Looking for an agreement? Search from over 1 million agreements now.

Term Loan Agreement Dated 1/5/95.

This is an actual contract by AMD.
Browse the agreement preview below and buy the entire agreement for $35
Search This Document
EXHIBIT 10.39


================================================================================


TERM LOAN AGREEMENT


Dated as of January 5, 1995


among


ADVANCED MICRO DEVICES, INC.,


ABN AMRO BANK N.V.,
as Administrative Agent,


ABN AMRO BANK, N.V.
and
CIBC INC.,
as Co-Arrangers,


and


THE OTHER FINANCIAL INSTITUTIONS PARTY HERETO


================================================================================


TABLE OF CONTENTS


Section Page


ARTICLE I

DEFINITIONS .......................................................... 1
1.1 Defined Terms .............................................. 1
1.2 Other Definitional Provisions .............................. 19
(a) Defined Terms ......................................... 20
(b) The Agreement ......................................... 20
(c) Certain Common Terms .................................. 20
(d) Performance; Time ..................................... 20
(e) Contracts ............................................. 20
(f) Laws .................................................. 20
(g) Captions .............................................. 21
(h) Independence of Provisions ............................ 21
1.3 Accounting Principles ...................................... 21


ARTICLE II

THE LOANS ............................................................ 21
2.1 Term Loans ................................................. 21
2.2 Loan Accounts; Notes ....................................... 22
2.3 Procedure for Borrowing .................................... 22
2.4 Conversion and Continuation Elections ...................... 23
2.5 Optional Prepayments ....................................... 25
2.6 Repayment .................................................. 25
2.7 Interest ................................................... 25
2.8 Fees ....................................................... 26
(a) Administration Fee .................................... 26
(b) Other Fees ............................................ 26
2.9 Computation of Fees and Interest ........................... 27
2.10 Payments by the Company .................................... 27
2.11 Payments by the Banks to the Administrative
Agent ...................................................... 28
2.12 Sharing of Payments, etc ................................... 29


ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY ............................... 29
3.1 Taxes ...................................................... 29
3.2 Illegality ................................................. 33
3.3 Increased Costs and Reduction of Return .................... 34
3.4 Funding Losses ............................................. 35
3.5 Inability to Determine Rates ................................ 35
3.6 Certificates of Banks ...................................... 36
3.7 Survival ................................................... 36


i


ARTICLE IV

CONDITIONS PRECEDENT ................................................. 36
4.1 Effective Date; Conditions to Funding Date ................. 36
(a) Term Loan Agreement. This Agreement, executed by the
Company, the Administrative Agent and each of the Banks;


(b) Notes .................................................. 36
(c) Notice of Borrowing ................................... 37
(d) Resolutions: Incumbency ............................... 37
(e) Certificate of Incorporation; By-laws
and Good Standing ..................................... 37
(f) Legal Opinion ......................................... 37
(g) Payment of Fees ....................................... 37
(h) Certificate ........................................... 38
(i) Financial Statements .................................. 38
(j) Other Documents ....................................... 38
4.2 Conditions to Making, Conversion or
Continuation of Loans ...................................... 38
(a) Notice of Conversion/Continuation ..................... 38
(b) Continuation of Representations and Warranties ........ 38
(c) No Existing Default ................................... 38


ARTICLE V

REPRESENTATIONS AND WARRANTIES ....................................... 39
5.1 Corporate Existence and Power .............................. 39
5.2 Corporate Authorization; No Contravention .................. 39
5.3 Governmental Authorization ................................. 40
5.4 Binding Effect ............................................. 40
5.5 Litigation ................................................. 40
5.6 No Default ................................................. 40
5.7 ERISA Compliance ........................................... 41
5.8 Use of Proceeds; Margin Regulations ........................ 42
5.9 Title to Properties ........................................ 42
5.10 Taxes ...................................................... 43
5.11 Financial Condition ........................................ 43
5.12 Environmental Matters ...................................... 43
5.13 Regulated Entities ......................................... 44
5.14 No Burdensome Restrictions ................................. 44
5.15 Labor Relations ............................................ 45
5.16 Copyrights, Patents, Trademarks and Licenses,
etc.......................................................... 45
5.17 Subsidiaries ............................................... 45
5.18 Capitalization ............................................. 45
5.19 Insurance ................................................. 45
5.20 Full Disclosure ............................................ 45


ii.


