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Title: |
Common Agreement |
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Entities: |
Canadian Imperial Bank of Commerce; Royal Bank of Canada; SR Telecom Inc.; Milbank, Tweed, Hadley & McCloy; Comunicacion y Telefonia Rural S.A.; Export Development Corporation; Inter-American Development Bank |
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Date: |
2003 |
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Size: |
Preview shows 20KB of 237KB total |
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Price: |
$82 |
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ID: |
#190115 |
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================================================================================
COMMON AGREEMENT
dated as of
December 22, 1999
among
COMUNICACION Y TELEFONIA RURAL S.A.,
EXPORT DEVELOPMENT CORPORATION
and
INTER-AMERICAN DEVELOPMENT BANK
================================================================================
{PAGE}
TABLE OF CONTENTS
This Table of Contents is not part of the Agreement to which
it is attached but is inserted for convenience of reference only.
{TABLE}
{CAPTION}
Page
----
{S} {C}
Section 1. Definitions and Accounting Matters.............................................................. 1
1.01 Certain Defined Terms......................................................................... 1
1.02 Principles of Construction.................................................................... 20
1.03 Accounting Terms and Determinations........................................................... 21
1.04 Conflicts..................................................................................... 21
Section 2. Senior Loan Agreements......................................................................... 21
2.01 Indebtedness Subject to this Agreement........................................................ 21
2.02 Senior Loans Pari Passu....................................................................... 21
2.03 Pro Rata Payment of Obligations............................................................... 21
2.04 Non-Pro Rata Prepayment....................................................................... 21
2.05 Optional Prepayments.......................................................................... 22
2.06 Mandatory Prepayments......................................................................... 23
2.07 Payments...................................................................................... 24
Section 3. Reserved....................................................................................... 24
Section 4. Accounts........................................................................................ 24
4.01 Creation of the Accounts and the Borrower Accounts............................................ 24
4.02 Limited Borrower Rights....................................................................... 25
4.03 Operating Account............................................................................. 25
4.04 EDC Accrual Account........................................................................... 27
4.05 IDB Accrual Account........................................................................... 27
4.06 Cash Sweep Account............................................................................ 28
4.07 Debt Service Reserve Account.................................................................. 28
4.08 Investment of Funds in Accounts............................................................... 29
4.09 Reports to the Senior Lenders................................................................. 29
4.10 Currency Conversion........................................................................... 29
4.11 Changes to Accounts........................................................................... 29
Section 5. Effectiveness vis-a-vis the Borrower........................................................... 30
Section 6. Conditions..................................................................................... 30
6.01 Initial Disbursement.......................................................................... 30
6.02 Initial and Subsequent Disbursements.......................................................... 33
Section 7. Representations and Warranties.................................................................. 35
7.01 Organization and Powers....................................................................... 35
7.02 Authorization; Enforceability................................................................. 35
7.03 Approvals..................................................................................... 35
7.04 No Breach..................................................................................... 35
{/TABLE}
- i -
{PAGE}
{TABLE}
{S} {C}
7.05 Financial Condition; No Material Adverse Change............................................... 36
7.06 Properties.................................................................................... 36
7.07 Litigation.................................................................................... 37
7.08 Compliance with Laws and Agreements........................................................... 37
7.09 Taxes ........................................................................................ 37
7.10 True and Complete Disclosure.................................................................. 37
7.11 Material Agreements and Liens................................................................. 38
7.12 Capitalization................................................................................ 38
7.13 Legal Form.................................................................................... 39
7.14 Ranking....................................................................................... 39
7.15 Security Interests............................................................................ 39
7.16 Commercial Activity; Absence of Immunity...................................................... 40
7.17 Insurance..................................................................................... 40
7.18 Business Purpose.............................................................................. 40
