EXHIBIT 10.50
AMENDED AND RESTATED
CREDIT AGREEMENT
BETWEEN
WELLS FARGO BANK, NATIONAL ASSOCIATION
AND
AMERICAN ECOLOGY CORPORATION
DATED
MAY 25, 2005
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S>
<C>
ARTICLE 1 - DEFINITIONS AND ACCOUNTING
TERMS. . . . . . . . . . . . . . . . . . . . 6
1.1 Defined Terms. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.2 Accounting Terms
. . . . . . . . . . . . . . . . . . . . . . . . . . . 11
ARTICLE 2 - LOANS AND TERMS OF PAYMENT. . .
. . . . . . . . . . . . . . . . . . . . 11
2.1 Revolving Credit
. . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.1.1 Manner of
Requesting.. . . . . . . . . . . . . . . . . . . . 11
2.1.2 Interest on the
Revolving Loans. . . . . . . . . . . . . . . 12
2.1.3 Revolving Note .
. . . . . . . . . . . . . . . . . . . . . . 13
2.1.4 Repayment. . . .
. . . . . . . . . . . . . . . . . . . . . . 13
2.1.5 Commitment Fee .
. . . . . . . . . . . . . . . . . . . . . . 13
2.1.6 Origination Fee.
. . . . . . . . . . . . . . . . . . . . . . 13
2.1.7 Use of Proceeds.
. . . . . . . . . . . . . . . . . . . . . . 13
2.2 Letters of
Credit. . . . . . . . . . . . . . . . . . . . . . . . . . .
14
2.2.1 Applications . .
. . . . . . . . . . . . . . . . . . . . . . 14
2.2.2 Facility
Termination . . . . . . . . . . . . . . . . . . . . 14
2.2.3 Fees . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 14
2.2.4 Form . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 14
2.2.5 Reimbursement. .
. . . . . . . . . . . . . . . . . . . . . . 14
2.2.6 Reimbursement
Obligations Absolute . . . . . . . . . . . . . 14
2.3 Method of
Payment. . . . . . . . . . . . . . . . . . . . . . . . . . .
15
2.4 Prepayments. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.5 Late Charges and
Default Interest. . . . . . . . . . . . . . . . . . . 15
2.6 Additional
Interest Rate Provisions. . . . . . . . . . . . . . . . . .
15
2.6.1 Unavailable
LIBOR Loans. . . . . . . . . . . . . . . . . . . 15
2.6.2 Unlawful LIBOR
Loans . . . . . . . . . . . . . . . . . . . . 15
2.6.3 Increased Cost .
. . . . . . . . . . . . . . . . . . . . . . 16
2.6.4 Computation of
Interest. . . . . . . . . . . . . . . . . . . 16
2.7 LIBOR Loan
Extensions and Conversions. . . . . . . . . . . . . . . . .
16
2.8 Minimum LIBOR Loan
Requirements. . . . . . . . . . . . . . . . . . . . 16
2.9 Funding Loss
Indemnification . . . . . . . . . . . . . . . . . . . . .
17
2.10
Taxes on
Payments. . . . . . . . . . . . . . . . . . . . . . . . . . .
17
ARTICLE 3 - CONDITIONS PRECEDENT. . . . . .
. . . . . . . . . . . . . . . . . . . . 17
3.1 Initial Advance.
. . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.1.1 Revolving Note .
. . . . . . . . . . . . . . . . . . . . . . 17
3.1.2 Guaranty . . . .
. . . . . . . . . . . . . . . . . . . . . . 17
3.1.3 New Guaranties .
. . . . . . . . . . . . . . . . . . . . . . 18
3.1.4 Evidence of
Insurance. . . . . . . . . . . . . . . . . . . . 18
3.1.5 Opinion of
Counsel for Borrower and Guarantor. . . . . . . . 18
3.1.6 Evidence of all
Corporate Action by Borrower . . . . . . . . 18
3.1.7 Certificates of
Existence for Borrower . . . . . . . . . . . 18
-i-
<PAGE>
3.1.8 Articles of
Incorporation and Bylaws of Borrower . . . . . . 18
3.1.9 Evidence of all
Corporate Action by Guarantor. . . . . . . . 18
3.1.10
Certificates of Existence for Guarantor. . . . . . . . . . .
18
3.1.11
Articles of Incorporation and Bylaws of Guarantor. . . . . .
18
3.1.12
Certificates of Assumed Business Name. . . . . . . . . . . .
18
3.1.13
Letter to Accountants. . . . . . . . . . . . . . . . . . . .
18
3.1.14
Public Record Searches . . . . . . . . . . . . . . . . . . .
19
3.1.15
Payment of Origination Fee . . . . . . . . . . . . . . . . .
19
3.1.16
Additional Documents . . . . . . . . . . . . . . . . . . . .
19
3.2 All Advances . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.2.1 Take-Down
Certification. . . . . . . . . . . . . . . . . . . 19
3.2.2 Other Documents.
. . . . . . . . . . . . . . . . . . . . . . 19
ARTICLE 4 - REPRESENTATIONS AND WARRANTIES.
. . . . . . . . . . . . . . . . . . . . 19
4.1 Organization,
Good Standing, and Due Qualification . . . . . . . . . .
19
4.2 Power and
Authority. . . . . . . . . . . . . . . . . . . . . . . . . .
19
4.3 Legally
Enforceable Agreement. . . . . . . . . . . . . . . . . . . . .
20
4.4 Financial
Statements . . . . . . . . . . . . . . . . . . . . . . . . .
20
4.5 Labor Disputes
and Casualties. . . . . . . . . . . . . . . . . . . . .
20
4.6 Other Agreements
. . . . . . . . . . . . . . . . . . . . . . . . . . . 21
4.7 No Litigation. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 21
4.8 No Defaults on
Outstanding Judgments or Orders . . . . . . . . . . . .
21
4.9 Ownership and
Liens. . . . . . . . . . . . . . . . . . . . . . . . . .
21
4.10
Employee
Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . .
21
4.11
Operation
of Business. . . . . . . . . . . . . . . . . . . . . . . . .
21
4.12
Taxes. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
4.13
Debt . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
4.14
Environmental Matters. . . . . . . . . . . . . . . . . . . . . . .
