Document:

mstaxloanagreement.htm

 

Exhibit 4.2

 

 

 

 

 

 

 

LOAN AGREEMENT

 

 

 

Dated as of December 1, 2010

 

 

 

Between

 

 

 

 

 

MISSISSIPPI BUSINESS FINANCE CORPORATION

 

 

and

 

 

OLIN CORPORATION

 

 

 

Relating to the issuance of

 

$42,000,000 (maximum principal amount)

Recovery Zone Facility Revenue Bonds

(Olin Corporation Project),

Series 2010

By

Mississippi Business Finance Corporation

 

 

  

  

  

Table of Contents

Page

 

	
Article 1 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION 1.1  Definitions

SECTION 1.2  General Rules of Construction

SECTION 1.3  Effect of Headings and Table of Contents

SECTION 1.4  Date of Loan Agreement

SECTION 1.5  Separability Clause

SECTION 1.6  Governing Law

SECTION 1.7  Counterparts

SECTION 1.8  Entire Agreement

 

	
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Article 2 LOAN OF BOND PROCEEDS

 

SECTION 2.1  Issuance of Bonds

SECTION 2.2  Loan of Bond Proceeds

SECTION 2.3  Deposits and Withdrawals From Acquisition Fund

 

	
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Article 3 ACQUISITION OF THE BOND-FINANCED FACILITIES

 

SECTION 3.1  Agreement to Acquire; Cooperation of Issuer

SECTION 3.2  No Warranty; Corporation to Complete Bond-Financed Facilities

SECTION 3.3  Remedies Against Contractors, etc.

SECTION 3.4  Completion of the Bond-Financed Facilities

 

	
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Article 4 LOAN TERM AND LOAN PAYMENTS

 

SECTION 4.1  Loan Term

SECTION 4.2  Basic Loan Payments

SECTION 4.3  Additional Loan Payments

SECTION 4.4  Overdue Payments

SECTION 4.5  Unconditional Obligation of the Corporation

SECTION 4.6  Execution and Assignment of Note

SECTION 4.7  Rights of Bank Under Bank Security Agreement

SECTION 4.8  Rights of Purchaser under Direct Purchaser Security Documents

 

	
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Article 5 CONCERNING THE BONDS, THE INDENTURE AND THE TRUSTEE

 

SECTION 5.1  Assignment of Loan Agreement and Loan Payments by Issuer

SECTION 5.2  Redemption of Bonds

SECTION 5.3  Amendment of Bond Documents

SECTION 5.4  The Indenture Funds

        SECTION 5.5  Effect of Full Payment of Indenture Indebtedness

	
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Article 6 REPRESENTATIONS AND COVENANTS

 

SECTION 6.1  General Representations

SECTION 6.2  Eligibility of Bond-Financed Facilities for Financing

SECTION 6.3  Corporate Existence

SECTION 6.4  Inspection of Records

SECTION 6.5  Advances by Issuer or Trustee

SECTION 6.6  Indemnity of Issuer and Trustee

SECTION 6.7  Compliance with Tax Certificate and Agreement

SECTION 6.8  Compliance with Continuing Disclosure Agreement

SECTION 6.9  Covenants to Purchaser during Direct Purchase Mode

                SECTION 6.10  Benefits Under the Act

                SECTION 6.11  Payment of Taxes; Discharge of Liens

                SECTION 6.10  Maintenance and Insurance

 

	
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Article 7 REMEDIES

 

SECTION 7.1  Events of Default

SECTION 7.2  Remedies on Default

SECTION 7.3  No Remedy Exclusive

SECTION 7.4  Agreement to Pay Attorneys' Fees and Expenses

SECTION 7.5  No Additional Waiver Implied by One Waiver

SECTION 7.6  Remedies Subject to Applicable Law

SECTION 7.7  Purchaser Agent’s Rights During Direct Purchase Mode

 

	
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Article 8 MISCELLANEOUS

 

SECTION 8.1  Issuer’s Liabilities Limited

SECTION 8.2  Corporate Existence of Authority

SECTION 8.3  Notices

SECTION 8.4  Successors and Assigns

        SECTION 8.5  Benefits of Loan Agreement

	
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Exhibit A Description of Bond Financed Property    A-1

 

	
  

	
Exhibit B The Note    B-1

 

  

  

  

LOAN AGREEMENT

 

THIS LOAN AGREEMENT (this “Loan Agreement”) dated as of December 1, 2010 is entered into by MISSISSIPPI BUSINESS FINANCE CORPORATION, (the "Issuer"), a public corporation organized and existing under the laws of the State of Mississippi (the "State"), and OLIN CORPORATION, a corporation organized under the laws of the State of Virginia (the “Corporation”).

 

Recitals

 

This Loan Agreement is being entered into in connection with the Issuer’s issuance of  up to $42,000,000 Recovery Zone Facility Revenue Bonds (Olin Corporation Project), Series 2010 (the “Bonds”), pursuant to a Trust Indenture dated as of December 1, 2010 (the “Indenture”) between the Issuer and U. S. Bank National Association, a national banking association, as trustee (in such capacity, the “Trustee”).  The purpose of this Loan Agreement and of related Financing Documents is described in the recitals to the Indenture.

 

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants hereinafter contained, the parties hereto covenant, agree and bind themselves as follows:

 

ARTICLE 1                      

 

DEFINITIONS AND OTHER PROVISIONS

 

OF GENERAL APPLICATION

 

Section 1.1 Definitions

 

For all purposes of this Loan Agreement, except as otherwise expressly provided or unless the context otherwise requires, capitalized terms not otherwise defined herein shall have the meaning assigned in the Indenture.

 

Section 1.2 General Rules of Construction

 

For all purposes of this Loan Agreement, except as otherwise expressly provided or unless the context otherwise requires:

 

(a) Defined terms in the singular shall include the plural as well as the singular, and vice versa.

 

(b) The definitions in the recitals to this instrument are for convenience only and shall not affect the construction of this instrument.

 

(c) All accounting terms not otherwise defined herein have the meanings assigned to them, and all computations herein provided for shall be made, in accordance with generally accepted accounting principles.  All references herein to “generally accepted accounting principles” refer to such principles as they exist at the date of application thereof.

 

  

  

  

(d) All references in this instrument to designated “Articles”, “Sections” and other subdivisions are to the designated Articles, Sections and subdivisions of this instrument as originally executed.

 

(e) The terms “herein”, “hereof” and “hereunder” and other words of similar import refer to this Loan Agreement as a whole and not to any particular Article, Section or other subdivision.

 

(f) All references in this instrument to a separate instrument are to such separate instrument as the same may be amended or supplemented from time to time pursuant to the applicable provisions thereof.

 

(g) The term “person” shall include any individual, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization and any government or any agency or political subdivision thereof.

 

Section 1.3 Effect of Headings and Table of Contents

 

The Article and Section headings herein and in the Table of Contents are for convenience only and shall not affect the construction hereof.

 

Section 1.4 Date of Loan Agreement

 

The date of this Loan Agreement is intended as a date for the convenient identification of this Loan Agreement and is not intended to indicate that this Loan Agreement was executed and delivered on said date.

 

Section 1.5 Separability Clause

 

If any provision in this Loan Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 1.6 Governing Law

 

This Loan Agreement shall be construed in accordance with and governed by the laws of the State of Mississippi.

 

Section 1.7 Counterparts

 

This instrument may be executed in any number of counterparts, each of which so executed shall be deemed an original, but all such counterparts shall together constitute but one and the same instrument.

 

Section 1.8 Entire Agreement

 

This Loan Agreement contains the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior oral or written agreements, including, without limitation, commitments or understandings with respect to such matters.

 

  

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ARTICLE 2                      

 

LOAN OF BOND PROCEEDS

 

Section 2.1 Issuance of Bonds

 

Simultaneously with the delivery of this Loan Agreement, the Issuer shall execute and deliver the  Bonds pursuant to the Indenture.  As of the date of delivery of the Bonds, the Outstanding Principal Amount of the Bonds is $1,000,000.  The Outstanding Principal Amounts of the Bonds shall be increased from time to time as described in Section 2.2(b) of this Loan Agreement.

 

Section 2.2 Loan of Bond Proceeds

 

(a) The Issuer does hereby loan to the Corporation the Outstanding Principal Amount of the  Bonds on the date of their initial delivery, and the Corporation does hereby borrow such amounts from the Issuer and instruct the Issuer to apply the proceeds of the initial Advances of proceeds of the  Bonds, in accordance with Article 6 of the Indenture.

 

(b) As additional Advances are made in accordance with the Indenture that increase the Outstanding Principal Amount of the Bonds, the Issuer shall be deemed to have made additional loans to the Corporation with respect to the applicable Series in an amount equal to the amount of such Advances, effective on the date thereof, and the terms and conditions of this Loan Agreement shall apply to the Outstanding Principal Amount of the Bonds, after giving effect to all additional loans made under this subsection (b).

 

Section 2.3 Deposits and Withdrawals From Acquisition Fund

 

(a) Future Advances with respect to the  Bonds shall be deposited in the applicable account of the Acquisition Fund or in the Costs of Issuance Fund in accordance with Section 6.8 of the Indenture.

 

(b) The Corporation may cause withdrawals to be made from the Acquisition Fund for the payment of Acquisition Costs (including reimbursement to the Corporation for any such Costs paid directly by the Corporation), but only (1) if no Loan Default exists and no event has occurred and is continuing which, with notice or lapse of time or both, would constitute a Loan Default and (2) the Corporation delivers to the Trustee a duly completed requisition for each such withdrawal in the form attached as Exhibit 6.10(b) to the Indenture executed by an Authorized Corporation Representative and the Purchaser Agent.

 

(c) The Corporation may cause withdrawals to be made from the Costs of Issuance Fund to pay Costs of Issuance (including reimbursement to the Corporation for any such Costs paid directly by the Corporation), but only (1) if no Loan Default exists, and (2) the Corporation delivers to the Trustee a duly completed requisition for each such withdrawal in the form attached as Exhibit 6.9(b) to the Indenture executed by an Authorized Corporation Representative and the Purchaser Agent.

 

  

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ARTICLE 3                      

 

ACQUISITION OF THE BOND-FINANCED FACILITIES

 

Section 3.1 Agreement to Acquire; Cooperation of Issuer

 

(a) The Issuer shall use proceeds of the Bonds deposited in the Acquisition Fund to pay Acquisition Costs for acquisition and construction of the buildings, structures, equipment and other capital items described in Exhibit A to this Loan Agreement (collectively, the “Bond-Financed Facilities”).

 

(b) The Corporation shall be solely responsible for the planning and design of the Bond-Financed Facilities, the preparation of contracts and purchase orders for the Bond-Financed Facilities, and the supervision of the work on the Bond-Financed Facilities.  The acquisition and construction of the Bond-Financed Facilities shall be in accordance with all applicable zoning, planning and building restrictions, and the Corporation shall obtain all necessary governmental permits, licenses, certificates, authorizations and approvals necessary therefor and for the operation of the Bond-Financed Facilities.

 

(c) The Issuer shall, at the request of the Corporation, enter into, assume or accept the assignment of such contracts and purchase orders for the Bond-Financed Facilities as the Corporation shall request in writing.  The Issuer has appointed the Corporation as its agent for acquisition and construction of the Bond-Financed Facilities and does hereby confirm such appointment.  The Corporation, as agent of the Issuer, may enter into, assume or accept the assignment of contracts and purchase orders for the Bond-Financed Facilities.  The obligations of the Issuer under all such contracts and purchase orders (whether entered into directly by the Issuer or by the Corporation as agent of the Issuer) shall be limited as provided in Article 8, and the Issuer’s limited liability shall be plainly and conspicuously stated thereon.  At the request of the Corporation, the Issuer shall execute such instruments or other documents as shall be necessary or appropriate to confirm the Corporation’s status as agent of the Issuer with respect to the acquisition and construction of the Bond-Financed Facilities.

 

(d) The Issuer will cooperate with the Corporation in good faith in the acquisition  and construction of the Bond-Financed Facilities in order that the Bond-Financed Facilities may be completed and placed in service as soon as practicable.

 

(e) The Corporation may cause changes or amendments to be made in the plans and specifications for the Bond-Financed Facilities, provided (1) such changes or amendments will not change the nature of the Bond-Financed Facilities to the extent that they would not qualify for financing under the Act, and (2) the Corporation delivers to the Trustee a Favorable Tax Opinion.

 

Section 3.2 No Warranty; Corporation to Complete Bond-Financed Facilities

 

(a) The Corporation recognizes that because the plans, specifications and directions for acquiring and constructing the Bond-Financed Facilities have been, or will be, furnished by it, the Issuer makes no warranty, either express or implied, with respect to the Bond-Financed Facilities and does not offer any assurances that the Bond-Financed Facilities will be suitable for the Corporation’s purposes or needs or that the proceeds derived from the sale of the Bonds will be sufficient to pay in full all Acquisition Costs and Costs of Issuance.

 

  

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(b) If the proceeds derived from the sale of the Bonds are insufficient to pay in full all Acquisition Costs and Costs of Issuance, the Corporation shall complete the acquisition and construction of the Bond-Financed Facilities and pay any remaining Issuance Costs at its own expense.

 

Section 3.3 Remedies Against Contractors, etc.

 

If any vendor, contractor or subcontractor shall default under any contract or purchase order in connection with the acquisition or construction of the Bond-Financed Facilities, the Issuer shall follow the written instructions of, and shall cooperate in good faith with, the Corporation in the pursuit of any remedies that may be available under the circumstances.  Upon the written request of the Corporation, the Issuer shall assign to the Corporation all rights of the Issuer under any such contract or purchase order and the Corporation may, in its own name or in the name of the Issuer, pursue any such remedies.

 

Section 3.4 Completion of the Bond-Financed Facilities

 

(a) The completion of the Bond-Financed Facilities shall be evidenced by a certificate signed by an Authorized Corporation Representative stating that:

 

(1) the acquisition and construction of the Bond-Financed Facilities has been completed in accordance with the plans and specifications therefor (including any changes or amendments to such changes pursuant to Section 3.1), and

 

(2) all amounts due for labor, materials, supplies and other costs incurred in connection with the acquisition and construction of the Bond-Financed Facilities have been paid.

 

(b) After the delivery of the aforesaid certificate to the Trustee, any money then remaining in the Acquisition Fund shall be applied as provided in the Indenture.

 

ARTICLE 4                      

 

LOAN TERM AND LOAN PAYMENTS

 

Section 4.1 Loan Term

 

The term of this Loan Agreement shall begin on the date of the delivery of the Bonds and, unless renewed and extended in accordance with the terms of this Loan Agreement, shall continue until midnight of December 1, 2033.

