exv4w1



 




Exhibit 4.1




THIRD AMENDMENT TO CREDIT AGREEMENT



     THIS THIRD AMENDMENT, dated as of August 25, 2003, amends and modifies a
certain Credit Agreement, dated as of April 30, 2002, as amended by amendments
dated as of September 19, 2002 and April 29, 2003 (as so amended, the “Credit
Agreement”), among OTTER TAIL CORPORATION, a Minnesota corporation (the
“Borrower”), U.S. BANK NATIONAL ASSOCIATION, as Agent (in such capacity, the
“Agent”), and the Banks, as defined therein. Terms not otherwise expressly
defined herein shall have the meanings set forth in the Credit Agreement.



     FOR VALUE RECEIVED, the Borrower, the Agent and the Banks agree that the
Credit Agreement is amended as follows.




ARTICLE I - AMENDMENT TO THE CREDIT AGREEMENT



     1.1 Additional Bank. Wells Fargo Bank, National Association (“Wells”)
shall, upon effectiveness of this Amendment, become a Bank under the Credit
Agreement. Upon such effectiveness, the Agent shall inform Wells of the amount
of the Loans it is required to fund consistent with its Revolving Percentage
and its participating interest in Letters of Credit. Upon funding by Wells,
the Agent shall pay the outstanding Revolving Loans of the other Banks to make
the outstanding Revolving Loans of all Banks consistent with their Revolving
Percentages.



     1.2 Definitions. Section 1.1 is amended as follows:



     (a)  The following new definitions are added:





		
	 	     “Revolving Commitment” means the maximum unpaid principal
amount of the Revolving Loans and participation in Letters of
Credit of all Banks which may from time to time be outstanding
hereunder, being $62,500,000 as of the date of the Third Amendment
hereto, as the same may be reduced from time to time pursuant to
Section 4.3, or, if so indicated, the maximum unpaid principal
amount of Revolving Loans and participation in Letters of Credit of
any Bank (which amounts are set forth on Schedule 1.1(a) hereto or
in the relevant Assignment and Assumption Agreement for such Bank)
and, as the context may require, the agreement of each Bank to make
the Revolving Loans to the Borrower and to participate in the
Letters of Credit subject to the terms and conditions of this
Agreement up to its Revolving Commitment.”





		
	 	     “Revolving
Percentage” means, as to any Bank, the proportion,
expressed as a percentage, that such Bank’s Revolving Commitment
bears to the total Revolving Commitments of all Banks. The
Revolving Percentages of the Banks as of the date of this Third
Amendment hereof are set forth on Schedule 1.1(a).”









 



 






		
	 	     “Swing Line Commitment” means the maximum unpaid principal
amount of the Swing Line Loans of the Swing Line Bank which may
from time to time be outstanding hereunder, being $7,500,000 as of
the date of the Third Amendment hereto, as the same may be reduced
from time to time pursuant to Section 4.3 and, as the context may
require, the agreement of the Swing Line Bank to make the Swing
Line Loans to the Borrower up to the Swing Line Commitment.”



     (b)  The definition of “Commitment” is amended to read as follows:





		
	 	     “Commitment” means the maximum unpaid principal amount of the
Loans and participation in Letters of Credit of all Banks which may
from time to time be outstanding hereunder, being $70,000,000 as of
the date of the Third Amendment hereto, as the same may be reduced
from time to time pursuant to Section 4.3, or, if so indicated, the
maximum unpaid principal amount of Loans and participations in
Letters of Credit of any Bank (which amounts are set forth on
Schedule 1.1(a) hereto or in the relevant Assignment and Assumption
Agreement for such Bank) and, as the context may require, the
agreement of each Bank to make Loans to the Borrower and to
participate in the Letters of Credit subject to the terms and
conditions of this Agreement up to its Commitment. The Commitments
shall include both the Revolving Commitments and the Swing Line
Commitment.”



     (c)  The definition of “Percentage” is amended to read as follows:





		
	 	     “Percentage” means (a) prior to any termination of the
Commitments, as to any Bank, the proportion, expressed as a
percentage, that such Bank’s Commitments bears to the total
Commitments of all Banks, and (b) following any termination of the
Commitments, as to any Bank, the proportion, expressed as a
percentage, that such Bank’s outstanding Loans and participations
in Letters of Credit and Loans (as provided in Sections 2.7(c) and
(d), 2.8 and 4.5) bears to the total outstanding Loans and total
participations in Letters of Credit of all Banks. The Percentages
of the Banks as of the date of this Agreement are set forth on
Schedule 1.1(a).”



