EXECUTION COPY
U.S. $1,000,000,000
FIVE-YEAR CREDIT AGREEMENT
Dated as of June 4, 2004
Among
MONSANTO COMPANY
as Borrower,
THE INITIAL LENDERS NAMED HEREIN
as Initial Lenders,
CITIBANK, N.A.
as Administrative Agent,
JPMORGAN CHASE BANK
as Syndication Agent,
ABN AMRO BANK N.V.
THE BANK OF TOKYO-MITSUBISHI, LTD.
and
BANK OF AMERICA, N.A.
as Co-Documentation Agents
and
CITIGROUP GLOBAL MARKETS INC. and J.P. MORGAN SECURITIES INC.
as Joint Lead Arrangers and Joint Bookrunners
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms...............................................................................1
---------------------- SECTION 1.02. Computation of Time Periods........................................................................11
---------------------------- SECTION 1.03. Accounting Terms...................................................................................11
-----------------
ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The Revolving Credit Advances......................................................................11
------------------------------ SECTION 2.02. Making the Revolving Credit Advances...............................................................11
------------------------------------- SECTION 2.03. The Competitive Bid Advances.......................................................................12
----------------------------- SECTION 2.04. Fees...............................................................................................15
----- SECTION 2.05. Optional Termination or Reduction of the Commitments...............................................15
----------------------------------------------------- SECTION 2.06. Repayment of Revolving Credit Advances.............................................................15
--------------------------------------- SECTION 2.07. Interest on Revolving Credit Advances; Regulation D Compensation...................................15
----------------------------------------------------------------- SECTION 2.08. Interest Rate Determination........................................................................16
---------------------------- SECTION 2.09. Optional Conversion of Revolving Credit Advances...................................................17
------------------------------------------------- SECTION 2.10. Optional Prepayments of Revolving Credit Advances..................................................17
-------------------------------------------------- SECTION 2.11. Increased Costs....................................................................................17
---------------- SECTION 2.12. Illegality.........................................................................................19
----------- SECTION 2.13. Payments and Computations..........................................................................20
-------------------------- SECTION 2.14. Taxes..............................................................................................20
------ SECTION 2.15. Sharing of Payments, Etc...........................................................................22
------------------------- SECTION 2.16. Use of Proceeds....................................................................................22
---------------- SECTION 2.17. Increase in the Aggregate Commitments..............................................................22
-------------------------------------- SECTION 2.18. Evidence of Debt...................................................................................23
-----------------
ARTICLE III CONDITIONS TO EFFECTIVENESS AND LENDING SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03....................................24
---------------------------------------------------------------- SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing and Commitment Increase....................25
-------------------------------------------------------------------------------- SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing.............................................25
-------------------------------------------------------
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SECTION 3.04. Determinations Under Section 3.01..................................................................26
----------------------------------
ARTICLE IV REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Borrower.....................................................26
----------------------------------------------- SECTION 4.02. Representation and Warranty of the Lenders.........................................................27
-------------------------------------------
ARTICLE V COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants..............................................................................27
---------------------- SECTION 5.02. Negative Covenants.................................................................................28
------------------- SECTION 5.03. Financial Covenant.................................................................................29
-------------------
ARTICLE VI EVENTS OF DEFAULT
SECTION 6.01. Events of Default..................................................................................30
------------------
ARTICLE VII THE AGENT
SECTION 7.01. Authorization and Action...........................................................................31
------------------------- SECTION 7.02. Agent's Reliance, Etc..............................................................................32
