as to the
assumption of such obligations) and (C) either (I) have then-effective
ratings (or implied ratings) published by Moody's or S&P applicable to
such Successor Corporation's senior, unsecured, non-credit-enhanced, long
term indebtedness for borrowed money, which ratings shall be either Baa3
or higher (if assigned by Moody's) or BBB- or higher (if assigned by S&P)
or (II) be acceptable to Required Lenders; and
(ii) immediately after giving effect to such transaction no Default
or Event of Default shall have occurred and be continuing.
(b) Borrower and its Restricted Subsidiaries, taken as a whole, shall
continue to maintain cable and other communications businesses as its primary
lines of business.
7.04 ERISA. Borrower shall not, nor shall it permit any Restricted
Subsidiary to, directly or indirectly, at any time engage in a transaction which
could be subject to Sections 4069 or 4212(c) of ERISA, or permit any Plan to (a)
engage in any non-exempt "prohibited transaction" (as defined in Section 4975 of
the Code); (b) fail to comply with ERISA or any other applicable Laws; or (c)
incur any material "accumulated funding deficiency" (as defined in Section 302
of ERISA); which, with respect to each event described in clauses (a), (b) or
(c) above, has a Material Adverse Effect.
7.05 Limitations on Upstreaming. Borrower shall not, nor shall it permit
any Restricted Subsidiary to, directly or indirectly agree to any restriction or
limitation on the making of dividends, distributions, loans or advances, the
repaying of loans or advances or the transferring of assets from any Restricted
Subsidiary to Borrower or any other Restricted Subsidiary, except (a)
restrictions and limitations imposed by Law or by the Loan Documents, (b)
customary restrictions and limitations contained in agreements relating to the
sale of a Subsidiary or its assets that is permitted hereunder and (c) any other
restrictions that could not reasonably be expected to impair Borrower's ability
to repay the Obligations as and when due.
7.06 Margin Regulations. Borrower shall not, nor shall it permit any
Restricted Subsidiary to, directly or indirectly, use the proceeds of any
Extensions of Credit hereunder for "purchasing" or "carrying" "margin stock" (as
such terms are defined in Regulation U of the Board of Governors of the Federal
Reserve System), if such use would violate, or would be inconsistent with, the
provisions of Regulations T, U, or X of such Board of Governors.
7.07 Financial Covenants.
(a) Interest Coverage Ratio. Borrower shall not permit the Interest
Coverage Ratio as of the end of any fiscal quarter of Borrower set forth below
to be less than the ratio set forth below opposite such fiscal quarter:
36
(b) Leverage Ratio. Borrower shall not permit the Leverage Ratio as of the
end of any fiscal quarter of Borrower set forth below to be greater than the
ratio set forth below opposite such fiscal quarter:
7.08 Prepayment of Material Indebtedness. Borrower shall not, nor shall it
permit any Restricted Subsidiary to, directly or indirectly, make or offer to
make any optional or voluntary payment, prepayment, repurchase or redemption of
or otherwise optionally or voluntarily defease or segregate funds with respect
to any long-term Indebtedness of Borrower or its Restricted Subsidiaries;
provided that this Section 7.08 (i) shall not prohibit prepayment of
Indebtedness under the "Revolving Facility" (as defined in the Permanent
Facility) or any other revolving facility (it being understood that this clause
(i) shall not permit the voluntary termination or reduction of commitments
thereunder) and (ii) shall not prohibit Borrower and its Restricted Subsidiaries
from optionally or voluntarily paying, prepaying, repurchasing or redeeming or
otherwise optionally or voluntarily defeasing or segregating funds with respect
to Indebtedness of Borrower or its Restricted Subsidiaries (A) consisting of
TOPRS (as defined in the Merger Agreement) outstanding on the date of this
Agreement which are required to be redeemed by the terms of the Merger Agreement
or (B) outstanding under any facility or arrangement so long as the aggregate
amount of Indebtedness thereunder does not exceed $10,000,000. Borrower (a)
shall not permit any Unrestricted Subsidiary to make or agree to make any
payment, prepayment, repurchase, redemption, defeasance or segregation of funds
referred to in the previous sentence that could not be made directly by Borrower
or a Restricted Subsidiary in accordance with the provisions of this Section
7.08 and (b) shall not, nor shall it permit any Restricted Subsidiary to,
furnish any funds to or make any investment in an Unrestricted Subsidiary or
other Person for purposes of enabling such Unrestricted Subsidiary or other
Person to make any such payment, prepayment, repurchase, redemption, defeasance
or segregation of funds.
SECTION 8
EVENTS OF DEFAULT AND REMEDIES
8.01 Events of Default. Any one or more of the following events shall
constitute an Event of Default:
(a) A Co-Borrower fails to pay any principal on any of its Outstanding
Obligations (other than fees) on the date when due; or
(b) A Co-Borrower fails to pay any interest on any of its Outstanding
Obligations, or any ticking, commitment or utilization fees, within five days
after the date when due; or fails to pay any other fees or amount payable to
Administrative Agent or any Lender under any Loan Document within five days
after the date when due or, if applicable, after demand is made for the payment
thereof; or
(c) Any default occurs in the observance or performance of any agreement
contained in Section 6.02(c), 6.12, 7.03 or 7.07; or
(d) Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in subsections (a), (b) or (c) above) contained in any
Loan Document on its part to be performed
37
or observed and such failure continues for 30 days after notice thereof to
Borrower from Administrative Agent or any Lender; or
(e) Any representation or warranty by any Loan Party in this Agreement or
any other Loan Document or any Compliance Certificate proves to have been
incorrect in any material respect when made or deemed made; or
(f) (i) Borrower or any Restricted Subsidiary (x) defaults in any payment
when due (including any stated grace periods) of principal of or interest on any
Indebtedness (other than the Obligations) having an aggregate principal amount
in excess of the Threshold Amount or (y) defaults in the observance or
performance of any other agreement or condition relating to any Indebtedness
(other than the Obligations) or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event shall occur, the
effect of which default or other event (after giving effect to any applicable
stated grace periods) is to cause, or to permit the holder or holders of such
Indebtedness (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required,
Indebtedness having an aggregate principal amount in excess of the Threshold
Amount to be demanded or become due (automatically or otherwise) or to become
subject to mandatory redemption prior to its stated maturity, or any Guaranty
Obligation in such amount to become payable or cash collateral in respect
thereof to be demanded (provided that to the extent that any default referred to
in the preceding provisions of this Section 8.01(f) is cured or duly waived by
the required holders of the applicable Indebtedness, such default shall cease to
be an Event of Default hereunder, unless and except to the extent that
Administrative Agent has theretofore exercised remedies hereunder pursuant to
Section 8.02), or (ii) Borrower or any Guarantor is unable or admits in writing
its inability to pay its debts as they mature; or
(g) Any Loan Document, at any time after its execution and delivery and
for any reason other than the agreement of Required Lenders or all Lenders, as
may be required hereunder, or satisfaction in full of all the Obligations,
ceases to be in full force and effect or is declared by a court of competent
jurisdiction to be null and void, invalid or unenforceable in any material
respect; or Borrower denies that it has any or further liability or obligation
under any Loan Document, or purports to revoke, terminate or rescind any Loan
Document; or
(h) (i) A final non-appealable judgment against Borrower, any of its
Significant Subsidiaries or any Guarantor is entered for the payment of money
(which is not covered by insurance) in excess of the Threshold Amount, or any
non-monetary final judgment is entered against Borrower, any of its Significant
Subsidiaries or any Guarantor which has a Material Adverse Effect if, in each
case, such judgment remains unsatisfied without procurement of a stay of
execution for (A) 30 calendar days after the date of entry of such judgment or,
(B) if earlier, five days prior to the date of any possible execution sale, or
(ii) any writ or warrant of attachment or execution or similar process is issued
or levied against all or any material part of the property of any such Person
and is not released, vacated, stayed or fully bonded within 30 calendar days
after its issue or levy; or
(i) Borrower, any of its Significant Subsidiaries or any Guarantor
institutes or consents to the institution of any proceeding under Debtor Relief
Laws, or makes an assignment for the benefit of creditors; or applies for or
consents to the appointment of any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer for it or for all or any material
part of its property; or any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer is appointed without the
application or consent of that Person and the appointment continues undischarged
or unstayed for 60 calendar days; or any proceeding under Debtor Relief Laws
relating to any such Person or to all or any part of its property is instituted
without the consent of that Person and continues undismissed or unstayed for 60
calendar days, or an order for relief is entered in any such proceeding; or
38
(j) There occurs any Change of Control.