     (d)  The definition of “Swing Line Participation Amount” is deleted.



     1.3 The Commitments. Section 2.1 is amended to read as follows:




		
	 	        “Section 2.1 The Commitments. Subject to the terms and conditions
hereof and in reliance upon the warranties of the Borrower herein:





		
	 	(a) each Bank agrees, severally and not jointly, to make loans
(each, a ‘Revolving Loan’ and, collectively, the ‘Revolving Loans’)
to the Borrower from time to time from the date hereof until the
Termination Date, during which period the Borrower may repay and
reborrow in accordance with the provisions hereof, provided, that
the aggregate unpaid principal amount of any Bank’s Revolving Loans
plus its participation in Letter of Credit Obligations shall not
exceed such
Bank’s Revolving Commitment and provided, further, that the total
of all outstanding Revolving Loans and Letter of Credit Obligations
shall not exceed the aggregate Revolving Commitments of all Banks
at any time. The Revolving Loans shall be made by the Banks on a
pro rata basis, calculated for each Bank based on its Revolving
Percentage.




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	 	(b) the Swing Line Bank agrees to make loans (each a ‘Swing Line
Loan’ and, collectively, the ‘Swing Line Loans’) to the Borrower
from time to time from the date hereof until the Termination Date,
during which period the Borrower may repay and reborrow in
accordance with the provisions hereof, provided, that the aggregate
unpaid principal amount of the Swing Line Loans at any one time
outstanding shall not exceed the Swing Line Commitment.”



     1.4 Borrowing Procedures. Section 2.3(a)(iii) is deleted. It is the
intent that request for Swing Line Loans be governed by Section 2.7(a).



     1.5 Swing Line Provisions and Procedures on Event of Default. Section
2.7 is amended to read as follows:



     “Section 2.7 Swing Line Loans; Procedures on Event of Default.





		
	 	(a) The borrowing procedures and time requirements set forth in
Section 2.3, and the timing requirements for repayments set forth
in Section 4.4 shall not apply to the Swing Line Loans. Instead,
the Swing Line Bank and the Borrower shall enter into mutually
acceptable arrangements and agreements for “sweep” funding and
repayment of the Swing Line Loans.





		
	 	(b) Unless an Event of Default shall have occurred and shall be
continuing, the Swing Line Bank shall have the right to receive,
retain, and apply to the Swing Line Loans any payment made under
the foregoing arrangements and shall not be required to remit such
payment to the Agent for application to any other obligations of
the Borrower, and to such extent, the second sentence of Section
4.4 shall not apply to such payments.





		
	 	(c) Upon occurrence and during continuance of an Event of Default:
(i) the Agent shall, on behalf of the Borrower (which hereby
irrevocably directs the Agent to act on its behalf), request the
Banks (including the Swing Line Bank) to make Loans, and the Agent
shall apply the proceeds thereof to payment of outstanding
Revolving Loans or Swing Line Loans, so that after the making of
such Loans and application of the proceeds thereof, each Bank shall
have made its Percentage of the outstanding Loans (all of which
shall be Base Rate Advances); and (ii) the Agent shall adjust the
participating interest of all Banks in the outstanding Letters of
Credit and Letter of Credit Obligations so that each Bank shall
hold its Percentage of such participating interests in the Letters
of Credit and Letter of Credit Obligations. For such purpose and
for purposes of Section 2.7(d), the
Percentage of each Bank shall be determined as if the Commitments
had not been terminated (i.e. as provided in subparagraph (a) of
the definition of ‘Percentage’).




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	 	(d) If, for any reason, Loans may not be (as determined by the
Agent in its sole discretion), or are not, made pursuant to Section
2.7(c), then, effective on the date such Loans would otherwise have
been made, each Bank (including the Swing Line Bank) severally,
unconditionally and irrevocably agrees that it shall purchase a
participating interest in the outstanding Loans to the extent
necessary so that each Bank shall hold (either directly or by
participation) its Percentage of all outstanding Loans.





