FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
Exhibit 10.2
FIRST AMENDMENT TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (hereinafter referred to as the Amendment) dated as of February 20, 2008, by and among EXCO RESOURCES, INC. (Borrower), CERTAIN SUBSIDIARIES OF BORROWER, as Guarantors (the Guarantors), the LENDERS party hereto (the Lenders), and JPMORGAN CHASE BANK, N.A., as Administrative Agent (Administrative Agent). Unless the context otherwise requires or unless otherwise expressly defined herein, capitalized terms used but not defined in this Amendment have the meanings assigned to such terms in the Credit Agreement (as defined below).
WITNESSETH:
WHEREAS, Borrower, Guarantors, Administrative Agent and Lenders have entered into that certain Second Amended and Restated Credit Agreement dated as of May 2, 2007 (as amended, supplemented or otherwise modified from time to time, the Credit Agreement); and
WHEREAS, in connection with (i) the acquisition by EXCO Appalachia, Inc. (EXCO Appalachia) of certain oil and gas properties pursuant to that certain Asset Purchase Agreement, dated as of December 7, 2007 (the Purchase Agreement), among certain Persons, as sellers, and EXCO Appalachia, as buyer (the Appalachia Purchase) and (ii) the merger of EXCO Appalachia with and into North Coast Energy, Inc. (North Coast), Borrower has requested that (x) the Administrative Agent and the Lenders amend the Credit Agreement to increase the Maximum Facility Amount and (y) the Lenders increase the Borrowing Base;
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, Borrower, Guarantors, Administrative Agent and the Lenders hereby agree as follows:
SECTION 1. Amendments to Credit Agreement. Subject to the satisfaction or waiver in writing of each condition precedent set forth in Section 3 hereof, and in reliance on the representations, warranties, covenants and agreements contained in this Amendment, the Credit Agreement shall be amended in the manner provided in this Section 1.
1.1 Amended Definitions. Section 1.01 of the Credit Agreement shall be and it hereby is amended by amending and restating the following definitions to read in its entirety as follows:
Adjusted LIBO Rate means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.
Maximum Facility Amount means $1,175,000,000.
1.2 Redetermined Borrowing Base. This Amendment shall constitute a notice of the redetermination of the Borrowing Base pursuant to Section 3.04 of the Credit Agreement and
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Administrative Agent hereby notifies Borrower that, as of the effective date of this Amendment, the Borrowing Base as of such date and until but not including the next Redetermination Date, is $1,200,000,000.
1.3 Notices. Subclause (ii) of Section 11.01(a) shall be and it hereby is amended in its entirety to read as follows:
(ii) if to the Administrative Agent or Issuing Bank, to JPMorgan Chase Bank, N.A., JPMorgan Loan Services, 21 South Clark St., 19th Floor, Chicago, Illinois 60603-2003, Telecopy No.: (312) 385-7096, Attention: Claudia Kech, with a copy to JPMorgan Chase Bank, N.A., 2200 Ross Avenue, 3rd Floor, TX1-2448, Dallas, Texas 75201, Telecopy No.  ###-###-####, Attention: Wm. Mark Cranmer, Senior Vice President;
1.4 Amendment to Schedule 2.01. Schedule 2.01 to the Credit Agreement shall be and it hereby is amended in its entirety by substituting Schedule 2.01 attached hereto.
SECTION 2. New Lenders and Reallocation of Commitments and Loans. The Lenders have agreed among themselves to reallocate their respective Commitments and to, among other things, allow certain financial institutions identified by J.P. Morgan Securities, Inc., in its capacity as Lead Arranger, in consultation with the Borrower, to become a party to the Credit Agreement as a Lender (each, a New Lender) by acquiring an interest in the Aggregate Commitment, and Administrative Agent and the Borrower hereby consent to such reallocation and each New Lenders acquisition of an interest in the Aggregate Commitment. On the date this Amendment becomes effective and after giving effect to such reallocation of the Aggregate Commitment, the Commitment of each Lender shall be as set forth on Schedule 2.01 of this Amendment. With respect to such reallocation, each New Lender shall be deemed to have acquired the Commitment allocated to it from each of the other Lenders pursuant to the terms of the Assignment and Assumption attached as Exhibit A to the Credit Agreement as if such New Lender and the other Lenders had executed an Assignment and Assumption with respect to such allocation. The Borrower and Administrative Agent hereby consent to such assignment to the New Lenders.
