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$1,800,000,000
364-DAY CREDIT AGREEMENT
among
VIACOM INC.,
VIACOM INTERNATIONAL INC.,
THE SUBSIDIARY BORROWERS PARTIES HERETO,
THE LENDERS NAMED HEREIN,
JP MORGAN CHASE BANK,
as Administrative Agent,
SALOMON SMITH BARNEY INC.,
as Syndication Agent, and
FLEET NATIONAL BANK and BANK OF AMERICA, N.A.,
as Co-Documentation Agents
Dated as of March 5, 2002
--------------------------------------------------------------------------------
JPMORGAN SECURITIES INC.
and
SALOMON SMITH BARNEY INC.,
as Joint Lead Arrangers
JPMORGAN SECURITIES INC.,
as Sole Bookrunner
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TABLE OF CONTENTS
Page
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ARTICLE I DEFINITIONS.....................................................1
SECTION 1.1. DEFINED TERMS..............................................1
SECTION 1.2. TERMS GENERALLY...........................................14
ARTICLE II THE CREDITS....................................................16
SECTION 2.1. COMMITMENTS...............................................16
SECTION 2.2. LOANS.....................................................16
SECTION 2.3. REVOLVING CREDIT BORROWING PROCEDURE......................16
SECTION 2.4. REPAYMENT OF LOANS........................................16
SECTION 2.5. CONVERSION AND CONTINUATION OPTIONS.......................17
SECTION 2.6. FEES......................................................17
SECTION 2.7. INTEREST ON LOANS; EURODOLLAR TRANCHES; ETC...............18
SECTION 2.8. DEFAULT INTEREST..........................................19
SECTION 2.9. ALTERNATE RATE OF INTEREST................................19
SECTION 2.10. TERMINATION, REDUCTION AND INCREASE OF COMMITMENTS........19
SECTION 2.11. OPTIONAL PREPAYMENTS OF LOANS.............................21
SECTION 2.12. RESERVE REQUIREMENTS; CHANGE IN CIRCUMSTANCES.............21
SECTION 2.13. INDEMNITY.................................................23
SECTION 2.14. PRO RATA TREATMENT; FUNDING MATTERS; EVIDENCE OF DEBT.....23
SECTION 2.15. SHARING OF SETOFFS........................................25
SECTION 2.16. PAYMENTS..................................................25
SECTION 2.17. TAXES.....................................................26
SECTION 2.18. TERMINATION OR ASSIGNMENT OF COMMITMENTS
UNDER CERTAIN CIRCUMSTANCES...............................28
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ARTICLE III REPRESENTATIONS AND WARRANTIES.................................29
SECTION 3.1. CORPORATE EXISTENCE.......................................29
SECTION 3.2. FINANCIAL CONDITION.......................................29
SECTION 3.3. LITIGATION................................................29
SECTION 3.4. NO BREACH, ETC............................................30
SECTION 3.5. CORPORATE ACTION..........................................30
SECTION 3.6. APPROVALS.................................................30
SECTION 3.7. ERISA.....................................................30
SECTION 3.8. TAXES.....................................................30
SECTION 3.9. INVESTMENT COMPANY ACT....................................31
SECTION 3.10. ENVIRONMENTAL.............................................31
SECTION 3.11. MATERIAL SUBSIDIARIES.....................................31
ARTICLE IV CONDITIONS OF EFFECTIVENESS AND LENDING........................31
SECTION 4.1. EFFECTIVENESS.............................................31
SECTION 4.2. INITIAL LOANS TO SUBSIDIARY BORROWERS.....................31
SECTION 4.3. ALL CREDIT EVENTS.........................................32
ARTICLE V COVENANTS......................................................32
SECTION 5.1. FINANCIAL STATEMENTS......................................32
SECTION 5.2. CORPORATE EXISTENCE, ETC..................................35