ARTICLE VI

AFFIRMATIVE COVENANTS ................................................ 46
6.1 Financial Statements ....................................... 46
6.2 Certificates; Other Information ............................ 47
6.3 Notices .................................................... 48
6.4 Preservation of Corporate Existence, etc. .................. 50
6.5 Maintenance of Property .................................... 50
6.6 Insurance .................................................. 51
6.7 Payment of Obligations ..................................... 51
6.8 Compliance with Laws ....................................... 51
6.9 Inspection of Property and Books and Records ............... 51
6.10 Environmental Laws ......................................... 52
6.11 Use of Proceeds ............................................ 52


ARTICLE VII

NEGATIVE COVENANTS ................................................... 52
7.1 Limitation on Liens ........................................ 52
7.2 Disposition of Assets ...................................... 54
7.3 Consolidations and Mergers ................................. 54
7.4 Loans and Investments ...................................... 55
7.5 Transactions with Affiliates ............................... 56
7.6 Use of Proceeds ............................................ 56
7.7 Guaranty Obligations ....................................... 57
7.8 Compliance with ERISA ..................................... 57
7.9 Restricted Payments ........................................ 57
7.10 Modified Quick Ratio ....................................... 59
7.11 Minimum Tangible Net Worth ................................. 59
7.12 Leverage Ratio ............................................. 60
7.13 Fixed Charge Coverage Ratio ................................ 60
7.14 Change in Business ......................................... 60
7.15 Accounting Changes ......................................... 60


ARTICLE VIII

EVENTS OF DEFAULT .................................................... 60
8.1 Event of Default ........................................... 60
(a) Non-Payment ........................................... 60
(b) Representation or Warranty ............................ 60
(c) Specific Defaults ..................................... 60
(d) Other Defaults ........................................ 60
(e) Cross-Default ......................................... 61
(f) Bankruptcy or Insolvency .............................. 61
(g) Involuntary Proceedings ............................... 61
(h) ERISA ................................................. 62
(i) Monetary Judgments .................................... 63
(j) Non-Monetary Judgments ................................ 63
8.2 Remedies ................................................... 63
8.3 Rights Not Exclusive ....................................... 64
8.4 Certain Financial Covenant Defaults ........................ 64


iii.


ARTICLE IX

THE ADMINISTRATIVE AGENT ............................................. 64
9.1 Appointment and Authorization .............................. 64
9.2 Delegation of Duties ....................................... 65
9.3 Liability of Administrative Agent .......................... 65
9.4 Reliance by Administrative Agent ........................... 65
9.5 Notice of Default .......................................... 66
9.6 Credit Decision ............................................ 66
9.7 Indemnification ............................................ 67
9.8 Administrative Agent in Individual Capacity ................ 68
9.9 Successor Administrative Agent ............................. 68
9.10 Co-Agents and Co-Arrangers ................................. 69


ARTICLE X

MISCELLANEOUS ........................................................ 69
10.1 Amendments and Waivers ..................................... 69
10.2 Notices .................................................... 70
10.3 No Waiver; Cumulative Remedies ............................. 71
10.4 Costs and Expenses ......................................... 71
10.5 Indemnity .................................................. 72
(a) General Indemnity .............................. 72
(b) Environmental Indemnity ........................ 72
(c) Survival; Defense .............................. 73
10.6 Marshalling; Payments Set Aside ............................ 73
10.7 Successors and Assigns ..................................... 74
10.8 Assignments, Participations, etc ........................... 74
10.9 Set-off .................................................... 76
10.10 Automatic Debits of Fees ................................... 77
10.11 Notification of Addresses, Lending Offices,
etc.......................................................... 77
10.12 Counterparts ............................................... 77
10.13 Severability ............................................... 77
10.14 No Third Parties Benefitted ................................ 78
10.15 Time ....................................................... 78
10.16 Governing Law and Jurisdiction ............................. 78
10.17 Waiver of Jury Trial ....................................... 78
10.18 Entire Agreement ........................................... 79
10.19 Interpretation ............................................. 79


iv.