8.02 Remedies Upon Event of Default. Without limiting any other rights or
remedies of Administrative Agent or Lenders provided for elsewhere in this
Agreement, or the other Loan Documents, or by applicable Law, or in equity, or
otherwise:
(a) Upon the occurrence, and during the continuance, of any Event of
Default other than an Event of Default described in Section 8.01(i),
Administrative Agent may (and, subject to the terms of Section 9, shall upon the
request of Required Lenders) terminate the Commitments and/or declare all or any
part of the unpaid principal of all Loans, all interest accrued and unpaid
thereon and all other amounts payable under the Loan Documents to be immediately
due and payable, whereupon the same shall become and be immediately due and
payable, without protest, presentment, notice of dishonor, demand or further
notice of any kind, all of which are expressly waived by each Co-Borrower.
(b) Upon the occurrence of any Event of Default described in Section
8.01(i):
(i) The Commitments and all other obligations of Administrative
Agent or Lenders shall automatically terminate without notice to or demand
upon either Co-Borrower, which are expressly waived by each Co-Borrower;
and
(ii) The unpaid principal of all Loans, all interest accrued and
unpaid thereon and all other amounts payable under the Loan Documents
shall be immediately due and payable, without protest, presentment, notice
of dishonor, demand or further notice of any kind, all of which are
expressly waived by each Co-Borrower.
(c) Upon the occurrence of any Event of Default, Administrative Agent may
proceed to protect, exercise and enforce against the Co-Borrowers the rights and
remedies of Administrative Agent and Lenders under the Loan Documents and such
other rights and remedies as are provided by Law or equity.
(d) The order and manner in which Administrative Agent's and Lenders'
rights and remedies are to be exercised shall be determined by Administrative
Agent or Required Lenders in their sole and absolute discretion. Regardless of
how a Lender may treat payments for the purpose of its own accounting, for the
purpose of computing the Obligations hereunder, payments received during the
existence of an Event of Default shall be applied first, to costs and expenses
(including Attorney Costs) incurred by Administrative Agent and each Lender (to
the extent that each Lender has a right to reimbursement thereof pursuant to the
Loan Documents), second, to the payment of accrued and unpaid interest on the
Obligations to and including the date of such application, third, to the payment
of, or as cash collateral for, the unpaid principal of the Obligations, and
fourth, to the payment of all other amounts (including fees) then owing to
Administrative Agent and Lenders under the Loan Documents, in each case paid pro
rata to each Lender in the same proportions that the aggregate Obligations owed
to each Lender under the Loan Documents bear to the aggregate Obligations owed
under the Loan Documents to all Lenders, without priority or preference among
Lenders.
SECTION 9
THE AGENTS
9.01 Appointment. Each Lender hereby irrevocably designates and appoints
Administrative Agent as the agent of such Lender under this Agreement and the
other Loan Documents,
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and each such Lender irrevocably authorizes Administrative Agent, in such
capacity, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to Administrative Agent by the terms of
this Agreement and the other Loan Documents, together with such other powers as
are reasonably incidental thereto. Notwithstanding any provision to the contrary
elsewhere in this Agreement, Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against Administrative
Agent.
9.02 Delegation of Duties. Administrative Agent may execute any of its
duties under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. Administrative Agent shall not be responsible
for the negligence or misconduct of any agents or attorneys in-fact selected by
it with reasonable care.
9.03 Exculpatory Provisions. Neither any Agent nor any of their respective
officers, directors, employees, agents, attorneys-in-fact or affiliates shall be
(i) liable for any action lawfully taken or omitted to be taken by it or such
Person under or in connection with this Agreement or any other Loan Document
(except to the extent that any of the foregoing are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from its or such Person's own gross negligence or willful misconduct) or (ii)
responsible in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by any Loan Party or any officer thereof
contained in this Agreement or any other Loan Document or in any certificate,
report, statement or other document referred to or provided for in, or received
by the Agents under or in connection with, this Agreement or any other Loan
Document or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document or for any failure
of any Loan Party a party thereto to perform its obligations hereunder or
thereunder. The Agents shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of any Loan Party.
9.04 Reliance by Administrative Agent. (a) Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any instrument,
writing, resolution, notice, consent, certificate, affidavit, letter, telecopy,
telex or teletype message, statement, order or other document or conversation
believed by it to be genuine and correct and to have been signed, sent or made
by the proper Person or Persons and upon advice and statements of legal counsel
(including counsel to Borrower), independent accountants and other experts
selected by Administrative Agent. Administrative Agent shall be fully justified
in failing or refusing to take any action under this Agreement or any other Loan
Document unless it shall first receive such advice or concurrence of the
Required Lenders (or, if so specified by this Agreement, all Lenders) as it
deems appropriate or it shall first be indemnified to its satisfaction by
Lenders against any and all liability and expense that may be incurred by it by
reason of taking or continuing to take any such action. Administrative Agent
shall in all cases be fully protected in acting, or in refraining from acting,
under this Agreement and the other Loan Documents in accordance with a request
of the Required Lenders (or, if so specified by this Agreement, all Lenders),
and such request and any action taken or failure to act pursuant thereto shall
be binding upon all Lenders and all future holders of the Loans.
(b) For purposes of determining compliance with the conditions specified
in Section 4, absent Requisite Notice by such Lender to Administrative Agent to
the contrary, each Lender shall be deemed to have consented to, approved or
accepted or to be satisfied with, each document or other matter
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either sent by Administrative Agent to each Lender for consent, approval,
acceptance or satisfaction, or required thereunder to be consented to or
approved by or acceptable or satisfactory to a Lender.
9.05 Notice of Default. Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default unless
Administrative Agent has received notice from a Lender or Borrower referring to
this Agreement, describing such Default or Event of Default and stating that
such notice is a "notice of default". In the event that Administrative Agent
receives such a notice, Administrative Agent shall give notice thereof to
Lenders. Administrative Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Required
Lenders (or, if so specified by this Agreement, all Lenders); provided that
unless and until Administrative Agent shall have received such directions,
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of Lenders.
9.06 Non-Reliance on Agents and Other Lenders. Each Lender expressly
acknowledges that neither the Agents nor any of their respective officers,
directors, employees, agents, attorneys-in-fact or affiliates have made any
representations or warranties to it and that no act by any Agent hereafter
taken, including any review of the affairs of a Loan Party or any affiliate of a
Loan Party, shall be deemed to constitute any representation or warranty by any
Agent to any Lender. Each Lender represents to the Agents that it has,
independently and without reliance upon any Agent or any other Lender, and based
on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Loan Parties and their
affiliates and made its own decision to make its Loans hereunder and enter into
this Agreement. Each Lender also represents that it will, independently and
without reliance upon any 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 analysis, appraisals and decisions in taking or not taking action
under this Agreement and the other Loan Documents, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Loan Parties and their affiliates. Except for notices, reports and other
documents expressly required to be furnished to Lenders by Administrative Agent
hereunder, Administrative Agent shall not have any duty or responsibility to
provide any Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of any Loan Party or any affiliate of a Loan Party that may
come into the possession of Administrative Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates.