SECTION 5.3. INSURANCE.................................................35
SECTION 5.4. PROHIBITION OF FUNDAMENTAL CHANGES........................35
SECTION 5.5. LIMITATION ON LIENS.......................................36
SECTION 5.6. LIMITATION ON SUBSIDIARY INDEBTEDNESS.....................37
SECTION 5.7. CONSOLIDATED COVERAGE RATIO...............................38
SECTION 5.8. USE OF PROCEEDS...........................................38
SECTION 5.9. TRANSACTIONS WITH AFFILIATES..............................38
ii
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ARTICLE VI EVENTS OF DEFAULT..............................................38
ARTICLE VII THE AGENTS.....................................................41
ARTICLE VIII GUARANTEES.....................................................43
SECTION 8.1. VIACOM GUARANTEE..........................................43
SECTION 8.2. VIACOM INTERNATIONAL GUARANTEE............................45
ARTICLE IX MISCELLANEOUS..................................................48
SECTION 9.1. NOTICES...................................................48
SECTION 9.2. SURVIVAL OF AGREEMENT.....................................49
SECTION 9.3. BINDING EFFECT............................................49
SECTION 9.4. SUCCESSORS AND ASSIGNS....................................49
SECTION 9.5. EXPENSES; INDEMNITY.......................................53
SECTION 9.6. RIGHT OF SETOFF...........................................54
SECTION 9.7. APPLICABLE LAW............................................54
SECTION 9.8. WAIVERS; AMENDMENT........................................54
SECTION 9.9. ENTIRE AGREEMENT..........................................55
SECTION 9.10. WAIVER OF JURY TRIAL......................................55
SECTION 9.11. SEVERABILITY..............................................55
SECTION 9.12. COUNTERPARTS..............................................55
SECTION 9.13. HEADINGS..................................................55
SECTION 9.14. JURISDICTION; CONSENT TO SERVICE OF PROCESS...............55
SECTION 9.15. CONFIDENTIALITY...........................................56
SECTION 9.16. WAIVER OF NOTICE OF TERMINATION PERIOD....................57
SECTION 9.17. CONSENT TO AMENDMENT OF FIVE-YEAR CREDIT AGREEMENT........57
iii
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ANNEXES
Annex I Pricing Grid
EXHIBITS
Exhibit A Administrative Questionnaire
Exhibit B-1 Form of Revolving Credit Borrowing Request
Exhibit B-2 Form of Subsidiary Borrower Designation
Exhibit B-3 Form of Subsidiary Borrower Request
Exhibit C Form of Assignment and Acceptance
Exhibit D Form of Confidentiality Agreement
Exhibit E Form of Closing Certificate
Exhibit F Form of New Lender Supplement
Exhibit G Form of Commitment Increase Letter
Exhibit H Form of Amendment No. 1 to Five-Year Credit Agreement
SCHEDULES
Schedule 1.1 Commitments; Addresses for Notices
Schedule 1.1(a) Guarantees
Schedule 5.6 Subsidiary Indebtedness
iv
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364-DAY CREDIT AGREEMENT entered into as of March 5, 2002,
among VIACOM INC., a Delaware corporation ("VIACOM"), each Subsidiary Borrower
(as herein defined); VIACOM INTERNATIONAL INC., a Delaware corporation ("VIACOM
INTERNATIONAL"); the lenders whose names appear on Schedule 1.1 hereto or who
subsequently become parties hereto as provided herein (the "LENDERS"); JPMORGAN
CHASE BANK, a New York banking corporation ("JPMORGAN CHASE"), as administrative
agent for the Lenders; SALOMON SMITH BARNEY INC., a New York corporation, as
syndication agent for the Lenders (in such capacity, the "SYNDICATION AGENT");
and FLEET NATIONAL BANK, a national banking corporation, and BANK OF AMERICA,
N.A., a national banking corporation, as co-documentation agents for the Lenders
(in such capacity, the "CO-DOCUMENTATION AGENTS").
