Line of Credit Agreement (2001)Full Document 

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                            LINE OF CREDIT AGREEMENT


                          Dated as of January 26 , 1999


                                  By And Among


                               HUGHES SUPPLY, INC.

                                       AND

              SUNTRUST BANK, CENTRAL FLORIDA, NATIONAL ASSOCIATION,
                    individually and as Administrative Agent,
                           FIRST UNION NATIONAL BANK,
                    individually and as Documentation Agent,
                               NATIONSBANK, N.A.,
                      individually and as Syndication Agent
                     SOUTHTRUST BANK, NATIONAL ASSOCIATION,
                          individually and as Co-Agent,
                              ABN AMRO BANK, N.V.,
                                 PNC BANK, N.A.,
                              WACHOVIA BANK, N.A.,
                              THE FIFTH THIRD BANK,
                           HIBERNIA NATIONAL BANK and
              other financial institutions becoming a party hereto


================================================================================

                                 King & Spalding
                           191 Peachtree Street, N.E.
                             Atlanta, Georgia 30303
                           Attn: Carolyn Zander Alford
                                 (404) 572-4600




                                TABLE OF CONTENTS

                                                                            PAGE

DEFINITIONS; CONSTRUCTION.....................................................1
     Definitions..............................................................2
     Accounting Terms and Determination......................................18
     Other Definitional Terms................................................18
     Exhibits and Schedules..................................................18
LINE OF CREDIT COMMITMENT....................................................18
     Line of Credit Commitment; Use of Proceeds..............................18
     Line of Credit Notes; Repayment of Principal............................19
     Voluntary Reduction of Line of Credit Commitments.......................19
     Extension of the Line of Credit Termination Date........................20
GENERAL LOAN TERMS...........................................................20
     Funding Notices.........................................................20
     Disbursement of Funds...................................................22
     Interest................................................................23
     Interest Periods........................................................25
     Fees....................................................................26
     Voluntary Prepayments of Borrowings.....................................26
     Payments, etc...........................................................27
     Interest Rate Not Ascertainable, etc....................................28
     Illegality..............................................................29
     Increased Costs.........................................................29
     Lending Offices.........................................................31
     Funding Losses..........................................................31
     Assumptions Concerning Funding of Eurodollar Advances...................31
     Apportionment of Payments...............................................32
     Sharing of Payments, Etc................................................32
     Capital Adequacy........................................................32
     Benefits to Guarantors..................................................33
     Limitation on Certain Payment Obligations...............................33
CONDITIONS TO BORROWINGS.....................................................34
     Conditions Precedent to Initial Line of Credit Loans....................34
     Conditions to All Line of Credit Loans..................................36
REPRESENTATIONS AND WARRANTIES...............................................37
     Organization and Qualification..........................................37
     Corporate Authority.....................................................38
     Financial Statements....................................................38
     Tax Returns.............................................................38
     Actions Pending.........................................................38
     Representations; No Defaults............................................38
     Title to Properties.....................................................39


                                       -ii-




     Enforceability of Agreement.............................................39
     Consent.................................................................39
     Use of Proceeds; Federal Reserve Regulations............................39
     ERISA...................................................................39
     Subsidiaries............................................................40
     Outstanding Indebtedness................................................40
     Conflicting Agreements..................................................40
     Pollution and Other Regulations.........................................41
     Possession of Franchises, Licenses, Etc.................................42
     Patents, Etc............................................................42
     Governmental Consent....................................................42
     Disclosure..............................................................43
     Insurance Coverage......................................................43
     Labor Matters...........................................................43
     Intercompany Loans; Dividends...........................................43
     Burdensome Restrictions.................................................44
     Investment Company Act, Etc.............................................44
     Notice of Non-Compliance with Laws......................................44
     Year 2000 Issues........................................................44
AFFIRMATIVE COVENANTS........................................................44
     Corporate Existence, Etc................................................44
     Compliance with Laws, Etc...............................................45
     Payment of Taxes and Claims, Etc........................................45
     Keeping of Books........................................................45
     Visitation, Inspection, Etc.............................................45
     Insurance; Maintenance of Properties....................................45
     Reporting Covenants.....................................................46
     Financial Covenants.....................................................49
     Notices Under Certain Other Indebtedness................................50
     Additional Guarantors...................................................50
     Financial Statements; Fiscal Year.......................................50
     Ownership of Guarantors.................................................50
NEGATIVE COVENANTS...........................................................51
     Indebtedness............................................................51
     Liens...................................................................51
     Mergers, Acquisitions, Sales, Etc.......................................52
     Investments, Loans, Etc.................................................53
     Sale and Leaseback Transactions.........................................54
     Transactions with Affiliates............................................54
     Optional Prepayments....................................................54
     Changes in Business.....................................................54
     ERISA...................................................................54
     Additional Negative Pledges.............................................55
     Limitation on Payment Restrictions Affecting Consolidated Companies.....55