		
	 	(e) Whenever any Bank receives any payment on account of its Loans
in which a participation is deemed to have been sold as provided in
Section 2.7(d), such Bank will distribute to the Bank or Banks
deemed to have purchased such participation their share or shares
of such payment (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Bank’s
participating interest was outstanding and funded and, in the case
of principal and interest payments, to reflect such Bank’s pro rata
portion of such payment if such payment is not sufficient to pay
the principal of and interest on all Loans then due); provided,
however, that in the event that such payment received by the Bank
so distributing payments is required to be returned, the Bank or
Banks receiving payment will return to the distributing Bank any
portion thereof previously distributed to it or them by the
distributing Bank.





		
	 	(f) Each Bank’s obligation to make the Loans referred to in
Section 2.7(c) and to fund its participating interests in the
Letters of Credit, Letter of Credit Obligations and Loans pursuant
to Section 2.7(c) and Section 2.7(d) shall be absolute and
unconditional and shall not be affected by any circumstance,
including, without limitation, (i) any setoff, counterclaim,
recoupment, defense or other right which such Bank or the Borrower
may have against the any other Bank, the Borrower or any other
Person for any reason whatsoever; (ii) the occurrence or
continuance of an Event of Default or the failure to satisfy any of
the other conditions precedent specified in Article VI; (iii) any
adverse change in the condition (financial or otherwise) of the
Borrower; (iv) any breach of this Agreement or any other Loan
Document by the Borrower or any Bank; or (v) any other
circumstance, happening or event whatsoever, whether or not similar
to any of the foregoing.





		
	 	(g) Upon the request for a Loan, adjustment of any participation
in funded Letter of Credit Obligation or participation in a Loan,
as provided in Section 2.7(c) and Section 2.7(d), each Bank
required to fund amounts of such Loan or participations shall
transfer to the Agent the amount of such funding on the Business
Day requested by the Agent (or if such request is made after 2:00
p.m., Minneapolis time, on the next succeeding Business Day), and
the Agent shall apply the proceeds of such Loans or participations
in accordance with the terms of such Sections.




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     1.6. Letters of Credit. It is intended that, prior to occurrence of an
Event of Default, the Banks purchase participating interest in the Letters of
Credit in accordance with their respective Revolving Percentages (and not
Percentages). Section 2.8 of the Credit Agreement is amended to read as
provided in Exhibit AA attached hereto. For ease of reference of the parties,
words added to such Section 2.8 are double-underlined in Exhibit AA.



     1.7 Reduction or Termination of Commitments. The following sentence is
added at the end of Section 4.3:






		
	 	“Reductions of Commitments shall be applied ratably to the Revolving
Commitments and the Swing Line Commitments and the Borrower may not
terminate one such Commitment (Revolving Commitment and Swing Line
Commitment) without also terminating the other such Commitment.”



     1.8 Schedule. Schedule 1.1(a) is replace by Schedule 1.1(a) attached
hereto.



     1.9 Construction. All references in the Credit Agreement to “this
Agreement”, “herein” and similar references shall be deemed to refer to the
Credit Agreement as amended by this Amendment.




ARTICLE II - REPRESENTATIONS AND WARRANTIES



     To induce the Agent and the Banks to enter into this Amendment and to make
and maintain the Loans under the Credit Agreement as amended hereby, the
Borrower hereby warrants and represents to the Agent and the Banks that it is
duly authorized to execute and deliver this Amendment, and to perform its
obligations under the Credit Agreement as amended hereby, and that this
Amendment constitutes the legal, valid and binding agreement of the Borrower,
enforceable in accordance with its terms.




ARTICLE III - CONDITIONS PRECEDENT



     This Amendment shall become effective on the date first set forth above,
provided, however, that the effectiveness of this Amendment is subject to the
satisfaction of each of the following conditions precedent:



     3.1 Warranties. Before and after giving effect to this Amendment, the
representations and warranties in Article VII of the Credit Agreement shall be
true and correct as though made on the date hereof, except for changes that are
permitted by the terms of the Credit Agreement. The execution by the Borrower
of this Amendment shall be deemed a representation that the Borrower has
complied with the foregoing condition.