W I T N E S S E T H :
WHEREAS, Viacom has requested that the Lenders provide
extensions of credit to it and to certain Subsidiary Borrowers to be used for
general corporate purposes (including, without limitation, acquisitions and
commercial paper backup), which extensions of credit shall enable the Borrowers
(as herein defined) to borrow loans in an aggregate amount not to exceed $1.8
billion (except as increased or reduced pursuant to Section 2.10) on a revolving
credit basis on and after the Closing Date (as herein defined) and prior to the
Revolving Credit Maturity Date (as herein defined); and
WHEREAS, the Lenders are willing to extend credit to the
Borrowers on the terms and subject to the conditions herein set forth;
NOW, THEREFORE, in consideration of the premises and mutual
covenants contained herein, the parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1. DEFINED TERMS. As used in this Agreement, the
following terms shall have the meanings specified below:
"ABR LOAN" shall mean any Loan bearing interest at a rate
determined by reference to the Alternate Base Rate in accordance with the
provisions of Article II.
"ADMINISTRATIVE AGENT" shall mean JPMorgan Chase, together
with its affiliates, as an arranger of the Commitments and as the administrative
agent for the Lenders under this Agreement, and any successor thereto pursuant
to Article VII.
"ADMINISTRATIVE AGENT FEE LETTER" shall mean the Fee Letter
with respect to this Agreement between Viacom and the Administrative Agent, as
amended, supplemented or otherwise modified from time to time.
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2
"ADMINISTRATIVE AGENT'S FEES" shall have the meaning assigned
to such term in Section 2.6(b).
"ADMINISTRATIVE QUESTIONNAIRE" shall mean an Administrative
Questionnaire in the form of Exhibit A hereto.
"AFFILIATE" shall mean, as to Viacom, any Person which
directly or indirectly controls, is under common control with or is controlled
by Viacom. As used in this definition, "CONTROL" (including, with correlative
meanings, "CONTROLLED BY" and "UNDER COMMON CONTROL WITH") shall mean
possession, directly or indirectly, of power to direct or cause the direction of
management or policies (whether through ownership of securities or partnership
or other ownership interests, by contract or otherwise); PROVIDED that, in any
event, any Person which owns directly or indirectly 10% or more of the
securities having ordinary voting power for the election of directors or other
governing body of a corporation or 10% or more of the partnership or other
ownership interests of any other Person (other than as a limited partner of such
other Person) will be deemed to control such corporation or other Person.
Notwithstanding the foregoing, (a) no individual shall be deemed to be an
Affiliate of Viacom solely by reason of his or her being an officer, director or
employee of Viacom or any of its Subsidiaries and (b) Viacom and Viacom
International and their Subsidiaries shall not be deemed to be Affiliates of
each other, unless expressly stated to the contrary.
"AGENTS" shall mean the collective reference to the
Administrative Agent, the Co-Documentation Agents, the Joint Lead Arrangers, the
Sole Bookrunner and the Syndication Agent.
"AGREEMENT" shall mean this 364-Day Credit Agreement, as
amended, supplemented or otherwise modified from time to time.
"ALTERNATE BASE RATE" shall mean, for any day, a rate per
annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the
greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1%. For purposes hereof, "PRIME
RATE" shall mean the rate of interest per annum publicly announced from time to
time by the Lender serving as the Administrative Agent as its prime rate in
effect at its principal office in New York City; each change in the Prime Rate
shall be effective on the date such change is publicly announced as effective;
and "FEDERAL FUNDS EFFECTIVE RATE" shall mean, for any day, the weighted average
of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day which is a Business Day, the average of the
quotations for the day of such transactions received by the Administrative Agent
from three Federal funds brokers of recognized standing selected by it. If for
any reason the Administrative Agent shall have determined (which determination
shall be conclusive absent manifest error) that it is unable to ascertain the
Federal Funds Effective Rate for any reason, including the inability or failure
of the Administrative Agent to obtain sufficient quotations in accordance with
the terms thereof, the Alternate Base Rate shall be the Prime Rate until the
circumstances giving rise to such inability no longer exist. Any change in the
Alternate Base Rate due to a change in the Prime Rate or the
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