. . 22
4.15
Investment
Company Act . . . . . . . . . . . . . . . . . . . . . . . .
22
4.16
Subsidiaries and Ownership of Stock. . . . . . . . . . . . . . . .
. . 22
ARTICLE 5 - AFFIRMATIVE COVENANTS . . . . .
. . . . . . . . . . . . . . . . . . . . 23
5.1 Maintenance of
Existence . . . . . . . . . . . . . . . . . . . . . . .
23
5.2 Maintenance of
Records . . . . . . . . . . . . . . . . . . . . . . . .
23
5.3 Maintenance of
Properties. . . . . . . . . . . . . . . . . . . . . . .
23
5.4 Conduct of
Business. . . . . . . . . . . . . . . . . . . . . . . . . .
23
5.5 Maintenance of
Insurance . . . . . . . . . . . . . . . . . . . . . . .
23
5.6 Compliance with
Laws . . . . . . . . . . . . . . . . . . . . . . . . . 23
5.7 Right of
Inspection. . . . . . . . . . . . . . . . . . . . . . . . . .
23
5.8 Reporting
Requirements.. . . . . . . . . . . . . . . . . . . . . . . .
24
5.8.1 Annual Financial
Statements. . . . . . . . . . . . . . . . . 24
5.8.2 Management
Letters . . . . . . . . . . . . . . . . . . . . . 24
5.8.3 Notice of
Litigation . . . . . . . . . . . . . . . . . . . . 24
5.8.4 Notice of
Defaults and Events of Default . . . . . . . . . . 24
5.8.5 ERISA Reports. .
. . . . . . . . . . . . . . . . . . . . . . 24
5.8.6 Reports to Other
Creditors . . . . . . . . . . . . . . . . . 24
-ii-
<PAGE>
5.8.7 SEC Reports. . .
. . . . . . . . . . . . . . . . . . . . . . 25
5.8.8 Compliance
Certificate . . . . . . . . . . . . . . . . . . . 25
5.8.9 General
Information. . . . . . . . . . . . . . . . . . . . . 25
5.9 Environment. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 25
5.10 Reimbursement of
Lender Expenses . . . . . . . . . . . . . . . . . . . 25
5.11
Bank
Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
ARTICLE 6 - NEGATIVE COVENANTS. . . . . . .
. . . . . . . . . . . . . . . . . . . . 26
6.1 Liens. . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 26
6.2 Debt . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 27
6.3 Mergers or
Reorganization. . . . . . . . . . . . . . . . . . . . . . .
27
6.4 Leases . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 27
6.5 Sale and
Leaseback . . . . . . . . . . . . . . . . . . . . . . . . . .
27
6.6 Dividends. . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 27
6.7 Sale of Assets .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 28
6.8 Investments. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 28
6.9 Guaranties . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 28
6.10
ERISA
Plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
6.11
Transactions With Affiliates . . . . . . . . . . . . . . . . . . .
. . 28
6.12
Change of
Name . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
6.13
Change in
Management . . . . . . . . . . . . . . . . . . . . . . . . .
29
6.14
Accounting
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
6.15
Location
of Chief Executive Office . . . . . . . . . . . . . . . . . .
29
ARTICLE 7 - FINANCIAL COVENANTS . . . . . .
. . . . . . . . . . . . . . . . . . . . 29
7.1 Fixed Charge
Coverage Ratio. . . . . . . . . . . . . . . . . . . . . .
29
7.2 Leverage Ratio .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 30
7.3 Current Ratio. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 30
7.4 Funded Debt
Ratio. . . . . . . . . . . . . . . . . . . . . . . . . . .
30
ARTICLE 8 - EVENTS OF DEFAULT . . . . . . .
. . . . . . . . . . . . . . . . . . . . 30
8.1 Events of
Default. . . . . . . . . . . . . . . . . . . . . . . . . . .
30
8.1.1 Payment Failure.
. . . . . . . . . . . . . . . . . . . . . . 30
8.1.2
Misrepresentation. . . . . . . . . . . . . . . . . . . . . .
30
8.1.3 Performance
Failure. . . . . . . . . . . . . . . . . . . . . 30
8.1.4 Failure to Pay
Debts . . . . . . . . . . . . . . . . . . . . 30
8.1.5 Insolvency . . .
. . . . . . . . . . . . . . . . . . . . . . 30
8.1.6 Judgments. . . .
. . . . . . . . . . . . . . . . . . . . . . 31
8.1.7 Guaranty . . . .
. . . . . . . . . . . . . . . . . . . . . . 31
8.1.8 ERISA. . . . . .
. . . . . . . . . . . . . . . . . . . . . . 31
8.1.9 Environmental
Lien . . . . . . . . . . . . . . . . . . . . . 31
8.1.10
Material Misrepresentation . . . . . . . . . . . . . . . . .
32
8.1.11
Agreement Unenforceable. . . . . . . . . . . . . . . . . . .
32
8.2 Cure of Event of
Default . . . . . . . . . . . . . . . . . . . . . . . 32
-iii-
<PAGE>
ARTICLE 9 - BANK'S RIGHTS AND REMEDIES. . .
. . . . . . . . . . . . . . . . . . . . 32
9.1 Specific
Remedies. . . . . . . . . . . . . . . . . . . . . . . . . . .
32
9.1.1 Terminate Loans.
. . . . . . . . . . . . . . . . . . . . . . 32
9.1.2 Acceleration . .
. . . . . . . . . . . . . . . . . . . . . . 32
9.1.3 Terminate
Agreement. . . . . . . . . . . . . . . . . . . . . 32
9.1.4 Lender Expenses.
. . . . . . . . . . . . . . . . . . . . . . 32
9.1.5 Attorney-in-Fact
. . . . . . . . . . . . . . . . . . . . . . 32
9.1.6 Other Remedies .
. . . . . . . . . . . . . . . . . . . . . . 32
9.2 Set Off. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 32
9.3 Cumulative
Remedies. . . . . . . . . . . . . . . . . . . . . . . . . .