SECTION 3. Conditions. The amendments to the Credit Agreement contained in Section 1 of this Amendment, including the redetermination of the Borrowing Base as set forth in Section 1.2 of this Amendment and the assignments and reallocations contained in Section 2 of this Amendment shall be effective upon the satisfaction of each of the conditions set forth in this Section 3.
3.1 Execution and Delivery. Each Credit Party, each Lender and the Administrative Agent shall have executed and delivered this Amendment.
3.2 Consummation of Asset Purchase. EXCO Appalachia shall have consummated the Appalachia Purchase in accordance with the Purchase Agreement without waiver or amendment of any material term thereof not otherwise consented to by the Administrative Agent.
3.3 North Coast Merger. The Borrower shall have delivered to the Administrative Agent evidence reasonably satisfactory to the Administrative Agent that promptly following the consummation of the Appalachia Purchase, and in any event within two (2) Business Days
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thereafter, EXCO Appalachia will merge with and into North Coast and North Coast, as the surviving entity of such merger, will comply with the requirements of Sections 6.09 and 6.10 of the Credit Agreement.
3.4 No Default. No Default shall have occurred and be continuing.
3.5 Fees. The Borrower shall have paid to the Administrative Agent for the benefit of the Lenders, an upfront fee in an amount equal to (i) 0.20% on the actual allocation of the increase in the Aggregate Commitment allocated to any Lender, including any New Lender, that committed to less than $40,000,000 of such increase in the Aggregate Commitment, plus (ii) 0.35% on the actual allocation of the increase in the Aggregate Commitment allocated to any Lender, including any New Lender, that committed to $40,000,000 or more of such increase in the Aggregate Commitment, in each case with respect to each of the foregoing clauses (i) and (ii), respectively, to be shared pro rata among the Lenders based on their respective increases in the Commitment.
3.6 Other Documents. The Administrative Agent shall have received such other instruments and documents incidental and appropriate to the transaction provided for herein as the Administrative Agent or its special counsel may reasonably request, and all such documents shall be in form and substance satisfactory to the Administrative Agent.
SECTION 4. Representations and Warranties of Borrower. To induce the Lenders to enter into this Amendment, each Credit Party hereby represents and warrants to the Lenders as follows:
4.1 Reaffirmation of Representations and Warranties/Further Assurances. After giving effect to the amendments herein, each representation and warranty of such Credit Party contained in the Credit Agreement or in any other Loan Document is true and correct in all material respects on the date hereof (except to the extent such representations and warranties relate solely to an earlier date).
4.2 Corporate Authority; No Conflicts. The execution, delivery and performance by such Credit Party of this Amendment and all documents, instruments and agreements contemplated herein are within such Credit Partys corporate or other organizational powers, have been duly authorized by all necessary action, require no action by or in respect of, or filing with, any court or agency of government and do not violate or constitute a default under any provision of any applicable law or other agreements binding upon such Credit Party or result in the creation or imposition of any Lien upon any of the assets of such Credit Party except for Liens permitted under Section 7.02 of the Credit Agreement.
4.3 Enforceability. This Amendment constitutes the valid and binding obligation of such Credit Party enforceable in accordance with its terms, except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors rights generally, and (ii) the availability of equitable remedies may be limited by equitable principles of general application.
SECTION 5. Miscellaneous.
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5.1 Reaffirmation of Loan Documents and Liens. Any and all of the terms and provisions of the Credit Agreement and the Loan Documents shall, except as amended and modified hereby, remain in full force and effect. Each Credit Party hereby agrees that the amendments and modifications herein contained shall in no manner affect or impair the liabilities, duties and obligations of any Credit Party under the Credit Agreement and the other Loan Documents or the Liens securing the payment and performance thereof.
5.2 Parties in Interest. All of the terms and provisions of this Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.
5.3 Legal Expenses. Each Credit Party hereby agrees to pay all reasonable fees and expenses of special counsel to the Administrative Agent incurred by the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment and all related documents.
5.4 Counterparts. This Amendment may be executed in one or more counterparts and by different parties hereto in separate counterparts each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. However, this Amendment shall bind no party until each Credit Party, the Lenders (or at least the required percentage thereof), and the Administrative Agent have executed a counterpart. Delivery of photocopies of the signature pages to this Amendment by facsimile or electronic mail shall be effective as delivery of manually executed counterparts of this Amendment.
5.5 Complete Agreement. THIS AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
5.6 Headings. The headings, captions and arrangements used in this Amendment are, unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this Amendment, nor affect the meaning thereof.
