44,688,715.78
THIRD AMENDED AND RESTATED CREDIT AGREEMENT
As Amended and Restated as of June 26, 1996
Among
A I M MANAGEMENT GROUP INC.
as Borrower
and
THE TRANCHE A LENDERS NAMED HEREIN
and
CITIBANK, N.A.
as Lead Managing Agent
and
CHEMICAL BANK
and
NATIONSBANK, N.A. (SOUTH)
as Co-Managing Agents
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TABLE OF CONTENTS
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ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
Section 1.01. Certain Defined Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Section 1.02. Certain Defined Terms Relating to ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Section 1.03. Computation of Time Periods; Terms Generally . . . . . . . . . . . . . . . . . . . . . . . . 29
Section 1.04. Accounting Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
ARTICLE II
TRANCHE A LOANS
Section 2.01. The Tranche A Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Section 2.02. The Tranche A Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Section 2.03. Repayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Section 2.04. Termination or Reduction of the Tranche A Commitment . . . . . . . . . . . . . . . . . . . . 31
ARTICLE III
LOAN PROCEDURE AND PREPAYMENTS
Section 3.01. Loan Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Section 3.02. Mandatory Prepayments from Certain Asset Sales . . . . . . . . . . . . . . . . . . . . . . . 34
Section 3.03. Optional Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
ARTICLE IV
INTEREST, ETC.
Section 4.01. Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Section 4.02. Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Section 4.03. Conversion of Tranche A Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Section 4.04. Interest Rate Determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Section 4.05. Changes in Circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Section 4.06. Payments and Computations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Section 4.07. Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Section 4.08. Sharing of Payments, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Section 4.09. Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
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ARTICLE V
CONDITIONS OF LENDING
Section 5.01. Conditions to Third Restatement Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Section 5.02. Conditions to Each Tranche A Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
ARTICLE VI
REPRESENTATIONS AND WARRANTIES
Section 6.01. Organization, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Section 6.02. Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Section 6.03. Authorization, Etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Section 6.04. Approvals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Section 6.05. Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Section 6.06. Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Section 6.07. Liens; Insurance; Intellectual Property . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Section 6.08. Solvency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Section 6.09. Existing Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Section 6.10. Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Section 6.11. Accuracy of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Section 6.12. Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Section 6.13. Compliance with ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Section 6.14. Investment Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Section 6.15. Public Utility Holding Company Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Section 6.16. Margin Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Section 6.17. Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
ARTICLE VII
COVENANTS OF THE BORROWER
Section 7.01. Financial Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Section 7.02. Liens, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Section 7.03. Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Section 7.04. Consolidation, Merger, Sale of Assets, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . 57
Section 7.05. Limitation on Restricted Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Section 7.06. Sale of Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Section 7.07. Transactions with Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Section 7.08. Compliance with Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
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Section 7.09. Corporate Existence, Etc.; Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Section 7.10. Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Section 7.11. Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Section 7.12. Insurance Agency Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Section 7.13. Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Section 7.14. Conduct of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Section 7.15. Payment of Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Section 7.16. Issuance of Stock By Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Section 7.17. Modification of Agreements; Delivery of Opinions and Documents . . . . . . . . . . . . . . . 63
Section 7.18. Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Section 7.19. Descriptions of Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Section 7.20. Dividends of Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Section 7.21. Certain Guaranties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