9.07 Indemnification. Lenders agree to indemnify each Agent and Issuing
Bank in its capacity as such (to the extent not reimbursed by Borrower and
without limiting the obligation of Borrower to do so), ratably according to
their respective Loan Percentage in effect on the date on which indemnification
is sought under this Section (or, if indemnification is sought after the date
upon which the Commitments shall have terminated and the Loans shall have been
paid in full, ratably in accordance with such Loan Percentage immediately prior
to such date), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever that may at any time (whether before or after the payment
of the Loans) be imposed on, incurred by or asserted against such Agent in any
way relating to or arising out of, the Commitments, this Agreement, any of the
other Loan Documents or any documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby or any action taken
or omitted by such Agent under or in connection with any of the foregoing;
provided that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements that are found by a final and nonappealable
decision of a court of competent
41
jurisdiction to have resulted from such Agent's gross negligence or willful
misconduct. The agreements in this Section shall survive the payment of the
Loans and all other amounts payable hereunder.
9.08 Agent in Its Individual Capacity. Each Agent and its affiliates may
make loans to, accept deposits from and generally engage in any kind of business
with any Loan Party as though such Agent were not an Agent. With respect to its
Loans made or renewed by it, each Agent shall have the same rights and powers
under this Agreement and the other Loan Documents as any Lender and may exercise
the same as though it were not an Agent, and the terms "Lender" and "Lenders"
shall include each Agent in its individual capacity.
9.09 Successor Administrative Agent. Administrative Agent may resign as
Administrative Agent upon 30 days' notice to Lenders and Borrower. If
Administrative Agent shall resign as Administrative Agent under this Agreement
and the other Loan Documents, then the Required Lenders shall appoint from among
Lenders a successor agent for Lenders, which successor agent shall (unless an
Event of Default under Section 8.01(a), Section 8.01(b) or Section 8.01(i) with
respect to Borrower shall have occurred and be continuing) be subject to
approval by Borrower (which approval shall not be unreasonably withheld or
delayed), whereupon such successor agent shall succeed to the rights, powers and
duties of Administrative Agent, and the term "Administrative Agent" shall mean
such successor agent effective upon such appointment and approval, and the
former Administrative Agent's rights, powers and duties as Administrative Agent
shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any of the parties to this Agreement or any
holders of the Loans. If no successor agent has accepted appointment as
Administrative Agent by the date that is 30 days following a retiring
Administrative Agent's notice of resignation, the retiring Administrative
Agent's resignation shall nevertheless thereupon become effective, and Lenders
shall assume and perform all of the duties of Administrative Agent hereunder
until such time, if any, as the Required Lenders appoint a successor agent as
provided for above. After any retiring Administrative Agent's resignation as
Administrative Agent, the provisions of this Section 9 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 and the other Loan Documents.
9.10 Co-Documentation Agents and Syndication Agent. None of
Co-Documentation Agents nor Syndication Agent shall have any right, power,
obligation, liability, responsibility or duty hereunder in its capacity as such.
Without limiting the foregoing, none of Co-Documentation Agents nor Syndication
Agent in its capacity as such shall have or be deemed to have any fiduciary
relationship with any Lender. Each Lender acknowledges that it has not relied,
and will not rely, on any of Co-Documentation Agents or Syndication Agent in
deciding to enter into this Agreement or in taking or not taking action
hereunder.
SECTION 10
MISCELLANEOUS
10.01 Amendments; Consents. No amendment, modification, supplement,
extension, termination or waiver of any provision of this Agreement or any other
Loan Document, no approval or consent thereunder, and no consent to any
departure by any Loan Party therefrom shall be effective unless in writing
signed by each Loan Party party thereto and Required Lenders and acknowledged by
Administrative Agent (or signed by Administrative Agent with the prior written
consent of Required Lenders), and each such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.
Notwithstanding the foregoing sentence, without the approval in
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writing of each Co-Borrower, Administrative Agent and each Lender affected
thereby, no amendment, modification, supplement, termination, waiver, approval,
or consent may be effective to:
(a) Reduce the amount of principal of any Outstanding Obligations owed
to such Lender;
(b) Reduce the rate of interest payable on any Outstanding Obligations
owed to such Lender or the amount or rate of any fee or other amount payable to
such Lender under the Loan Documents, except that Required Lenders may waive or
defer the imposition of the Default Rate;
(c) Waive an Event of Default consisting of the failure of a
Co-Borrower to pay when due principal, interest, any ticking, commitment or
utilization fee, or any other amount payable to such Lender under the Loan
Documents;
(d) Postpone any date scheduled for the payment of principal of, or
interest on, any Loan or for the payment of any ticking fee or for the payment
of any other amount, in each case payable to such Lender under the Loan
Documents, or extend the term of, or increase the amount of, such Lender's
Commitment (it being understood that a waiver of any Event of Default not
referred to in subsection (c) above shall require only the consent of Required
Lenders) or modify such Lender's share of the Commitments (except as
contemplated hereby);
(e) Amend or waive the definition of "Required Lenders" or the
provisions of this Section 10.01 or Section 10.06; or
(f) Amend or waive any provision of this Agreement that expressly
requires the consent or approval of such Lender;
provided, however, that (i) no amendment, waiver or consent shall, unless in
writing and signed by Administrative Agent in addition to Required Lenders or
each affected Lender, as the case may be, affect the rights or duties of
Administrative Agent; (ii) any fee letters may be amended, or rights or
privileges thereunder waived, in a writing executed by the parties thereto and
(iii) no amendment, waiver or consent shall release all or substantially all of
Guarantors from their obligations under the Guarantee Agreement without the
written consent of all Lenders. Any amendment, modification, supplement,
termination, waiver or consent pursuant to this Section shall apply equally to,
and shall be binding upon, all Lenders and Administrative Agent.
10.02 Requisite Notice; Effectiveness of Signatures and Electronic
Mail.
(a) Requisite Notice. Notices given in connection with any Loan
Document shall be delivered to the intended recipient at the number and/or
address set forth on the Administrative Questionnaire (or as otherwise specified
from time to time by such recipient in writing to Administrative Agent) and
shall be given by (i) irrevocable written notice or (ii) except as otherwise
provided, irrevocable telephonic (not voicemail) notice. Such notices may be
delivered, must be confirmed and shall be effective as follows:
Mode of Delivery
Mail Effective on earlier of actual receipt and fourth
Business Day after deposit in U.S. Mail, first class
postage pre-paid
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Courier or hand delivery When signed for by recipient
Telephone (not voicemail) When conversation completed (must be confirmed in
writing)
Facsimile When confirmed by telephone (not voicemail)
Electronic Mail When delivered (usage subject to subsection
(c) below)
provided, however, that notices delivered to Administrative Agent pursuant to
Section 2 shall not be effective until actually received by Administrative
Agent; provided, further, that Administrative Agent may require that any notice
be confirmed or followed by a manually-signed hard copy thereof. Notices shall
be in any form prescribed herein and, if sent by a Co-Borrower, shall be made by
a Responsible Officer of such Co-Borrower. Notices delivered and, if required,
confirmed in accordance with this subsection shall be deemed to have been
delivered by Requisite Notice.