 

Section 4.2 Basic Loan Payments

 

(a) The Corporation shall make payments (“Basic Loan Payments”) to the Trustee, for the account of the Issuer, at times and in amounts as follows:

 

  

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(1) on or before the last Business Day before each Bond Payment Date, an amount sufficient to pay all Debt Service due on the Bonds due and payable on such Bond Payment Date;

 

(2) on or before the last Business Day prior to each date fixed for the redemption of Bonds (other than a scheduled mandatory redemption date, for which Basic Loan Payments are required pursuant to Section 4.2(a)(1) above), an amount equal to the redemption price of Bonds to be redeemed on such date; and

 

(3) Prior to 12:00 noon on each Tender Date, the Corporation shall pay to the Trustee (or to the Purchaser Agent with respect to Bonds in Direct Purchase Mode) an amount equal to the Purchase Price of Bonds to be tendered for purchase on such Tender Date.  Such payments shall be made in funds immediately available at the Office of the Trustee (or of the Purchaser Agent for Bonds in Direct Purchase Mode) on the related Tender Date.

 

(b) The Corporation shall receive a credit against the Basic Loan Payments as follows:

 

(1) Investment income and profits deposited or retained in the Debt Service Fund shall be credited against monthly Basic Loan Payments due after receipt of such income and profits as directed by the Corporation.

 

(2) Remarketing Proceeds in the Bond Purchase Fund on any Tender Date shall be credited against the related Basic Loan Payment due on such Tender Date.

 

(3) For Bonds secured by a Letter of Credit, money received by the Trustee from a draw on the Letter of Credit with respect to Debt Service due on the related Bond Payment Date shall be credited against the Basic Loan Payment due on such Bond Payment Date.

 

(4) Money received by the Trustee from a draw on the Letter of Credit with respect to the Purchase Price of Tendered Bonds due on any Tender Date shall be credited against the related Additional Loan Payment due on such Tender Date.

 

(5) Any other money held by the Trustee and available, under the terms of the Indenture and this Loan Agreement, for the payment of Debt Service on the Bonds shall be credited against Basic Loan Payments as directed by the Corporation.  Such directions must be consistent with any mandatory provision of the Indenture and this Loan Agreement with respect to the required use of such money.

 

(c) All Basic Loan Payments shall be made in funds immediately available at the Office of the Trustee on the due date of such Payments.

 

(d) The Corporation acknowledges that (1) Basic Loan Payments required by this Section must be sufficient to pay all Debt Service due and payable on the Bonds as the same matures or comes due and (2) money drawn under the Letter of Credit may not be used to pay Debt Service on Obligor Bonds or Bonds in Direct Purchase Mode.  If on any Bond Payment Date the amount on deposit in the Debt Service Fund is not sufficient to pay Debt Service on the Bonds due and payable on such Date, the Corporation shall immediately deposit the amount of such deficiency in the Debt Service Fund.

 

  

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(e) For Bonds secured by a Letter of Credit, money on deposit in the Debt Service Fund may be used to reimburse the Bank for draws on the Letter of Credit to pay Debt Service on the Bonds, as provided in Section 8.1 of the Indenture.

 

(f) Notwithstanding any other provision herein to the contrary, with respect to Bonds in Direct Purchase Mode, the Corporation shall make all payments of Debt Service for such Bonds directly to the Purchaser Agent (as opposed to the Trustee) by wire transfer or other payment arrangements to which the Corporation and the Purchaser Agent shall agree.

 

Section 4.3 Additional Loan Payments

 

(a) The Corporation shall make additional payments (“Additional Loan Payments”, and together with the Basic Loan Payments and all other payments by the Corporation pursuant to this Loan Agreement, the “Loan Payments”) as follows:

 

(1) Within 10 days after receipt by the Corporation of an invoice therefor, the Corporation shall pay to the Trustee (A) the acceptance fee of the Trustee, (B) the normal fees, charges and expenses of the Trustee, and (C) any amount to which the Trustee may be entitled under Section 12.7 of the Indenture.

 

(2) Within 10 days after receipt by the Corporation of an invoice therefor, the Corporation shall pay to Issuer the reasonable expenses of the Issuer incurred (A) at the request of the Corporation, (B) in the performance of the Issuer’s duties under any of the Bond Documents, (C) in connection with any litigation which may at any time be instituted involving the Bond-Financed Facilities or the Bond Documents, or (D) in the pursuit of any remedies under the Bond Documents.

 

(3) The Corporation shall pay to the Remarketing Agent the fees and expenses due in accordance with the applicable agreement appointing the Remarketing Agent to serve in such capacity.

 

(b) The Corporation shall receive a credit against the Additional Loan Payments required by Section 4.3(a)(1) to the extent of any investment income and profits that remain in the Bond Purchase Fund on any Tender Date after reimbursement of the Bank for any amounts due to the Bank under the Credit Agreement that are credited against the related Additional Loan Payment due on such Tender Date.

 

(c) Money on deposit in the Bond Purchase Fund may be used to reimburse the Bank for amounts due to the Bank under the Credit Agreement, as provided in Section 8.2 of the Indenture.

 

  

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Section 4.4 Overdue Payments

 

Any overdue Basic Loan Payment shall bear interest from the related Bond Payment Date until paid at the Post-Default Rate ford overdue Debt Service payments.  Any overdue Additional Loan Payment shall bear interest from the date due until paid at the Post-Default Rate for such Additional Loan Payments specified in the Indenture.

 

Section 4.5 Unconditional Obligation of the Corporation

 

The Corporation’s obligation to make the payments required by this Loan Agreement and to perform and observe the other agreements and covenants on its part herein contained shall be absolute and unconditional, irrespective of any rights of set-off, recoupment or counterclaim it might otherwise have against the Issuer or any other Financing Participant.  The Corporation will not suspend or discontinue any such Loan Payment or fail to perform and observe any of its other agreements and covenants contained herein or terminate this Loan Agreement for any cause whatsoever, including, without limiting the generality of the foregoing, (a) failure to complete the Bond-Financed Facilities, (b) any acts or circumstances that may constitute an eviction or constructive eviction, (c) failure of consideration or commercial frustration of purpose, (d) the invalidity of any provision of this Loan Agreement, (e) any damage to or destruction of the Bond-Financed Facilities or any part thereof, (f) the taking by eminent domain of title to, or the use of, all or any part of the Bond-Financed Facilities, (g) any change in the laws or regulations of the United States of America, the State of Mississippi or any other governmental authority, or (h) any failure of any of the Financing Participants to perform and observe any agreement or covenant, whether express or implied, to be performed or observed by them under any of the Bond Documents.

 

Section 4.6 Execution and Assignment of Note

 

(a) As evidence of the Corporation’s obligations to make the Basic Loan Payments with respect to the Bonds, the Corporation shall execute and deliver to the Issuer from time to time one or more promissory notes in substantially the form attached as Exhibit C to this Loan Agreement (the “Series 2010 Note”), as follows:

 

(1) On the date of initial delivery of the Bonds in Direct Purchase Mode and of the related Series 2010 Note, pursuant to this Loan Agreement and the endorsement included within the Series 2010 Note, the Issuer will assign and endorse its rights under such Series 2010 Note to the Purchaser Agent.

 

(2) If (A) the Purchaser(s) of the Bonds designate a new Purchaser Agent in accordance with the Indenture, whether or not in connection with the commencement of a new Direct Purchase Mode or Direct Purchase Rate Period, or (B) the Bonds are Converted from another Interest Rate Mode to Direct Purchase Mode, the Corporation shall execute and deliver to the Issuer a new Series 2010 Note in order to evidence the Corporation’s obligations to make Basic Loan Payments with respect to the Bonds, after giving effect to such designation or Conversion, and pursuant to this Loan Agreement and the endorsement included within the Series 2010 Note, the Issuer will assign and endorse its rights under such Series 2010 Note to the applicable Purchaser Agent.

 

  

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(3) On any Conversion Date on which the Bonds are Converted from Direct Purchase Mode to Weekly Rate Mode or Term Rate Mode, the Corporation shall execute and deliver to the Issuer a new Series 2010 Note in order to evidence the Corporation’s obligations to make Basic Loan Payments with respect to the Bonds, after giving effect to such Conversion, and pursuant to this Loan Agreement and the endorsement included within the Series 2010 Note, the Issuer will assign and endorse its rights under such Series 2010 Note to the Trustee.

 

(b) The Corporation acknowledges that the occurrence of a Loan Default under Section 7.1 shall constitute a default under a Note and that if any such Loan Default exists, the Purchaser Agent or Trustee to which such Note is assigned or endorsed shall be entitled to exercise all rights and remedies afforded by the Indenture and Loan Agreement with respect to such Note.

 

(c) Any increase in the Outstanding Principal Amount of a Note as the result of additional Advances with respect to the Bonds, as described in Section 2.2 of this Loan Agreement, shall be recorded on the Note by the Purchaser Agent or Trustee, as the case may be; provided, however, that failure of the Purchaser Agent or Trustee to record any Advance shall not in any way compromise, reduce or eliminate in any way the Corporation’s absolute obligations under this Loan Agreement with respect to the full Outstanding Principal Amount of the Bonds or the Series 2010 Note, based upon the actual amount of proceeds loaned by the Issuer to the Corporation with respect thereto.

 

Section 4.7 Rights of Bank Under Bank Security Agreement

 

The Issuer and the Corporation acknowledge that a Bank Security Agreement will create certain rights in favor of the Bank with respect to the Bond-Financed Facilities, including without limitation rights relating to maintenance, alteration, disposition and insurance of the Bond-Financed Facilities, and rights to damage or condemnation proceeds.  Nothing contained in this Loan Agreement shall be construed to diminish or impair any such rights of the Bank.

 

Section 4.8 Rights of Purchaser under Direct Purchaser Security Documents

 

The Issuer and the Corporation acknowledge that a Direct Purchaser Security Agreement will create certain rights in favor of the Purchaser with respect to the Bond-Financed Facilities, including without limitation rights relating to maintenance, alteration, disposition and insurance of the Bond-Financed Facilities, and rights to damage or condemnation proceeds.  Nothing contained in this Loan Agreement shall be construed to diminish or impair any such rights of such Purchaser or Purchaser Agent.

 

ARTICLE 5                      

 

CONCERNING THE BONDS,

 

THE INDENTURE AND THE TRUSTEE

 

Section 5.1 Assignment of Loan Agreement and Loan Payments by Issuer

 

(a) Simultaneously with the delivery of this Loan Agreement, the Issuer shall, pursuant to the Indenture, assign and pledge to the Trustee all right, title and interest of the Issuer in and to the Loan Payments and the Loan Agreement.  The Corporation hereby consents to such assignment and pledge.

 

  

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(b) Until all Indenture Indebtedness has been Fully Paid, the Trustee may exercise all rights and remedies herein accorded to the Issuer, and any references herein to the Issuer shall be deemed, with the necessary changes in detail, to include the Trustee; provided, however, that the Issuer shall retain the rights to indemnification and reimbursement of expenses granted to it by this Loan Agreement and provided, further, that:

 

(1) For Bonds in Direct Payment Mode, all rights and remedies granted to the Trustee under this Loan Agreement shall be granted to and exercisable by the Purchaser Agent, and the Trustee shall have no rights or remedies hereunder, except those as the Purchaser Agent may direct the Trustee to exercise on its behalf; and

 

(2) For Bonds secured by a Letter of Credit, the Trustee will not exercise any of its remedies under this Loan Agreement without the prior written consent of the Bank (subject to the provisions of Section 15.7 of the Indenture).

 

Section 5.2 Redemption of Bonds

 

(a) The Issuer will cause the Trustee to redeem any or all of the Bonds in accordance with the mandatory redemption provisions of the Bonds without any direction from or consent by the Corporation.

 

(b) If no Loan Default exists, (1) any right of optional redemption with respect to the Bonds may be exercised only upon the written direction of the Corporation and (2) the Corporation may, on behalf of the Issuer, direct the Trustee to effect an optional redemption of Bonds.  The Corporation shall deliver to the Issuer a copy of any such direction.  The Issuer will cooperate with the Corporation in good faith to effect any such optional redemption so directed.

 

(c) Notwithstanding the provisions of Section 5.2(b), the Corporation shall not be entitled to exercise any right of optional redemption with respect to Bonds in Direct Purchase Mode unless (a) such Bonds, according to their terms, are subject to optional redemption in accordance with directions provided by the Corporation, or (b) the Corporation shall have delivered to the Trustee the prior written consent of the Purchaser of the Bonds being optionally redeemed.

 

Section 5.3 Amendment of Bond Documents

 

The Issuer will not cause or permit the amendment of the Bond Documents without the prior written consent of the Corporation.

 

Section 5.4 The Indenture Funds

 

(a) If no Loan Default exists, the Issuer shall cause any money held as part of an Indenture Fund to be invested or reinvested by the Trustee in accordance with the terms of the Indenture and the instructions of the Corporation.

 

  

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(b) The Corporation shall be solely responsible for (1) determining that any such investment of Indenture Funds under the Indenture complies with the arbitrage limitations imposed by Section 148 of the Internal Revenue Code, and (2) calculating the amount of, and making payment of, any rebate due to the United States under Section 148(f) of the Internal Revenue Code.

 

(c) As security for the performance by the Corporation of the covenants hereunder, the Corporation hereby assigns and pledges to the Issuer, and grants to the Issuer a security interest in, all right, title and interest of the Corporation in and to all money and investments from time to time on deposit in, or forming a part of, the Indenture Funds, subject to the provisions of this Loan Agreement and the Indenture permitting the application thereof for the purposes and on the terms and conditions set forth herein and in the Indenture.  The Corporation acknowledges that the rights of the Issuer created by this Section shall be assigned by the Issuer to the Trustee pursuant to the Indenture.

 

Section 5.5 Effect of Full Payment of Indenture Indebtedness

 

(a) After the Indenture Indebtedness is Fully Paid, all references in this Loan Agreement to the Bonds, the Indenture and the Trustee shall be ineffective and neither the Trustee nor the Holders of the Bonds shall thereafter have any rights hereunder, except those rights that shall have theretofore vested.

 

(b) After all Indenture Indebtedness is Fully Paid, any money or investments remaining in the Indenture Funds shall be delivered to the Corporation.

 

ARTICLE 6                      

 

REPRESENTATIONS AND COVENANTS

 

Section 6.1 General Representations

 

The Corporation makes the following representations and warranties as the basis for the undertakings on its part herein contained:

 

(a) It is a corporation duly organized under the laws of the state of its organization and is not in default under any of the provisions contained in its articles of incorporation or bylaws or in the laws of the state of its organization.

 

(b) It has the power to consummate the transactions contemplated by the Bond Documents to which it is a party.

 

(c) By proper corporate action it has duly authorized the execution and delivery of the Bond Documents to which it is a party and the consummation of the transactions contemplated therein.

 

(d) It has obtained all consents, approvals, authorizations and orders of governmental authorities that are required to be obtained by it as a condition to the execution and delivery of the Bond Documents to which it is a party.

 

  

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(e) The execution and delivery by it of the Bond Documents to which it is a party and the consummation by it of the transactions contemplated therein will not (1) conflict with, be in violation of, or constitute (upon notice or lapse of time or both) a default under its charter or bylaws, or any agreement, instrument, order or judgment to which it is a party or is subject, or (2) result in or require the creation or imposition of any lien of any nature upon or with respect to any of its properties now owned or hereafter acquired, except as contemplated by the Bond Documents.