ARTICLE VIII
EVENTS OF DEFAULT
Section 8.01. Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
ARTICLE IX
THE LEAD MANAGING AGENT AND THE
CO-MANAGING AGENTS
Section 9.01. Authorization and Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Section 9.02. Duties and Reliance, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Section 9.03. Lead Managing Agent, Co-Managing Agents and Affiliates . . . . . . . . . . . . . . . . . . . 73
Section 9.04. Tranche A Lender Credit Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Section 9.05. Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Section 9.06. Successor Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Section 9.07. Public Filings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
ARTICLE X
MISCELLANEOUS
Section 10.01. Amendments, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Section 10.02. Notices, Etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Section 10.03. No Waiver; Remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
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Section 10.04. Costs; Expenses and Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Section 10.05. Right of Set-off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Section 10.06. Binding Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Section 10.07. Assignments and Participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Section 10.08. Execution in Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Section 10.09. Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Section 10.10. GOVERNING LAW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Section 10.11. CONSENT TO JURISDICTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Section 10.12. WAIVER OF JURY TRIAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Section 10.13. No Third Party Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
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EXHIBITS
Exhibit 1.01 - Form of Assignment and Acceptance
Exhibit 2.02 - Form of Tranche A Note
Exhibit 3.01 - Form of Notice of Borrowing
Exhibit 5.01(d) - Form of Termination Agreement
Exhibit 5.01(f)(iv)-1 - Form of Borrower's Solvency Certificate
Exhibit 5.01(f)(iv)-2 - Form of Guarantor's Solvency Certificate
Exhibit 5.01(f)(v) - Form of Opinion of Carol F. Relihan, general
counsel to the Loan Parties
Exhibit 5.01(f)(vi) - Form of Opinion of Ballard Spahr Andrews &
Ingersoll, special counsel to the Loan Parties
Exhibit 7.21 - Form of Guaranty
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SCHEDULES
Schedule I - Tranche A Commitments and Applicable Lending Offices
Schedule 1.01A - Eligible Funds
Schedule 1.01B - Key Shareholders
Schedule 1.01C - Distribution Expenses
Schedule 1.01D - Investments
Schedule 3.02 - Excluded Asset Sales
Schedule 6.02 - Subsidiaries
Schedule 6.04 - Approvals
Schedule 6.09 - Existing Debt
Schedule 6.12 - Taxes
Schedule 6.13 - ERISA
Schedule 7.02 - Liens
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THIRD AMENDED AND RESTATED CREDIT AGREEMENT
AS AMENDED AND RESTATED AS OF JUNE 26, 1996
THIRD AMENDED AND RESTATED CREDIT AGREEMENT, dated as of June 26, 1996, among A I M Management Group Inc., a Delaware corporation (the "Borrower"), the lenders listed on the signature pages hereof (the "Tranche A Lenders"), Citibank, N.A. ("Citibank"), as administrative agent and lead managing agent (the "Lead Managing Agent", such term to include any successor Lead Managing Agent appointed pursuant to Article IX) for the Tranche A Lenders hereunder, and Chemical Bank ("Chemical Bank") and NationsBank, N.A. (South) ("NationsBank"), as Co-Managing Agents (the "Co-Managing Agents" and, together with the Lead Managing Agent, the "Managing Agents").
PRELIMINARY STATEMENTS:
(1) The Borrower entered into a Credit Agreement dated as of August 20, 1993, as amended and restated as of December 6, 1994 and November 30, 1995 (the "Existing Credit Agreement") with the banks (the "Existing Lenders") parties thereto, Citibank, as the lead managing agent for the Existing Lenders, and Chemical Bank and NationsBank, as co-managing agents.
(2) Pursuant to the Existing Credit Agreement, the Borrower requested that the Existing Lenders make advances to it in an aggregate principal amount of up to $89,915,938.78, on the terms and conditions set forth therein.
(3) The Borrower has requested that the Tranche A Lenders hereunder enter into this Agreement to amend and restate the Existing Credit Agreement. The Tranche A Lenders hereunder have indicated their willingness to amend and restate the Existing Credit Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, the parties hereto hereby agree that, subject to the satisfaction of the conditions set forth in Article V, the Existing Credit Agreement is amended and restated in its entirety to read as follows:
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ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
Section 1.01. Certain Defined Terms. As used in this Agreement, the following terms have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):
"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 10% 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.
"Agreement" means this Third Amended and Restated Credit Agreement, as the same may be amended, modified or supplemented from time to time.
"AIM Advisors" means A I M Advisors, Inc., a Delaware corporation and a Wholly-Owned Subsidiary of the Borrower.