33
9.4 Arbitration. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 33
9.4.1 Arbitration. . .
. . . . . . . . . . . . . . . . . . . . . . 33
9.4.2 Governing Rules.
. . . . . . . . . . . . . . . . . . . . . . 33
9.4.3 No Waiver of
Provisional Remedies, Self-Help and Foreclosure 33
9.4.4 Arbitrator
Qualifications and Powers . . . . . . . . . . . . 34
9.4.5 Discovery. . . .
. . . . . . . . . . . . . . . . . . . . . . 34
9.4.6 Class
Proceedings and Consolidations . . . . . . . . . . . . 34
9.4.7 Payment Of
Arbitration Costs And Fees. . . . . . . . . . . . 34
9.4.8 Real Property
Collateral . . . . . . . . . . . . . . . . . . 34
9.4.9 Miscellaneous. .
. . . . . . . . . . . . . . . . . . . . . . 34
ARTICLE 10 - MISCELLANEOUS. . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 35
10.1
Amendments, Etc . . . . . . . . . . . . . . . . . . . . . . . . . .
. 35
10.2
Notices, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 35
10.3
No
Waiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36
10.4
Successors and Assigns. . . . . . . . . . . . . . . . . . . . . . .
. 36
10.5
Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 36
10.6
Application of Payments . . . . . . . . . . . . . . . . . . . . . .
. 36
10.7
Continuing Warranties, Representations and Covenants. . . . . . . .
. 36
10.8
Indemnity . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 36
10.9
Choice of Law and Venue . . . . . . . . . . . . . . . . . . . . . .
. 36
10.10
Severability of Provisions. . . . . . . . . . . . . . . . . . . . .
. 37
10.11
Headings.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
10.12
Jury Trial
Waiver . . . . . . . . . . . . . . . . . . . . . . . . . .
37
10.13
Destruction of Borrower's Documents . . . . . . . . . . . . . . . .
. 37
10.14
Participations. . . . . . . . . . . . . . . . . . . . . . . . . . .
. 37
10.14.1
Consent. . . . . . . . . . . . . . . . . . . . . . . . . .
37
10.14.2 Lead Lender. . .
. . . . . . . . . . . . . . . . . . . . . 38
10.15
Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . .
. 38
10.16
Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 38
</TABLE>
-iv-
<PAGE>
EXHIBITS TO CREDIT AGREEMENT
EXHIBIT NO. EXHIBIT
DESCRIPTION
-----------
-------------------
2.1.1.1
Authorized Persons
2.1.1.2
LIBOR Loan Request Form
2.1.3
Form of Revolving Note
3.1.4
Form of Opinion of Counsel for Borrower and Guarantors
3.1.12
Form of Letter to Accountants
4.16
Debt
4.17
Subsidiaries
6.1
Permitted Liens
6.10
ERISA Plans
-v-
<PAGE>
CREDIT AGREEMENT
THIS CREDIT AGREEMENT
is entered into effective as of the 25th day of
May, 2005, between WELLS FARGO BANK,
NATIONAL ASSOCIATION ("Bank") and AMERICAN
ECOLOGY CORPORATION, a Delaware corporation ("Borrower").
RECITALS:
1.
Borrower and
Bank, through its
predecessor in interest, First
Security Bank, N.A., entered into a Credit
Agreement dated August 17, 2000 (as
amended, the "Credit Agreement").
2.
Borrower and
Bank have entered into
several amendments to the
Credit Agreement.
3.
Borrower and
Bank have agreed to
amend and restate the Credit
Agreement in order to consolidate the
amendments to the Credit Agreement and to
make miscellaneous other modifications to
the Credit Agreement.
4.
Bank is willing to amend and restate the Credit
Agreement in
its entirety upon the terms and conditions
of this Agreement.
NOW THEREFORE,
the parties agree that the Credit
Agreement shall be
amended and restated in its entirety as follows:
AGREEMENT
DEFINITIONS AND ACCOUNTING TERMS
DEFINED TERMS.
As used in this Agreement, the
following capitalized
terms shall have the meanings defined below. Terms defined in the singular
shall have the same meaning when used in the plural
and vice versa.
Certain
other capitalized terms used only in specific sections of this
Agreement are
defined in such sections.
"ADJUSTED LIBOR
INTEREST RATE" means the rate per annum equal to
the quotient of (i) the London Interbank Offered
Rate divided by (ii) one (1)
minus the Eurocurrency Reserve Requirement
for the applicable Interest Period,
rounded upward, if necessary, to the nearest one-sixteenth of one
percent.
"Eurocurrency Reserve Requirement" means, for any LIBOR Loan for any
Interest
Period therefor, the daily average of the stated
maximum rate (expressed as a
decimal) at which reserves (including any
marginal, supplemental, or emergency
reserves) are required to be maintained by Bank during such
Interest Period
under Regulation D of the Board of Governors of the
Federal Reserve System, as
amended or supplemented from time to time, against
"Eurocurrency Liabilities"
(as such term is used in Regulation D) but without benefit or credit of
proration, exemptions, or offsets that
might otherwise be available to Bank from
time to time under Regulation D.
Without limiting the
effect of the foregoing,
the Eurocurrency Reserve Requirement shall reflect
any other reserves required
to be maintained by Bank against (i) any
category of liabilities that includes
deposits by reference to which the Adjusted
LIBOR Interest Rate for LIBOR Loans
is to be determined; or (ii) any category
of extension of credit or other assets
that include LIBOR Loans.
6
<PAGE>
"AFFILIATE" means
any Person (1) who directly or indirectly
controls, or is controlled by, or is under
common control with the Borrower; (2)
who directly or indirectly
beneficially owns or holds five percent (5%) or more
of any class of voting stock of the
Borrower; or (3) five percent (5%) or more
of the voting stock of which is directly or indirectly
beneficially owned or
held by the Borrower. The term "control" means the possession,
directly or
indirectly, of the power to direct or cause
the direction of the management and
policies of a Person, whether through the ownership of
voting securities, by
contract, or otherwise.
"AGREEMENT" means
this Credit Agreement, as amended,
supplemented, or modified from time to time.
"BANK" means
Wells Fargo Bank, National Association, its
successors and assigns.
"BASE RATE" means the rate per annum equal to the quotient of
(i)
the Daily LIBOR Rate divided by (ii) one (1) minus the
Eurocurrency Reserve
Requirement.
"BASE RATE
LOAN" means any loan under this Agreement
bearing
interest at a rate based upon the Base Rate.