List of Exhibits and Schedules


Exhibit A Form of Note Exhibit B Notice of Conversion/Continuation Exhibit C Form of Compliance Certificate Exhibit D Form of Certificate Regarding Certain Restricted
Payments Exhibit E Form of Assignment and Acceptance Exhibit F Form of Legal Opinion


Schedule 1.1 Material Subsidiary Schedule 2.1 Commitments Schedule 5.5 Litigation Schedule 5.7 Certain ERISA Matters Schedule 5.11 Material Indebtedness Schedule 5.12 Certain Environmental Matters Schedule 5.17 Subsidiaries Schedule 5.18 Capitalization Schedule 7.1 Existing Liens Schedule 7.7 Existing Guaranty Obligations


v.


TERM LOAN AGREEMENT
-------------------


This TERM LOAN AGREEMENT is entered into as of January 5, 1995, among ADVANCED MICRO DEVICES, INC. a Delaware corporation (the "Company"), the several financial institutions from time to time party to this Agreement (collectively, the "Banks"; individually, a "Bank"), ABN AMRO BANK N.V., as administrative agent for the Banks, ABN AMRO BANK N.V. and CIBC Inc., as co-arrangers.


The Company has requested the Banks to make term loans to the Company in an aggregate principal amount of up to $150,000,000. The Banks are willing to make such loans to the Company upon the terms and subject to the conditions set forth in this Agreement.


Accordingly, in consideration of the mutual agreements, provisions and covenants contained herein, the parties agree as follows:


ARTICLE I


DEFINITIONS
-----------


1.1 Defined Terms. In addition to the terms defined elsewhere in this
------------- Agreement, the following terms have the following meanings:


"ABN" means ABN AMRO Bank N.V.
---


"Acquiree" has the meaning specified in Section 7.4(d).
--------


"Acquisition" means any transaction or series of related
-----------
transactions for the purpose of or resulting in (a) the acquisition,
directly or indirectly, of all or substantially all of the assets of a
Person, or of any business or division of a Person, (b) the acquisition,
directly or indirectly, of in excess of 50% of the capital stock,
partnership interests or equity of any Person or otherwise causing any
Person to become a Subsidiary of the Company, or (c) a merger or
consolidation or any other combination by the Company or any Subsidiary of
the Company with another Person (other than a Person that is a Subsidiary
of the Company) provided that the Company or the Company's Subsidiary is
the surviving entity.


"Administrative Agent" means ABN AMRO Bank N.V. in its capacity as
--------------------
administrative agent for the Banks


1.


hereunder, and any successor agent arising under Section 9.9.


"Administrative Agent's Payment Office" means the address for
-------------------------------------
payments set forth on the signature page hereto in relation to the
Administrative Agent or such other address as the Administrative Agent may
from time to time specify in accordance with Section 10.2.


"Affiliate" means, as to any Person, any other Person which,
---------
directly or indirectly, is in control of, is controlled by, or is under
common control with, such Person. A Person shall be deemed to control
another Person if the controlling Person possesses, directly or indirectly,
the power to direct or cause the direction of the management and policies
of the other Person, whether through the ownership of voting securities, by
contract or otherwise. Without limitation, any director, executive officer
or beneficial owner of 5% or more of the equity of a Person shall for the
purposes of this Agreement, be deemed to control the other Person. In no
event shall any Bank be deemed an "Affiliate" of the Company or any
Subsidiary of the Company.


"Agent-Related Persons" has the meaning specified in Section 9.3.
---------------------


"Aggregate Commitment" means the combined Commitments of the Banks
--------------------
in the amount of One Hundred Fifty Million Dollars ($150,000,000), as such
amount may be reduced from time to time pursuant to this Agreement.


"Agreement" means this Term Loan Agreement, as amended,
---------
supplemented or modified from time to time.


"Assignee" has the meaning specified in subsection 10.8(a).
--------


"Assignment and Acceptance" has the meaning specified in subsection
-------------------------
10.8(a).


"Attorney Costs" means and includes all fees and disbursements of
--------------
any law firm or other external counsel, the allocated cost of internal
legal services and all disbursements of internal counsel.


"Bank Affiliate" means a Person engaged primarily in the business
--------------
of commercial banking and that is a Subsidiary of a Bank, or a Subsidiary
of a Person of which a Bank is also a Subsidiary, or a Person of which a
Bank is a Subsidiary.


2.


"Banks" has the meaning specified in the introductory clause
-----
hereto.