                                      -iii-




     Actions Under Certain Documents.........................................55
EVENTS OF DEFAULT............................................................55
     Payments................................................................55
     Covenants Without Notice................................................56
     Other Covenants.........................................................56
     Representations.........................................................56
     Non-Payments of Other Indebtedness......................................56
     Defaults Under Other Agreements.........................................56
     Bankruptcy..............................................................56
     ERISA...................................................................57
     Money Judgment..........................................................57
     Ownership of Credit Parties and Pledged Entities........................58
     Change in Control of Borrower...........................................58
     Default Under Other Credit Documents....................................58
     Attachments.............................................................58
THE AGENT....................................................................59
     Appointment of Administrative Agent.....................................59
     Nature of Duties of Administrative Agent................................59
     Lack of Reliance on the Administrative Agent............................59
     Certain Rights of the Administrative Agent..............................60
     Reliance by Administrative Agent........................................60
     Indemnification of Administrative Agent.................................60
     The Administrative Agent in Its Individual Capacity.....................61
     Holders of Line of Credit Notes.........................................61
     Successor Administrative Agent..........................................61
     Documentation Agent.....................................................62
     Syndication Agent.......................................................62
MISCELLANEOUS................................................................62
     Notices.................................................................62
     Amendments, Etc.........................................................63
     No Waiver; Remedies Cumulative..........................................63
     Payment of Expenses, Etc................................................63
     Right of Setoff.........................................................65
     Benefit of Agreement....................................................65
     Governing Law; Submission to Jurisdiction...............................67
     Independent Nature of Lenders' Rights...................................68
     Counterparts............................................................68
     Effectiveness; Survival.................................................69
     Severability............................................................69
     Independence of Covenants...............................................69
     Change in Accounting Principles, Fiscal Year or Tax Laws................69
     Headings Descriptive; Entire Agreement..................................70
     Time is of the Essence..................................................70
     Usury...................................................................70


                                      -iv-




      Construction...........................................................70
      Waiver of Effect of Corporate Seal.....................................70
      IN.....................................................................71


                                      -v-




                                    SCHEDULES

Schedule 5.01     Organization and Ownership of Subsidiaries
Schedule 5.11     Employee Benefit Matters
Schedule 5.14     Conflicting Agreements
Schedule 5.15(a)  Environmental Compliance
Schedule 5.22     Intercompany Loans
Schedule 7.01(b)  Existing Indebtedness
Schedule 7.02     Existing Liens


                                    EXHIBITS

Exhibit A     Form of Syndicate Note
Exhibit B     Form of Competitive Bid Note
Exhibit C     Form of Closing Certificate
Exhibit D     Form of Assignment and Acceptance


                                      -vi-





                            LINE OF CREDIT AGREEMENT


         THIS  LINE OF  CREDIT  AGREEMENT,  dated as of  January  26,  1999 (the
"Agreement")  by  and  among  HUGHES  SUPPLY,  INC.   ("Borrower"),   a  Florida
corporation,  SUNTRUST BANK, CENTRAL FLORIDA,  NATIONAL ASSOCIATION,  ("SunTrust
Bank,  Central  Florida") a national banking  association,  FIRST UNION NATIONAL
BANK, a national  banking  association,  NATIONSBANK,  N.A., a national  banking
association,   SOUTHTRUST  BANK,  NATIONAL   ASSOCIATION,   a  national  banking
association, ABN AMRO BANK, N.V., a banking corporation organized under the laws
of the Netherlands,  PNC BANK, N.A., a national  banking  association,  WACHOVIA
BANK,  N.A., a national  banking  association,  THE FIFTH THIRD BANK, a national
banking association,  HIBERNIA NATIONAL BANK, a national banking association and
such other  financial  institutions  becoming a party  hereto from time to time,
(individually,  a "Lender" and  collectively,  the  "Lenders"),  SUNTRUST  BANK,
CENTRAL FLORIDA,  NATIONAL  ASSOCIATION as administrative  agent for the Lenders
(in such capacity,  the "Administrative  Agent"),  FIRST UNION NATIONAL BANK, as
documentation  agent  for the  Lenders  (in such  capacity,  the  "Documentation
Agent"),  NATIONSBANK,  N.A.,  as  syndication  agent for the  Lenders  (in such
capacity,  the "Syndication  Agent"), and SOUTHTRUST BANK, NATIONAL ASSOCIATION,
as Co-agent for the Lenders (in such capacity, the "Co-Agent").