 

(f) The Bond Documents to which it is a party constitute legal, valid and binding obligations and are enforceable against it in accordance with the terms of such instruments, except as enforcement thereof may be limited by (1) bankruptcy, insolvency, or other similar laws affecting the enforcement of creditors’ rights and (2) general principles of equity, including the exercise of judicial discretion in appropriate cases.

 

Section 6.2 Eligibility of Bond-Financed Facilities for Financing

 

(a) The Corporation makes the following representations and warranties regarding the eligibility of the Bond-Financed Facilities for financing under the Act:

 

(1) The Issuer’s issuance of the Bonds, and the Issuer’s loan of the proceeds of the Bonds to the Corporation in order to provide financing for the Bond-Financed Facilities will help secure to the citizens of the State of Mississippi the benefits of a strengthening economy from increased economic development by inducing industrial enterprises to locate, expand or improve their operations in the State or to remain in the State.

 

(2) The Corporation is an eligible company and an approved company (both as defined in the Act) and the Project constitutes an economic development project (as defined in the Act).

 

(b) So long as this Loan Agreement is in effect, the Corporation will not make any use of the Bond-Financed Facilities prohibited by the terms of the Act.

 

Section 6.3 Corporate Existence

 

(a) The Corporation will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence, rights (charter and statutory) and franchises.

 

(b) The Corporation may not consolidate with or merge into any other corporation or transfer its property substantially as an entirety to any person unless:

 

(1) the corporation formed by such consolidation or into which the Corporation is merged or the person which acquires by conveyance or transfer the Corporation’s property substantially as an entirety (the “Successor”) shall execute and deliver to the Issuer and the Trustee an instrument in form acceptable to the Issuer and the Trustee containing an assumption by such Successor of the performance and observance of every covenant and condition to be performed or observed by the Corporation under this Loan Agreement, the other Bond Documents, the Tax Certificate and Agreement, and to the extent applicable, any Credit Agreement, Bank Security Document or Direct Purchaser Security Document to which the Corporation is a party (all of the foregoing, collectively, the “Assumed Documents”);

 

  

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(2) immediately after giving effect to such transaction, no Loan Default, or any event which upon notice or lapse of time or both would constitute such a Loan Default, shall have occurred and be continuing;

 

(3) the Corporation shall have delivered to the Issuer and the Trustee a Favorable Tax Opinion dated the effective date of such consolidation or merger;

 

(4) either the Corporation or the Successor, within ten (10) days after execution thereof, shall have delivered to the Issuer and the Trustee a true and complete copy of the instrument of dissolution, liquidation, disposition, consolidation or merger;

 

(5) neither the validity nor the enforceability of the Bonds or any other Assumed Document is adversely affected by the dissolution, liquidation, disposition, consolidation or merger;

 

(6) no rating on the Bonds, if the Bonds are then rated, is reduced or withdrawn as a result of the dissolution, liquidation, disposition, consolidation or merger; and

 

(7) the Project remains as described in this Loan Agreement and in compliance with the Act;

 

(8) any Successor shall be qualified to do business in the State of Mississippi and shall continue to be so qualified throughout the term of this Loan Agreement;

 

(9) the Issuer shall have delivered to the Trustee a certificate acknowledging receipt of all documents, information and materials required by this Section 6.3; and

 

(10) the Corporation shall have delivered to the Issuer and the Trustee a certificate executed by an Authorized Corporation Representative and an Opinion of Counsel, each of which shall be dated the effective date of such consolidation, merger, conveyance or transfer and shall state that such consolidation, merger, conveyance or transfer complies with all requirements of this Section and that all conditions precedent herein provided relating to such transactions shall have been complied with.

 

(c) Upon any consolidation or merger or any conveyance or transfer of the Corporation’s property substantially as an entirety in accordance with this Section, the Successor shall succeed to, and be substituted for, and may exercise every right and power of, the Corporation under this Loan Agreement with the same effect as if such Successor had been named as the Corporation herein.

 

  

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Section 6.4 Inspection of Records

 

The Corporation will at any and all times, upon the written request of the Issuer or the Trustee, permit the Issuer or the Trustee by their representatives to inspect the Bond-Financed Facilities and any books, records, reports and other papers of the Corporation relating to the Bond-Financed Facilities.

 

Section 6.5 Advances by Issuer or Trustee

 

If the Corporation shall fail to perform any of its covenants in this Loan Agreement, the Issuer or the Trustee may, at any time and from time to time, after written notice to the Corporation if no Loan Default exists, make advances to effect performance of any such covenant on behalf of the Corporation.  Any money so advanced by the Issuer or the Trustee, together with interest at the Post-Default Rate, shall be repaid upon demand.

 

Section 6.6 Indemnity of Issuer and Trustee

 

(a) To the extent permitted by law, the Corporation agrees to indemnify the Issuer, the Trustee, and their respective members, directors, officers, employees, attorneys, and agents for, and hold each of them harmless against, any loss, liability or expense (including reasonable attorneys’ fees) incurred without bad faith or willful misconduct on their part, arising out of or in connection with the issuance of the Bonds, the acceptance of their duties and responsibilities under the Bond Documents, or their performance or observance of any agreement or covenant on their part to be observed or performed under the Bond Documents, including without limitation (1) the acquisition or construction of, or other work on, the Bond-Financed Facilities, (2) any injury to, or the death of, any person or any damage to property at the Bond-Financed Facilities, or in any manner growing out of, or connected with, the use, nonuse, condition or occupation of the Bond-Financed Facilities or any part thereof, (3) any damage, loss or destruction of the Bond-Financed Facilities, (4) violation or breach by the Corporation of any contract, agreement or restriction affecting the Bond-Financed Facilities or the use thereof or of any law, ordinance or regulation affecting the Bond-Financed Facilities or any part thereof or the ownership, occupancy or use thereof, (5) the offer and sale of the Bonds or a subsequent sale or distribution of any of the Bonds, (6) the exercise, or failure to exercise, any right, privilege or power of the Issuer or the Trustee under the Bond Documents and (7) the administration of the trust established by the Indenture.

 

(b) The covenant of indemnity by the Corporation contained in this Section shall survive the termination of this Loan Agreement.

 

Section 6.7 Compliance with Tax Certificate and Agreement

 

The Issuer and the Corporation will comply with the covenants and agreements on their part contained in the Tax Certificate and Agreement.

 

  

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Section 6.8 Compliance with Continuing Disclosure Agreement

 

The Corporation will comply with the covenants and agreements on its part contained in any Continuing Disclosure Agreement executed in connection with the Bonds.  As of the date of initial delivery of the Bonds, no Continuing Disclosure Agreement is in effect.

 

Section 6.9 Covenants to Purchaser during Direct Purchase Mode

 

While Bonds are in Direct Purchase Mode, the Corporation may enter into covenants for the exclusive benefit of the Purchaser of such Bonds (and not for the benefit of the Issuer, the Trustee or any other party).  Such covenants shall be contained separately in a schedule to this Loan Agreement or pursuant to a separate agreement between the Corporation and the Purchaser.  The Corporation and the Purchaser may amend such separate schedule or agreement at any time without notice to or the consent of any other party.

 

Section 6.10 Benefits Under the Act

 

(a) The parties hereto acknowledge that the Corporation has been induced to proceed with the acquisition, installation, and equipping of the Project in part by the benefits conferred by the Act regarding credits which may be used to offset certain corporate income tax obligations.  The Issuer hereby agrees that the Corporation shall be permitted to take advantage of all of the benefits provided by the Act to the fullest extent therein set forth subject to the rules and regulations of the Issuer and the provisions of the Act.  The Issuer agrees that it will not take any action to limit, curtail or otherwise make unavailable to the Corporation any of the benefits available under the Act.

 

(b) With respect to benefits conferred by the Act referenced in Section 6.10 (a) above, the following shall apply:

 

(1) the maximum benefits accruing in any calendar year with respect to the income tax credit (other than any credits which may be carried forward to future years pursuant to the Act) shall not exceed the payments of the principal of, premium, if any, and interest payments on the Bonds during such year, and the fees and expenses of the Trustee and any other fees and expenses referenced herein.

 

(2) the deductibility of interest payments on the Bonds shall be determined in accordance with applicable Mississippi law.

 

(3) the Corporation hereby requests the Trustee to provide the Issuer, not later than ninety (90) days after the end of each calendar year, with a certificate setting forth the amount of all payments made to the Trustee with respect to the Bonds whether for principal, premium, interest or the fees and expenses of the Trustee.

 

(4) the benefits accruing to the Corporation under this Section 6.10 shall cease in the event:

 

  

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(i) an Event of Default should occur under this Agreement or an Event of Default should occur under the Indenture and such Event of Default is not waived; or

 

(ii) the Corporation should fail to operate the Project for a period of nine (9) consecutive months following the initial start up of the Project except for force majeure, strikes, lockouts, damage, destruction, act of God, act of terrorism or in general, reasons beyond the Corporation’s reasonable control excepting, however, general economic conditions.

 

(5) the Corporation agrees to comply with the terms and provisions of the Act in all respects with respect to the benefits available under the Act.

 

(6) the benefits or credits available under the Act shall cease to accrue on the date the principal and interest on the Bonds are paid in full whether at maturity or by way of redemption, except for any carry forward available under the Act.

 

(7) the benefits accruing to the Corporation under this Section 6.10  shall be limited to the amounts payable under this Agreement.

 

(8) the tax credits allowed as a benefit under the Act shall be further limited so that the credits allowed in any year shall not exceed eighty percent (80%) of the amount of taxes due to the State prior to the application of the credits (as directed in Section 27-7-22.3 of the Mississippi Code of 1972, as amended).  To the extent that the payments of the principal of, premium, if any, and interest payments on the Bonds during any year and the fees and expenses of the Trustee and any other fees and expenses referenced herein exceed the amount of the tax credit authorized by Section 27-7-22.3, in any taxable year, such excess payment may be recouped from excess credits in succeeding years not to exceed three (3) years following the date upon which the credit was earned.

 

Since the Corporation presently operates a facility in the State, the Project will be deemed to constitute an expansion, and the calculation of the Mississippi income tax against which the RED Act tax credit may be applied shall be made in accordance with the following Rural Economic Development (RED) Guidelines.

 

(9) Valuation of Expansions.

 

To determine the percentage of the Corporation's state income tax liability eligible for an income tax credit under the RED program when the Corporation is expanding, the economic tax valuation percentage must be computed. To do this, determine the percentage increase in employment and the percentage increase in capital investment in the State of Mississippi ("State") connected with the Corporation's expansion. Then calculate the economic tax valuation percentage according to the formulas below.

 

  

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(i) Increase in Employment (Net New Jobs). The determination of net new jobs will be computed as follows:

 

The existing employment base is identified as the average number of employees reported by the Corporation to the Mississippi Employment Security Commission ("MESC") for the twelve (12) months preceding the month during which the Corporation is induced for financing by the Issuer.

 

The future employment base will be the average number of employees reported by the Corporation to the MESC each year after the year in which the Corporation is induced for financing by the Issuer.

 

The percentage of total increased employment is determined by subtracting the existing employment base from the future employment base, dividing the result by the future employment base, and then converting the resulting fraction to a percentage. This percentage will be adjusted each year based on the average number of employees reported by the Corporation to MESC each year.

 

(ii) Increase in Capital Investment. The determination of increased capital investment will be determined as follows:

 

The present value of the Corporation's capital assets will equal the value as determined by the tax assessors of the county or counties, as appropriate, where the Corporation's facilities in Mississippi are located.

 

The value of new fixed assets will equal the cost of the land, building and equipment purchased with bond proceeds or Corporation Equity in connection with the expansion project. Corporation Equity shall consist of money generated from the Corporation's earnings from operations or from investment by the Corporation's owners, including partners, stockholders, members or sole proprietors, as the case may be.

 

The percentage of the capital investment increase will be determined by dividing the cost of the new fixed assets by the total value of the Corporation's capital assets upon completion as determined by the tax assessors of the counties in which the Corporation has facilities and then converting the resulting fraction to a percentage.

 

(iii) Economic tax valuation percentage.

 

Initial Project Eligible for RED Benefits. The economic tax valuation percentage ("ETVP") for the initial project of a company that is granted RED benefits shall be determined by multiplying the percentage of total increased employment by two (2), adding the percentage of increase of capital investment, and then dividing by three (3). The resulting economic tax valuation percentage shall be the percentage of the Corporation's state income tax liability eligible for an income tax credit under the RED program.

 

Subsequent Projects Eligible for RED Benefits. Effect on prior projects; Calculation of RED Benefits for the Subsequent Project. The intent of this paragraph is for the RED benefits granted for each Corporation project subsequent to the initial project to be calculated independently of and to be unaffected by RED benefits granted for any prior Corporation projects. Prior Corporation projects, however, shall be affected by a subsequent project. A cap is placed on the economic tax valuation percentage for the prior project using the facts in existence as of the date of inducement for the subsequent project.

 

  

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Capping the Economic Tax Valuation for the Prior Project. The Economic Tax Valuation Percentage ("ETVP") of the prior project shall be capped as of the date of inducement for the subsequent project. This shall be the upper limit of the ETVP for the prior project from that date forward. To calculate the prior projects ETVP on the date of inducement for the subsequent project, the formula stated in paragraphs 1 and 2 above shall be used. In the event the average 12 month employment level at the Corporation should ever decrease below the base level of employment ("BLE"), the ETVP for the prior project shall be recalculated using the decreased level of employment. The base level of employment ("BLE") is identified as the average number of employees reported by the Corporation to the MESC for the twelve (12) months preceding the month during which the Corporation is induced for financing by the Issuer for the subsequent project. The ETVP for the prior project shall be recalculated in each subsequent year in which average employment for the 12 month measuring period is equal to or less than the BLE. For any subsequent year in which employment exceeds the BLE, the ETVP shall equal the cap established on the inducement date of the subsequent project.

 

Calculation of RED Benefits for the Subsequent Project. To determine the Economic Tax Valuation Percentage for the subsequent project, the following formula shall apply.

 

a. Increase in Employment (Net New Jobs). The determination of net new jobs for a subsequent project will be computed as follows:

 

i. The future employment base will be the average number of employees reported by the Corporation to the MESC each year after the year in which the Corporation is induced for financing by the MBFC for the subsequent project.

 

ii. The percentage of total increased employment is determined by subtracting the BLE  from the future employment base, dividing the result by the future employment base, and then converting the resulting fraction to a percentage. This percentage will be adjusted each year based on the average number of employees reported by the Corporation to MESC each year. In the event that employment should equal or be less than the BLE, the Net new jobs percentage shall be zero.

 

  

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b. Increase in Capital Investment. The determination of increased capital investment will be determined as follows:

 

i. The present value of the Corporation's capital assets will equal the value as determined by the tax assessors of the county or counties, as appropriate, where the Corporation's facilities in Mississippi are located. Use the assets in existence on the date of inducement of the subsequent project, including any assets connected with prior projects for which RED benefits were granted.