     3.2 Defaults. Before and after giving effect to this Amendment, no
Default and no Event of Default shall have occurred and be continuing under the
Credit Agreement. The execution by the
Borrower of this Amendment shall be deemed a representation that the Borrower
has complied with the foregoing condition.



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     3.3 Documents and Fee. The following shall have been executed and
delivered to the Agent and the Borrower shall have paid to the Agent the
following fee:








	 
	(a) This Amendment, executed by the Borrower, the Agent and the Banks;
	 
	(b) The Acknowledgment in the form attached hereto, executed by the
Guarantor;
	 
	(c) Revolving Notes, executed by the Borrower, payable to Wells in the
amount of up to $20,000,000 and payable to U.S. Bank in the amount of up
to $17,500,000 (which Revolving Note payable to U.S. Bank shall replace
the existing Revolving Note payable to U.S. Bank in the amount of up to
$25,000,000);
	 
	(d) An acknowledgment and agreement, executed by Wells, as contemplated
by Section 3.5 of the Intercreditor Agreement; and
	 
	(e) A supplement to the Agent’s Fee Letter (which, together with the
original Agent’s Fee Letter, will be deemed the “Agent’s Fee Letter” for
purposes of reference thereto in the Credit Agreement).



ARTICLE IV - GENERAL



     4.1 Expenses. The Borrower agrees to reimburse the Agent upon demand for
all reasonable expenses (including reasonable attorneys’ fees and legal
expenses) incurred by this Agent in the preparation, negotiation and execution
of this Amendment and any other document required to be furnished herewith.



     4.2 Counterparts. This Amendment may be executed in as many counterparts
as may be deemed necessary or convenient, and by the different parties hereto
on separate counterparts, each of which, when so executed, shall be deemed an
original but all such counterparts shall constitute but one and the same
instrument.



     4.3 Severability. Any provision of this Amendment which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining portions hereof or affecting the validity or
enforceability of such provisions in any other jurisdiction.



     4.4 Law. This Amendment shall be a contract made under the laws of the
State of Minnesota, which laws shall govern all the rights and duties
hereunder.



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     4.5 Successors; Enforceability. This Amendment shall be binding upon the
Borrower, and Agent and the Banks and their respective successors and assigns,
and shall inure to the benefit of the Borrower, the Agent and the Banks and the
successors and assigns of the Agent and the Banks.
Except as hereby amended, the Credit Agreement shall remain in full force and
effect and is hereby ratified and confirmed in all respects.



     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed at Minneapolis, Minnesota by their respective officers thereunto duly
authorized as of the date first written above.



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(signature page follows)




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	 	 	OTTER TAIL CORPORATION
	 	 	 	 	 
	 	 	
By:
	/s/	Kevin G. Moug
	 	 	 	

	 	 	 	 	 
	 	 	
Title:
	 	C.F.O. & Treasurer
	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION,
	 	 	 	 	as Agent and a Bank
	 	 	 	 	 
	 	 	
By:
	/s/	Randy Salzwedel
	 	 	 	

	 	 	 	 	Randy A. Salzwedel

Vice President
	 	 	 	 	 
	 	 	
BANK ONE, N.A., as a Bank

	 	 	 	 	 
	 	 	
By:
	/s/	Sharon K. Webb
	 	 	 	

	 	 	 	 	 
	 	 	
Title:
	 	Associate Director
	 	 	 	

	 	 	
BANK HAPOALIM B.M., as a Bank

	 	 	 	 	 
	 	 	
By:
	/s/	James Surless
	 	 	 	

	 	 	 	 	 
	 	 	
Title:
	 	VP
	 	 	 	

	 	 	 	 	 
	 	 	
and	 	 
	 	 	 	 	 
	 	 	
By:
	/s/	Laura Raffa
	 	 	 	

	 	 	 	 	 
	 	 	
Title:
	 	SVP
	 	 	 	

	 	 	 	 	 
	 	 	
WELLS FARGO BANK, NATIONAL

 ASSOCIATION, as a Bank

	 	 	 	 	 
	 	 	
By:
	/s/	G. N. Ophaug
	 	 	 	

	 	 	 	 	 
	 	 	
Title:
	 	V.P.
	 	 	 	