(b) Effectiveness of Facsimile Documents and Signatures. Loan Documents
may be transmitted and/or signed by facsimile. The effectiveness of any such
documents and signatures shall, subject to applicable Law, have the same force
and effect as manually-signed hard copies and shall be binding on each
Co-Borrower, Administrative Agent and Lenders. Administrative Agent may also
require that any such documents and signatures be confirmed by a manually-signed
hard copy thereof; provided, however, that the failure to request or deliver the
same shall not limit the effectiveness of any facsimile document or signature.
(c) Limited Usage of Electronic Mail. Electronic mail and internet and
intranet websites may be used to distribute routine communications, such as
financial statements and other information, and to distribute agreements and
other documents to be signed by Administrative Agent, Lenders and the
Co-Borrowers. No other legally-binding and/or time-sensitive communication or
Request for Extension of Credit may be sent by electronic mail without the
consent of, or confirmation to, the intended recipient in each instance.
(d) Reliance by Administrative Agent and Lenders. Administrative Agent
and Lenders shall be entitled to rely and act upon any notices purportedly given
by or on behalf of a Co-Borrower even if (i) such notices were not made in a
manner specified herein, were incomplete or were not preceded or followed by any
other notice specified herein, or (ii) the terms thereof, as understood by the
recipient, varied from any confirmation thereof. Borrower shall indemnify
Administrative Agent-Related Persons and Lenders from any loss, cost, expense or
liability as a result of relying on any notices purportedly given by or on
behalf of a Co-Borrower absent the gross negligence or willful misconduct of the
Person seeking indemnification.
10.03 Attorney Costs, Expenses and Taxes. Borrower agrees (a) to pay or
reimburse Administrative Agent and Syndication Agent for all reasonable costs
and expenses incurred in connection with the development, preparation,
negotiation and execution of the Loan Documents, and to pay or reimburse
Administrative Agent for all reasonable costs and expenses incurred in
connection with the development, preparation, negotiation and execution of any
amendment, waiver, consent, supplement or modification to, any Loan Documents,
and any other documents prepared in connection herewith or therewith, and the
consummation and administration of the transactions contemplated hereby and
thereby, including all Attorney Costs of Administrative Agent and (b) to pay or
reimburse Administrative Agent and each Lender for all costs and expenses
incurred in connection with any restructuring, reorganization (including a
bankruptcy reorganization) or enforcement or attempted enforcement of, or
preservation of
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any rights under, any Loan Documents, and any other documents prepared in
connection herewith or therewith, or in connection with any refinancing or
restructuring of any such documents in the nature of a "workout" or of any
insolvency or bankruptcy proceeding, including Attorney Costs. The agreements in
this Section shall survive repayment of all Obligations.
10.04 Binding Effect; Assignment.
(a) This Agreement and the other Loan Documents to which Borrower is a
party will be binding upon and inure to the benefit of the Co-Borrowers,
Administrative Agent, Lenders and their respective successors and assigns,
except that, a Co-Borrower may not, except as permitted by Section 7.03, assign
its rights hereunder or thereunder or any interest herein or therein without the
prior written consent of all Lenders and any such attempted assignment shall be
void. Any Lender may at any time pledge a Note or any other instrument
evidencing its rights as a Lender under this Agreement to a Federal Reserve Bank
or, if such Lender is a fund, to any trustee or to any other representative of
holders of obligations owed or securities issued by such fund as security for
such obligations or securities, but no such pledge shall release such Lender
from its obligations hereunder or grant to such Federal Reserve Bank or trust or
other representative the rights of a Lender hereunder absent foreclosure of such
pledge, and any transfer to any Person upon the enforcement of such pledge shall
be subject to this Section 10.04.
(b) From time to time following the date of this Agreement, each Lender
may assign to one or more banks, financial institutions or other entities all or
any portion of its rights and obligations under this Agreement and the other
Loan Documents; provided that (i) such assignment, if not to a Lender or an
Affiliate of a Lender, shall be consented to (which consents shall not be
unreasonably withheld) by Borrower at all times other than during the existence
of an Event of Default and by Administrative Agent, (ii) a copy of a duly signed
and completed Assignment and Acceptance shall be delivered to Administrative
Agent, (iii) except in the case of an assignment (A) to an Affiliate of a Lender
or to another Lender or (B) of the entire remaining Commitment of the assigning
Lender, such assignment shall be in an aggregate principal amount not less than
the Minimum Amount therefor, and (iv) the effective date of any such assignment
shall be as specified in the Assignment and Acceptance, but not earlier than the
date which is five Business Days after the date Administrative Agent has
received the Assignment and Acceptance. Any such assignment need not be ratable
among the Facilities. Upon obtaining any consent required as set forth in the
prior sentence, any forms required by Section 10.20 and payment of the requisite
fee described below, the assignee named therein shall be a Lender for all
purposes of this Agreement to the extent of the Assigned Interest (as defined in
such Assignment and Acceptance), and, except for rights and obligations which by
their terms survive termination of any Commitments, the assigning Lender shall
be released from any further obligations under this Agreement to the extent of
such Assigned Interest. Upon request, the Co-Borrowers shall execute and deliver
new or replacement Notes to the assigning Lender and the assignee Lender to
evidence Loans made by them. Administrative Agent's consent to any assignment
shall not be deemed to constitute any representation or warranty by any
Administrative Agent-Related Person as to any matter. Administrative Agent shall
record the information contained in the Assignment and Acceptance in the
Register.
(c) After receipt of a completed Assignment and Acceptance, and receipt
of an assignment fee of $3,500 from such assignee and/or such assigning Lender
(including in the case of assignments to Affiliates of assigning Lenders),
Administrative Agent shall promptly accept such Assignment and Acceptance and
record the information contained therein in the Register on the effective date
determined pursuant thereto.
(d) Each Lender may from time to time, without the consent of any other
Person, grant participations to one or more other Persons (including another
Lender) in all or any portion of its Commitments, Extensions of Credit or any
other interest of such Lender hereunder and under the other
45
Loan Documents; provided, however, that (i) such Lender's obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) the participating bank or other financial institution shall not be a
Lender hereunder for any purpose except, if the participation agreement so
provides, for the purposes of the increased cost provisions of Section 3 (but
only to the extent that the cost of such benefits to Borrower does not exceed
the cost which Borrower would have incurred in respect of such Lender absent the
participation) and for purposes of Section 10.06, (iv) Borrower, 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 (v) the consent of the holder of such participation interest
shall not be required for amendments or waivers of provisions of the Loan
Documents; provided, however, that the assigning Lender may, in any agreement
with a participant, give such participant the right to consent (as between the
assigning Lender and such participant) to any matter which (A) extends the
Maturity Date as to such participant or any other date upon which any payment of
money is due to such participant, (B) reduces the rate of interest owing to such
participant or any fee or any other monetary amount owing to such participant,
or (C) reduces the amount of any scheduled payment of principal owing to such
participant. Any Lender that sells a participation to any Person that is a
"foreign corporation, partnership or trust" within the meaning of the Code shall
include in its participation agreement with such Person a covenant by such
Person that such Person will comply with the provisions of Section 10.20 as if
such Person were a Lender and provide that Administrative Agent and Borrower
shall be third party beneficiaries of such covenant. Each Lender that sells or
grants a participation shall (a) withhold or deduct from each payment to the
holder of such participation the amount of any tax required under applicable law
to be withheld or deducted from such payment and not withheld or deducted
therefrom by Borrower or Administrative Agent, (b) pay the tax so withheld or
deducted by it to the appropriate taxing authority in accordance with applicable
law and (c) indemnify Borrower and Administrative Agent for any losses, cost and
expenses that they may incur as a result of any failure to so withhold or deduct
and pay such tax.