"Base Rate" means the higher of:
---------


(a) the Prime Commercial Lending Rate of ABN as announced from time
to time by ABN at its Chicago office; and


(b) one-half percent per annum above the latest Federal Funds Rate.


Any change in the Prime Commercial Lending Rate announced by ABN
shall take effect at the opening of business on the day specified in the
public announcement of such change.


"Base Rate Loan" means a Loan that bears interest based on the Base
--------------
Rate.


"Borrowing" means a borrowing hereunder consisting of Loans made to
---------
the Company on the same day by the Banks pursuant to Article II.


"Business Day" means any day other than a Saturday, Sunday or other
------------
day on which commercial banks in New York City or San Francisco are
authorized or required by law to close and, if the applicable Business Day
relates to any Offshore Rate Loan, means such a day on which dealings are
carried on in the applicable offshore dollar interbank market.


"Capital Adequacy Regulation" means any guideline, request or
---------------------------
directive of any central bank or other Governmental Authority, or any other
law, rule or regulation, whether or not having the force of law, regarding
capital adequacy of any bank or of any corporation controlling a bank.


"Capital Lease Obligations" means all monetary obligations of the
-------------------------
Company or any of its Subsidiaries under any leasing or similar arrangement
which, in accordance with GAAP, is classified as a capital lease.


"Cash Equivalents" means:
----------------


(a) securities issued or fully guaranteed or insured by the
United States Government or any agency thereof having maturities of
not more than 12 months from the date of acquisition;


3.


(b) certificates of deposit, time deposits, Eurodollar time
deposits, repurchase agreements, reverse repurchase agreements, or
bankers' acceptances, having in each case a tenor of not more than
12 months, issued by any Bank, or by any U.S. commercial bank or
any branch or agency of a non-U.S. bank licensed to conduct
business in the U.S. having combined capital and surplus of not
less than $100,000,000 whose short term securities are rated at
least A-1 by S&P or at least P-1 by Moody's;


(c) taxable and tax exempt commercial paper of an issuer rated
at least A-1 by S&P or at least P-l by Moody's and in either case
having a tenor of not more than 270 days;


(d) medium term notes of an issuer rated at least AA by S&P or
at least Aa2 by Moody's and having a remaining term of not more
than 12 months after the date of acquisition by the Company or its
Subsidiaries;


(e) municipal notes and bonds which are rated at least SP-1 or
AA by S&P or at least MIG-2 or Aa by Moody's with tenors of not
more than 12 months;


(f) investments in taxable or tax-exempt money market funds
with assets greater than $500,000,000 and whose assets have average
maturities less than or equal to 180 days and are rated at least A-
1 by S&P or at least P-1 by Moody's; or


(g) money market preferred instruments of an issuer rated at
least A-1 by S&P or at least P-1 by Moody's with tenors of not more
than 12 months.


"CERCLA" has the meaning specified in the definition of
------
"Environmental Laws."


"Change in Control" means the direct or indirect acquisition by any
-----------------
person (as such term is used in Section 13(d) and Section 14(d)(2) of the
Exchange Act), or related persons constituting a group (as such term is
used in Rule 13d-5 under the Exchange Act), of


(i) beneficial ownership of issued and outstanding shares of
voting stock of the Company, the result of which acquisition is
that such person or such group possesses in excess of 20% of the
combined voting power of all then-issued and outstanding voting
stock of the Company, or


4.


(ii) the power to elect, appoint, or cause the election or
appointment of at least a majority of the members of the Board of
Directors.


"CIBC Inc." means CIBC Inc., a Delaware corporation.
---------


"CIBC Guaranty" means the Amended and Restated Guaranty dated as of
-------------
December 17, 1993, by the Company in favor of CIBC Inc., as amended.


"CIBC Leases" means the Land Lease dated as of September 22, 1992,
-----------
as amended by the First Amendment to Land Lease dated as of December 22,
1992 and by Second Amendment to Land Lease dated as of December 17, 1993,
and the Building Lease dated as of September 22, 1992, as amended by the
First Amendment to Building Lease dated as of December 22, 1992 and by
Second Amendment to Building Lease dated as of December 17, 1993, both of
which are between CIBC Inc. as Lessor and AMD International Sales &
Service, Ltd. as Lessee.


-- End of Preview --
Home| About Us| FAQ| Subscription | Contact Us |