                              W I T N E S S E T H :

         WHEREAS,   Borrower  has  requested   that  the  Lenders   establish  a
$75,000,000  line of credit  facility in favor of  Borrower,  and subject to the
terms and conditions contained herein, the Lenders are willing to establish such
line of credit facility in favor of Borrower subject to the terms and conditions
set forth below;

         NOW,  THEREFORE,  in consideration of the mutual covenants made herein,
and for other good and valuable  consideration,  the receipt and  sufficiency of
which are hereby  acknowledged,  the  parties  hereto,  intending  to be legally
bound, agree as follows:

                                    ARTICLE 1

                            DEFINITIONS; CONSTRUCTION

         Section  1.1.  Definitions.  As  used  in  this  Agreement,  and in any
instrument,  certificate,  document or report  delivered  pursuant  hereto,  the
following terms shall have the following  meanings (to be equally  applicable to
both the singular and plural forms of the term defined):





         "Administrative  Agent" shall mean SunTrust Bank,  Central  Florida,  a
national banking association,  as administrative agent for the Lenders hereunder
and under the other Credit Documents, and each successor administrative agent.

         "Adjusted  LIBO Rate" shall mean with respect to each  Interest  Period
for a  Eurodollar  Advance,  the rate  obtained by  dividing  (A) LIBOR for such
Interest  Period by (B) a  percentage  equal to 1 minus the then stated  maximum
rate  (stated as a decimal) of all  reserves  requirements  (including,  without
limitation, any marginal,  emergency,  supplemental,  special or other reserves)
applicable  to any  member  bank of the  Federal  Reserve  System in  respect of
Eurodollar  liabilities  as defined in  Regulation  D (or against any  successor
category of liabilities as defined in Regulation  D). The  Administrative  Agent
shall promptly notify the Borrower of any such reserve  requirements that become
applicable.

         "Advance"  shall  mean any  principal  amount  advanced  and  remaining
outstanding  at any time under the Line of Credit Loans,  which Advance shall be
made  or  outstanding  as a  Base  Rate  Advance,  Competitive  Bid  Advance  or
Eurodollar Advance, as the case may be.

         "Affiliate" of any Person means any other Person directly or indirectly
controlling,  controlled by, or under common control with, such Person,  whether
through the  ownership  of voting  securities,  by contract  or  otherwise.  For
purposes of this definition, "control" (including with correlative meanings, the
terms  "controlling",  "controlled  by",  and "under  common  control  with") as
applied to any Person,  means the  possession,  directly or  indirectly,  of the
power to direct or cause the  direction of the  management  and policies of that
Person.

         "Agents"  shall  mean,  collectively,  the  Administrative  Agent,  the
Documentation Agent, the Syndication Agent and the Co-Agent.

         "Agreement"  shall  mean  this  Line of  Credit  Agreement,  either  as
originally  executed  or as it may be from time to time  supplemented,  amended,
restated, renewed or extended and in effect.

         "Applicable   Facility  Fee  Percentage"   shall  mean  the  percentage
designated below based on Borrower's  Leverage Ratio for the most recently ended
fiscal quarter for which financial  statements  have been delivered  pursuant to
Section 6.07(a) or (b):

            Leverage Ratio                Applicable Facility Fee
                                       Percentage for Line of Credit
                                              Commitments:
        --------------------------------------------------------------
           Less than 0.4:1.0                     0.125%
        --------------------------------------------------------------
         Greater than or equal to
        0.4:1.0 but less than 0.45:1.0           0.15%
        --------------------------------------------------------------
         Greater than or equal to
        0.45:1.0 but less than 0.5:1.0           0.175%
        --------------------------------------------------------------
         Greater than or equal to

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