 

ii. The value of new fixed assets will equal the cost of the land, building and equipment purchased with bond proceeds or Corporation Equity in connection with the subsequent project. Corporation Equity shall consist of money generated from the Corporation's earnings from operations or from investment by the Corporation's owners, including partners, stockholders, members or sole proprietors, as the case may be.

 

iii. The percentage of the capital investment increase will be determined by dividing the cost of the new fixed assets by the total value of the Corporation's capital assets upon completion as determined by the tax assessors of the counties in which the Corporation has facilities and then converting the resulting fraction to a percentage.

 

c. Economic tax valuation percentage.  The economic tax valuation percentage for the subsequent project of a company that is granted RED benefits shall be determined by multiplying the percentage of total increased employment by two (2), adding the percentage of increase of capital investment, and then dividing by three (3). The resulting economic tax valuation percentage shall be the percentage of the Corporation's state income tax liability eligible for an income tax credit for the subsequent project under the RED program. This figure shall be recalculated annually using the employment figures reported to the MESC for the previous 12 months.

 

The Issuer makes no warranty or guaranty concerning the availability or application of the benefits granted or earned by the Corporation under this Section 6.10 or the Act.

 

Section 6.11 Payment of Taxes; Discharge of Liens

 

The Corporation shall (a) pay, or make provision for payment of, all lawful taxes and assessments, including income, profits, property or excise taxes, if any, or other municipal or governmental charges, levied or assessed by any federal, state or municipal governmental or political body, upon the Issuer with respect to the payments due hereunder when the same shall become due; and (b) pay or cause to be satisfied and discharged or make adequate provision to satisfy and discharge, within 60 days after the same shall accrue, any lien or charge upon the amounts paid hereunder and all lawful claims or demands for labor, materials, supplies or other charges which, if unpaid, might be or become a lien thereon; provided that, if the Corporation shall first notify the Trustee of its intention so to do and shall furnish to the Trustee an Opinion of Counsel to the effect that, by nonpayment of any such items, the lien of the Indenture as to the amounts payable hereunder will not be materially endangered, the Corporation may in good faith contest any such lien or charge or claims or demands in appropriate legal proceedings and, in such event, may permit the items so contested to remain undischarged and unsatisfied during the period of such contest and any appeal therefrom.  The Issuer, at the expense of the Corporation, shall cooperate fully with the Corporation in any such contest.  The parties acknowledge that the Project will be subject to ad valorem taxation unless the appropriate local taxing authorities (County and, if applicable, City governing bodies) agree that the Project will be exempt in whole or in part from such taxes.

 

  

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Section 6.12 Maintenance and Insurance

 

The Issuer shall have no liability for any costs and expenses of operating, maintaining and insuring the Project.

 

ARTICLE 7                      

 

REMEDIES

 

Section 7.1 Events of Default

 

Any one or more of the following shall constitute an event of default (a “Loan Default”) under this Loan Agreement (whatever the reason for such event and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

 

(a) default in the payment of (i) any Basic Loan Payment when such Basic Loan Payment becomes due and payable or (ii) any Additional Loan Payment with respect to the Purchase Price of Tendered Bonds when such Additional Loan Payment becomes due and payable; or

 

(b) an Act of Bankruptcy by the Corporation; or

 

(c) default in the performance, or breach, of any covenant or warranty of the Corporation in this Loan Agreement (other than a covenant or warranty, a default in the performance or breach of which is elsewhere in this Section specifically dealt with), and the continuance of such default or breach for a period of 30 days after there has been given, by registered or certified mail, to the Corporation and the Bank by the Issuer or by the Trustee a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “notice of default” hereunder; or

 

(d) the occurrence of an event of default, as therein defined, under the Indenture, and the expiration of the applicable grace period, if any, specified therein.

 

  

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Absent a change in Governmental Requirements applicable to Continuing Disclosure Agreements, any Continuing Disclosure Agreement executed in connection with the Bonds will contain the exclusive remedies for breach by the Corporation of the covenants on its part contained in such agreement, and no such breach shall constitute a Loan Default or an event of default under any other Bond Document.

 

Section 7.2 Remedies on Default

 

If a Loan Default occurs and is continuing, the Issuer (or the Trustee, as provided in the Indenture) may exercise any of the following remedies:

 

(a) declare all Basic Loan Payments to be immediately due and payable in an amount not to exceed the principal amount of all Outstanding Bonds, plus the redemption premium (if any) payable with respect thereto, plus the interest accrued thereon to the date of such declaration;

 

(b) declare the principal of the Pledged Note to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Loan Agreement or in the Pledged Note to the contrary notwithstanding;

 

(c) declare all Additional Loan Payments to be due and payable immediately; and

 

(d) take whatever legal proceedings may appear necessary or desirable to collect the Loan Payments then due, whether by declaration or otherwise, or to enforce any obligation or covenant or agreement of the Corporation under this Loan Agreement, under a Bank Security Document, a Direct Purchaser Security Document or under applicable law.

 

Section 7.3 No Remedy Exclusive

 

No remedy herein conferred upon or reserved to the Issuer or the Trustee is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Loan Agreement or now or hereafter existing at law or in equity or by statute.  No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof but any such right or power may be exercised from time to time and as often as may be deemed expedient.

 

Section 7.4 Agreement to Pay Attorneys' Fees and Expenses

 

If the Corporation should default under any of the provisions of this Loan Agreement and the Issuer or the Trustee should employ attorneys or incur other expenses for the collection of payments due under this Loan Agreement or the enforcement of performance or observance of any agreement or covenant on the part of the Corporation herein contained, the Corporation will on demand therefor pay to the Issuer or the Trustee (as the case may be) the reasonable fee of such attorneys and such other expenses so incurred.

 

  

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Section 7.5 No Additional Waiver Implied by One Waiver

 

In the event any agreement contained in this Loan Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder.

 

Section 7.6 Remedies Subject to Applicable Law

 

All rights, remedies and powers provided by this Article may be exercised only to the extent the exercise thereof does not violate any applicable provision of law in the premises, and all the provisions of this Article are intended to be subject to all applicable mandatory provisions of law which may be controlling in the premises and to be limited to the extent necessary so that they will not render this Loan Agreement invalid or unenforceable.

 

Section 7.7 Purchaser Agent’s Rights During Direct Purchase Mode

 

Notwithstanding any other provision of this Loan Agreement to the contrary, with respect to all Note issued with respect to Bonds the Direct Purchase Mode, all rights and remedies granted to the Trustee under this Loan Agreement with respect to such Note shall be granted to and exercisable by the Purchaser Agent, and the Issuer and Trustee shall have no rights or remedies under this Loan Agreement, except those that the Purchaser Agent may direct the Issuer or Trustee to exercise on its behalf.

 

ARTICLE 8                      

 

MISCELLANEOUS

 

Section 8.1 Issuer’s Liabilities Limited

 

(a) The covenants and agreements contained in this Loan Agreement and in any contract, purchase order or other agreement entered into pursuant to this Loan Agreement shall never constitute or give rise to a personal or pecuniary liability or charge against the general credit of the Issuer, and in the event of a breach of any such covenant or agreement, no personal or pecuniary liability or charge payable directly or indirectly from the general assets or revenues of the Issuer shall arise therefrom.  Nothing contained in this Section, however, shall relieve the Issuer from the observance and performance of the covenants and agreements on its part contained herein.

 

(b) No recourse under or upon any covenant or agreement of this Loan Agreement or of any contract or other agreement entered into pursuant to this Loan Agreement shall be had against any past, present or future incorporator, officer or member of the governing body of the Issuer, or of any successor corporation, either directly or through the Issuer, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that this Loan Agreement is solely a corporate obligation, and that no personal liability whatever shall attach to, or is or shall be incurred by, any incorporator, officer or member of the governing body of the Issuer or any successor corporation, or any of them, under or by reason of the covenants or agreements contained in this Loan Agreement.

 

  

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(c) The liability of the Issuer for the payment of any money due under any contract or purchase order entered into by it, or for any other costs incurred in connection with the acquisition, construction or improvement of, or other work on, the Bond-Financed Facilities shall be limited solely to (1) the available proceeds of the Bonds, if and when issued for the Bond-Financed Facilities, (2) any money made available to the Issuer for such purpose by the Corporation, and (3) any revenues or other receipts derived by the Issuer from the Bond-Financed Facilities, subject to prior encumbrances.  The limited liability of the Issuer shall be plainly and conspicuously stated on each such contract or purchase order.

 

Section 8.2 Corporate Existence of Issuer

 

The Issuer shall not consolidate with or merge into any other corporation or transfer its property substantially as an entirety, except as provided in Section 10.6 of the Indenture.  Upon any consolidation or merger or any conveyance or transfer of the Issuer's property substantially as an entirety in accordance with such Section, the surviving person shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this Loan Agreement with the same effect as if such surviving person had been named as the Issuer herein.

 

Section 8.3 Notices

 

(a) Any request, demand, authorization, direction, notice, consent, or other document provided or permitted by this Loan Agreement to be made upon, given or furnished to, or filed with, the Issuer, the Corporation, the Trustee, the Bank or the Purchaser Agent must (except as otherwise expressly provided in this Loan Agreement) be in writing and be delivered by one of the following methods:  (1) by personal delivery at the hand delivery address specified pursuant to Section 17.1 of the Indenture, (2) by first-class, registered or certified mail, postage prepaid, addressed as specified pursuant to Section 17.1 of the Indenture, or (3) if facsimile transmission facilities for such party are identified in Section 17.1 of the Indenture or pursuant to a separate notice from such party, sent by facsimile transmission to the number specified in Section 17.1 of the Indenture or in such notice.  Any of such parties may change the address for receiving any such notice or other document by giving notice of the change to the other parties named in this Section.

 

(b) Any such notice or other document shall be deemed delivered when actually received by the party to whom directed (or, if such party is not an individual, to an officer, partner or other legal representative of the party) at the address or number specified pursuant to this Section, or, if sent by mail, 3 days after such notice or document is deposited in the United States mail, addressed as provided above.

 

Section 8.4 Successors and Assigns

 

All covenants and agreements in this Loan Agreement by the Issuer or the Corporation shall bind their respective successors and assigns, whether so expressed or not.

 

Section 8.5 Benefits of Loan Agreement

 

  

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Nothing in this Loan Agreement, express or implied, shall give to any person, other than the parties hereto and their successors hereunder, the Trustee, the Holders or Purchasers of Bonds and the Bank, any benefit or any legal or equitable right, remedy or claim under this Loan Agreement.

 

 

 

 

 

[Remainder of this page intentionally blank.]

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written on the cover page hereof.

 

(SEAL)                                                                           MISSISSIPPI BUSINESS FINANCE

 

CORPORATION

 

Attest

 

 

 

/s/ Cindy S. Carter                                                                           By: /s/ William T. Barry

 

Secretary                                                                               Executive Director

 

 

 

OLIN CORPORATION

 

Attest

 

 

 

/s/ Cathy Stanton                                                                           By: /s/ Stephen C. Curley

 

Title: Secretary to Chairman, President & CEO                        Title: /s/ Vice President and Treasurer

 

 

[Signature page of Loan Agreement]

 

  

  

  

EXHIBIT A

 

 

Description of Bond-Financed Facilities

 

The Bond-Financed Facilities subject to this Loan Agreement include the following components:

 

1.           Buildings and Structures.  The following buildings and structures to be constructed, altered or improved on the real property described above:

 

One or more buildings containing approximately 480,000 square feet located on approximately 140 acres of land in the Lafayette County Industrial Park in Lafayette County, Mississippi and will be located south of County Road 166 on the West side of the Mississippi Central Railroad line.

 

2.           Personal Property and Fixtures.  The following personal property and fixtures to be acquired and installed on the real property described above:

 

Ammunition manufacturing equipment including shell case, bullet and loading equipment.

 

                    A-1

  

  

  

                      EXHIBIT B

FORM OF SERIES 2010 NOTE

 

THIS SERIES 2010 NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAW (OR ANY SUCH SIMILAR SUBSEQUENT LEGISLATION) AND IS SUBJECT TO SIGNIFICANT TRANSFER RESTRICTIONS, AS SET FORTH HEREIN.

 

	
No. R-______

	
$42,000,000

 

OLIN CORPORATION

Series 2010 Note

 

OLIN CORPORATION, a Virginia corporation (the “Corporation”), for value received, hereby promises to pay to Mississippi Business Finance Corporation, a Mississippi public corporation (the “Issuer”) or its assigns, amounts corresponding to the Basic Loan Payments as and when due under the Loan Agreement described below with respect to the Bonds described below, as provided in Section 4.2 of such Loan Agreement.

 

The Issuer has issued its $42,000,000 Recovery Zone Facility Revenue Bonds (Olin Corporation Project), Series 2010 (the “Bonds”) for the benefit of the Corporation pursuant to a Trust Indenture dated as of December 1, 2010 (as hereafter supplemented, the “Trust Indenture”) between the Issuer and U. S. Bank National Association, a national banking association, as trustee (the “Trustee”).  Capitalized terms not otherwise defined herein shall have the meanings assigned in the Trust Indenture.

 

Pursuant to a Loan Agreement dated as of December 1, 2010 (as hereafter supplemented, the “Loan Agreement”) between the Issuer and the Corporation, the Issuer has loaned the proceeds of the Bonds to the Corporation, and the Corporation has agreed to make loan payments at times and in amounts sufficient to pay principal, premium (if any) and interest on the Bonds and to pay the Purchase Price of Bonds tendered in accordance with the optional or mandatory tender provisions of the Trust Indenture.  This note (the “Series 2010 Note”) is issued in order to evidence the Corporation’s payment obligations under the Loan Agreement with respect to the Bonds.  Pursuant to the Trust Indenture and the endorsement below, the Issuer has assigned to the Trustee its rights under the Loan Agreement and this note.

 

This note is one of a series of notes (collectively, the “Series 2010 Note’) authorized to be issued under the Loan Agreement as evidence of the Corporation’s obligations with respect to the Bonds.

 

The payments due on this note shall correspond to the Basic Loan Payments due under the Loan Agreement with respect to the Bonds.  The terms of payment of principal, premium and interest with respect to the Bonds (and the corresponding Basic Loan Payments under the Loan Agreement with respect to the Bonds) are hereby adopted by reference and made a part of this note as if set out herein in full.  The outstanding principal amount of the Bonds shall be deemed to be the outstanding principal amount of this note.

 

  

  

  

This note and any other Series 2010 Note may be modified, amended, cancelled or replaced only in accordance with the terms and conditions of the Trust Indenture and Loan Agreement.

 

In the manner and with the effect provided in the Trust Indenture, Series 2010 Note shall be subject to redemption prior to maturity at the times and in the amounts specified for Bonds issued under the Trust Indenture.  Series 2010 Note shall be deemed “fully paid” to the same extent that the Bonds are deemed “fully paid” under the terms of the Trust Indenture.  Series 2010 Note that have been redeemed prior to maturity or deemed “fully paid” shall cease to be entitled to the benefits of the Trust Indenture and shall cease to bear interest from and after the date of such redemption or provision for payment.