10.05 Set-off. In addition to any rights and remedies of Administrative
Agent and Lenders or any assignee of any Lender or any Affiliate thereof (each,
a "Proceeding Party") provided by law, upon the occurrence and during the
continuance of any Event of Default, each Proceeding Party is authorized at any
time and from time to time, without prior notice to the Co-Borrowers, any such
notice being waived by the Co-Borrowers to the fullest extent permitted by law,
to proceed directly, by right of set-off, banker's lien or otherwise, against
any assets of the Co-Borrowers which may be in the hands of such Proceeding
Party (including all general or special, time or demand, provisional or other
deposits and other indebtedness owing by such Proceeding Party to or for the
credit or the account of the Co-Borrowers) and apply such assets against the
Obligations then due and payable, irrespective of whether such Proceeding Party
shall have made any demand therefor. Each Lender agrees promptly to notify the
Co-Borrower and Administrative Agent after any such set-off and application made
by such Lender; provided, however, that the failure to give such notice shall
not affect the validity of such set-off and application.
10.06 Sharing of Payments. Each Lender severally agrees that if it,
through the exercise of any right of setoff, banker's lien or counterclaim
against a Co-Borrower or otherwise, receives payment of the Obligations held by
it that is ratably more than any other Lender receives in payment of the
Obligations held by such other Lender, then, subject to applicable Laws, (a)
such Lender exercising the right of setoff, banker's lien or counterclaim or
otherwise receiving such payment shall purchase, and shall be deemed to have
simultaneously purchased, from the other Lender a participation in the
Obligations held by the other Lender and shall pay to the other Lender a
purchase price in an amount so that the share of the Obligations held by each
Lender after the exercise of the right of setoff, banker's lien or counterclaim
or receipt of payment shall be in the same proportion that existed prior to the
exercise of the right of setoff, banker's lien or counterclaim or receipt of
payment; and (b) such other adjustments and
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purchases of participations shall be made from time to time as shall be
equitable to ensure that all Lenders share any payment obtained in respect of
the Obligations ratably in accordance with each Lender's share of the
Obligations immediately prior to, and without taking into account, the payment;
provided that, if all or any portion of a disproportionate payment obtained as a
result of the exercise of the right of setoff, banker's lien, counterclaim or
otherwise is thereafter recovered from the purchasing Lender by a Co-Borrower or
any Person claiming through or succeeding to the rights of a Co-Borrower, the
purchase of a participation shall be rescinded and the purchase price thereof
shall be restored to the extent of the recovery, but without interest. Each
Lender that purchases a participation in the Obligations pursuant to this
Section shall from and after the purchase have the right to give all notices,
requests, demands, directions and other communications under this Agreement with
respect to the portion of the Obligations purchased to the same extent as though
the purchasing Lender were the original owner of the Obligations purchased. Each
Co-Borrower expressly consents to the foregoing arrangements and agrees that any
Lender holding a participation in an Obligation so purchased may exercise any
and all rights of setoff, banker's lien or counterclaim with respect to the
participation as fully as if Lender were the original owner of the Obligation
purchased.
10.07 No Waiver; Cumulative Remedies.
(a) No failure by any Lender or Administrative Agent to exercise, and
no delay by any Lender or Administrative Agent in exercising, any right, remedy,
power or privilege hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege under any
Loan Document preclude any other or further exercise thereof or the exercise of
any other right, remedy, power or privilege.
(b) The rights, remedies, powers and privileges herein or therein
provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by Law. Any decision by Administrative Agent or any Lender
not to require payment of any interest (including interest at the Default Rate),
fee, cost or other amount payable under any Loan Document or to calculate any
amount payable by a particular method on any occasion shall in no way limit or
be deemed a waiver of Administrative Agent's or such Lender's right to require
full payment thereof, or to calculate an amount payable by another method that
is not inconsistent with this Agreement, on any other or subsequent occasion.
(c) Except with respect to Section 9.09, the terms and conditions of
Section 9 are for the sole benefit of the Agents and Lenders.
10.08 Usury. Notwithstanding anything to the contrary contained in any
Loan Document, the interest paid or agreed to be paid under the Loan Documents
shall not exceed the maximum rate of non-usurious interest permitted by
applicable Law (the "Maximum Rate"). If Administrative Agent or any Lender shall
receive interest in an amount that exceeds the Maximum Rate, the excessive
interest shall be applied to the principal of the Outstanding Obligations or, if
it exceeds the unpaid principal, refunded to the applicable Co-Borrower. In
determining whether the interest contracted for, charged or received by
Administrative Agent or any Lender exceeds the Maximum Rate, such Person may, to
the extent permitted by applicable Law, (a) characterize any payment that is not
principal as an expense, fee or premium rather than interest, (b) exclude
voluntary prepayments and the effects thereof, and (c) amortize, prorate,
allocate and spread, in equal or unequal parts, the total amount of interest
throughout the contemplated term of the Obligations.
10.09 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
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10.10 Integration. This Agreement, together with the other Loan
Documents and any letter agreements referred to herein, comprises the complete
and integrated agreement of the parties regarding the subject matter hereof and
supersedes all prior agreements, written or oral, on the subject matter hereof.
In the event of any conflict between the provisions of this Agreement and those
of any other Loan Document, the provisions of this Agreement shall control and
govern; provided that the inclusion of supplemental rights or remedies in favor
of Administrative Agent or Lenders in any other Loan Document shall not be
deemed a conflict with this Agreement. Each Loan Document was drafted with the
joint participation of the respective parties thereto and shall be construed
neither against nor in favor of any party, but rather in accordance with the
fair meaning thereof. THE LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN
THE PARTIES THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BY SUCH PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN SUCH PARTIES.
10.11 Nature of Lenders' Obligations. Nothing contained in this
Agreement or any other Loan Document and no action taken by Administrative Agent
or Lenders or any of them pursuant hereto or thereto may, or may be deemed to,
make Lenders a partnership, an association, a joint venture or other entity,
either among themselves or with Borrower or any Subsidiary or Affiliate of
Borrower. Each Lender's obligation to make any Extension of Credit pursuant
hereto is several and not joint or joint and several. A default by any Lender
will not increase the Commitments attributable to any other Lender.
10.12 Survival of Representations and Warranties. All representations
and warranties made hereunder and in any other Loan Document shall survive the
execution and delivery thereof. Such representations and warranties have been or
will be relied upon by Administrative Agent and each Lender, notwithstanding any
investigation made by Administrative Agent or any Lender or on their behalf.