[Signature Pages Follow]
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IN WITNESS WHEREOF, the parties have caused this First Amendment to Second Amended and Restated Credit Agreement to be duly executed as of the date first above written.
| BORROWER: | ||
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| EXCO RESOURCES, INC. | ||
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| By: | /s/ J. Douglas Ramsey | |
| Name: J. Douglas Ramsey, Ph.D. | ||
| Title: Vice President and Chief Financial Officer | ||
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| Address for Notices: | ||
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| EXCO Resources, Inc. | ||
| 12377 Merit Drive, Suite 1700 | ||
| Dallas, Texas 75251 | ||
| Facsimile No.  ###-###-#### | ||
| Attn: | Douglas H. Miller | |
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| Chief Executive Officer | |
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| and | ||
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| Attn: | J. Douglas Ramsey | |
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| Chief Financial Officer | |
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| GUARANTORS: | ||
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| NORTH COAST ENERGY, INC. | ||
| NORTH COAST ENERGY EASTERN, INC. | ||
| POWER GAS MARKETING & TRANSMISSION, INC. | ||
| EXCO SERVICES, INC. | ||
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| By: | /s/ J. Douglas Ramsey | |
| Name: J. Douglas Ramsey, Ph.D. | ||
| Title: | Vice President and Chief Financial Officer | |
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| for each of the Credit Parties listed above | |
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| JPMORGAN CHASE BANK, N.A., | ||
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| By: | /s/ Wm. Mark Cranmer | |
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| Name: | Wm. Mark Cranmer | |
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| Title: | Senior Vice President | |
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| UBS LOAN FINANCE LLC | ||
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| By: | /s/ David B. Julie | |
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| Name: | David B. Julie | |
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| Title: | Associate Director | |
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| Banking Products Services, US | |
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| By: | /s/ Iga H. Disa | |
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| Name: | Iga H. Disa | |
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| Title: | Associate Director Banking Products Services, US | |
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| TORONTO DOMINION (TEXAS) LLC | ||
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| By: | /s/ Ian Murray | |
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| Name: | Ian Murray | |
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| Title: | Authorized Signatory | |
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| CREDIT SUISSE, CAYMAN ISLANDS BRANCH | ||
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| By: | /s/ Vanessa Gomez | |
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| Name: | Vanessa Gomez | |
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| Title: | Director | |
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| By: | /s/ Morenikeji Ajayi | |
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| Name: | Morenikeji Ajayi | |
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| Title: | Associate | |
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| LEHMAN BROTHERS COMMERCIAL BANK | ||
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| By: | /s/ George Janes | |
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| Name: | George Janes | |
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| Title: | Chief Credit Officer | |
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| BNP PARIBAS | ||
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| By: | /s/ David Dodd | |
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| Name: | David Dodd | |
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| Title: | Managing Director | |
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| By: | /s/ Richard Hawthorne | |
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| Name: | Richard Hawthorne | |
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| Title: | Vice President | |
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| KEYBANK N.A. as a Lender | ||
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| By: | /s/ Keven D. Smith | |
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| Name: | Keven D. Smith | |
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| Title: | Senior Vice President | |
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| MORGAN STANLEY SENIOR FUNDING, INC. | ||
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| By: | /s/ Daniel Twenge | |
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| Name: | Daniel Twenge | |
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| Title: | Vice President | |
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| NATIXIS | ||
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| By: | /s/ Donovan C. Broussard | |
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| Name: | Donovan C. Broussard | |
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| Title: | Managing Director | |
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| By: | /s/ Liana Tchernysheva | |
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| Name: | Liana Tchernysheva | |
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| Title: | Director | |
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| ROYAL BANK OF CANADA | ||
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| By: | /s/ Don J. McKinnerney | |
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| Name: | Don J. McKinnerney | |
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| Title: | Authorized Signatory | |
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| THE ROYAL BANK OF SCOTLAND PLC | ||
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| By: | /s/ Mark Lumpkin, Jr | |
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| Name: | Mark Lumpkin, Jr | |
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| Title: | Vice President | |
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| SOCIETE GENERALE | ||
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| By: | /s/ Elena Robcine | |
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| Name: | Elena Robcine | |
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| Title: | Director | |
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| STERLING BANK | ||
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| By: | /s/ Jeff A. Forbis | |
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| Name: | Jeff A. Forbis | |
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| Title: | Sterling Bank | |
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| SUNTRUST BANK | ||
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| By: | /s/ James M. Warren | |
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| Name: | James M. Warren | |
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| Title: | Managing Director | |
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| UNION BANK OF CALIFORNIA, N.A. | ||
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| By: | /s/ Doug Gale | |
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| Name: | Doug Gale | |
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| Title: | Vice President | |
