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5-Year Credit Agreement

 

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Title:

5-Year Credit Agreement

Entities:

ABN AMRO Bank N.V.; Bank of Montreal; Citibank, NA; Citigroup Global Markets Inc.; International Business Machines Corp.; J.P. Morgan Securities Inc.; JPMorgan Chase Bank; PNC Bank, NA; Royal Bank of Canada; Royal Bank of Scotland plc; UBS Loan Finance LLC; Wells Fargo Bank, NA; Banco Santander Central Hispano SA; Bank of New York; Simpson Thacher & Bartlett

Date:

2004

Size:

336KB total

Price:

$99

ID:

#316965

 

 

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EXECUTION VERSION

 

$10,000,000,000

 

5-YEAR CREDIT AGREEMENT

 

among

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

 

The Subsidiary Borrowers Parties Hereto

 

The Several Lenders
from Time to Time Parties Hereto

 

JPMORGAN CHASE BANK,
as Administrative Agent

 

and

 

CITIBANK, N.A.,
as Syndication Agent

 

 

Dated as of May 27, 2004

 

 

J.P. MORGAN SECURITIES INC. and CITIGROUP GLOBAL MARKETS INC.,
as Joint Lead Arrangers and Joint Bookrunners

 



 

TABLE OF CONTENTS

 

SECTION 1.

DEFINITIONS

 

 

 

 

 

 

1.1

Defined Terms

 

 

1.2

Other Definitional Provisions

 

 

 

 

 

SECTION 2.

AMOUNT AND TERMS OF US$ FACILITIES

 

 

 

 

 

 

2.1

Revolving Credit Commitments

 

 

2.2

Procedure for Revolving Credit Borrowing

 

 

2.3

Conversion and Continuation Options for Revolving Credit Loans

 

 

2.4

Minimum Amounts and Maximum Number of Eurodollar Tranches

 

 

2.5

Swing Line Loans

 

 

2.6

Optional Prepayments of Revolving Credit Loans and Swing Line Loans

 

 

2.7

The Competitive Loans

 

 

2.8

Procedure for Competitive Loan Borrowing

 

 

2.9

Repayment of US$ Loans; Evidence of Debt

 

 

2.10

Interest Rates and Payment Dates

 

 

2.11

Fees

 

 

2.12

Computation of Interest and Fees

 

 

2.13

Termination or Reduction of Revolving Credit Commitments

 

 

2.14

Inability to Determine Interest Rate

 

 

2.15

Pro Rata Treatment and Payments

 

 

2.16

Illegality

 

 

2.17

Requirements of Law

 

 

2.18

Taxes

 

 

2.19

Indemnity

 

 

2.20

Change of Lending Office

 

 

2.21

Extension of Termination Date

 

 

 

 

 

SECTION 3.

LOCAL CURRENCY FACILITIES

 

 

 

 

 

 

3.1

Terms of Local Currency Facilities

 

 

3.2

Currency Fluctuations, etc.

 

 

3.3

Refunding of Local Currency Loans

 

 

3.4

Existing Local Currency Facilities, etc.

 

 

 

 

 

SECTION 4.

REPRESENTATIONS AND WARRANTIES

 

 

 

 

 

 

4.1

Organization; Powers

 

 

4.2

Authorization

 

 

4.3

Enforceability

 

 

4.4

Governmental Approvals

 

 

4.5

Financial Statements

 

 

4.6

No Material Adverse Change

 

 

i



 

 

4.7

No Material Litigation, etc.

 

 

4.8

Federal Reserve Regulations

 

 

4.9

Investment Company Act, etc.

 

 

4.10

Tax Returns

 

 

4.11

No Material Misstatements

 

 

4.12

ERISA

 

 

4.13

Use of Proceeds

 

 

 

 

 

SECTION 5.

CONDITIONS PRECEDENT

 

 

 

 

 

 

5.1

Conditions to Initial US$ Loans

 

 

5.2

Conditions to Each US$ Loan

 

 

 

 

 

SECTION 6.

AFFIRMATIVE COVENANTS

 

 

 

 

 

 

6.1

Existence; Business and Properties

 

 

6.2

Financial Statements, Reports, etc.

 

 

6.3

Notices

 

 

 

 

 

SECTION 7.

NEGATIVE COVENANTS

 

 

 

 

 

 

7.1

Limitation on Secured Debt and Sale and Leaseback Transactions

 

 

7.2

Mergers, Consolidations and Sales of Assets

 

 

7.3

Margin Regulations

 

 

7.4

Consolidated Net Interest Expense Ratio

 

 

 

 

 

SECTION 8.

EVENTS OF DEFAULT

 

 

 

 

 

SECTION 9.