9







 



ACKNOWLEDGMENT



     Reference is made to the Guaranty, dated as of April 30, 2002 (the
“Guaranty”) pursuant to which the undersigned, as Guarantor (the “Guarantor”)
has guaranteed payment and performance of obligations of Otter Tail Corporation
(the “Borrower”) to U.S. Bank National Association, as Agent, and the Banks
(the “Creditors”) under the Credit Agreement among the Borrower and the
Creditors dated as of April 30, 2002 (as thereafter amended, the “Credit
Agreement”) and under each Note and Loan Document, as defined in the Credit
Agreement. The Guarantor acknowledges that it has received a copy of the
proposed Third Amendment to the Credit Agreement, to be dated on or about
August 25, 2003 (the “Amendment”). The Guarantor agrees and acknowledges that
the Amendment shall in no way impair or limit the right of the Creditors under
the Guaranty, and confirm that by the Guaranty, the Guarantor continues to
guaranty payment and performance of the obligations of the Borrower to the Bank
under the Credit Agreement as amended pursuant to the Amendment. The Guarantor
hereby confirms that the Guaranty remains in full force and effect, enforceable
against the Guarantor in accordance with its terms.



Dated as of August 25, 2003.




	 	 	 	 	 
	 	 	VARISTAR CORPORATION
	 
	 	 	
By:
	 	/s/ Kevin G. Moug
	 	 	 	 	

	 
	 	 	
Title:
	 	C. F. O. & Treasurer
	 	 	 	 	










 



 


Schedule 1.1(a)




Commitments and Percentages



Revolving Commitments:




	 	 	 	 	 	 	 	 	 
	Bank:	Initial Revolving Commitment:	Revolving Percentages:
	
	 	
	 	

	U.S. Bank
	 	$	17,500,000	 	 	 	28.00000	%
	Wells Fargo
	 	$	20,000,000	 	 	 	32.00000	%
	Bank One
	 	$	15,000,000	 	 	 	24.00000	%
	Bank Hapoalim
	 	$	10,000,000	 	 	 	16.00000	%
	 
	 	 	
	 	 	 	
	 
	Total:
	 	$	62,500,000	 	 	 	100.00000	%



Swing Line Commitment:




	 	 	 	 	 
	Bank:	Initial Swing Line Commitment:
	
	 	

	U.S. Bank	 	 	
$7,500,000	 



Percentages:




	 	 	 	 	 	 	 	 	 
	Bank:	 	Total Commitments:	 	Percentages:
	
	 	
	 	

	U.S. Bank*
	 	$	25,000,000	 	 	 	35.714286	%
	Wells Fargo
	 	$	20,000,000	 	 	 	28.571429	%
	Bank One
	 	$	15,000,000	 	 	 	21.428571	%
	Bank Hapoalim
	 	$	10,000,000	 	 	 	14.285714	%
	 
	 	 	
	 	 	 	
	 
	Total:
	 	$	70,000,000	 	 	 	100.00000	%



*sum of Revolving Credit Commitment and Swing Line Commitment








 



 


Exhibit AA




Section 2.8 Amendment



      Section 2.8 Letters of Credit





		
	 	(a) Letters of Credit. Subject to the terms and conditions of this
Agreement, and on the condition that aggregate Letter of Credit
Obligations shall never exceed the lesser of (i) $3,000,000 or (ii) the
Revolving Commitments, and that the sum of Letter of Credit Obligations
plus the Revolving Loans shall never exceed the aggregate Revolving
Commitments of all Banks, the Borrower may, in addition to Loans, request
that the Agent issue letters of credit for the account of the Borrower,
by making such request to the Agent (such letters of credit as any of
them may be amended, supplemented, extended or confirmed from time to
time, being herein collectively called the ‘Letters of Credit’). The
Agent may, at its discretion, elect to issue or decline to issue any
requested Letter of Credit. No Letter of Credit shall expire more than
one year after the date of issuance thereof (provided, that Letters of
Credit may automatically extend absent notice of termination by the
issuer). Upon the date of the issuance of a Letter of Credit, the Agent
shall be deemed, without further action by any party hereto, to have sold
to each Bank, and each Bank shall be deemed without further action by any
party hereto, to have purchased from the Agent, a participation, in its
Revolving Percentage, in such Letter of Credit and the related Letter of
Credit Obligations.
	 