"BORROWER" means
American Ecology Corporation, a Delaware
corporation.
"BUSINESS DAY"
means a day other than Saturday or
Sunday and a
day on which commercial banks are required to be open for
business in Boise,
Idaho, under the laws of the state of
Idaho, and, if the applicable day relates
to a LIBOR Loan, Interest Period, or
notice with respect to a LIBOR Loan, a day
on which dealings in Dollar deposits are
also carried on in the London Interbank
market and banks are open for business in London.
"CODE" means
the Internal Revenue
Code of 1986, as amended from
time to time, and the regulations and published interpretations thereof.
"COMMITMENT AMOUNT"
means Eight Million Dollars ($8,000,000),
less the sum of (i) the aggregate stated amount
of all Letters of Credit then
outstanding and available for drawing, and (ii) the aggregate amount of
unreimbursed drawings on Letters of Credit.
"COMMONLY CONTROLLED
ENTITY" means an entity, whether or not
incorporated, that is under common control with a
Borrower within the meaning
of Section 414(b) or 414(c) of the Code.
"DAILY LIBOR
RATE" means the rate per annum for United
States
dollar deposits quoted by Bank as of 10:00 a.m. on each Business
Day as the
Inter-Bank Market Offered Rate, with the
understanding that such rate is quoted
by Bank for the purpose of calculating
effective rates of interest for the loans
making reference thereto, for delivery of funds on
such Business Day for a one
(1) day period and in an amount
approximately equal to the principal amount of
the applicable Base Rate Loan. Borrower understands and agrees
that Bank may
base its quotation on the Inter-Bank Market Offered Rate
upon such offers or
other market indicators of the Inter-Bank
Market as Bank in its discretion deems
appropriate including, but not limited to, the rate offered for U.S.
dollar
deposits on the London Interbank Market.
7
<PAGE>
"ENVIRONMENTAL LAWS"
shall mean and include, without limitation,
the Resource Conversation and Recovery
Act of 1976 (RCRA), 42 USC Sec.Sec. 6901
et. seq., the Comprehensive Environmental
Response, Compensation and Liability
Act of 1980 (CERCLA) 42 USC Sec.Sec. 9601-9657, as amended
by the Superfund
Amendments and Reauthorization Act of 1986 (SARA), the Hazardous
Materials
Transportation Authorization Act of 1994, 49 USC Sec.Sec. 5101 et.
seq., the
Federal Water Pollution Control Act, 33 USC Sec.Sec. 1251
et. seq., the Clean
Air Act, 42 USC Sec.Sec. 741 et. seq., the
Clean Water Act, 33 USC Sec. 7401,
the Toxic Substances Control Act, 15 USC
Sec.Sec. 2601-2629, the Safe Drinking
Water Act, 42 USC Sec.Sec. 300f-300j, and all
amendments thereto, and legally
enforceable rules, regulations, orders, and
decrees promulgated thereunder, and
any other local, state and/or federal laws,
rules, regulations and ordinances,
whether currently in existence or
hereafter enacted, that govern, to the extent
applicable to Borrower's businesses,
properties and assets:
(a) the existence,
cleanup and/or remedy of contamination on property; (b)
the protection of the
environment from soil, air or water pollution, or from
spilled, deposited or
otherwise emplaced contamination; (c) the emission or discharge of
Hazardous
Substances into the environment; (d) the
control of Hazardous Substances; or (e)
the use, generation, transport, treatment, removal or recovery of
Hazardous
Substances.
"ERISA" means
the Employment Retirement Income
Security Act of
1974, as the same may be amended or
supplemented from time to time, including
any regulations issued in connection therewith.
"EVENT OF DEFAULT"
means the occurrence of any of the events set
forth in Section 0 of this Agreement.
"GAAP" means
the generally accepted accounting principles
set
forth in the opinions and pronouncements
of the Accounting Principles Board and
the American Institute of Certified Public Accountants
and the statements and
pronouncements of the Financial Accounting Standards
Board that are applicable
to the circumstances as of the date of determination consistently
applied.
"GUARANTOR" means,
jointly and severally, US Ecology, Inc., a
California corporation, Texas Ecologists, Inc., a Texas
corporation, American
Ecology Recycle Center, Inc., a Delaware corporation, American Ecology
Environmental Services Corporation, a Texas corporation, American Ecology
Services Corp., a Delaware corporation, US Ecology Idaho, Inc., a
Delaware
corporation, US Ecology Texas, L.P., a Texas limited partnership,
US Ecology
Nevada, Inc., a Delaware corporation, and US Ecology Washington, Inc., a
Delaware corporation.
"GUARANTY" means
any guaranty of the Obligations
executed by a
Guarantor.
"HAZARDOUS SUBSTANCE"
means (a) any oil, petroleum products,
flammable substance, explosives, radioactive materials, hazardous wastes or
substances, toxic wastes or substances or any other wastes, materials or
pollutants that (i) pose a hazard to
Borrower's owned or leased real property or
to persons on or about such real property or (ii) cause
Borrower's owned or
leased real property to be in violation
of any Environmental Laws; (b) asbestos
in any form that is or could become
friable, urea formaldehyde foam insulation,
transformers or other equipment that contain dielectric fluid containing
regulated levels of polychlorinated biphenyls, or
radon gas; (c) any chemical,
material or substance defined as or
included in the definition of "toxic waste,"
"hazardous substances," "hazardous wastes," "hazardous materials,"
"extremely
hazardous waste," "restricted hazardous
8
<PAGE>
waste," or "toxic substances" or words of
similar import under any Environmental
Laws; (d) any other chemical, material or substance, exposure to which
is
prohibited, limited or regulated by any
governmental authority or agency or may
or could pose a hazard to the health and
safety of the occupants of Borrower's
owned or leased real property or the owners and/or occupants of property
adjacent to or surrounding such real property or
any other person coming upon
such real property or adjacent property; and
(e) any other chemical, materials
or substance that may or could pose a hazard to the environment
and are or
become subject to regulation by any Environmental Laws.