7.19 Environmental Matters......................................................................... 41
7.20 Qualification................................................................................. 41
7.21 Domicile...................................................................................... 42
7.22 Choice of Law................................................................................. 42
Section 8. Covenants of the Borrower...................................................................... 42
8.01 Financial Statements and Other Information.................................................... 42
8.02 Notices of Material Events.................................................................... 43
8.03 Existence, Compliance, Records, Inspection, Etc............................................... 44
8.04 Insurance..................................................................................... 45
8.05 Prohibition of Fundamental Changes............................................................ 47
8.06 Liens......................................................................................... 48
8.07 Indebtedness.................................................................................. 49
8.08 Investments................................................................................... 49
8.09 Restricted Payments........................................................................... 50
8.10 Certain Financial Covenants................................................................... 50
8.11 Subordinated Indebtedness..................................................................... 51
8.12 Lines of Business............................................................................. 51
8.13 Use of Proceeds............................................................................... 51
8.14 Subsidiaries.................................................................................. 52
8.15 Implementation of the Project................................................................. 52
8.16 Project Documents............................................................................. 52
8.17 Equity........................................................................................ 53
8.18 Environmental Matters......................................................................... 53
8.19 Transaction with Affiliates or Joint Ventures................................................. 54
8.20 Financial Completion.......................................................................... 54
8.21 Security...................................................................................... 55
Section 9. Events of Default............................................................................... 55
Section 10. Miscellaneous.................................................................................. 59
10.01 Notices...................................................................................... 59
10.02 Waiver....................................................................................... 60
{/TABLE}
- ii -
{PAGE}
{TABLE}
{S} {C}
10.03 Amendments, Etc.............................................................................. 60
10.04 Expenses..................................................................................... 60
10.05 Successors and Assigns....................................................................... 61
10.06 Survival..................................................................................... 61
10.07 Counterparts................................................................................. 61
10.08 Governing Law; Jurisdiction; Service of Process; Etc......................................... 61
10.09 WAIVER OF JURY TRIAL......................................................................... 62
10.10 No Immunity.................................................................................. 62
10.11 Judgment Currency............................................................................ 63
10.12 Use of English Language...................................................................... 63
10.13 Severability................................................................................. 63
{/TABLE}
SCHEDULE I - Material Agreements and Liens
SCHEDULE II - Governmental Approvals
SCHEDULE III - IDB Member Countries
SCHEDULE IV - EBITDA
SCHEDULE V - Recurring Revenues
EXHIBIT A - Schedule of Insurance Requirements
EXHIBIT B - Form of Monthly Report
EXHIBIT C - Terms of Subordination
EXHIBIT D - Form of Independent Engineer Certificate
EXHIBIT E - Form of Process Agent Acceptance
EXHIBIT F - Form of Letter to the Borrower's Auditors
- iii -
{PAGE}
COMMON AGREEMENT (this "Agreement") dated as of December 22,
1999, among: COMUNICACION Y TELEFONIA RURAL S.A., a sociedad anonima duly
organized and validly existing under the laws of Chile (the "Borrower"); EXPORT
DEVELOPMENT CORPORATION, a corporation established by an Act of the Parliament
of Canada ("EDC"); and INTER-AMERICAN DEVELOPMENT BANK, an international
organization established by the Articles of Agreement among its member countries
("IDB").
In order to finance the development and construction of the
Project (as defined below), the Borrower has requested that EDC and IDB
separately make loans to it in an aggregate principal amount not exceeding
$50,000,000. The execution of this Agreement, which provides for, among other
things, certain common conditions precedent, representations, warranties,
covenants and events of default applicable to the loan facilities to be provided
by both EDC and IDB, is a condition precedent to the obligation of EDC and IDB
to extend credit to the Borrower. EDC and IDB are prepared to make such loans
upon the terms and conditions hereof and upon the terms and conditions of the
Senior Loan Agreements (as defined below) to which each is a party, and,
accordingly, the parties hereto agree as follows:
Section 1. Definitions and Accounting Matters.
1.01 Certain Defined Terms. As used herein, the following
terms shall have the following meanings (all terms defined in this Section 1.01
or in other provisions of this Agreement in the singular to have the same
meanings when used in the plural and vice versa):
"Account Bank" means Banco Sud Americano, in its capacity as
Account Bank under the Project Account Agreement.