---------------------- SECTION 7.03. Citibank and Affiliates............................................................................32
------------------------ SECTION 7.04. Lender Credit Decision.............................................................................32
----------------------- SECTION 7.05. Indemnification....................................................................................32
---------------- SECTION 7.06. Successor Agent....................................................................................33
---------------- SECTION 7.07. Other Agents.......................................................................................33
-------------
ARTICLE VIII MISCELLANEOUS
SECTION 8.01. Amendments, Etc....................................................................................33
---------------- SECTION 8.02. Notices, Etc.......................................................................................33
------------- SECTION 8.03. No Waiver; Remedies................................................................................34
-------------------- SECTION 8.04. Costs and Expenses.................................................................................34
------------------- SECTION 8.05. Right of Set-off...................................................................................35
----------------- SECTION 8.06. Binding Effect.....................................................................................35
--------------- SECTION 8.07. Assignments and Participations.....................................................................35
------------------------------- SECTION 8.08. Confidentiality....................................................................................37
---------------- SECTION 8.09. Governing Law......................................................................................37
--------------
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SECTION 8.10. Execution in Counterparts..........................................................................37
-------------------------- SECTION 8.11. Jurisdiction, Etc..................................................................................38
------------------ SECTION 8.11.1 USA Patriot Act Notification......................................................................39
---------------------------- SECTION 8.12. Waiver of Jury Trial...............................................................................39
---------------------
Schedules - --------- Schedule I - List of Applicable Lending Offices Schedule 3.01(b) - Disclosed Litigation
Exhibits - -------- Exhibit A-1 - Form of Revolving Credit Note Exhibit A-2 - Form of Competitive Bid Note Exhibit B-1 - Form of Notice of Revolving Credit Borrowing Exhibit B-2 - Form of Notice of Competitive Bid Borrowing Exhibit C - Form of Assignment and Acceptance Exhibit D Form of Assumption Agreement
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FIVE YEAR CREDIT AGREEMENT
Dated as of June 4, 2004
MONSANTO COMPANY, a Delaware corporation (the "Borrower"), the banks, financial institutions and other institutional lenders (the "Initial Lenders") listed on the signature pages hereof, CITIBANK, N.A. ("Citibank"), as administrative agent (the "Agent") for the Lenders (as hereinafter defined), CITIGROUP GLOBAL MARKETS INC. and J.P. MORGAN SECURITIES INC., as joint lead arrangers and joint bookrunners (the "Joint Lead Arrangers"), JPMORGAN CHASE BANK, as syndication agent, and ABN AMRO BANK N.V., THE BANK OF TOKYO-MITSUBISHI, LTD. and BANK OF AMERICA, N.A., as co-documentation agents, agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):
"Advance" means a Revolving Credit Advance or a Competitive Bid
Advance.
"Affiliate" means, as to any Person, any other Person that, directly
or indirectly, controls, is controlled by or is under common control with
such Person or is a director or officer of such Person. For purposes of
this definition, the term "control" (including the terms "controlling",
"controlled by" and "under common control with") of a Person means the
possession, direct or indirect, of the power to vote 5% or more of the
Voting Stock of such Person or to direct or cause the direction of the
management and policies of such Person, whether through the ownership of
Voting Stock, by contract or otherwise.
"Agent's Account" means the account of the Agent maintained by the
Agent at Citibank with its office at 388 Greenwich Street, New York, New
York 10013, Account No. 36852248, Attention: William Clark.
"Aggregate Amount of Financing Outstanding" at any time means the
aggregate amount of proceeds received in connection with a Permitted
Receivables Financing, less (a) any amounts collected in connection with
the accounts receivable sold, conveyed or otherwise transferred pursuant to
such financing and (b) the amount of any defaulted accounts receivable the
uncollectibility of which is a risk assumed by the transferee of such
accounts receivable.
"Applicable Lending Office" means, with respect to each Lender, such
Lender's Domestic Lending Office in the case of a Base Rate Advance and
such Lender's Eurodollar Lending Office in the case of a Eurodollar Rate
Advance and, in the case of a Competitive Bid Advance, the office of such
Lender notified by such Lender to the Agent as its Applicable Lending
Office with respect to such Competitive Bid Advance.