	 	(b) Purchase Unconditional. Each Bank’s purchase of a participating
interest in a Letter of Credit pursuant to Section 2.8(a) shall be
absolute and unconditional and shall not be affected by any circumstance,
including, without limitation, (i) any setoff, counterclaim, recoupment,
defense or other right which such Bank or the Borrower may have against
the Agent, the Borrower or any other Person for any reason whatsoever;
(ii) the occurrence or continuance of a Default or an Event of Default or
the failure to satisfy any of the other conditions precedent in Article
VI; (iii) any adverse change in the condition (financial or otherwise) of
the Borrower; (iv) any breach of this Agreement or any other Loan
Document by the Borrower or any Bank; (v) the expiry date of any Letter
of Credit occurring after such Bank’s Revolving Commitment has
terminated; or (vi) any other circumstance, happening or event
whatsoever, whether or not similar or any of the foregoing.
	 
	 	(c) Additional Provisions. The following additional provisions shall
apply to each Letter of Credit:





		
	 	(i)     Upon receipt of any request for a Letter of Credit, the Agent
shall notify each Bank of the contents of such request and of such
Bank’s Revolving Percentage of the amount of such proposed Letter
of Credit.
	 
	 	(ii)     No Letter of Credit may be issued if after giving effect
thereto the Letter of Credit Obligations shall exceed $3,000,000 or
if the sum of (A) the aggregate outstanding principal amount of
Revolving Loans plus (B) the aggregate Letter of
Credit Obligations would exceed the aggregate Revolving Commitments
of all Banks. The Revolving Commitment of each Bank shall be
deemed to be utilized for all purposes hereof in an amount equal to
such Bank’s Revolving Percentage of the Letter of Credit
Obligations.









 



 




		
	 	(iii)     Upon receipt from the beneficiary of any Letter of Credit of
any demand for payment thereunder, Agent shall promptly notify the
Borrower and each Bank as to the amount to be paid as a result of
such demand and the payment date. If at any time the Agent shall
have made a payment to a beneficiary of such Letter of Credit in
respect of a drawing or in respect of an acceptance created in
connection with a drawing under such Letter of Credit, each Bank
will pay to Agent immediately upon demand by the Agent at any time
during the period commencing after such payment until reimbursement
thereof in full by the Borrower, an amount equal to such Bank’s
Revolving Percentage of such payment, together with interest on
such amount for each day from the date of demand for such payment
(or, if such demand is made after 2:00 p.m. Minneapolis time on
such date, from the next succeeding Business Day) to the date of
payment by such Bank of such amount at a rate of interest per annum
equal to the Federal Funds Effective Rate for such period.
	 
	 	(iv)     The Borrower shall be irrevocably and unconditionally
obligated forthwith to reimburse the Agent for any amount paid by
the Agent upon any drawing under any Letter of Credit, without
presentment, demand, protest or other formalities of any kind, all
of which are hereby waived. Such reimbursement may, subject to
satisfaction of the conditions in Article VI hereof and to the
available Revolving Commitment (after adjustment in the same to
reflect the elimination of the corresponding Letter of Credit
Obligation), be made by the borrowing of Revolving Loans. The
Agent will pay to each Bank such Bank’s Revolving Percentage of all
amounts received from the Borrower for application in payment, in
whole or in part, of a Letter of Credit Obligation, but only to the
extent such Bank has made payment to the Agent in respect of such
Letter of Credit pursuant to clause (iii) above.
	 
	 	(v)     The Borrower’s obligation to reimburse the Agent for any amount
paid by the Agent upon any drawing under any Letter of Credit shall
be performed strictly in accordance with the terms of this
Agreement and the applicable Letter of Credit Agreement under any
and all circumstances whatsoever and irrespective of (A) any lack
of validity or enforceability of any Letter of Credit, any Letter
of Credit Agreement or this Agreement, or any term or provision
therein, (B) any draft or other document presented under a Letter
of Credit proving to be forged, fraudulent, or invalid in any
respect or any statement therein being untrue or inaccurate in any
respect, (C) payment by the Agent under a Letter of Credit against
presentation of a draft or other document that does not comply with
the terms of such Letter of Credit, or (D) any other event or
circumstance whatsoever, whether or not similar to any of the
foregoing, that might, but for the provisions









 