10.13 Indemnity by Borrower. (a) Whether or not the transactions
contemplated hereby are consummated, the Co-Borrowers jointly and severally
agree to indemnify, save and hold harmless each Administrative Agent-Related
Person and each Lender and their respective Affiliates, directors, officers,
agents, attorneys and employees (collectively the "Indemnitees") from and
against: (i) any and all claims, demands, actions or causes of action that are
asserted against any Indemnitee by any Person (other than Administrative Agent
or any Lender) relating directly or indirectly to a claim, demand, action or
cause of action that such Person asserts or may assert against a Co-Borrower,
any of its Affiliates or any of its officers or directors; (ii) any and all
claims, demands, actions or causes of action arising out of or relating to the
Loan Documents, the Commitments, the use or contemplated use of the proceeds of
any Extension of Credit, or the relationship of the Co-Borrowers, Administrative
Agent and Lenders under this Agreement; (iii) any administrative or
investigative proceeding by any Governmental Authority arising out of or related
to a claim, demand, action or cause of action described in subsection (i) or
(ii) above; and (iv) any and all liabilities (including liabilities under
indemnities), losses, costs or expenses (including Attorney Costs (limited to
one law firm for Lenders unless Lenders have differing interests or defenses
that preclude the engagement of one law firm to represent Lenders)) that any
Indemnitee suffers or incurs as a result of the assertion of any foregoing
claim, demand, action, cause of action or proceeding, or as a result of the
preparation of any defense in connection with any foregoing claim, demand,
action, cause of action or proceeding, in all cases, including settlement costs
incurred with the prior written consent of Borrower (which consent shall not be
unreasonably withheld), whether or not arising out of the negligence of an
Indemnitee, and whether or not an Indemnitee is a party to such claim, demand,
action, cause of action or proceeding (all the foregoing, collectively, the
"Indemnified Liabilities"); provided that no Indemnitee shall be entitled to
indemnification for any loss caused by its own gross negligence or willful
misconduct. The agreements in this Section shall survive repayment of all
Obligations.
48
(b) Notwithstanding anything to the contrary contained herein or in any
other Loan Document, no liability, right, remedy or claim shall arise, be
asserted or be enforceable (i) at any time as against any AT&T Party or (ii)
prior to the first to occur of the initial Borrowing hereunder by Broadband or
the consummation of the Transactions, as against any AT&T Broadband Party, in
each case by or on behalf of any Agent, any Lender, any other Co-Borrower or
Guarantor, in respect of the Obligations, this Agreement or any other Loan
Document, all such liabilities, rights, remedies and claims, if any, being
expressly waived. As used herein, (x) "AT&T Party" shall mean AT&T Corp., a New
York corporation, or any of its Subsidiaries or any of the respective officers,
directors, employees, representatives or agents of any of the foregoing, other
than any AT&T Broadband Party and (y) "AT&T Broadband Party" shall mean
Broadband and its Subsidiaries.
10.14 Nonliability of Lenders. Borrower acknowledges and agrees that:
(a) Any inspections of any property of Borrower made by or through
Administrative Agent or Lenders are for purposes of administration of the Loan
Documents only, and Borrower is not entitled to rely upon the same (whether or
not such inspections are at the expense of Borrower);
(b) By accepting or approving anything required to be observed,
performed, fulfilled or given to Administrative Agent or Lenders pursuant to the
Loan Documents, neither Administrative Agent nor Lenders shall be deemed to have
warranted or represented the sufficiency, legality, effectiveness or legal
effect of the same, or of any term, provision or condition thereof, and such
acceptance or approval thereof shall not constitute a warranty or representation
to anyone with respect thereto by Administrative Agent or Lenders;
(c) The relationship between the Co-Borrowers and Administrative Agent
and Lenders is, and shall at all times remain, solely that of borrower and
lenders; neither Administrative Agent nor any Lender shall under any
circumstance be deemed to be in a relationship of confidence or trust or a
fiduciary relationship with Borrower or its Affiliates, or to owe any fiduciary
duty to Borrower or its Affiliates; neither Administrative Agent nor any Lender
undertakes or assumes any responsibility or duty to Borrower or its Affiliates
to select, review, inspect, supervise, pass judgment upon or inform Borrower or
its Affiliates of any matter in connection with their property or the operations
of Borrower or its Affiliates; Borrower and its Affiliates shall rely entirely
upon their own judgment with respect to such matters; and any review,
inspection, supervision, exercise of judgment or supply of information
undertaken or assumed by Administrative Agent or any Lender in connection with
such matters is solely for the protection of Administrative Agent and Lenders
and neither Borrower nor any other Person is entitled to rely thereon; and
(d) Neither Administrative Agent nor any Lender shall be responsible or
liable to any Person for any loss, damage, liability or claim of any kind
relating to injury or death to Persons or damage to property caused by the
actions, inaction or negligence of Borrower and/or its Affiliates and Borrower
hereby indemnifies and holds Administrative Agent and Lenders harmless from any
such loss, damage, liability or claim.
10.15 No Third Parties Benefitted. This Agreement is made for the
purpose of defining and setting forth certain obligations, rights and duties of
the Co-Borrowers, Administrative Agent and Lenders in connection with the
Extensions of Credit, and is made for the sole benefit of the Co-Borrowers,
Administrative Agent and Lenders, Administrative Agent's and Lenders' successors
and permitted assigns, and, with respect to Section 10.13(b), the AT&T Parties
and the AT&T Broadband Parties. Except as provided in Sections 10.04 and 10.13,
no other Person shall have any rights of any nature hereunder or by reason
hereof.
49
10.16 Severability. Any provision of the Loan Documents that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective and severable to the extent of such prohibition or
unenforceability without invalidating the remaining provisions thereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. Administrative
Agent, Lenders and Borrower agree to negotiate, in good faith, the terms of a
replacement provision as similar to the severed provision as may be possible and
be legal, valid, and enforceable.
10.17 Confidentiality. Administrative Agent and each Lender shall use
any confidential non-public information concerning Borrower and its Subsidiaries
and Affiliates that is furnished to Administrative Agent or such Lender by or on
behalf of Borrower and its Subsidiaries in connection with the Loan Documents
(collectively, "Confidential Information") solely for the purpose of
administering and enforcing the Loan Documents, and it will hold the
Confidential Information in confidence. Notwithstanding the foregoing,
Administrative Agent and each Lender may disclose Confidential Information (a)
to their affiliates or any of their or their affiliates' directors, officers,
employees, auditors, counsel, advisors, or representatives (collectively, the
"Representatives") who need to know such information for the purposes set forth
in this Section and who have been advised of and acknowledge their obligation to
keep such information confidential in accordance with this Section, (b) to any
bank or financial institution or other entity to which such Lender has assigned
or desires to assign an interest or participation in the Loan Documents or the
Obligations, provided that any such foregoing recipient of such Confidential
Information agrees to keep such Confidential Information confidential as
specified herein, (c) to any governmental agency or regulatory body having or
claiming to have authority to regulate or oversee any aspect of Administrative
Agent's or such Lender's business or that of their Representatives in connection
with the exercise of such authority or claimed authority, (d) to the extent
necessary or appropriate to enforce any right or remedy or in connection with
any claims asserted by or against Administrative Agent or such Lender or any of
their Representatives, and (e) pursuant to any subpoena or any similar legal
process. For purposes hereof, the term "Confidential Information" shall not
include information that (x) is in Administrative Agent's or a Lender's
possession prior to its being provided by or on behalf of Borrower or any of its
Subsidiaries or Affiliates, provided that such information is not known by
Administrative Agent or such Lender to be subject to another confidentiality
agreement with, or other legal or contractual obligation of confidentiality to,
Borrower or any of its Subsidiaries or Affiliates, (y) is or becomes publicly
available (other than through a breach hereof by Administrative Agent or such
Lender), or (z) becomes available to Administrative Agent or such Lender on a
nonconfidential basis, provided that the source of such information was not
known by Administrative Agent or such Lender to be bound by a confidentiality
agreement or other legal or contractual obligation of confidentiality with
respect to such information.
10.18 Headings. Section headings in this Agreement and the other Loan
Documents are included for convenience of reference only and are not part of
this Agreement or the other Loan Documents for any other purpose.
10.19 Time of the Essence. Time is of the essence of the Loan
Documents.