"INTEREST PERIOD"
means with respect to any LIBOR Loan, the
period commencing on the date such loan
is made and ending, as the Borrower may
select, pursuant to this Agreement, on the
numerically corresponding day in the
first, second, third or sixth calendar month
thereafter, except that each such
Interest Period that commences on the last
Business Day of a calendar month (or
on any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month)
shall end on the last Business Day of the
appropriate subsequent calendar month;
provided that if an Interest Period would
end on a day that is not a Business
Day, such Interest Period shall be extended
to the next Business Day unless such Business Day would fall in the next
calendar month, in which event such
Interest Period shall end on the immediately
preceding Business Day.
"LENDER EXPENSES"
means all costs and expenses reasonably
incurred by Bank in connection with the preparation,
negotiation, execution,
delivery, filing, and administration of the Loan Documents, and of any
amendment, modification, extension, renewal
or supplement to the Loan Documents,
including, without limitation, the fees and out-of-pocket
expenses of counsel
for Bank, incurred in connection with advising Bank as to its rights and
responsibilities hereunder and structuring, drafting, reviewing,
amending, or
otherwise involving the Loan Documents, and all costs and
expenses, including
court costs, incurred in connection with
enforcement of the Loan Documents, or
any amendment, modification, or supplement thereto, whether by
negotiation,
legal proceedings, or otherwise.
"LETTER OF
CREDIT" has the meaning set forth in Section 0.
"LETTER OF
CREDIT COMMITMENT" means Bank's
commitment to issue
letters of credit from time to time in accordance with Section 0 of
this
Agreement.
"LETTER OF CREDIT
COMMITMENT AMOUNT" means Eight Million Dollars
($8,000,000), less the amount of the outstanding principal balance of the
Revolving Loans.
"LIBOR LOAN" means any loan under this Agreement bearing
interest
at a rate based upon Adjusted LIBOR Interest Rate.
"LIEN" means
any mortgage, deed of trust, pledge, security
interest, hypothecation, assignment, deposit arrangement, encumbrance, lien
(statutory or other), or preference, priority, or other security agreement
and/or interest or preferential
arrangement, charge, or encumbrance of any kind
or nature whatsoever (including, without limitation, any
conditional sale or
other title retention agreement, any financing lease
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 law of any
jurisdiction to evidence any of the foregoing).
9
<PAGE>
"LOAN" means a Revolving Loan.
"LOAN DOCUMENTS"
means collectively this Agreement, any note
executed by Borrower to the order of Bank
and any other agreements or documents,
whether now or hereafter existing, executed
or delivered in connection with this
Agreement or any amendment thereto, and any amendments, supplements,
modifications, renewals, extensions, or refundings of any of the foregoing
documents.
"LONDON INTERBANK OFFERED RATE" means for any Interest Period
for
a LIBOR Loan the rate per annum for United
States Dollar deposits quoted by Bank
as the Inter-Bank Market Offered
Rate, with the understanding that such rate is
quoted by Bank for the purpose of calculating
effective rates of interest for
the loans making reference thereto, on the
first day of an Interest Period for
delivery of funds on said date for a period
approximately equal to the number of
days in the Interest Period and in an amount approximately equal to the
principal amount to which such Interest Period
applies. Borrower
understands
and agrees that Bank may base its quotation on the
Inter-Bank Market Offered
Rate upon such offers or other market indicators of the
Inter-Bank Market as
Bank in its discretion deems appropriate
including, but not limited to, the rate
offered for U.S. dollar deposits on the London Interbank Market.
"MATURITY DATE"
means June 15, 2007,
or such other date as Bank
and Borrower may agree upon in writing from
time to time.
"MULTIEMPLOYER PLAN" means a Plan described in Section
4001(a)(3)
of ERISA.
"OBLIGATIONS" means any and all loans, lines of credit,
advances,
letter of credit obligations, debts, overdrafts, liabilities,
indebtedness,
lease payments, guaranties, covenants, and duties
owing by Borrower to Bank of
any kind and description (whether
advanced pursuant to or evidenced by the Loan
Documents or any other instrument or agreement
between Bank and Borrower), any
debt, liability, or obligation owing by Borrower to
others that Bank may have
obtained by assignment or otherwise, any
interest not paid when due, all Lender
Expenses, and all renewals, extensions, and
modifications of the foregoing, or
any part thereof, whether direct or
indirect, absolute or contingent, due or to
become due, now existing or hereafter arising.
"PBGC" means
the Pension Benefit Guaranty Corporation or any
entity succeeding to any or all of its functions under ERISA.
"PERMITTED LIENS" shall have the meaning assigned to such term
in
Section 0 of this Agreement.
"PERSON" means
an individual, partnership, limited liability
company, corporation, business trust, joint
stock company, trust, unincorporated
association, joint venture, governmental
authority, or other entity of whatever
nature.
"PLAN" means
any pension plan that is covered by Title IV of
ERISA and in respect of which any Borrower
or a Commonly Controlled Entity is an
"employer" as defined in Section 3(5) of ERISA.
"PRIME LOAN" means any loan under this Agreement bearing
interest
at a rate based upon the Prime Rate.
10
<PAGE>
"PRIME RATE" means the Bank's announced rate of interest
referred
to as its prime rate used as a
reference point from which the cost of credit to
customers may be calculated. The Prime Rate is subject to
change from time to
time. The Prime Rate is not intended to be
the lowest rate of interest charged
by the Bank to its borrowers, and Bank
may make loans to other Persons bearing
interest at, above, or below the Prime Rate.
"PROHIBITED
TRANSACTION" means
any transaction set forth in
Section 406 of ERISA or Section 4975 of the Code.
"REPORTABLE EVENT"
means any of the
events set forth in Section
4043 of ERISA.
"REVOLVING LOANS" shall have the meaning assigned to such term
in
Section 0 of this Agreement.
"REVOLVING NOTE"
means the promissory note described in
Subsection 0.
"SUBSIDIARY" means,
as to the Borrower, a corporation,
association, trust, or other business entity of which
shares of stock or other
ownership interests having ordinary voting power
(other than stock or interest
having such power only by reason of the
happening of a contingency) to elect a
majority of the board of directors or other managers of
such corporation or
business entity are at the time owned, or the
management of which is otherwise
controlled, directly, or indirectly through
one or more intermediaries, or both,
by the Borrower.
ACCOUNTING TERMS.