 

If an Event of Default shall occur under the Trust Indenture, the principal of Series 2010 Note  then outstanding may become or be declared due and payable in the manner and with the effect provided in the Trust Indenture.

 

The holders of the Series 2010 Note shall have no right to enforce the provisions of the Trust Indenture, or to institute any action to enforce the covenants therein, or to take any action with respect to any default thereunder, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Trust Indenture.

 

This note shall be registered on the register to be maintained by the Corporation for that purpose at the principal office of the Trustee, and this note shall be transferable only upon said register at said office by the registered owner or by his duly authorized attorney.  Such transfer shall be without charge to the holder hereof, but any taxes or other governmental charges required to be paid with respect to the same shall be paid by the holder requesting such transfer as a condition precedent to the exercise of such privilege.  Upon any such transfer, the Corporation shall execute and the Issuer shall endorse and deliver in exchange for this note a new note registered in the name of the transferee.

 

The Corporation, the Trustee, and any Note registrar may deem and treat the person in whose name this note is registered as the absolute owner hereof for all purposes; and none of the Corporation, the Trustee or any Note registrar shall be affected by any notice to the contrary.  All payments made to the registered owner hereof shall be valid and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for money payable on this note.

 

Copies of the Trust Indenture, the Loan Agreement, and the Bonds are on file at the principal office of the Trustee.

 

This note may not be transferred to any person other than A HOLDER OR PURCHASER of the Bonds, or a trustee or other legal representative for such Holder or PURCHASER.

 

  

  

  

IN WITNESS WHEREOF, the Corporation has executed and delivered this note in accordance with the Loan Agreement.

 

Dated:  _________, 2010.

 

 

OLIN CORPORATION

 

Attest:                                                                By:                                                           

 

Name:                                                                Name:                                                           

 

Title:                                                                Title:                                                           

 

 

[S E A L]

 

PAY TO THE ORDER OF FULL NAME OF TRUSTEE IN ITS CAPACITY AS TRUSTEE UNDER THE TRUST INDENTURE REFERENCE HEREIN, WITHOUT RECOURSE:

MISSISSIPPI BUSINESS FINANCE

 

CORPORATION

 

 

Attest:                                                                By:                                                           

 

Its Secretary                                                                           Its Executive Director

 

 

[S E A L]

 

The Outstanding Principal Amount of this Series 2010 Note is as indicated below.

	
Amount of Advance

	
Date of Advance

	
Outstanding Principal Amount

	
Signature of Payee

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

	  	
B-1mstaxbondpurchaseagree.htm

EXHIBIT 4.3

 

BOND PURCHASE AGREEMENT

 

THIS BOND PURCHASE AGREEMENT dated December 9, 2010 (the "Agreement") is entered into by the Mississippi Business Finance Corporation, (the "Bond Issuer"), a public corporation organized and existing under the laws of the State of Mississippi (the “State”), Olin Corporation, a Virginia corporation (the “Conduit Borrower”), and PNC Bank, National Association, a national banking association, acting in the capacity as administrative agent for the hereinafter referenced Purchasers (the “Administrative Agent”).

 

Background

 

1. The Bond Issuer intends to issue its $42,000,000 Recovery Zone Facility Revenue Bonds (Olin Corporation Project), Series 2010 (the “Bonds”) pursuant to a Trust Indenture dated as of December 1, 2010 (the “Indenture”) between the Bond Issuer and U.S. Bank National Association, a national banking association, as trustee (the “Trustee”).  The Indenture shall be substantially in the form on file with the Bond Issuer.

 

2. The Bonds are being issued to provide financing for the Conduit Borrower.  Proceeds of the Bonds will be used to finance the construction of buildings and improvements, the rehabilitation of existing buildings, and the acquisition of machinery and equipment in Lafayette County, Mississippi for the manufacture of ammunition.

 

3. Proceeds of the Bonds will be loaned by the Bond Issuer to the Conduit Borrower pursuant to a Loan Agreement dated as of December 1, 2010 (the “Loan Agreement”).  Pursuant to the Loan Agreement, the Conduit Borrower will agree to make loan payments at times and in amounts sufficient to pay debt service on the Bonds.

 

4. The Bonds will be issued initially in the Direct Purchase Mode as set forth in the Indenture.  The Purchasers will be the initial purchasers of the Bonds pursuant to an Amended and Restated Credit and Funding Agreement dated as of December 9, 2010 (the “Credit Agreement”) by and among PNC Capital Markets LLC, as lead arranger and sole book runner, the Administrative Agent, the Purchasers identified therein (including without limitation, the PNC Bank, National Association) and the Conduit Borrower.

 

5. The Purchasers have agreed to purchase the Bonds on the terms and conditions described in this Agreement and the in the Credit Agreement.

 

6. In order to induce the Bond Issuer and the Administrative Agent to enter into this Agreement, to induce the Bond Issuer to issue and deliver the Bonds, and to induce the Purchasers to purchase the Bonds, the Conduit Borrower has joined in this Agreement.

 

The terms and conditions of this Agreement are as follows:

 

Section 1. Definitions

 

In addition to the definitions contained elsewhere in this Agreement, the following definitions shall apply:

 

  

  

  

(a) The term “Financing Documents” shall mean: the Indenture, the Loan Agreement, the Tax Certificate and Agreement, the Credit Agreement and this Agreement.

 

(b) Capitalized terms not otherwise defined in this Agreement shall have the meaning assigned in the Indenture.

 

Section 2. Agreement to Purchase

 

On the basis of the representations and warranties set forth herein and in the other Financing Documents and subject to the terms and conditions set forth herein, on the date of Closing (as hereinafter defined), the Purchasers, in accordance with the percentages set forth in the Credit Agreement, shall purchase from the Bond Issuer, and the Bond Issuer shall sell to the Purchasers, in accordance with the percentages set forth in the Credit Agreement, all (but not less than all) of the Bonds at a purchase price of $42,000,000, which is the par amount of the Bonds.

 

The Bonds shall be issued under and secured as provided in the Indenture.

 

Section 3. Representations and Warranties of the Bond Issuer.

 

The Bond Issuer hereby represents and warrants as follows:

 

(1) It is duly organized as a public corporation and instrumentality of the State of Mississippi under the provisions of the Act.

 

(2) It has the corporate power and authority to own its properties and assets and to carry on its business as now being conducted and is duly qualified to do business in every jurisdiction where the character of its properties or the nature of its activities makes such qualification necessary.

 

(3) It has the power to issue the Bonds and to consummate the transactions contemplated by this Agreement and the Financing Documents to which it is a party.

 

(4) By proper action of its governing body, it has duly authorized the issuance and delivery of the Bonds, the execution and delivery of the Financing Documents to which it is a party, and the consummation of the transactions contemplated therein.

 

(5) It has obtained, or will have obtained on or prior to the date of Closing, all consents, approvals, authorizations and orders of governmental authorities that are required to be obtained by it as a condition to the issuance of the Bonds and the execution and delivery of the Financing Documents to which it is a party.

 

(6) The issuance of the Bonds and the execution and delivery by it of the Financing Documents to which it is a party and the consummation by it of the transactions contemplated therein will not (i) conflict with, be in violation of, or constitute (upon notice or lapse of time or both) a default under its charter or bylaws, any indenture, mortgage, deed of trust or other contract, agreement or instrument to which it is a party or is subject, or any resolution, order, rule, regulation, writ, injunction, decree or judgment of any governmental authority or court having jurisdiction over it or (ii) result in or require the creation or imposition of any lien of any nature upon or with respect to any of its properties now owned or hereafter acquired, except as contemplated by the Financing Documents.

 

  

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(7) The Bonds and the Financing Documents to which it is a party will, upon execution and delivery by the Bond Issuer, constitute legal, valid and binding obligations of the Bond Issuer enforceable against it in accordance with the terms of such instruments, except as enforcement thereof may be limited by (i) bankruptcy, insolvency, or other similar laws affecting the enforcement of creditors’ rights and (ii) general principles of equity, including the exercise of judicial discretion in appropriate cases.

 

(8) There is no action, suit, proceeding, inquiry or investigation pending before any court or governmental authority, or threatened against or affecting it or its properties, that (i) involves the consummation of the transactions contemplated by, or the validity or enforceability of, the Financing Documents to which it is a party or (ii) could have a materially adverse effect upon its financial condition or operations.

 

(9) It is exempt from Federal income taxation under the Internal Revenue Code and is exempt from income taxation by the State of Mississippi.

 

(10) Interest on the Bonds is not includible in gross income of the holders for purposes of Federal income taxation.

 

(11) The issuance and sale of the Bonds to the Administrative Agent and the other Purchasers will not be subject to any issuance, transfer or other documentary stamp taxes of the State of Mississippi or any political subdivision of the State of Mississippi.

 

Section 4. Representations and Warranties of the Conduit Borrower.

 

The Conduit Borrower hereby represents and warrants as follows:

 

(1) The Conduit Borrower is on the date hereof and will be as of the date of Closing a duly incorporated corporation validly existing and in good standing or in full force and effect, as the case may be, under the laws of the State of Virginia and duly authorized to conduct business in the State of Mississippi, with full power to own its properties and conduct its businesses.

 

(2) The Conduit Borrower has the full legal and corporate power and authority and has been duly authorized to execute and deliver the Financing Documents to which it is a party, and to take any and all such action as may be required on the Conduit Borrower’s part to carry out, give effect to and consummate the transactions contemplated thereby and hereby and has taken all necessary corporate action with respect thereto;.

 

  

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(3) Each of the Financing Documents to which the Conduit Borrower is a party will be as of the date of Closing duly executed and delivered by the Conduit Borrower, and, assuming their due authorization, execution and delivery by the other parties thereto, constitute legal, valid and binding obligations of the Conduit Borrower, enforceable in accordance with their respective terms, except that enforceability may be limited by laws relating to bankruptcy, reorganization, insolvency, moratorium or other similar laws affecting the rights of creditors, by the exercise of judicial discretion in accordance with general principles of equity, and by matters of public policy.

 

(4) The execution and delivery of each of the Financing Documents to which the Conduit Borrower is a party, the consummation of the transactions contemplated therein and compliance with the provisions hereof and thereof, under the circumstances contemplated herein and therein, do not, on the date hereof, and as of the date of Closing will not, in any material respect, conflict with or constitute on the part of the Conduit Borrower a violation of or breach of or default under the Conduit Borrower’s Articles of Incorporation or Code of Regulations or Bylaws, as the case may be, or any agreement or to the best of the Conduit Borrower’s knowledge, other instrument to which the Conduit Borrower is a party, or by which its property may be bound, or, to the best knowledge of the Conduit Borrower, any existing law, administrative regulation, court order or consent decree to which the Conduit Borrower or any of its properties is subject, which would materially and adversely affect the transactions contemplated hereby or so affect the business, operations or financial condition of the Conduit Borrower.

 

(5) Subsequent to the date of the last financial statements delivered to the Administrative Agent, there have been no material adverse changes in the assets, liabilities or condition of the Conduit Borrower, financial or otherwise and neither the business nor the properties of the Conduit Borrower have been adversely affected in any substantial way as the result of any fire, explosion, accident, strike, riot, flood, windstorm, earthquake, embargo, war or Act of God or of the public enemy.

 

(6) All of the warranties and representations of the Conduit Borrower in the Financing Documents are true and correct as of this date, as if made on this date and will be true and correct as of the date of Closing.

 

(7) The Conduit Borrower covenants and warrants that it knows of no event or circumstance which presently appears likely to occur which would cause it not to have the economic ability to meet all the obligations imposed upon it under the Financing Documents.

 

  

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(8) The Conduit Borrower is not in default in the payment of principal of or premium, if any, or interest on any obligation issued by it.

 

(9) All consents, approvals, authorizations and orders of governmental or regulatory authorities which are required for the Conduit Borrower’s execution and delivery of, consummation of the transactions contemplated by, and compliance with the provisions of the Financing Documents have been or will be timely obtained.

 

(10) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, pending or, to the best knowledge of the Conduit Borrower, threatened, against or affecting the Conduit Borrower or the actions taken or contemplated to be taken by the Conduit Borrower, nor, to the best knowledge of the Conduit Borrower, is there any basis therefor, wherein an unfavorable decision, ruling or finding would materially and adversely affect the business, financial condition or operations of the Conduit Borrower, or the transactions contemplated by, or the validity or enforceability of, the Financing Documents.

 

(11) To the best of the Conduit Borrower’s knowledge, no event has occurred and no condition exists which, upon issuance of the Bonds, would constitute (or with the giving of notice or lapse of time, or both, would constitute) an Event of Default under the Financing Documents.

 

The Conduit Borrower covenants that throughout the term of the Loan Agreement and the Credit Agreement, to use reasonable efforts to operate its facilities in a manner which shall permit it to meet all of its obligations under the Financing Documents to which it is a party.

 

Section 5. Representations and Warranties of the Administrative Agent.

 

The Administrative Agent represents and warrants that:

 

(1) The Administrative Agent represents and warrants that it has full legal right, power and authority to execute and deliver this Agreement and to perform its obligations hereunder and to take the actions contemplated by this Agreement.  This Agreement has been duly executed and delivered by the Administrative Agent and constitutes a legal, valid and binding obligation of the Administrative Agent enforceable against the Administrative Agent in accordance with its terms, except that the enforceability hereof may be limited by laws relating to bankruptcy, reorganization or other similar laws affecting the rights of creditors generally, by the exercise of judicial discretion in accordance with general principles of equity, and by matters of public policy.

 

(2) The obligations of the Bond Issuer under this Agreement to sell the Bonds are subject to the performance by the Administrative Agent of its obligations to be performed hereunder and the performance by each Purchaser to execute and deliver an Investor Letter substantially in the form set forth hereto as Exhibit D, at or prior to the Closing.

 

  

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Section 6. Closing

 

(a) Not later than 2:00 pm (central time) December 9, 2010 or at such other time as shall have been mutually agreed upon by the Bond Issuer and the Administrative Agent, the Bond Issuer will deliver the Bonds to the Administrative Agent, for the account of the Purchasers, in definitive form, duly executed and authenticated, together with the other documents required by Section 6(c); and the Administrative Agent will accept such delivery and cause the purchase price of Bonds evidencing the draws to be made by the Conduit Borrower to be paid to the Trustee, for the account of the Bond Issuer, in immediately available funds by wire transfer to an account of the Trustee, which account shall be identified by written notice to the Administrative Agent at least 3 business days prior to the Closing.

 

(b) Delivery of the Bonds shall be made at the offices of the Administrative Agent (as defined below) in Cleveland, Ohio, or, at the option of the Administrative Agent, at the office of a custodian or depository for securities located in New York, New York and designated by the Administrative Agent at least 3 business days prior to Closing.  Delivery of the Bonds against payment as aforesaid is herein referred to as the “Closing”.  The Bonds delivered at Closing shall be in the form described in the Indenture and shall be registered in such names and shall be in such denominations as shall be specified by the Administrative Agent by written instructions to the Trustee not less than 5 business days prior to the Closing or, with respect to any portion of the Bonds for which such instructions are not given, shall be registered in the name of the Administrative Agent and shall be in such denominations as the Bond Issuer and the Trustee shall designate.  The Bonds to be delivered at the Closing will be made available to the Administrative Agent for checking and packaging not less than 48 hours prior to the Closing.  As to be stated in the Investor Letters, the Purchasers intend the Bonds to be purchased for investment and not with a present view towards resale.  The Administrative Agent and other Purchasers accept the limitations on transfer placed on, and described in the Bonds.