10.20 Foreign Lenders. Each Lender organized under the Laws of a
jurisdiction outside the United States, on or prior to the date of this
Agreement in the case of each Lender listed on the signature pages hereof and on
or prior to the date on which it becomes a Lender in the case of each other
Lender, and from time to time thereafter if requested in writing by Borrower or
Administrative Agent (but only so long as such Lender remains lawfully able to
do so), shall provide Borrower and Administrative Agent with (i) if such Lender
is a "bank" within the meaning of Section 881(c)(3)(A) of the Code, IRS Form
W-8ECI or W-8BEN, as appropriate, or any successor form prescribed by the IRS,
certifying that such Lender is entitled to benefits under an income tax treaty
to which the United States is a party which
50
reduces the rate of withholding tax on payments of interest or certifying that
the income receivable pursuant to the Loan Documents is effectively connected
with the conduct of a trade or business in the United States, or (ii) if such
Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code
and intends to claim an exemption from United States withholding tax under
Section 871(h) or 881(c) of the Code with respect to payments of "portfolio
interest," IRS Form W-8, or any successor form prescribed by the IRS, and a
certificate representing that such Lender is not a bank for purposes of Section
881(c) of the Code, is not a ten-percent shareholder (within the meaning of
Section 871(h)(3)(B) of the Code) of Borrower, and is not a controlled foreign
corporation related to Borrower (within the meaning of Section 864(d)(4) of the
Code). Thereafter and from time to time, each such Person shall (a) promptly
submit to Administrative Agent such additional duly completed and signed copies
of one of such forms (or such successor forms as shall be adopted from time to
time by the relevant United States taxing authorities) as may then be available
under then current United States laws and regulations to avoid, or such evidence
as is satisfactory to Borrower and Administrative Agent of any available
exemption from or reduction of, United States withholding taxes in respect of
all payments to be made to such Person by Borrower pursuant to this Agreement,
(b) promptly notify Administrative Agent of any change in circumstances which
would modify or render invalid any claimed exemption or reduction, and (c) take
such steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable
Laws that a Co-Borrower make any deduction or withholding for taxes from amounts
payable to such Person. If such Person fails to deliver the above forms or other
documentation, then Administrative Agent may withhold from any interest payment
to such Person an amount equivalent to the applicable withholding tax imposed by
Sections 1441 and 1442 of the Code, without reduction. If any Governmental
Authority asserts that Administrative Agent did not properly withhold any tax or
other amount from payments made in respect of such Person, such Person shall
indemnify Administrative Agent therefor, including all penalties and interest,
any taxes imposed by any jurisdiction on the amounts payable to the Agent under
this Section, and costs and expenses (including Attorney Costs) of
Administrative Agent. The obligation of Lenders under this Section shall survive
the payment of all Obligations and the resignation of Administrative Agent.
10.21 Removal and Replacement of Lenders.
(a) Under any circumstances set forth in this Agreement providing that
Borrower shall have the right to remove or replace a Lender as a party to this
Agreement, Borrower may, upon notice to such Lender and Administrative Agent,
remove such Lender by (i) non ratably terminating such Lender's Commitment
and/or (ii) causing such Lender to assign its Commitment pursuant to Section
10.04(b) to one or more other Lenders or eligible assignees procured by
Borrower. Each Co-Borrower shall, in the case of a termination of such Lender's
Commitment pursuant to clause (i) preceding, (x) pay in full all principal,
interest, fees and other amounts owing to such Lender through the date of
termination (including any amounts payable pursuant to Section 3) and (y)
release such Lender from its obligations under the Loan Documents from and after
the date of termination. Each Co-Borrower shall, in the case of an assignment
pursuant to clause (ii) preceding, cause to be paid the assignment fee payable
to Administrative Agent pursuant to Section 10.04(c). Any such Lender whose
Commitment is being assigned shall execute and deliver an Assignment and
Acceptance covering such Lender's Commitment. Administrative Agent shall
distribute an amended Schedule 2.01, which shall be deemed incorporated into
this Agreement, to reflect adjustments to Lenders and their Commitments.
(b) This section shall supercede any provisions in Section 10.01 to the
contrary.
10.22 Governing Law; Submission to Jurisdiction; Waivers.
51
(a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.
(b) Each party to this Agreement irrevocably and unconditionally:
(i) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to
which it is a party, or for recognition and enforcement of any judgment
in respect thereof, to the non-exclusive general jurisdiction of the
courts of the State of New York, the courts of the United States for
the Southern District of New York, and appellate courts from any
thereof;
(ii) consents that any such action or proceeding may be
brought in such courts and waives any objection that it may now or
hereafter have to the venue of any such action or proceeding in any
such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;
(iii) agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or
certified mail (or any substantially similar form of mail), postage
prepaid, to it at its address provided for in Section 10.02;
(iv) agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by law or shall
limit the right to sue in any other jurisdiction; and
(v) waives, to the maximum extent not prohibited by law, any
right it may have to claim or recover in any legal action or proceeding
referred to in this Section any special, exemplary, punitive or
consequential damages.
10.23 Waiver of Right to Trial by Jury. EACH PARTY TO THIS AGREEMENT
HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM
WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT
OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT
A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
52
[REMAINDER OF PAGE INTENTIONALLY BLANK.
SIGNATURE PAGES FOLLOW.]
Signature Page to that certain Bridge Credit Agreement, dated as of the
date first set forth above, among AT&T Comcast Corporation and AT&T Broadband
Corp., as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative
Agent, Citibank, N.A., as Syndication Agent, and Bank of America, N.A., Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as Co-Documentation Agents.
AT&T COMCAST CORPORATION
By:
/s/ Arthur R. Block
---------------------------------------
Name: Arthur R. Block
Title: Senior Vice President
AT&T BROADBAND CORP.
By:
/s/ Robert S. Feit
---------------------------------------
Name: Robert S. Feit
Title: Vice President and Assistant
Secretary
1
Signature Page to that certain Bridge Credit Agreement, dated as of the
date first set forth above, among AT&T Comcast Corporation and AT&T Broadband
Corp., as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative
Agent, Citibank, N.A., as Syndication Agent, and Bank of America, N.A., Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as Co-Documentation Agents.
JPMorgan Chase Bank, as Administrative Agent
and as a Lender
By: /s/ B. Joseph Lillis
--------------------------------------------
Name: B. Joseph Lillis
Title: Managing Director
Signature Page to that certain Bridge Credit Agreement, dated as of the
date first set forth above, among AT&T Comcast Corporation and AT&T Broadband
Corp., as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative
Agent, Citibank, N.A., as Syndication Agent, and Bank of America, N.A., Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as Co-Documentation Agents.
Name of Lender: Citibank, N.A.
By: /s/ Carolyn Kee
----------------------------------
Name: Carolyn Kee
--------------------------------
Title: Vice President
-------------------------------
Signature Page to that certain Bridge Credit Agreement, dated as of the
date first set forth above, among AT&T Comcast Corporation and AT&T Broadband
Corp., as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative
Agent, Citibank, N.A., as Syndication Agent, and Bank of America, N.A., Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as Co-Documentation Agents.
Name of Lender: Bank of America, N.A.
By: /s/Todd Shipley
------------------------------------
Name: Todd Shipley
----------------------------------
Title: Managing Director
---------------------------------
Signature Page to that certain Bridge Credit Agreement, dated as of the
date first set forth above, among AT&T Comcast Corporation and AT&T Broadband
Corp., as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative
Agent, Citibank, N.A., as Syndication Agent, and Bank of America, N.A., Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as Co-Documentation Agents.
Name of Lender: Merrill Lynch Capital Corporation
By: /s/ Zoran Fotak
-----------------------------------------------
Name: Zoran Fotak
---------------------------------------------
Title: Managing Director
--------------------------------------------
Signature Page to that certain Bridge Credit Agreement, dated as of the
date first set forth above, among AT&T Comcast Corporation and AT&T Broadband
Corp., as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative
Agent, Citibank, N.A., as Syndication Agent, and Bank of America, N.A., Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as Co-Documentation Agents.