All accounting terms not specifically defined
in
this Agreement shall be construed in
accordance with GAAP consistent with those
applied in the preparation of the financial
statements referred to in Section 0,
and all financial data submitted pursuant
to this Agreement shall be prepared in
accordance with GAAP.
LOANS AND TERMS OF PAYMENT
REVOLVING CREDIT.
Upon the request of
Borrower, made at any time and
from time to time from the date hereof until
the Maturity Date, and so long as
no Event of Default has occurred,
Bank shall make loans (the "Revolving Loans")
to Borrower in an aggregate principal amount not to exceed at any time
outstanding the Commitment Amount. Subject to the terms of this Agreement,
loans made by Bank may be repaid and reborrowed, up to and including
the
Maturity Date. If at any time and for any reason the
amount of advances made
pursuant to this Section exceed the above
dollar limitation, then Borrower, upon
Bank's election and demand, shall
immediately pay to Bank in cash the amount of
such excess.
MANNER OF REQUESTING.
PRIME LOANS.
Except for Sweep Loans described below,
Bank
------------------------------------------------------------
is authorized to make a Prime
Revolving Loan or Base Rate Loan upon written or,
--------------------------------------------------------------------------------
at the discretion of Bank, telephonic instructions received
from any person
--------------------------------------------------------------------------------
purporting to be a person identified in the attached
EXHIBIT 0 or such other
--------------------------------------------------------------------------------
persons as Borrower may from time to time designate in
writing to Bank.
Upon
--------------------------------------------------------------------------------
receipt of such instructions and fulfillment of
the applicable conditions set
--------------------------------------------------------------------------------
forth in Article 3, Bank shall make the
Revolving Loan to Borrower by crediting
--------------------------------------------------------------------------------
the amount thereof to the Borrower's account with
Bank. Subject to the
terms
--------------------------------------------------------------------------------
hereof, Bank shall make Prime Revolving
Loans to Borrower in an amount equal to
--------------------------------------------------------------------------------
the amount by which the amount of checks
clearing any designated disbursement
--------------------------------------------------------------------------------
bank account that Borrower may now or hereafter have with Bank
exceeds the
--------------------------------------------------------------------------------
amount of collected funds in the
disbursement account's related depository bank
--------------------------------------------------------------------------------
11
<PAGE>
account that Borrower may now or hereafter
have with Bank ("Sweep Loans"). The
--------------------------------------------------------------------------------
existence of such an excess of clearing checks
shall be deemed to be a request
--------------------------------------------------------------------------------
by Borrower for any such Prime Revolving Loan. Each Sweep Loan shall be a
--------------------------------------------------------------------------------
Revolving Loan and must satisfy all requirements for a Revolving Loan.
--------------------------------------------------------------------------------
LIBOR LOANS.
For any Revolving Loan that is to be a
LIBOR
------------------------------------------------------------
Loan, the Borrower shall request such a
Loan by delivering a LIBOR Loan Request
--------------------------------------------------------------------------------
to Bank no later than 11:00 a.m. (Boise,
Idaho time) at least two (2) Business
--------------------------------------------------------------------------------
days prior to the requested date of the Loan. A LIBOR Loan Request shall
--------------------------------------------------------------------------------
specify (a) the date of the requested Loan,
(b) the amount of such Loan, and (c)
--------------------------------------------------------------------------------
the requested duration of the Interest Period for the Loan, and
shall be in
--------------------------------------------------------------------------------
substantially the form of the attached EXHIBIT 0 executed by any person
--------------------------------------------------------------------------------
purporting to be a person identified in EXHIBIT 0 or such other persons
as
--------------------------------------------------------------------------------
Borrower may from time to time designate in
writing to Bank. If
Bank determines
--------------------------------------------------------------------------------
that the requested Loan is available and
will comply with this Agreement, and if
--------------------------------------------------------------------------------
no Event of Default has occurred and is
continuing, Bank shall make the LIBOR
--------------------------------------------------------------------------------
Loan to Borrower by crediting the
amount thereof to the Borrower's account with
--------------------------------------------------------------------------------
Bank.
-----
INTEREST ON THE
REVOLVING LOANS. Each
Revolving Loan shall be a
Prime Loan, a Base Rate Loan, or a LIBOR Loan, as selected by
Borrower in
accordance with the terms of this Agreement.
Each Revolving Loan that is a Prime Loan shall bear interest
------------------------------------------------------------
at a fluctuating per annum rate equal to the Prime Rate increased by
the
--------------------------------------------------------------------------------
applicable Prime Margin set forth below.
Bank's Prime Rate may
change from time
--------------------------------------------------------------------------------
to time, and the interest payable will continue to fluctuate
at the rate as
--------------------------------------------------------------------------------
stated herein. Any changes to the Prime Rate shall become
effective without
--------------------------------------------------------------------------------
prior notice to Borrower on the date on which the Prime Rate changes.
--------------------------------------------------------------------------------
Each Revolving
Loan that is a Base Rate Loan shall bear
------------------------------------------------------------
interest at a fluctuating per annum rate
equal to the Base Rate increased by the
--------------------------------------------------------------------------------
applicable LIBOR Margin set forth below.
The Base Rate may
change from time to
--------------------------------------------------------------------------------
time, and the interest payable will
continue to fluctuate at the rate as stated
--------------------------------------------------------------------------------
herein. Any changes to the Base Rate shall become effective without
prior
--------------------------------------------------------------------------------
notice to Borrower on the date on which the Base Rate changes.
-------------------------------------------------------------------------
Each Revolving Loan that is a LIBOR Loan shall bear interest
------------------------------------------------------------
at a fluctuating per annum rate equal to the
Adjusted LIBOR Interest Rate for
--------------------------------------------------------------------------------
the applicable Interest Period, as quotes are available, increased by the
--------------------------------------------------------------------------------
applicable LIBOR Margin set forth below.
Any changes to the
LIBOR Margin shall
--------------------------------------------------------------------------------
not apply to LIBOR Loans outstanding or
requested on the date the LIBOR Margin
--------------------------------------------------------------------------------
is adjusted.