"AIM Advisors Guaranty" means the amended and restated guaranty by AIM Advisors, dated as of the date hereof, as the same may be amended, modified or supplemented from time to time.
"AIM Capital Management" means A I M Capital Management, Inc., a Texas corporation and a Wholly-Owned Subsidiary of the Borrower.
"AIM Distributors" means A I M Distributors, Inc., a Delaware corporation and a Wholly-Owned Subsidiary of the Borrower.
"AIM Entities" has the meaning specified in the definition of "Permitted Deferred Load Amounts Securitization".
"AIM Fund Services" means A I M Fund Services, Inc., a Delaware corporation and a Wholly-Owned Subsidiary of the Borrower.
"AIM Funds" means all open-end mutual funds (and every series thereof) sponsored by the Borrower or any of its Subsidiaries or for which the Borrower or any of its Subsidiaries provides investment advisory, management, administrative, supervisory,
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consulting, underwriting or similar services from time to time, including such funds which are now existing and which may hereafter be organized.
"AIM Guaranties" means the AIM Advisors Guaranty and any Guaranty granted pursuant to Section 7.21, in each case as the same may be amended, modified or supplemented from time to time.
"AIM Money Market Fund" means any open-end AIM Fund that (i) complies with paragraphs (c)(2), (c)(3) and (c)(4) of Rule 2a-7, and (ii) uses the "Amortized Cost Method" (as such term is defined in Rule 2a-7) of calculating such AIM Fund's net asset value.
"AIM Participants" has the meaning specified in the definition of "Permitted Deferred Load Amounts Securitization".
"Applicable Lending Office" means, with respect to each Tranche A Lender, such Tranche A Lender's Domestic Lending Office in the case of a Base Rate Loan and such Tranche A Lender's Eurodollar Lending Office in the case of a Eurodollar Rate Loan.
"Applicable Margin" means, with respect to Base Rate Loans, Eurodollar Loans and Commitment Fees, in each case at any time and from time to time thereafter, a percentage per annum equal to the applicable percentage determined by reference to the Leverage Ratio as set forth below:
Leverage Base Rate Eurodollar Commitment
Ratio Loan Rate Loan Fee ------------------ ---------- ----------- ---------------
Less than 0.5:1 0.00% 0.50% 0.150%
0.5:1-1.5:1 0.00% 0.75% 0.175%
Greater than 1.5:1 0.00% 1.00% 0.225%
The Applicable Margin shall be determined on the date of delivery of each compliance certificate referred to in Section 7.18(d) by reference to the Leverage Ratio as of the last day of the most recently ended Fiscal Quarter of the Borrower as reported in such compliance certificate.
"Asset Sale" means any sale, lease, transfer or other disposition in a transaction or a series of related transactions of (i) any tangible or intangible asset (including shares of Capital Stock other than shares of Capital Stock issued by the Borrower) owned by
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the Borrower or any of its Subsidiaries other than in the ordinary course of business or (ii) any right or interest of the Borrower or any of its Subsidiaries in any Management Contract or any other contract with, or with respect to, any AIM Fund.
"Assignment and Acceptance" means an assignment and acceptance entered into by a Tranche A Lender and an Eligible Assignee, and accepted by the Lead Managing Agent and the Borrower, in accordance with Section 10.07 and in substantially the form of Exhibit 1.01.
"B Share Collateral Agreement" has the meaning specified in the B Share Credit Agreement.
"B Share Credit Agreement" means the credit agreement, dated as of June 26, 1996 among the Borrower, Citibank, as Administrative Agent, and the lenders party thereto (the "B Share Lenders").
"B Share Loans" means the loans granted by the B Share Lenders to the Borrower pursuant to the B Share Credit Agreement.
"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)
1/2 of 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)
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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 reasonably 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 Loans" means Tranche A Loans which bear interest at the rate in the manner set forth in Section 4.01(a)(i) and, if applicable, Section 4.01(b).
"Beneficial Ownersh ...
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