Name of Lender: Morgan Stanley Senior Funding, Inc.
By: /s/ Lucy Galbraith
-----------------------------------------------
Name: Lucy Galbraith
---------------------------------------------
Title: Vice President
--------------------------------------------
Signature Page to that certain Bridge Credit Agreement, dated as of the
date first set forth above, among AT&T Comcast Corporation and AT&T Broadband
Corp., as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative
Agent, Citibank, N.A., as Syndication Agent, and Bank of America, N.A., Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as Co-Documentation Agents.
Name of Lender: ABN AMRO Bank N.V.
By: /s/ David Carrington
-------------------------------------
Name: David Carrington
-----------------------------------
Title: Group Vice President
----------------------------------
By: /s/ Thomas Cha
-------------------------------------
Name: Thomas Cha
-----------------------------------
Title: Assistant Vice President
----------------------------------
Signature Page to that certain Bridge Credit Agreement, dated as of the
date first set forth above, among AT&T Comcast Corporation and AT&T Broadband
Corp., as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative
Agent, Citibank, N.A., as Syndication Agent, and Bank of America, N.A., Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as Co-Documentation Agents.
Name of Lender: Bank One, NA
By: /s/ Curtis R. Worthington
----------------------------------
Name: Curtis R. Worthington
--------------------------------
Title: Associate Director
-------------------------------
Signature Page to that certain Bridge Credit Agreement, dated as of the
date first set forth above, among AT&T Comcast Corporation and AT&T Broadband
Corp., as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative
Agent, Citibank, N.A., as Syndication Agent, and Bank of America, N.A., Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as Co-Documentation Agents.
Name of Lender: The Bank of New York Company, Inc.
By: /s/ Michael E. Masters
------------------------------------------------
Name: Michael E. Masters
----------------------------------------------
Title: Assistant Vice President
---------------------------------------------
Signature Page to that certain Bridge Credit Agreement, dated as of the
date first set forth above, among AT&T Comcast Corporation and AT&T Broadband
Corp., as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative
Agent, Citibank, N.A., as Syndication Agent, and Bank of America, N.A., Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as Co-Documentation Agents.
Name of Lender: The Bank of Nova Scotia
By: /s/ Brenda S. Insull
-------------------------------------
Name: Brenda S. Insull
-----------------------------------
Title: Authorized Signatory
----------------------------------
Signature Page to that certain Bridge Credit Agreement, dated as of the
date first set forth above, among AT&T Comcast Corporation and AT&T Broadband
Corp., as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative
Agent, Citibank, N.A., as Syndication Agent, and Bank of America, N.A., Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as Co-Documentation Agents.
Name of Lender: The Bank of Tokyo-Mitsubishi, Ltd.
By: /s/ Mark R. Marron
-----------------------------------------------
Name: Mark R. Marron
---------------------------------------------
Title: Authorized Signatory
--------------------------------------------
Signature Page to that certain Credit Agreement, dated as of the date
first set forth above, among AT&T Comcast Corporation and AT&T Broadband Corp.,
as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative Agent,
Swing Line Lender, and an Issuing Lender, Citibank, N.A., as Syndication Agent,
and Bank of America, N.A., Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Morgan Stanley Senior Funding, Inc., as Co-Documentation
Agents.
Name of Lender: Barclays Bank PLC
By: /s/ Benjamin Smith
--------------------------------
Name: Benjamin Smith
------------------------------
Title: Associate Director
-----------------------------
Signature Page to that certain Credit Agreement, dated as of the date
first set forth above, among AT&T Comcast Corporation and AT&T Broadband Corp.,
as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative Agent,
Swing Line Lender, and an Issuing Lender, Citibank, N.A., as Syndication Agent,
and Bank of America, N.A., Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Morgan Stanley Senior Funding, Inc., as Co-Documentation
Agents.
Name of Lender: BNP Paribas
By: /s/ Gregg Bonardi
---------------------------------
Name: Gregg Bonardi
-------------------------------
Title: Director
------------------------------
By: /s/ Ola Anderssen
---------------------------------
Name: Ola Anderssen
-------------------------------
Title: Director
------------------------------
Signature Page to that certain Credit Agreement, dated as of the date
first set forth above, among AT&T Comcast Corporation and AT&T Broadband Corp.,
as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative Agent,
Swing Line Lender, and an Issuing Lender, Citibank, N.A., as Syndication Agent,
and Bank of America, N.A., Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Morgan Stanley Senior Funding, Inc., as Co-Documentation
Agents.
Name of Lender: Deutsche Bank AG, New York
By: /s/ William W. McGinty
---------------------------------------
Name: William W. McGinty
-------------------------------------
Title: Director
------------------------------------
By: /s/ Christopher S. Hall
---------------------------------------
Name: Christopher S. Hall
-------------------------------------
Title: Managing Director
------------------------------------
Signature Page to that certain Credit Agreement, dated as of the date
first set forth above, among AT&T Comcast Corporation and AT&T Broadband Corp.,
as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative Agent,
Swing Line Lender, and an Issuing Lender, Citibank, N.A., as Syndication Agent,
and Bank of America, N.A., Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Morgan Stanley Senior Funding, Inc., as Co-Documentation
Agents.
Name of Lender: Dresdner Bank AG, New York &
Grand Cayman Branches
By: /s/ Brian E. Haughney
-----------------------------------------
Name: Brian E. Haughney
---------------------------------------
Title: Vice President
--------------------------------------
By: /s/ William E. Lambert
-----------------------------------------
Name: William E. Lambert
---------------------------------------
Title: Vice President
--------------------------------------
Signature Page to that certain Credit Agreement, dated as of the date
first set forth above, among AT&T Comcast Corporation and AT&T Broadband Corp.,
as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative Agent,
Swing Line Lender, and an Issuing Lender, Citibank, N.A., as Syndication Agent,
and Bank of America, N.A., Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Morgan Stanley Senior Funding, Inc., as Co-Documentation
Agents.
Name of Lender: Fleet National Bank
By: /s/ Sue Anderson
-----------------------------------
Name: Sue Anderson
---------------------------------
Title: Managing Director
--------------------------------
Signature Page to that certain Credit Agreement, dated as of the date
first set forth above, among AT&T Comcast Corporation and AT&T Broadband Corp.,
as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative Agent,
Swing Line Lender, and an Issuing Lender, Citibank, N.A., as Syndication Agent,
and Bank of America, N.A., Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Morgan Stanley Senior Funding, Inc., as Co-Documentation
Agents.
Name of Lender: Goldman Sachs Credit Partners, L.P.
By: /s/ Stephen P. Hickey
------------------------------------------------
Name: Stephen P. Hickey
----------------------------------------------
Title: Authorized Signatory
---------------------------------------------
Signature Page to that certain Credit Agreement, dated as of the date
first set forth above, among AT&T Comcast Corporation and AT&T Broadband Corp.,
as Co-Borrowers, each Lender, JPMorgan Chase Bank, as Administrative Agent,
Swing Line Lender, and an Issuing Lender, Citibank, N.A., as Syndication Agent,
and Bank of America, N.A., Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Morgan Stanley Senior Funding, Inc., as Co-Documentation
Agents.
Name of Lender: The Royal Bank of Scotland plc
By: /s/ David A. Lucus
--------------------------------------------
Name: David A. Lucus
------------------------------------------
Title: Senior Vice President
-----------------------------------------