 

(c) At or prior to the Closing, the Bond Issuer and the Conduit Borrower shall deliver the following documents to the Administrative Agent:

 

(1) Indenture.  An executed counterpart of the Indenture.

 

(2) Specimen Bond.  A specimen copy of the Bonds.

 

(3) Loan Agreement. An executed counterpart of the Loan Agreement.

 

(4) Credit Agreement.  An executed counterpart of the Credit Agreement.

 

(5) Tax Certificate and Agreement.  An executed counterpart of the Tax Certificate and  Agreement.

 

(6) Opinion of Bond Counsel.  An opinion of bond counsel (Watkins Ludlam Winter & Stennis, P.A., Jackson, Mississippi ), dated the date of the Closing, substantially in the form attached hereto as Exhibit A.

 

  

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(7) Opinion of Counsel for Conduit Borrower.  An opinion of counsel for the Conduit Borrower (Watkins Ludlam Winter & Stennis, P.A.), dated the date of Closing, substantially in the form attached hereto as Exhibit B-1, and an opinion of Virginia counsel for the Conduit Borrower (George H. Pain) in the form attached hereto as Exhibit B-2.

 

(8) Opinion of Counsel for Bond Issuer.  An opinion of counsel for the Bond Issuer (Balch & Bingham, Jackson, Mississippi), dated the date of the Closing, substantially in the form attached hereto as Exhibit C.

 

(9) Certificate of Bond Issuer.  A certificate signed by the Executive Director of the Bond Issuer, dated the date of Closing, in form and substance satisfactory to the Administrative Agent to the effect that (i) the representations and warranties of the Bond Issuer contained herein and in the Financing Documents are true and correct as of the date of Closing; and (ii) none of the proceedings or authority for the issuance of the Bonds and the execution and delivery of the Financing Documents have been modified, amended or repealed.

 

(10) Certificate of Conduit Borrower. A certificate signed by an officer of the Conduit Borrower, dated the date of Closing, in form and substance satisfactory to the Administrative Agent to the effect that (i) the representations and warranties of the Conduit Borrower contained herein and in the Loan Agreement, Tax Certificate and Agreement and Credit Agreement are true and correct as of the date of Closing; and (ii) each of the agreements of the Conduit Borrower to be complied with and each of the obligations of the Conduit Borrower to be performed hereunder and under the Loan Agreement, the Tax Certificate and Agreement and the Credit Agreement on or prior to the date of Closing have been complied with and performed.

 

(11) Proceedings of Bond Issuer.  A certified copy of all action taken by the Bond Issuer approving the issuance of the Bonds, the execution and delivery of the Financing Documents, and the consummation of the transactions contemplated thereby (including, without limitation, the resolution or resolutions adopted by the governing body of the Bond Issuer for such purpose).

 

(12) Evidence of Tax Exemption.  Evidence reasonably satisfactory to the Administrative Agent that all action necessary as of the Closing for interest on the Bonds to be tax-exempt has been taken, including without limitation (i) an executed arbitrage certificate, and (ii) Form 8038 and evidence of filing.

 

(13) Rebate Instructions.  Instructions from bond counsel to the Bond Issuer and the Trustee regarding procedures for compliance with the rebate requirement of the Internal Revenue Code.

 

(14) Investor Letters.  Executed counterpart of Investor Letters in substantially the form set forth in Exhibit D hereto by each Purchaser of the Bonds.

 

  

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(15) Additional Documentation.  Such additional legal opinions, certificates, proceedings, instruments and other documents as counsel for the Administrative Agent may reasonably request to evidence (i) compliance by the Bond Issuer and the Conduit Borrower with legal requirements, (ii) the truth and accuracy, as of the time of Closing, of the representations and warranties of the Bond Issuer and the Conduit Borrower contained herein, and (iii) the due performance or satisfaction by the Bond Issuer and the Conduit Borrower, at or prior to such time, of all agreements then required to be performed and all conditions then required to be satisfied by it hereunder.

 

Section 7. Covenants of the Bond Issuer.

 

The Bond Issuer covenants with the parties hereto that it will observe all covenants of the Bond Issuer in the Financing Documents to which it is a party.

 

Section 8. Covenants of the Conduit Borrower.

 

The Conduit Borrower covenants as follows:

 

(a) The Conduit Borrower will apply the proceeds of the Bonds as provided in and subject to all of the terms and provisions of the Loan Agreement, the Credit Agreement and the Tax Certificate and Agreement and will observe all covenants of the Conduit Borrower in such instruments.

 

(b) The Conduit Borrower will take such action as may be reasonably requested to facilitate the timely consummation of the transactions contemplated by this Agreement, provided that the Conduit Borrower shall not be required to become qualified to do business or subject to service of process in any state other than Virginia or Mississippi.

 

(c) The Conduit Borrower will notify the Administrative Agent of any material adverse change in the business, properties or financial condition of the Conduit Borrower occurring before Closing.

 

(d) The Conduit Borrower will not take any action or permit any action to be taken on the Conduit Borrower’s behalf, or cause or permit any circumstance within the Conduit Borrower’s control to arise or continue, if such action would adversely affect the excludability from gross income for Federal income tax purposes of the interest on the Bonds.

 

Section 9. Termination

 

(a) If the Bond Issuer and the Conduit Borrower are unable to satisfy the conditions imposed by this Agreement, or if the obligations of the Administrative Agent hereunder and the other Purchasers to purchase and accept delivery of the Bonds shall be terminated for any reason permitted by Section 9(b), or if the representations and warranties of the Bond Issuer and the Conduit Borrower contained herein are not accurate in all material respects on the date of this Agreement and at Closing, this Agreement may be terminated by the Administrative Agent by written notice to the Bond Issuer.  The Administrative Agent may, in its discretion, waive any one or more of the conditions imposed by this Agreement for the protection of the Administrative Agent and proceed with the Closing.

 

  

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(b) The Administrative Agent shall have the right to terminate its obligations hereunder and the Purchasers’ obligations to purchase the Bonds by notifying the Bond Issuer and the Conduit Borrower in writing of its election to do so between the date hereof and the Closing if any of the following shall occur prior to Closing:

 

(1) Between the date hereof and the date of Closing, legislation shall not have been enacted by the Congress or be actively considered for enactment by Congress, or recommended to the Congress for passage by the President of the United States, or introduced to either house of the Congress, nor a decision rendered by any court of competent jurisdiction, or the Tax Court of the United States, nor any order, ruling, regulation or official statement made by the United States Treasury Department or the Internal Revenue Service, affecting (i) Federal income taxation upon revenues or other income of the character derived by the Bond Issuer under the Loan Agreement or upon the interest to be paid on the Bonds or on bonds of the general character of the Bonds or (ii) the application of Treasury Department Circular 230 to bond counsel opinions relating to the Bonds.

 

(2) Between the date hereof and the date of Closing, legislation shall not have been enacted by the Congress or be actively considered for enactment by Congress, or recommended to the Congress for passage by the President of the United States, or introduced or favorably reported for passage to either house of the Congress, and neither a decision, order or decree of a court of competent jurisdiction, nor an order, ruling, regulation or official statement of or on behalf of the Securities and Exchange Commission shall have been rendered or made, with the purpose or effect that the issuance, offering or sale of the Bonds or any related security or obligations of the general character of the Bonds or any related security as contemplated hereby, or the execution and delivery of the Indenture, or indentures similar thereto, is or would be in violation of any provision of, or is or would be subject to registration or qualification requirements under, the Securities Act or the Trust Indenture Act.

 

(3) None of the following shall have occurred: (i) additional material restrictions not in force as of the date hereof shall have been imposed upon trading in securities generally by any governmental authority or by any national securities exchange or such trading shall have been suspended; (ii) the New York Stock Exchange or other national securities exchange, or the National Association of Securities Dealers, Inc. or other national securities association, or the Municipal Securities Rulemaking Board or other similar national self-regulatory rule-making board, or any governmental authority, shall impose, as to the Bonds or similar obligations, any material restrictions not now in force, or increase materially those now in force, with respect to the extension of credit by, or change in the net capital requirements of, underwriters; (iii) a general banking moratorium shall have been declared by Federal, New York or Mississippi authorities; or (iv) a war involving the United States of America, whether or not declared, or any other national or international calamity or crisis, or a financial crisis, shall have occurred, the effect of which, in the judgment of the Administrative Agent, would materially and adversely affect the ability of the Administrative Agent and the other Purchasers to purchase the Bonds.

 

  

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(4) Any litigation shall be initiated or threatened to restrain or enjoin the issuance or sale of the Bonds or in any way protesting or affecting any authority for or the validity or enforceability of the Bonds, any of the Financing Documents, or the existence or powers of the Bond Issuer; or

 

(5) All matters relating to this Agreement, the Bonds, the authorizing legislation, the Indenture, the Loan Agreement, the Credit Agreement, the Tax Certificate and Agreement and the consummation of the transactions contemplated by this Agreement, shall be reasonably satisfactory to and subject to the approval of the Administrative Agent.

 

(c) If this Agreement is so terminated, the Administrative Agent, the Bond Issuer and the Conduit Borrower shall have no further obligation hereunder, except that their respective obligations to pay expenses, as provided herein, shall continue in full force and effect.

 

Section 10. Survival of Representations

 

All representations, warranties and agreements of the Bond Issuer and the Conduit Borrower set forth herein or made pursuant to this Agreement shall, unless waived in writing by the Administrative Agent, remain operative and in full force and effect, regardless of any investigations made by or on behalf of the Administrative Agent or its counsel and shall survive delivery of and payment for the Bonds.

 

Section 11. Expenses

 

(a) the Conduit Borrower shall pay (whether or not the Bonds are sold and delivered as herein provided) any expenses incident to the performance by it of its obligations hereunder, including but not limited to:  (i) the cost of the preparation, reproduction, printing, distribution, mailing, execution, delivery, filing and recording, as the case may be, of this Agreement, the Financing Documents, the Credit Agreement and all other agreements and documents required in connection with the consummation of the transactions contemplated hereby; (ii) the cost of the preparation, engraving, printing, execution and delivery of the definitive Bonds; (iii) the fees and disbursements of bond counsel, counsel for the Bond Issuer, counsel for the Conduit Borrower, counsel for the Administrative Agent, and any other experts retained by the Conduit Borrower; (iv) the initial or acceptance fee of the Trustee; (v) the cost of transportation and lodging for officials and representatives of the Conduit Borrower in connection with attending meetings and the Closing; and (vi) the cost of qualifying or exempting the Bonds and determining their eligibility for investment under the laws of such jurisdictions as the Administrative Agent may designate, including filing fees and fees and disbursements of counsel for the Administrative Agent in connection with such qualification and determination and the preparation of the blue sky memorandum and legal investment survey.

 

  

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(b) The Administrative Agent shall pay (i) the cost of preparing and publishing all advertisements relating to the Bonds; (ii) the cost of the transportation and lodging for representatives of the Administrative Agent to attend meetings and the Closing; and (iii) all other expenses incurred by it in connection with its public offering and the distribution of the Bonds.

 

Section 12. Indemnification and Contribution

 

(a) To the extent permitted by law, the Conduit Borrower agrees to indemnify and hold harmless the Administrative Agent, each Lender, any member, officer, official or employee of the Administrative Agent, each Lender and each person, if any, who controls the Administrative Agent or each Lender within the meaning of Section 15 of the Securities Act of 1933, as amended or Section 20 of the Securities Exchange Act of 1934, as amended (collectively, the “Indemnified Parties”), against any and all losses, claims, damages or liabilities caused by the failure to register the Bonds or any of the Financing Documents under the Securities Act of 1933, as amended, or to qualify any of the Financing Documents under the Trust Indenture Act of 1939, as amended, or the rules or regulations under said Acts.

 

(b) In case any action shall be brought against any one or more of the Indemnified Parties and in respect of which indemnity may, pursuant to the provisions of this Agreement, be sought against the Conduit Borrower, such Indemnified Parties shall promptly notify the Conduit Borrower in writing, and the Conduit Borrower shall promptly assume the defense thereof, including the selection and employment of counsel, the payment of all expenses, and the right to negotiate and consent to settlement.  Any one or more of the Indemnified Parties shall have the right to select and employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Indemnified Parties unless (i) the employment of such counsel has been specifically authorized by the Conduit Borrower or (ii) with regard to the employment of such counsel by the Indemnified Party, the Indemnified Party shall determine that counsel for the Conduit Borrower will not adequately represent the Indemnified Party because the Conduit Borrower is in a position of conflict of interest with the Indemnified Party.  The Conduit Borrower shall not be liable for any settlement of any such action effected without its consent, but if settled with the consent of the Conduit Borrower or if there be a final judgment for the plaintiff in any such action, the Conduit Borrower agrees to indemnify and hold harmless the Indemnified Parties from and against any loss, damage, liability or expense incurred or suffered by reason of such settlement or judgment.

 

(c) The indemnity provided by this Section shall be in addition to any other liability that the Conduit Borrower may otherwise have hereunder, at common law or otherwise, and is provided solely for the benefit of each of the Indemnified Parties and their respective successors, assigns and legal representatives, and no other person shall acquire or have any right under or by virtue of such provisions of this Agreement.

 

Section 13. Benefits of Agreement

 

  

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This Agreement shall inure to the benefit of and be binding upon the Bond Issuer, the Conduit Borrower and the Administrative Agent and their respective successors and assigns.  Nothing in this Agreement is intended or shall be construed to give any person, firm or corporation other than the parties hereto and their respective successors and assigns, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein contained.  No person who purchases the Bonds from the Administrative Agent or any other person or entity shall be deemed to be a successor or assign of the Administrative Agent merely by reason of such purchase.

  

  

 

 

 

 

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IN WITNESS WHEREOF, the Bond Issuer, the Conduit Borrower and the Administrative Agent have caused this Agreement to be executed and delivered by their duly authorized officers.

 

PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent

By: /s/ Thomas Sherman

 

        Authorized Officer

 

 

 

 

 

 

 

 

 

 

 

 

[Signature page Bond Purchase Agreement]

  

13

  

MISSISISPPI BUSINESS FINANCE CORPORATION

By: /s/ William T. Barry

 

Title: Executive Director

 

[Signature page Bond Purchase Agreement]

  

14

  

OLIN CORPORATION

By: /s/ Stephen C. Curley

 

Title: Vice President and Treasurer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature page Bond Purchase Agreement]

  

  

  

EXHIBIT A

 

OPINION OF BOND COUNSEL

 

(Form of Opinion of Bond Counsel)

 

[Closing Date]

 

PNC Bank, National Association,

as Administrative Agent

 

Purchasers in Credit Agreement:

PNC Bank, National Association

Wells Fargo Bank, N.A.