-------------
The Prime Margins, the LIBOR Margins, the Commitment
-----------------------------------------------------------
Margins, and the L/C fees are as follows:
------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------------------
FUNDED DEBT RATIO
PRIME LIBOR
COMMITMENT
L/C FEE
---------------------------------------
------ ------ ----------- --------
<S>
<C> <C>
<C>
<C>
less than 1.00:1.00
0.0% 1.50%
0.15% 1.25%
---------------------------------------
------ ------ ----------- --------
less than 1.50:1.00 but greater than or
0.125% 1.75%
0.25%
1.375%
equal to 1.00:1.00
---------------------------------------
------ ------ ----------- --------
less than 2.00:1.00 but greater than or
0.25%
2.00%
0.30% 1.50%
equal to 1.50:1.00
---------------------------------------
------ ------ ----------- --------
less than or equal to 2.50:1.00 but
0.50% 2.25%
0.40% 1.75%
greater than or equal to 2.00:1.00
---------------------------------------
------ ------ ----------- --------
greater than 2.50:1.00
0.50% 2.25%
0.40% 1.75%
------------------------------------------------------------------------------
</TABLE>
The Prime Margin, LIBOR Margin, Commitment
Margin, and L/C
------------------------------------------------------------
Fee shall be based upon the Borrower's
Funded Debt Ratio (defined in paragraph
--------------------------------------------------------------------------------
0) determined on a rolling four quarter basis from the
Borrower's financial
--------------------------------------------------------------------------------
statements delivered to Bank and adjusted,
if necessary, on the first day of the
--------------------------------------------------------------------------------
second month after Bank's receipt of financial statements that show an
--------------------------------------------------------------------------------
adjustment is necessary.
--------------------------
12
<PAGE>
Borrower's Funded
Debt Ratio shall be the ratio of
----------------------------------------------------------
Borrower's Funded Debt to four quarter rolling
EBITDA. The term
"Funded Debt"
--------------------------------------------------------------------------------
shall mean, as of the date of determination as
applied to Borrower, the sum of
--------------------------------------------------------------------------------
(i) all indebtedness of Borrower owing to third parties for money
borrowed,
--------------------------------------------------------------------------------
including capitalized leases of Borrower
having a final maturity of one (1) year
--------------------------------------------------------------------------------
or more from the date of creation (including
that portion of the principal of
--------------------------------------------------------------------------------
such indebtedness due within one (1)
year from the date of such determination),
--------------------------------------------------------------------------------
(ii) any indebtedness of the Borrower having a final
maturity within one (1)
--------------------------------------------------------------------------------
year from such date which may be renewed or extended at the option
of the
--------------------------------------------------------------------------------
Borrower for more than one (1) year from such date, (iii) the
outstanding
--------------------------------------------------------------------------------
balance of the Revolving Loans, (iv) all
obligations for the deferred purchase
--------------------------------------------------------------------------------
price of any property or assets, including,
without limitation, operating leases
--------------------------------------------------------------------------------
for such purpose (excluding trade payables), (v)
all obligations for deferred
--------------------------------------------------------------------------------
closure/post closure, and (vi) all obligations of Borrower
created or arising
--------------------------------------------------------------------------------
with respect to property or assets acquired
under any conditional sales contract
--------------------------------------------------------------------------------
or other title retention agreement or
incurred as financing, less the amount of
--------------------------------------------------------------------------------
Borrower's short term investments as of the date of determination.
The term
--------------------------------------------------------------------------------
"EBITDA" shall mean, for any period, as applied to Borrower, the sum of
--------------------------------------------------------------------------------
Borrower's Income from Operations (consistent with
GAAP and as reported in the
--------------------------------------------------------------------------------
Company's filings with the Securities and
Exchange Commission), plus the sum of
--------------------------------------------------------------------------------
the following items to the extent they were deducted to compute
Borrower's
--------------------------------------------------------------------------------
Income from Operations: non-cash accretion of closure/post-closure
-------------------------------------------------------------------------
obligations, plus depreciation, plus amortization, plus other non-cash
-----------------------------------------------------------------------------
charges.
--------
REVOLVING NOTE.
All Revolving Loans
made by the Bank under this
Agreement shall be evidenced by a single
promissory note of the Borrower in the
stated principal amount of the Commitment Amount executed by Borrower
substantially in the form of Exhibit 0 (the "Revolving Note").
REPAYMENT. Interest
accrued on Prime Revolving Loans and Base
Rate Loans shall be paid on or before the 10th day
of each month in an amount
equal to the interest accrued as of the last
day of the immediately preceding
month. Interest accrued on LIBOR Revolving Loans
shall be paid on the last day
of the Interest Period with respect thereto and, in the case
of an Interest
Period greater than three months (if such
an Interest Period is permitted under
this Agreement), at three month intervals after the
first day of such Interest
Period. All outstanding principal and accrued interest of
the Revolving Loans
shall be paid in full on the Maturity Date.
COMMITMENT FEE.
The Borrower shall pay
to the Bank a commitment
fee on the average daily unused portion
of the Commitment Amount from the date
of this Agreement until the Maturity Date at the per annum rate of the
Commitment Margin set forth in paragraph 0, payable in arrears on
the first
Business Day of each of Borrower's fiscal
quarter during the term of the Bank's
commitment to make Revolving Loans and on the Maturity Date.
ORIGINATION FEE.
The Borrower shall pay
Bank an origination fee
for the Revolving Loans in the amount of Sixteen Thousand
Dollars ($16,000).
The origination fee shall be paid on the date of this Agreement. The
origination fee shall represent an unconditional payment to Bank in
consideration of Bank's agreement to extend
financial accommodations to Borrower
pursuant to this Agreement.
USE OF PROCEEDS. The proceeds of the Revolving Loans
shall be
used by the Borrower to provide financing for Borrower's
Accounts and other
working capital needs. The Borrower shall not, directly
or indirectly, use any
part of such proceeds for the purpose of
purchasing or carrying any margin stock
within the meaning of Regulation U of the Board of Governors of the
Federal
Reserve System or to extend credit to any person
for the purpose of purchasing
or carrying any such margin stock, or for any purpose that violates,
or is
inconsistent with, Regulation X of such Board of Governors.
13
<PAGE>
LETTERS OF
CREDIT. Subject to the terms and conditions of this
Agreement, as a subfeature of the Revolving Loans, Bank shall
issue for the
account of Borrower from time to time until the
Maturity Date such standby or
commercial letters of credit to be used by Borrower for general
corporate
purposes (individually a "Letter of Credit" and collectively the
"Letters of
Credit") as Borrower may request under this Section.