"Applicable Margin" means, for Base Rate Advances, 0.0% per annum and,
for Eurodollar Rate Advances as of any date, a percentage per annum
determined by reference to the Public Debt Rating in effect on such date as
set forth below:
- ---------------------------------- --------------------------------
Public Debt Rating Applicable Margin for
S&P/Moody's Eurodollar Rate Advances
- ---------------------------------- -------------------------------- - ---------------------------------- -------------------------------- Level 1 A+ or A1 0.180% - ---------------------------------- -------------------------------- - ---------------------------------- -------------------------------- Level 2 Lower than Level 1 but at least A or A2 0.220% - ---------------------------------- -------------------------------- - ---------------------------------- -------------------------------- Level 3 Lower than Level 2 but at least A- or A3 0.305% - ---------------------------------- -------------------------------- - ---------------------------------- -------------------------------- Level 4 Lower than Level 3 but at least BBB+ or Baa1 0.500% - ---------------------------------- -------------------------------- - ---------------------------------- -------------------------------- Level 5 Lower than Level 4 0.800% - ---------------------------------- --------------------------------
"Applicable Percentage" means, for each date, a percentage per annum
determined by reference to the Public Debt Rating in effect on such date as
set forth below:
- ---------------------------------- -------------------------------
Public Debt Rating Applicable
S&P/Moody's Percentage - ---------------------------------- ------------------------------- - ---------------------------------- ------------------------------- Level 1 0.070% A+ or A1 - ---------------------------------- ------------------------------- - ---------------------------------- ------------------------------- Level 2 Lower than Level 1 but at least A or A2 0.080% - ---------------------------------- ------------------------------- - ---------------------------------- ------------------------------- Level 3 Lower than Level 2 but at least A- or A3 0.095% - ---------------------------------- ------------------------------- - ---------------------------------- ------------------------------- Level 4 Lower than Level 3 but at least BBB+ or Baa1 0.125% - ---------------------------------- ------------------------------- - ---------------------------------- ------------------------------- Level 5 0.200% Lower than Level 4 - ---------------------------------- -------------------------------
"Applicable Utilization Fee" means, for each date that the aggregate
principal amount of the Advances exceeds 25% of the aggregate Commitments,
a percentage per annum determined by reference to the Public Debt Rating in
effect on such date as set forth below:
- ---------------------------------- -------------------------------
Public Debt Rating Applicable
S&P/Moody's Utilization Fee - ---------------------------------- ------------------------------- - ---------------------------------- ------------------------------- Level 1 0.050% A+ or A1 - ---------------------------------- ------------------------------- - ---------------------------------- ------------------------------- Level 2 Lower than Level 1 but at least A or A2 0.050% - ---------------------------------- ------------------------------- - ---------------------------------- ------------------------------- Level 3 Lower than Level 2 but at least A- or A3 0.100% - ---------------------------------- -------------------------------
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- ---------------------------------- ------------------------------- Level 4 Lower than Level 3 but at least BBB+ or Baa1 0.125% - ---------------------------------- ------------------------------- - ---------------------------------- ------------------------------- Level 5 0.250% Lower than Level 4 - ---------------------------------- -------------------------------
"Assignment and Acceptance" means an assignment and acceptance entered
into by a Lender and an Eligible Assignee, and accepted by the Agent, in
substantially the form of Exhibit C hereto.
"Assuming Lender" has the meaning specified in Section 2.17(b).
"Assumption Agreement" has the meaning specified in Section
2.17(c)(ii).
"Base Rate" means a fluctuating interest rate per annum in effect from
time to time, which rate per annum shall at all times be equal to the
highest of:
(a) the rate of interest announced publicly by Citibank in New
York, New York, from time to time, as Citibank's base rate;
(b) the sum (adjusted to the nearest 1/4 of 1% or, if there is no
nearest 1/4 of 1%, to the next higher 1/4 of 1%) of (i)1/2of 1% per
annum, plus (ii) the rate obtained by dividing (A) the latest
three-week moving average of secondary market morning offering rates
in the United States for three-month certificates of deposit of major
United States money market banks, such three-week moving average
(adjusted to the basis of a year of 360 days) being determined weekly
on each Monday (or, if such day is not a Business Day, on the next
succeeding Business Day) for the three-week period ending on the
previous Friday by Citibank on the basis of such rates reported by
certificate of deposit dealers to and published by the Federal Reserve
Bank of New York or, if such publication shall be suspended or
terminated, on the basis of quotations for such rates received by
Citibank from three New York certificate of deposit dealers of
recognized standing selected by Citibank, by (B) a percentage equal to
100% minus the average of the daily percentages specified during such
three-week period by the Board of Governors of the Federal Reserve
System (or any successor) for determining the maximum reserve
requirement (including, but not limited to, any emergency,
supplemental or other marginal reserve requirement) for Citibank with
respect to liabilities consisting of or including (among other
liabilities) three-month U.S. dollar non-personal time deposits in the
United States, plus (iii) the average during such three-week period of
the annual assessment rates estimated by Citibank for determining the
then current annual assessment payable by Citibank to the Federal
Deposit Insurance Corporation (or any successor) for insuring U.S.
dollar deposits of Citibank in the United States; and
(c) 1/2 of one percent per annum above the Federal Funds Rate.
"Base Rate Advance" means an Advance that bears interest as provided
in Section 2.07(a)(i).
"Borrowing" means a Revolving Credit Borrowing or a Competitive Bid
Borrowing.