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| SCOTIABANC, INC. | ||
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| By: | /s/ R. Blackwood | |
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| Name: | R. Blackwood | |
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| Title: | Director | |
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| WACHOVIA BANK NATIONAL ASSOCIATION | ||
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| By: | /s/ Paul Pritchett | |
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| Name: | Paul Pritchett | |
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| Title: | Vice President | |
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| WELLS FARGO BANK, N.A. | ||
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| By: | /s/ Jason Hicks | |
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| Name: | Jason Hicks | |
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| Title: | Assistant Vice President | |
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| WESTLB AG, NEW YORK BRANCH | ||
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| By: | /s/ Dominick DAscoli | |
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| Name: | Dominick DAscoli | |
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| Title: | Director | |
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| By: | /s/ Martin C. Livingston | |
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| Name: | Martin C. Livingston | |
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| Title: | Exective Director | |
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| BMO CAPITAL MARKETS FINANCING, INC. | ||
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| By: | /s/ James V. Ducote | |
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| Name: | James V. Ducote | |
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| Title: | Director | |
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| BANK OF SCOTLAND PLC | ||
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| By: | /s/ Karen Welch | |
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| Name: | Karen Welch | |
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| Title: | Vice President | |
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| CITIBANK, N.A. | ||
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| By: | /s/ Ryan Watson | |
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| Name: | Ryan Watson | |
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| Title: | Vice President | |
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| ALLIED IRISH BANKS, P.L.C. as a Lender | ||
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| By: | /s/ Vaughn Buck | |
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| Name: | Vaughn Buck | |
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| Title: | Director | |
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| By: | /s/ Robert F. Moyle | |
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| Name: | Robert F. Moyle | |
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| Title: | Senior Vice President | |
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| DEUTSCHE BANK TRUST COMPANY AMERICAS | ||
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| By: | /s/ Erin Morrissey | |
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| Name: | Erin Morrissey | |
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| Title: | Vice President | |
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| By: | /s/ Susan LaFavre | |
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| Name: | Susan LaFavre | |
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| Title: | Director | |
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| CALYON NEW YORK BRANCH | ||
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| By: | /s/ Tom Byargeon | |
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| Name: | Tom Byargeon | |
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| Title: | Managing Director | |
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| By: | /s/ Sharada Manne | |
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| Name: | Sharada Manne | |
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| Title: | Vice President | |
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| U.S. BANK NATIONAL ASSOCIATION | ||
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| By: | /s/ Daria Mahoney | |
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| Name: | Daria Mahoney | |
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| Title: | Vice President | |
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| COMERICA BANK | ||
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| By: | /s/ Peter L. Sefzik | |
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| Name: | Peter L. Sefzik | |
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| Title: | Vice President | |
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| FORTIS CAPITAL CORP. as a Lender | ||
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| By: | /s/ Michele Jones | |
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| Name: | Michele Jones | |
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| Title: | Director | |
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| By: | /s/ Darrell Holley | |
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| Name: | Darrell Holley | |
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| Title: | Director | |
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| BANK OF AMERICA | ||
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| By: | /s/ Jeffrey H. Rathkamp | |
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| Name: | Jeffrey H. Rathkamp | |
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| Title: | Managing Director | |
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| SUMITOMO MITSUI BANKING CORPORATION | ||
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| By: | /s/ Masakaza Hasegawa | |
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| Name: | Masakaza Hasegawa | |
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| Title: | Joint General Manager | |
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| GOLDMAN SACHS CREDIT PARTNERS, L.P. | ||
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| By: | /s/ Jaime Weisfelner | |
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| Name: | Jaime Weisfelner | |
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| Title: | Authorized Signatory | |
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| By: | /s/ Stephen Scheer | |
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| Name: | Stephen Scheer | |
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| Title: | Authorized Signatory | |
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| MORGAN STANLEY BANK | ||
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| By: | /s/ Daniel Twenge | |
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| Name: | Daniel Twenge | |
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| Title: | Authorized Signatory | |
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| THE BANK OF NOVA SCOTIA | ||
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| By: | /s/ David Mills | |
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| Name: | David Mills | |
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| Title: | Director | |
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| COMPASS BANK | ||
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| By: | /s/ Dorothy Marchand | |
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| Name: | Dorothy Marchand | |
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| Title: | Senior Vice President | |