Bank of America, N.A.

Northern Trust Corporation

Branch Banking and Trust Company

U.S. Bank National Association

Bank of Oklahoma, N.A.

 

	
  

	
Re:

	
Mississippi Business Finance Corporation Recovery Zone Facility Revenue Bonds (Olin Corporation Project), Series 2010 in the aggregate principal amount of up to $42,000,000

 

 

We have acted as bond counsel in connection with the issuance of the above-referenced bonds (collectively, the “Bonds”) by Mississippi Business Finance Corporation, a public corporation organized under the laws of the State of Mississippi (the “Issuer”) including particularly Section 57-10-401, et seq., Mississippi Code of 1972, as amended and supplemented (the "Act").  The Issuer has duly authorized the issuance of its Bonds pursuant to that certain Trust Indenture dated as of December 1, 2010 (the "Indenture") between the Issuer and U.S. Bank National Association, a national banking association, as trustee (the "Trustee").  Capitalized terms not otherwise defined in this opinion shall have the meaning assigned in the Indenture.

 

The Bonds have been issued pursuant to the Indenture for the purpose financing the construction of buildings and improvements, the rehabilitation of existing buildings, and the acquisition of machinery and equipment in Lafayette County, Mississippi to be owned and operated by Olin Corporation, a Virginia corporation (the “Corporation”).

 

  

  

  

Pursuant to a Loan Agreement dated as of December 1, 2010 (the "Loan Agreement") between  the Issuer and the Corporation, the Issuer has agreed to loan the Series 2010 Bond proceeds to the Corporation, and the Corporation has agreed to make payments to the Issuer at times and in amounts sufficient to pay all debt service requirements on the Bonds (the "Loan Payments").  Pursuant to the Indenture, the Issuer has assigned and pledged to the Trustee the Loan Payments and all the Issuer's rights under the Loan Agreement to secure the payment of debt service on the Bonds.  Effective for the period in which the Bonds are in the Direct Purchase Mode, the Trustee shall assign the right to receive Loan Payments to the Purchaser Agent..

 

The Bonds are special, limited obligations of the Issuer, payable solely from, and secured by the Loan Payments received by the Issuer under the Loan Agreement.

 

We have examined executed counterparts of the Indenture, the Loan Agreement and that certain Bond Purchase Agreement dated December9, 2010 between the Issuer, the Corporation and PNC Bank, National Association, a national banking association, acting in the capacity as administrative agent for the above-referenced Purchasers (collectively referred to as the "Financing Documents"), and such other certificates, proceedings, proofs and documents as we have deemed necessary in connection with the opinions hereinafter set forth.

 

As to various questions of fact material to our opinion, we have relied upon the representations made in the documents described above and upon certificates of certain public officials and officers of the Issuer, the Corporation and the Trustee (including without limitation certificates by the Corporation as to the use of the proceeds of the Bonds which are material to our opinion in paragraphs 5 and 6 below) without undertaking to verify the same by independent investigation.  Based upon the foregoing and upon such investigation as we have deemed necessary, we are of the opinion that:

 

1. The Issuer has been duly organized as a public corporation under the provisions of the Act.

 

2. The Issuer has corporate power and authority to enter into and perform its obligations under each of the Financing Documents to which it is a party and to issue and deliver the Bonds.  The execution, delivery and performance of its obligations under each of the Financing Documents to which it is a party and the issuance and delivery of the Bonds by the Issuer have been duly authorized by all requisite corporate action, and such Financing Documents and the Bonds have been duly executed and delivered by the Issuer.

 

3. The Bonds constitute legal, valid and binding limited obligations of the Issuer, payable as to principal, premium (if any) and interest solely out of the Loan Payments.

 

4. Each of the Financing Documents constitutes a legal, valid and binding obligation of the Issuer and is enforceable against the Issuer in accordance with its terms.  The Indenture creates a valid lien on  Loan Payments and the rights of the Issuer under the Loan Agreement.

 

5. Interest on the Bonds is excludible from gross income for federal income tax purposes, is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, and is not included in the adjusted current earnings of corporations for purposes of calculating the alternative minimum tax.

 

  

  

  

6. The opinions set forth in paragraph 5 are subject to the condition that the Issuer and the Corporation comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludible from gross income for federal tax purposes.  Both the Issuer and the Corporation have covenanted to comply with all such requirements.  Failure to comply with certain of such requirements may cause interest on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds.

 

7. Under existing law, interest on the Bonds is exempt from Mississippi income taxation.

 

We express no opinion regarding federal tax consequences arising with respect to the Bonds, other than the opinions expressed in paragraph 5 above.

 

The rights of the holders of the Bonds and the enforceability of the Bonds and the Indenture may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights and general principles of equity, including the exercise of judicial discretion in appropriate cases.

 

Very truly yours,

 

  

  

  

EXHIBIT B-1

 

OPINION OF COUNSEL FOR THE CONDUIT BORROWER

 

[MISSISSIPPI COUNSEL OPINION]

 

December __, 2010

 

Mississippi Business Finance Corporation

Jackson, Mississippi

PNC Bank, National Association,

as Administrative Agent

Purchasers in Credit Agreement:

PNC Bank, National Association

Wells Fargo Bank, N.A.

Bank of America, N.A.

Northern Trust Corporation

Branch Banking and Trust Company

U.S. Bank National Association

Bank of Oklahoma, N.A.

U.S. Bank National Association

Nashville, Tennessee

 

	
  

	
Re:

	
Mississippi Business Finance Corporation Recovery Zone Facility Revenue Bonds (Olin Corporation Project), Series 2010 in the aggregate principal amount of up to $42,000,000

 

Ladies and Gentlemen:

 

We have acted as special counsel for Olin Corporation, a Virginia corporation (the “Conduit Borrower”), in connection with the issuance of the above-referenced bonds (the “Bonds”).  The Bonds are being purchased from the Mississippi Business Finance Corporation (the “Bond Issuer”) and the Conduit Borrower by PNC Bank, National Association, as administrative agent (the “Administrative Agent”) for the benefit of the Purchasers (as defined and set forth in the hereafter defined Bond Purchase Agreement) pursuant to a Bond Purchase Agreement dated December 9, 2010 (the “Bond Purchase Agreement”) among the Bond Issuer, the Conduit Borrower and the Administrative Agent.  Capitalized terms not otherwise defined herein shall have the meanings assigned in the Bond Purchase Agreement or (if not defined in the Bond Purchase Agreement) in the Indenture referred to in the Bond Purchase Agreement.

 

  

  

  

We have examined the following:  executed counterparts of the Bond Purchase Agreement, the Loan Agreement, the Tax Certificate and Agreement and the Amended and Restated Credit and Funding Agreement among the Bond Issuer, the Conduit Borrower and the Administrative Agent; pertinent proceedings of the Conduit Borrower (collectively, the “Conduit Borrower Financing Documents”); certificates executed by officers of the Conduit Borrower; and such other certificates, proceedings, proofs and documents as we have deemed necessary in connection with the opinions hereinafter set forth.  As to various questions of fact material to our opinion, we have relied upon the representations made in the Conduit Borrower Financing Documents and upon certificates of officers of the Conduit Borrower.

 

We have assumed, with your permission the following:

a.           The genuineness of all signatures on and the authenticity of all documents submitted to us as originals.

b.           The conformity to original documents of documents submitted to us as certified or photostatic copies.

c.           Any documents that choose the laws of the state other than the State of Mississippi constitute the legal, valid, binding and enforceable obligations of the parties thereto under the laws of the jurisdiction chosen.

d.           Each of the parties to the Conduit Borrower Financing Documents (a)(i) is duly organized and incorporated, (ii) is validly existing, (iii) is in good standing under the laws of the respective jurisdiction of its incorporation or its organization; (b) (other than the Conduit Borrower) each is duly qualified to do business in the State of Mississippi or is otherwise not required to be qualified in Mississippi; and (c) each has the full power and authority under the laws of the jurisdiction of its respective incorporation or organization to enter into the transactions contemplated by the Conduit Borrower Financing Documents to which each is a party, to execute and deliver the Conduit Borrower Financing Documents to which each is a party and to perform its respective duties, obligations and privileges expressed in the Conduit Borrower Financing Documents.

e.           The Conduit Borrower Financing Documents have been duly authorized, executed and delivered by the parties thereto for reasonably equivalent value received by each such party and the Conduit Borrower shall receive benefits and/or consideration from the loans being made to the Conduit Borrower under the Conduit Borrower Financing Documents.

f.           That all natural persons involved in the transactions contemplated by the Conduit Borrower Financing Documents have sufficient legal capacity to enter into and perform their respective obligations under the Conduit Borrower Financing Documents and to carry out their roles in the Conduit Borrower Financing Documents.

g.           That the Conduit Borrower Financing Documents do not violate any provisions of federal law pertaining to federal antitrust law and federal constitutional law.

  

  

  

h.           That the conduct of the parties to the Conduit Borrower Financing Documents and their counsel complies with any requirement of good faith, fair dealing and conscionability and without notice or knowledge of any defense against the enforcement of any rights created by, or adverse claim to any property or security interest transferred or created by any of the Conduit Borrower Financing Documents.

i.           There has not been any mutual mistake of fact or misunderstanding, fraud, duress or undue influence.

j.           All judicial and administrative decisions applicable to this opinion are generally available to lawyers practicing in the State of Mississippi.

k.           That the representations and certifications made in the Conduit Borrower Financing Documents are true and correct as of the date of this opinion.

 

Based upon the assumptions, exceptions and limitations contained herein, we are of the opinion that:

 

	
  

	
1.

	
The Conduit Borrower is duly qualified to transact business and is in good standing as a foreign corporation in the State of Mississippi.

 

	
  

	
2.

	
Each of the Conduit Borrower Financing Documents constitutes a valid and legally binding obligation of the Conduit Borrower enforceable in accordance with the terms thereof.

 

	
  

	
3.

	
None of the Conduit Borrower Financing Documents violate any present Mississippi or Federal statute, rule or regulation applicable to the Conduit Borrower.

 

	
  

	
4.

	
No registration with, consent or approval of or other action by any governmental authority or regulatory body in the State of Mississippi is required in connection with the transactions contemplated by the Conduit Borrower Financing Documents.

 

	
  

	
5.

	
The choice of law provisions of the Conduit Borrower Financing Documents is generally enforceable in accordance with their terms.

 

The opinions set forth are subject to the following qualifications and limitations:

a.           Our opinions are subject to the following:

i.           The effect of any applicable bankruptcy, insolvency, avoidance, reorganization, moratorium or similar laws affecting creditors' rights generally (including such limitations as may deny giving effect to waivers of a debtor's or guarantor's rights) and the effect of any statutory or other law regarding fraudulent conveyances;

  

  

  

ii.           General principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and no opinion is expressed as to whether any provision is specifically enforceable in equity;

iii.           The obligation of the secured parties to act reasonably, in good faith and with fairness in exercising rights under the Conduit Borrower Financing Documents;

iv.           Certain rights, remedies and waivers contained in the Conduit Borrower Financing Documents may be limited or rendered ineffective by applicable Mississippi laws or judicial decisions, which laws and decisions, however, will not in our opinion materially interfere with the practical realization of the benefits or security afforded thereby, except as to the economic consequences of any procedural delay which may result from attempts to prevent enforcement;

v.           Any provision in the Conduit Borrower Financing Documents which allows the automatic appointment of a receiver may not be enforced as the appointment of a receiver for the collateral will not be authorized except as an ancillary part of a separate action on the debt; and

vi.           Enforceability of a waiver of trial by jury is within the discretion of the trial judge.

b.           We express no opinion as to the validity, binding effect, enforceability or performance of any provision in any of the Conduit Borrower Financing Documents to the extent that such provision (i) purports to waive any requirement of reasonable or diligent performance or other care on the part of the secured parties with respect to the recognition or preservation of the rights of the secured parties to or interest in any property subject to any security interest or lien granted thereby, (ii) provides that delays by the secured parties will not operate as a waiver, (iii) attempts to modify or waive any requirements of commercial reasonableness or notice, (iv) purports to subject the Conduit Borrower to the jurisdiction of any state or federal court sitting in any particular jurisdiction, (v) purports to waive any of the Conduit Borrower's rights and/or defenses in any action, suit or proceeding, including without limitation any waiver of right to a jury trial, (vi) purports to grant irrevocable powers of attorney for any party to act on behalf of the Conduit Borrower, (vii) purports to grant an absolute assignment of the leases and rents, rather than a collateral assignment, (viii) provides that failure to exercise or delay in exercising rights or remedies will not operate as a waiver of the right or remedy, (ix) provides for the indemnification or prospective release of a party against liability for its own wrongful or negligent acts, or (x) purports to waive or limit third parties rights to require marshalling of assets or to a sale in inverse order of alienation.

c.           We express no opinion with regard to the Blue Sky laws of any jurisdiction, including the State of Mississippi, or any federal securities laws or regulations.

d.           We are licensed to practice in the State of Mississippi, and we express no opinion concerning the laws of any other jurisdiction other than the State of Mississippi and the United States of America.

  

  

  

With respect to the opinion expressed in paragraph 2 herein, we have relied upon the opinion addressed to our firm and others dated as of the date hereof of December 9, 2010, special Virginia counsel to the Conduit Borrower with respect to certain matters provided therein.

The opinions expressed in this letter are given solely for the benefit of parties to whom it is addressed in connection with the transactions referred to herein and may not be quoted or relied on by, nor may copies be delivered, to any other person or used for any other purpose or any other transaction, without our prior written consent.  The opinions expressed in this letter are rendered as of the date hereof and are based on statutory and case law in effect as of the date hereof.  We undertake no obligation to advise you of any change in any matters herein, whether legal or factual, after the date hereof.

IRS Circular 230 Notice:  To ensure compliance with requirements imposed by the IRS, we inform you that, unless specifically indicated otherwise, any tax advice contained in this communication was not intended or written to be used, and cannot be used, for the purposes of (1) avoiding tax-related penalties under the Internal Revenue Code, or (2) promoting, marketing or recommending to another party any tax-related matter addressed herein.

 

Sincerely,

 

Watkins Ludlam Winter & Stennis, P.A.

  

  

  

 

EXHIBIT B-2

 

OPINION OF COUNSEL FOR THE CONDUIT BORROWER

 

[VIRGINIA COUNSEL OPINION]

 

December 9, 2010

 

Mississippi Business Finance Corporation

Jackson, Mississippi

PNC Bank, National Association,

as Administrative Agent

Purchasers in Credit Agreement:

PNC Bank, National Association

Wells Fargo Bank, N.A.

Bank of America, N.A.

Northern Trust Corporation

Branch Banking and Trust Company

U.S. Bank National Association

Bank of Oklahoma, N.A.