"Accounts" has the meaning assigned to such term in Section
4.01 (a).
"Adjusted DSCR" means, solely for the purposes of determining
Financial Completion, for any period, the quotient of (a) revenues less
Operating Costs, taxes, Capital Expenditures, and changes in working capital
during such period; divided by (b) the sum of interest, average principal
payments to be made over the repayment period of the Senior Loans, fees due
under Permitted Indebtedness (other than Subordinated Indebtedness) and any
financing costs due and payable, in each case, during such period.
"Affiliate" means, as to any Person, any other Person (other
than a Subsidiary) which, directly or indirectly, is in control of, is
controlled by, or is under common control with, such Person. For purposes of
this definition, "control" of a Person means the power, directly or indirectly,
either to (a) vote 10% or more of the securities having ordinary voting power
for the election of directors of such Person or (b) direct or cause the
direction of the management and policies of such Person whether by contract or
otherwise.
"Agreed Financial Model" means the financial model dated
December 1999, in form and substance satisfactory to the Senior Lenders,
prepared and certified by the Borrower and SRT and designed to assess the
current and future revenues and expenditures of the Borrower.
Common Agreement
{PAGE}
- 2 -
"Authorized Officer" means, with respect to any Person, the
Managing Director, the President, the Vice President, the Assistant Vice
President, the Treasurer, the Assistant Treasurer or equivalent officers of such
Person and. with respect to the Borrower, shall include any officer or
representative holding any of the foregoing positions (or their equivalent)
whose name appears on a certificate of incumbency delivered concurrently with
the execution of this Agreement or concurrently with the initial disbursement of
the IDB Loan pursuant to Section 2.02 of the IDB Loan Agreement, as such
certificate of incumbency may be amended from time to time to identify names of
individuals then holding such offices or the names of such representatives and
the capacity in which they are acting.
"Borrower Accounts" has the meaning assigned to such term in
Section 4.01(b).
"Borrower Material Adverse Effect" means the occurrence of any
event which could result in a material adverse effect on (a) the Project, (b)
the Property, business, operations, financial condition, liabilities or
capitalization of the Borrower, (c) the ability of the Borrower to perform its
obligations under any of the Transaction Documents to which it is a party, (d)
the validity or enforceability of any of the Transaction Documents, (e) the
rights and remedies of the Senior Lenders under any of the Transaction Documents
or (f) the timely payment of the principal of or interest on the Senior Loans or
other amounts payable in connection therewith.
"Business Day" means (a) with respect to a borrowing of, a
payment or prepayment of principal of or interest on, or an "Interest Period"
(as defined in each Senior Loan Agreement) for, any Senior Loan or a notice by
the Borrower with respect to any such borrowing, payment, prepayment or Interest
Period, a day which is both a New York Business Day and a London Business Day
and (b) with respect to any other reference to "Business Day", any day on which
commercial banks are not authorized or required to close in New York City and
Ottawa, Ontario.
"Business Plan" means the Information for Proposed Debt
Holders dated November 1998 and reviewed by Deloitte & Touche, Chartered
Accountants.
"BVI Holdco" means CTR Holdings Limited, a limited liability
company duly organized and validly existing under the laws of the British Virgin
Islands.
"Canadian GAAP" means generally accepted accounting principles
in Canada, in effect from time to time.
"Capital Expenditures" means, for any period, expenditures
(including, without limitation, the aggregate amount of Capital Lease
Obligations incurred during such period) made by the Borrower to acquire or
construct fixed assets, plant and equipment and related installation charges
(including renewals, improvements and replacements, but excluding repairs)
during such period computed in accordance with Canadian (GAAP).
"Capital Lease Obligations" means, for any Person, all
obligations of such Person to pay rent or other amounts under a lease of (or
other agreement conveying the right to use) Property to the extent such
obligations are required to be classified and accounted for as a capital lease
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