"Business Day" means a day of the year on which banks are not required
or authorized by law to close in New York City and, if the applicable
Business Day relates to any Eurodollar Rate Advances, on which dealings are
carried on in the London interbank market.
"Commitment" means as to any Lender (a) the amount set forth opposite
such Lender's name on the signature pages hereof, (b) if such Lender has
become a Lender hereunder pursuant to an Assumption Agreement, the amount
set forth in such Assumption Agreement or (c) if such Lender has entered
into any Assignment and Acceptance, the amount set forth for such Lender in
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the Register maintained by the Agent pursuant to Section 8.07(d), as such
amount may be reduced pursuant to Section 2.05 or increased pursuant to
Section 2.17.
"Commitment Date" has the meaning specified in Section 2.17(b).
"Commitment Increase" has the meaning specified in Section 2.17(a).
"Competitive Bid Advance" means an advance by a Lender to the Borrower
as part of a Competitive Bid Borrowing resulting from the competitive
bidding procedure described in Section 2.03 and refers to a Fixed Rate
Advance or a LIBO Rate Advance.
"Competitive Bid Borrowing" means a borrowing consisting of
simultaneous Competitive Bid Advances from each of the Lenders whose offer
to make one or more Competitive Bid Advances as part of such borrowing has
been accepted by the Borrower under the competitive bidding procedure
described in Section 2.03.
"Competitive Bid Note" means a promissory note of the Borrower of a
Competitive Bid Advance payable to the order of any Lender, in
substantially the form of Exhibit A-2 hereto, evidencing the indebtedness
of the Borrower to such Lender resulting from such Competitive Bid Advance
made by such Lender.
"Competitive Bid Reduction" has the meaning specified in Section 2.01.
"Confidential Information" means information that the Borrower
furnishes to the Agent or any Lender which information is non-public,
confidential or proprietary in nature, but does not include any such
information (a) that is or becomes generally available to the public other
than as the result of an unauthorized disclosure by the Agent or any Lender
or (b) that is or becomes available to the Agent or such Lender from a
source other than the Borrower and the Agent or such Lender had no reason
to believe that such source did not have legitimate possession of such
information or such source was under any obligation to keep such
information confidential.
"Consolidated" refers to the consolidation of accounts in accordance
with GAAP.
"Consolidated Net Worth" at any time, means the sum of the capital
stock accounts (excluding capital stock subscribed for and unissued),
surplus accounts (including earned surplus, capital surplus and the balance
of the current profit and loss account not transferred to surplus) and
other equity accounts (including accumulated currency adjustments,
unrealized investment or derivative gains and losses, minimum pension
liabilities and reserve for ESOP debt retirement) of the Borrower and its
Subsidiaries appearing on the most recent Consolidated balance sheet of the
Borrower and its Subsidiaries delivered pursuant to Section 5.01(f)(i) or
(ii), as applicable, prepared in accordance with generally accepted
accounting principles consistent with those applied in the preparation of
the financial statements referred to in Section 4.01(e).
"Convert", "Conversion" and "Converted" each refers to a conversion of
Revolving Credit Advances of one Type into Revolving Credit Advances of the
other Type pursuant to Section 2.08 or 2.09.
"Debt" of any Person means, without duplication, (a) all indebtedness
of such Person for borrowed money, (b) all obligations of such Person for
the deferred purchase price of property or services (other than trade
payables not overdue by more than 60 days incurred in the ordinary course
of such Person's business), (c) all obligations of such Person evidenced by
notes, bonds, debentures or other similar instruments, (d) all obligations
of such Person created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such agreement
in the event of default are limited to repossession or sale of such
property), (e) all obligations of such Person as lessee under leases that
have been or should be, in accordance with GAAP, recorded as capital
leases, (f) all obligations, contingent or otherwise, of such Person in
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respect of acceptances, letters of credit or similar extensions of credit,
(g) all obligations of such Person in respect of Hedge Agreements, (h) all
Debt of others referred to in clauses (a) through (g) above or clause (i)
below guaranteed directly or indirectly in any manner by such Person, or in
effect guaranteed directly or indirectly by such Person through an
agreement (1) to pay or purchase such Debt or to advance or supply funds
for the payment or purchase of such Debt, (2) to purchase, sell or lease
(as lessee or lessor) property, or to purchase or sell services, primarily
for the purpose of enabling the debtor to make payment of such Debt or to
assure the holder of such Debt against loss, (3) to sup ...
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