 






		
	 	of this clause (v), constitute a legal or equitable discharge of,
or provide a right of setoff against, the Borrower’s obligations
hereunder. Neither the Agent nor the Bank shall have any liability
or responsibility by reason of or in connection with the issuance
or transfer of any Letter of Credit or any payment or failure to
make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error,
omission, interruption, loss or delay in transmission or delivery
of any draft, notice or other communication under or relating to
any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms
or any consequence arising from causes beyond the control of the
Agent; provided that the foregoing shall not be construed to excuse
the Agent from liability to the Borrower to the extent of any
direct damages (as opposed to consequential damages, claims in
respect of which are hereby waived by the Borrower to the extent
permitted by applicable law) suffered by the Borrower that are
caused by the Agent’s failure to exercise care when determining
whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly
agree that, in the absence of gross negligence or willful
misconduct on the part of the Agent (as finally determined by a
court of competent jurisdiction), the Agent shall be deemed to have
exercised care in each such determination. In furtherance of the
foregoing and without limiting the generality thereof, the parties
hereto expressly agree that, with respect to documents presented
which appear on their face to be in substantial compliance with the
terms of the Letter of Credit, the Agreement may, in its sole
discretion, either accept and make payment upon such documents
without responsibility for further investigation or refuse to
accept and make payment upon such documents if such documents are
not in strict compliance with the terms of such Letter of Credit.
	 
	 	(vi)     The Borrower will pay to Agent for the account of each Bank in
accordance with its Revolving Percentage letter of credit fee with
respect to each Letter of Credit equal to an amount, calculated on
the basis of face amount of each Letter of Credit, in each case for
the period from and including the date of issuance of such Letter
of Credit to and including the date of expiration or termination
thereof at a per annum rate equal to the then-applicable Applicable
Margin for Eurodollar Advances, such fee to be due and payable in
advance on the date of the issuance thereof. The Agent will pay to
each Bank, promptly after receiving any payment in respect of
letter of credit fee referred to in this clause (v), an amount
equal to the product of such Bank’s Revolving Percentage times the
amount of such fees. The Borrower shall also pay to Agent at the
Principal Office for the account of the Agent an issuance fee of
0.125% of the face amount of the applicable Letter of Credit. All
fees hereunder shall be computed on the basis of a year of 360 days
and paid for the actual number of days elapsed.









 



 
		
	 	(vii)     The issuance by the Agent of each Letter of Credit shall, in
addition to the discretionary nature of this facility, be subject
to the conditions precedent that the Borrower shall have executed and delivered such applications and
other instruments and agreements relating to such Letter of Credit
as the Agent shall have reasonably requested and are not
inconsistent with the terms of this Agreement (the “Letter of
Credit Agreements”). In the event of a conflict between the terms
of this Agreement and the terms of any Letter of Credit Agreement
(including the charging of any fees other than normal and customary
reimbursable expenses), the terms hereof shall control.
	 
	 	(viii)     In the event that any Letter of Credit remains outstanding
after the Termination Date, the Borrower shall deliver, prior to
the Termination Date, cash collateral to be held and applied in
accordance with the terms of Section 10.3.
	 
	 	(ix)     Upon occurrence and during continuance of an Event of Default,
the participating interest of the Banks in the Letters of Credit
and Letter of Credit Obligations shall be adjusted as provided in
Section 2.7(c), and upon such adjustment, the funding of such
adjusted participating interests shall be made as provided in
Section 2.7(g).





		
	 	(d) Indemnification; Release. Borrower hereby indemnifies and holds
harmless the Agent and each Bank from and against any and all claims and
damages, losses, liabilities, costs or expenses which the Agent or such
Bank may incur (or which may be claimed against the Agent or such Bank by
any Person whatsoever), regardless of whether caused in whole or in part
by the negligence of any of the indemnified parties, in connection with
the execution and delivery of any Letter of Credit or transfer of or
payment or failure to pay under any Letter of Credit; provided that the
Borrower shall not be required to indemnify any party seeking
indemnification for any claims, damages, losses, liabilities, costs or
expenses to the extent, but only to the extent, caused by (i) the willful
misconduct or gross negligence of the party seeking indemnification, or
(ii) by the failure by the party seeking indemnification to pay under any
Letter of Credit after the presentation to it of a request required to be
paid under applicable law.