U.S. Bank National Association

Nashville, Tennessee

 

	
  

	
Re:

	
Mississippi Business Finance Corporation Recovery Zone Facility Revenue Bonds (Olin Corporation Project), Series 2010 in the aggregate principal amount of up to $42,000,000

 

Ladies and Gentlemen:

 

I am General Counsel for Olin Corporation, a Virginia corporation (the “Conduit Borrower”).  The above-referenced bonds (the “Bonds”) are being purchased from the Mississippi Business Finance Corporation (the “Bond Issuer”) and the Conduit Borrower by PNC Bank, National Association, as administrative agent (the “Administrative Agent”) for the benefit of the Purchasers (as defined and set forth in the hereafter defined Bond Purchase Agreement) pursuant to a Bond Purchase Agreement dated December 9, 2010 (the “Bond Purchase Agreement”) among the Bond Issuer, the Conduit Borrower and the Administrative Agent.  Capitalized terms not otherwise defined herein shall have the meanings assigned in the Bond Purchase Agreement or (if not defined in the Bond Purchase Agreement) in the Indenture referred to in the Bond Purchase Agreement.

 

  

  

  

I, or others under my direction, have examined the following:  executed counterparts identified to me as true copies of originals as signed, of: the Bond Purchase Agreement, the Loan Agreement, the Tax Certificate and Agreement and the Amended and Restated Credit and Funding Agreement among the Bond Issuer, the Conduit Borrower and the Administrative Agent; pertinent proceedings of the Conduit Borrower (collectively, the “Conduit Borrower Financing Documents”); certificates executed by officers of the Conduit Borrower; and such other certificates, proceedings, proofs and documents as I have deemed necessary in connection with the opinions hereinafter set forth. As to various questions of fact material to my opinion, I have relied upon the representations made in the Conduit Borrower Financing Documents and upon certificates of officers of the Conduit Borrower.

 

Based upon the foregoing, I am of the opinion that:

 

	
  

	
1.

	
The Conduit Borrower is a corporation duly organized and validly existing under the laws of the Commonwealth of Virginia.  This opinion is based solely on a review of the certificate of good standing of the Conduit Borrower issued by the Commonwealth of Virginia.

 

	
  

	
2.

	
To the best of my knowledge there is no pending or threatened material action, suit or proceeding before any court or governmental agency, authority or body involving the Conduit Borrower or any of its properties which would materially affect the performance by the Conduit Borrower under the Conduit Borrower Financing Documents.

 

	
  

	
3.

	
The Conduit Borrower Financing Documents have been duly authorized, executed and delivered by the Conduit Borrower.

 

	
  

	
4.

	
The issuance and sale of the Bonds, and the compliance by the Conduit Borrower with the provisions of the Conduit Borrower Financing Documents will not conflict with or result in a breach of the terms or provisions of, or constitute a default under, any indenture, loan agreement or other agreement or instrument in respect of indebtedness for money borrowed to my knowledge to which the Conduit Borrower is a party or by which the Conduit Borrower is bound or, to my knowledge, any other agreement or instrument to which the Conduit Borrower is a party or by which the Conduit Borrower is bound or to which any of the properties or assets of the Conduit Borrower is subject, nor will such action result in any violation of the provisions of the Certificate of Incorporation or the By-Laws, as amended or, to my knowledge, any statute or any order, rule or regulation of any court or regulatory authority or other governmental agency or body having jurisdiction over the Conduit Borrower or any of its properties; and no consent, approval, authorization, order, registration or qualification of or with any court or any such regulatory authority or other governmental agency or body is required on the part of the Conduit Borrower for the issuance and sale of the Bonds or the consummation of the transactions contemplated by the Conduit Borrower Financing Documents, except such consents, approvals, authorizations, registrations or qualifications as may be required under state or federal securities or Blue Sky laws.

 

  

  

  

The opinions expressed herein are limited to the laws of the Commonwealth of Virginia.

My opinions are based on the assumptions, and are subject to the qualifications and limitations, set forth in this letter, including the following:

 

	
1.  

	
I express no opinion as to the effect of the Conduit Borrower Financing Documents on local law which shall include charters, ordinances, administrative opinions and rules and regulations of cities, counties, towns, municipalities and special political subdivisions (whether created or enabled through legislative action at the federal, state or regional level).

 

	
2.  

	
I have assumed that: (a) each natural person executing any of the Conduit Borrower Financing Documents is legally competent; (b) all official public records are accurate and complete; and (c) there has not been any mutual mistake of fact or misunderstanding, fraud, duress or undue influence.

 

	
3.  

	
With respect to my opinion that the Conduit Borrower Financing Documents have been duly executed and delivered by the Conduit Borrower, I note that I was not present at the execution and delivery of the original documents and so I have based my opinion on examination of copies of such Conduit Borrower Financing Documents and certificates, statements or other representations of the officers of the Conduit Borrower.

 

	
4.  

	
When an opinion is stated to be “to my knowledge” or the statement is made that “I have no knowledge”, or other words of similar import appear, the language means only that I have no actual knowledge to the contrary and does not indicate or imply any investigation or inquiry, of the Conduit Borrower or others, on my part.

 

	
5.  

	
This opinion is limited to the matters specifically stated in this letter, and no further opinion is to be implied or may be inferred beyond the opinions specifically stated herein.  Unless otherwise stated herein, I have made no independent investigation regarding factual matters.  This opinion is made as of the date of this opinion, and the factual matters in existence as of such date, and I specifically disclaim any obligation to monitor any of the matters stated in this opinion or to advise the persons entitled to rely on this opinion of any change in law or fact after the date of this opinion which might affect any of the opinions stated herein.

 

  

  

  

This opinion is rendered solely for your benefit,, in connection with the execution and delivery by the Conduit Borrower of the Conduit Borrower Financing Documents, and may not be released to or relied upon by any other person or for any other purpose without my prior written consent.

 

Sincerely,

 

/s/ George H. Pain

 

George H. Pain

	
  

	
Senior Vice President, General Counsel and Secretary, Olin Corporation

  

  

  

EXHIBIT C

 

 

OPINION OF COUNSEL FOR THE BOND ISSUER

 

[Letterhead of Balch & Bingham, Jackson, Mississippi]

[Date of Closing]

Mississippi Business Finance Corporation

Jackson, Mississippi

PNC Bank, National Association,

as Administrative Agent

Purchasers in Credit Agreement:

PNC Bank, National Association

Wells Fargo Bank, N.A.

Bank of America, N.A.

Northern Trust Corporation

Branch Banking and Trust Company

U.S. Bank National Association

Bank of Oklahoma, N.A.

U.S. Bank National Association

Nashville, Tennessee

	
  

	
Re:

	
Mississippi Business Finance Corporation Recovery Zone Facility Revenue Bonds (Olin Corporation Project), Series 2010 in the aggregate principal amount of up to $42,000,000

 

We have acted as counsel for Mississippi Business Finance Corporation, an Mississippi public corporation (the “Bond Issuer”), in connection with the issuance of the above-referenced bonds (the “Bonds”).  The Bonds are being purchased from the Bond Issuer by PNC Bank, National Association, as administrative agent (the “Administrative Agent”) for the benefit of the Purchasers  (as defined and set forth in the hereafter defined Bond Purchase Agreement) pursuant to a Bond Purchase Agreement dated December 9, 2010 (the “Bond Purchase Agreement”) among the Bond Issuer, Olin Corporation, a Virginia Corporation (the “Conduit Borrower”) and the Administrative Agent.  Capitalized terms not otherwise defined herein shall have the meanings assigned in the Bond Purchase Agreement or (if not defined in the Bond Purchase Agreement) in the Indenture referred to in the Bond Purchase Agreement.

 

We have examined the following:  executed counterparts of the Bond Purchase Agreement and the other Financing Documents to which the Bond Issuer is a party; pertinent proceedings of the Bond Issuer; certificates executed by officers of the Bond Issuer; and such other certificates, proceedings, proofs and documents as we have deemed necessary in connection with the opinions hereinafter set forth.  As to various questions of fact material to our opinion, we have relied upon the representations made in the Financing Documents and upon certificates of public officials and officers of the Bond Issuer.

 

  

  

  

Based on the foregoing and upon such investigation as we have deemed necessary, we are of the opinion that:

 

1. The Bond Issuer has been duly organized and is validly existing as a public corporation and instrumentality of the State of Mississippi under the provisions of the Act.

 

2. The Bond Issuer has the corporate power and authority to own its properties and assets and to carry on its business as now being conducted and is duly qualified to do business in every jurisdiction where the character of its properties or the nature of its activities makes such qualification necessary.

 

3. The Bond Issuer has the power to issue the Bonds and to consummate the transactions contemplated by the Bond Purchase Agreement and the Financing Documents to which it is a party.

 

4. By proper action of its governing body, the Bond Issuer has duly authorized the issuance and delivery of the Bonds, the execution and delivery of the Financing Documents to which it is a party, and the consummation of the transactions contemplated by such Financing Documents.

 

5. The Bond Issuer has obtained all consents, approvals, authorizations and orders of governmental authorities that are required to be obtained by it as a condition to the issuance of the Bonds and the execution and delivery of the Financing Documents to which it is a party.

 

6. The issuance of the Bonds and the execution and delivery by the Bond Issuer of the Financing Documents to which it is a party and the consummation by it of the transactions contemplated therein will not (i) conflict with, be in violation of, or constitute (upon notice or lapse of time or both) a default under its charter or bylaws, any indenture, mortgage, deed of trust or other contract, agreement or instrument to which it is a party or is subject, or any resolution, order, rule, regulation, writ, injunction, decree or judgment of any governmental authority or court having jurisdiction over it or (ii) result in or require the creation or imposition of any lien of any nature upon or with respect to any of its properties now owned or hereafter acquired, except as contemplated by the Financing Documents.

 

7. The Bonds and the Financing Documents to which the Bond Issuer is a party constitute legal, valid and binding obligations of the Bond Issuer enforceable against it in accordance with the terms of such instruments, except as enforcement thereof may be limited by (i) bankruptcy, insolvency, or other similar laws affecting the enforcement of creditors’ rights and (ii) general principles of equity, including the exercise of judicial discretion in appropriate cases.

 

8. There is no action, suit, proceeding, inquiry or investigation pending before any court or governmental authority, or threatened against or affecting the Bond Issuer or its properties, that (i) involves the consummation of the transactions contemplated by, or the validity or enforceability of, the Financing Documents to which the Bond Issuer is a party or (ii) could have a materially adverse effect upon its financial condition or operations.

 

  

  

  

9. The Bond Issuer has obtained all necessary licenses and permits to carry on its business and operate all its properties and facilities and has obtained all necessary certificates of need or other similar approvals with respect to the facilities being financed with the proceeds of the Bonds.

 

We express no opinion regarding the enforceability of the indemnity and contribution provisions of Section 12 of the Bond Purchase Agreement.

 

For purposes of our opinion regarding the binding effect and enforceability of Financing Documents to which the Administrative Agent is a party, we have assumed that the Administrative Agent is qualified to do business in Mississippi to the extent that such qualification is required by the nature of this transaction or the Administrative Agent’s other activities in the State of Mississippi.

 

This opinion is rendered solely for your benefit.  It is not to be relied upon by any other person or for any other purpose.  This opinion is given as of the date hereof and we assume no obligation to update, revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur.

 

Very truly yours,

  

  

  

EXHIBIT D

Form of Investor Letters

December __, 2010

Mississippi Business Finance Corporation

Jackson, Missisisippi

	
  

	
Re:

	
$42,000,000 Recovery Zone Facility Revenue Bonds (Olin Corporation Project), Series 2010, issued by the Mississippi Business Finance Corporation

Ladies and Gentlemen:

_____________ (the “Original Purchaser”) is the purchaser of a portion of the above-referenced revenue bonds (the “Bonds”) issued pursuant to the Trust Indenture, dated as of December 1, 2010 (the “Indenture”), between the Mississippi Business Finance Corporation (the “Issuer”) and U.S. Bank National Association, as trustee (the “Trustee”).  Capitalized terms not otherwise defined have the meanings ascribed thereto in the Indenture.

The undersigned duly authorized officer of the Original Purchaser hereby represents to you that:

1.           The Original Purchaser is a “Qualified Institutional Buyer” as defined in Rule 144(A) of the regulations of the Securities and Exchange Commission adopted under the Securities Act of 1933, as amended, or an “Accredited Investor” as defined in Rule 501(a) of the regulations of the Securities and Exchange Commission adopted under the Securities Act of 1933, as amended, or both.

2.           The Original Purchaser has sufficient knowledge and experience in financial and business matters, including purchase and ownership of municipal and other tax-exempt obligations, to be able to evaluate the risks and merits of the investment represented by the purchase of the Bonds.

3.           The Original Purchaser is aware that the operations of Olin Corporation, as the borrower of the proceeds of the Bonds (the “Borrower”), pursuant to the Loan Agreement dated as of December 1, 2010 (the “Loan Agreement”) between the Mississippi Business Finance Corporation (the “Issuer”) and the Borrower, involve certain economic variables and risks that could adversely affect the security of its investment in the Bonds.

4.           The Original Purchaser is able to bear the economic risks of such investment.

5.           The Original Purchaser acknowledges that no offering circular, official statement, prospectus or other comprehensive offering statement containing material information with respect to the Issuer, the Bonds or the Loan Agreement has been provided and the Original Purchaser has made its own inquiry and analysis with respect to the Issuer, the Bonds, the Borrower and the security therefor, and other material factors affecting the security and payment of the Bonds.

  

  

  

6.           The Original Purchaser acknowledges that it has either been supplied with or has access to information, including financial statements and other financial information, to which a reasonable investor would attach significance in making its investment decisions, and the Original Purchaser has had the opportunity to ask questions and receive answers from knowledgeable individuals concerning the Issuer, the Loan Agreement, the Borrower, the Bonds and the security therefor, so that as a reasonable investor, the Original Purchaser has been able to make its decision to purchase the Bonds.

7.           The Original Purchaser understands that the Bonds, (a) are not being registered under the Securities Act of 1933 and are not being registered or otherwise qualified for sale under the "Blue Sky" laws and regulations of any state, (b) will not be listed on any stock or other securities exchange and (c) will carry no rating from any rating service.

8.           The Original Purchaser agrees that it will not sell or assign the Bonds, or any interest therein, except to an Accredited Investor or a Qualified Institutional Buyer in a transaction that is exempt from registration under the Securities Act of 1933, as amended, and that does not adversely affect the exemption from registration of the Bonds under Section 4(2) of the Securities Act of 1933, as amended.  We agree not to sell, transfer or otherwise dispose of all or any part of our interest in the Bonds unless we provide to the Issuer and the Borrower (i) a written statement representing that the purchaser is a Qualified Institutional Buyer or an Accredited Investor (which representation may be based on a certification from the purchaser, so long as we have no information that should have led us to doubt such certification), and that such sale, transfer or other disposition is in compliance with applicable securities laws; and (ii) a letter of representation to the Issuer executed by the purchaser or transferee, which letter is in substantially the form of this letter and includes a representation that the purchaser or transferee is a Qualified Institutional Buyer or an Accredited Investor.

[ORIGINAL PURCHASER]

By:

Title:

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