Subject to the terms
of
this Agreement, Letters of Credit may be
drawn, reimbursed, or returned undrawn,
as applicable, up to and including the Maturity Date.
At no time,
however,
shall the total face amount of all Letters of Credit outstanding,
less any
partial draws under such Letters of Credit exceed the Letter of Credit
Commitment Amount.
APPLICATIONS. Prior to
issuance of each Letter of Credit, and in
all events prior to any daily cutoff time
Bank may have established for purposes
thereof, Borrower shall deliver to Bank an executed standard Bank form of
application for issuance of a letter of credit with such other
documents,
instruments and agreements as Bank may reasonably require.
FACILITY TERMINATION.
The commitment by Bank to issue Letters of
Credit shall, unless earlier terminated in accordance with the
terms of this
Agreement, automatically terminate on the Maturity Date. No Letter of Credit
shall expire on a date that is after the Maturity Date
without Bank's prior
written approval.
FEES. Borrower
shall pay Bank, on demand, Bank's
standard fees
for issuing or administering a commercial Letter of Credit.
With respect to
each standby Letter of Credit, Borrower shall pay Bank
a fee equal to the L/C
Fee (set forth in paragraph 0) per annum of the face
amount of the Letter of
Credit, payable quarterly in advance.
FORM. Each
Letter of Credit shall be subject to the
terms and
conditions of the application and agreement
submitted to Bank by Borrower and
otherwise in form and substance reasonably
satisfactory to Bank and in favor of
beneficiaries reasonably satisfactory to Bank. Bank may, in its reasonable
discretion, refuse to issue a Letter of Credit due to the nature of the
transaction or its terms or in connection with
any transaction where Bank, due
to the beneficiary or the nationality
or residence of the beneficiary, would be
prohibited by any applicable law, regulation or
order from issuing such Letter
of Credit. In all cases, however, the Bank
shall use its best efforts to issue
a Letter of Credit reasonably acceptable to Bank and Borrower.
REIMBURSEMENT.
Immediately after
the payment by Bank of any
drawing under any Letter of Credit (a "Drawing Payment") and
not later than
12:00 noon (Boise, Idaho time) on the date of such Drawing
Payment, Borrower
shall make or cause to be made a payment in
the amount of such Drawing Payment
(a "Reimbursement Payment") to Bank. Borrower may, to the extent Revolving
Loans then are available under this Agreement,
make any Reimbursement Payment
with the proceeds of a Revolving Loan. Bank may, if it so elects (but
shall
have no obligation to), treat any Drawing
Payment as a Prime Loan. The right of
Bank to treat a Drawing Payment as a Prime Loan
shall not be affected by the
occurrence or existence of any Event of Default, the failure of
Borrower to
satisfy any conditions precedent to a Loan, or any other circumstance or
condition.
REIMBURSEMENT
OBLIGATIONS ABSOLUTE.
The obligation of
Borrower
to reimburse Bank for Drawing Payments (such obligation referred to as a
"Reimbursement Obligation") shall be absolute, unconditional and
irrevocable,
and shall be performed strictly in
accordance with the terms of this Agreement
and any Letter of Credit agreement.
14
<PAGE>
METHOD OF PAYMENT. All payments shall be made to Bank at its
Corporate Banking office in Boise, Idaho in
lawful money of the United States in
immediately available funds. Bank shall send Borrower a monthly
statement of
the amount of interest accrued during the
preceding month. No
checks, drafts,
or other instruments received by Bank
purportedly in satisfaction of any of the
Obligations shall constitute payment thereof unless
and until such instruments
have actually been collected. All payments received after 11:00 a.m.
Boise,
Idaho time shall be considered to have been
received the next Business Day. The
Borrower authorizes the Bank, if and to the
extent payment is not made when due
under any Loan Document, to charge from
time to time against any account of the
Borrower with the Bank any amount so due.
In case the due date
of any payment
falls on a day that is not a Business Day,
such payment shall instead be due the
next succeeding Business Day, and interest shall
continue to accrue.
Bank may
note the date, amount and interest rate (and Interest
Period with respect to
LIBOR Loans) of each Loan and each payment of principal and interest
with
respect hereto in Bank's books and records (either manually
or by electronic
entry), which notation shall be conclusive evidence of
the information noted,
absent manifest error. Unless otherwise agreed or
required by applicable law,
payments will be applied first to any unpaid collection costs and
any late
charges, then to any unpaid interest, and any remaining
amount to principal.
PREPAYMENTS. The
Borrower may prepay any or all Prime Loans
without
penalty or premium. A LIBOR Loan may be prepaid in
whole or in part only on the
last day of the Interest Period for
such Loan, unless Borrower pays to Bank the
prepayment funding loss indemnification pursuant to Section 0.
LATE CHARGES AND
DEFAULT INTEREST. If
Bank has not received the full
amount of any payment by the end of fifteen (15)
calendar days after the date
due, including the balance due at
maturity, Borrower shall pay a late charge to
Bank in the amount of five percent (5%) of the overdue
payment of principal
and/or interest. Borrower shall pay the late charge
promptly, but only once on
each late payment. In addition to any late charges that may be
assessed as
herein provided, the outstanding balance of
the Loans after the occurrence of an
Event of Default shall accrue interest
from the date of the Event of Default at
the rate equal to four (4) percentage
points per annum in excess of the interest
rate that would otherwise be charged if no Event
of Default existed. If
Bank
shall waive in writing or Borrower shall cure such Event of Default, the
interest rate shall revert to the
non-default rate from and after such waiver or
completion of such cure, until another such Event of Default.
ADDITIONAL INTEREST
RATE PROVISIONS.
UNAVAILABLE LIBOR
LOANS. If Bank shall have determined
(which
determination shall be conclusive and binding)
that for any reason adequate and
reasonable means do not exist for
ascertaining the Adjusted LIBOR Interest Rate
for any or all Interest Periods, Bank shall
give notice of such determination to
the Borrower. If such notice is given, and until
such notice has been withdrawn
by Bank, no additional LIBOR Loans for such
Interest Periods shall be made and
no additional conversions of Loans t
